All NATO Countries Going Bankrupt

There is a lot of fear and chaos enveloping Europe even as war leaders there celebrate success in scuttling Libya’s entire economy.  Meddling in Afghanistan, Iraq and Iran, NATO has charged across the planet while Europe’s internal financial system teeters and collapses like a house of cards.  This is utterly insane and even obvious, yet the warmongering of NATO continues virtually unhinged and unabated.

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One of the main problems plaguing the EU is its nature as a confederation.  Anyone reading history can see that all confederations, in the long run, fail for the same reason: they are too disconnected from each other to operate as an empire.  The EU empire has skirted this issue by handing over its military existence to NATO which means, 60%+ of the money, material and  personnel will be handed over courtesy of the US.

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The US has been the Praetorian Guard of all of Europe.  Not because Americans think this is a good idea.  But because Europe is the staging ground for US/Israel aggression against all Muslims who are targeted, one after the other, for being controlled or ruled or wrecked by this EU/US/Israeli configuration.

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Germany has virtually no military left and no desire for one.  Even so, the rest of Europe is demanding, Germany fix all messes.  Generally speaking, an empire can only do this if it has the military arms to enforce rules.  The US, as enforcer, is lax or non-existant  in this regard.  So, Germany simply sat on its behind, waiting for Europe to beg them to lead:  Angela Merkel Nears a Remaking of Euro Zone – NYTimes.com

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To American officials, Mrs. Merkel, 57, seems at times shockingly aloof about market turmoil. But as European leaders prepare for crucial meetings this week in Brussels, what may have seemed like timid or even bumbling leadership is looking more like a consistent strategy of brinkmanship aimed at remaking the euro zone in Germany’s likeness.

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At critical junctures throughout the crisis, Mrs. Merkel has resisted appeals to appease the financial markets by lowering borrowing costs. Instead, she has wielded the pain of soaring interest rates as a cudgel to extract painful changes — and demand leadership changes — in countries like Greece and Italy that have proven resistant to those changes in the past.

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If Europe doesn’t want Germany to lead, they can take care of these messes, themselves.  But they can’t due to lack of creditor power.  Like toddlers screaming nonstop until mommy gives up, the countries facing economic ruin thought they could spook Germany into acting rashly.

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But Merkel was warned by her own voters, not to give in.  Germany is worried about global currency values.  Despite the howling headlines worldwide, the euro isn’t in  trouble because it is WEAK.  It is in trouble because it is STRONG!

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For the last three years, the euro has shot upwards against the yuan, yen and the dollar.  In the floating fiat currency fiasco, the game plan is to have the WEAKEST, not strongest, currency.  Many news stories in the UK and US are the opposite, since both countries have given up and import far more than they export, they want to be ‘strong’ so they can import more.

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But Germany, Japan and China are all EXPORT powers so they want weaker currencies vis a vis the dollar.  Germany couldn’t make the euro weaker because many fellow EU countries loved the strong euro.  It meant they could import more goodies and travel all over the world, on the cheap.  Footloose and happy, they spent euros all over the planet earth while Germany fumed.

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Here is what Merkel has to worry about:  Germany: Angry Manroland workers protest against job losses

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According to IG Metall, a November 15 meeting of the company supervisory board, on which the union sits, discussed a report on the “strategic reorganisation” of Manroland. The union then agreed to a confidentiality pledge. Clearly, the “strategic reorganisation” was to be tied down behind the scenes and the workforce presented with a fait accompli.

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While many workers at the protest rally were outraged by management’s surprise attack in the form of the bankruptcy proceedings, it is now clear that this approach was worked out in collaboration with IG Metall. The company wanted to keep the workforce calm and prevent any struggle in defence of jobs because its strategy is based on finding new buyers for the individual plants.

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One of the oddest parts of the EU is how Britain is part of it while not part of the currency system.  Since Britain plays its own floating fiat currency games, this leaves Germany bogged down with the problems of fellow EU currency members while Britain gets to skate off, on their own.  S&P has no choice: Euroland risks bankruptcy on current policies – Telegraph Blogs

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“Policymakers appear to have acted only in response to mounting market pressures, rather than pro-actively leading market expectations in a way that might have better supported and strengthened investor confidence. We take the view that the defensive and piecemeal nature of this response has helped expand the crisis of confidence in the eurozone.”

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As S&P states, a credit crunch is taking hold, partly because of the EU’s pro-cyclical demands for higher capital ratios. Euroland’s incoherent mix of policies are pushing the eurozone into recession and therefore into deeper debt stress.

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“As the European economy slows, we believe that a reform process based on a pillar of fiscal austerity alone risks becoming self-defeating, eroding the revenue side of national budgets.”

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If all NATO countries end up simultaneously playing the ‘cut services/cut spending/cut pay’ programs, we get a global depression.  A race to zero.  What infuriates me is how the US is NOT going to zero in military spending.  We carry all of Europe and now, almost all of Asia.  The military obligations are expanding even as all our ‘allies’ cut down on their own military spending!

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Germany sees this and thinks, thank god, we aren’t the fourth Reich!  Global spending on war is going up in Muslim countries, China and Russia, points where NATO and the US are agitating while in Europe, everything is being pulled back.  This will rush forwards the collapse of the US as a super-power protecting the loose, nonfunctional EU confederation.

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…the core problem, that the eurozone’s banking nexus is €23 trillion, or three times sovereign debt. This has become a contingent liability of the governments themselves, especially the AAA core.

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As I pointed out in the past, the banking disasters were all removed from the banks and loaded onto nations.  We saw this in Iceland.  We saw this happen to Ireland.  It will eventually destroy Britain.  It is a far more serious problem than mere bank collapses.  The bankers were saved while the masses in many countries have been left out to starve to death.

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The AAA rating of ALL NATO countries including the US are collapsing.  This is typical of any system which has been at war too long.  Bankruptcies and wars run hand in glove.  Instead of pointing out how our endless wars are causing these catastrophes to engulf our economies leads people into imaging, we can save ourselves by fixing this bank problem or that spending problem.

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But the major engine of wild spending is military.  The military can spend to infinity.  There are endless reasons to to go war.  When spending is infinite then diplomacy collapses.  Instead of desperately trying to avoid wars, countries with too much credit will waste it on endless and often very foolish wars.  The more credit available=the more wars will continue to rage.

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And then there is Japan:  AFP: Fukushima radioactive water ‘leaked into Pacific’

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Tokyo Electric Power Co. (TEPCO) said it believes 150 litres (40 US gallons) of waste water including highly harmful strontium, linked with bone cancers, has spread to the open ocean.

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The announcement came a day after TEPCO said it found 45 tonnes of waste water pooled around the leaky water-treatment system at the Fukushima Daiichi nuclear plant.

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TEPCO said Monday it believed about 300 litres of waste water have escaped and run into a nearby gutter that leads to the ocean before crews could contain the leaks.

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The water leaked to the sea is believed to contain 26 billion becquerels of radioactive materials, TEPCO said.

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Despair envelopes Japan.  The government, the media, the systems running things there continue to push forwards as if nothing is happening.  But the masses are increasingly discouraged and dismayed.  The native sense of despair which has caused the entire country to basically give up on producing children is now a raging disease.  There is NO SOLUTION to Fukushima.  None!

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Maybe, some miracle will happen and someone will figure out how to stop this monster.  But we can’t even stop the pretend Derivatives Beast which is something created entirely by greedy humans out of thin air.  JPMorgan Has About $100 Billion of Notional GIIPS Derivatives – Businessweek

 

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The bank had about $13.9 billion of mark-to-market derivative exposure as of Nov. 17, offset by $6.3 billion of collateral, Dimon said at an investor conference in New York. JPMorgan would likely have a direct loss of about $3 billion if a “disaster” occurred in the region’s debt crisis, he said.

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“I get asked the question with derivatives of $14 billion, people say ‘my God, that’s your net because you have huge long and short,’ and we do. It’s maybe $100 billion by $100 billion, I forgot the exact number,” Dimon said.

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The Derivatives Beast is bigger than the US economy. It is bigger than the EU economy. It is bigger than the entire planet’s yearly GDP.

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It is insane. It didn’t exist in 1974. It sprang into being when the US dropped the gold standard. Today, it doubles in size every decade and it can’t do this to infinity thus: global crash in value of assets, ability to service loans, money printing totally out of control.

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Note that the demon Dimon who created and owns this monster, doesn’t have any real idea how big it is!!!  This shows insane recklessness.  Of course, he doesn’t know its size, he doesn’t want to know its size.  And yes, it is a disaster that already happened when AIG went under.  The rest of our nation was put in jeopardy to bail him out.  He should be arrested for wrecking our economy and endangering our state.

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But then, all the warmongers in our government and media, all the billionaires bribing Congress, should all be arrested for treason.  They are destroying our nation.

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