Tag Archives: IMF

Eurozone chair says personal bank accounts of other countries can also be raided

contagion

Mere days after the Eurozone had proposed to levy 10% of bank deposits in Cyprus, the governments of Spain and New Zealand already began making similar noises.

Sure enough, a day after Cyprus finalized its pact with the Devil Eurozone to confiscate 30-40% of bank deposits that are more than €100,000 ($128,630) for a €10 billion loan in return, a top Eurozone official announced that, if needed, Eurzone will raid the personal bank accounts in other financially-troubled European Union (EU) countries as well.

The Eurozone is an economic and monetary union of 17 EU member states that have adopted the euro (€) as their common currency and sole legal tender.

Eurogroup presidentEurozone Chairman Jeroen Jijsselbloem

Bruno Waterfield reports from Brussels for the UK’s The Telegraph, March 25, 2013, that ditching a three-year-old policy of protecting senior bondholders and large depositors (over €100,000) in EU banks, Jeroen Dijsselbloem, the Dutch chairman of the eurozone, told the FT and Reuters that the heavy losses inflicted on depositors in Cyprus would be the template for future banking crises across Europe.

Dijsselbloem said:

“If there is a risk in a bank, our first question should be ‘Okay, what are you in the bank going to do about that? What can you do to recapitalise yourself?’ If the bank can’t do it, then we’ll talk to the shareholders and the bondholders, we’ll ask them to contribute in recapitalising the bank, and if necessary the uninsured deposit holders.

If we want to have a healthy, sound financial sector, the only way is to say, ‘Look, there where you take on the risks, you must deal with them, and if you can’t deal with them, then you shouldn’t have taken them on.’

The consequences may be that it’s the end of story, and that is an approach that I think, now that we are out of the heat of the crisis, we should take.

We should aim at a situation where we will never need to even consider direct recapitalisation. If we have even more instruments in terms of bail-in and how far we can go on bail-in, the need for direct recap will become smaller and smaller.

I think the approach needs to be, let’s deal with the banks within the banks first, before looking at public money or any other instrument coming from the public side. Banks should basically be able to save themselves, or at least restructure or recapitalise themselves as far as possible.”

By “direct recapitalization,” Dijsselbloem means a direct bailout of a heavily-indebted and financially-insolvent EU country by the three-headed Cerberus of the EU, European Central Bank, and International Monetary Fund.

The announcement is highly significant as it signals the mothballing of the euro’s €700bn bailout fund, the European Stability Mechanism (ESM), which Spain and Ireland wants to be used to recapitalize their troubled banks.

The eurozone had been planning to roll out the ESM as a “big bazooka” in mid-2014 that could help save banks and prevent financial turmoil in countries such Spain or Italy, a development that has been delayed by German resistance.

Although last night Dijesselbloem tried to row back from his “contagion” comment, he’d already made his point to countries like Ireland and Spain that had been hoping to access the ESM in order to restructure banks without killing off their financial sector by inflicting huge losses on investors.

Meanwhile, banks are still closed (on “holiday”) in Cypriot, until Thursday. Cypriot President Nicos Anastasiades made happy talk, saying that Cyprus could now make a fresh start after having come a “breath away” from collapse. He also said there would be a criminal investigation into the crisis.

See also:

~Eowyn

Govt confiscates 30% of all large bank deposits in Cyprus

Govthelp

It’s now official: Governments can decide you have too much in bank deposits and, without your consent or even a vote by your elected representatives, simply confiscate steal a percentage of your savings.

Cyprus has just shown rapacious governments across the world how easily it can be done.

After a week of feverish negotiations, the government of Cyprus — a small island country in the Eastern Mediterranean Sea and a member of the European Union (EU) — finally made a deal with the Devil the grand poobahs of the Eurozone, thereby bringing an end, for now, to the financial crisis that had plunged the small country (population: about a million) into riots and chaos.

The Eurozone is an economic and monetary union of 17 EU member states that have adopted the euro (€) as their common currency and sole legal tender.

The crisis began on March 16, 2013, when the Eurozone told the people of Cyprus that as much as 10% of the deposits in their personal bank accounts would be levied confiscated, in exchange for a $13 billion (€10 billion) bail-out of their heavily indebted country to avoid bankruptcy and a banking collapse.

But the proposed levy was resoundingly rejected by the Cypriot parliament. Meanwhile, to prevent a bank run, banks in Cypriot were closed (a “bank holiday”!) and ATM withdrawals limited to €100 ($128) a day.

Jan Strupczewski and Michele Kambas report for Reuters, March 25, 2013, that mere hours before the deadline to avert a collapse of the Cypriot banking system, Cyprus President Nicos Anastasiades clinched a last-ditch deal with the three-headed money lender (EU, European Central Bank, and International Monetary Fund) in return for a €10 billion bailout.

Without a deal, Cyprus’s banking system would have collapsed and the country could have become the first to crash out of the euro currency.

Here’s the deal:

  • In return for an EU loan of €10 billion, Cyprus must raise €5.8 billion from its banking sector by:
  • Shutting down the country’s second-largest bank, the largely state-owned Popular Bank of Cyprus (PBC), also known as Laiki. Thousands of jobs at PBC will be terminated; senior bondholders in PBC will be wiped out.
  • Shifting all PBC deposits below €100,000 ($128,630) to the Bank of Cyprus (BoC) to create a “good bank.”
  • Freezing deposits of more than €100,000 in both banks (PBC and BoC), which are not guaranteed under EU law. About 30% of those deposits will be used confiscated to “resolve” PBC’s debts and recapitalize Bank of Cyprus through a deposit/equity conversion. Those uninsured deposits total €38 billion (more than half of the €68 billion total bank deposits in Cyprus). Eurogroup chairman Jeroen Dijssebloem said the raid on uninsured  depositors is expected to raise €4.2 billion.
  • No across-the-board levy or tax would be imposed on deposits in Cypriot banks, although the hit on large account holders in the two biggest banks is likely to be far greater than initially planned.

IMF chief Christine Lagarde said the agreement was “a comprehensive and credible plan” that addresses the core problem of the banking system and “provides the basis for restoring trust in the banking system, which is key to supporting growth.” Blah, blah, blah.

German Finance Minister Wolfgang Schaeuble said the Cypriot parliament would not need to vote on the new scheme, since they had already enacted a law on procedures for bank resolution. Blah, blah, blah.

Some Cypriots are wary about the deal. Georgia Xenophontos, 23, a hotel receptionist in the capital, Nicosia, sensibly asked, “How long will it last? Why should anyone believe anything this government says?”

But many in the capital appeared intent on enjoying a sunny holiday morning, drinking coffee at pavement cafes and watching camera crews filming people drawing money from bank machines.

Baa….

Flock_of_sheep

See also:

~Eowyn

Confiscation of bank deposits: Can it happen in America?

Cyprus rally

Three days ago, on Saturday, March 16, 2013, the people of Cyprus were told by the grand poobahs of the eurozone that as much as 10% of the deposits in their personal bank accounts would be “levied” confiscated, in exchange for a $13 billion (€10 billion) bail-out of their heavily indebted country to avoid default and a banking collapse.

Cyprus is a small island country in the Eastern Mediterranean Sea to the east of Greece, and a member of the European Union (EU). The eurozone is an economic and monetary union of 17 EU member states that have adopted the euro (€) as their common currency and sole legal tender.

The 10% levy figure is now undergoing furious negotiations. Most likely, Cyprus and the eurozone will settle on a “progressive” levy, wherein small savers will be spared or “levied” a small percentage, while those with 6-figures or more bank deposits will have a larger percentage of their money confiscated. Whatever the confiscation formula, what the eurozone wants is that Cyprus raise €5.8 billion to secure its bailout.

Although the Cypriot parliament must vote to approve the eurozone’s levy — and the latest news is that Cyprus President Nicos Anastasiades thinks parliament will reject the bill — that the levy was proposed at all is stunning. As the Financial Times‘ Wolfgang Münchau puts it: “the eurozone has effectively defaulted on a deposit insurance guarantee for bank deposits” given in 2008 after the collapse of Lehman Brothers to assure depositers “that all savings are safe.”

Analysts including Münchau, Phoenix Capital Research, and ZeroHedge’s Tyler Durden all expect that there will be bank runs, not just in Cyprus but elsewhere in Europe, especially in financially-troubled heavily-indebted countries like Italy and Spain. (Interestingly, Greece isn’t mentioned, perhaps because Greeks have no more money to even do a bank run.)

As Durden puts it: “the bottom line is that the Rubicon has been crossed, and deposits have now been forcefully confiscated in what Europe promises to be a standalone case. What is certain, is that nobody will wait to find out how long it takes before Europe’s class of increasingly more desperate and ill-meaning despots is found to have lied once more (as it has about everything else since the start of the European crisis).”

To prevent bank runs, Cypriot banks will remain closed till this Thursday. Customers can still use their banks’ ATMs but, as in the United States, they are limited as to how much money they can withdraw from the machines — reportedly, up to €500 a day. And as of yesterday, there have been no reports of bank runs in Spain or Italy.

Cyprus ATMPeople lining up to withdraw money from ATMS at the Bank of Cyprus, March 19, 2013. (Photo from Reuters)

How might the Great Cyprus Bank Robbery of 2013 affect Americans?

1. If you have a bank account in Cyprus, your deposits may be “levied” at a percentage depending on how much you have in your account(s).

2. If the levy is approved by Cyprus’ parliament, Americans will contribute toward the $13 billion bailout of Cyprus, thereby adding to our already gargatuan $16+ trillion national debt. Why? Because International Monetary Fund (IMF) Managing Director Christine Lagarde already said she would ask the IMF board in Washington to contribute to the bailout.

With 16.2% of the IMF shares, the United States is the largest shareholder or contributor among the 187 nations who belong to the fund—even though its managing director has always been a European. In addition to America’s 16.2% “share” (i.e., “contribution”) in the IMF, in 2009, Obama proposed and Congress approved a $100 billion U.S. loan to the IMF.

Even before Cyprus, the IMF has joined with the European Union to sculpt bailout packages for Greece, Ireland, and Portugal.  Coupled with loans from the EU, the price tags on the bailout packages came to $157 billion for Greece, $122 billion for Ireland, and most recently, $116 billion for Portugal. Alarmed about this, Congresswoman Cathy McMorris Rodgers (R.-Wash.), the premier congressional foe of spending U.S. tax dollars on IMF bailouts, points out that “The Portugal bailout is half that country’s GDP—$116 billion out of $233 billion. The IMF has refused to provide a reliable number but, given America’s contribution to the bailout, we estimate that our support of the package is equal to writing a check worth $600 for every man, woman, and child in Portugal.” She added that this ratio “was nearly identical for Greece and Ireland bailouts. (See John Gizzi, “Why Is the U.S. Bankrolling IMF’s Bailouts in Europe?,” Human Events, May 2, 2011.)

3. If bank runs occur in Europe, leading to a systemic collapse of European banks and the euro currency, that in turn will trigger a worldwide financial-economic crisis of an unimaginable scale.

4. Can it happen here? Will we wake up one day to be told that our bank deposits are also confiscated? Tyler Durden of ZeroHedge writes that the key thing about what happened to Cyprus is that “the Rubicon has been crossed,” that is, the until-now taboo subject of the forceful “levy” of citizens’ private bank accounts has been broached. As Durden puts it: “the topic of ‘wealth taxation’ is now front and center, and it stars not only Europe, but the US as well. The question then becomes … is there any possibility of Cyprus ‘wealth tax’ recurring on the other side of the Atlantic.”

Durden points out that in the US, other financial assets, namely the stock market, account for a far greater proportion of household net worth than bank deposits. It is therefore quite possible that instead of confiscating our bank deposits, thereby voiding the FDIC guarantee, the government may instead choose to tax 30% of all of your stock holdings, and achieve the same “wealth transfer” result.

Will Congress do this?

Obviously, nobody can answer that question now. However, it was “absolutely certain” as recently as three days ago that the safety of Cypriots’ bank deposits was protected.

Then things changed rapidly.

What is the lesson we should take away from the Great Cyprus Bank Robbery?

Answer: There are no longer any rules, and any assets, any “wealth” saved, stored, and hidden is now fair game.

See also:

Update: Cyprus parliament rejected the levy.

~Eowyn

Unelected Eurozone ministers to confiscate 10% of bank deposits in Cyprus

cyprus

This is sheer insanity and very very frightening.

Cyprus is a small island country in the Eastern Mediterranean Sea to the east of Greece. At 3,572 sq. mi. and an estimated population of a little over 1 million in 2011, Cyprus is the third largest island in the Mediterranean Sea and a member of the European Union (EU) and the eurozone.

The eurozone is an economic and monetary union of 17 EU member states that have adopted the euro (€) as their common currency and sole legal tender. The eurozone currently consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. Most other EU states are obliged to join once they meet the criteria to do so. No state has left and there are no provisions to do so or to be expelled.

The eurozone is represented politically by its finance ministers, known collectively as the Euro Group, and is presided over by a president, currently Jeroen Dijsselbloem.

Like its neighbor Greece, Cyprus is heavily in debt and is teetering on the brink of bankruptcy.

In return for bailing out Cyprus to the tune of $13 billion, the eurozone finance ministers masters want a percentage of the money in Cyprus’ privately-owned bank accounts!

Michele Kambas reports for Reuters, Mar 17, 2013, that the decision, announced yesterday morning, stunned Cypriots and caused a run on cash points, most of which were depleted within hours. Electronic transfers were stopped.

The originally proposed levies on deposits are 9.9% for bank deposits of more than 100,000 euros (US $130,348 at the current exchange rate) and 6.7% on anything below that. Today, the Cypriot government discussed with lenders the possibility of softening the impact on smaller savers by changing the levy to 3% for deposits below 100,000 euros, and to 12.5% for above that sum, a source close to the consultations told Reuters on condition of anonymity.

Whatever the percentage, the proposed levy is expected to raise almost 6 billion euros and has the “blessing” of a troika of lenders from the European Commission, the IMF and the European Central Bank.

But the levy requires the approval of the Cyprus parliament, where no party has a majority. Originally scheduled for today, the parliamentary vote on the measure was postponed for a day until tomorrow, March 18, to give more time for consultations and broker a deal. If parliament fails to approve the levy, Cyprus President Nicos Anastasiades warns, the island’s two largest banks will collapse, including the Cyprus Popular Bank, which could have its emergency liquidity assistance (ELA) funding from the European Central Bank cut by March 21. A default in Cyprus could unravel investor confidence in the eurozone, undoing the improvements fostered by the European Central Bank’s promise last year to do whatever it takes to shore up the currency bloc.

In a televised address to the nation today, Anastasiades said he had to accept the tax in return for international aid, or else the island would have faced bankruptcy: “The solution we concluded upon is not what we wanted, but is the least painful under the circumstances.”

Elected only three weeks ago, Anastasiades said savers will be compensated by shares in banks guaranteed by future natural gas revenues. Cyprus is expecting the results of an offshore appraisal drilling this year to confirm the island is sitting on vast amounts of natural gas worth billions.

The crisis is unprecedented in the history of the Mediterranean island, which suffered a war and ethnic split in 1974 in which a quarter of its population was internally displaced. With a gross domestic product of barely 0.2% of the euro bloc, Cyprus had applied for financial aid last June, but negotiations were stalled by the complexity of the deal and the reluctance of the island’s previous president to sign.

Making bank depositors bear some of the costs of a bailout had been taboo in Europe, but eurozone officials said it was the only way to salvage Cyprus’s financial sector and promised that the levy would not set a precedent. In Spain, one of four other states getting euro zone help and seen as a possible candidate for a sovereign rescue, officials were quick to say Cyprus was a unique case. A Bank of Spain spokesman said there had been no sign of deposit flight.

International Monetary Fund Managing Director Christine Lagarde said she backed the deal and would ask the IMF board in Washington to contribute to the bailout.

According to a draft copy of legislation, if a bank account holder in Cyprus fails to pay the levy, it would be a criminal offense liable to three years in jail or a 50,000 euro ($65,174) fine.

Those affected will include not just Cypriots but also foreigners who have bank deposits in the island. One of the foreigners is Chris Drake, a former Middle East correspondent for the BBC who lives in Cyprus. He told Reuters, “I’m furious. There were plenty of opportunities to take our money out; we didn’t because we were promised it was a red line which would not be crossed. I’ve lost several thousand.”

British finance minister George Osborne told the BBC on Sunday that Britain would compensate its 3,500 military personnel based in Cyprus.

Many Cypriots, having contributed to bailouts for Ireland, Portugal and Greece – Greece’s second bailout contributed to a debt restructuring that blew the 4.5 billion euro hole in Cyprus’s banking sector – are aghast at their treatment by Europe. As an example, the daily Phileleftheros said Cyprus received a “stab in the back” from its EU partners.

At the same time, however, Phileleftheros and other newspapers also maintain a failure by the parliament to approve will inflict further damage on the banking system. So Cyprus is caught between the proverbial rock and a hard place.

See my also follow-up posts:

~Eowyn

There really are sex orgies of the global elite

The corrupt-looking man whose picture you see above is Dominique Strauss-Kahn, the 63-year-old economist, lawyer, politician, member of the French Socialist Party, and former managing director of the International Monetary Fund (IMF).

He resigned in disgrace from the IMF last year when a New York hotel maid accused him of sexually assaulting her. Although that case fell apart, Strauss-Kahn still faces criminal charges of ties to a prostitution ring in northern France. His legal defense is at once creative and cocky (no pun intended) — that the authorities are unfairly trying to “criminalize lust.”

In an otherwise humdrum article about Strauss-Kahn in the New York Times on October 14, 2012, reporters Doreen Carvajal and Maia de la Baume dropped this fascinating little bombshell:

That defense and the investigation, which is facing a critical judicial hearing in late November, have offered a keyhole view into a clandestine practice in certain powerful circles of French society: secret soirees with lawyers, judges, police officials, journalists and musicians that start with a fine meal and end with naked guests and public sex with multiple partners. [...]

The exclusive orgies called “parties fines” — lavish Champagne affairs costing around $13,000 each — were organized as a roving international circuit from Paris to Washington by businessmen seeking to ingratiate themselves with Mr. Strauss-Kahn. Some of that money, according to a lawyer for the main host, ultimately paid for prostitutes because of a shortage of women at the mixed soirees orchestrated largely for the benefit of Mr. Strauss-Kahn, who sometimes sought sex with three or four women.

But such orgies are not just for Strauss-Kahn because the NYT article proceeds to quote him in an interview with the French magazine Le Point,There are numerous parties that exist like this in Paris, and you would be surprised to encounter certain people.

The NYT article continues:

The investigation into the prostitution ring in Lille [France] ultimately swept up 10 suspects, including Mr. Strauss-Kahn. They knew each other largely through their membership as French Freemasons, according to Karl Vandamme, a defense lawyer who represents Fabrice Paszkowski, the owner of a medical supply company who played a crucial role in organizing the sex parties. [...] Vandamme…said his client invested around $65,000 in party expenses, betting on the political rise of Mr. Strauss-Kahn.

The banker [Strauss-Kahn]…would typically arrive late for the more than a dozen parties, held over a period of about five years. There was a rhythm to the gatherings, with everyone dressed for a sit-down dinner…. Then over time, couples separated, “kisses were exchanged between one woman and another and between a husband and the wife of a friend” until the guests “all ended up nude.”

“Clandestine” lavish sex orgies of “the powerful,” costing around $13,000 each, “in an international circuit from Paris to Washington”…. “There was a rhythm to the gatherings” where “kisses were exchanged between one woman and another”….

In effect, Strauss-Kahn was describing something long rumored about on the Internet, in books, and in movies — ritualistic (“a rhythm”) sex orgies of the world’s upper elite whom some call the Illuminati.

Here are two segments from director Stanley Kubrick’s last movie, Eyes Wide Shut. The first video depicts a pre-orgy Satanic ritual in a lavish mansion, attended by masked and black-robed elites. Note how the naked young women in the circle exchange kisses (“kisses were exchanged between one woman and another”).

WARNING: nudity and simulated sexual intercourse

The second video shows Dr. Bill Harford, the character played by Tom Cruise, walking from room to room, observing the orgiastic sex:

In a long article on The Kentroversy blog (which I recommend you read in its entirety), Kent Bentkowski gives an analysis of the occult symbolism in Kubrick’s Eyes Wide Shut. Here are excerpts from Bentkowski’s article:

In 1999, an extremely peculiar film was released by legendary film director Stanley Kubrick, which would end up the sixteenth and final film he would direct in his career. [...] The film, Eyes Wide Shut, was filled with the symbolism that astute researchers have come to recognize as the calling card of the Illuminati, the synarchist group of global rulers, who believe in rule by birthright, and who rule this planet by the ‘iron fist in a velvet glove’ divide and conquer methodology. [...] Once this symbolism is understood, only then does the film begin to make sense. This film is a fitting metaphor for our times, as we face the reality of those among us who are asleep, and those of us who are awake, as our world has fallen under the influences of very dark and evil forces. [...]

At the opening party at Victor Ziegler’s house, Alice Harford [the character played by Nicole Kidman] meets up with and dances with a Hungarian man. The name of this character is Sandor Szavost. This character shares his name with the creator of the Church of Satan, Anton Sandor LaVey. This would be an accurate analogy, as members of the global elite are all dedicated to either Lucifer or Satan. Their religion has them believe that both Lucifer and Satan are good [....] This type of thinking is extremely twisted, and represents what some have called a Satanic Reversal–evil is good, lies are truth, death is life, and darkness is light. [...]

Of the films’ two and one-half hours, the most curious aspect are the thirty-five minutes that take place during Dr. Bill Harford’s trip to the masked ball [...] the Illuminati sex-magick ritual [...] which actually occurs behind closed doors in some of the most exclusive housing in the entire world. [...] The chanting is in reverse, and is of a Romanian priest giving a mass in Latin. [...]

Only four days after Kubrick turned in the final cut of EWS to Warner Brothers, he was ‘found’ dead by his wife. He had no heart trouble, and wasn’t ill before his sudden and shockingly unexpected death. [...] However, according to William Cooper, author of the book BEHOLD A PALE HORSE, and the forty-two hour series on the Illuminati and their Babylon mystery religion entitled MYSTERY BABYLON, stated during the second broadcast of MYSTERY BABYLON, that Stanley Kubrick was himself an initiate of the Mysteries. This helps to explain [...] the MASKED BALL portion of the film, and his shockingly unexpected death [....] in making this film, director Stanley Kubrick may have made the fatal mistake of showing too much truth concerning a group of self-appointed global elite world rulers known as the Illuminati.

Here’s a video showing the Illuminati symbology employed by Kubrick in Eyes Wide Shut:

In her blog of November 13, 2012, “Night of the Long Knives Part 1,” Ann Barnhardt relates what the wife of a U.S. Army flag officer told her about a wife-swapping or swinger party. (Note that when you go to Barnhardt’s site, you’ll have to scroll down until you find that article because Barnhardt does not enable the reading of an individual post.)

When I was a teenager back in Leavenworth, Kansas, I had occasion to become acquainted with a German lady who had just married a US Army flag officer that she met while working as a civilian contractor on a US Army base in Germany. Her husband was transferred to Ft. Leavenworth, which almost all flag officers pass through at some point. She was a strikingly handsome woman and super-sharp. She was very happy and was eagerly trying to get pregnant and start her family, as she was 35 or so at the time.

The last time I saw her, she was in a state of shock. She had left her husband, was filing for divorce, homeless and trying to organize getting back to Germany. Here is what happened.

She had finally become pregnant. She had just found out and hadn’t even told her husband yet. They had been invited to and were attending a party being thrown by the post commander at his home that evening. Most of the upper-echelon flag officers at Ft. Leavenworth would be there. She was very excited and happy that she and her husband were literally now moving amongst the highest levels of the top brass in the US military, and she planned to tell her husband that night after the party that she was pregnant.

They arrived at the party in the gorgeous and huge old home of the post commander. In the foyer, there was a large bowl that all of the men placed their car keys into upon entering the house. She figured that this had something to do with drunk driving protections, as there was certainly drinking at this party. She thought nothing of it.

As midnight rolled around, the party suddenly concluded. All of the couples then moved into the foyer. One by one, the wives stepped up to the bowl full of keys and drew out a set at random. The wives then matched the keys up with their male owners and then left with that man.

It was a wife-swapping party.

When my acquaintance realized what was going on she refused. Her husband was livid.

When she got home she packed a bag and left. The stress of going from being on top of the world and happier than she had ever been to having her marriage destroyed, being betrayed so casually and sickeningly by her husband, and being made essentially homeless and penniless in a span of about five minutes caused her to immediately miscarry the baby a few hours later.

Barnhardt continues in “Night of the Long Knives Part 2″:

Wife-swapping and other perverse, orgiastic activities are extremely common among the US flag officer corps. The level of bizarre sexual depravity we are seeing with [General David] Petraeus and now [General John R.] Allen, is common to the point of being pedestrian. It is exactly the same kind of sodomitical filth that pervades the political class. They are all sex perverts and cheats. Find me a flag officer or politician that isn’t cheating on his spouse or a pervert and I’ll be shocked. Sexual perversion is intrinsic to this class of people. These people are psychopathically insane, because you would have to be psychopathically insane to want anything to do with either the political class OR the flag officer corps today.

I can’t tell you how many emails I have received over the last year and a half from men who have exited the United States Military as either a Captain or Major because they simply could not bear to be a part of the repulsive, honorless, amoral culture. They couldn’t advance because at a certain point you literally have to sell your soul and become a purely political animal in order to climb the ladder.

And are you really surprised? Every single flag officer in the United States Military today is, by definition, an oath-breaking traitor. Barack Obama is not eligible to be POTUS and is almost certainly not a U.S. citizen. And not ONE WORD. Not one word from the flag officer corps. Why? Because they are politicians at heart, and they will never do anything to jeopardize their O-7, O-8, O-9 or O-10 pension packages.

Am I surprised that Petraeus and Allen and the rest are pathetic, pervy fornicators with the common sense of a pile of toenail clippings? Am I surprised that Petraeus was sending dozens and dozens of emails per day to his girlfriend and that their pillowtalk included national security secrets? Am I surprised that Petraeus and Allen have spent their careers walking around with a “BLACKMAIL ME” sign taped to their backs? Nope. These people are imbeciles and psychopaths who implemented and oversaw rules of engagement that have intentionally gotten our boys killed as a literal sacrifice of total submission to islam. Watch this and then tell me what an intelligent and honorable man David Petraeus is:

Like probably a lot of you reading this, I was skeptical about claims of a Satanic global elite, whether it’s called the Illuminati or not, who engage in ritualistic sex orgies and pedophilia (see Nick Bryant’s The Franklin Scandal). But Dominique Strauss-Kahn’s admission of participating in lavish “sex parties” attended by the powerful “from Paris to Washington” should give the skeptics pause.

For Wikipedia’s account of the Petraeus sex scandal, go here. For General Allen’s exchanges of countless flirtatious and suggestive email with a married Florida socialite, go here.

See also:

Update (July 30, 2013):

Vigilant Citizen has an outstanding series of articles on Kubrick’s Eyes Wide Shut. Here are Part 1 and Part 2 of the series.

See also creepy pics from a 1972 mask ball thrown by the Rothchilds in the UK. Click here. Look in particular at the 3rd to last photo — of a table centerpiece comprised of mutilated baby dolls. Hint at child sacrifice? Sick!

~Eowyn

Greek bank runs worsen

The media refuse to call this “bank run,” but that’s what it is.

Reuters reports, June 13, 2012, that Greek banks have seen “a marked increase in the pace of bank withdrawals” as a June 17 general election nears and fears grow that Greece could be forced out of the euro, senior bankers said.

Combined daily deposit outflows from the major Greek banks have reached 500-800 million euros ($631.65 million to $1.01 billion) over the past few days. Deposit outflows at smaller and medium sized banks were running at 10-30 million euros ($12.633 million to $37.9 million).

The “deposit outflows” bank withdrawals include cash withdrawals, wire transfers and investments into money market funds, German Bunds, U.S. Treasuries and EIB (European Investment Bank) bonds.

Another unnamed Greek banker said the withdrawals were manageable and were matched by the Emergency Liquidity Assistance (ELA) program provided by the European Central Bank: “We have stable outflows on a daily basis, which are manageable and covered by the ELA facility.”

Fears that Greece may have to quit the single currency and return to a weak drachma have fueled a steady stream of withdrawals by companies and businesses alarmed at the prospect of seeing the value of their deposits cut sharply.

The European Union and International Monetary Fund have warned that Greece, which has only enough cash to last for a few weeks, must stick to the conditions of the 130 billion euro bailout deal or risk seeing funds cut off.

I wonder where all those “deposit outflows” go?

~Eowyn

Bank runs in Greece as country spirals out of control

Yesterday, May 15, 2012, CNBC reported that Greek depositors withdrew 700 million euros ($900 million) from the nation’s local banks recently.

That’s a straight quote from Greek President Karolos Papoulias, who was citing a conversation he had with Greek Central Bank Governor George Provopoulos. Papoulias admits, “the strength of banks is very weak right now.”

Turns out the $900 million figure is too low.

Tyler Durden of ZeroHedge reports that Papoulias announced this morning that almost $1.27 billion has been pulled from Greek banks in the last 10 days. Papoulias said he had been warned by the central bank and finance ministry that the country faced “the risk of a collapse of the banking system if withdrawals of deposits from banks continue due to the insecurity of the citizens generated by the political situation”.

Durden writes that if Greece defaults on its $1.3 trillion debt, “forget the drivel that you read in the press because it will not just be the sovereign debt but the municipal debt, the derivatives, the bank debt, the corporate debt and all of the obligations of the country that will fall into the sinkhole of no return.”

Attempts to form a government in Greece collapsed yesterday, jolting financial markets at the prospect that leftists opposed to the terms of an EU bailout could sweep to victory in a June election and nudge the euro zone crisis into a dangerous new phase.

Meanwhile, Spain is going down the toilet. This morning the Prime Minister of Spain said that “Spain faces the serious risk of being shut out of the markets.” ZeroHedge sees that comment as the precursor to Spain turning to the European Union and the IMF for help: “In Spain we are faced with bare bones arithmetic where the country cannot bailout its Regional debt and its back debt because they do not have the capital to do either; much less both.”

Take a look at this graph, showing the jobless rate in Spain to be worse than Greece’s (click graph to enlarge):

Greece’s $1.3 trillion debt may seem puny compared to the United States’ $16 trillion national debt, but Greece is a small country. A more meaningful statistic is its debt to GDP (Gross Domestic Product) ratio, which is 120%. That means Greece’s national debt of $1.3 trillion is 120% of its GDP.

Lest you think America is hunky dory, our nationa debt now exceeds our GDP, which economists consider a danger sign. The last time I saw a report, which was in February 2012, the ratio of our debt to GDP was 101%. As a point of comparison, although the ratio increased to 41% at the end of the 1980s, it decreased to a “mere” 31% by 2001, then increased to 62% by the end of fiscal year 2010.

In other words, in less than two years (we’re not yet at the end of fiscal year 2012), Obama and the useless Congress had expanded America’s debt to GDP ratio from 62% to 101%!

~Eowyn

Americans in Deep Denial about Worsening Economy

I woke up at 3 am to this news:

U.S. stocks post worst weekly decline in nearly three years

Other headlines scream:

Back in April, the IMF declared that by the year 2016, in just 5 years, the U.S. of A. will be supplanted by China as the world’s leading economic power, which means that whoever is elected as POTUS next November will preside over the sunset of America.

But, as Mark Steyn notes in his op/ed of Sept 23, Americans are oddly complacent about all this although the net meaning of these headlines is nothing less than the end of the world as we’ve known it. As he puts it:

“But there’s not a lot of sense of America’s looming date with destiny in these presidential debates. [...] On Thursday night, there was a question on gays in the military but none on the accelerating European debt crisis. [...] the curious complacency about the bigger questions is disturbing.

Greece is reported to be within weeks if not days of default. [...] Greece is insolvent, and given its rapidly aging population (100 grandparents have 42 grandchildren) is unlikely to be non-insolvent under any conceivable scenario, no matter how tightly German taxpayers are squeezed to pay for it. By the same measure, so are many other western nations.

On the other hand, attempting to postpone the Club Med welfare junkies’ rendezvous with self-extinction will destabilize internal German politics [...] and strain to breaking point what’s left of the European banking system.

As its own contribution to the end of the world as we know it, the Obama administration has just released a document called “Living Within Our Means And Investing In The Future: The President’s Plan For Economic Growth And Deficit Reduction.” [...] Veronique de Rugy pointed out at National Review that under this plan debt held by the public will grow from just over $10 trillion to $17.7 trillion by 2021.

In other words, the president’s definition of “Living Within Our Means” is to burn through the equivalent of the entire German, French and British economies in new debt between now and the end of the decade.

If this is the best America can do, there won’t be a 2022, not for the United States, or anything that would be recognizable as such. Like REM says, it’s the end of the world as we know it. And, as their split suggests, they no longer feel fine. And nor should you.”

~Eowyn

Economist Says Real US Debt is $200 Trillion

This is truly frightening.

A Boston University economist, Laurence Kotlikoff, maintains America’s national debt is actually much much higher than the already terrible $13.5 trillion. Kotlikoff thinks it’s 14 times bigger — $200 trillion!

~Eowyn

The scary actual U.S. government debt

By Neil Reynolds - Globe and Mail - October 27, 2010

Boston University economist Laurence Kotlikoff says U.S. government debt is not $13.5-trillion (U.S.), which is 60% of current gross domestic product, as global investors and American taxpayers think, but rather 14-fold higher: $200-trillion – 840% of current GDP. “Let’s get real,” Prof. Kotlikoff says. “The U.S. is bankrupt.”

Writing in the September issue of Finance and Development, a journal of the International Monetary Fund, Prof. Kotlikoff says the IMF itself has quietly confirmed that the U.S. is in terrible fiscal trouble – far worse than the Washington-based lender of last resort has previously acknowledged. “The U.S. fiscal gap is huge,” the IMF asserted in a June report. “Closing the fiscal gap requires a permanent annual fiscal adjustment equal to about 14% of U.S. GDP.”

This sum is equal to all current U.S. federal taxes combined. The consequences of the IMF’s fiscal fix, a doubling of federal taxes in perpetuity, would be appalling – and possibly worse than appalling.

Prof. Kotlikoff says: “The IMF is saying that, to close this fiscal gap [by taxation], would require an immediate and permanent doubling of our personal income taxes, our corporate taxes and all other federal taxes. America’s fiscal gap is enormous – so massive that closing it appears impossible without immediate and radical reforms to its health care, tax and Social Security systems – as well as military and other discretionary spending cuts.”

He cites earlier calculations by the Congressional Budget Office (CBO) that concluded that the United States would need to increase tax revenue by 12 percentage points of GDP to bring revenue into line with spending commitments. But the CBO calculations assumed that the growth of government programs (including Medicare) would be cut by one-third in the short term and by two-thirds in the long term. This assumption, Prof. Kotlikoff notes, is politically implausible – if not politically impossible.

One way or another, the fiscal gap must be closed. If not, the country’s spending will forever exceed its revenue growth, and no one’s real debt can increase faster than his real income forever.

Prof. Kotlikoff uses “fiscal gap,” not the accumulation of deficits, to define public debt. The fiscal gap is the difference between a government’s projected revenue (expressed in today’s dollar value) and its projected spending (also expressed in today’s dollar value). By this measure, the United States is in worse shape than Greece.

Prof. Kotlikoff is a noted economist. He is a research associate at the U.S. National Bureau of Economic Research. He is a former senior economist with then-president Ronald Reagan’s Council of Economic Advisers. He has served as a consultant with governments around the world. He is the author (or co-author) of 14 books: Jimmy Stewart Is Dead (2010), his most recent book, explains his recommendations for reform.

He says the U.S. cannot end its fiscal crisis by increasing taxes. He opposes further stimulus spending because it will simply increase the debt. But he does suggest reforms that would help – most of which would require a significant withering away of the state. He proposes that the government give every person an annual voucher for health care, provided that the total cost not exceed 10 per cent of GDP. (U.S. health care now consumes 16% of GDP.) He suggests the replacement of all current federal taxes with a single consumption tax of 18%. He calls for government-sponsored personal retirement accounts, with the government making contributions only for the poor, the unemployed and people with disabilities.

Without drastic reform, Prof. Kotlikoff says, the only alternative would be a massive printing of money by the U.S. Treasury – and hyperinflation.

As former president Bill Clinton once prematurely said, the era of big government is over. In the coming years, the U.S. will almost certainly be compelled to deconstruct its welfare state.

Prof. Kotlikoff doesn’t trust government accounting, or government regulation. The official vocabulary (deficit, debt, transfer payment, tax, borrowing), he says, is vulnerable to official manipulation and off-the-books deceit. He calls it “Enron accounting.” He also calls it a lie. Here is an economist who speaks plainly, as the legendary straight-shooting film star Jimmy Stewart did for an earlier generation.

But Prof. Kotlikoff’s economic genre isn’t the Western. It’s the horror story – “and scarier,” one reviewer of his book suggests, than Stephen King.