Posted Mar 18, 2022 by Martin Armstrong
Boris Johnson in Britain announced a new law that will allow the government to confiscate private assets of those who resist the government under the pretense of Russian Sanctions. Meanwhile, the European Union was also drafting legislation that would allow Brussels to take private property in the event of a pandemic emergency. Of course, Spain passed such a law back in 2015. This has shown the true nature of Europe and why capital will never be safe long-term with their pro-Marxist agenda promoted by the World Economic Forum.
Meanwhile, Europe is in crisis. They are considering creating a sort of Superfund by robbing people’s pensions to fund (1) climate change, (2) green energy, and (3) EU Army. This move is being defended as necessary to protect politicians against the rise of populism (anti-career politicians that took Trump into office). The EU is on Agenda 2030 to slow climate change, and they want to create an EU Army in light of the Ukrainian Crisis. However, Macron has been pushing for an EU army. How to fund this is really the scheme when the negative interest rates have wiped out the European sovereign bond markets.
The idea is that the EU would launch a major Superfund to be funded by pension allocations rather than new taxes. So they will rob the future of people, especially over 40 who have been working all their lives for political objectives to save the careers of politicians. They argue that the security umbrella provided by the US during the Cold War is declining rapidly and this introduces new threats as they continue to agitate Russia and constantly push NATO eastward. The argument is that the US will be more concerned with China than Russia. That does not seem to be the case given all the rhetoric concerning Ukraine, but it is a handy excuse to rob the pensions in the face of a collapsing bond market.
The AUKUS submarine deal brought France’s attempt to sell new submarines to Australia in confrontation with the US. This has been argued that the US became very cold toward Western Europe. In the face of Ukraine, the EU knows it needs to move quickly in like of the Ukrainian crisis.
French President Macron, backed by Italian Prime Minister Draghi who created the negative interest rates nightmare, argued to move swiftly to defend against Italy’s own rise of populism. Hence, they argue that perhaps such a scheme will address all of these concerns that are urgent in addition to an EU Army. The European civil unrest is rising in the fact of total fiscal mismanagement. NATO has even put troops on alert in Italy.
It appears that the politicians WANT war with Russia as a diversion. They desperately need an excuse in the face of a crumbling monetary system where especially the EU is in trouble unable to sell bonds to fund itself or the future. The solution is to rob the pension funds and that will eliminate the need to issue bonds to cover expenses. That move will only undermine the confidence in the EU and result in further civil unrest. The negative interest rates have robbed savers of income since 2014.
The EU is struggling with declining birth rates and an aging population that is enduring already very heavy tax burdens and the decline in youth undermines the pensions. This is why they have been welcoming immigrants for the birth rate is not declining among the migrants suggesting that Europe is changing drastically. This is a global trend that people prefer not to talk about how birth rates are declining. It is impossible to now throw the cost of climate change and an EU Army on top of the current levels of taxation without a popular uprising to overthrow the present governments. An EU Army would mean European-wide taxation. They cannot possibly finance these concerns with higher taxes even on the claimed higher incomes. They have threatened tax havens and hunted the rich worldwide. They are now using Ukraine as the excuse to confiscate private Russian assets that will NEVER be returned.
France is moving to overhaul its pension system and is looking at Europe’s enormous pensions as the source of revenue. The scheme is that all pensions for all workers above the age of 40 must allocate a progressively larger portion of their pension assets. This is how they will create new levels of fiscal stimulus in the EU when negative interest rates have failed and the central bank is unable to stimulate the economy since 2014 when rates went negative.
Using the pensions will replace Quantitative Easing as the entire system is collapsing. With rising inflation thanks to the mismanagement of COVID and now promoting a much-needed war against Russia the hope to keep it just conventional, this level of spending everyone else’ savings they hope will replace the impossibility of selling negative interest rate bonds that NY banks now view as junk.
Welcome to the collapse of Keynesian Economics. As I have been warning – the European Central Banks is trapped and QE no longer works.