December 2012        

Spaniards spot EU-German con job


The Spaniards went mad,” Enda Kenny, Germany’s new Irish Viceroy, might have said recently to the rogues’ gallery of delighted white-collar criminals had he been asked to explain Spain’s enormous debt crisis. To their applause, he had just been made a Teutonic knight and given a bit of metal in recognition of his services to German capital in Ireland.
      And they laughed and applauded when he suggested that Ireland’s debt crisis was caused by the Irish “losing the run of themselves.”
      Current wisdom holds that the bursting of the housing bubble in Ireland and Spain initiated the present crisis in the two countries. Two Spanish legal experts, Manuel Balbé and Yaiza Cabedo, disagree. In an article in Spain’s largest-circulation daily, El País, on 28 November they blame the quasi-criminal collusion of the German government, Deutsche Bank and their accomplices in a plan to suck the EU periphery dry in order to alleviate Germany’s whopping—and seldom talked about—€800 billion debt.
      The rot began in 2000 when, prodded by the German government and Europe’s financial elite, financial transactions were deregulated. Thence Germany’s capitalism joined the “casino capitalism” club, which lacks administrative supervision, where the transmission of privileged information is decriminalised and players need no longer identify themselves.
      This private, opaque stock exchange, based in New York and London, consists in effect of six American and six European mega-banks. All of these have been bankrupted and bailed out by their governments—i.e. taxpayers.
      The true basis of the crisis was the securitisation and resale in the casino of mortgage bonds—guaranteed cash cows for the buyer, according to the seller, who doesn’t inform them that they are certain to default. As an investigation by the US Senate revealed, Deutsche Bank was a major seller of such junk around the world. It knew full well that its clients were going to lose money when the original seller of it to the bank (with which it was in cahoots) went, inevitably, belly up.
      Deutsche Bank was condemned last year by Germany’s Supreme Court for such malpractice. The president of the bank, Josef Ackermann—Merkel’s close pal—resigned, and proposed compensation of €1 billion to buy his silence.
      A confidential report by the German financial regulator (confirmed by Merrill Lynch) valued Germany’s “hoard” of toxic shares at €800 billion in 2009. However, instead of being arraigned, the vampire class and their political collaborators closed ranks and deflected attention to the alleged mismanagement of financial affairs in the EU periphery, especially in the South.
      Many “Anglo-Irish Banks” in Germany were suckered by Deutsche Bank into buying their junk. Hypo Real Estate was “rescued” by more than €100 billion of German taxpayers’ money, and six other big banks followed suit.
      Germany’s second-largest bank, the bankrupt Dresdener Bank, was absorbed by Commerzbank, which received a bail-out of €100 billion, Merkel’s government grabbing 25 per cent of its shares. Commerzbank returned €14 billion of its rescue money last year.
      Such mega-profits can only come from betting in the casino using privileged information supplied by the German government. This is the key to the current crisis of casino capitalism: such rescues and nationalisations have converted the German, British, Swiss and North American governments into bankers, who need their banks to make rapid profits to recover the money injected into them.
      So where do they get the money? From the periphery, aided by European and international agencies under their control. How? Putting ourselves in their shoes, how do we bleed, for example, Spain?
      Firstly, ruin Spanish banks by inveigling them into buying our junk. Then, spread rumours to force increases in Spain’s interest payments. Then again, force the privatisation of profitable enterprises (airports, transport, state lottery, etc.) so that our gang can grab them for a song. Induce a credit squeeze, so that the shares of Spanish transnationals are devalued, so that once again our lads can grab them.
      And the best of all, provoke financial panic—actually a criminal activity; but so what? The law turns a blind eye, so that capital flees abroad.
      In eight months of this year €330 billion fled Spain alone (not to mention Greece, Italy, Portugal and Ireland), winding up in German, Swiss, Dutch and Luxembourg banks—an “unprecedented” windfall according to Bloomberg, the American investment analysts. “Austericide” generates mega-profits for vampires. Sounds familiar?
      The unelected European Commission turns a blind eye to all this infringement of free competition and to the crooked manoeuvres of the gang who control London’s market casino. Likewise to the identities of the vampires.
      EU law is an ass. The EU Court ruled in 2009 that the free circulation of capital could be restricted if it “undermined economic stability of social policy” and the sovereignty of a member-state.
      The economic Germanification of Europe proceeds apace as attention is deflected to financial mismanagement in the periphery. Socialists must be aware, at least, of this massive scam—and that the key to ending it is re-imposition of the regulation of financial dealings, binding on all national governments.
[TMS]

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