Skip to comments.Economic Dictatorship. The European Stability Mechanism (ESM) - Video
Posted on 11/05/2011 6:58:31 PM PDT by csd
Is the EU and the euro in crisis?
The EU is planning a new fundamental law, the Treaty for the establishment of the so called European Stability Mechanism. (ESM), the Debt Union. The draft for the ESM is now to be examined by the representatives in Parliament.
Art. 8 The founding capital is 700 billion euros.
Where does this amount come from? Who has calculated it and on which basis?
Art. 9.3 ESM Members hereby irrevocably and unconditionally undertake to pay on demand any capital call made on them ... to be paid within 7 days of receipt.
When the ESM calls, then things must go fast. Indeed, seven days, that means that with the usual delays in bank transfers we must fill in the check within four days. That is feasible. Just, maybe, what means unconditional and irrevocable? When a new parliament is elected that would not want these fund transfers anymore? They cant decide that anymore?
Art. 10.1 The Board of Governors may decide to change the authorised capital stock and amend Article 8 .... accordingly.
The 700 billion are just the start? So, the ESM can demand more when they wish. Illimitably. And we are then obliged to pay -according to article 9 - irrevocably and unconditionally?
(Excerpt) Read more at beforeitsnews.com ...
Cue the dumb look.
Banks and other large holders of bonds worth far less than their face value will bring all of the power they can muster to somehow, someway get the EU to print the money to prop up the banks and socialize the hidden losses associated with massive sovereign debts.
One way or the other, the money WILL get printed, probably with some help from the US Federal Reserve through the IMF.
The continuing run on European banks by depositors, and a refusal by current bond holders to roll over maturing debt mean that the amount of money that must be created out of thin air is growing exponentially....
We are now seeing more clearly that the world is being run by the largest of the large banks. “Screw the people.” This isn’t socialism, it is Fascism, the alliance of government and favored financial/business interests.
“Is the EU and the euro in crisis?”
Do animals of the ursine persuasion deposit fecal matter in forested lands?
We saved Europe twice last century. We don’t have to do it this century with a financial bailout on the backs of our tax payers.
The linked podcast below gives a good update on the Euro status.
First you have to accept the disclosure statement page (link at bottom of the page that comes up), then on the next page, down under Global Insights, listen to the 11/05/2011 show. The only question is “for how long can the Ponzi continue?”
“Aren’t the big US investment banks carrying trillions
of dollars of unhedged exposure? Quick answer: Hell Yeah!”
“The top four banks with the most derivatives activity hold 94% of all derivatives, while the largest 25 banks account for nearly 100% of all contracts. Overall, the US banks derivative exposure is $249 trillion and is more than four folds of Worlds GDP at $58 trillion.”
So, what does this mean? It means that the US banks are stuffed with sovereign bonds of the PIIGS that are blowing up. So we have to save Europe to save the TBTJ banks in the US.
That is it in a nutshell.
Europe has an out of control Spending problem. It doesn’t help that it killed much of its economy off with green regulation, but even without that it is going to collapse.
Yes, the financial neutron bomb is all of the credit default obligations - unbacked bets - placed on the melting sovereign bonds - could never, ever pay out on the bond defaults.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.