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“It takes a crisis to make the politically impossible, possible.” – George Soros- bankster front man
The strategy of tension is a theory that describes how to divide, manipulate, and control public opinion using fear, propaganda, disinformation, psychological warfare, agents provocateurs, and false flag actions. This sure feels like such as environment.
Fitch dusts off the downgrade bottom, and lower the ratings on Brazil’s banks. Little wonder as the debt-fueled domestic consumption binge among Brazilian households is slowing as debt service burdens have reached nearly 30% of the average Brazilian paycheck (vs. 16% in the US).
Zero Hedge posts the latest ECB balance sheet details and it is a doozy. The balance sheet has grown to $3.2 trillion, and is leveraged 30 to 1, holding about $900 billion USD in PIGGS, the majority bought at much higher prices. Looks like a huge bill is going to be presented to the nations supporting this scheme. Lending to insolvent banks has grown from EUR 224 billion to EUR 665 billion. First hand view of what “printing money” for purchases of poor quality financial assets really entails.
Through its government bond buying and liquidity provision to banks, we estimate that the ECB’s exposure to weaker eurozone economies has now reached €705bn, up from €444bn in early summer – an increase of over 50% in only six months, raising fresh questions about its credibility, independence and possible losses it may face in the case of future sovereign defaults.”
On the same train of thought IMF European “relief” fund: of the remaining meager €150 billion in funding, Germany will be responsible for €41.5 bn, France at €31.4 billion, and Italy will need to provide €23.5 billion.
Next up are unlimited 3 year loans (LTRO) from the ECB to insolvent banks take the near-free money and play the “Corzine trade” by buying sovereign paper.
Greek budget deficit to pass 10% of GDP.
Another example of state losses. Germany the 25% owner of Commerzbank has already lost about two-thirds of it’s rescue fund.
The capital Europe desperately needs is off funding the American 100% debt to GDP bottomless pit. Talk about chickens with heads cut off. Speculative capital moves down through the credit instruments as, one by one, each credit instrument loses its “moneyness” – the last one being the US dollar/Treasury complex.
How US crony capitalism works.
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