Call me Dave has certainly been getting it the neck these past couple of days. He really has mucked up big style this time, has he not?
He made a unilateral decision which could leave Britain sidelined in Europe,and leaves the country as a minority of One!
How could Call Me Dave be so stupid as to think that the EU would stand for him trying to make the City of London some sort of Financial Haven? But what choice did he have with his Euro sceptic bank benchers threatening revolt, and with his pals in the City to look after?
After all the City Financiers are the Tory parties biggest funders, and you don’t go biting the hand that feeds you.
In that tight spot he did the only thing he could do, he used Britain’s veto.He could not agree to the treaty proposals which place tight financial constraints on Bankers,and Countries without losing his job when he came home.He faced being replaced as Tory leader. Self Preservation kicked in before any other obligations.
I am no economist, although I did study economics once upon a time. But what I can say from my own limited understanding, Is that I believe Dave actually called it right, but for all the wrong reasons!
By agreeing to this treaty he would have been handing away the power of the government to have full control over the setting of its budgets,and its hands would have been tied over its ability to make its own economic decisions. The real power over running the country would have transferred from Westminster to faceless technocrats in Brussels, who if they didn’t like how you set your budget, would have the power to demand you change it to their liking.
In effect, welcome to the United States of Europe, with unaccountable Bankers in full control.
But they must do something to avert this awful crisis that Is enveloping Europe,mustn’t they?
Greece has had its Turkey cooked long before Christmas.Italy, Spain, Portugal, Ireland are all in danger of going down the pan. France’s banks are in danger of going bust. If the Euro collapses, British banks will suffer huge losses again! And what is more, UK Ltd is in a worse mess than the lot of them. UK is carrying more debt than anybody. The only reason UK Ltd hasn’t gone down the pan yet, is because It can actually print its own money,which is used globally as a staple currency, and that it has significant assets like North Sea Oil.
The whole global economy is goosed, and international trade is in imminent danger of collapse. If a Country Is stony broke and bankrupt, It wont be in a position to buy goods. Who do you sell to if nobody has the money to buy?
The Euro is in a worse shape than most. The European Bank is not allowed to print more money than it has. Only the Likes of Staple currencies like the Dollar, the Pound or the Yen can do that. If Europe can’t print more money, then it has to find other ways of easing the pressure off the Euro, hence the panic to get this Treaty signed.
This whole cycle of events started off with Financial Traders and Banks going Bust, so how did it happen that we have whole Countries going down the tubes? Surely whole Countries are stronger than Banks, right? Wrong!!
The whole world economy revolves around one thing, Money. Who controls the money? Banks.
Banks spread all that money around all over the world. Banks trade in money, hence why you have Stock Exchanges and Financial markets In Wall street, the City of London, Frankfurt, Tokyo etc.
As they buy and sell money off each other, the value of that money goes up and down depending on what it is bought and sold for every day.They control what the value of that money is. Hence why you find that sometimes your pound is worth more or less when you are going on holiday. Sometimes your pound might buy nearly 2 dollars, meaning you can get more goods for your pound In America.At other times if the pound is not doing well, It might buy just over a dollar, meaning you can buy less for your pound.
Who is doing this? It is the Financial Markets. Who are the Financial Markets? The Financial markets are the Banks! It is the Banks who are trading and setting the rates!
Now, take the situation where Banks gambled badly wrongly. They went Bust! What happens? They stop buying off each other, because they know they would be buying a load of shit! The money is not worth the figure printed on it.It is one massive Pyramid scheme!
All us suckers at the bottom are putting our £10 in,The next bunch of suckers pay their £100 in, but pick up a small amount of all our £10 in return.The next layer pay their £1000 in and make some of the money from those below, so on and so forth, till you get to those sitting at the top of the Pyramid.
They are all safe enough,as long as everybody below thinks its a good idea to keep putting their pennies in. But what happens when these tossers get too greedy? The gamble too much and get found out.
When thousands at the bottom can’t afford to pay in, because they have been borrowing a lot more than they should,and stop paying(default) It destabilises the whole pyramid, news gets out,and thousands more rush to the Bank to get all their savings out. Money that the Bank can’t actually cover, because it never really had it in the first place. A whole load of the money they had was paid out in bonuses to the Crooks at the top, for coming up with more inventive ways to take the peoples money!
So the Banks stop lending as much to Countries or Business’s either. Why? Because they know that they don’t have it,and if found out, they are going down the tubes or possibly even jail, if they happen to be Icelandic Bankers! They also know that they might not get back what they leant. So they stop buying and selling to each other.And Pray to Satan the God of Financial Bankers!
Countries meanwhile are up past their necks in debt. Trillions and Trillions of Debt! How did this happen? Quite simply a case of Countries borrowing Billions each year! They are All Bankrupt! It is only a league table of who is more bankrupt than who?
Look at it like you would a household annual salary. I earn £30,000 a year(in my dreams) From that 30,000 a year, all my maintenance, credit card debts, hire purchase agreements, Insurance,day to day food and expenses over the year actually comes to around £50,000. I am trying to get more business in to sell my goods, and some years I do better than others.I actually might get £60,000 in a year on a good year. the rest of the time, I borrow. I borrow off my Credit cards and loans to get the money I need to make up the shortfall. In return I pay back monthly the rates of interest my Bank charges my credit card at.
If they think my credit is AAA, then I get better interest charges and can borrow more money. But If I start falling behind with my payments, then they lower my credit rating, and I have to pay back more money In interest, and can’t borrow as much.
What happens If I am called Greece? I am well and truly Bankrupt. No Bank will lend to me, and they cut up my credit cards, and they have sent in the administrators to run my affairs. Meanwhile my wife and children hate me for getting them into poverty,and can’t understand why I have been such a bad provider. Particularly when I used to buy them all fancy cars, foreign holidays and a yacht to go sailing in.
In reality, It is all illusion.
The Banks dont have money, they trade on little figures flying across computer screens. Countries dont have money,they use your money by raising taxes and what they have to borrow of the banks. Banks borrow your money which you have earned, and pass it round each other, and charge you money for asking for your money back, or for asking to borrow some money which actually some other persons have given the bank.
Now lets get Bigger. Who are the European Central Bank who is lending money to help out struggling European Countries? Yes..They are the BANKS!
Who Is the IMF,(The International Monetary Fund) who have taken on some of Greece’s Debts, along with other countries like Ireland, then charged astronomical amounts of interest causing these Countries to get even poorer,or struggle to make payments.The Countries in turn impose more taxes and harsher living conditions for their people. Yes, You got it, The IMF are the BANKS!!
Who Runs the World? Its not the Governments, Its the BANKS.
So in Summary. All the Countries are Bankrupt or Deeply in debt.
The Banks have no money of their own, or comparatively little of what they spread around and gamble on. Some have been bailed out several times over, in effect multiple bankruptcies.
So if they are all in such a mess? The World is Financially up shit creek passing the deck chairs around the Titanic.
If its all Funny Money? Why are we standing here moaning. Crisis what Crisis?
This System lives in Crisis, and it suits some to have it so!
Meanwhile as usual who really pays? Not the Bankers or the Politicians…No no no….That would never do.
Its You and I suckers!!!