Currency Manipulation in the era of Decline
Politics has never had so many clowns on stage, Schauble, Tsipras, Merkel. Not long ago Greece allegedly leaked secret IMF reports when everyone knows the IMF programme for Greece not only went against its own rules but was only supported by the US and the EU. In other words from day one there has been a joint effort to have dual currency control between the US and the Euro. The Wall St crash of 2007/8 led to a massive collapse of the Dollar and a big appreciation of the Euro almost 50% more than when it first appeared.
Russian exports in oil and gas during the first decade of 2000 to the EU led to a massive increases in income for Russia and stabilised it at the same time as the Arab world was being destabilised due to the fake war on terror and US interventions. The collapse of US foreign policy in the Arab world by the end of the 2000 decade meant that if allowed naturally the Euro would have appreciated near enough to 100% of the falling dollar.
Beyond all proportion to its actual economic size and beyond all political expectations Greece became the vehicle through which US currency manipulation would become dominant in appreciating the dollar during in particular the 2012 and 2016 elections. If one traces the rise and flow of the dollar in relation to other currencies one notices that a year or so before America enters an electoral cycle the dollar and stock markets appreciate.
As the EU is an American invention and its leading politicians are vetted and placed in their position by the shadow global governments of the Trilateral Commission and the Bilderberg groups which essentially represent finance capital, the constant and persistent bailouts and talk of GREXIT created the appropriate global climate for investors to restore faith and return to the …dollar.
Despite the fact that the EU and the USA on paper owe around $40 trillion, Greece’s debt of $300 billion which is just chump change in relation to the previous amounts, it has now come to light via the musings of the alleged future US Ambassador to the EU a Ted Malloch that the Germans are now involved in currency manipulation by keeping a deflated Euro. The same is also said of the Chinese. Americas money printing ie QE to the tune of $5trillion since 2008 does not of course factor. As the old adage goes it’s a case of ‘Do as I say not as I do’.
The problem America now faces is how to reflate the Euro to make it less competitive in relation to exports and this of course cannot be done as the IMF-ECB roadshow has only followed one main policy, no subsidies, tax everyone to death and impose economic genocide from one country to the next (Euro periphery). It cannot be done so for the first time Merkel announced the possibility of accepting a ‘two tier Euro’ as if we had a one tier Euro so far (with Cyprus bail ins and Greek capital controls) different interest rates for different countries in an alleged ‘single currency’. So it might be broken up between a Northern euro and a Southern one. Or with the removal of Greece from the Euro hoping the remaining Eurocurrency reflates. The logical thing would be to remove Germany, but logic to the architects of the single currency with 5 different monetary policies was always in short supply.
It is obviously beyond absurd to see Greek politicians (PASOK, ND, Syriza) on tv and on the radio talking about a return to the Drachma as their bosses have told them to prepare public opinion when in reality they don’t know where to turn as their whole political career and promotion has been made on supporting and promoting the Euro. It’s like seeing a hangman become a Buddhist.
The fact of the matter is they created a mess with so much shit that even with the best sewage company on earth they won’t be able to clean this one up. They don’t know what will happen to the stock markets if the Euro is openly breached, they don’t know what will happen if we return to the Drachma. One thing is for sure, history is going in that direction. Grexit is inevitable and with it will come departure from the EU and the departure of all those migrants who arrived in Greece since the fall of the Soviet Union, for a currency only worth for local consumption will no longer serve a purpose in a post globalised era to globalised citizens.
13th February 2017