Richard Cottrell’s news dispatch vol. 4: the New World Circus, Greek money-go-round and Bankia woes
By Richard Cottrell
Contributing writer for End the Lie
Welcome to the New World Circus
The French-born IMF managing director Christine Lagarde has been lecturing Greeks to eat their greens and pay their taxes. Asked what Greeks should best do to raise their impoverished country out of misery, she curled a snarling lip and told them to grin and bear it – and cough up.
The problem here is that she doesn’t herself pay one single cent or a dime in taxes herself.
Here’s nice work if you can get it. As an official the global fiscal police force, her salary of $467,940 a year plus $83,760 additional allowance (unstated what this is actually for) is not subject to any taxes, anywhere.
The fragrant Lagarde, who is 56, the age when most Greeks receiving miserable pensions are beginning to starve in their austerity-wracked country, gets a package worth more than Barack Obama earns from the US government.
And he pays taxes.
The queen of the IMF is a festive example of the New World Circus at its cunning, greedy, insouciant best. She and the rest of the clan jet from one 5 star swimming pool to the next, lecturing and hectoring the downtrodden masses on the sins of breathing free air, which is about all they can do under the lash of she and her likes.
Credit: The Guardian, London
The Great Greek Money-go-Round
We are all reading how the globalista are pouring money into Greece to stop the land of ouzo and raisins from going bust and leaving the sacred euro.
Well that’s all baloney. This is actually what happens.
Every two or three days, the big three creditors of hollowed-out Greece, the IMF (see above), the EU and the European Central Bank (ECB) wire millions of euros to a special escrow account at the Athens central bank. It sits there quietly ticking over for another two or three days and then shoots back to the same account at the ECB from whence it came.
What’s really splendid about this magic roundabout is that the ECB clicks 10% interest on the full amount during the loan’s short Greek holiday.
As Thomas Mayer, a senior advisor at Deutsche Bank in Frankfurt, explained, “Greece will not default on the troika because the troika is paying themselves.”
Since May 2010, Greece has received €141 billion from European taxpayers ostensibly to ward off a meltdown that might result in the country abandoning the eurozone. If that happened according to the doomsayers, then the eurozone itself might collapse.
Really? If as we see the entire exercise is nothing more than a scam to pay off Greek bondholders (i.e., Wall Street, the ECB and individual European central banks) then the words ‘bail out’ do not apply insofar as the plight of Greece itself – or its citizens – are concerned.
In effect the Greeks are running on the spot, neither advancing nor retreating.
It gets worse. The misers of the troika are allowing just enough sufficient life-giving nourishment to dribble into the Greek economy to prevent its heart from stopping altogether. The principle is quite simple. In order to continue bleeding the patient, you need to keep him alive.
Credit: New York Times
Spain at the precipice: You can Bankia on it
A scandal of truly massive proportions is about to collapse the Spanish government.
Spain’s largest bank – Bankia SA – is totally insolvent and needs at least €19 billion to stay afloat. The government of the hapless conservative premier Mariano Rajoy has been promising for days that the government would somehow divvy it up.
What he meant of course is that the usual suspects would do the divvying, starting with the ECB.
In a trick worthy of medieval alchemists, the government in Madrid floated the idea of saving Bankia by injecting €19 billion of sovereign bonds into its parent company, which could then be converted into cash at the ECB’s three-month refinancing window. Such procedures are generally filed under P for Ponzi Schemes.
This ploy was intended to avoid directly tapping the bond markets, who are collectively holding their noses at the noxious odors arising from Europe’s sickest (so far as we know as of yet) bank.
Sniffing a very large rat in the form of junk bonds, the ECB issued a succinct two-word response: No deal.
Behind Bankia’s probable imminent failure is the implosion of Spain’s €180 billion property bubble, inflated over the last 30 years.
The entire banking system is rotten to the core with sour loans.
Rayjoy’s government knows full well that the collapse of Bankia would bring down practically the entire Spanish banking structure. It’s about the only thing that he does know.
Hints of the grand scandal to come are like fingerprints plastering the furniture at an English country house murder.
The governor of the central bank has stepped down early, only a couple of days, but it is clear that he was wanted out of the way as the crisis bites.
Rajoy has been waving his arms like Don Quixote tilting at windmills, projecting one batty fix after another.
First he was going to sweep all the rotten loans into one big bad bank, leaving the survivors in the lifeboat with some hope of survival.
Then he started to talk about nationalizing Bankia – which in effect led to the door of the ECB, because there isn’t a bean in the Spanish treasury to speak of.
Rajoy is a hopeless fantasist who understands neither finance nor politics; he is essentially the wrong man in the wrong place at the wrong time. I smell an incoming techno-government.
A Spanish financial collapse, were it permitted, would make Greece seem like a peanut.
Credit: Michael Shedlock’s Global Economic Trends Analysis
UPDATE: Nest egg for pedophile priests, US-style
The Archdiocese of Milwaukee has confirmed that it paid substantial bribes to suspected pedophile priests to clear out of the church.
That comes after a document surfaced in the archdiocese’s bankruptcy proceedings, referring to a proposal first made in 2003 to pay $20,000 to so-called “unassignable priests” who agreed to turn in their holy orders.
The Survivors Network of Those Abused by Priests (SNAP) dismissed the payments as a payoff and bonuses to priests who molested children.
The group is now demanding that the archdiocese release all records involving the payments and for good measure, its overall handling of clergy sex abuse cases.
Wriggling on the hook of the massive global sex scandal engulfing the church, a spokesman for the archdiocese claimed that it was simply a straightforward procedure to help ex-priests adjust to life outside the church.
I’m sure everyone remembers the famous Beatles line: “yeah, yeah, yeah.”
I’d hazard that payments of this kind are illegal and an attempt to interfere with evidence and the course of justice.
The Vatican sees itself above earthly laws but not, apparently, when it comes to good old fashioned grease.
Editor’s note: From an outsider’s perspective, this appears to be somewhat like the situation which allowed a Catholic priest accused of molesting multiple children to leave the church and become a supervisor with the Transportation Security Administration (TSA). In two cases, victims were paid so-called “settlements” and the incidents were quickly swept under the rug.
Meanwhile from Northern Ireland (Ulster) a hideous story has emerged which confirms the dark sickness at the heart of the Vatican.
A doctor and assistants who performed an abortion on a young woman after she was raped have been ex-communicated by Rome, along with the unfortunate victim herself. As for the rapist, he can pop into the nearest Catholic Church to take communion any time he likes.
Credits: Wisconsin State Journal, Belfast Telegraph.
Richard Cottrell is a writer, journalist and former European MP (Conservative). His new book Gladio: NATO’s Dagger At The Heart Of Europe is now available from Progressive Press. You may order it using the link below (or by clicking here – Gladio, NATO’s Dagger at the Heart of Europe: The Pentagon-Nazi-Mafia Terror Axis):
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Edited by Madison Ruppert