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European Leaders Negotiate How to Collapse Europe

Herman van Rompuy Calls for less sovereignty for remaining nation-states.

By LUIS MIRANDA | THE REAL AGENDA | SEPTEMBER 9, 2012

Flashback: Herman van Rompuy, President of the European Union: “Homogenous Nation States are Dead”.

The collapse of the Euro and the European Union is not a result of the financial crisis created by the bankers. In fact, the crisis was created as a way to justify the banker acquisition of independent nation states in Europe, America, Africa and Asia, among others.

After reading what van Rompuy’s intention is in multiple occasions — to end nation-states as we know them — it is clear that countries will not be strengthened as a result of any measure adopted by the EU, the European Central Bank, or the IMF. As we speak there is a fight inside the banking hierarchy, whose members are discussing what is the best way to collapse the world’s financial system, beginning with the Euro zone to later spread the collapse to the Americas.

The EU president has not shied away from his goal to destroy nations and to submit them to unelected governing bodies. “The time of the homogenous nation state is over,” Mr he Rompuy said, adding that “in every European member state, there are people who believe their country can survive alone in the globalised world. It is more than an illusion — it is a lie.” The firmness of this statement can only come from a man who behind the scenes knows all the details of the planned implosion of the world’s financial system.

Since last week and over the weekend, European leaders have met to determine what is the best way to bring down the Euro zone while consolidating power over the independent nation-states as they’ve done with Greece. After the European Central Bank admitted it will buy sovereign bonds from indebted nations, the International Monetary Fund (IMF) launched itself like the financial vulture it is to discuss what it believes must be its role in the mechanism to destroy the European economy. Meanwhile, Spanish Prime Minister, Mariano Rajoy, who has not officially accepted the conditions given by the ECB, entered a race to beg for softer conditions before he hands his country over to the ECB and IMF.

“The decision of the ECB to provide funds to Spain, pretty much obligates the country to request a second bailout,” said ECB head, Mario Draghi. The ECB has already expressed its intention to buy unlimited amounts of debt from Spain and other nations who may need it, so it is expected that Rajoy will not let the opportunity pass by without requesting a complete bailout of the country. Spanish diplomats have gone to Brussels, Frankfurt, Washington and Madrid to try to negotiate better conditions should the country request the bailout this Fall.

But according to Brussels’ insiders, not even a financial bailout will be a strong safety net for Spain, because it is clear that the country will not be able to meet its goals to cut the deficit due to the depression now taking place in Europe and the failure of the Spanish government to increase its revenues. So the so-called rescue or bailout is nothing else than a smoke screen to facilitate the handover of Spain to its creditor, the European bankers.

Meanwhile, the IMF chief, Christine Lagarde, has said the organization is interested in playing a relevant role in the design and monitoring of the European Central Bank plan to buy bonds issued by euro zone governments. Lagarde stressed that the measures recently announced by the ECB President Mario Draghi, “pave the way forward”, but pointed out that “the priority is to be implemented in a coordinated manner.” “We are prepared to help and assist in the design and implementation of any programs that should be part of the solution,” said Lagarde, who has said that her institution is willing to participate “actively” in the design and development of the program debt purchase of euro zone countries.

Both Herman van Rompuy and Italian Prime Minister Mario Monti have called a meeting with other European leaders to find common ground to “defeat the populist ideas that have sought to destroy the Euro,” they said. “The integration of the EU is an ongoing problem,” said Herman van Rompuy, “again dealing with the financial and social problems (…) so I welcomed the idea of ​​President Monti to hold a special summit on the future of European unity,” said Van Rompuy.

The president explained that the European Commission is aware of the criticisms and oppositions that exist right now, but emphasized “the tremendous efforts of all European countries and institutions made ​​with unprecedented solidarity”. Mr. van Rompuy probably means solidarity towards the bankers, not in favor of the European population, which despite suffering the largest rates of unemployment in recent history, has had no direct help from the EU leaders. In fact, the first initiatives adopted by EU governments were to cut spending on social programs, salaries, pensions and other programs that generally alleviate the burden on the largest portion of the average european citizen.

It is expected the Spain will expand its campaign to obtain better conditions previous to its request of a bailout during the meeting of finance ministers of the EU. It is expected that both Spain and Greece will clear the timing of the petition as the appetite of European partners to facilitate (or not) things mild conditions (or not). “That’s a conversation that should occur not between Spain and the ECB, but between Spain and the other members of the euro zone,” said Benoit Coeuré, French director of the ECB, in an interview on France Inter.

Herman van Rompuy did not shy away last week about what the final outcome of all of these negotiations must be. Van Rompuy said that by December the project for a new European architecture will have been submitted. This project will be undertaken by the ECB and the European Commission and will include four pillars connected to each other: a banking union, a fiscal union, an economic union and a deeper political union.

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Draghi brings in the ‘goodies’ to capture Spain and Italy

By LUIS MIRANDA | THE REAL AGENDA | SEPTEMBER 7, 2012

Mario ‘Super Mario‘ Draghi has unloaded his bag of goodies after the European Central Bank agreed to acquire the European continent. The line of states begging for a ‘rescue’ is headed by Spain and Italy, with Portugal and France waiting on the wings.

The European Central Bank announced the already expected purchase of sovereign debt to keep the financial collapse under control so that the bankers have enough time to absorb all free nations that are unable to pay their obligations.

As previously reported on this publication, the details of the program are murky, sketchy and as vague as possible to let the bankers make decisions as they please based on conditions on the ground. One detail was made clear, however. The ECB will have the power to buy unlimited amounts of sovereign bonds, the instruments issued by governments to cash their debts.

But before the ECB sends any money to Spain, Italy or any other nation in distress due to the unpaid liabilities, countries will have to review and accept a list of conditions that the bankers themselves have written, and under which the nation-states will have no flexibility. For example, countries in need of a bailout must officially request it to the ECB. Should the country decide to abandon the ‘rescue’ mechanism, the ECB is already threatening with stopping the purchases of bonds and sell the bonds that have been already acquired.

The positive answer from the ECB has already encouraged the artificially run financial markets, even though none of the nations that would eventually accept the conditions has actually requested the bailout. The risk premium of Spain has fallen sharply from highs of 638 points in the second half of July. The downgrade of the returns required of Spanish debt has been more pronounced in shorter maturities up to three years, as these are the titles that will focus on the operations of the issuing bank. Today, the Ibex 35 gained 4.91% and the risk premium has fallen below 450 basis points.

Once the countries request the ‘rescues’ — either for a full or partial bailout — the ECB will only accept the request if the country complies with all of the conditions imposed by the European bankers which will be provided through memoranda to each individual nation. The ECB  said that the bond purchases of bonds with maturities of between 1-3 years will be made with no quantity limits. “The amount will be adequate to achieve our goals,” said Draghi in a statement a month ago.

The ECB also waives its preferred creditor status, something that frightened investors. Moreover, the liquidity created by these direct sterilized monetary transactions (the withdrawal of an amount of cash equal to the purchase of bonds), will be done as it was with the previous program. Purchases may be extended to other countries already bailed out, such as Ireland and Portugal, to the extent that they recover their market access.

The ECB had already bought debt of other countries since May 2010 and began buying Spanish and Italian debt in August 2011. However, these purchases stopped earlier this year, as the bank decided to rescue the banks instead. The decision by the bank to bailout the banks caused the vicious debt problem to get worse as the increase in debt and insolvency of financial institutions and nation-states demanded even more money. Now, the bank has decided to come back with more cash to keep on feeding the beast, instead of killing it.

It will just a matter of time before the bailout of nation-states becomes as insufficient as the one given to the banks back in 2011. What will the ECB do then to slow down the collapse? Free money or ‘rescues’ will have proven ineffective.

As for what will Spain and Italy do, what does a crack addict do when you offer him a pipe and the ‘springly’?

Spain’s debt will increase by 23,000 billion Euros until the end of 2012

By LUIS MIRANDA | THE REAL AGENDA | AUGUST 6, 2012

You are not going crazy. 23,884 billion euros is approximately what Spain’s debt will be in the short term should the country continue to adopt the European banking policies. The reason for this is that the current and soon to come newest austerity and indebtedness measures will prolong the country’s painful crawl towards bankruptcy while inflating the government’s debt to more than 23,000 billion euros. That’s why the actions taken so far by Mariano Rajoy’s led government beg the question about what will be the realistic impact of a financial bailout of the Spanish government, that right now is estimated to be at 300 billion euro. The answer is that any impact will simply get Spain more in debt that it is today.

As it happened in Greece, the negotiation of debt for both the banking system and the Spanish government are just window dressing moves to extend the losses and accumulate power in the hands of the banking elites, to which we are all slaves to, according to the main stream media. The above mentioned debt is the debt that Spain will have to incur into to finance its government for the remaining of 2012. More debt will be added to this in the long term, if the European Banking System decides to rescue Spain, and will turn the obligation impossible to pay.

The more than 23,000 billion is something like the 27.8% of the total amount scheduled for the year. To that amount must be added several billion more in terms of short-term debt — 3 months to 18 months. If things do not change much, long-term debt will be at the highest rate in recent years, according to a statement issued by the president of the European Central Bank (ECB), Mario Draghi.

Friday, the Treasury debt placed at two, four and 10 years were at interest rates ranging between 4.8% and 6.7%. The Director of Studies of Catalunya Caixa, Ramon Roig, explained that “the rate at which the interest rate has been placed is practically the same as that listed on the secondary market.” So if the Spanish debt in this market rally that began Thursday consolidates (the 10-year bond stood at 7.2%), it will become more expensive for Spain to fund. “It will surely make it more expensive to finance the borrowing, which will complicate our life,” said Miguel Angel Bernal, a professor at IEB.

A total of 1062.1 million of debt was placed Thursday into a two years, 4.8% (the previous was 5.3%), with 1,024.4 million due to four years at 6.1% (in the previous one was at 5,6%) and 1045.8 million to 10 years at 6.7% (previously 6.5%).

According to the Spanish Treasury, last June (latest data available) there were 611,992,000 of outstanding government securities with an average life of 6.2 years. The average cost, according to the same statistics, is 4.1%, one of the lowest in recent years.

The Economy Ministry confirmed that as in previous years, there will be no long-term auction given the holiday period in mid August. So the next test for the State are 21 and 28 of this month, when more debt will be put out. That short-term debt is easier to place with investors, among other reasons, because in a hypothetical situation where the money is taken from creditors, a debt reduction may remain outside, say the analysts. This is what happened, for example, in Greece.

Miguel Angel Bernal warned yesterday that “the key time is October because there are many debt maturities.” According to the Treasury, that month will see the renovation of more than 20,000 million for the long term and some 5,000 million for the short term. In addition to these maturities, the State must finance the deficit generated during the same period. “If you spend more than you take in, as in a family, it becomes a deficit and that deficit needs to be financed, which normally results in more debt,” said Roig.

Spain Officially under Brussels Rule

By requesting a financial bailout of its banking system and accepting all measures recommended by Brussels, Spain has effectively walked into the wolf’s den.

By LUIS MIRANDA | THE REAL AGENDA | JUNE 26, 2012

The reaction to Spain’s decision to accept a financial bailout for its banking system had immediate reactions everywhere in that country and abroad. First, the decision to request over $100 billion dollars to Brussels to rescue what the country’s Prime Minister says is 30 percent of the banks caused the collapse of the stock market. Second, by the mid afternoon, the adoption of new rules from the European bankers caused Moody’s to downgrade 28 Spanish banks and left Spain’s credit rating just above junk status. Third, The European Union will, as it did with other countries that were rescued, assumed complete power of the budgetary policy of the Spanish government.

On Thursday, European finance ministers will meet to discuss the details of the latest European rescue which implies that Spain will have to adopt every single recommendations originated in Brussels. Any violation to such rules will consequently bring harsh penalties against the peninsular nation. Another issue that will be discussed on Thursday and Friday will be the guidelines that the European government will give each nation that requested a bailout in regards to the supervision that the euro zone leaders will exercise over the banking system and the amount that each government will spend, how and when they will spend it.

Now that Spain is in the bag, European leaders like Herman Van Rompuy, Jose Manuel Barroso, Jean-Claude Juncker and Mario Draghi are proposing to establish a system where there is complete centralized control over the financial sector in each of the countries which will include the economic and budgetary matters. In Spain, economists and TV commentators are already analysing the implications of such a decision, since Spain has no longer anything to say about what is done with its finances. The Prime Minister Mariano Rajoy has said on national television that new and more difficult measures are still to come. Those measures include a 10 percent increase in the sales taxes, which will reach 18 percent. This increase is surely to affect the prices and food and other basic needs.

After the increase in the sales tax or IVA, Spain will have to ‘reform’ its pension system, which will mean that Brussels will also take control over the retirement of millions of Spanish people. Those who have contributed into the retirement system, will have to retire later and take a significant haircut to their benefits once they decide to stop working. That is if they receive any retirement benefits at all. Additionally, the government will also propose a cut in the salaries it pays to workers in the public sector and a considerable reduction in the number of people it will employ once Brussels recommendations are effective.

Although the details of Spain’s bailout are not fully disclosed to the public or the media, leaks provided to some economists in that country detail that the country will have to take care of the bankers’ debt for at least the next quarter of a century while paying an interest rate of between 3 and 5 percent. Spain’s incapacity to meet its obligations was the caused cited by Moody’s for its most recent downgrade, Meanwhile, and as a consequence of such downgrade, Spain will have to continue paying higher interest rates at bond auctions. This situation would get even worse of Spain needed another financial bailout in the near future.

French junior budget minister Jerome Cahuzac, one of the people who meets today with the rest of his European colleagues to work out the details of Brussels meeting on Thursday, has said that it is only fair that Spain also submits its sovereignty just as his own country and many others in the euro zone have done it as a condition to receive so-called rescue packages. “This is what we are talking about, budget solidarity in Europe which implies that not only that the French budget, but also the German, Italian and Spanish budgets be subjected to a review by all our partners,” Cahuzac said.

As we reported yesterday, Spain is now finalizing a memorandum of understanding which will be presented before the Eurogroup on July 9, where the final decisions will be made by the 17 finance ministers who work on behalf of the European bankers. The Spanish economy minister explained that the money loaned to Spain will be managed through the Fund for Orderly Bank Restructuring (FROB), which is supposed to be a state-backed cashier, but that in reality is a banker-controlled window that dictates where will the funds recently requested by Spain will be directed.

As it has happened throughout Europe, most of the measures adopted by governments to supposedly deal with the economic crisis have only tightened the belt of the working class, the people who always take on the heaviest burden when banks decide to collapse a country’s financial and economic system. In the case of Spain, as we have said, the financial rescue of its banks means prices going through the roof, later retirement, less or no retirement benefits, a reduction in the purchasing power for the middle and lower classes and a perpetual state of indebtedness for the next 2 or 3 generations of Spanish people, who will have to work all of their lives to pay the debt incurred into by the Spanish banking system.

“We are absolutely slaves to Central Banks”

By LUIS MIRANDA | THE REAL AGENDA | JUNE 25, 2012

It hasn’t been a secret for long, but very few times do viewers watch or listen to guests on main stream media not only accepting the fact that we are all slaves who work for central bankers, but to admit it emphatically on US national television. In a recent interview on CNBC’s Kudlow Report, one of the co-hosts asked on air if the current economic and financial situation was simply global governance at last, and whether the central bankers were in charge. Aren’t we all living and dying for what the central bankers do?  One of the guests, Jim Iuorio, said that such scenario was exactly what we are experiencing. “To answer your question, we are absolutely slaves to Central Banks,” Iuorio said.

See the complete clip below:

There is not need for the main stream media to admit or show proof of such scenario. Perhaps the clearest example that shows how the central bankers are in total control, is that they ordered governments in North America and Europe to ‘rescue’ the banks that were near bankruptcy due to their holdings of toxic financial products. Even banks that did not need to be rescued were obligated to accept financial aid in a move to chain down almost every single banking institution to the European and American central bankers.

Last week, The Real Agenda informed about the current state of monetary policy planning in the euro zone where central bankers are already working on further consolidation of the global financial system. In the article New Global Money Secretly Planned by Elites, AmericanFreed.com explains how the world’s monetary system is being shaped right now.As explained in previous articles, central bankers are adepts of creating order out of chaos, and the current global crisis is not the exception. The elites in charge of the banking system are anticipating the results of their monetary and financial policies of the last century, and have already introduced plans for a world currency. Such currency seems to be a basket of currencies backed by gold, which will later become a single currency.

All financial experts agree that the establishment of a single currency will not occur at once, but over the next 5 to 15 years, depending on how the central bankers plans of financial consolidation advance in the Euro zone and North America. The elites are counting on their current rescues to buy them time until their system is fully in place to handle the last great collapse, when they will introduce the one currency system as the only solution to the chaos they caused. The elites or central bankers who want to run the world will produce as much  agony as possible in order to tighten the grip as strongly as they can before the big implosion.

The central bankers have been successful in inducing countries into massive debt as a way to get out of the current state of indebtedness; an oxymoron, no doubt. Spain, a country on the verge of falling off the financial precipice, announced today its request to the Euro government in Brussels to rescue its banking system. The Spanish government continues to deny that its call for a rescue is indeed a bailout, however the more than $100 billion that will be given to some of the biggest banks in that country, is coming from the European financial rescue fund created under the auspices of the government led by Angela Merkel.

Spain in now working on a memo of understanding which the government in Brussels will officially receive next July 9. The move to accept monies from the European fund will be discussed next Thursday and Friday during a meeting that will be held by some European leaders. The conditions under which the rescue of Spanish banks will occur, will include length of the loan, interest rate, payment conditions and penalties that will be incurred should the bankers not pay their debt back. This last fact is strange, yet it is another example of how central bankers control every government.

European leaders say banks cannot request a financial rescue themselves, that the countries need to solicit such bailouts, even though the banks are branches of the central banking model all over Europe. At the same time, the bankers in control of the euro zone also say that governments must request the money and detail the conditions under which their banks will receive the funds because they are legally prohibited from doing so. Of course, that is not the case. It is the European central bankers the ones who dictate the conditions, who determine the interest rate European taxpayers — not the banks — will have to pay for the next 25 years or so. Indeed, governments request the bailout of their banks, but the banks are not the ones who will pay the interests on the debt or the debt itself. That burden is purposely left to the European working class.

An even more insightful view of how central bankers control the global financial system came from another guest of Kudlow’s Report, Jim LaCamp. “Markets are driven by policy, they dare not driven by market forces, they are driven by central banks’ proclamations.” In other words, it is the decisions made by technocrats in charge of unelected supranational financial institutions who operate on behalf of the central bankers, and who attend to their requests, the ones who determine how economies function. It is not industrial production, free markets, elected government directives or the proposals put in front of these governments by social groups.

“In Spain, too many people say to many things about what needs to be done,” said Iñigo Méndez de Vigo, Spain’s Secretary of State for European Relations. See, only the bankers should dictate what is done, not the people, not the press, not the governments. According to Méndez, Brussels needs to oversee Spain’s and other nations’ budgets, economies and monetary policies. “We have to make decisions on an European level, right now,” added Méndez during an interview on TVE, Spain’s government funded television. “We have to assure the euro zone that here in Spain were are serious about finding a solution to this debt  problem.”

“It is important not to lose sight of the intentions of this request for funds,” said Spanish Prime Minister, Mariano Rajoy, who insists that the bailout of the Spanish banking system is not a bailout. He sees it positive that the rescue will only apply to 3 banks, but he forgets to point out that the sum of money — $100 billion — is what makes the rescue alarming, not the number of banks that are being rescued. Under the current model chosen by the central banks, the adoption of debt-based programs to solve a collapse caused by sovereign debt, the scenario seen in Greece and Spain will be repeated in France, Portugal and the rest of Europe before moving to North America, where the financial implosion will take place.

Who else will admit that the people of the world are indeed slaves to the global financial system controlled by central banks?