The Greeks have voted my dear friends. And as far as we can read, it gets calm on the financial front. Just for the time being as all the comments in all the great papers from Iceland to Spain tell us in their comments. No peace, not even a ceasefire in sight from the battlefront of vein moneymaking. All the markets reacted friendly as they used to call it on this Monday after the election of fate.
When is a war over?
It is over when someone lost. So who’ll will be the loser in this conflict which keeps us all in its grip for five years now. And who started it, what was the gain? All these questions can be answered in a very simple way: The loser has been found already and as in all wars it will be us again.
Yeah that’s right you and me and it doesn’t matter whether you are a rich guy and I am a poor bugger or vice versa. Even if we earn a lot or just enough to keep us going we all pay the price starting in increased VAT, higher consumer prices and falling money value. Some of us will lose their jobs, their houses and their social rights some of us will just have a hard time to bring enough money home to feed the family not to mention to educate the children.
But we are only the collateral damage. We are again just the pawns in a big game played to change the world order. This time we are not only losers in one country, we’re the losers of the whole continent called Europe. It is interesting to ask the question who started this war and for what purpose. Quite a while ago, there was just one ruling currency and just two political and financial blocks in the world. Although the communistic world in financial terms was never a thread to capitalism the socialistic idea was an even bigger threat and it was necessary to work hard to push this ideological world over the edge. The so-called cold war was the right instrument to reach this target. Successful as we all know by now. However, with reaching this target a new thread appeared on the horizon. China became a complete new financial market experiment under communistic rules and soon started to threaten the world currency. At the same time, European countries decided to bring in a new currency, which was not taken seriously, pronounced dead from the beginning. Years later both the facts that the Chinese bought dollars in the billions and the European currency became stronger and stronger made clear this development had to be stopped, especially when it became clear that countries like Brazil and India got stronger.
Now we can say the introduction of papers which were designed only for the purpose to ensure mortgages to customers who surely would fail to pay this mortgages back, was just a financial trick to get the housing bubble bigger and bigger without calculating the end results we all know today. Was it just greed as a motor behind it? It is a fact that greed makes us even greedier but not stupid. Having said that, taking in account what we said before it seems more likely that the motor behind it was more sinister. Two targets in one go: because everybody in the financial world knew the burst of housing bubble would hit countries like Spain or Greece a lot harder than America or Great Britain, it would be easy too, to hit the whole European Community and that single currency so hard that after a few years it would disappear. Not in the whole perhaps, and a few countries like Germany France, Holland and Luxembourg would keep the Euro, but it would cease to be a threat. At the same time huge amounts of money could be made just out of the situation. How that works can be seen in an example transaction like this one: the European Central bank pumps a huge amount of money into Spanish banks. Interest rate 1%. The Spanish banks lend this money back to the government. Interest rate 6%. Another example: Greece has to take a loan of 4.2 billion from the EFSF for bonds bought by the European Central Bank just to get the price up. The price paid for this loan was €840 million to be paid to the European Central bank. Easily to see that this crisis serves this two purposes. First, getting rid of the Euro, and second to create a money machine, which makes sure that money flows into the right financial institutions for decades to come.