The EU Crisis is an Elaborately Scripted Farce

Greece Bonds Collapse, Interest Rates Surge to Near 40% as ECB Announces They Will Allow 'Temporary Default'

July 19, 2011

Alexander Higgins Blog - European bankers have announced they will allow a temporary default on Greece sovereign debt which in turn caused Greek bonds to crash and send interest rates for the nation skyrocketing to a nearly 40% yield on their 2 year bond.

Even though Greek Politicians have allowed themselves to be blackmailed into forcing harsh austerity measures on the people of Greece to secure a banker bailout loan to pay off the interest on their original bailout loan, the bankers continue their oppression of the Greek government.

Now, the Euro-banker scum have announced a plan that will allow Greek to temporarily default on their sovereign debt as the corporate media continues with their chants to “Give Greece What They Deserve”.

Of course, the announcement by the bankers have caused Greek bonds to collapse, sending the interest rates that Greece must pay to burrow money from the bankers to almost a 40% yield on a 2 year bond.

Business Insider reports:

Holy Cow, Greece!

While most things are rallying today, there is one huge gigantic red mark.

Greek 2-year yields are just exploding, and now nearing 40%.

Greece Bonds Collapse. Interest Rates Soar With Yeild On 2 Year Greek Bond Nears 40%

Source: Business Insider

Of course that means record profits for the bankers who have forced Greece into taking that bailout loans. Now the markets run amuck with the normal fear mongering of the threat that an eminent complete freeze in liquidity causing a worldwide bank collapse.

That make little sense considering the Euro-bank borrowings has just reached a 2011 high, nearing the highest levels since the 2008 financial collapse.

That is of course, unless the fear is meant to inspire panic among the masses and force the government to open taxpayer wallets to hand over even more money to the banker establishment.

A Phony EU Crisis

Europe's leaders have grasped the nettle. Faced with a spiraling bond crisis in Italy and Spain and the greatest threat to the EU project for 50 years, they have ripped up their bail-out strategy and taken a large stride towards a "liability union." – UK Telegraph

The Daily Bell
July 22, 2011

Dominant Social Theme: Oh, it is the end of the world. The EU is dead. Oh, it is not the end. Long live the EU and the great men and women who saved it ... History is being made ... etc. ... etc. ...

Free-Market Analysis: We have watched the unraveling of Europe for over a year now and can say with some shock and dismay, as the final act grows near, that what we have been treated to is probably nothing more than an elaborately scripted farce. Or call it a dominant social theme (the EU is in trouble and needs rescue by the great statesmen of Brussels).

Now a deal has been struck to “save” Greece (though it is the banks that are being saved yet again, not Greece). The Germans won’t like it as Merkel seems now to have committed them to guarantee, at least informally, hundreds of billions of euros in PIGS assets. But apparently whether the “little people” like something or not doesn’t matter now in this “new” world.

The only danger is over-reach. The crisis, long expected, may still spin out of control or prove insoluble. But there is no doubt the Eurocrats expected this crisis and planned for it. The idea was to use its chaos to create a closer European federation and that is just what they're trying to do. Out of chaos, order ...

The elites that stand behind the EU are trying to build a one-world order, and they will stop at nothing to get it. The same thing is going on in the US with the debt crisis. An orchestrated agenda. The Americans will eventually get European-style austerity. They simply don't understand the ramifications yet.

These economic crises cannot be pure happenstance. We've suggested they can spin out of control, and perhaps they will; but they are all manmade events, the direct outcome of economic constructs and policies of enormous wealth and control. Somebody set up the 100 central banks around the world that report directly to the Bank for International Settlements in Switzerland. These are quasi-private entities, many of them. Are we supposed to believe that no one takes a profit on them? That there is no way they compensate their creators?

The money and power is unimaginable. The BIS controls the central banks that in turn control the big banks around the world. The stock exchanges with their endless mergers are controlled as well; and the bond markets, it seems.

If the elites control the banking industry – and they do – then they must also control currency markets – at least to some extent. And we are supposed to believe that Greece, little Greece, caused such havoc with this financial system that Merkel and Sarkozy had to meet to save it in the nick of time?

Increasingly, we don't believe it. The entire amount of the Greek default is in the low hundreds of billions. That's pocket change for these trillionaire, globalist banking families and their corporate, religious and military enablers. It's walking-around money. They can spend more than that in a day, an hour even.

The whole thing is a set up. It must be. A shadow play. A crisis created to build further global governance. The only question is whether they can control the resultant fallout in the long term, for the damage far exceeds Greece now.

The Internet has certainly made that more questionable, for it has informed Europeans of what's really going on and helped organize them. Still, the EU grinds on. Dominant social themes of the elite are rarely if ever cancelled. They tend to continue until they meet immovable resistance, either from the marketplace or people.

Constitutions mean nothing. Promises are made to be broken. Treaties are talk for children, merely incremental markers trailing in the wake of global governance. By their actions ye shall know them. As with sharks, their momentum must be never stilled. Here's more from the Telegraph article:

The three rescued countries of Greece, Ireland and Portugal have in turn been offered a lifeline out of crippling debt-deflation. The tetchy negotiations dragged on for hours, with an irascible Finland at one point demanding that Greece offer the Parthenon, the Acropolis and its islands as collateral for the second €110bn (£97bn) rescue package. France and its allies abandoned their long struggle to prevent a Greek default, opening the way for the first sovereign insolvency in Western Europe since the Second World War. Objections from the European Central Bank were swept aside. Germany has obtained its fig leaf concession: burden-sharing for bankers.

As a quid pro quo, Germany has dropped its vehement opposition to debt sharing and crossed the line in the sand towards fiscal federalism. It has agreed to turn the eurozone's €440bn bail-out fund (EFSF) into what amounts to a European Monetary Fund, and arguably into an EU Treasury in embryo ... Global markets surged as the details of the EU statement leaked. Credit default swaps measuring bond risk on Ireland and Portugal saw the biggest one-day fall on record. Commission chief Jose Manuel Barroso said politicians and markets had finally "come together" for the first time since the crisis began.

Chancellor Angela Merkel said the goal was to "go to the root of the problems", but she may not find it easy to secure political assent for such sweeping concessions from her own parliament. The accord is a spectacular volte-face. Her mantra until now has always been that "collectivisation of risks" would be a grave error ... EU officials hope that a debt rollover plan for Greece can be limited to a short technical default. The ECB has backed down on its threat to reject Greek bonds as collateral. The formula will not be extended to Portugal and Ireland. It is understood that rating agencies will hold fire for the sake of global stability.

How neat is this? Like watching a play where all the problems are resolved in the third act. We even learn that the markets rallied in relief (at least to begin with) after the deal was announced! Yes, the EU has moved one step further (a big one) toward federal consolidation. The question is only whether the Germans, in aggregate, will resist, and what will be the results if they do. The Zero Hedge website claims today that this new deal places Germany in the position of underwriting the whole of the failing PIGS universe. The Germans may wake up in open revolt.

It doesn't seem bothersome, anymore, than Greek unrest. The shadow play continues. The ECB was immoveable in its rigor up until the last minute. But somehow the ECB backed down. The rating agencies that were so horrible have suddenly retreated. Everyone has "compromised." Problems have magically evaporated. Frau Merkel had threatened not to attend the meeting, but somehow in a single evening she was able to come to yet another "historic" breakthrough with Nicolas Sarkozy.

Perhaps the Eurocrats are merely desperate. Or perhaps they are following a script. We’ve seen it before. US Congressional Democrats sacrificed their careers to pass the leveling health care Act. Now Merkel is sacrificing her career to prop up the EU. Maybe she has been promised something.

Will the Germans riot in the streets? There is already a German Tea Party movement. How about Greece and Spain? Summer is not over yet. And yet … perhaps not. Perhaps, somehow, the elites can impose a federation on nation-states that have been independent for 2,000 years or longer. We don’t see how, (the EU with its debts seems unworkable) but one thing we’re convinced of now is that the elites are arrogant enough to try. The whole mechanism reeks of arrogance.

There is no end to their mischief and scheming. We've been privileged to watch how history operates for the past several years and we've paid close attention. We've come to the conclusion, as Henry Ford once said, that history is bunk. It's directed. This EU "grand compromise" has been in the works for months, for years – perhaps for decades.

What a farce! It began with the mysterious leaked argument between Sarkozy and Merkel – like the first shot of a war. The EU then was said to be on the edge of a breakup. Sarkozy had threatened to withdraw France. The union teetered – and the crisis was on! And on ... and on ... and on ...

Endless meetings, constant market movements, the mainstream media bewailing every moment. The EU is on the brink. The euro is on the brink. The Greeks are rioting (that was real); the Spanish are protesting (that was real, too). But it was just an act. It's all too neat, too well orchestrated.

And now we are starting to see the liniments of what is REALLY planned.

"The communiqué called for a "Marshall Plan" to bring the Greek economy back to life. "To be credible, the EFSF needs to be proportional to the scale of contagion: we think €2 trillion is needed," one top Eurocrat is quoted as saying.

The “transfer” that the Germans were assured would never happen is now starting to take place. Others will pay, too. But in Germany there is the constitutional question, as well. We are told German judges are to evaluate the legality. Yet what judge on earth would pull down the union at this point? If the German people want to stop what’s going on, they will have to do so themselves, non-violently if possible in the streets. Of course that hasn’t yet helped the Greeks.

Step by step, promotions are implemented and international structures are built. The politicians and generals in the modern era are literally actors on the stage. Some stand athwart history and others position themselves "progressively." Miraculously, accommodations are reached in the nick of the time. Alternatively, war is declared. The narrative is provided. History is "written."

Even in war, the elites apparently control both sides of the conflict. The goals are achieved via the Hegelian Dialectic that allows the powers-that-be to push the larger social conversation in whatever direction they choose. Of course, that's always towards a greater global union these days.

Conclusion: Thank goodness the extraordinary Brussels bureaucrats have once more performed a miracle, salvaging the EU yet again, at least for now. Was there ever any doubt?