Sustainable Development: Genocide turned into a Necessity

By LUIS MIRANDA | THE REAL AGENDA | APRIL 30, 2011

Often times, we hear sustainable development and sustainability were originated in the early 70’s and strengthened through the 80’s and 90’s. During any given research effort, most publications allege that the concern to maintain natural resources as tools for current and future generations was born in 1972, when a United Nations Conference in Sweden brought forward three principles: the interdependence of human beings and the natural environment, the links between economic development, social development, and environmental protection and the need for a global vision and common principles. Credit for developing those principles is given to the World Commission on Environment and Development of 1987.

The United Nations is the main enactor of Eugenics, a policy initiated by the founders of the Nazi movement.

Common wisdom portrays the collectivist view that sustainability and sustainable development with policies and initiatives to protect the environment from humanity’s abuses and with this to promote the benefit of the masses. Nowadays, the protection of the environment has become the most luminous spear carried by anyone and everyone, independent of race, social status, age or religion. In fact, environmentalism has become in itself the religion of choice for many. The environmentalist support for sustainability is almost inherently rooted in our lives; more than we even think. It has been applied to economics, construction, community planning, agriculture, security, natality and so on.

Countless meetings were arranged in the past 50 years in order to convince the masses that no future was complete without a sustainable approach to human existence. First, the Club of Rome came up with documents like “Limits of Growth” and “A New Path for World Development” which have as their bastion the movement to globalize the planet and social engineer everything from social values to employment, trade, demographics, politics, economics and so on; all in an effort to deindustrialize the planet and turn it into what predecessor organizations -League of Nations- wanted. Along with think-tanks like the Club of Rome, other equally prominent organizations operate in order to bring a new social, economic and developmental order into place. The United Nations, a child of the globalists who founded the League of Nations with the intention of ‘ending conflict’, has its own list of pro-deindustrialization branches and documents. For example, the United Nations Environment Programme for Development (UNEP), preaches the principles of failed green policies and green economies. The United Nations Conference on Environmental Development of 1992, better known as the Earth Summit, promotes plans like Agenda 21, the United Nations Convention on Biological Diversity which intend and are slowly achieving Kurt Waldheim’s ecofacist dream to depopulate the planet.

Where did modern environmentalism originate?

Although there is plenty of documentation regarding how false environmentalism is linked to the so called “green wing” of the Nazi Party, no one gets into that history in depth. Main line historians and environmentalists usually decide to ignore it and the public that is bamboozled into believing the dogmas of modern genocidal ecology does not know about it. Pertinent questions to ask regarding the Nazi origins of the green movement is, What is its inspiration? What were the goals it wanted to achieve? How did the murdering ideology of the National Socialist Party gave in to what is in appearance an unheard love for nature?

Germany was not only the place where the genocidal policy of sustainability was born, but it was also the land where it became reality. The Nazi germans and its followers adopted many of the green policies we see in modern societies and brought them to prominence. Science and the study of creatures and their environments were first talked about in Germany during the years that preceded the Nazi rise to power. The genocidal nature of environmentalism originated from a demented love for nature. (1)

Nazi thinkers and some predecessors were sure humans had to be equaled to plants, animals and insects in order to have balance in the world. These train of thought has been seen in modern environmentalist minds such as Bolivian president Evo Morales and the promoter of the Gaia theory, James Lovelock, who believe that massive amounts of people must die in order to gain natural balance. Recently, author and environmentalist Keith Farnish used one of his books to call for acts of sabotage and environmental terrorism like blowing up dams and destroying cities to return the planet to its form before the Industrial Revolution occurred. Along with Farnish, other highly respected so-called scientists like NASA’s Dr. James Hansen endorsed this line of thought.

Ernst Moritz Arndt

One of the fathers of what we call today environmentalism is Ernst Moritz Arndt. Together with Wilhelm Heinrich Riehl, Arndt had infinite hatred for the Enlightenment. Both were well-known for their extreme nationalistic views which they used to advance the ideals of the welfare state. These two men, but mainly Arndt was identified as the first ecological thinker. Arndt wrote on an 1815 article that “When one sees nature in a necessary connectedness and interrelationship, then all things are equally important — shrub, worm, plant, human, stone, nothing first or last, but all one single unity.” (2) What separated Arndt’s environmentalist ideas from those of others was that he closely blended his thoughts on respecting nature with xenophobic discourses and entangled them with the very existence of the Germans and Germany. While he defended the environment in most of his writings, he also called for racial purity and damned other races such as the Jews and the French. It was that love for nature and hatred towards the Jews what would later guide the persecution and murder of those who were not Arians.

Wilhelm Heinrich Riehl, a graduate from Arndt’s school of thought made sure his teacher’s work did not wastefully dissipate. In an article dated 1853, Riehl showed his strong opposition to industrialism and said: “We must save the forest, not only so that our ovens do not become cold in winter, but also so that the pulse of life of the people continues to beat warm and joyfully, so that Germany remains German.” (3) He opposed any type of urbanization while using anti-Semitism to approve of peasantry and its way of life. Both Riehl’s and Arndt’s ideas were later adopted by the völkisch movement, which was a mixture of nationalistic populism and mad love for nature. The leaders of the völkischs advocated a move back to the simplicity of living off the land while blaming urban living and rationalism for the environmental destruction. (4) At the core of the hatred was an old but meaningful element that had driven antisemitic groups like the völkischs for a long time: The Jewish people. Why? The Jews were the middle class of the time, and the apparent sick love for nature and the environment included an equally sickening hatred for anyone and anything that endangered that thought or way of life. (5)

After establishing their long sought relation between antisemitism and love towards nature, the völkischs extended their prejudice through the 19th and 20th centuries. The anti-industrialization, anti-jewish type of speech rooted itself along with racial purity and Arian superiority just in time for the rise of the Nazi Party’s trip to power.

Nazi ecology and the link to racism

In 1867, Ernst Haeckel, a German zoologist first used the term “ecology” and linked it to the study of creatures and their environments. Haeckel was heavily influenced by social Darwinism to a point that he became the father of a kind of social Darwinism known as “monism”. He founded the German Monist League, an organization guided by völkisch principles. Haeckel as well as Riehl and Arndt believed in racial superiority and were strongly opposed to social mixing. In addition, he also approved of racial eugenics. His thoughts were the base for what later would be known as the anti-semitic National Socialism in Germany. Indeed, Haeckel became a prominent speaker on racism, nationalism and the german model of imperialism. (6) Towards the end of his life, Haeckel became a member of the Thule Society, an organization that later served as the political base for the creation of the Nazi Party. (7) Haeckel, as the creator of ecology, Riehl and Arndt as his predecessors and other thinkers such as Willibald Hentschel, Wilhelm Bölsche and BrunoWille, get all the credit for tightly threading environmentalism to national socialism, racism, anti-Semitism and the political environmental that we all know took over Germany pre and post World War I.

One of the most revealing facts about ancient and current ecological authoritarianism is the belief by sponsors of this view that humans must be encapsulated in “biological categories” and “biological zones” over which an iron fist technocratic authority must rule. Haeckel said that civilizations and nature should be governed by the same laws. The origin of this way of thinking is a reactionary anti-humanist thought. The Monists, believed humans although not themselves- were insignificant when compared to the greatness of the environment. Similar ideas are seen in modern initiatives sponsored by the Club of Rome, The Carnegie Foundation, The United Nations, NASA, as well as some colleges and universities that are funded by globalists who endorse eugenics for the sake of cleansing the planet. Take for example the text of the United Nations Convention on Biodiversitywhich has been named as the politics and religion of modern environmentalism. Among other goals, the Convention intends to “reorganize” Western civilization by excluding all human activity from 50 percent of the American continent. It wants to divide the land into “bioregions” with “buffer zones” and “corridors”. Under this plan, humans will live in tightly guarded and heavily monitored areas, from which they can never leave. This green globalist agenda is promoted by the United Nations since 1992, when it was officially presented during the first Earth Summit in Rio de Janeiro. The same policies will be implemented in Asia, Africa and Europe.

Ernst Haeckel

Writings from the Carnegie Foundation also commit treasure to the implementation of policies like Agenda 21 and the Convention on Biodiversity. The foundation has expressed pride on ancient practices that resembled mass murder by the powers that be in an effort to cleanse the lands from undesirable people. The Carnegie Institution touted the work of Emperor Ghengis Khan and “validated his work as a “green emperor” due to the fact his actions included the murder of 40 million people. According to its writings, this helped lower carbon emissions and keep the planet cool.

Monists used their anti-humanist sentiment together with the völkisch ideas to discriminate against progress, urbanism and those who thought differently. On his Lebensgesetze (Laws of Life),biologist Raoul Francé, wrote that natural order determines social order. He said racial mixing was unnatural. He is up until today an acclaimed founder of contemporary eco-fascism for “pioneering the ecological movement.” (8) Francé also promoted an alleged connection between environmental purity and ‘racial’ purity. Francé and his disciples claimed that a change from peasant life to modernism would mean the degradation of the race and that the cities were diabolical and inorganic. (9)

By the early years of the twentieth century an ‘ecological’ argumentation, saturated with right-wing political content, had become somehow respected within the culture of Germany. During the turbulent period surrounding World War I, the mixture of ethnocentric fanaticism, regressive rejection of modernity and genuine environmental concern proved to be a very deadly mixture.

The Nazi Environmentalism in Action

Some people see it as a contradiction that modern eugenicists although still pushing for Nazi-style environmentalism also belong to the technocratic corporate elites. This is not a surprise because the elites that supported the Third Reich were also industrialists who, as it usually happens, controlled many segments of the population and the thinking classes. This practice has always born fruits because it guarantees complete control, no matter what the outcome is. Men like Fritz Todt, a heavy weight of the National Socialist movement in Germany as well as Albert Speer, his successor after 1942, were involved in the construction of infrastructure such as the Autobahn, one of the largest projects in the history of engineering in Germany. Todt wanted to build the Autobahn in a way that benefited his class the most, but that at the same time promoted and maintained certain sensitivity towards nature. (10)

“Todt demanded of the completed work of technology a harmony with nature and with the landscape, thereby fulfilling modern ecological principles of engineering as well as the ‘organological’ principles of his own era along with their roots in völkisch ideology.” (11) Just as it happened with Arndt, Riehl and Darré, Todt and his partners had an endless and inseparable bond to völkisch nationalism. Todt said once: “The fulfillment of mere transportation purposes is not the final aim of German highway construction. The German highway must be an expression of its surrounding landscape and an expression of the German essence.” (12) One of Todt’s aides, Alwin Seifert, was the Reich’s advocate for the Landscape. In discharging his official duties Seifert stressed the importance of wilderness and energetically opposed monoculture, wetlands drainage and chemical agriculture. He criticized Darré as too moderate, and “called for an agricultural revolution towards ‘a more peasant-like, natural, simple’ method of farming, ‘independent of capital’.” (13)

The prominent place that nature had within the Nazi Party helped enact the massive industrial and military advancement that enabled Hitler to bully the rest of Europe for a while. The most radical initiatives were created and carried out as they always received the seal of approval by the highest officers of the Nazi state. Another influential member of the Reich was Chancellor Rudolph Hess, who was the green wing’s strong point within the party. Hess’s power in the governmental institutions of the National Socialist regime as he was Hitler’s personal assistant. Many even consider him the Führer’s most trusted man.Hess became a member of the Nazi party in 1920 and rapidly made his way up to the top. He was the second man in the waiting list to take power if Hitler and/or Göring were unable to take on the duty. Any and all new laws that were approved by the government were had to go through Hess’ hands first, before being enacted.

In the photo: Adolf Hitler, Göring and behind him, Rudolph Hess.

In the early thirties, a complete series of laws and ordinances were passed under Hess’ sponsorship. One of those ordinances which closely hits home today is the the foundation of the nature preserves. But perhaps the most successful accomplishment of Nazi environmentalism in Germany was the Reichsnaturschutzgesetz. This nature protecting law established guidelines for safeguarding flora, fauna, and “natural monuments” and restricted commercial access to remaining tracts of wilderness. Similar policies have been written now under United Nations Agenda 21 and the Convention on Biodiversity. Just as it happens with these two documents, the Nazi required local officials to ask for permission to higher authorities before making any alterations in the countryside.Along with the Reichsnaturschutzgesetz, the most important contribution that the Nazis made to modern eugenics and false environmentalism was to integrate mainstream environmentalism into the Nazi enterprise.

Sustainable Development Today

Page 350 of the Global Biodiversity Assessment Report says that livestock such as cows, sheep, goats and horses are not sustainable. People and organizations that support sustainable development claim that animals humans should stop eating meat, because animals pollute the environment. The complete program of sustainability is based on an effort to change human behavior to states that ordinarily humans would not approve or enjoy. This changes in human behavior are mostly brought upon by instigating fear. Fear of global warming, climate change, natural disasters, wars, famine, droughts and so on.

What kinds of things does sustainable development actually want to do? Sustainability and changes in human behavior are not only related to environment, agriculture and pollution. It is a complete package of reforms that will ultimately change societal behavior at a global scale. It is common to find educational programs that sponsor and teach children how to prepare in order to live in a sustainable world. But when the tactics do not work successfully, the globalists in charge of the sustainable agenda, the foundations and organizations financially supported by globalist corporations resort to fear tactics.

Along with the educational systems, the sustainable agenda also acts directly in the economies, health care systems, farming, social and cultural affairs as well as public safety. In the last 50 years we have seen a run to create alliances between corporations and the government, which has resulted in the corporate controlled governmental systems or corporate fascism we all live under. On private property, new ordinances and laws continue to end the right to buy and maintain any kind of land without the auspices of the authorities. That is why property taxes are charged to property owners even though money was paid when the purchase of such land occurred. Under the guidelines of Agenda 21 and the United Nations Convention on Biodiversity, the largest masses of lands, namely national parks, natural reserves and conservation areas have been signed to the United Nations.

The obesity pandemic that ravages the planet up until today, brought upon by massive propaganda campaigns paid for by the food industry was the tool to bring along laws and directives that basically allow the government to tell people what they can eat or drink. In the United States, school principals and boards now do not allow parents to pack their children’s lunches and snacks. In the meantime, new regulations introduced through Codex Alimentarius ban the sale and use of natural supplements and the plantation of food crops in small and medium sized farms, while allowing big agricultural corporations to pollute the environment with genetically modified plants and animals. These kind of policies have caused the suicide of hundreds if not thousands of Indian farmers who have gotten in debt to purchase Monsanto’s genetically engineered pesticide ready corn and cotton seed. Since farmers signed their lives away to Monsanto, crop yields have been significantly lower, and the soils have been completely depleted of all nutrients.

In the social and cultural aspects, political correctness has been massively adopted and dissent is seen as a form of racism and terrorism. Immigration policies have gone from mildly protecting private property and the rights of the individual to sponsoring open borders, fake free-trade agreements that destroy industry and production in the west costing the jobs of millions of people across the continents. Religious criticism of homosexuality and other practices or ways of living is labeled as homophobic, while deep religious beliefs are seen as extremist. Mobility in urban areas has also been touched by the fake environmentalist policies first thought out by the Nazis. Oil speculation and price manipulation by the OPEC cartel makes the cost of transportation to rise exponentially. The same has happened with food prices. Car pooling as well as bus and train commuting is encouraged in order to reduce CO2 pollution, while the elites that beg for the end of industrialization live in lavish palaces and fly around the planet in their fuel-guzzling private jets and yachts.

When it comes to societal safety, the governments, also under policies of sustainable development continue to work on laws to step over the constitutions of the sovereign states they claim to represent and defend. Freedom of speech, freedom of movement and the rights to privacy are continuously violated with the establishment of a techno-military industrial complex that monitors everyone’s moves, financial records, behaviours, health, habits, politics, religious beliefs and so on, all in the name of security.

What is the ultimate goal of the current sustainable development policies? Population reduction. Sustainable Development is indeed a plan to be applied for the length of human existence. It is a plan created by someone else to apply it to you, your children, grandchildren and great-grandchildren. The belief behind the supposed need to massively reduce the planet’s population is Thomas Malthus’ mistaken idea that population growth outpaces food availability. He thought overpopulation occurred due to reductions in mortality rates and that the world would be out of food by 1890. He then recommended to kill the poor, the old and the sick, and leave the rest to die of hunger. Malthus’ ideas were picked up more recently by Paul Earlich in 1968. Earlich said that irresponsible reproductive behavior would leave the planet with no food in the 1970’s. This imaginary crisis has proven false every time the globalists schedule another date for it to happen. Calculations of the Population Research Institute reveal that today the world’s population can live comfortably with enough food in an area the size of the American state of Texas.

The truth is that at the current natal rate, many countries in Europe and Asia are experiencing the problems related to an aging population which is not being properly replaced by new citizens. In North, Central and South America, governments struggle to support their traditional welfare systems due to the fact that more people are retiring and less people are contributing to the coffers of the central governments, social security and health care programs. Ironically, population growth will become stable naturally -that is it will stop growing and begin to decrease- once the sum of all humans gets to about 9 billion. Learn more about the science of population growth here.

Well, so what if there is enough land mass to leave? Is there enough food for everyone? If you are a believer of only ‘official’ information an statistics, it so happens that the very own United Nations Food and Agriculture Organisation as well as the World Food Programme agree that there is currently enough food on the planet to feed everyone. The problem is, not everyone has access to food. Why? Several reasons. Price speculation, using food such as corn and sugar cane to produce inefficient fuels and of course artificially created food scarcity. Modern cultivation techniques would even allow to plant crops in the most arid areas of Africa. Many believe that the giant continent may be able to feed the whole world if such techniques are applied with due diligence. So, why are more people going hungry everyday? Simply put, poverty, conflict and poor agricultural infrastructure in countries where those hungry people live. War is one of the main causes of crop destruction. And who are the sponsors of war and conflict? The military industrial complex controlled by the same globalists who want us to be green and friendly to the environment. Reducing the number of people on the planet would not solve an overpopulation problem, if it existed. That is just another fear tactic used by the globalists who up until today perpetuate the Nazi dream. For a detailed explanation on how the United Nations hides its eugenics programme under supposed initiatives to promote reproductive health, end poverty and decrease the appearance of disease, watch the four-part report (Part 1) (Part 2) (Part 3) (Part 4)

Sources for this article include:

(1) Raymond H. Dominick, The Environmental Movement in Germany: Prophets and Pioneers, 1871-1971

(2) Der Begriff des Volksgeistes in Ernst Moritz Arndts Geschichtsanschauung, Langensalza, 1914.

(3) Wilhelm Heinrich Riehl, Feld und Wald, Stuttgart, 1857, p. 52.

(4) George Mosse, The Crisis of German Ideology: Intellectual Origins of the Third Reich, New York.

(5) Lucy Dawidowicz, The War Against the Jews 1933-1945, New York, 1975, pp. 61-62.

(6) Daniel Gasman, The Scientific Origins of National Socialism: Social Darwinism in Ernst Haeckel and the German Monist League, New York, 1971, p. xvii.

(7) Gasman’s thesis about the politics of Monism is hardly uncontroversial; the book’s central argument, however, is sound.

(8) See the foreword to the 1982 reprint of his 1923 book Die Entdeckung der Heimat, published by the far-right MUT Verlag.

(9) Mosse, The Crisis of German Ideology, p. 101.

(10) Bramwell, Ecology in the 20th Century, p. 197.

(11) Karl-Heinz Ludwig, Technik und Ingenieure im Dritten Reich, Düsseldorf, 1974, p. 337.

(12) Quoted in Rolf Peter Sieferle, Fortschrittsfeinde? Opposition gegen Technik und Industrie von der Romantik bis zur Gegenwart, München, 1984, p. 220.

(13) Dominick, “The Nazis and the Nature Conservationists”, p. 529.

Russian President: New World Order with new Global Currency

By Luis R. Miranda
The Real Agenda
June 19, 2010

As many other puppet presidents have done it before, Russia’s Dmitri Medvedev is taking his opportunity to call for a new world

Russian President, Dmitri Medvedev

order and to push the Russian currency up, as the new reserve paper.  “What had seemed untouchable has collapsed. The bubbles that created the illusion of flourishing economies have burst,” said the Russian president in St Petersburg.  As he opened Russia’s annual economic forum, Medvedev said the times when western corporations dominated the economy had ended and the new interest in Russia was a sign that the world was changing.

“For Russia this situation is a challenge and an opportunity.  And we should use it to build a modern, flourishing and strong Russia … which will be a co-founder of the new world economic order.” he added.  Talking in front of many businessmen from around the world, the Russia leader followed the steps of other governments and presidents as well as of non-governmental institutions.  In the past, George H.W. Bush, Tony Blair, Gordon Brown, Mahmoud Ahmadinejad and Barack Obama, among others, have called for the formation of a new world order.  In fact, all those leaders have cited the creation of a centralized global entity as the only way to cure the many illnesses the world suffers from today.

Together with governments, there are supranational institutions such as the World Bank, the International Monetary Fund, the European Central Bank and their respective leaders, who have echoed the same calls for the creation of a new global order.  This order would have the power, will amass the resources of the planet and will decide how to use them.  The plan also includes the creation of a single monetary policy to which all countries will have to submit to.  The adherence to such policy will enable the countries to receive loans and aid packages that will make them more dependent on the foreign centralized organization, and less dependent on their own Constitutions and laws.  In fact, in the world seen through the eyes of people like Medvedev and the other power men, there is no need for nationality, sovereignty or identity.

Russia has already taken significant steps to aid the lifeline of the new world order -which has existed for many years now-.  The country will introduce a policy of zero taxation on capital gains which will indeed allow the free flow of monies in and out of, much like it happens in corrupt countries where this policy aides and enables money laundering through the banking system.  This would transform Russia into the new United States when it comes to moving large amounts of money coming from all places -drug trade, arms trade, slave trade- to circulate and make its way across the world.  Of course Medvedev did not present it like that.  Instead, he said his policy would allow companies working on long-term investments.  Russia, he said, “was improving the legal system to offer better protection for businesses against the long arm of bureaucracy.”  In other words, crime, of the kind recently experienced through Wall Street banks around the world will have a safe heaven in Russia.  What Mr. Medvedev’s words mean is that all the policies that allowed the bankers to suck countries dry of their resources will also exist in the world order he dreams about, where Russia is the new leader and he’s the new Al Capone.  Limits to bureaucracy means zero regulation or a perfect environment for the corporations to run their shady Ponzi schemes.

The Russian president also talked about something that would make any corporate businessman smile, even in the rainiest day.  Russia has completed the process of simplifying migration procedures, so that workers can go in the country; or better, Russia just like China will allow corporations to pay some of the lowest wages to its citizens in exchange for long working days with no benefits and no rights.  Again, it’s clear he did not present it this way.  He said Russia had changed to attract “highly-qualified specialists” from the financial and technology sectors.  “The state should not tear down the apples from the tree of economics,” he said.

Medvedev complemented his speech on a new world order by forcefully attacking the dollar and claiming that it was time for a new reserve currency.  “Only three, five years ago it seemed like a fantasy” to create a new reserve currency. Now we are seriously discussing it.”  He does not seem to be alone in that ride.  It seems China is up to the challenge as well.  In the meantime, Bank of Israel Governor Stanley Fischer added his voice to the Russian’s, but from a very different point of view, one that is rarely heard.  He said: “New reserve currencies don’t emerge by fiat. They emerge as countries change.”  A fiat currency is paper or electronic  money that is not backed up by a nation’s industry or production, but by an inflated system of blind trust on what a piece of paper says it is worth.

Apparently, both Russia and China think it is time for the East to drive the world and its markets.  “We really live at a unique time, and we should use it to build a modern, prosperous and strong Russia, a Russia that will be a co-founder of the new world economic order,” he said.  The problem with Medvedev’s vision is that his plan will not work, at least not for as long as he wants.  Although he intends to build something new, better and different, he plans on using the same old policies that brought us to the disaster he so clearly criticizes.  He wants prosperity, a modern economy and a strong Russia, but he wants zero regulation, a centralized dictatorial government and no sovereignty.  Maybe he forgets that Capitalism, the real Capitalism, was born from free independent nations that based their development on the use of their resources to produce quality goods that benefited the world.  Instead, he wants a global economy filled with cheap, slave-made products that need to be changed every few months.  He wants the best workers, but will follow the same old low-paying policies that maintains Asia’s and Latin America’s people in a continuous feudal model of development.

“If the world depended completely on the dollar, the situation would have been more difficult,” Medvedev reminded the audience.  So why does he want a single global currency, then?

US faces same problems as Greece

UK Telegraph

Mervyn King, Governor of the Bank of England, fears that America shares many of the same fiscal problems currently hauntingUSEurope. He also believes that European Union must become a federalised fiscal union (in other words with central power to tax and spend) if it is to survive. Just two of the nuggets from one of the most extraordinary press conferences I have been to at the Bank.

What with all the excitement yesterday over our new Government, I never had time to remark on the Inflation Report press conference. Most of our attention was on what King said about the Government’s fiscal plans (a ringing endorsement). But, as Jeremy Warner has written in today’s paper, it was as if King had suddenly been unleashed. Bear in mind King is usually one of the most guarded policymakers in both British and central banking circles. Not yesterday.

It isn’t often one has the opportunity to get such a blunt and straightforward insight into the thoughts of one of the world’s leading economic players. Most of this stuff usually stays behind closed doors, so it’s worth taking note of. And I suspect that while George Osborne will have been happy to hear his endorsement of the new Government’s policies, Barack Obama and the European leaders will have been far less pleased with his frank comments on their predicament.
The transcript and video are online at the Bank’s website, but below are the extended highlights, all emphasis mine. Well worth checking out.

America, and many other large economies including the UK, share some of the same problems as Greece with its public finances:

Every country around the world is in a similar position, even the United States; the world’s largest economy has a very large fiscal deficit.And one of the concerns in financial markets is clearly – how will this enormous stock of public debt be reduced over the next few years? And it’s very important that governments, both here and elsewhere, get to grips with this problem, have a clear approach and a very clear and credible approach to reducing the size of those deficits over, in our case, the lifetime of this parliament, in order to convince markets that they should be willing to continue to finance the very large sums of money that will be needed to be raised from financial markets over the next few years, at reasonable interest rates.

On why Europe will have to become a federalised fiscal union:

I do not want to comment on a particular measure by a particular country, but I do want to suggest that within the Euro Area it’s become very clear that there is a need for a fiscal union to make the Monetary Union work. But if that is to happen there needs to be also a mechanism to enable other countries that have lost competitiveness to regain competitiveness. That requires actions, probably structural reforms, changes in wages and prices, in the countries that need to regain competitiveness. But it also needs a solid and expansionary state of domestic demand in the stronger economies in Europe.

On the deficit:

The most important thing now is for the new government to deal with the challenge of the fiscal deficit. It is the single most pressing problem facing the United Kingdom; it will take a full parliament to deal with, and it is very important that measures are taken straight away to demonstrate the seriousness and the credibility of the commitment to dealing with that deficit.

Why it is right that the Government wants to cut spending as soon as this year:

We see the recovery beginning to take place, and we expect that the pace of that recovery will pick up. But we’ve also seen the market response in the past two weeks, where major investors around the world are asking themselves questions about the interest rate at which they are prepared to finance trillions of pounds of money that will need to be raised on financial markets in the next two to three years, to finance government requirements around the world. And that I think has been a sobering reflection of what can happen if you don’t make very clear at the outset – I think markets were not expecting any action before the election. After the election they need and they want a very clear, strong signal and evidence of the determination to make it work.

And I think that it’s quite difficult to make credible a commitment to fiscal consolidation if all the measures are somehow in the future. You need to start and get on with it….

More…

A Financial Conflagration of Immense Proportions

Fiat money buckling, an inflationary depression, years of reckless spending, Greek debt unpayable, Euro zone in jeopardy, a loss of integrity in US markets, criminal charges for Goldman Sachs, side pockets a new hedge fun trick, Banks on subprime offensive, Fed works the printing presses overtime…

International Forecaster

America and the world face a financial conflagration of immense proportions. The world of fiat money and massive credit is bucklingfinancial crisis under the pressure of unpayable debt. Each day the safe haven of gold and silver related assets become more attractive. We ask where else do you go for safety? A conflagration is a fire out of control and that is exactly the conditions the world faces today. The inflationary depression has smoldered for 14 months and it will soon accelerate.
For the last 15 years the world has lived far beyond its means especially the US, UK and Europe and as we all know that cannot continue indefinitely. The federal government continues to hire when it should be firing. Having lost 80% of our industrial base we struggle in a service economy that cannot service 300 million plus people, never mind supply exports to offset the cost of imports that we no longer manufacture. We now supply indefinite unemployment benefits, which in reality cannot go on forever. The fiscal debt spirals ever higher and the Fed creates money and credit with no end in sight, which devalues the dollar. Taxation on individuals and businesses continues relentlessly higher. This is the way of corporatist fascism. This is now the way of America.
Officially the destruction of America began on August 15, 1971 when the US abandoned the gold standard. The Council on Foreign Relations said years ago, that 2012 would be the year for the implementation of world government.
In Europe we see the manifestations of years of reckless spending in Greece., a nation that will have to be bailed out by the IMF and other European countries, especially by Germany that holds much of the worthless bonds issued by Greece. Greek bonds are now yielding 17%. Such a premium will not save the economy. The debt service is unpayable. Greece should leave the euro zone; reissue the drachma and default, now. Their position is untenable. We said this on Athens International, French International, BBC worldwide and Deutsch Welle radio a few weeks ago. The Greeks certainly are not blameless, but 80% of the blame lies with the bankers. The outcome is Inevitable, whether it’s now or 1-1/2 years from now. These problems affect all euro zone nations and all will suffer accordingly. For the time being most of the damage to the euro is over, but in time the euro will break up, probably in the next two years. As a result official EU unemployment will hit 14%.
We do not believe the powers that be want Greece to bite the dust just yet, as we pointed out previously. We believe they envision a simultaneous collapse of many nations and multilateral devaluation and debt default. This is their style. This way they believe they can control things and cover up one of the biggest transfers of wealth and power in history. The elitists expect to then usher in world government, as they create another world war.
Those who recognize what the elitist plays are can safeguard their assets and perhaps become very wealthy in that process. Those who ignore the signs and warnings are doomed to lose most everything. Political solutions won’t work now and they won’t work later.
The life of the euro zone and the EU, which consistently have been wrong, at least for now, are trying to make us believe all is well. All is not well. We are told over and over again the crisis won’t spread and it will spread and is spreading. Borrowing costs are already rising in Portugal, Spain, and Germany and throughout Europe.
The euro zone is in jeopardy as Greek contagion affects Portugal and Spain. Sovereign debt is the new subprime paper. We could perhaps see a domino effect as bond yields use in the weaker countries and eventually spread to the stronger European countries, and to the UK and US. The problem will eventually affect the entire world if it rolls out that way. Such a situation could cause a crisis of confidence, which would most certainly drive gold and silver prices higher. Bond markets would already have been affected and world stock markets would be falling. We are perhaps seeing that already with a topping in the US and European equities suffering their largest losses this year. In Europe, Greek bond losses are onerous. A bailout of Greece will probably come and their debt rescheduled. If the bailout doesn’t come watch out. The fallout of a Greek default, the exit from the euro, and the reintroduction of the drachma could force the other 18 nations in trouble to the edge if not into insolvency. These ideas are what we expressed this week in an interview with Greece’s largest newspaper. In addition we could see the dumping of PIIGS bonds and stocks. This could cause major losses and freeze markets. It could also lead to the demise of the euro zone and deeply damage the EU. Another unexpected outcome could be the withdrawal of Britain from the EU followed by the imposition of tariffs on goods and services by the UK, which would be followed by the US.
Another aspect to the Greek problem is that rating cuts are going to force Greek banks to post more collateral, which would force them into a liquidity trap and that could spread the contagion through the global financial system. If more collateral is not forthcoming the banks’ bonds would be downgraded. This also could cause Greek banks to sell assets, putting more pressure on an already weak system. Is it no wonder that gold and silver prices are rising?
In spite of all this the euro zone has the fiscal capacity to backstop banks within the region and to support the PIIGS. The question is will they? Germany seems to be in no hurry to do so. Greece needs loans or to float bonds in the amount of $350 billion over the next five years, which is a tall order. The present approach is to solve this year’s problems of some $80 billion, but bondholders are looking out five years. They are saying to themselves what is going to happen next year and up to five years from now. One good thing is if the Greeks stay in the euro zone they cannot monetize debt away and ruin bond values. Seventy percent of Greeks oppose dealing with the IMF, or accepting loans from the EU. We ask then what do they propose? This is why many investors are throwing their hands in the air and opting to buy gold throughout Europe. No matter which way Greece takes gold is really the only good hedge against a devaluing euro. Gold is not only a hedge against the euro, but also against commodity inflation. A recovery, if it did take place in Europe, would cause higher inflation as well. Causing conflict on the inflation issue is the ECB’s opinion that there is no inflation, when even officially there is. Germany had best not press Greece too hard, because if Greece leaves the euro it would rock global markets. We believe a deal will be done and that will temporarily solve the problem, perhaps for 1 or 1-1/2 years. That is when all the financial derelicts will be taken down together.
We in switching gears must look at the sovereign debt problems of many nations, the US as well. We see a fierce loss of integrity in US markets, due to the play unfolding in the US House and Senate via inquiry and actions by the SEC against Goldman Sachs and others. The US is not Greece, but it has many similar problems. These terrible events unfolding have to eventually reflect lower dollar values as well as a lower market, higher interest rates and higher gold and silver prices. It is apparent and transparent that Goldman has been charged civilly by the SEC in order to protect the firm and its employees from criminal charges, to divert attention away from the passage of a new financial regulatory bill that would make the Fed a despotic power and to make the administration and the Democrats look good going into the November election. Then there is the ongoing mortgage fallout and all the Fed and Treasury giveaways. Making matters worse is the refusal to answer important questions by the Fed for spurious reasons. Then worse yet the SEC told Goldman they were going to be charged two weeks before the announcement was made.  Sixty percent of the toxic waste was sold in Europe, mostly to Germans and they are not happy about that. We cannot understand why the Germans did not sue 2-1/2 years ago, and still haven’t.   More…