International Forecaster Weekly

European Power Play As Panic Sets In

Chancellor Merkel looks to the people of the euro zone to legislate away sovereignty, changes to be made as the situation deteriorates, Turmoil among the Europeans, power plays as panic sets in, housing sector falling apart.

Bob Chapman | November 19, 2011

German Chancellor Merkel keeps moving the field of play away from the European Central Bank, and to the people of the euro zone. That is so she can get legislation to remove the sovereignty of EU members. The pitch is, if the new EU is to work all fiscal decisions that will have to be determined in unison by bureaucratic technocrats, all of whom want world government. This way Germany can lead European countries in locked goose step to one-world nirvanas. Incidentally, Britain’s PM David Cameron is going in the exact opposite direction. He sees an opportunity to allow powers to ebb back to national status from Brussels. What Mrs. Merkel is saying is that existing treaties and the ECB does not have a possibility of solving the euro problem.

            In the background we find German Finance Minister Wolfgang Schauble is a driving force behind the plans to run towards EU and fiscal and monetary union. This shows you how deliberately out of touch German politicians are and they seem to care less. They say this is the best way to ensure the EU’s survival, not the euro, the EU. Their plan will eventually destroy any possible solution in the quest to control European nations. As the Dir Spiegel put it so aptly, entering into voluntary euthanasia. What Merkel is up to here is massive changes in the German Constitution and the remaining Constitutions of Europe. Germany has one of the best Constitutions in the world, so why change it to abet world government? Herr Schauble and his Illuminist think tank behind the scenes is the one, which is really making all the decisions. An eminence guise, if you may. We wonder if Herr Schäuble has visions of himself as dictator of the EU? Perhaps these are his elitist orders. His quest along with Merkel’s is increase guarantees for the new ESM, which a majority of his own party rejects. Then again he doesn’t let democracy get in his way. Schäuble is the Illuminist’s main man in Germany and one to be watched closely. We knew Greece had to default two years ago, but so did Herr Schäuble and he told that to Mrs. Merkel.

            Herr Schäuble finding he could not raise enough funds for the EFSF he then recommended derivatives to extend the funds line from $518 billion, nearly half of which was donated by Germany, to $1.4 trillion. This concept at least for now ha fallen into disfavor.

            Supposedly, the only way the euro and the European Union can be saved is by transferring sovereign rights to the EU and amending Germany’s Constitution. As the situation deteriorates, which it is, they expect to use this opportunity to make the changes they want. They expect to turn the next crisis into an opportunity. The first shot would be a German natural referendum on Constitutional changes. The far more conservative Bavarian sister party certainly won’t go along with these ideas and changes. The entire exercise is a loser but Schäuble and the banks will push as hard as possible. In France Mr. Sarkozy is for the plan, but France and its banks are broke and the French government cannot even save them.

            If one is to present another Hitlerian concept one must understand cultural social issues stretching back thousands of years and the anthropology that makes them work. Yackey would have called what they are doing cultural distortion. These people. Schauble and Merkel are not idiots. They are the water carriers for world government. They are blinded by their goals and desires. As we have pointed out in earlier issues the six nations and any others in financial trouble will be cut loose to save the banking systems in the other 11 countries, although that may not be possible. They are willing to accept those odds, if for no other reason that they have known for some time that they cannot save the six. The financial sectors have to be saved at all costs, because this is the seat of elitist power. Saving the people and the economies isn’t even on their agenda. This is happening in the UK and US as well. This is what Occupy is protesting about. A defeat in Germany of these grandiose ideas will go a long way to preserving Democracy in Europe. We see the same forces doing the same thing in the UK and US and hopefully we’ll be seeing their defeat as well.

            There is turmoil among the European ranks, as to weather the ECB should continue to buy Italian and Spanish bonds. The German’s say no, because they fear inflation, which is understandable. They are fearful as well that the ECB could loose its independence. On the other hand British PM David Cameron says that the ECB should step in and save the day. His comment sounds like it came straight from the Fed.

            As we mentioned previously what Germany and France are trying to do is cut loose the financial failures from the euro, consolidate the remaining euro zone and via the ESM remove part of the sovereignty from this probable group of eight by allowing the ESM to make the fiscal domestic decisions of the group. They also want to revise the EU’s Lisbon Treaty that would now include fiscal union. France and Britain want the ECB to guarantee the EFSF. Germany does not. Germany is in a powerful position and has begun to use that power. Mrs. Merkel told Mr. Cameron that if he didn’t agree they’d move on without him. If England ever wanted to leave the EU, this would be the time to do so.

            You cannot maintain democratic control of the group with it operating at two speeds. In the 1950s you had this between the EEC and EFTA. That is why they were merged into the EU. If you have one speed it is easier and that is why Germany wants to dump the weak sisters.

            Here Europe is in a panic crisis and the politicians are jockeying for power. England and Germany want more export breaks, apparently unaware that if present deterioration continues they may not have a euro zone or a EU.

            As Italy and Greece grab the headlines our subscribers right from Slovenia, that their banking system may collapse. There are lots of problems, but the worst we hear is the government’s incompetence.

            Unemployment unofficially is about 15% the housing market is dead, prices are falling and most construction companies have shut down. Late payments by these companies to banks are about 25%. In the residential sector about 15% of loans are behind on payments. As with Greece and Italy, Slovenian bonds are now yielding more than 7% - a clear sign that they are probably on the edge of bankruptcy. As you can see there are many problems within the EU that few talk about, that just adds to the European turmoil.

            For those of you who read Stephen Lendman’s writing in the IF, we thought we would let you know Stephen is headed for Mexico City to participate in an elaborate national televised ceremony, where he will receive a major award from the Mexican Journalist Club. Congratulations, Stephen.


Newt Gingrich made between $1.6 million and $1.8 million in consulting fees from two contracts with mortgage company Freddie Mac, according to two people familiar with the arrangement.

The total amount is significantly larger than the $300,000 payment from Freddie Mac that Gingrich was asked about during a Republican presidential debate on Nov. 9 sponsored by CNBC, and more than was disclosed in the middle of congressional investigations into the housing industry collapse.

Gingrich’s business relationship with Freddie Mac spanned a period of eight years. When asked at the debate what he did to earn a $300,000 payment in 2006, the former speaker said he “offered them advice on precisely what they didn’t do,” and warned the company that its lending practices were “insane.” Former Freddie Mac executives who worked with Gingrich dispute that account.

Gingrich said this morning that the payments were for “strategic advice over a long period of time.” His fees were sent to his consulting firm, The Gingrich Group, not to him personally, he told reporters after a campaign appearance at the Machine Shed Restaurant in Urbandale, Iowa.

“Gingrich Group was a consulting firm that had lots of people doing things and we offered strategic advice,” he said. Gingrich said his campaign would make the contracts public “to the degree we can.


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