Europe's Future Hangs in the Balance

The Left Wing Dems prevented Republican attempts to reform Fannie and Freddy on housing loans to people who could not keep their payments up. The result was bad paper loans turned into a banking loaning disaster that became the first domino to fall starting an economic banking disaster that went beyond the housing industry by affecting the financial stability of banks and Corporations which in  turned affected jobs which in turned screwed the American economy more. Until this very day President Barack Hussein Obama tries to lay all the blame for this on President GW Bush; however since the Leftist agenda with Fannie and Freddie was the first domino that is just a typical Dem lie.

Greece is going through an election on Sunday. If the Leftists win the election Greek policies supporting extreme entitlements could result in Greece withdrawing from the Eurozone. Such an action could send an economic ripple throughout the EU possibly causing the collapse of the Euro. A Euro collapse could have the same global effect if the Dollar collapses. Again Leftist policies might cause a global economic collapse.

Charles Hawley of Spiegel Online International writes of the economic dangers if the Greek electorate votes Left.

JRH 6/16/12 (Hat Tip: Patriot Report by Danny Jeffrey)

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Europe's Future Hangs in the Balance

By Charles Hawley

06/15/2012

Spiegel Online International

Greek voters head to the polls on Sunday, and the future of Europe's common currency could hang in the balance. Investors fear that a leftist victory could trigger Greece's exit from the euro zone, magnifying problems in Spain and Italy. Adding to concerns, depositors are rapidly withdrawing their savings from Greek banks.

One way to look at Alexis Tsipras, the 37-year-old wunderkind of the Greek left, is as the leader of a small yet rapidly growing political party on the edge of Europe -- a party that stands to attract some 3 million votes in Sunday's election. Three million votes out of a European Union population of a half billion. Just over half of 1 percent.

There is another way to look at Tsipras, however -- as the European politician who, perhaps more than any other, holds the fate of the European common currency in his hands. It is this second interpretation that has the entire world gazing with fear as Greeks head to the polls this weekend. Tsipras, after all, has promised Greece that he will abandon the deep austerity measures imposed by the EU in exchange for bailout aid -- with Brussels threatening to suspend those payments, and send Athens into bankruptcy, should he do so. It is a game of political chicken that could bring down Europe.

Central banks around the world are preparing for the potential financial earthquake that could accompany a victory of Tsipras' Syriza party. Reuters reports on Friday that central banks in Britain, Canada, Japan, China and India are all working on contingency plans or have said they are prepared to take measures to counter any financial market turbulence that could result from the vote.

European Central Bank head Mario Draghi said on Friday that the ECB is ready to provide further liquidity to euro-zone banks. "The ECB has the crucial role of providing liquidity to sound bank counterparties in return for adequate collateral," he said. "This is what we have done throughout the crisis … and this is what we will continue to do."

Signs of Backtracking

A Syriza victory is far from a foregone conclusion. Greek election law forbids the publication of public opinion polls within two weeks of a vote, but the most recent surveys indicated that the leftist party is running neck-and-neck with the conservative New Democracy party, which is in favor of the euro bailout package and the austerity measures that accompany it. Indeed, many see the vote as a kind of referendum on whether Greeks wish to remain a part of the euro zone.

Given the uncertainty, the European Union has shown signs of backtracking on its tough love. Earlier this week, reports emerged that Brussels was considering watering down the austerity measures that have been imposed on Athens -- measures that have wreaked havoc on the country's economy. The Financial Times Deutschland cited unnamed EU sources on Wednesday as saying that a renegotiation of conditions was unavoidable if Greece were to remain in the euro zone.

French President François Hollande, however, warned Greeks this week not to count on a softening of conditions. Speaking on Greek television, he said: "I have to warn them, because I am a friend of Greece, that if the impression is given that Greece wants to distance itself from its commitments and abandon all prospect of recovery, there will be countries in the euro zone which will prefer to finish with the presence of Greece in the euro zone."

The fear of just such a scenario is palpable -- and it is largely the fear of the unknown. Nobody knows what the effects of the election might be, and it is unclear what a Greek exit from the euro zone would mean for the common currency. But it isn't likely to be good.

The 'Bank Jog'

Already, depositors are rapidly moving their money out of Greece. Capital outflows are now well more than €500 million each day, with €10 billion having been pulled out of Greek banks since early May. Analysts have dubbed it a "bank jog," but should Syriza emerge victorious on Sunday, it could turn into a trot, or even an out-and-out sprint. An unnamed euro-zone official told Reuters that Brussels is concerned about such a scenario. "It's not even about a bank run on Monday morning after the elections," the source told the news agency. "People can now log on to Internet banking and make transfers on Sunday evening, as well."

Still, even if all goes well in Greece on Sunday, Europe is far from out of the woods. Indeed, zero hour would appear to be approaching on several euro-zone fronts this summer, with both Spain and now Italy showing signs of having caught the euro bug. Not quite one week after Spain requested €100 billion from the euro backstop fund to prop up its banks, interest rates on the country's sovereign bonds have soared, and ratings agencies have slashed the country's rating. On Thursday, rates on Spanish 10-year bonds hit an all-time euro-era high of 6.96 percent, just shy of the 7 percent mark that drove Greece, Ireland and Portugal to scream for emergency aid.

Italy, too, is finding itself at the mercy of the financial markets this week. With investors more unsettled than calmed by the handling of Spain's banking crisis, Rome on Thursday had to pay 6.13 percent interest on 10-year bonds. "The European banking system is paralyzed," Nicolas Veron, a senior fellow at the Bruegel think tank in Brussels, told the Associated Press. "So many banks hold massive amounts of Spanish and Italian government bonds that are losing value. We no longer have a functioning interbank (lending) market in the euro zone."

Both Spain and Italy, in concert with France, are insisting that the euro zone must quickly come up with a plan to spread liability. Ideas supported by Rome, Madrid and Paris include the issuing of joint euro-zone debt in the form of euro bonds and/or European-wide guarantees on bank deposits. Chancellor Angela Merkel, however, has staunchly refused for fear of further exposing Germany and placing a greater burden on German taxpayers.

Pressure on Merkel

Indeed, Merkel went so far this week as to warn that Berlin could not solve the crisis by itself. "Germany is strong," Merkel said on Thursday, but the country's strength is "not unlimited."

Still, Merkel is likely to face some pressure in the coming weeks to do more to prop up the common currency. On Sunday evening, she travels to Mexico for a G-20 summit. Next Friday, she will join Italian Prime Minister Mario Monti, Spanish Prime Minister Mariano Rajoy and French President Hollande in Rome to prepare for the upcoming EU summit at the end of June. In all of those meetings, she will encounter pressure to abandon her refusal to consider euro bonds and deposit guarantees.

The European Union, as reported in SPIEGEL this week, is working on a plan to outfit the euro with the kind of political union necessary to solidify the common currency. But with the crisis reaching yet another apex as early as Sunday evening, the promise of future stability might not be enough.

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With reporting by David Böcking in Athens and information from wire reports

© SPIEGEL ONLINE 2012 All Rights Reserved

Is the Eurozone Crisis the First Domino to a NWO?

John R. Houk

© November 21, 2011

Tony Newbill sent an email that contained an article written by Paul Joseph Watson entitled “It’s The End Of The Eurozone As We Know It”. Displaying my ignorance of European politics and economics I equated “Eurozone” with European Union (EU). After reading the Watson article I had a feeling there was a difference between the Eurozone and the EU.

When discussing the Euro (€ or EUR for short), the scope of Europe referred to is that covered by the European Union (EU), this is a more restricted area, for example it excludes Russia.

This geographical region using the Euro is known as the Eurozone (sometimes hyphenated as in Euro-zone) or Euro area.

There are 16 countries that are regarded as officially part of the Euro and others that have adopted the Euro but do not have a full representation within the European Central Bank.

It is important to get the differences between Europe, the European Union (EU), the Euro, and Eurozone.

·       Some countries in Europe chose to use the Euro but are not official members of the Eurozone: Kosovo, Monaco, Andorra, San Marino, Vatican City, and Montenegro.

·       Some countries that are part of the EU (European Union) system but do not use the Euro: Denmark, Sweden, the UK (England, Scotland, Wales, Northern Ireland), Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, and Romania.

·       Countries that have pegged their currencies to the Euro with a view to joining the Euro: Estonia, Latvia, Lithuania and Denmark.

·       The European Union (EU) is a project of common economic and political union. This covers a more restricted region than the geographical area of Europe. That is, EU excludes countries to the eastern and southern regions of wider Europe: Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Croatia, Georgia, Kazakhstan, Moldova, and Macedonia. (Europe for Beginners – European Union (EU), Eurozone, Euroarea, and the Euro (€))

In essence the EU is the loose confederation of European nations both politically and economically. I say loose confederation because each member nation still has their national sovereignty, national laws and national taxes.

The Eurozone are those nations that have committed to make the Euro currency its legal tender. Not all EU nations thus are a part of the Eurozone (e.g. the UK), yet some non-EU nations are in the Eurozone (e.g. micro-States like Andorra, Kosovo, Montenegro, Monaco, San Marino, and the Vatican City).

A collapse of the EU would entail the disintegration of that political confederation.

A collapse of the Eurozone would entail a crisis surrounding the Euro currency.

Most people that are watching this European crisis unfold believe the collapse of the Eurozone would send Europe into a catastrophic depression making economic standards of living comparable to Latin American nations. This would freak out Europeans of the EU that have become quite accustomed to a government managed socialized life. Latin American standards of living would terminate entitlements in Europe in such a way that would make the USA look like a socialist nation to Europeans.

What would happen in Europe?

Undoubtedly social chaos would ensue. Does anyone know what happens in Europe when social chaos overtakes the capability of governments to manage their internal affairs? Can anyone say that a national savior was sought whose name was Adolf Hitler? Hitler came to power in Germany after the depression made currency worthless and rebuilt the German economy. Unfortunately for Jews and others considered inferior by Nazis, Hitler rebuilt the German military also.

Is there a Hitler waiting in the wings looking for a Eurozone collapse to be the man everyone looks to lead Europeans out of chaos? At this time I would have say no.

However, there are indications the governments of France and Germany are working some back-door politicking that might include a couple of possibilities:

1.   There is talk of making the Eurozone more elite by eliminating slacker economic nations like Greece and Italy.

2.   There is also talk of allowing the Euro to collapse enabling stronger economic members of the Eurozone (i.e. France and Germany) to dictate terms that anemic economies give up significant portions of their national sovereignty making a stronger central government within the EU that looks more like a United States of Europe with a federal style government.

I am a novice to the nuances of modern back-door politicking in Europe so I am certain there are different layers of elitist ruling possibilities that relate to a coalescing One-Europe Order.

If France and Germany intend on saving the Euro (hence the Eurozone) by limiting nations to the European Central Bank (ECB) then that would make France and Germany the de facto powers of the EU, right? If the ECB becomes elitist in membership yet EU nations continue to use the Euro as their legal tender, then that will have significant repercussions to non-ECB members of the EU. The ability to manage monetary concerns for an EU member nation would be in the hands of the non-State ECB. The ECB might actually have the ability to force economic policy for a member EU State that is not part of the Eurozone. This might be a step to uniting Europe under one government via monetary policy rather than the age old act of war.

Then there is the outright goal of making a United States of Europe with a central government. There are some that believe allowing a Euro crisis to continue to its worst possible outcome will allow the guidance of France and Germany to institute a one government United States of Europe.

The UK is a member of the EU but has gone to great lengths to maintain its national sovereignty. For example the UK does not use the Euro because it still has its own national bank (Bank of England) with the Pound Sterling as the British currency. I am not quite certain how British national interests would deal with the French and Germans dominating a U.S. of E.

History has shown that the UK has not liked the idea of continental Europe calling the shots of British policy. I predict if Continental Europe draws toward a central government that the UK will not participate in a United States of Europe. So then Geopolitics comes into question. If the scenario is an independent UK, a central government of the USE and various Eastern Europe nations not a part of the USE but are a part of NATO then a different relational balance of power must ensue.

For one thing the existence of an American led NATO would not be in the national interests of a new USE. The NATO as we know it would have to be disbanded or realigned. For there to be a viable NATO it might look like the USA, the UK, the USE and various new NATO members of Eastern Europe (of the old Soviet bloc). Frankly because a more powerful centralized USE, I doubt that the one Europe order would enjoy playing the back-up role in NATO.

I see two possible shifts in geopolitical alignments that might even further change if the first tier is successful.

·       The USE would withdraw as an active member of NATO and begin to take on its own defensive strategy that would at least be friendly to the USA in the beginning.

·       The USA, the UK and Eastern Europe nations would continue in NATO or develop a new charter redefining an alliance strategy for belligerent invaders from the East like Russia or nuclear armed nations perhaps like Iran or even Pakistan.

Then the U.S. foreign policy ticket might be completely overhauled.

Perhaps the USA would begin to view the USE as a viable buffer. This would mean the USE would be the buffer between a reemerging Russia and American national interests in European markets. America would begin to solidify Latin America as being off limits Western and Eastern powers as in the old Monroe Doctrine updated to the 21^st century. With Russia buffered by Europe then American would be able to focus its interests on America’s greatest Eastern competitor – China.

It would behoove America to drop untrustworthy Pakistan and cultivate a friendship with India. Cultivation with India could be tricky since Russia has been an ally for India for some time; however except for a penchant for socialism India has nothing in common with Russia.

India is a nation of democratic institutions with a huge infusion of socialistic government management. India’s natural enemy is Muslim Pakistan. Both India and Pakistan are nuke powers. Pakistan’s government is ironically a bit byzantine and unstable as to who calls the shots on policy. India demonstrates all the growing pains of a third world nation moving up the later to economic strength yet with a stable government which is amazing considering the diversity of religious elements inside India. Hinduism is the big dog, yet Islam is still a large element in India.

I bring the plusses and minuses of India to attention because of the Global War on Terrorism, Iranian saber rattling, Russian demands to be a geopolitical military player and China’s desire to be a shaker and mover economically on a global level which in turns would require a shaking and moving military back-up Chinese national interests. This in turn connects to America’s national interest to protect her citizens physically and economically which again goes to military power.

To bring my rambling all together I need to point out that a collapsing Eurozone and a restructured European Union has a definite affect on America’s future via the policy choices America would have to make. Let’s be clear. Those America choices are more than just concerns over deficits and debt and the economy. Those American choices will determine America’s traditional strengths of Life, Liberty and the Pursuit of Happiness which in turn frame Constitutional Rights and laws that have become embedded in the American psyche almost like a spiritual persona.

Just as a side note I realize these thoughts gravitate more toward nationalism and American Exceptionalism than toward global elites pulling strings to form a One World Government or New World Order under an international power. Personally I believe the NWO conspiracy theory has some viability as an agenda; however as far as human nature goes I also believe human differences of opinion cannot sustain a One-Government NWO. Even in an oligarchical fashion, spheres of influence that will look more like cooperating nations will happen in Earth’s future rather than the executive power of One World Government.

Many will find another irony in my belief system. I BELIEVE IN A ONE WORLD GOVERNMENT!

My view of a One World Government/New World Order is not at the hand or hands of mankind. Rather my view is that of the Parousia of Jesus Christ that will initiate the thousand year rule of the Lord’s Kingdom on earth. After the thousand year rule of Christ, human nature will again be tempted away from God’s covenant with Satan’s release from his supernatural prison to again deceive humanity into believing that Satan’s leadership can defeat the Creator’s power to make twisted ungodliness normal and godliness to look like evil.

Once again that old dragon Satan will get whooped upon and his deceived followers. God Almighty then creates the New Earth and the New Heaven which merge together as Jerusalem as the capital city. Then human nature will longer be tainted by the fallen nature of the first Adam but will be like the nature of the last Adam – Jesus Christ the Son of God and Savior.

So, do I think a Eurozone collapse is imminent? A lot of pundits think so. There is disagreement though. Niall Ferguson senses the European Union will collapse while the Eurozone survives by restructuring somewhat as I mentioned earlier. Making a strong Euro thus means making the European Central Bank an elitist organization expelling or refusing to allow weak links (i.e. weak economic nations) to be a part of the ECB Board of Directors. Incidentally the ECB Board of Directors functions somewhat like America’s Federal Reserve. The weak links that continue to use the Euro as their currency would in essence make their economic policy subservient to the ECB Board of Directors.

Whether the EU collapses or the Eurozone collapses, the most likely outcome will be a restructuring of Europe. If everything goes south then Europe returns to a bunch of fractured nations. I am guessing on a global scale this would not be beneficial for the global economy affecting big economies outside of Europe. This is why people should pay attention to the other alternative; i.e. the existence of a United States of Europe fits the bill to keep global economic standards on an even keel.

JRH 11/21/11