by Simon Black
German newspaper Der Spiegel reported yesterday that the Bavarian Banking Association has recommended that its member banks start stockpiling PHYSICAL CASH.
Europe, of course, has been battling with negative interest rates for quite some time.
What this means is that commercial banks are being charged interest for holding wholesale deposits at the European Central Bank.
In order to generate artificial economic growth, the ECB wants banks to make as many loans as possible, no matter how stupid or idiotic.
They believe that economic growth is simply a function of loans. The more money that’s loaned out, the more the economy will grow.
This is the sort of theory that works really well in an economic textbook. But it doesn’t work so well in a history textbook.
The Euro as a currency, and the Eurozone (economic) and Shengen-zone (free travel) are all dying. It was inevitable from the start that they would all fail, but with all three on life-support at once, the outlook for residents of Europe is very bleak indeed.
First, the currency -- The Euro is over-issued at a ration of roughly 12:1. That means that evey Euro currently in circulation is really only worth about 8 cents (percent of it’s face value). Also, that 8 cents is further devalued by all the bad debt which has been piled up as speculators have chased the bubbles in realestate and other essential businesses throughout the last decade, in which the Euro was over-issued. This further reduces the real value of a Euro to about 1.5~3 cents, when bad debt is taken into account. Given these circumstances, what nation would not rather re-issue its own national currency, rather than suffer a 97% loss of it’s wealth and economic power?
Second, the Economic Union, a.k.a. the Eurozone -- Europe has never been, nor shall ever operate as a single economy. Each nation and each culture has, at the foundational level, different priorities and different perceptions of value. These foundational differences don’t necessarily make one nation’s culture “better” or “worse” than another, but they are exclusive of one another, and cannot be forced into a single mold. The attempt to achieve such a ‘single mold’ European comunity over the past 16 years has done nothing but inflame the very cultural and economic animosities which the Eurozone was intended to ‘eliminate’ in the first place. Witness the rise of xenophobic national socialist parties in Greece, Germany, England, France, Norway, and a number of other EU countries.
Last, but certainly not least, is the Shengen-zone -- the ‘Free Travel’ zone wherein, once a person has been admitted into one European country, he may travel wherever in Europe he wishes without further controls -- no national borders, no Passport inspections, no visas to obtain or renew. Even absent the muslim invasion of Europe, the Shengen Zone was doomed, because as the economic union unravels and unemployment rises at different rates in different European countries, there will be ‘economic refugees’ traveling from countries [within the union] with less opportunity, into those with greater economic prospects. Such “labor migrations” have ***NEVER*** been well received by the native population of a nation receiving such an influx of migrant labor.
Now, adding to all of these troubles, is the tsunami of muslim immigrants from the mid-east and north africa. This additional stress has already accelerated the failure of all three aspects of the European problem, stressing each to it’s breaking point; and it is thus unlikely that either the Shengen Zone nor the Economic Union will survive through the end of the year.
The implications of this imminent break-up of the EU are beyong simple description. The economies of every European nation will be thrown into an instant shambles the moment the first country departs the Economic Union and restores a national currency -- i.e. the Irish Pound, French Franc, Greek Lira, or the German Deutschemark. And yet, such a defection from the Euro back to a national currency is a foregone conclusion -- it is only a question of who will go first, and when?
The closing of borders by one or more nations within the zone would constitute a breach of treaty -- the sanctions for which could actually *cause* a nation to abandon the Euro in favor of a restored national currency. The maintenance of open borders, on the other hand, is likely to cause a revolt by the citizenry, as competition between natives and immigrants continues to become more and more aggravated by deteriorating economic conditions, as well as the violent behavior of muslim immigrants wherever they are found in large numbers.
In short, there is no likely path to preservation of the EU. On the contrary, the causes of it’s final demise are so numerous and so pressing, that each day which the EU preserves its existence, is a miracle in itself.
And anyone who argues that the United States is any different, is wildly mistaken. What common cause has a typical California resident with one from the Southeast? or the Northeast for that matter? And why should an illegal immigrant who manages to cross a border into Texas, for example, enjoy the utter absence of restrictions in then traveling to California, or North Carolina, or any other state, and there making themselves as comfortable as a tick on a dog -- living on “public assistance” and enjoying every other social benefit created and intended for our own citizens?
Surely, a point will come wherein the several States will recognize the plain truth -- that, as with the EU, the US Federal Government has no intention of protecting their separate and particular interests, nor preserving their sovereignty. Much to the contrary, the Federal Government would be most pleased to see the final undermining of the several States, leaving the Federal Institution in singular charge of all the territory currently under it’s (claimed) jurisdiction.
WE HAVE BEEN WARNED
I was stationed in Geramny when the Mark was phased out and the Euro took over. Time and time again we heard that the prices were frozen…and the exchange for our dollars would remain steady. It took about 36 hours before we saw the noticable jump in prices and the drop in the exchange rate. We all knew then that the Euro would cause damage to the smaller nations that agreed to use it.
The torpedo which sinks the ship, is often the one no one saw coming…
Is it any different with the $Euro? Every one saw it arrive, but only a few saw it’s consequences coming.
And the $USD$ will be no different. Because the FED is doing exactly what the ECB is doing, and the several States are doing exactly what the EU member-States are doing… etc., etc. on down the line.
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It is not “different this time”.
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There is no “decoupling” between Europe and the US.
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These and many other lies are about to be revealed for exactly what they are -- instruments of purposeful mass devastation; employed by the elitist international banksters, against the population of the entire developed world.
WE HAVE BEEN WARNED
So are they “stockpiling?” or simply removing ‘physical’ cash from the equation?
Also, in the minds of these sick and twisted men and the fallen spirits within them, depopulation is humane.
A cashless society will be very devastating. We must put our faith and trust in Yahuah!
Old Money vs New money ( Pa- Pal )