This could also be entitled Germans Learn To Say No To Bankers.
I made a promise to my friends years ago to tell them when I saw Financial Armageddon coming. Consider yourself warned.
The Bundestag (German Parliament) will probably vote against Chancellor Angela Merkel’s Bailout for the banks which have been sold falsely as bailing out Greece, Italy, Spain, Portugal and Ireland. This has been announced by Ambrose Evans-Pritchard who is one of the most widely read columnists (by billionaires) in the world. Anything he says will instantly travel around the globe.
As soon as the Germans get back from their August vacations, the Bundestag will vote on the policies of Angela Merkel which are really the policies of the European banks led by the Rothschilds. She grew up in East Germany. Her father was a Lutheran pastor but had so many privileges granted to him by the officially atheistic Communist government that we can only conclude he set an example of betrayal to his daughter at an early age.
One of the people leading the campaign against her policies is her mentor former Chancellor Helmut Kohl. She also faces stiff opposition from her coalition partners the Free Democrats a far Right party. The Free Democrats have 93 seats in the 622 member Bundestag. Merkel only has 239 party members in the 622 seat Parliament so the vote looks good for Germany and bad for the bankers.
As I explained previously in Hugo Chavez, Gold Runs, Bank Runs and Bank Holidays that each euro note is clearly marked to reveal the nation that printed it. This means that when, not if, the Italians, Greeks, Portuguese and Spaniards drop out of the euro, their people will be given lira, drachma, escudos and pesetas and their purchasing power will be cut 50% overnight. As I said, the Europeans are on vacation until next weekend. At that time, the average man in the street will realize his time is short and everyone will be trying to get out of euros. Europe will be a political and financial bedlam in September.
After the euro collapses, there might be a call for an international conference to reset the values of all currencies and give up as much national sovereignty to the IMF as possible. The dollar will be cut 50% in value and Americans will get their budget dictated to them from the IMF. This conference will be held when the bankers think the time is right.
A few update news items: Ben Bernanke said he wanted Zero Interest Rates for two more years. Translation: He wanted the banks to be able through low interest rates to make the trillions of dollars in bad assets they still have on the books to appear small. Zero Interest Rates also allow his friends like Blythe Masters at JP Morgan to borrow money by the hundreds of billions, invest in commodity futures and make you buy it back at higher prices. 39% higher this year than last.
This item just in: European banks borrowed zero euros from the European Central Bank (ECB) overnight but their deposits soar by 17.2 billion euros since yesterday. Only 3 sources for this much cash: the Rothschilds, the drug cartels who did help out in 2008 and Ben Bernanke’s printing press. Gold and silver were down today. I think they want to discourage investors in Europe from fleeing out of the euro. If I were a European, I would regard the Fed’s manipulation of bullion prices as a gift and flee out of Italian. Spanish and Greek euros.
The problem with all these Bailouts is that they are not cancelling debts. In fact they are increasing the amount of unpayable debts by tens of trillions of dollars.
When Hugo Chavez demanded his 211 tons of gold back, he also shifted his money from US and English banks to Russia and China. I assume he does not want to join Gaddafi in Zimbabwe.
JP Morgan owes Mr Chavez 10 tons of gold. They just got less than a third of a ton of gold from HSBC. To date he has not received any gold. This has spooked the markets. The US and UK governments lease gold as I have said before. They give a certificate to a bank like JP Morgan which sells that certificate five times which appears on the balance sheets of six banks as gold bullion but it isn’t gold. It is paper. This is all well and good until someone like Chavez asks for his gold deposit back.
The important point is that as Jeff Christian said in testimony before the CFTC there is between 50 and 100 ounces of paper for every ounce of physical bullion. That is called leverage and is wonderful on the way up. But deleveraging is a killer on the way down. When Chavez demanded his 211 tons of gold bullion, he forced the bankers to deleverage out of thousands of tons of paper gold.
Silver News Update.
I am more bullish on silver than gold. There is more gold out there to be bought. Silver is a much smaller market. Silver and gold are being subject to market manipulation which cots the Federal Reserve hundreds of billions of dollars to cover. When silver breaks through 53 dollars an ounce the manipulation will die as the FED has to pay JP Morgan, HSBC, Morgan Stanley and Goldman Sachs to cover their short positions. At that point, silver should have no resistance and skyrocket to 75 or 85 dollars an ounce. The manipulation of the physical silver market by the sale of paper silver will be stopped dead cold by investors demanding delivery of their silver and gold.
Personally, I think silver will take off by November and possibly sooner.