If You Haven't Bought Any Gold Yet...

Email Print

by Simon Black: This
Is What Passes for Democracy in Greece… and America

Print. Lie.
Borrow. Deceive. Deny. These are a the principal tenants of the
Greek restructuring plan that were released today from Brussels…
it’s as if EU policymakers put it together after shaking a
Magic 8-ball.

The whole world
knows that Greece is bankrupt and has been living bailout to bailout
for over a year. Deep in debt and devoid of cash, the country has
completely forsaken its sovereignty in exchange for becoming a ward
of the European Union; Prime Minister George Papandreou is now a
hapless stooge awaiting instructions from Germany.

It’s ironic
that the Greek proposal released today calls for a ‘Marshall
Plan’ of investment across Europe… given that the last
time Greece was being controlled by Germany was during the country’s
occupation by Nazi forces after being vanquished by Hitler’s
12th Army in April 1941.

And so, with
limited debate and even less fanfare, Europe has just officially
signed on to destroy its own currency. Utterly worthless, quasi-defaulted
Greek debt will become perfectly acceptable collateral, much in
the same way that the US Federal Reserve took every scrap of toxic
paper it could find off banks in 2008 and 2009.

Given the favorable
market reaction, European politicians must be feeling pretty proud
of themselves. The euro is up. The stock market is up. Oil is up.
Well, never mind about oil, they’ll blame that on evil speculators…
just like food prices.

And the proposal
is so deliberately vague, they can go back home and tell constituents
whatever they want. Angela Merkel can tell German voters that the
French are paying for it, and Sarkozy and tell French voters that
the Germans are paying for it. Win, win!

The European
sovereign default SOP has just been set. When Spain, Italy, Portugal,
and Ireland’s time of insolvency arrives, it will be handled
just like this: Print. Lie. Borrow. Deceive. Deny.

Every day it
becomes more and more obvious that the financial system as we know
it is breaking down. The United States and European monetary union,
whose currencies comprise nearly the entirety of the world’s
fiat reserves, have both signed up to debase their currencies as
rapidly as possible.

This is going
to kick inflation up another notch as anyone holding on to Greek
debt is going to trade out of it as quickly as possible. All that
money has to go somewhere… and it’s a sure bet that a
lot of it will feed rising commodities price (which translates into
more inflation).

the rest of the article

Email Print