Posted Jun 5, 2014 by Martin Armstrong
The reason politicians are so dangerous is because they will never admit a mistake. Instead, they dig our grave ever deeper. In truth, they act no different from the management of ENRON. The only difference, they are never prosecuted for their frauds. Nonetheless, human nature is the same and just like ENRON doing everything possible to stay afloat, politicians do the same.
In Europe, the bag of tricks proves to be a bottomless pit for now. Wolfgang Schäuble is trying to cover up a real disaster with the federalization of Europe. He has celebrated the 0.6% economic growth in Greece (higher than France) proclaiming victory. However, looking closer is always required when dealing with politicians. “Under every rock (stone) lurks a politician,” said Aristophanes, Thesmophoriazusae, 410 BC (Greek Athenian comic dramatist (450- 388 BC). Indeed, nothing has changed in thousands of years.
Wolfgang Schäuble is hiding the truth for the 0.6% uptick matters little, for it is a dead-cat-bounce when after the Greek economic output has fallen from 2008 to 2013 by 24 percent and after 28 percent of the Greek population thus became unemployed? Schäuble now wants a third bailout package for Greece in the billions, after celebrating the European Commission’s great success in Greece large headlines plastered by the press who seem now to ever look too closely that read: “Economic stability and fiscal sustainability have been restored” or “Clear focus on growth-enhancing structural reforms.”
However, actually reading the over 300 pages thick recent report by the EU Commission and the ECB on Greece who discover the dirt between the cracks. Indeed, it is now almost impossible to make clear statements about Greece because they are manipulating number way beyond banks in LIBOR. The entire EU primary surplus in the Greek state budget is a clever fraud and manipulation that anyone in the private sector would get 25 years in prison for these days. With the EU elections now past, the truth will start to emerge with the election fraud over.
The Greek state budget shows money still flows into Greece in the billions from the euro bailout fund, the EFSF and the International Monetary Fund. Nonetheless, there is a huge gap, which is estimated in the very report of the Commission and the ECB to be a total of 5.5 billion euros by May 2015.
So how will the EU and Wolfgang Schäuble cover-up this financing gap? The EU Commission and ECB in its report will craft a brilliant scheme. The Greek government’s newly created assets Title sale will be to sell public roads and public buildings that will be used as collateral with an option to buy them back later. But who is going to be the buyer of these assets? The Greek social security funds! In other words, they will now take the retirement funds of the Greek people to bailout the Greek Sovereign Debt liability.
Pay close attention to this maneuver for it is coming to a country near you. There is already step by step plans in the USA. Orin Hatch introduced the Secure Annuities for Employee (SAFE) Retirement Act of 2013 where insurance companies will get to issue annuities with a fixed return while trading with other people’s money. This is a step that will allow the US government to seize all pension funds to protect them and stuff in new debt.
I have been warning that my sources on Capital Hill have been pointing to the next great take-over that is coming – the $19.4 trillion in pension funds. Suddenly, we now have interest of the U.S. Consumer Financial Protection Bureau eyeing up the $19.4 trillion in retirement savings as a measure of course to protect consumer investments with decisions of people with absolutely no investment experience. The fall-back position will be to seize the pension funds and we are about to watch this in action in Europe starting with Greece.