Euro Cracks Against The Dollar As Norway Suspends Payments To Greece
The Euro is taking a dumpster dive against the dollar today. I haven’t really commented on the euro area mess recently… well, because nothing has really changed. It’s still a mess as we said it would be. The daily machinations of political con men are really irrelevant. The fate of this crisis was sealed long ago on some level.
We were the first blogging source in the U.S. I am aware of to write of the coming crisis, if not demise of the euro. Believe me, it’s no great accomplishment. Anyone who understands central banking and monetary economics knew this pig was headed for a fall. Many in Europe knew this was imminent since the European Central Bank’s inception. The only people who ever bought this ridiculous notion of an European Central Bank were Wall Street (that thrives off of the corruption of our central bank), the mainstream media (that is owned by corporations that thrive off of the corruption of Wall Street) and political bureaucrats (Who are in a state of constant bribery to both entities above). When I saw my man Marc Faber remark back before the 2008 collapse that the euro was an honest currency and the dollar wasn’t, I almost wet myself from laughing so hard. Faber let his emotions get in the way of his generally brilliant insight.
Greece is boxed into a corner and news out of the crisis has been fast and furious for months. Greek interest rates were 25% the last time I looked some weeks ago. Each day some bureaucrat in Europe is making a new proclamation with regards to the crisis - debt restructuring, no debt restructuring, default, Greece is going to reissue its own currency, austerity in return for IMF assistance, the European Central Bank will no longer take Greek bonds as collateral in any bondholder haircut and on and on and on. Frankly, it’s all noise. It is a bunch of self-interested power-hungry boobs attempting to protect their particular institution of ego. No one is looking out for the best interests of Greece.
Greece has a simple way out of this. But it involves leadership that has a primary intent of restoring economic democracy to the people of Greece. Greece needs another Georgios Papandreou. Well, and so do we. Or another Teddy or Franklin Roosevelt or someone similar. We wrote when this crisis first started that Greek should default and leave the ECB monetary system. Greece’s massive debt is a result of political corruption just as in the U.S. Greece can still participate in the euro economic zone as Norway does, but in order for Greece’s economy to recover from the massive political fraud and corruption, of which Germany is wildly complicit as we have highlighted, they need to recover their monetary sovereignty.
What ultimately happens as an end state in Greece will more than likely determine how the dominos fall in the other European states in the same predicament. This is more than likely the battle that will determine the war. Bureaucrats and keepers of the status quo would laugh at the thought that the Euro could be replaced by sovereign currencies again. But then the status quo always laughs just before the world as they know it changes forever. How many bureaucrats in Syria, Bahrain, Yemen, Egypt, Tunisia and other failed states saw the massive tidal wave of dissent against corruption in the Middle East? The entire Middle East has been destabilized as the masses seek a voice in their own lives. How many bureaucrats saw the complete collapse of Wall Street three years ago? Why are the crises in Greece or the United States or Ireland or Iceland or Egypt or Bahrain any different? It’s absolutely no different. We all fight the tyranny of corruption and the state. And it’s all tied together. Corruption in the U.S. and Europe keeps failed states in power in the Middle East. It serves political power rather than human dignity and morality.
The cycle of volatility continues.
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