"Escaping The Clutches Of Financial Markets" - An Essay On Europe's Debt-For-Democracy Prepackaged Bankruptcy

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Sun, 06/05/2011 - 19:56 | 1342077 JW n FL
JW n FL's picture

JP Morgan’s “Jamie Dimon” says 100’s Municipalities in U.S. Won’t ‘Make It’ Out of Debt Crisis “Bloomberg” http://bloom.bg/gDo4Wb


Europe will as well be loaned against in a 1st position.. thusly foreclosed and sold off to the highest bidder!


Privatize the World Bitchez!!

Sun, 06/05/2011 - 20:59 | 1342178 Alcoholic Nativ...
Alcoholic Native American's picture

Time to start selling off public lands and infrastructure.  Bring the mercs back home for Operation Austerity.


Privatize the world indeed.  


Sun, 06/05/2011 - 21:45 | 1342252 Dolemite
Dolemite's picture

PMs stocks and oil heading lower?


Sun, 06/05/2011 - 20:09 | 1342095 Dan The Man
Dan The Man's picture


Didn't Thomas Jefferson predict all this?

btw...great man

Sun, 06/05/2011 - 21:25 | 1342208 ihedgemyhedges
ihedgemyhedges's picture

Jefferson was a little late.  It's long been known that the pursuit and worship of money and riches run counter to the benefit of mankind.  I present Matthew 6:24:

No man can serve two masters: for either he will hate the one, and love the other; or else he will hold to the one, and despise the other. Ye cannot serve God and mammon.

Sun, 06/05/2011 - 21:39 | 1342235 asdasmos
asdasmos's picture

Excellent. More scripture from nomadic, hallucinogenic drifters of the ancients.

Sun, 06/05/2011 - 21:49 | 1342263 JW n FL
JW n FL's picture

if you liked him you will love this!




how about some love for the literary license taken? in the name of "We the People"? Please? Pretty Please?? Against the Bankers??? Please?

Sun, 06/05/2011 - 22:19 | 1342312 ihedgemyhedges
ihedgemyhedges's picture

Junk me if you want, but the point is simple: Politicians and bankers both worship money.  Mankind is an afterthought.  You're seeing the results.  So go junk yourself................

Mon, 06/06/2011 - 01:08 | 1342561 JPG101
JPG101's picture

I didn't junk you but am sick of this religious stuff...

Mon, 06/06/2011 - 03:32 | 1342661 iNull
iNull's picture

Isn't obeissance to the Fed a form of religion? And a denominational one at that?

Sun, 06/05/2011 - 22:08 | 1342288 Michael
Michael's picture

The kickoff to the downward slide of America really began in earnest with the Act of 1871 when the people became vassals and serfs for the corporation known as THE FEDERAL United States CORPORATION.

"With no constitutional authority to do so, Congress creates a separate form of government for the District of Columbia, a ten mile square parcel of land (see, Acts of the Forty-first Congress," Section 34, Session III, chapters 61 and 62). 

The act -- passed when the country was weakened and financially depleted in the aftermath of the Civil War -- was a strategic move by foreign interests (international bankers) who were intent upon gaining a stranglehold on the coffers and neck of America. 

Congress cut a deal with the international bankers (specifically Rothschilds of London) to incur a DEBT to said bankers. Because the bankers were not about to lend money to a floundering nation without serious stipulations, they devised a way to get their foot in the door of the United States.

The Act of 1871 formed a corporation called THE UNITED STATES. The corporation, OWNED by foreign interests, moved in and shoved the original Constitution into a dustbin. With the Act of 1871, the organic Constitution was defaced -- in effect vandalized and sabotage -- when the title was capitalized and the word "for" was changed to "of" in the title."


It operates in an economic capacity and has been used to fool the People into thinking it governs the Republic. It does is not! 

Capitalization is NOT insignificant when one is referring to a legal document. This seemingly "minor" alteration has had a major impact on every subsequent generation of Americans. 

What Congress did by passing the Act of 1871 was create an entirely new document, a constitution for the government of the District of Columbia, an INCORPORATED government. This newly altered Constitution was not intended to benefit the Republic. It benefits only the corporation of the UNITED STATES OF AMERICA and operates entirely outside the original (organic) Constitution.

Instead of having absolute and unalienable rights guaranteed under the organic Constitution, we the people now have "relative" rights or privileges. One example is the Sovereign's right to travel, which has now been transformed (under corporate government policy) into a "privilege" that requires citizens to be licensed. 

By passing the Act of 1871, Congress committed TREASON against the People who were Sovereign under the grants and decrees of the Declaration of Independence and the organic Constitution."

UNITED STATES is a Corporation - There are Two Constitutions - Sovereignty


Sun, 06/05/2011 - 23:39 | 1342430 Milestones
Milestones's picture

Thanks for the interesting post!         Milestones

Mon, 06/06/2011 - 12:28 | 1343552 JW n FL
JW n FL's picture

if you search here in zerohedge, the search engine here.. you will find stories from last year on the FED Corporation.. the interesting part was that the earnings of land sales and leases is not shown anywhere on any report that the Government puts out for public consumption.


the reality that even Tyler would not touch that one even though I posted it over and over again.. made me think amybe I should shut my big mouth!


but the Corporation that is the United States of America shows no P&L for land leases / sales / mineral rights and anything you can think of.. oil leases? gold leases? participation agreements? NOTHING!


so this Corp that is the U.S. is the tip of a very large, profitable iceberg that no one ever gets to see.


Kind of like the FED's Gold being worth $42 dollars an oz.!

Sun, 06/05/2011 - 20:12 | 1342102 iNull
iNull's picture

The Bayreuthian fat lady is about to sing as this epic Capitalist Ring Cycle draws to a close. Any bets on whether the bratwurst and pilsner-bloated audience has the common courtesy to wait for the curtain call or storms the exits for the nearest vomitorium as soon as the house lights come up?

Sun, 06/05/2011 - 20:14 | 1342106 Conrad Murray
Conrad Murray's picture

Spiegel is really stirring the shit lately, I like it.

This is what is so disturbing about the current situation: the fact that politicians seem so helpless and powerless. They have been given a new master, and it's not us, the people, who tend to intervene in milder ways. Rather, it's the ruthless financial markets.

Might have to be a little careful though, as this seems familiar Germany. Where have I heard this before?

Anyhow, this is an excellent article overall. Starting to touch on some of the concepts that really matter at the end of it. Hope to see more. Name more names, and expand on the cornerstones of classical liberalism.

P.S. - This article is going to drive the left-leaning statists crazy. The second section screams "Glenn Beck was right". Someone should make a YouTube video of that.

Sun, 06/05/2011 - 20:16 | 1342111 Fix It Again Timmy
Fix It Again Timmy's picture

It seems that everyone is falling for the "easy sell" and "what's in it for me."  The reason may be that from your local, small town police department purchasing the latest SWAT tactical gear to the United States Congress throwing billions at dubious weapons systems, people making budget decisions on how tax dollars are spent are relentlessly pressured and REWARDED to buy these gadgets.  It's time for these yokels to say "F" it, we're spending money on healthcare, education and infrastructure improvements, take these gadgets and shove them up your ass and get the hell out of my office.  Boy, am I ever dreaming or what?

Sun, 06/05/2011 - 20:26 | 1342138 I am Jobe
I am Jobe's picture

Agreed. Govt is getting ready as they know the future which is bleak and want to ensure they are in control. As for the crappy IPHONES and crap, screw the crap and start building and creating value and bring back manufacturing.

Sun, 06/05/2011 - 21:37 | 1342227 CH1
CH1's picture

screw the crap and start building and creating value

THAT is the right answer.

Sun, 06/05/2011 - 20:19 | 1342117 Michael Victory
Michael Victory's picture


Where everyone has been bought.

On the grill tonight..


Sun, 06/05/2011 - 20:17 | 1342121 AgShaman
AgShaman's picture

Time to construct some floats for a parade to be driven into Washington D.C.

All of the floats should have the same structures built and fixed upon them....a little hint for the traitors serving in our Legislative Branch of govt....in case they are curious to know what they are deserving in the near future.

Here's a hint of what the themes of each float would be:



Sun, 06/05/2011 - 22:14 | 1342301 Onohymagin
Onohymagin's picture

Plus Guillotines, Gas chambers, maybe a nice electric chair.

Actually, would send a challenge to the banksters in a very public way.

Sun, 06/05/2011 - 22:55 | 1342353 AgShaman
AgShaman's picture

Good Idea.....thanks

Guillotines, Gas Chambers, and Gallows

Call it a "G-3 Summit" for Banksters and Politicos

(ie: Do the right thing or not....the hour is already too late....some choices should have consequences)

Sun, 06/05/2011 - 20:26 | 1342130 Raymond K Hessel
Raymond K Hessel's picture

I say it's time to reverse the flow of power from the federal govts of the world and have it start with local governments.  The politicians and the banksters have been able to wreak all this havoc because so much power is concentrated in national govt.  This guy is right about how all this could end in some Cultural Revolution like in China or Reign of Terror in France.  It's time for a change and I think what I've come to call the Home Rule Amendment is a way out.

A homerule amendment, making municipal govts more relevant than state governments, and state governments the back stop. No federal intervention on domestic issues.  Call it Tenth Amendment on Steroids.  Basically the idea is to reduce the federal government's influence from domestic policy as much as possible.

With a homerule amendment, municipal laws supercede state laws.

The problem includes the federal income tax.  No matter where you go, there it is.  Limit the income tax with a homerule amendment.

Here's the Tenth Amendment:
"The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people."

Here's the Homerule Amendment:
*       Section 1. The tenth article of the amendment to the Constitution of the United States is hereby repealed.
*       Section 2. The sixteenth article of the amendment to the Constitution of the United States is hereby repealed.
*       Section 3. The fourth clause of paragraph nine of Article 1 is hereby repealed.
*       Section 4. No direct tax on income shall be collected from the people by the United States, or by States individually.  Municipalities may levy direct taxes on income from the people.
*       Section 5. Municipalities may reserve powers to themselves not prohibited by the Constitution, superceding federal and state powers.  Remaining powers not delegated to individual States, are reserved to the United States, or to the people.

*       Section 1 repeals the tenth amendment since the homerule amendment is meant to improve it.
*       Section 2 repeals the income tax amendment
*       Section 3 repeals the direct tax prohibition
*       Section 4 limits income tax authority to municipalities
*       Section 5 is the meat of the homerule amendment intended to give municipalities power over the state government and state govt power over the federal govt.

++++ If you agree, please forward to your friends. ++++

++++ If you can, please try to improve it.  I don't pretend to be a lawyer. ++++


Sun, 06/05/2011 - 20:36 | 1342152 Mr.Kowalski
Mr.Kowalski's picture

Hessel: I'll go ya one further. How about dividing the nation into 435 states (now called Congressional Districts) and give them very wide authority-- all things save the currency,war powers, foreign policy and trade agreements. Instead of having too many layers of goverment, how about just federal and state ? 

Sun, 06/05/2011 - 21:35 | 1342230 CH1
CH1's picture

A step in the right direction.

How about 310 million jurisdictions?

Sun, 06/05/2011 - 20:27 | 1342133 Imminent Collapse
Imminent Collapse's picture

Der Spiegel has been frontrunning the European reporting.  Finally, a magazine with balls.

Sun, 06/05/2011 - 20:29 | 1342136 Pure Evil
Pure Evil's picture

This smells of UN Agenda 21 urine reeked lavatories. "An international transaction tax"?

So, who exactly gets to collect and then ultimately spend this international transaction tax, and on what?

The UN has been proffering up this garbage for the past few years as a way of garnering an income stream for its delusional utopian fantasies.

I'm amazed how he threw that little diddy out there about international transaction taxes, but did little to expound on how the tax monies would be used or by whom.

Of course, as we all know, taxes on corporations, even international banks, are heaped upon the taxpayes to pay. What a way to stealthly steal one's sovereignty and give it to the Internationals.

And, by the way, we're supposed to be a representative government, and not a democray.

Sun, 06/05/2011 - 20:31 | 1342142 Raymond K Hessel
Raymond K Hessel's picture

Exactly, I've been saying to my friends that we are not in a democracy.  They look at me like I'm nuts.  There should be a test for citizenship.

Sun, 06/05/2011 - 21:02 | 1342189 Pure Evil
Pure Evil's picture

From Wiki:

"direct democracy where the people do not elect representatives to vote on their behalf but vote on legislation and executive bills in their own right."

But, of course, our system of a central government is more based upon the Roman model of governance, namely a representative government.

To put it more succinctly, a representative government allows the governed to remain ignorant of the political class' shenanigans.

Mon, 06/06/2011 - 04:07 | 1342670 dolly madison
dolly madison's picture

I have been thinking lately that it might be worth a try to do direct democracy for awhile.  I have never seen an initiative in California go wrong.

Mon, 06/06/2011 - 04:54 | 1342679 StychoKiller
StychoKiller's picture

Bwahahahaha!  Guess someone poked out your eyes! :>D

Sun, 06/05/2011 - 20:38 | 1342150 topcallingtroll
topcallingtroll's picture

America will never allow an international tax. Even obamao, our most socialist president in history, would never dare propose it.

Even a semi disguised private version called carbon credits is dead now.

Sun, 06/05/2011 - 21:29 | 1342215 baby_BLYTHE
baby_BLYTHE's picture

He is a fascist, not a socialist. Just like Bush and every president since Kennedy.

Mon, 06/06/2011 - 11:50 | 1343413 Diogenes
Diogenes's picture

A Fascist is a socialist. Fascism = national socialism. Communism = international socialism. I thought everybody knew that.

Mon, 06/06/2011 - 06:09 | 1342698 AnAnonymous
AnAnonymous's picture

America will never allow an international tax.


Yep. It explains why the US will never let the USD achieve world reserve currency status as it would mean it to become an international tax.

US citizens, redefining meanings of words every day, when slavery is freedom and never is already. So fine.

The US citizen nature is eternal.

Sun, 06/05/2011 - 20:41 | 1342155 Atomizer
Atomizer's picture

Codex alimentarius. Achoo. I must contact the CDC. Think I'm coming down with the NDM-1 E-Coli strain. I've got to log off now, if I sneeze again, might shit my pants. LOL

See everyone tomorrow. Good night.

Sun, 06/05/2011 - 20:57 | 1342179 Pure Evil
Pure Evil's picture

Just don't sneeze in the shower!


Sun, 06/05/2011 - 20:32 | 1342147 topcallingtroll
topcallingtroll's picture

He had one important sentence in that article when he said that people and countries with large debts lose their freedom.

Dont deficit finance on a sovereign level. Governments are too stupid to be trusted with deficit spending, even if in theory countercyclical spending is a good idea.

Sun, 06/05/2011 - 20:32 | 1342148 Mr.Kowalski
Mr.Kowalski's picture

The "End Game" for Greece will come when there are enough protests, riots and strikes so as to make the place essentially ungovernable-- at which point the Greek Army steps in and tells foreign creditors that the needs of the Greek people come first. 

Mon, 06/06/2011 - 04:53 | 1342676 Learn more and ...
Learn more and know less's picture

I hope we don't end up with armies back on the streets in Athens, and other southern European capitals. 

There must be a more strategic way to protest than standing in squares shouting slogans, refusing to pay on public transport etc.

In the UK truckers were able to bring the country to it's knees in less than a week, forcing the government to give into their demands, (lower fuel tax), just by blockading the largest fuel terminal for the country.

Is there any similar way for a popular movement of citizens to hit the TBTF banksters where it hurts? 


Sun, 06/05/2011 - 20:43 | 1342160 steve from virginia
steve from virginia's picture

Once a few politicians and bankers are hanged from lampposts ... problem solved!


Position alert: long pitchforks and brands.

Sun, 06/05/2011 - 21:31 | 1342222 JW n FL
JW n FL's picture

Long; Rope!


Long; Tar and Feathers!


Long; Duct Tape!

Sun, 06/05/2011 - 20:44 | 1342164 Mr.Kowalski
Mr.Kowalski's picture

One of the problems of a Greek "debt exchange" would be the effect this has on the ECB itself, which holds tens of billions in both Greek bonds and Greek bank debt. It might also trigger credit default swaps, lthough it does look like this would be a "voluntary" program. But who could volunteer for that-- unless there are German (or ECB) guarantees on the new bonds ? 

Sun, 06/05/2011 - 20:45 | 1342165 topcallingtroll
topcallingtroll's picture

It is interesting that europeans who blamed the debt crises on the usa are finding out about incredible levels of corruption, waste, hidden debt, fraud, and a debt problem much bigger than in the usa.

Of course we have kalifornia and illinois. Our shit is just a tiny bit less stinky.

Looks like we are going to make it after all! Obamao is a one term president and the tea party will kill entitlements. We can be reborn as the hardworking productive nation we used to be.

I so miss the early 20th century, except the botulism. It was truly the spirit of america.

Mon, 06/06/2011 - 00:32 | 1342521 serotonindumptruck
serotonindumptruck's picture

"I so miss the early 20th century, except the botulism."

Damn, bro. You must be really old. :-)

Regardless, it's not cool taking cheap shots at the anaerobic bacteria like that. Those nasty critters have been around for a few billion years. Maybe they have more of a right to be here than we do.

Mon, 06/06/2011 - 07:03 | 1342729 sherryw
sherryw's picture

You can't be THAT old!

Sun, 06/05/2011 - 20:46 | 1342166 Xavier Doe
Xavier Doe's picture

Other than the sour note about an "international transaction tax" - which was thrown in hastily and without buildup - thumbs-up to another great article from the Spiegel.

Seems they are at their best when articulating a problem, rather than proposing solutions.

Sun, 06/05/2011 - 21:49 | 1342214 Pure Evil
Pure Evil's picture

Sorry, but the devil is in the details. Nothing is ever "hastily and without buildup" thrown into an article.

Throwing in feel good snippits about "international transaction taxes" for bad ole transnational banks is the same as flashing brief frames of "go to the snack counter" at movie theatres. It's subliminal propaganda aimed at getting you to agree with their agenda. Which is namely the globalist agenda.

The globalist agenda involves the loss of national sovereignty with the development of supra-regional governments without the pesky representative governments.

Or, exactly what is happening to formerly sovereign nations on the European continent? They're slowly giving up their sovereignty to the Euro-crats which rule from Brussles.

The same is happening to the US, Canada and Mexico with the formation of the North American Union.

The whole "international transaction tax" is just a ploy to provide the UN with an income stream to further the globalist agenda, namely Agenda 21.


Agenda 21 is really a goal of the global financial elite to push forward their plan of world financial dominance, wrapped in the loving embrace of the environment, global warming and that feminist squishy, sustainable development.

And, don't think the banks, international or otherwise, will be against this agenda since all transaction taxes will be passed on to account holders in the form of fees.

The rest of the squishy article is just pure tripe used to pull at your basic mothering instincts.

The whole article, in my opinion, was written to get you to agree with this basic premise, namely that banks are bad, politicians are spineless and, don't start laughing out load, that the only way to control these monsters, the banks, is through an international transaction tax.

That's like trying to tell my pecker not to get a woody everytime my eyeballs sight a hot naked chick. The only way that would happen is if she said she was a lesbian and showed me a picture of her ugly mannish dyke girlfriend.

The politicians are no more afraid of the banks and their CEO's than the banks and the CEO's are afraid of the politicians.

Politicians and CEO's are like turds and assholes, you won't get one without the other.

Sun, 06/05/2011 - 20:53 | 1342167 zippy_uk
zippy_uk's picture

The western world has been caught knapping by globalisation:


* Failure to deal with trade imbalance over sustained period of time


* Failure to keep intergenerational wealth transferance in check


* Failure to secure sustained fiscal and monetary discipline


* Failure to anticipate and react to technology distruption (internet) when we were at the forefront of developing it


* Failure to ensure fair and transparent financial practice. Covering up for corrupt practice due to arrogance over western democracy


* Failure to control non-governmental forces (global companies, private individuals) from unduely influencing politics


* Failure to prevent wasteful economics - the throw away society. We have yet to encounter "peak waste" - yet this is a major drain on the real economy.


This needs major policy to address each:

* Hypothication of benefit entitlement. Per generation, what you get is what you paid in.


* The de-monetisation of politics. Politics should be low cost by law. In the age of the internet and mobile communications, where is the justification for muti-billion dollar/pound politics ?


* Taxes on consumption, polution and resources, not savings, income or corporate turn overs. These taxes will be easy to collect, simple and flat


* "Balance the buget" laws with teeth. In the UK, Gordon Brown introduced the golder rules only to then wreck them with the golden scam.


* In affairs of state, unless ultra-national security, all information is published within a short time frame. Information to be independently gathered and assed always.


* Some sort of national frame work to ensure debt does not get out of hand. Why have control of the cost of debt (interest rates) at a national level without having some sort of control of overall national indebtedness (private as well as public). Debt is a major factor in the crisis and a reason for national uncompetativeness.

As for Europe, it became too socialist under the EU, and has no democratic mandate. Hence the mess the EU is in. There needs to be a structured default for the PIIGS. Then they should leave the Euro. They will need to face life with their own currencies, and with a reduced govenment and more privatised economy under firm national regulation.

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