The Day Trade Show

The Crisis in Europe

DayTradeShow, 2013 January 21, Monday – CNBC.com reports today, “Europe’s economies and markets have nothing to fear from the defeat of Chancellor Angela Merkel’s party in German regional elections this weekend as the euro zone crisis will be on hold until Germany’s national elections in September, analysts told CNBC on Monday.”

This is news to who?

The word “crisis” was cried so many times since 2008 that a real “crisis” lies ahead when people ignore what should be clear: Nothing systemic changed since the first utterance of the word.

Banks are royalty. People property.

If there ever were a “crisis” in Europe, it was solved the moment the US Treasury and the Federal Reserve began to make secret loans in 2008. The Federal Reserve gave out $17 Trillion (or, so we are told) banks and other “financial institutions) around the world.

“The first top-to-bottom audit of the Federal Reserve uncovered eye-popping new details about how the U.S. provided a whopping $16 trillion in secret loans to bail out American and foreign banks and businesses during the worst economic crisis since the Great Depression. An amendment by Sen. Bernie Sanders to the Wall Street reform law passed one year ago this week directed the Government Accountability Office to conduct the study. “As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world,” said Sanders. “This is a clear case of socialism for the rich and rugged, you’re-on-your-own individualism for everyone else.”

Among the investigation’s key findings is that the Fed unilaterally provided trillions of dollars in financial assistance to foreign banks and corporations from South Korea to Scotland, according to the GAO report. “No agency of the United States government should be allowed to bailout a foreign bank or corporation without the direct approval of Congress and the president,” Sanders said. (Source: http://www.sanders.senate.gov/)

Whatever “crisis” there would be was cured by American tax dollars ahead of time. And, while debt was handed to your kids as a way of bailing-out Europeans without your knowledge or permission, you were told there was no “crisis” in Europe. That the “crisis” would be “contained” here.

Then, just as we “discovered” that the “crisis” in the US was worse than we were first told, then came talk of a Euro Zone “crisis” ahead. A “crisis” to be solved with more rampant money printed, bonds “bought” by Central Banks, and politicians bought by – or placed-by banks into positions to facilitate the “crisis” solutions.

“Crisis” is a word used to stoke fear in the hearts of a placid populace. This while, the real crisis continues unabated. Brazenly, the very policies which supposedly are the cause of the last “crisis” are now seen as the only solutions to what may avert the next “crisis”.

Confused? Sure. That’s the point. Follow this logic:

“One would expect a country (like) Germany to do better. There has been too much focus on trying to balance the budget when the whole of the euro zone is going into a recession. [Germany] shouldn’t have done it now,” de Grauwe added, saying that if Germany’s economy doesn’t recover as elections loom, Merkel could be forced to change tact to stimulate growth and consumer spending.

“By September then it might become a problem. If it doesn’t grow, I can see Merkel swallowing her pride about balancing the budget and trying to stimulate the economy again.” – CNBC.com

Thus, incredible as you may find it, the sanity of a balanced-budget for Germany is talked about as the albatross around the necks of an entire European Union.

This is where the actual “crisis” is revealed. If Germany were to balance a budget, or – as some once speculated – even leave the Euro for the safety of their own, sovereign currency, bankers would lose. Bankers would lose a gigantic revenue stream of interest on debt, sold as a way to “stimulate” the economies of Europe.

Lies are sold as truth. The lie of the economy that grows through debt and interest to bankers now supersedes the truth of sovereign nations who control their currency.

While analysts say the “crisis” is averted, the truth is the “crisis” is a continual undercurrent that will eventually pull each nation in Europe to the bottom of a sea of blood-red debt.

What do you think?  Do you believe the “crisis” is averted in Europe?