Archive | November 28, 2011

Has the German Set-up Failed or has Germany Been Set-up!

Has the German Set-up Failed or has Germany Been Set-up!


By Paul Craig Roberts*

November 26, 2011  — On November 25, two days after a failed German government bond auction in which Germany was unable to sell 35% of its offerings of 10-year bonds, the German finance minister, Wolfgang Schaeuble said that Germany might retreat from its demands that the private banks that hold the troubled sovereign debt from Greece, Italy, and Spain must accept part of the cost of their bailout by writing off some of the debt. The private banks want to avoid any losses either by forcing the Greek, Italian, and Spanish governments to make good on the bonds by imposing extreme austerity on their citizens, or by having the European Central Bank print euros with which to buy the sovereign debt from the private banks. Printing money to make good on debt is contrary to the ECB’s charter and especially frightens Germans, because of the Weimar experience with hyperinflation.

Obviously, the German government got the message from the orchestrated failed bond auction. As I wrote at the time, there is no reason for Germany, with its relatively low debt to GDP ratio compared to the troubled countries, not to be able to sell its bonds. If Germany’s creditworthiness is in doubt, how can Germany be expected to bail out other countries? Evidence that Germay’s failed bond auction was orchestrated is provided by troubled Italy’s successful bond auction two days later.

Strange, isn’t it. Italy, the largest EU country that requires a bailout of its debt, can still sell its bonds, but Germany, which requires no bailout and which is expected to bear a disproportionate cost of Italy’s, Greece’s and Spain’s bailout, could not sell its bonds.

In my opinion, the failed German bond auction was orchestrated by the US Treasury, by the European Central Bank and EU authorities, and by the private banks that own the troubled sovereign debt.

My opinion is based on the following facts. Goldman Sachs and US banks have guaranteed perhaps one trillion dollars or more of European sovereign debt by selling swaps or insurance against which they have not reserved. The fees the US banks received for guaranteeing the values of European sovereign debt instruments simply went into profits and executive bonuses. This, of course, is what ruined the American insurance giant, AIG, leading to the TARP bailout at US taxpayer expense and Goldman Sachs’ enormous profits.

If any of the European sovereign debt fails, US financial institutions that issued swaps or unfunded guarantees against the debt are on the hook for large sums that they do not have. The reputation of the US financial system probably could not survive its default on the swaps it has issued. Therefore, the failure of European sovereign debt would renew the financial crisis in the US, requiring a new round of bailouts and/or a new round of Federal Reserve “quantitative easing,” that is, the printing of money in order to make good on irresponsible financial instruments, the issue of which enriched a tiny number of executives.

Certainly, President Obama does not want to go into an election year facing this prospect of high profile US financial failure. So, without any doubt, the US Treasury wants Germany out of the way of a European bailout.

The private French, German, and Dutch banks, which appear to hold most of the troubled sovereign debt, don’t want any losses. Either their balance sheets, already ruined by Wall Street’s fraudulent derivatives, cannot stand further losses or they fear the drop in their share prices from lowered earnings due to write-downs of bad sovereign debts. In other words, for these banks big money is involved, which provides an enormous incentive to get the German government out of the way of their profit statements.

The European Central Bank does not like being a lesser entity than the US Federal Reserve and the UK’s Bank of England. The ECB wants the power to be able to undertake “quantitative easing” on its own. The ECB is frustrated by the restrictions put on its powers by the conditions that Germany required in order to give up its own currency and the German central bank’s control over the country’s money supply. The EU authorities want more “unity,” by which is meant less sovereignty of the member countries of the EU. Germany, being the most powerful member of the EU, is in the way of the power that the EU authorities desire to wield.

Thus, the Germans bond auction failure, an orchestrated event to punish Germany and to warn the German government not to obstruct “unity” or loss of individual country sovereignty.

Germany, which has been browbeat since its defeat in World War II, has been made constitutionally incapable of strong leadership. Any sign of German leadership is quickly quelled by dredging up remembrances of the Third Reich. As a consequence, Germany has been pushed into an European Union that intends to destroy the political sovereignty of the member governments, just as Abe Lincoln destroyed the sovereignty of the American states.

Who will rule the New Europe? Obviously, the private European banks and Goldman Sachs.

The new president of the European Central Bank is Mario Draghi. This person was Vice Chairman and Managing Director of Goldman Sachs International and a member of Goldman Sachs’ Management Committee. Draghi was also Italian Executive Director of the World Bank, Governor of the Bank of Italy, a member of the governing council of the European Central Bank, a member of the board of directors of the Bank for International Settlements, and a member of the boards of governors of the International Bank for Reconstruction and Development and the Asian Development Bank, and Chairman of the Financial Stability Board.

Obviously, Draghi is going to protect the power of bankers.

Italy’s new prime minister, who was appointed not elected, was a member of Goldman Sachs Board of International Advisers. Mario Monti was appointed to the European Commission, one of the governing organizations of the EU. Monti is European Chairman of the Trilateral Commission, a US organization that advances American hegemony over the world. Monti is a member of the Bilderberg group and a founding member of the Spinelli group, an organization created in September 2010 to facilitate integration within the EU.

Just as an unelected banker was installed as prime minister of Italy, an unelected banker was installed as prime minister of Greece. Obviously, they are intended to produce the bankers’ solution to the sovereign debt crisis.

Greece’s new appointed prime minister, Lucas Papademos, was Governor of the Bank of Greece. From 2002-2010. He was Vice President of the European Central Bank. He, also, is a member of America’s Trilateral Commission.

Jacques Delors, a founder of the European Union, promised the British Trade Union Congress in 1988 that the European Commission would require governments to introduce pro-labor legislation. Instead, we find the banker-controlled European Commission demanding that European labor bail out the private banks by accepting lower pay, fewer social services, and a later retirement.

The European Union, just like everything else, is merely another scheme to concentrate wealth in a few hands at the expense of European citizens, who are destined, like Americans, to be the serfs of the 21st century.


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The Might of Ignorance Directed at Iran

The  Might of Ignorance Directed at Iran


By Hwaa Irfan

As Germany’s authority in Europe slips as it is too pulled into the economic vacuum of the Euro-debt crisis, we are reminded how vulnerable we all are when we operate in isolation. Europe knows that it cannot function alone with the resources of developing countries, and yet Europe and the U.S. still finds it pretty impossible to switch from their plunder and steal mode of colonialism. The crisis has been exacerbated by enforcing a rule of law over all members of the Eurozone, which instead of saving it is, is burying it. It is this same ignorance, that if you do not think and behave as I do we will make you suffer either directly or indirectly, and it is this same ignorance, that is being hurled towards Iran.

Iran stands as a minority outside of the growing madness of global governance. Instead of listening to a different voice unconditionally, instead of seeing what other ways there are to approaching a problem to enhance global balance all non-military means are being employed to punish Iran. The same accusations lobbed at Iraq by the U.S. friendly head of the IAEA are transparent,  as the same global economic system threatens to pull in anyone country that is linked into the grid, instead of behaving like grown men with a conscience, they are behaving  like vengeful teenagers with an angst. With all weapons of modern diplomacy exposed, they intend to continue business as usual through a process of bullying.

Their markets are saturated, with consumer power, unwilling or unable to consume anymore, but instead of building healthy reciprocal relations with potential new markets, and natural resources, they set out to inflict spite. And what if they get reprieve by getting rid of whatever leader they choose, or forcing a country into submission, for the reprieve would be temporary access and exploitation of a way of life that even their reports state is unsustainable, the evidence of which will be proven with Libya.

But with their subconscious shut off, they are only able to act mechanically, and so it is mechanically Western leaders entice their ‘psyops’ operation,  by cutting off Iran from Canadian, U.S., and U.K. banking operations. It might have slipped their minds that apart from Canada, these countries have a cash flow problem, but the unification of the Canadian and U.K. stock markets might offer yet a temporary reprieve.  When Government House leader Peter van Loan stated the reason being that:

“The regime in Iran poses a significant threat to regional and global peace. We will do what it takes to isolate the regime and to minimize the risk that it poses to global peace,”

An agreed statement repeated by U.Ks Chancellor George Osbourne, are they cognizant of the fact that the real threat is facing them when they look in the mirror as creators of the current global mess!

Only Canadians who have family members in Iran will be able to send money . The sanctions are unethical, in that payments outstanding for transactions for exports and imports and related services will be suspended which is one way of increasing their money supply like the Libyan money ‘held in overseas accounts’!

The excuse is the same Big Lie hurled at Iraq – the nuclear weapons. How can one negotiate with a people whose imagination tells them that something exists when it does not?  If Iran was to take on India’s position that nuclear weapons are necessary to defend its self against U.S. strategies then one would not be surprised, because with the constant accusations it might as well with the dozens of  U.S. spies that have recently been arrested in Lebanon and Iran.

There is no currency in the colonial way of doing business; this at least is the lesson that the West has to learn. It may get away with it for a while longer; after all it is the method that the current global economic system is built upon which is the very reason why it is falling apart in front of their very eyes! SCAF tried to sideline the Muslim Brotherhood on the basis that the West would not like them to be in power, but look what happened in Palestine in the case of legally elected Hamas. The corporate media has silenced the voices of the Libyans in favour of the human rights abuses of the rebels transferred to Gadaffi, but still continuing after his death.

The Western powers have lost all sense of democracy, and are no better than the very dictators they malign when they cannot get their own way. Too much abuse and exploitation for far too long has to come to an end sooner if not by the forces of nature and that which they have reaped!


Payton, L. “Iran Cut Off From Canada, U.S., U.K. Banking Systems.”

Barak, R. “Report: Dozens Of U.S. Spies Captured In Lebanon and Iran.”

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