I have been disturbed for the past few weeks. An underlying feeling of apprehension that something is going to give way. Its nothing personal to me, its more a general sense of foreboding, something so serious that it will change our lives forever.
They say that money makes the world go around, but surely this is only true if there is enough for everyone. The money grab is on, and those who have the power are grabbing every bit of it.
The investors are leaving, taking flight. As the economies of western nations are coming under the spotlight, it is clear that they are still spending money like water despite so called recessions, banking crises, austerity measures, the outflow is still larger than the income.
Banks are still creating debts out of thin air and in return are no longer just eating other banks, they are now tapping in ever greater amounts to sovereign funds. The money Central banks are raising in the international markets are at ever higher interest rates, but that flow is now drying up as the international investors are moving on.
So we are left with a situation such as we have with Ireland, bailed out with a combination of ‘funds’, for which the ordinary Joe will pay for it all. From the IMF which draws it money from a number of nation states, from the EU, which has no money of its own, but draws it again from the central banks of its member states, and direct loans from member states themselves. These are national funds being used, not banks money, yet it is nearly all going to be used to bail out Irish and other banks.
Talk about robbing Peter to pay Paul, the sovereign money is on a merry-go-round, they are now borrowing and lending to each other with little chance of any of it coming back, but with no new money going into the mixing bowl and only withdrawal coming out, it will become an increasingly scarce resource.
There were two stories that grabbed my attention this morning, which highlights the plight of those sovereign funds, that they are running out of real money and reserves, and that is the pension funds grab by two states, Ireland and France. You may recall that Gordon Brown has already raided ours on our own road to debt.
As part of the bailout deal with Ireland, the EU is insisting that Ireland raid its pension funds to the tune of €37.5bln, and to pay for its contribution to the bailout mechanism, France this morning raided its pension reserves and relieved it of €36bln.
Its the last reserve, after this there is little or nothing left to rob, there now only remains you, and what you own and it won’t be too long before they want that as well, your savings, your investments, your homes.
This entire scenario is completely unsustainable. It brings the whole of the EU to the brink, recreating the German situation in the early 1930’s. No new money except that being created by the ECB and IMF, no real growth only that fanticised growth created by taxpayer subsidised EU projects, no real jobs only those being created by EU projects and social engineering, and with each step the EU takes more control over national economic life in the member states, along with the banks losing independent control to nationalisation as part of these deals.
These deals are not saving anyone, or anything, but simply putting of the inevitable.
Sooner or later, and I think sooner, the planners in the background will move to the next step, and those of you who read history will know exactly what that is. War.
My view is that over the next 6 months, the EU and the US will have to face a stark choice, their currencies or their military, they cannot support both. We can see from the SDR which way the current UK government thinks, but that can easily be reversed.
In the US they have slightly more time. If North Korea kicks off it will begin a whole new economic cycle being led by war bonds, but it will have to face an enemy that holds most of its debt, China, because it will invariably back its close ally N.Korea.
But the US also knows that if conflict with N.Korea doesn’t happen, then the US will become subservient financially to China. A conundrum indeed.
I think the Wikileaks revelations this week, whilst embarrassing are not exactly earth shattering so will do little to fuel this scenario, but it may possibly make it harder to use diplomacy as a tool to step back from this brink.
But War gets economies moving again, war means creating new factories, building and servicing the machines and equipment of war, war means new income for governments by way of publicly financed war bonds, war means cutting down populations as countless numbers will be sent to fight and die, and behind all this never forget that the mechanism for totalitarian control is already in place, both in the US and the EU, with the countless new laws that have been created but are not yet active, the new international, regional and national ‘security’ organisations backed by the countless numpties who have been making good money out of their creation.
So yes, I have been losing sleep this past few weeks as I try to join the dots in my head. Something is going to give and when it does, everyone and I do mean everyone, rich and poor, old and young, the fit and the disabled, will suffer like we have never suffered before.
For 20 years we have watched successive governments destroy our institutions, ripping apart our national heritage, our national will and culture. Pride is now a dirty word. It will take a strong leader to put the brake on this and turn it around to the point where we can start building again, such leaders are few and far between, unfortunately they do not exist here.