Currency Spheres 10-29-09 mpg EASTERN EUROPE: Loans Make the Middle Class Poor A quote...."BUCHAREST, Oct 29 (IPS) - Low-income Eastern Europeans contracting easy consumer loans in the mid- 2000s are now falling below poverty lines." It's like a gigantic Ponzi scheme "process". The EU "expands", puts all of Eastern Europe, its countries and their peoples deeply into debt, which will probably take them twenty years to pay back, especially when they’re being charged ruinous rates of interest, by which time EU+NATO will have expanded into Russia’s CIS states, so they can start the whole "process" all over again. The EU gets what’s left of Eurasia and the US-NRE gets to squat in the Middle East. The Caspian Basin CIS states were slated to go to the US-NRE, at least until the US-NRE ran into a few difficulties, one of which was the recent financial crisis, the other was some really pissed off locals. The US-NRE’s "financial crisis" was the hic-up in its own little PNAC scenario of world wide domination. It was caused by the US-NRE's parasitic class being so stupidly greedy and creating so much faux-money, (derivatives, CMOs, CDSs, SIMs, etc.) to fund their Middle Eastern Empire fling that they came up short and had to go hat in hand to the Chinese, Saudi Royals and the EU, and beg for more time in order to continue murdering more Pakistanis, Afghanis, Iranians....whatever, to keep their now woefully under funded Imperial project on track. They also had to assure the Chinese they wouldn’t default on the bonds, assure the Saudis and the Chinese they wouldn't monetize the debt and depreciate the dollar (that was a lie) and they funneled hundreds of billions of dollars they stole back through all those Fed programs to the EU's Banksters to make up some of the losses they suffered when they bought all those faux-financial instruments from Wall Street's Banksters. (The Chinese and Saudis weren’t that stupid, they put most of their money into US-NRE bonds) The quid pro quo of course being the EU had to send more cannon fodder to Afghanistan. What we have here is a case of "currency empires" or if you want "currency spheres", a variant on the old fashioned colonial empires but still just as deadly. It's a lot less complicated having a "currency sphere" than occupying countries to direct all those little bits and pieces of trade in your favor like the Brits did in India, not when your Banksters can direct everything with just the push of a button, but it still requires countries to be occupied and you do want to make sure you occupy countries that have stuff you can trade or use yourself, like oil and gas for instance. Of the two schemes, the EU’s expansionary plans and the US-NRE’s, it appears for the moment the US-NRE is going to wind up with the short end of the stick. It’s currently spending as much as it did during WWII to shore up the collapse of its own economic Ponzi scheme of bogus paper production along with its increasing military expenditures for several interminable illegal occupations. But unlike the end of WWII when Europe’s, Russia’s and Japan’s industrial capacity lay ravaged and destroyed while the US-NRE stood supreme as the world’s remaining industrial power, the exact reverse appears to be happening with the US-NRE’s industrial base shrinking faster than the “coalition of the willing” ever did in Iraq while the BRIC+Asia countries gain market share and the EU remains relatively stable. And no matter how much script the US-NRE prints and how much it deliberately depreciates the dollar, China can always print and depreciate more and even the EU could fire a few shots in the currency wars if it ever loses its fear of creating rampant inflation. So it appears the US-NRE’s parasitic class is running out of maneuvering room.....again. This despite the recent Q3’09 GDP figures along with a few faint positive trends in the economy. However the bulk of the economic indicators are still pointing to a massive and ongoing credit contraction. One would guess therefore the parasitic class are now turning their collective thoughts to starting their (and AIPAC's) long planned for war with Iran. We'll just have to wait and see. - mpg |