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Why Greece Matters A Lot: The Case Of Europe's Falling Dominoes
Over the weekend, we showed why contrary to unfounded speculation that Greece is entirely contained, there are still extensive linkages when it comes to the fallout a Grexit would reap if not directly on private commercial banks which over the years managed to offload their Greek exposure to the Europe's taxpayers....
... but on the sovereign economies of the Eurozone as well as the ECB, at first via the EFSF, then also via the SMP, the MRO, Target 2 and so on.
Overnight, Barclays took this analysis and also showed the absolute national euro exposure to Greece broken down by bailout program and also as a % of respective host nation's GDP. What it found is the following:
And here is what it looks like when we redo our prior chart showing just European Grexit exposure via EFSF, to total sovereign exposure as a % of GDP. The total amount in question: €341 billion, or just about 3.4% of the €10 trillion in notional European GDP.
But wait, rules-based Europe has "firewalls" now, all laid out and proper, so there can't possibly be contagion.
Only that's not true: for example, two years after introducing the OMT, the ECB still does not even have a regular term sheet laying out the rules of what the purpose of the OMT is aside to be some massive, amorphous "whatever it takes" bazooka. And as for the ECB's QE, it is all downhill from here as net issuance in Europe trickle to a halt, and the ECB risks crushing an already illiquid bond market by monetizing even more of it. Of course, it could engage in outright stock monetization but that would be the signal that the end of the current system is truly near.
As for "rules-based", we'll just leave that to the ECB which just hiked Greek bank collateral effectively admitting the banks are insolvent, but not too insolvent, because now the ECB is officially and without doubt a political entity whose only purpose is to further political agenda.
But that's just the beginning, and as Barclays cautions investors have largely taken the view that even if the worst case scenario did unfold, the impact on portfolios would be manageable. At this point Barclays warns that it is perfectly plausible that this Sunday’s “no” vote may not follow the benign narrative that markets have largely adopted.
Below are some of the scenarios where the contagion will be worse than any algo, not to mention central banker, expects:
The backstops are not entirely infallible
Some of the backstops, if needed, are either untested or incomplete. One example might be the new banking union. At present, the €55bn resolution fund is still 95% unfunded, deposit guarantee schemes are still mostly ex-post funded and there is still no pan-European deposit insurance. More importantly, holdings of peripheral debt on domestic bank balance sheets are rising substantially in recent years. In Italy and Spain, for instance, domestic government bonds as a percent of total bank assets have risen from 1.5% and 2.3% respectively in 2009, to 6.5% and 7.8% at end 2014 and February 2015 respectively. Any period of prolonged, significant peripheral stress would almost surely lead to some, perhaps significant, widening in bank credit spreads.
As for the ECB’s OMT programme, it has never been tested and it is not quite the pure “lender of last resort” backstop many in the market have come to believe it to be. To start, ECB OMT purchases come with significant conditionality. Any country seeking this assistance must apply for a programme, which would almost surely come with fiscal and structural reform prescriptions.
Greek exit and an official sector default would be new precedents
The biggest risk for contagion, in our view, is that the Greek “no” vote would most likely set in motion two precedents – an exit and default of official sector debt – that have never really been stress tested in the euro zone, either technically, or perhaps more importantly, politically.
Greek default would have a non-negligible effect on EA balance sheets…
As we have said in the past, a default on official sector debt would be large, but technically manageable, at about EUR195bn in bilateral loans and EFSF/ESM loans. In addition, SMP bonds held by the ECB amount to EUR27.7bn and Intra Eurosystem liabilities (mainly Target 2) amount to EUR118bn. Altogether, the official exposure to Greece amounts to about EUR340bn, nearly 3.5% of EA’s GDP, sizeable but probably manageable [ZH: and enough to push the Eurozone into a depression if the entire liability is written off].
... while a default opens up a host of political risks that remain unanswered
A default on the European loans could create considerable political backlash in EA countries against further support for periphery economies. Right-wing parties, such as AfD in Germany, Front National in France, Party of Freedom in the Netherlands, and True Finns in Finland, have repeatedly opposed bail-outs to periphery countries, especially to Greece. But even more moderate parties may question the bail-out mechanisms as the Greek default of 2012 was meant to be a one-off. Smaller countries are also unlikely to take it lightly as; as a percentage of their country GDPs, these countries would bear a larger share of the burden (eg, the Baltic countries).
All of this puts into perspective today's ECB decision to raise Greek haircuts, because as Goldman noted two weeks ago, it appears to have ultimately been the ECB's intention to launch a controlled Grexit contagion, one where Europe will see a steep but not too dramatic drop in its GDP, and perhaps a triple-dip recession can be avoided once more with some new changes in the definition of what GDP is, all so Mario can pull a Kuroda from October 31, 2014 and increase the ECB's QE just so European stocks rise higher, and just as importantly, the EUR slides even more (some 7 figures according to Goldman) toward parity which make both Europe's - really Goldman's - bankers delighted when gettting their year end bonus, and keep Germany's exporters happy.
As for the collateral damage, i.e., millions of broke Greeks who just lost everything, you know what they say about making a QE omelette.
Curiously, the German government hasn’t published estimates of how much it could lose in case of a default, arguing that this scenario could unfold in too many different ways. However, as the WSJ reports, according to the Munich-based Ifo economic institute, total German exposure to Greece, including the loans and a host of other liabilities, at €88 billion while S&P estimates it at €91 billion. This is in line with the estimate shown above.
According to Jens Boysen-Hogrefe, economist with Kiel-based institute Ifo, the hit “would hardly be noticeable for Germans." He may be right, but where he is wrong is looking at Greece as an isolated case: since Europe is, or rather was, a union, one has to evaluate the combined impact of a third of a trillion in impaired assets across the Eurozone. For the vast majority of European nations, the effect of a "write-off" of 3-4% of GDP would be sufficient to launch a depression, which would then promptly drag Germany lower as well, adverse impact (and thus quite welcome to Germany) on the EUR notwithstanding.
We just hope that the ECB has done its math right and what it believes will be the contained demolition of Greece does not spiral out into an out of control tumble of dominoes, because not even a hollow "whatever it takes" threat from Draghi would offset that, especially if and when the deposit run moves from Greece to Italy, Spain and the rest of the Europe.
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Need to put the USA on that chart.
Just so we can see how bad things really are.
Greece exit turns PIIGS into PIIS (pronouced PISS) which is what markets will be doing all over themselves once the contagion starts leaking.
Greece, Puerto Rico are the leading edge of the demographic and population winter we are entering...but check the engines of growth, China, Brazil, and soon India also facing negative birth rates.
As population growth slows, as credit growth slows, interest rates alreaddy at ZIRP...the only things left are government debt, more CB leverage, and derivatives beyond belief. These are filling the void...but an inflection point is likely here and going to hit us sometime in '15.
http://econimica.blogspot.com/2015/07/global-us-population-growth-and.html
At 2.4% of GDP it turns out that Greece itself is least exposed to the Greek default. Other than Irelands piddling 1.5% exposure.
So funny...
It would be well worth the time for readers to check out today's coverage by Martin Armstrong concerning the situation on the ground in Greece.
As opposed to DOOM, the majority, at least for the moment, are in great spirits, merchants are accepting credit cards, suppliers are honoring contracts and there are not massive lines at ATMs. [Granted, they do not have a sizeable dindu contingent going nuts and burning their own neighborhoods at the mere thought of freeshit cutbacks...., but, whatever.]
http://www.armstrongeconomics.com/archives/date/2015/07
He may be hated on ZH for his views on gold, but his insights on the Greek situation are well worth your consideration.
Well, gold is the only truth in this mess...
Agreed.
"Hi...I'd like to order a truckload of massive, amorphous "whatever it takes" bazookas, please. Yes...rush delivery, please!"
Ireland sagely went into its own Troika program at around the time of the Greek "rescue", thus reducing (but not, of course, eliminating!) its share of the Greek "rescue". Yes, you couldn't make it up.
It's all a hoot and a hollar until the devaluation of the dollar. But if the US still holds most of the Gold, it might soften the blow. Since I have to transact in dollars I hope the USD stays stable. But in the end, like ALWAYS, the outcome will be who has the Gold? The EU holds like 10,000T of Gold combined between its members right? How much of that 10K T is being physically stored on US soil? If everything comes crashing down, would the US re-patriot that phys? My imagination resists that possibility.
"The EU holds like 10,000T of Gold combined between its members"
What would happen if they unleashed the gold price?? Suddenly solvent?
fukem all.... fukem....
The FED has us on a hook for $4.7T.
Sure, sure... ...but so long as you brought it up, who is behind the Fed exactly? Sounds like a good excuse for a full fucking audit. Sorry, I don't see that happening, ever.
Kicking Greece out is the only way to AVOID contagion.
Otherwise, all indebted countries will want their debt "forgiven".
Interesting that Greece finds their debt to the EU "odious", but can't understand EU finding further loans to them odious.
Contagion unlikely after the others see what Greece will be going thru.
I believ this is a "contagion" too and not a set of falling domino's ala Wall Street 2008.
"If Europe defaults on their zero percent debt ALL DEBT BECOMES SUSPECT."
And....SURE AS SHIT...Puerto Rico coughs up a 68 BILLION dollar hairball.
So now everyone is defaulting to the dollar itself?
Bwhahahahahaha
Good luck finding any....
No worries abut the USA. Just overheard the guy in the next cube who openly said "oh, that greek thing can't happen here. We are a lot better managed than they are."
I kid you not. He also has that empty look in his eyes - the one where he gets up every day baffled at the concept that he doesn't know whether to take a shower or take a shit. And sadly, he votes.
Ask him what's new with the Kardassians. I'm sure he knows.
I bet he procreates too...the bastard!
One of the talking heads on Bloomberg this morning was talking to a former Greek treasury official and the guy mentions the possibility of Bail-ins, So of course the talking head ends the interview with "your the first optomistic person I've talked to today." We all know who bloomie answers to.
but we have a secret base on the Moon where we've been mining gold..... HA-HA.
https://www.youtube.com/watch?v=9jzlUEpXK48
From the 40 minute mark - dominoes just waiting to go.
DavidC
just BTFD
It looks like they left U.S.A off the domino map. If everyone in Europe goes down, The U.S. Will soon follow..
I see corked boots and I had the same thought. No Western country is an island at this point.
The first in the line up is Ireland which happens to be an island ;-)
The $/EURO (and banks) is more joined at the hip than many think. China going nuts with Yaun stuff impacts us little.
A collapse of China WILL GET THE ATTENTION IT DESERVES.
"Greece" simply makes no sense to me...not what the Greeks (and soon many others) just did...but the oddity of defaulting to the IMF.
That wasn't "Greece" that missed that payment...that was the E....C.....B!
"And now folks are speculating as to whether the ECB will get paid."
Really?
Wow...far oit dude. Pass the popcorn AND fhe bong!
The actual loss due a Greek bond default is small compared to high interest rates that Western countries will have to pay to borrow money in the future. No more NIRP. No more ZIRP.
Good luck servicing your sky-high debt at positive, real interest rates.
No debt to "service" after a jubilee!! Fuck, the bankers/financiers would have to actually work for a fucking living...
sounds good to me.
If your Government is REALLY REALLY SMALL maybe.
I mean...once you default to the IMF....well, the phone was ringing off the hook right back to them in one week!
"Sorry, NO DOLLARS FOR YOU!" And off to Moscow Ms LaGarde goes...
"rules", LMFAO!!! Ask John Corzine and Lloyd Blamkfein about "rules"...
"Rules" are 4 the little peeples.
So is Honesty and Integrity. Lest the poor steal back what was stolen from them.
Hang those mother fuckers.
Whatever the numbers the fact remains. Most of the debt is fake. It was a creation of the fiat currency system, no different than the US dollar. It is criminal. It is a taking without any value. It is a violation of the 5th amendment. Our "money" was imposed on us through a court packing scheme you never heard of. Such is the way they operate. http://www.thetruthaboutthelaw.com/they-make-you-use-money-that-is-backe...
^^^this, moreover, you cannot get blood from a stone. If the fuckers push too hard they will slit their own throats as more and more people dig into all the bullshit "mark to fantasy" accounting.
I put forth the proposition that the bankers/financiers have been their own undoing as they are nothing but overcompensated useless middlemen between the printer/computer (where "money is now created without real work) and the producer/consumer in the real economy.
Congrats guys, here's to hoping you fuckers make good fertillizer.
That is my thought. They created a system that requires perpetual growth that they could skim off of, and perpetual growth is flat out not possible. The less growth, the more they have resorted to fraud to keep the system going, but there will come a day when, even with the fraud, physics will kick the fuck out of their ponzi scheme.
The sad part in all of this is, when the food supply gets less reliable, most people wouldn't come up with the idea of growing their own. They'll have to be told, or see somebody else doing it.
Golf clap for the boyz... much as i hate to say it , a 15 year long euro ponzicon was quite a feat !
Looks like Mutti is gonna brazen it out.
Will Tsipras now call their bluff inspite of Yanis's departure?
Greece must not back down if ECB/IMF/MUTTI get tuff.
Just Grexit and tell them to go stuff it. Find your money in other ways.
"one has to evaluate the combined impact of a third of a trillion in impaired assets across the Eurozone" with banks leverage at 26 to 1.
Right, with banks only required to hold about 5% in actual reserves, with a mere 1% of non-preforming other loans yer belly up in a Greek default. With this said, every one of these countries banks are being allowed to operate in a bankrupt state (WITHOUT CONSIDERING the Derivative bomb going off) . Do you have money in any of these countries banks? Or, are you waiting for your turn to play dumb at the ATM? They are not going to warn you when the window slams shut and the big money gets tipped off and exits at the speed of fiber optic light today. Chose wisely.
And for those of you with a short memory, that G20 meeting in I believe Hawaii a few years back was not for your interest, but legalized the Cyprus bail-in blueprint in just about every western nation Canada and US included. Shoulda listened to what Gramps had to say when he went droning on about the Great depression, If you listened, you know what to do.
I've said it before, but boy did Estonia, Slovenia and Slovakia (and Malta, wth?) get rolled. Thank you for your contribution to Greek recovery ... I mean Eurozone financial stability ... I mean EU-core megabanks, New European model students! Gold stars for you.
Bunch of naive fucks...unless they had their "marching orders".
A bit of both. I'm almost certain there wasn't hitmen or blackmail or suitcases of cash involved. And people really do tend to believe the Union's European-progress-and-prosperity narrative out in small, striving EU countries. (And like most narratives it isn't totally false either.) But the prospect of nice jobs on the massive EU gravy train is also a powerful extra incentive for politicians, economists, civil servants and so on to go with the flow and not look behind the curtain.
when the eastern europe finally arrived to the table, it was time to foot the bill.
United Snakes of Urupp does Greece...again
Onward to the past
https://www.youtube.com/watch?v=yhZWDq2FOvk
So, if the US is supposed to "support" Greece because it is a member of NATO, then will the US "support" all of the bagholders of all things Greek who are also NATO members (or wanna-be NATO members)?
Yes
"Find your money in other ways."
Falak Pema
How about printing it?
Hillary Cliton has a magic rope that can corral in the EU oponents and fix things.
You joke, but her experience with Socks was invaluable in learning to herd cats.
Tyler,
Goto the BIS Website and Joint External Debt Hub - World Bank. Have given many links. These fucks controlling the money issuance are remonetizing. Why? Don't know. Wallstreet has been copying this model since Bernies Madoff last day at Wallstreet movie.
Something more sinister is on the horizon. Electric currency is my thoughts. I hope to be alive when each one of these fucker's are exterminated.
My credit score sucks, but just got offered a credit card at 110% interest, I shit you not...
I can relate with Greece
Is that all? A lot of poor people who get loans are given them at 1000s of percent interest e.g. 1,500% or more
Next domino Spain 56.1% youth unemployment Italy 41.5% youth unemployment. in that order.
"If you do not let the young man be a part of the village, he will burn it down" old paraphrased African adage.
Actually, that adage explains a lot about American cities.
Maybe this will help put "Zero Hedge" in a new, and better context:
I've been doing a lot of reading the last few days, lots of different sites and sources. I'm not a religious guy, but I noticed a lot of talk about the 7 year cycles, the prophecies, and things like that. I read ZH every day and also of course noticed and read the stories about the big banks cornering the paper market for PMs with very short term paper. For some reason I Googled "gold silver bible" and this came up, it's an extremely accurate read, and scared the shit out of me because I started thinking what comes next:
http://www.bibleprophesy.org/goldsilver.htm
I feel like we are nearing some sort of endgame here. The evidence is piled extremely high. Maybe ironically, I picked up some phyzz yesterday but now I'm not even excited about having it. A few weeks ago I couldn't wait to get it, now I could care less.
A few weeks ago I was happy go lucky and hopeful for some sort of way out of this mess. I knew there had to be some sort of economic pain, but I was taking steps that I figured could help me not only survive but also thrive.
There's just way too much going on all at once. Everything is way too fragile right now, and no one can really handle any sort of shock to the system. Think about it: Greece and all the uncertainty there. Puerto Rico. California is in huge trouble, financially but also there is the whole drought and then possible earthquakes. TPP, no one has any clue what is actually going on with that. Same with Jade Helm. The US and Iran are negotiating a nuclear deal, what will come of that? There's lots of speculation about possible asteroids heading our way, too. I don't think it's likely, but of course wouldn't rule it out.
Paper metals markets are rigged, FX markets, stock and bond markets, real estate, and pretty much every single asset class, too. That covers all the wealth there is on the planet. The vast majority of people have no clue, or think you're crazy for pointing this out. They have 0 gold and silver. None. It's gonna be damn near impossible to escape the next few months (maybe even weeks) without some huge pain, even for those of us who think we are prepared.
Governments love to operate on the problem-reaction-solution plan. They either create, or enable the problem (market rigging, false flags, militarized police) and then wait for a reaction, gauge it, react themselves with ever more laws and ever more power, and then propose a solution. People are dependent on government. Even in Greece, people voted "no" and yet they will end up with more government in the end. People are upset at the banks, yet they are lining up outside of them, begging for a few Euros if they are lucky enough to withdraw in time before the ATM runs dry. How have people not figured it out yet? People are begging their biggest enemy for a few scraps. It will only lead to greater control and way worse conditions.
Most ominously, this all very well could lead to a one world government, and then the infamous "mark of the beast." Trust me, even a week ago I didn't care at all, or really even know what that was to be honest, but after some reading, it seems like it is actually coming to pass. They're implementing some sort of plan step by step. Eventually the choice may be to accept the mark, or die.
Hard to go about things with all this weighing on my mind. The pit in my stomach seems to be growing with each day. Anyone have any good news? Reasons to be optimistic, in the short term? I really hope I'm dead wrong on some of this stuff, I don't want to choose between some sort of "mark" and dying.
You say you are not religious but yet are so weakminded that you believe this fucking Buybull bullshit.
I'm not religious in the sense that I don't go to church, or even pay much attention to God or the bible at all. I just was clicking some things and noticed the same things over and over and decided to use my brain to see what I could find. You call it weakminded, I just like to read lots of different opinions and think for myself. It was just interesting to me, maybe not to you.
It is interesting but not accurate. When God speaks to a prophet and says "buy gold of me" He is not talking about the kind you can stack. If you think he is talking about phys, where can I find God's coin shop? I'm not wasting my time looking for it, I already know where to get real gold and I know how to understand scripture much better than the writer of that article.
Charles Darwin wasn't weak minded and he believed in God because dinosaurs are tinker toys in the scheme of things.
He was the first to say, repeatedly, there is nothing mutally exclusive between existence of God and natural selection because we knew about the 2nd law of thermodynamics by 1840. Nobel prize winners have since tried to get around it and all have failed. Not even come close.
The Mathematics keep proving it is totally impossible for us to be here. Yet, here we are. I suppose only weak minded people would cling to a 19th century random Newtonian worldview when the overwhelming evidence just keeps kicking them in the teeth? The last 115 years of science isn't for pussies but give it a try anyway.
Spoiler alert: The universe is really a multi-dimensional quantum universe not a Newtonian one.
How many religion are their in the world ?
For how many millions of years have California had high sismicity ?
Do you think Putin and Russia with it s 10% debt is gonna submit to anyone ?
How many thing in the bible hass been proven wrong by modern knowledge ?
FYI
mixing up a lot of unrelated event and facts and some cookoo prophecy written by charlatans thousands of years ago is uter madness.
There is a way to solve this Euromess with everyone saving face.
The Greek crisis has had thousands of hours of media coverage, but so far no one has proposed/discussed SOMETHING AS SIMPLE AS THIS: http://www.atlanticperspective.com/home/-the-definitive-solution-to-the-greek-crisis
Europe could just park the debt. Say put it out for 100 years then it won't be a problem on any of us. Let the future kids sort it out. 100 years of any kind of inflation would see it become small change
This is the same as writing it off.
Yeh ... it's just the math part that would cause a problem.
EURUSD 1.11
zerohedge retweeted
Pieter Cleppe @pietercleppe 25m25 minutes agoDutch PM Rutte: Greek govt shouldn't ask Eurogroup to respect result of #greferendum: "Then it will be quickly over" http://www.nu.nl/algemeen/4083032/rutte-wil-geen-flutverhaal-van-grieken.html?utm_source=twitter&utm_medium=socialmedia&utm_campaign=nunl_twitter …
You are FEW, the people you don't want to respect are NOT
Even in Weimar Germany the FEW held on. I think the many are too sheep like to ever defeat the few, as much as I would like to see it happen...
OXI voters were not sheep
On Piketty's take on what was good for Germany in 1953 after WW2 and its debt write off should be good for Greece in 2015...here is the proof :
http://www.theguardian.com/business/2015/jul/06/germany-1953-greece-2015...
Piketty does not bluff, he writes economic and geopolitical history.
Piketty is an ideologically blind fool.
Piketty is Krugman, out of a fictional novel called Animal Farm. He gets thrown off the cliff. In a 2015 satirical and twisted way.
it takes one to know one.
But his analysis which was widely acclaimed is based on facts not on ideology; or can't you tell the difference?
WHat I posted above is a piece of economic history post Marshall Plan. Its a link to Historical document.
You seem to have your head so deep in your own ideological prejudices that facts don't matter in your hot air act.
critiques i read of his book are out there for you to read.
he has been shreded so many ways, he's nuthin but a confetti parade.
you embarrass yourself on ZH pushing some amateur hour stuff.
The European Investment Bank (EIB) is the European Union's nonprofit long-term lending institution established in 1958 under theTreaty of Rome. As a "policy-driven bank" whose shareholders are the member states of the EU, the EIB uses its financing operations to bring about European integration and social cohesion.[1] It should not be confused with the European Central Bank.
The EIB is a publicly owned international financial institution and its shareholders are the EU member states. Thus the member states set the bank's broad policy goals and oversee the two independent decision-making bodies—the board of governors and the board of directors.[2]
It is the world's largest international public lending institution.[3]
.
.
Nicely written article! Along with Phoenix Capital's on the same matter, good stuff.
I only hope and pray that Greece gets NO RELIEF...as this "domino" metaphor is spot on.
(it's also comparable to the bubble/disaster caused by the Democrats' Carter/Clinton's Community Reinvestment Act...forcing the house loans to scum who CLEARLY couldn't afford it...just let the a§$h*les fail and move on from there)
And...WHY SHOULD the other European countries NOT ask for the same "special treatment" of their debt, if it were to go through for Greece?!?
LET Greece fail. Let Greece move on...on its own terms.
"... as this "domino" metaphor is spot on."
http://www.zerohedge.com/news/2015-02-11/small-grexit-dominoes-global-crises-grow
From Small 'Grexit' Dominoes, Global Crises Grow
http://www.youtube.com/watch?v=5JCm5FY-dEY
Domino Chain Reaction
http://www.youtube.com/watch?v=8yYWILv91YU
Largest Toppling Dominoes,
Skip to the 2 minute mark, to watch
the record breaking as metaphor???
But wait a minute - I thought I saw something earlier today that German banks were number 1 in expousure followed closely by US Banks. (Perhaps it was Bloomberg).
How about a global debt revolt? Latin America's reaction to the Greek NO vote: http://www.telesurtv.net/english/news/Latin-American-Leaders-Congratulat...
Many in the US have not read Confessions of an Economic Hitman, but the leaders of these countries have. Regardless of what their future will be or how dysfunctional their own centrally planned socialisms, they will be encourged by Greece to stick it their lenders. How many losses can the banksters take? How many multiples of the actual issued principal of the bonds is their CDS exposure?
How Greece Has Fallen Victim To "Economic Hit Men"
While there is no doubt that is correct, the standard problems with presentations like Perkins' are that after his correct analysis of the problems that civilization operates according to the principles and methods of organized crime, he then implies the bogus "solutions" that could somehow be stopped.
In general, that is the background problem behind the superficial analysis of other political problems, which is that those who present relatively good analysis of the ways in which the international bankers are the biggest gangsters, or the banksters, then switch gears to promote silly "solutions," that are based on deliberately ignoring everything that their previous analysis just demonstrated was the case.
Bastiat, as the link you gave articulated: the IMF is basically a financial terrorist organization, because the global political economy is based on the history of the international banksters applying the methods of organized crime through the political processes. There is no reasonable doubt regarding those those social facts. HOWEVER, the general background problem is that after people begin to recognize those facts, then they STILL tend to promote superficial "solutions" based on their analysis never going deep enough to understand how and why the real world has ended up being controlled by the principles and methods of organized crime.
The language that I use to describe that deeper problem is that people want to continue to rely upon the dualities expressed as false fundamental dichotomies and the related impossible ideals, when they switch gears from the analysis that reveals the world is controlled by organized crime, to then proposing "solutions" that would somehow stop that from happening. The methods and principles of organized crime are what best match perceiving human beings as entropic pumps of energy flows. Those are NOT possible to stop. Instead, attempting to promote the impossible ideals about stopping that always backfires badly, and ends up causing the opposite to happen in the real world, which is one of the reasons why things continue to get worse, faster, since there is almost nothing but a core of organized crime, surrounded by controlled opposition groups.
Perkins is merely another example of the ways that reactionary revolutionaries, or controlled opposition, present good analysis of the problems, followed by the same old bullshit "solutions." The civilization we are now living inside is deeply dysfunction due to the degree that the biggest bullies' bullshit language and philosophy of science so totally dominates everything. The banksters are so extremely successful because they are able to control their opposition. As Cognitive Dissonance has stated before on Zero Hedge:
"The absolute best controlled opposition is
one that doesn't know they are controlled."
In my opinion, that is what Perkins presents to us.
I also make the same observation about Bastiat:
In The Law, Bastiat explains that, if the privileged classes or socialists use the government for "legalized plunder," this will encourage the other socio-economic class to also use "legal plunder," and that the correct response to both the socialists and the corporatists is to cease all "legal plunder."
The basic problems are due to perceiving practically everything in the most absurdly backward ways possible. Therefore, it is quite ironic to consider this opinion about Bastiat:
One of Bastiat's most important contributions to the field of economics was his admonition to the effect that good economic decisions can be made only by taking into account the "full picture."
The "full picture" should include the physics, as well as the biological, behind the social.
That "full picture" should therefore, assimilate the profound paradigm shifts which have happened in the physical and biological sciences, while nothing like that has happened in the social science, due to the paradoxical ways that warfare was the oldest and best developed form of social science and social engineering, whose social successfulness was based on being the best at backing up deceits with destruction, and by being the most treacherous. Economics is actually a subset of warfare, which is why economics does not appear to be a science to many people. They fail to appreciate that successful finance being based on enforcing frauds does not stop that from being scientific.
Sorry,
The following is annoyingly repeated several times, because I can not figure out how to make it disappear, since it does not appear when editing my reply? I would delete the following, if I could, but that quote of the article linked above by Bastiat apparently cannot now be deleted?
“The ‘no’ vote in Greece is a victory against the financial terrorism carried out by the International Monetary Fund (IMF).”This content was originally published by teleSUR at the following address:
http://www.telesurtv.net/english/news/Latin-American-Leaders-Congratulate-Greece-on-Referendum-Win-20150706-0006.html. If you intend to use it, please cite the source and provide a link to the original article. www.teleSURtv.net/english “The ‘no’ vote in Greece is a victory against the financial terrorism carried out by the International Monetary Fund (IMF).”
This content was originally published by teleSUR at the following address:
http://www.telesurtv.net/english/news/Latin-American-Leaders-Congratulate-Greece-on-Referendum-Win-20150706-0006.html. If you intend to use it, please cite the source and provide a link to the original article. www.teleSURtv.net/english “The ‘no’ vote in Greece is a victory against the financial terrorism carried out by the International Monetary Fund (IMF).”
This content was originally published by teleSUR at the following address:
http://www.telesurtv.net/english/news/Latin-American-Leaders-Congratulate-Greece-on-Referendum-Win-20150706-0006.html. If you intend to use it, please cite the source and provide a link to the original article. www.teleSURtv.net/english