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Please go there for all new posts.

Damon Vrabel on Fascism

What is fascism? (my post on MaxKeiser)

Posted on June 24, 2010 by dvrabel

http://maxkeiser.com/2010/06/22/guest-post-fascism-american-style/

Since we’re stuck in a monetary system that allows a tiny private sector clique to control everything (business, government, military, non-profits, schools, families, etc) by putting everyone else in debt, we’ve been living in financial dictatorship for a long time. It has been a soft PR dictatorship of Hickey-Freeman suits and Saks 5th Avenue ties, Harvard pedigrees and fratboy schmarm. But hard dictatorship has been coming out of hiding for several years, especially since 2001. Not only can the money powers steal trillions from the masses to hand over to themselves, but they can suck the military into conquering poor countries that aren’t subject to their usury vortex system, build Homeland to spy on Americans, and have the CIA assassinate US citizens.

There is no question that full-blown fascism is planned for the supposed land of the free as they try to move us into the new global system. And all the Republicans blaming Obama for it, just like the Democrats who blamed Bush, need to stop being suckers and realize how the politicians are not in charge. The money powers knew 100 years ago they couldn’t subject their wealth and power to the whims of mass political opinion…they learned well from the Teddy Roosevelt days. Ever since, they have built increasing control into the system.

Blame the politicians? Absolutely…each administration takes an incremental step for the money powers. But don’t get suckered into believing a politician from your side of the aisle playing the same old game of flipping between left and right is going to change anything. We’ve been sold on parties just like we’ve been sold on Coke vs. Pepsi–they’re the same.

Find leaders who know their neighbors, who understand the mechanics of a republic vs. empire, who understand the power of those who control all money in our system, rather than repeatedly voting for unhappy, addictive Harvard/Yale elitists who get a rush out of “system managing” the masses for the money powers. Any narcissist who thinks one dude in a distant white house can system manage 308,000,000 people should never come close to actually being in that white house. But that’s who we’ve put in that house for the last several decades.

Luckily people are now breaking free of the PR programming. The choice isn’t left vs. right. It is big vs. small, republic vs. empire.

Check out Damon Vrabel's new blog

For those who have checked out Renaissance 2.0, congratulations for gaining some exposure to Damon and his views.  I believe him to be right on the money and I am thrilled to find that he has a new blog and is using Renaissance 2.0 as the introduction to his new site, Council on Renewal.  If you have not watched Renaissance 2.0, stop and go do it now.  Judge for yourself if this man and his views are worth your time.  I think you will be pleased with your effort.  He also has his  CSPER blog (Council for Spiritual, Psychological, and  Economic Renewal) associated with the site where he will be publishing.  Below is his first blog post, enjoy.

Damon Vrabel – McChrystal vs. Obama

by noreply@blogger.com (Nathan A. Martin)

Damon talks a lot about the CFR (Council on Foreign Relations). That’s because the power players behind the political and money scenes comprise the management of the CFR. They use it to advance their agenda under the cloak of promoting global cooperation. However, their idea of cooperation is massive debt for everyone, issued, controlled, and profited upon by them! Since they profit from interest, they are motivated to produce more interest and conveniently it compounds upon itself to create a never ending paradigm that feeds up the pyramid as Damon puts it.

To counter the CFR, Damon is forming CSPER or the Council on Renewal. He is starting a blog and will be promoting the Council. He is currently setting up methods for membership, I encourage everyone to bookmark Damon’s site and to register to his site in order to receive updates from him. Also note that I have included his blog in my blogroll in the lower right hand column of this blog. Here’s Damon’s statement about the opening of his blog:

I decided to launch a blog so the Council on Renewal could quickly respond to important news that gets funneled to us in the fake left vs. right stage show called the mass media. The corporate/state controlled media industry is designed to hide the truth and keep us fighting each other in Dem vs. Repub cheerleading groups--just like the Celtics vs. the Lakers, or Apple vs. Microsoft. We need to remember that just like the Celtics and Lakers or Apple and Microsoft, the Dems and Repubs are controlled by money powers and compete in a corporate-controlled arena. My goal with this blog is to expose that and discuss the news from the perspective of the corporatocracy that controls everything mainly through their policy group and networking clique called the Council on Foreign Relations (CFR).

Writing articles for my Canada Free Press column allows me to flesh out the big issues, but it’s not appropriate for daily “quick hits.” This blog site will be the quick hits.

Damon has a gift of creating a clear and concise message. We need efforts like his to counter the BS and to bring light into the motives of those in power. I agree that there’s more to this McChrystal/ Petraeus move than meets the eye, please be sure to view it within the context of other moves now occurring in the Middle East as well as in the political arena. I also would like to note that our own media is now working very hard to discredit McChrystal…

McChrystal vs. Obama

By Damon Vrabel

The mass media stageshow is a hoot. Remember that all of this is controlled by the top folks in CFR (the inner financiers behind the Wall St cartel). Just like Tom Cruise in The Firm, those top folks use CFR membership to control/influence/co-opt the rest of the people in the group. Who are some of those people? McChrystal is CFR. Petraeus is CFR. James Jones is CFR. Gates is CFR. Eikenberry is CFR. In fact, Obama’s entire team is CFR, just like Bush’s was. Much of the media is also CFR.

The motive of the top controllers in this McChrystal vs. Obama episode could be any one of many possibilities…

- CFR wanted to stoke an Obama vs. military fight to rally the “raging war machine right” for the 2010 elections against Obama rather than leaving room for 3rd party and other efforts to save the US from Wall Street.

- CFR simply wanted to put Petraeus back on the front page as they groom him for the 2012 presidential campaign. He has been a good yes-man for his Wall Street CFR controllers. They like careerist generals like Petraeus and Richard Myers who are subservient yes-men doing whatever they’re told to feel the affirmation of pleasing their bosses and getting more medals. They also like ruthless frigid generals like Barry McCaffrey (or lower ranks like Oliver North) who massacred thousands on orders even though they were retreating, which violated every sense of morality and international law, but that’s not Petraeus.

- CFR needed to replace McChrystal because he started seeing the truth, feeling his conscience, and siding with his soldiers vs. his controllers back in NY. CFR would’ve had insiders close to McChrystal to know his general mindset and even overhear his private conversations to detect if he was straying from their desired goal to maintain their presence in Afghanistan perpetually to control all the natural gas, mineral deposits, opium, and otherwise keep the process on track of managing young Americans to their deaths in order to convert Afghanistan into a satellite state of our banking/corporate empire. By the way, this doesn’t mean they’re necessarily using secret people. They simply surround executives (from the President all the way down through civilian and military chains of command) with big staffs, and those staffs report up their own chains of command where they all eventually reach the top of the Pentagon, State, etc where inner CFR members typically rule. But it could be secret people as well. The CIA uses assets inside all sorts of organizations–foreign governments, corporations, military units, state governments, etc–to ensure they’re secretly staying on top of things. And CIA serves CFR/Wall St.

Overall this media stageshow is probably a strategic chess move to accomplish a combination of all 3 of these things and then some. Just don’t let yourself be caught in their manipulations. And help explain this to your friends, family, neighbors. The media is used to accomplish strategic objectives, NOT to report news.

Guest Post: They Keep Stealing - Why Keep Paying?

by Tyler Durden

5 people liked this

By Dylan Ratigan
They Keep Stealing - Why Keep Paying?



The dire straits of the middle class of America has made it near impossible for our politicians to keep up the pretense that our current government truly works for the "people." Between the multiple overt and secretive bailouts, the massive bonuses and the circular use of our tax money to lobby for these continued handouts, you can no longer hide from the evidence.

When Senator Durbin said "The banks... frankly own this place," you realize it was not in jest.

Couple this with recent protections handed by the Supreme Court to corporations to directly influence elections and it can make things seem hopeless for those not on Wall Street or their chosen politicians. Favored CEOsand now even foreign countries get all the printed money they need, leaving us paying both our bills and theirs.

And now nearly a quarter of all Americans are currently underwater in their mortgage because of that steadfast honor.

If you are one of them, chances are you didn't do anything wrong. Almost all of you were not subprime borrowersor speculators, but merely people buying a house that they thought they could afford at the time. You were just unlucky in that you bought a house during a time when an outdated Wall Street and their complicit politicians decided to use housing to regain the income they lost due to the Schwabs and Etrades of the internet age.

You didn't cause this mess. They did.

Now you are struggling to make the same payments on this mortgage on your now overpriced home even in light of a crashing economy and massive deflation, all while the government does everything in its power to help Wall St. keep the bonuses coming.
Well, it is becoming time to take matters into your own hands... I suggest that you call your lender and tell them if they don't lower you mortgage by at least 20%, you are walking away. And if they don't agree, you need to consider walking away.

It probably doesn't feel right to you.

That is because you probably are a good person. But your mortgage is a business deal, and it is not immoral to walk away from a business deal unless you went in to the deal with the intention of defaulting.

But somehow, even though the corporations are pumped to exercise their new rights, former bankers like Henry Paulson, current ones like Jamie Dimon and -- get this -- now even Fannie Mae execs want to keep you from exercising your rights.

But before you let them (or anyone commenting below) force you into paying that $500k mortgage on a $300k house, ask them if they'll push Jerry Speyer into "honoring his obligation" by breaking into his $2 billion personal piggy-bank to keep paying for Stuyvesant Town?
Or how about asking Hank and Jamie to lecture fellow bailed-out CEO John Mack about how "you're supposed to meet your obligations, not run from them"? Maybe make him use some of his $50+ million for those buildings he bought in San Francisco?
And before shaming and punishing American homeowners, did they nag Steve Feinberg about helping "teach the American people...not to run away" by writing a check out of his billion-dollar pocket to cover all the stiffed landlords and vendors at Mervyn's? After all, at least you aren't single-handedly putting 1,100 employees out of work when you walk on your mortgage.

As part of the deal for your house, your mortgage holder gets interest payments from you and they also use the note to your house for their capital reserves. In return, they take the risk of a foreclosure. In many states, you paid extra to have a non-recourse loan where the lender just gets the house back if you stop paying -- your interest rate would've been much lower if you were held personally liable like a student loan. But if you still feel bad, then donate the money saved to charity instead of to their bonuses. And when someone tries telling you why it is so wrong, here are some answers:

- Yes, it might seem selfish, but you are actually going to help fix our country the right way, through the use of pure capitalism. There are 3 parties involved in your mortgage -- the mortgage holders, the servicing bank and you. You probably want to stay in your house. Most of the people who actually own your mortgage also want you to stay in your house, preferring a mortgage reduction that you keep paying instead of the total loss of a foreclosure. But the major banks (BofA, Wells Fargo, JP Morgan, Citi, etc.) that underwrite and service the loans don't care about either of you. They (with the aid of their government) just care about hiding their true financial condition for long as possible so they can continue to bonus themselves outrageously. The credible threat of you walking away from your mortgage en masse is the only market-based solution that will force these banks to work with the mortgage holders on your behalf.
- No, you will not "hurt" your neighbors -- certainly not near the scale of the banksters. Chances are someone just as nice will you will move in and (unlike you) pay a fair, non-inflated price for the house. Encourage your neighbors to fight back against the banks and ask for their own mortgage reductions as well.
- Yes, it might make getting a loan harder for everyone. Considering the spate 0% down NINJA loans over the past decade, that probably isn't a bad thing.
- Yes, it might hurt your credit. But with time, people bounce back from having foreclosures on their record. Search online and then talk to a lawyer about the repercussions, which vary by state.
- No, the banks won't necessarily pass the losses on to customers. They already make a lot of money. If costs are passed on to every consumer without banks competing on price, that's a sign of illegal collusion or a monopoly. Let's fix that instead of just letting banks ruin our lives. They might, however, not all make $145 billion in bonuses next year doing something fundamentally so easy that it is an unpaid job in Monopoly.

Meanwhile, our captured government has made it clear that they want to further reward these banksters because there are clearly better ways to "save" the economy without rewarding those most responsible for the damage.

Instead of claw backs for the past theft and strong financial reform for the future, they choose to cover-up the gross misuse of our tax money, making our country worse by helping the criminals on the backs of the most honest.

But thankfully, in this country we still have the tools to fight back and regain our country. Our vote, our voice, our laws and what we choose to do with every penny we have that doesn't go to taxes are the benefits of our hard-fought freedom, and in this battle we must use them all to fight back. It's time for the citizens to once again own this place.

Path to Gold Backed Currency

Jun 23, 2010 - 04:04 PM

By: Jim_Willie_CB

SDR Strawman & Gold-Backed Euro - The world faces challenges and uncertainty these days like perhaps never before in modern history. Broken insolvent banking systems match the insolvent homeowners living in despair but with newfound hope from simply not paying home mortgages in large numbers. Henry David Thoreau could actually run for the US Senate, as his platform of civil disobedience is more widely embraced with each passing month. Over a quarter million Bank of America home mortgage holders have not made a loan payment in a year, yet still occupy rent-free dwellings. The European sovereign debt has shaken the entire government financial structures, offering a preview of what comes to the sacrosanct Untied States and Untied Kingdom. In its wake, a fire is lit under gold as a recognized safe haven asset that has no debt attachment or counter-party risk.

Government budgets read like Banana Republics throughout the Western world. The norm has become crime syndicates to control most Western Govts, matching the trend for local warlord criminal groups to control most Third World Govts. Mexico is now a failed state. Think evolution in reverse. Indeed, crisis has become the new norm.Indeed, stimulus and extreme liquidity buttresses have become the new norm. Indeed, sugar high on perceptions after stimulus has become the new norm. Indeed, war has become the new norm to define peace. Indeed, pursuit of truth has become the new norm to define terrorism. It makes sense that restructure of the global monetary system would evoke a powerful response by the Anglo bankster power merchants. Their response so far has been desperate attempts to preserve the system, combined with feeble gestures on actual innovative concepts. Take for instance, the Straw Man built of the Intl Monetary Fund and its primary vehicle, the Special Drawing Rights, the equivalent of a rusty corrosive chopshop car whose engine is still seized up, runs at extreme inefficiency like 1.5 gallons per mile, but sports a spiffy new paint job.

Against this backdrop, the global monetary system is clearly broken, and increasingly recognized as broken. Political and banking leaders have been working on solutions. In Europe they have been focusing on extreme solutions, but in the United States they have been focusingon more extreme measures to preserve the current system. The one main principle to recall about bubbles and Ponzis is that an accelerated supply of money is required to maintain even a constant size of the destructive condition. My firm point has been for two years that the first nations to abandon the USDollar as the foundation for their monetary, banking, financial, and economic systems will emerge as leaders in the next global chapter. The jump transition is extraordinarily difficult. The entire world, evidence seen in the G-20 Meetings, is actively pursing an alternative to the US$ as the global reserve currency.

While they diddle and dither, gold has taken up the slack within the vast void from inaction. Gold demand is on an accelerated rise for physical investment. Coin and bar shortages are almost everywhere, and gold mine output is on a worsening decline. Awareness has grown robustly about the incredible duplicity of fraud laced in many Exchange Traded Funds for gold & silver investment. Europe without question must first find a solution, and much progress has come. The quest for a monetary structural solution can be best seen in viewing the pathetic IMF SDR concept for its lack of solution, versus the innovative aggressive plan of the New Euro currency. The patchwork SDR vehicle means continuation of a broken system, with the power baton held by multiple hands, but all the newly indebted broken kings. The New Euro vehicle will involve a grand streamlined platform, better described as a Dollar Killer. It will remove dependence upon faith, that same faith deeply betrayed, and thus remove the potential of syndicate control, fraud license, and counterfeit potential.

THE S.D.R. STRAWMAN NON-SOLUTION

As preface, consider the best parts of the patchwork SDR vehicle, and what benefits it offers. The Special Drawing Rights, denominated in US dollars, has their nominal value derived from a basket of currencies, tied to fixed amounts of Japanese Yen, USDollars, British Pounds, and Euros. The proportion each of these four currencies contributes to the nominal value of a SDR, reset every five years. A greater role for the SDR either to store foreign acquired reserves or to conduct transaction settlement does offer greater stability. It does so by essentially fixing the currency exchange rates within the participating group of currencies. While ignoring the reality of changing environment, it enforces stability from instilled constancy. Maybe the SDR could reset the component percentages every six or twelve months, instead of five years. The world is changing fast. The other benefit would be the greater confidence that comes when foreign reserves can be placed in a stable warehouse shed, even if the place is rotten, has rancid acid spread about, and smells horrid.

The SDR concept reveals desperation among the Western bankers, led by the Anglos. Their idea of switching (hardly reverting) to the SDR reveals desperation to retain continuity within a broken system. We see Europe struggling to maintain the unified Euro currency, bailing out banks for badly impaired sovereign debt, with the cost being to the entire European continent. By holding together, they sink together from a broken system. Leaders rarely choose to look at why it is broken, preferring to put a typical bandaid or tourniquet on the gaping wounds. Instead of the patient walking, he stumbles quickly when on foot, only to reveal a new gaping wound. The patient needs to be shown the morgue, and its clan to claim its wretched toxic inheritance from the corrupted strongbox brought forward.

The Special Drawing Rights is a life extension concept without solution, a reprieve without consequence. It represents tying a noose around the four major world currencies, so that they most assuredly sink together, hardly a raft, more like shackles. However, in the eyes of the Anglos, those Wall Street and London craftsmen of toxic bonds, and of clever insurance contracts against their own clients death (conflict of interest), the SDR is a poor attempt to divert attention away from viable constructive solutions. For two years, the Jackass has mentioned a Grand Paradigm Shift underway from the USDollar in both banking and commerce. The IMF SDR is an attempt to detour the G-20 nations from seeking a better vehicle that actually operates efficiently without toxic fumes of ruined debt and seized engines of insolvent banks.

The mere fact that the G-8 Meeting has been eclipsed and supplanted by the G-20 Meeting carries great meaning.The Western dominated smaller G-8 is being recognized as an assembly of failures, not only champions of failed fiat currency and failed central bank franchises and insolvent banking systems and broken economies, but the responsible parties for export of toxic bonds that pollute most emerging economies. The mere thought floated of new SDR bonds or new FX contracts to link with the SDR cause nausea, since they come with no credibility. Expect zero progress on these mechanics.

The Anglo leaders of the G-8 Wolfpack wish to subvert the larger group of nations and their broad initiative to seek a workable sweeping solution, since it would surely not center on the USDollar. The G-20 nations clearly perceive the USDollar as exhausted, lacking viability, and the source of much of their own internal instability. The Anglo-led Fiat Monetary Brigade must pre-empt a Paradigm Shift away from worthless currency backed by nothing, the fiat system, centered upon the USDollar. The Anglo Bankers appear to pursue another vehicle for principal usage, one still under the control of the developed world. Translation: by Anglo Bankers. It is merely a group of integrally connected similarly damaged vehicles. The Intl Monetary Fund currency, the Special Drawing Rights is the perverted goal for broader global usage as replacement to the USDollar, in a stay of execution, a delayed trip to the cemetery. My view is that the G-20 has no interest whatsoever in any broader SDR usage, which they see as the same toxic bundled fiat papyrus that cannot float well in the oceans, showing different ink on its flag. The paper currencies are doomed to die together, alone or in a bundle. They are all denominated debt masquerading as money. The foundation for any SDR vehicle would be just as damaged from a balance sheet perspective, maybe worse. The IMF is merely a commisioner office for the broken fiat team members, complete with rotating chairs. Furthermore, admission of its own insolvency has come forth. The head of the IMF policy steering committee, Youssef Boutros-Ghali announced the fund requires $320 billion in order to be properly resourced, in his words. So they are broke too! The jig is up in full view. Boutros-Ghali admitted that the IMF is essentially insolvent in its current form.

Fortunately, the broader group of organized nations is wise to the failure of the current system. They increasingly defy the smaller group of formerly powerful industrial nations. They hold outsized reserves in toxic bubble bonds, no longer of the mortgage variety, but instead the sovereign variety. Emerging nations are worried sick that years of labor and export surpluses have been directed, under US-UK guidance, into tainted US$-based bonds and Euro-based bonds. The damage suffered from the EuroBond holdings has them scared witless of a larger series of losses from the bubblicious USTreasury Bonds, kept inflated by monetization with increasingly awareness and publicity. They see their FOREX reserves supported by a Printing Pre$$, which they readily recognize as a Banana Republic hallmark. The news of a ruined Gulf of Mexico ecosystem and shoreline adds to the tragic Third World image for the United States.

The entire movement of the IMF SDR to serve as next global currency smacks of putting a new paint job on a rusty clunker car, essentially a bait & switch but in package form. The SDR is a Strawman of no substance whatsoever. This man cannot walk, cannot bear weight, and cannot withstand storms. The SDR concept is designed to scare away the legitimate architects of a valid solution. What is lacking in the intellectual discussion among architects on the broken side of the table is an absolute truth, the Sound Money Axiom.

THE SOUND MONEY AXIOM: PAPER CURRENCY CAN NEVER REPLACE PAPER CURRENCY AS THE GLOBAL RESERVE, SINCE ONLY METAL CURRENCY HAS THAT CAPABILITY.

So the cobbled weak solution behind the IMF Special Drawing Rights initiative serves several purposes, designed to accomplish the following:

• continue to perpetuate the same broken fiat currency system
• continue to enable banker power to be wielded by the Anglos
• transfer the Keynesian Fiat prime pump to a still controlled location
• drag down the group of currencies together, with illusion of stability
• spread evenly detrimental effects of massive deficits into global inflation
• create a new monolith of corrupt power in the IMF, whose track record is horrendous
• work toward the creation of new worthless sovereign basket bonds
• divert attention away from actual effective lasting pagan solutions.

NEW EURO PATHWAY

The two new Euro initiatives serve as systemic threats, delivered from outside the power center, as attacks to the crippled fiat flanks. The mere split of the Euro into two tiers, a seemingly sensible maneuver, avoids difficult decisions like bank-held bond writedowns, bank shutdowns, the whiplash effect of a fast rising new currency, and much more. Germany and France are examining a Two-Tier Euro currency structure. The intermediate stage of the new Northern Euro currency is in progress. The motive is to create a firewall of protection from the Southern imploding PIGS nations. German and French finance ministers are attempting to design a Two-Tier Euro currency system to separate stronger Northern European countries,  protecting them from being dragged down by the weaker insolvent Southern states. A collectivist Southern solution protects banks exposed to sovereign debt, rather than a single nation being expelled. However, they will tend to sink together rather than alone. The UK Daily Telegraph is the intrepid source for the dramatic option. See the article (CLICK HERE).

Senior European politicians do not believe they can withstand another crisis, but they must prepare for Spain and Italy next, with assured bigger shocks. The creation of a Super-Euro zone would initially include Germany, France, the Netherlands, Austria, Denmark, and Finland. The broken parts in Portugal, Italy, Greece, and Spain, even Ireland, would be relegated to the Mediterranean under-class. The Spanish banking implosion scares the central banks witless, and it should. Spain has a distinction of denying its bank corrosion reality. They have not written down much of any bank credit assets in two years, and have not reduced prices of properties in any sensible constructive fashion. They therefore have left themselves exposed to gigantic airpockets, where entire scaffolds will collapse.

The Two-Tiered Euro currency system is intended to cut out and remove the damaged insolvent nations they can no longer afford to bail out. Regard the half-baked eleventh hour concoction as lacking substance and planning, replete with desperation. The PIGS sovereign debt is dragging down all of Central Europe. The pursuit of solutions is motivated by staring into the abyss, threatened by contagion of insolvency and default. France has lent $750 billion and Germany $500 billion to Spain respectively. And Italian Govt debt to be refinanced before the end of 2011 is 10 times that of Greece. Lead nations are frustrated by being attached by a ball & chain to the wrecked PIGS nations. Politicians have suffered lost support in elections, are deeply concerned about lost power, and seek alternative solutions of radical type, since their finances are being ruined slowly. This Two-Tiered initiative is NOT a solution, but rather a step away from centralization that will not avert the tumble step toward sovereign debt default. The Two-Tiered approach serves mainly to develop the psychology, in my view, to condition the mindset for reform with substance, to embark on a new path with some hint of innovation, and to light a fire under the process. It urges a solution out of the box.

PRECURSOR TO NEW NORDIC EURO

Witness the precursor to the New Nordic Euro. This is the much more realistic lasting solution, with systems being put in place, with important contracts being signed for installation of support systems. The wealthier Northern European nations seek to protect themselves, while simultaneously setting up the necessary structure that would enable reform and restructure to the indebted Southern Europeans. Take the concept of a forked split, but put different meat on the bones. Germany would lead a group of countries out of the existing Euro into a new single currency. The old Euro would become the Latin Euro or Southern Euro, whatever name suits them. The Latin Euro currency after the split would decline sharply against the newly hatched German-centric Euro. The devaluation would render great economic stimulus to the Southern nations. Important difficult decisions would have to be made regarding debt writedowns, forgiveness, and restructure. A perceived driving motive in the plan is to provide Southern nations some security from remaining within a group, so individual distressed nations like Spain or Italy would be spared the stress of being forced to contend with their situations alone. The bunker mentality will not spare them of continued deep distress. The consequences for any expelled nation would be catastrophic to bankers holding any sovereign PIGS debt, a problem not mitigated by any bicameral plan. The only assurance in this chaotic crisis is change coming to the EuroZone, radical change. In time, my full expectation is for each Southern Europe nation to opt to go it alone, to revert to the old native currency, to devalue it more, and inflate with abandon with spectacular deficits incurred, incite some nationalism, wave flags, and slide badly from prosperity into poverty.

When practicality and feasibility dictate very difficult decisions to be made, with actual full implementation made final, a simple split of the current Euro will not be possible. It sounds good, and has value primarily in altering the psychology toward even more aggressive reform. Finally, the design of the New Nordic Euro will be on the table, with its radical but extremely necessary and obligatory requirements. A simple Euro currency split cannot work, since it does not solve the shared debt problem. A new currency must have a rock solid foundation built of hard assets, not a floating raft of papyrus built of fiat value, false promises, phony confidence, and a twine made from debt.

For those who believe the New Euro is a crock, consider this. A Hat Trick Letter subscriber in Copenhagen Denmark offered a note with meat, for which the Jackass is grateful. He confirms the New Nordic Euro is coming into reality, as a result of conversation with his banker. By email, the man sent the message, "It is amazing to see how things play out like a script! I recently talked to the German chief economist of Barclays Thorsten Polleit. When confronted with the Nordic Euro currency idea, he nodded silently, with a strange look of having a secret cover blown away. He did not comment on it even though we were having a quite informal talk. The warmest of greetings from the heart of Copenhagen." Word is spreading, impossible to contain, since too important.

So the European innovations on currency reform and redesign have some formidable challenges. The simple Two-Tier Euro split has many obstacles to overcome:

• restructure sovereign PIGS debt and East European debt
• protect from unstable shifts between standing currencies
• protect from unstable shifts in price of major assets like crude oil and copper
• detach from new debt driven by fresh government deficits
• permit more autonomy to central banks from individual nations
• restore confidence in currency itself
• install payment systems for international commerce, starting with OPEC crude oil
• integrate with European trade partners (e.g. Russia, Scandinavia, Asia, Arab world)

Gold satisfies the above criteria when attached formally to a monetary currency vehicle the strength, durability, credibility, and freedom from debt. Germany plays a role filled with intrigue. They cooperate with the Wall Street and London bankers, whose prestige has vanished from the $trillion mortgage bond fraud, aggravated by their nasty attacks against sovereign bonds. German consultants advised Swiss and Dubai to remove gold bullion from custodial accounts at the New York Fed. Now German parties are the primary proponents, designers, architects, and engineers to a new revolutionary currency. After installation, the New Nordic Euro will serve as a Dollar Killer in my view. Americans are blind to the upcoming broadside assault, arrogant to the end that the King Dollar will live forever, oblivious to the Paradigm Shift in progress.

As the United States is knocked further off its prestigious perch, great wealth will evaporate from the significant movement away from the USDollar as global reserve currency. Its value must eventually be determined by the free market, and that value will come at a shocking low level. My belief is that any new widely used gold-backed (or hard asset) currency embraced by the major nations of the world will act as a Dollar Killer, and usher the United States into the Third World. The linchpin is usage of the New Nordic Euro for crude oil sales, a requirement as part of an alliance with OPEC. It is scheduled for later. Imagine the USEconomy fretfully buying New Nordic Euros so it can fetch crude oil, foreign cars, or nifty home electronics. The USDollar would descend each and every month in value. Eventually the United States would adopt the Nordic Euro, but only after tremendous damage, huge asset losses, and much more lost power & prestige.

FRENCH PASTRY & RUSSIAN OIL

Tremendous posturing and preparation are underway behind the curtains, out of view. France wishes to be included in the New Nordic Euro, due mainly to image and prestige. It lacks sufficient export surplus and national wealth to be an equal partner. In fact, France is more like the PIGS nations than like Germany, without a doubt, as per annual debt and cumulative debt. Leaders in France had better be cautious of what they wish for. An equal partner among Northern European nations is unlikely. They might have to settle serving as German squires, carrying luggage and delivering messages. Posing as a strong nation under any new currency regime, even if temporary, will deliver quick shocks to Paris, where arrogance runs high, solvency runs low, and wealth is non-existent.

Russia on the other hand is making preparations to establish Moscow as an important financial center. The Kremlin strives to elevate the Russian Ruble to a reserve currency. They want an end to USDollar domination. A complex strong financial center in Moscow requires many challenges to be met, and diverse financial assets to be freely traded, with open borders. Moscow is working toward a role within the New Nordic Euro framework, toward guarantee of commodity supply. The challenge to establish an international financial hub is great. A reserve currency requires the openness to trade it on the FOREX, and strong capital markets for currency, bonds, and stocks, along with investment banking and respect for contract law. These are the challenges. My sources tell of Russia working closely with the designers toward the foundation of the New Nordic Euro, in commodity supply guarantees. Rumors are swirling that the new hard asset currency might have not only a gold component, but a crude oil component as well, maybe even an industrial metal component.

After such profound bond fraud in New York and London, the door is open in foreign lands. At a St Petersburg Intl Economic Forum, Russian President Dmitry Medvedev publicly stated his multi-faceted goal: to make the Ruble one of several world reserve currencies, and to establish Moscow as a global financial hub. The vast nation under nine timezones is in possession of natural resources to support a global currency. The world might require up to six reserve currencies, Medvedev believes, without any direct mention by him of either participation with the New Nordic Euro or a gold-backed Russian Ruble currency. The Kremlin wishes to reduce the USDollar dominance, and US financial domination in general. Russia sold USTreasurys for a fifth consecutive month in April. In fact, all BRIC nations (Brazil, Russia, India, China) were net sellers of US$-based assets in April. Central bank Chairman Alexei Ulyukayev announced in a June 16th interview more diversification plans for its reserves. A tidbit, as Medvedev this week visited Apple Computer and Cisco systems in the United States. Look for a possible role for Cisco in the financial hub and Apple products on retail shelves.

GOLD OUTPERFORMS U.S. STOCKS

Some extremely important developments have occurred in the gold market. The most significant and earth changing has been the recognition of Gold as a reserve asset alternative, not for commerce, but for foreign reserves asset management. Wealth is scrambling to find security, under siege. As the USDollar and Euro currency have undergone extreme shocks and have withstood the aftermath of stimulus, rescue, and nationalization, with all the attendant shame, Gold has emerged as nobody's counter-party risk, an asset free from debt. The gold rise continues to be resisted by illicit (if not illegal) methods, with naked shorting by the Big Four Banks. Consider the June Gold Call Options as they came due to expire three weeks ago. In predictable but corruptible fashion, vast naked short sales arrived just in time to ruin the value of call options whose predominant strike price was $1200 per oz. The CFTC and its commission Gary Gensler, true to form and loyal to the syndicate they serve, remained asleep at the wheel despite feisty independent cat calls out the window. Ditto for the Silver Call Options due to expire this week, as the silver price has suddenly fallen by $1.00/oz in three days, just enough to ruin more call options held by the idealists among us.

My firm belief is that every magnificent government or central bank Quantitative Ease program, or big bank rescue, or ongoing nationalized sewer payment, the potential price for gold rises $1000/oz and for silver rises $30/oz. The key is nothing is being fixed, no reforms put in place, no bank liquidations of substance occur, just more wasteful monetary creation to serve the syndicate. The cabal is vast, and covers far more than banks.

Individual investors should regard the stock market behavior as evidence of wreckage steeped with great deception. No nominal gains have been registered in ten years, which means a loss in purchase power is compounded at 5% to 7% per year. Almost no real gains have been registered in 40 years. Since 2001, gold has more than quadrupled in price, almost quintupled, while shills and sheisters ply their trade on Wall Street to denigrate it. The propaganda is unending by Wall Street and the USGovt about the nettlesome nature of gold. It pays no yield? Of course it does. Ask Warren Buffet, who earned gains from writing options on silver until he misjudged the rise, was called away, and lied to shareholders about selling too early. Some total knuckleheads actually claim that gold has not kept pace against inflation. They must not comprehend its 400+% gains in the last decade. Wake up, Karl!! In fact, they must be certified morons or genuine paid shills. Gold will continue to outperform all assets, since their trading activity is too deeply intertwined with the currencies and their national debts.

THE HAT TRICK LETTER PROFITS IN THE CURRENT CRISIS.

by Jim Willie CB 
Editor of the “HAT TRICK LETTER” 
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