Financial Illiteracy of Those Who Mock Conspiracy Theorists

Article by Anthony Wile via Daily Bell

From Social Psychological and Personality Science (SPPS), a journal from the independent publisher Sage Publications, comes an article that has predictably seen wide distribution on the Internet. It implies that those who believe in globalist CONSPIRACY THEORIES are illogical – even downright nutty.

The article is entitled  "Dead and Alive: Beliefs in CONTRADICTORY CONSPIRACY THEORIES" and the thesis of the article is that people who believe in conspiracy theories eventually become so immersed in them and so mesmerized that they do not realize they are holding contradictory beliefs.
"Conspiracy theories can form a monological belief system: A self-sustaining worldview comprised of a network of mutually supportive beliefs. The present research shows that even mutually incompatible conspiracy theories are positively correlated in endorsement." (SPPS Abstract)
"Conspiratorialists" become so distrustful of "government" and "authority" that they will impute any and every kind of malevolence to them.

Thus it is that people can claim, on the one hand, that Osama bin Laden is "dead" and died years ago, while simultaneously claiming that bin Laden remains alive and that US and Pakistan government authorities are not being truthful about him and his physical state.
Of course, I've never run into anyone, who claims that bin Laden is ALIVE. But it's true that here at the Daily Bell we've run articles explaining that bin Laden probably died years ago.

The SPPS article would likely have you believe this is an outrageous conspiracy theory. But given that FOX news ran a report on bin Laden's death in 2001, and given that Pakistan's former president Benazir Bhutto herself claimed that bin Laden died in the early 2000s (supposedly as the result of an assassination), it doesn't seem so far-fetched to speculate that bin Laden didn't die as the result of a US raid in 2011.
But that's almost minor stuff. Articles like this, despite their scientific patina, are deeply illiterate. Why so? Because invariably such articles won't deal with the bedrock financial illiteracy of current economic and political paradigms.
Imagine if the world were based on lies. Well, unfortunately, that's the truth. The lies go far beyond "who shot JFK" or whether the US government was directly or indirectly involved in 9/11.
When one uses the logical framework of Austrian, free-market analysis to analyze the Way the World Works in the modern age, one inevitably comes to the conclusion that modern society is built around fundamental untruths.
The first one is economic: It is the idea that central bankers can efficiently and effectively set the price of money. They cannot.

Every time central bankers decide on how much money to print or where short interest rates should be, the decisions are "fixing" prices – and price-fixing never works. Price-fixing distorts economies and causes a wealth shift from those who create it to those who don't and may not know what to do with it. Over time, aggressively mis-priced money causes first recessions and then depressions.

The second lie is that laws and regulations are necessary and that they can save society from "anarchy." In fact, anarchy is only the absence of government. That's the real definition. And absence of government does not necessarily imply "chaos." Just as setting interest rates fixes the price of money, so every law and regulation is a price fix as well, preventing someone from doing something within the context of the marketplace. This also constitutes a wealth transfer.
One can have a perfectly adequate and satisfying society without formal government, certainly without the kinds of intrusive and murderous governments we've got today. History is full of examples of societies that flourished with at least minimal government, especially societies where power truly flowed from the bottom up.

The third lie is that government is essential for purposes of defense and defending its citizens. But a quick survey of modern wars shows a disturbing tendency of governments – especially certain Western governments – to foment the very wars that citizens believe they're being protected from.
War is the "health of the state" – the way that those in power consolidate their hold while punishing their enemies using phony pretexts having to do with "treason" and "leaking classified information." Sound familiar?
It is what we call the Internet Reformation that has gradually shed light on the fundamental untruths permeating modern society in both the developed and developing world.

The Internet, like the Gutenberg before it, is a revolutionary device that has allowed people access to information that was hitherto denied or covered up, especially in the 20th century when the power elites control over society was perhaps at its apex.

A conspiracy likely DOES exist. The Internet easily reveals not just facts that illuminate it, but also PATTERNS that show the same command-and-control strategies implemented throughout history, over and over.
It is easy, unfortunately, to mock those who believe in so-called "conspiracy theories" because the truth of what has occurred in this weary world is so extreme and shocking that most people simply cannot believe it. What truly horrifies us becomes a target for mockery. It's a defense mechanism.
What is it about the UN, IMF, World Bank, International Criminal Court, world Health Organization and hundreds of others lesser known globalist facilities that people who deny or decry modern "conspiracy theory" don't understand? 

An entire gamut of globalist entities has been superimposed on the world in the past 75 years. Most recently − only this past week, in fact − the US military held a formal exercise over the skies of Los Angeles using the same black helicopters that conspiracy theorists were mocked for mentioning not a decade ago.
But the biggest issue by far – bigger than even the establishment of the facilities of the New World Order – is the fundamental illiteracy of those who choose to support modern society as it is today and as it has evolved over the past 100 years.

While human societies have always been based on fairly bizarre rituals, it is safe to say that the current crop of behind-the-scenes leaders have raised statist insanity to a new level.
Every part of modern society, from its basic economic building blocks to its liturgical belief in dysfunctional "laws and regulations" to its deep-seated reverence for the manipulated destruction of war, is questionable on a factual basis.

The reality of modern society is increasingly pathological – and the ones with the pathology are those who lead the rest of us along using paradigms that are evidently and obviously dishonest and dysfunctional.
Articles that mock the looniness of "conspiratorialists" need to deal with the fundamental economic and sociopolitical dishonesty of their own assumptions. They should begin by admitting the evident and obvious logical fallacies of the "modern" society they celebrate.

WHY DO CONSPIRACY THEORIES WORRY THE ESTABLISHMENT?
By Ray Storch

Don’t forget the Information Highway:

THE ROMANS created roads in order to move their armies faster and thus became an empire

THE BRITISH created the railroads in order to move their armies faster and thus became an empire

THE USA created the Information highway (Internet) in order to obtain more information and control cyber space and thus became an empire.

In all three cases it gave the civilizations a strategic and political advantage, but at the same time also provided adversaries similar gains. Nevertheless the benefits surpassed the disadvantages, for all three civilizations ended up becoming empires who dominated the world. The downside, as history has proven, is that empires are destined to fall, sooner or later…….

Conspiracy theories Mainstream Media versus Alternative Media 

Why do mainstream media and the political establishment oppose conspiracy theories so vehemently? Could it be because these theories are not so farfetched after all?

The internet turned out to be journalists and politician’s best friend and worst nightmare at the same time, for they are unable to control it. In the good old times one had to “believe” what media reported, without the option to verify the content. Now with the internet and its research options things changed and thus people don’t take everything for grant what mainstream media and the political establishment tries to sell or tell them. 

Thus it comes of no surprise that these entities are becoming increasingly worried and therefore will do everything in their power to portray conspiracy theories, alternative media and information forums etc. as the creation of lunatics and thus something that cannot be taken serious, for it threatens their credibility.



The proof on how uncomfortable mainstream journalism is with conspiracy theories is shown in an article published in PROFIL, an Austrian weekly magazine. The article is in German and reads as follows:
Via Profil.at 

Vom Hören sagen

Oslo, der 11. September und was Barack Obama, CIA oder die Rothschilds damit zu tun haben: Als Nachrichten getarnte Verschwörungstheorien drängen aus dem Internet in den Mainstream. Obskurantismus wird zum Massenphänomen.
Von Sebastian Hofer
 

Manchmal ist das Wesentliche für die Augen leider unsichtbar. Zum Beispiel in Oslo, vor allem in den letzten Tagen. Zum Glück durchschaute Paul Joseph Watson, Blogger und Radiomoderator aus Austin, Texas, im Gegensatz zu allen beteiligten Behörden die Hintergründe von Anders Breiviks Wahnsinnstat sehr schnell, auch wenn sie ziemlich kompliziert waren. In groben Zügen lief die Sache, Watson zufolge, so: Über eine vom britischen Geheimdienst MI5 infiltrierte rechtsradikale Hooligantruppe namens English Defence League wurde Breivik von hochrangigen britischen Politikern und Geschäftsmännern finanziert und instruiert, um Norwegen auf diesem Weg für seine allzu palästinenserfreundliche Nahostpolitik abzustrafen. Belege anbei. Auch ein Einfluss der libyschen Al Kaida sei denkbar, müsse aber noch näher untersucht werden.

Das Online-Forum, in dem Watson seine Sicht der Osloer Anschläge erläuterte, heißt Prison Planet, sieht aus wie ein ganz normaler Nachrichtenkanal und verbreitet doch sehr viel mehr, nämlich die reine, letzte und geheime Wahrheit. Also das, was die etablierten Medien offensiv verschweigen, Politiker bewusst verbergen und konspirative Cliquen hinter dicken Polstertüren zurechtbiegen. Dass diese Wahrheit irgendwie mit dem Ende der Welt (wie wir sie kennen) zusammenhängt, wird dabei gern betont (ohne dabei allzu konkret zu werden) und mit Werbebannern für Wasser-Entgiftungsanlagen, Überlebenscamps und krisensichere Goldmünzen auch marketingmäßig sehr anschaulich aufbereitet. Das eigentlich Seltsame an Prison Planet ist aber nicht seine krude Mischung aus Verschwörungstheorie, Infotainment und blankem Wahnsinn, sondern die Tatsache, dass es sich um ein Massenmedium handelt. Und dass es keineswegs allein da draußen ist.

Im Internet hat sich in den letzten Jahren eine Art Hintergrundrauschen ausgebreitet, ein immer dichteres Netz aus verschwörungstheoretisch unterfütterten Nachrichten, Filmen und Dokumenten, das längst nicht mehr nur Paranoiker und Ufo-Gläubige einfängt, sondern zunehmend den ganz normalen Medienkonsumenten im Visier hat. Über populäre Seiten wie Prison Planet, Infowars oder Zero Hedge, millionenfach heruntergeladene Filme wie die „Zeitgeist“- oder „Loose Change“-Videos, über amerikanische Talkradio-Shows oder internationale Nachrichtenkanäle wie den konspirativ veranlagten Sender Russia Today erreichen Verschwörungstheorien heute ein Massenpublikum. Auch die etablierten Medien können sich dem Reiz der Geheimniskrämerei immer schlechter entziehen. Vor wenigen Tagen berichtete das ARD-Kulturmagazin „ttt“ geradezu euphorisch über den deutschen Publizisten Mathias Bröckers, der eine Verschwörung hinter den Anschlägen des 11. September 2001 wittert. Wohlwollender Off-Kommentar: „Auch zehn Jahre nach den vier tödlichen Flügen, nach dem Tag, der die Welt, unser Denken, unsere Ängste veränderte, gibt es noch viele offene Fragen. Mathias Bröckers stellt sie.“ Und macht damit ein richtig gutes Geschäft.

„Man darf nicht vergessen, dass Verschwörungstheorien meistens auch gut gemachte Unterhaltung sind“, sagt der Freiburger Amerikanist Michael Butter, der seit Jahren zum Thema forscht. „Sie erzählen tolle, spannende Geschichten, wobei man oft nicht genau trennen kann, wo die Wahrheitssuche endet und wo die Geschäftemacherei beginnt. Man darf Verschwörungstheorien jedenfalls nicht damit abtun, dass man sagt: Das sind ein paar irre Paranoiker am Rande der Gesellschaft. Im Gegenteil: Es handelt sich um Massenphänomene.“ Dementsprechend erfolgreich werden obskurante Thesen für einen wachsenden Markt aufbereitet und immer unverschämter auch in die politische Debatte geworfen. Im republikanischen US-Vorwahlkampf wird, angeheizt von den verschwörerischen Thesen der prominenten Talkshow-Moderatoren Glenn Beck und Alex Jones sowie dem Anti-Establishment-Furor der Tea Party, schon seit Monaten allen Ernstes darüber diskutiert, ob Barack Obama nun wirklich und wahrhaftig Amerikaner sei oder nicht vielleicht doch ein ausländischer, mutmaßlich islamistischer Verschwörer. Ein zweites, europäisches Beispiel: Vor wenigen Wochen outeten sich etliche Schweizer Politiker als 9/11-Skeptiker. Auf der Online-Plattform www.911untersuchen.ch äußerten gleich mehrere Nationalräte ihre Zweifel an der offiziellen Version von den Anschlägen in New York und Washington. Der ehemaligen Berner Regierungsrätin Dori Schaer¬ fiel dazu der folgende Beitrag ein: „Offen ist, ob 9/11 nur benutzt, bewusst nicht vermieden oder sogar durch US-Stellen inszeniert worden ist.“

Neben politischen und ökonomischen Interessen hat die gegenwärtige Verschwörungs-Hochkonjunktur aber auch eine mediale Säule, eben das Internet. Denn wirklich neu ist das Phänomen nicht, wie Michael Butter erklärt: „In den sechziger und siebziger Jahren gab es dieselben Theorien und wohl auch dieselbe Menge an überzeugten Verschwörungstheoretikern. Nur taten sie sich damals wesentlich schwerer, ihre Thesen an den Mann zu bringen.“ Im Netz dagegen fallen die traditionellen Kontrollinstanzen weg, das publizistische Ethos funktioniert online nicht oder nach ganz anderen Regeln, die Grenze zwischen Fakt und Fiktion verschwimmt, die Informationsflut wird undurchsichtiger. In diesem Umfeld werden Verschwörungstheorien als regierungskritischer Bürgerjournalismus oder „Alternativer Journalismus“ verkleidet und von „Presseagenturen“ wie dem französischen Alter Info (das mit Vorliebe iranische Propagandabotschaften und Hisbollah-Kommuniqués unter seine Meldungen streut) oder „Nachrichtenkanälen“ wie Infowars verbreitet. Obskure Spinnereien bekommen den Anschein von seriösem Expertenwissen, verbreiten sich in atemberaubender Geschwindigkeit und gewinnen allein schon durch ihre massenhafte Präsenz an Glaubwürdigkeit – ein sich selbst verstärkendes Hörensagen, das auch von der antiautoritären Grundverfasstheit des Internets profitiert, derzufolge das Establishment schon einmal a priori verdächtig ist. Den Soundtrack zum „Truth Movement“ liefern regierungskritische Musiker wie der Wiener Rapper Kilez More, die Werbung für einschlägige Nachrichtenseiten erfolgt per Graffiti. Verschwörung ist auch Popkultur.

In diesem Rahmen verdeckt die Frage „Wem kann man noch glauben?“ leider eine viel wesentlichere, nämlich: „Was sollte man eigentlich wissen?“ Der Politologe Peter Filzmaier erkennt darin ein Symptom von „erschütternd geringer Mediennutzungskompetenz: Viele Leute erkennen den Unterschied zwischen seriöser Berichterstattung und obs¬kuren Verschwörungstheorien schlicht nicht.“ Kein Wunder: Wenn auch in seriösen Medien Information und Entertainment zunehmend zum Infotainment verschwimmen, wenn sich Wissenschaftssendungen mit Ufos und Atlantis beschäftigen und politische Talkshows über islamistische Verschwörungen debattieren, erscheinen auch abstruse Konzepte wie eine von Freimaurern, Illuminaten, jüdischen Bankiers und der Bilderberg-Gruppe angestrebte „Neue Weltordnung“ nicht mehr ganz so abstrus.

Dazu kommt, dass neuere Verschwörungstheorien an ihren vernünftigeren Enden durchaus anschlussfähig für eine rationale Gesellschaftskritik sind. Dass der ehemalige US-Vizepräsident Dick Cheney aufgrund seiner engen Verbindungen zur Rüstungsindustrie auch private Interessen in den Irakkrieg schickte, liefert ebenso begründeten Anlass zu weiterführender Spekulation wie die enge Allianz zwischen US-Politik und Wall Street nach der Bankenkrise 2008. Michael Butter: „Was Verschwörungstheorien verbindet, ist, dass sie in mehr oder weniger verzerrter Form auf echte oder wahrgenommene soziale Probleme hinweisen, zum Beispiel auf ein wachsendes Misstrauen gegenüber der amerikanischen Politik. Auch deshalb sollte man sie durchaus ernst nehmen.“ Der Vietnamveteran, Ex-Wrestler und ehemalige Gouverneur von Minnesota Jesse Ventura, Star der vom US-Kabelsender TruTV ausgestrahlten Reihe „Conspiracy Theory“, garniert seinen soeben auf Deutsch erschienenen Bestseller „Die amerikanische Verschwörung. 9/11 und andere Lügen“ denn auch mit einem Zitat von Albert Einstein: „Blinder Glaube an die Obrigkeit ist der schlimmste Feind der Wahrheit.“

Der schlimmste Feind der Vernunft wiederum ist die Angst. Zum Glück können Verschwörungstheorien auch diese verringern – oder zumindest in geordnete Bahnen lenken. Es mag schrecklich sein, von unbekannten Mächten kontrolliert und getäuscht zu werden, aber eben nicht ganz so schrecklich wie die Vorstellung, dass ein 32-jähriger Psychopath nicht daran gehindert werden kann, in einer guten Stunde 68 Menschen zu erschießen. So etwas kann nicht wahr sein, also muss mehr dahinterstecken. So wie es auch nicht wahr sein kann, dass kein Staatschef, kein Zentralbanker der Welt ein echtes Rezept gegen die Kreditkrise hat. So hilflos kann die Politik doch nicht sein. Also muss sie lügen. Verschwörungstheorien bieten Erklärungen an, schließen Zufälle aus und verringern so die Angst vor dem Chaos. Alles hängt mit allem zusammen, und das hat alles schon seine Ordnung so.

Weniger klar ist die ideologische Ordnung hinter der Verschwörungsaufdecker-Szene. Auf die These, dass hinter den Anschlägen vom 11. September ein Regierungskomplott steckt, können sich amerikanische Rednecks und Schweizer Grünpolitiker, antisemitische Norweger und New Yorker Globalisierungskritiker gleichermaßen einigen. Wo alles auf undurchschaubare Weise mit allem zusammenhängt, wo 9/11, Bankenkrise, Waffenlobby, Freimaurer, Klimawandel, Islamismus und Grippeepide¬mien Teil derselben Verschwörungsszenerie sein können, kann es auch zu seltsamen Allianzen kommen. Die Welt der Verschwörer ist eine Scheibe, die sich so rasend schnell dreht, dass rechts und links schwer voneinander zu unterscheiden sind. Der Freiburger Experte Michael Butter: „Verschwörungserzählungen schaffen Kollektive, von denen man sich zunächst gar nicht vorstellen kann, wie sie zusammenkommen konnten. Wenn man konkreter hinsieht, erweist sich aber die Schlüssigkeit dieses Prinzips: In dem gleichen Grundgerüst können, mit kleinen Veränderungen an den entsprechenden Scharnieren, rechte wie linke Ideologien andocken.“ Auch die wahrste Wahrheit muss schließlich interpretiert werden. Bleibt es bei der Interpretation, stellt das nur ein intellektuelles Problem dar. Dass es dabei bleibt, ist leider gar nicht so sicher. Der deutsche Historiker Wolfgang Wippermann hat diesbezüglich jedenfalls Bedenken: „Wir unterschätzen die Wirksamkeit von Verschwörungsideologien. Dieses Denken ist gefährlich, denn Ideologie ist nicht nur falsches Bewusstsein, sondern auch ein Indikator von realen politischen und historischen Vorgängen. Das wird verwirklicht.“
Andererseits: Das ist der CIA bestimmt schon längst bewusst. Und die hat schließlich ihre Mittel.
1.8.2011

 

Israeli Exports to Turkey rise 42% to equal exports to Germany

What we are made to believe is one thing, what occurs in reality is another. This obviously applies in geopolitics and is one of the causes as to why conspiracy theories becoming increasingly popular amongst a broader spectrum of internet users and thus causes eyebrow rising among the “ruling establishment”.
Take for example the current eco - political rift between TURKEY and ISRAEL. For month now we are made to believe that relations between the two nations are going down the drain, due to the GAZA flotilla incident, (see http://geopoliticsrst.blogspot.com/2011/09/turkeys-middle-east-chess-game.html) and that this rift will have serious percussion's on the Geo-strategic situation in the MIDDLE EAST. Looking at the latest economic trade figures between the two countries it becomes evident that reality is somewhat different then what we are made to believe.

According to latest data, exports from ISRAEL to TURKEY rose 42% to $1.85 billion in 2011, while exports to GERMANY totaled $1.94 billion. This showcases that deteriorating diplomatic relations between the two countries has not affected trade.
ISRAELI exports to TURKEY totaled $132.1 million in December 2011, 51% more than in the corresponding month.
ISRAELI imports TURKEY rose 20.6% from 2010 to $2.1 billion in 2011,
resulting in a trade deficit of $321 million.
ISRAELI exports to EGYPT and JORDAN rose 26% in 2011.
Stats obtained via Globes

Witty Turks

As for TURKEY one should also not forget that it plays a similar game with IRAN. On the one hand TURKEY is in alliance with the USA and the EU in supporting the tumbling of the SYRIAN regime which is supported by IRAN. TURKEY on the other hand, officially at least, does not considers IRAN as being its favorite neighbor but nevertheless assists IRAN to bypass the oil embargo by facilitating INDIA with HALK BANKASI bank transactions so that INDIA is able to conduct its oil trade with IRAN in gold. Last but not least TURKEY seems to keep a political backdoor open by only adhering to sanctions against IRAN’S nuclear program if imposed by the UNITED NATIONS SECURITY COUNCIL, which is a no go for RUSSIA and CHINA will never ratify these sanctions, thus giving TURKEY the leverage to deal with its neighbors according to its eco-political needs.

Current Affairs - Argentina

ARGENTINA NABS IRANIAN-HIZBALLAH CELL, ABORTS THIRD HABAD ATTACK
Via DEBKAfile Sat. 28 Jan 2012


ARGENTINA has captured a three-man IRANIAN-HIZBALLAH cell and is hunting for the rest of the network, according to exclusive DEBKAFILE sources. Its counter-terror police were a step ahead of attacks plotted against several of the 10 HABAD centers in the country, part of a worldwide joint terrorist offensive against ISRAELI and Jewish targets.

The three-man cell was captured in the ARGENTINE resort town of SAN CARLOS DE BARILOCHE, 1,680 kilometers from Buenos Aires, a favorite starting-point for ISRAELI backpackers touring PATAGONIA and the ANDES.
ARGENTINA'S anti-terrorist FEDERAL SPECIAL OPERATIONS GROUP, known as T4, waylaid the three terrorists on tips from US and ISRAELI intelligence. In their possession were incriminating documents and maps.
HABAD hospitality centers and Jewish institutions in the country were then shut down and given extra security guards, as was the ISRAELI embassy in the capital.

In 1992, the embassy was attacked by IRANIAN terrorists killing 29 people and injuring 242. DEBKAFILE'S intelligence and counter-terror sources reveal that one of the things the investigation seeks to discover this time is whether the captured IRANIAN-HIZBALLAH cell was given a safe house, guidance and aid by family members of World War II Nazi criminals who won sanctuary in ARGENTINA.

At the time of the ISRAELI embassy bombing twenty years ago, the IRANIAN and HIZBALLAH terrorists were suspected of working hand in glove with local pro-Nazi elements.  ARGENTINA, GERMANY and ISRAEL never confirmed this.

The terror alert BUENOS AIRES declared this week was also communicated to CHILE, PERU, URUGUAY and MEXICO, in case additional Iranian-Hizballah teams were heading for Israeli and Jewish targets there too.

ORIENT AND OCCIDENT A THIN DIVIDING LINE

 
                       WIND OF CHANGE

ILLOGIC SHIFT IN STRATEGIES OR CALCULATED RISK?

The pace at which the geo political and strategic landscape in the MIDDLE EASTERN region is changing is simply astonishing and at times beyond logic. Thus it comes as no surprise that every mainstream media outlet as well as alternative media sources around the globe speculate on the outcome as well as to the “why”? Thus RUSSIA’S alleged shift of its stance on SYRIA comes as somewhat of a surprise. But then also does the fact that ISRAEL supports a regime change in SYRIA. (see http://geopoliticsrst.blogspot.com/2012/01/syrias-destiny-sealed.html )
According to mainstream media RUSSIA apparently has changed its attitude towards SYRIA by distancing itself from the ASSAD Regime. Other media outlets though report that RUSSIA had just inked a deal with SYRIA selling a considerable amount of fighter jets to SYRIA!

TURKEY’S official stance regarding IRAN is that of hostility but just a few days ago TURKEY announced publicly that it would not adhere to any sanctions against IRAN'S nuclear program unless they were imposed by the UNITED NATIONS SECURITY COUNCIL. So where does that leave TURKEY, pro or contra IRAN?  As of recent, TURKEY’S foreign policies have caused a bit of an uproar among the INTERNATIONAL COMMUNITY, thus making its geo political agenda behind these havoc moves hard to analyze. On the one hand TURKEY strongly oppose IRAN and subsequently SYRIA, but on the other hand it supports INDIA to bypass EU and US sanctions on IRAN by supporting INDIA to bypass the sanctions, for INDIA announced that it would circumvent EU and US sanctions on IRANIAN oil by buying IRANIAN oil with gold. The transactions will allegedly be conducted by two state-owned banks: the CALCUTTA-based UCO Bank, whose board of directors is made up of INDIAN government and Reserve Bank of INDIA representatives; and HALK BANKASI (Peoples Bank), TURKEY'S seventh largest bank which is owned by the government.

These are just a few examples on how the MIDDLE EAST chess game is picking up pace as well as surprise moves, which still leaves us with the question as to why? Here are some hypotheses:

CURRENCY WAR?

Is the MIDDLE EASTERN turmoil really about dollar dominance and private central banking? Was the LIBYAN “intervention” because LIBYA wanted to set up a private gold currency in AFRICA?
Was the idea to create a new currency among AFRICAN and MUSLIM nations to purchase oil and other resources something that provoked the echelons of WESTERN powers because it meant that the dollar would de facto lose its “value”? Such move would definitely shift the economic balance of the world. Establishing a banking system in AFRICA and the MIDDLE EAST, based on ISLAMIC doctrines would create outrage among WESTERN FINANCE POWER jugglers for ISLAM as a faith does not allow to borrow-sell money with interest. Such doctrine would surly cause havoc among the casino finance system currently ruling the markets.

Thus the creation of a Muslim finance cartel and the Islamic GOLD DINAR is something the ANGLO AMERICAN finance cartel wants to make sure does not occur for it would jeopardize their power and influence significantly, especially since the GOLD DINAR currency would be based on large quantities of gold, where as WESTERN currencies are “based on digital numbers” without physical value backing! It appears that there is no "mainstream" currency in the world that is backed by metals, either silver or gold. Less than 150 years ago money was considered to be gold or silver, in other words worth real value.
Recent past has shown that oil producing countries that tired to implement oil trade in other currencies then the dollar faced severe “punishment” from the ANGLOSPHERE oil and finance cartel. Now we read that INDIA is planning to pay for Iranian oil with gold and rumors have it that CHINA will follow suit.
(See http://geopoliticsrst.blogspot.com/2012/01/circumvention.html)

The question is if the ANGLOSPHERE oil and finance cartel really intends to defend dollar dominance at all cost. Looking at the current currency war with EUROPE one might come to the conclusion that they do so indeed. Aside from the currency war with EUROPE one should not forget that the world remains dollar driven and the dollar remains a source of WESTERN power, not to mention that the dollar is still referred to as the worlds “RESERVE CURRENCY”.
SAUDI ARABIA, a key ally of the USA and UNITED KINGDOM, refuses to sell their oil for anything other than dollars.

On subject matter, Anthony Wile from the Daily Bell writes:

The arrangement is perhaps a convincing argument, by the way, against peak oil theories. What are the chances that SAUDI ARABIA just happens to be the ANGLOSPHERE'S biggest producer of oil in the MIDDLE EAST and also the WEST'S strongest ally?
Isn't it more reasonable to conclude that WESTERN powers-that-be have RESTRICTED oil discovery and production around the world? Famously, according to a statement by one of the FORBES brothers last year, there is enough oil in the mainland UNITED STATES to furnish energy for the next 1,000 years. That doesn't even include natural gas (which is still flared off) and coal.
(See also: http://geopoliticsrst.blogspot.com/2012/01/deceiving-tactics.html under the headline: Are claims that crude oil resources are diminishing legitimate or a deliberate lie?)

The world is likely drowning in energy. The scarcities that people fear are generated by the power elite's dominant social themes– the fear-based promotions that are intended to frighten people into giving up power and wealth to globalist facilities such as the UN, IMF and WORLD BANK

In view of these facts here are 3 possible scenarios as to why the current “Strategic Chess Game” in the MIDDLE EAST and NORTH AFRICA is such a decisive one.

1. GEO STRATEGIC SUPREMACY

Looking at the current developments on could argue the entire sabre-rattling is about strategic resources and military-intelligence advantages over RUSSIA and CHINA. The idea, that we are once again face a cold war scenario where the WEST is repositioning itself both defensively and offensively to gain maximum flexibility and power over potential adversaries is imminent. This would also explain the sudden shift of US strategic interests in ASIA.

2. MONETARY DOMINANCE

Bank institutions or “Banksters”, who run much of the WEST’S military industry, intend to “seize” public central banks in order to replace them with private ones, as is the case with the FEDERAL RESERVE in the USA. These private monetary institutions fear that citizen led governments print their own paper money.
This fear seems imminent, for GERMANY announced that will begin to abolish cash transactions step by step from August 2012, putting the EU directive 2009/110/EC (PDF) into practice. (See http://geopoliticsrst.blogspot.com/2012/01/total-control.html)

3. ISLAMIC CRESCENT ARC

The Crescent Arc is a theory which argues that the ANGLOSPHERE intends to spread the war on terror in the MIDDLE EAST and is actively aiding ISLAMIC regimes in order to create this war. While this may sound far-fetched to some, the various regimes that have been destabilized by so-called YOUTH MOVEMENTS (controlled it seems by the USA and BRITAIN) are all SECULAR, where as the replacement regimes are all ISLAMIC. This theory not only seems to apply for the MIDDLE EAST but can also be applied for BOSNIA. The details of which will be described in an article on subject matter on this blog in due course.

CONCLUSION

The ongoing geo-political turmoil in NORTHERN AFRICA, the MIDDLE EAST and IRAN are most likely sparked by the USA and its allies as part of a wider strategy aimed at gaining dominance in the region, in order to create a basis for future quests into ASIA and AFRICA, thereby gaining tactical advantage over its adversaries, the BRICS (BRAZIL, RUSSIA, INDIA, CHINA and SOUTH AFRICA) and other emerging economies, who also claim a slice of the “energy and geo strategic cake”. This coincides with US Asia-Pacific orientation and the need to have a foundation on AFRICAN soil, for the AFRICAN continent is about to become of increased eco – geo political importance for developed nations, a fact that many seemed to have ignored until recently, thus underestimating the potential the continent offers.

Parts of above article contain extracts from Anthony Wile's article “Truth About Middle East is Spreading” published via the Daily Bell.

Circumvention

INDIA TO PAY GOLD INSTEAD OF DOLLARS FOR IRANIAN OIL. OIL AND GOLD MARKETS STUNNED

Via DEBKAfile 

INDIA is the first buyer of Iranian oil to agree to pay for its purchases in gold instead of the US dollar, debkafile's intelligence and IRANIAN sources report exclusively.  Those sources expect CHINA to follow suit. INDIA and CHINA take about one million barrels per day, or 40 percent of IRAN'S total exports of 2.5 million bpd. Both are superpowers in terms of gold assets.

By trading in gold, NEW DELHI and BEIJING enable TEHRAN to bypass the upcoming freeze on its central bank's assets and the oil embargo which the EUROPEAN UNION'S foreign ministers agreed to impose Monday, Jan. 23. The EU currently buys around 20 percent of IRAN'S oil exports.
The vast sums involved in these transactions are expected, furthermore, to boost the price of gold and depress the value of the dollar on world markets.

IRAN'S second largest customer after CHINA, INDIA purchases around $12 billion a year's worth of IRANIAN crude, or about 12 percent of its consumption. DELHI is to execute its transactions, according to our sources, through two state-owned banks: the CALCUTTA-based UCO Bank, whose board of directors is made up of INDIAN government and Reserve Bank of INDIA representatives; and Halk Bankasi (Peoples Bank), TURKEY'S seventh largest bank which is owned by the government.

An INDIAN delegation visited TEHRAN last week to discuss payment options in view of the new sanctions. The two sides were reported to have agreed that payment for the oil purchased would be partly in yen and partly in rupees. The switch to gold was kept dark.

India thus joins CHINA in opting out of the US-led EUROPEAN sanctions against Iran's international oil and financial business. TURKEY announced publicly last week that it would not adhere to any sanctions against IRAN'S nuclear program unless they were imposed by the United Nations Security Council.
The EU decision of Monday banned the signing of new oil contracts with IRAN at once, while phasing out existing transactions by July 1, 2012, when the EUROPEAN embargo, like the measure enforced by the UNITED STATES, becomes total. The EUROPEAN foreign ministers also approved a freeze on the assets of the Central Bank of IRAN which handles all the country's oil transactions.

However, the damage those sanctions cause the IRANIAN economy will be substantially cushioned by the oil deals to be channeled through TURKISH and INDIAN state banks.  CHINA for its part has declared its opposition to sanctions against IRAN.

Debkafile's intelligence sources disclose that TEHRAN has set up alternative financial mechanisms with CHINA and RUSSIA for getting paid for its oil in currencies other than US dollars. Both BEIJING and MOSCOW are keeping the workings of those mechanisms top secret.

TOTAL CONTROL

Deutschland: Ab August 2012 wird Bargeld schrittweise abgeschafft

Bericht von Christine Rütlisberger, Kopp Online

Für Banken, Sparkassen und Geschäfte ist der Bargeldumlauf ein Kosten- und Risikofaktor. Und auch das Finanzamt betrachtet Bargeld zunehmend skeptisch. Bargeldzahler werden in Deutschland nach einem von langer Hand geplanten EU-Vorstoß nun bald pauschal zu Verdächtigen.

In Deutschland sind Scheine und Münzen bei Einkäufen das mit Abstand meistgenutzte Zahlungsmittel. Gemessen am Umsatz liegt der Bargeldanteil bei rund 60 Prozent. Das soll sich nach dem Willen von Politik und Banken schnell ändern. Auch in Deutschland wird nun eine in weiten Teilen der Bevölkerung noch immer unbekannte Richtlinie der EU-Kommission umgesetzt, an deren Ende die Abschaffung des Bargelds steht. Mit der EU-Geld-Richtlinie (2009/110/EG) soll der Weg frei werden für »innovative und sichere E-Geld-Dienstleistungen« ohne Bargeld.

Die EU fordert für alle Bürger der Mitgliedsstaaten die »elektronische Geldbörse in Form einer Zahlungskarte oder einer anderen Chipkarte« sowie »als Speichermedien für E-Geld (…) außerdem Mobiltelefone (mit denen auch bezahlt werden kann) und Online-Zahlungskonten«. Es gibt mehrere solcher EU-Richtlinien. Fasst man sie zusammen, dann wird das Bild klar: Schritt für Schritt wird Bargeld in der EU abgeschafft oder das Bezahlen mit Bargeld sogar verboten.

In Italien dürfen beispielsweise seit dem 4. Dezember 2011 Beträge über 1.000 Euro nicht mehr bar bezahlt werden. Der neue italienische Ministerpräsident Mario Monti treibt den bargeldlosen Zahlungsverkehr unter Hochdruck voran. Monti war zuvor zuständiges Kommissionsmitglied für Finanzdienstleistungen der EU und arbeitete schon vor der Einführung des Euro an den mittelfristigen EU-Plänen, einen beträchtlichen Teil der Barzahlungen in der EU durch Chipkarten und kontrollierte Finanzflüsse zu ersetzen. Alle EU-Staaten setzen die Geld-Richtlinie der EU derzeit unter Hochdruck um.

In Belgien dürfen etwa von sofort an Waren, die mehr als 5.000 Euro kosten, nicht mehr bar bezahlt werden. Der für Steuerbetrug zuständige Staatssekretär Crombez bestätigte Mitte Januar entsprechende Presseberichte. Schrittweise wird die Bargeldsumme, mit der Bürger noch bezahlen dürfen, immer weiter abgesenkt. Das alles wird auch in Deutschland vorbereitet: Im August 2012 geht es los. Lesen Sie, worauf Sie sich jetzt vorbereiten müssen.

Germany to Begin Abolishing Cash Transaction in August 2012 Step by Step

Germany will begin to abolish cash transactions step by step from August 2012, putting the EU directive 2009/110/EC (PDF) into practice. Germany is the next country after Greece, where the ECB recommended such cahs payment limits in May 2010, and Italy, where cash transactions above €1,000 have been limited since December 4, 2011.
While the official reasoning says this is to combat tax fraud, it is actually another step towards total surveillance in the European Union. All forms of electronic payments can be traced completely.
Ironically a study from the German Bundesbank (PDF) from 2009 arrives at the conclusion that cash fulfills all functions of a payment device in the best way. Germans still conclude 60% of their transactions with cash.

 
HOSTILE “BANKSTER “TAKEOVER

Italy, Greece now possible Slovenia governed by Bank technocrats………

Is Europe slowly becoming a colony of the FEDERAL RESERVE and its BANKSTER FRIENDS? Will a FEDERAL RESERVE ECONOMIST become the next Prime Minister of SLOVENIA after the GOLDMAN SACHS colonization of the ECB (DRAGHI), Greece (PAPADEMOS) and Italy (MONTI)?
Austrian daily "KURIER" had a snippet in last week’s edition, saying that Slovenian Fed economist EGON ZAKRAJSEK is at issue to become Prime Minister. The paper did not cite a source but reasoned that the stalemate between leftist election winner Zoran Jankovic and conservative Janes Jansa has sprung calls for a "third man."

Via The Prudent Investor

VIEW FROM THE “OPPOSITION”

This is Russia’s and Iran’s stance on current EU and USA embargo: from your own opinion 

'Oil plot': US embargo on Iran targets Europe?

TEHRAN believes that WASHINGTON is trying to deal a blow to debt-ridden EUROPE by forcing it to join its embargo on Iranian oil imports. Doing so would be “suicidal” for EUROPE, IRAN says.
IRAN’S Foreign Ministry said the US wanted to drag EUROPE into joining the sanctions imposed in December because it would make the EU less competitive.
The diplomat called on EUROPEANS not to act as AMERICA’S client and instead to pursue their own interests in the conflict.
Meanwhile, Iran’s OPEC governor said it would be “ECONOMIC SUICIDE” for EUROPE to join the sanctions amid the crisis.

“Regarding the economic crisis in the EUROZONE, imposing any sanction on Iran's oil will push EUROPEAN countries into a deeper crisis,” Iranian Foreign Ministry spokesperson was quoted saying. “The European currency is already under pressure because of debt and financing problems facing some of its members.”

DOUBLE-EDGED EMBARGO

EUROPE is a major importer of IRANIAN oil, the others being CHINA, JAPAN, SOUTH KOREA and INDIA. Southern European countries like ITALY, SPAIN and GREECE buy some 13 per cent of all crude they consume from Iran.
The EU’s current plan is to join the oil embargo in a matter of months. The grace period is needed to find a replacement fuel source, which may be AMERICA’S close ally, SAUDI ARABIA, which has said it can boost domestic production to compensate for the shortage.

CHINA, which is the largest buyer of IRANIAN oil, said last week it would not uphold any sanctions against the Islamic Republic unless they are imposed by the UN Security Council. INDIA came up with a similar statement on Wednesday.

SOUTH KOREA and JAPAN both voiced their readiness to boycott IRAN’S crude, but did not indicate when such a measure might come into force. JAPAN is particularly vulnerable to energy shortages after the devastating earthquake and tsunami which hit it last year, destroying the Fukushima power plant.
The sanctions are meant to force TEHRAN into making its nuclear program transparent to foreign inspectors. IRAN insists that the program is purely civilian, but many Western nations say it is ultimately pursuing nuclear weapon capabilities. No hard proof of such intentions has ever been produced.

IRAN  confirmed that it is ready to restart talks on the issue and is waiting for the group of six nuclear mediators to set a date for a meeting.
The Council for the National Interest think-tank, believes Iran is buying time, basically saying: “There is a high level of belligerency right now, but if we buy time, possibly that will change.”
“The resolve of the European powers to push on this Iranian nuclear issue is higher now,” Giraldi explained. “But if there is a genuine threat to possibly raise oil prices through closing the Strait of Hormuz, then the Europeans who get quite a lot of this oil would begin to reconsider what they are doing.”

Via RTV

Food for Thought

The quiet war in Saudi Arabia

By Joshua Jacobs, via Open Democracy Net




While western powers have been happy to use SAUDI ARABIA as an ally to ratchet up the pressure on Assad's beleaguered regime in SYRIA, it has not caught a whiff of the silent crackdown occurring within the kingdom. Since late November the protest movement which was largely snuffed out last spring has returned to the streets in force, largely centered on the oil rich and largely SHIA Eastern Province.

The SAUDI response was both brutal and predictable. Security forces shot and killed three protesters and wounded many more over several days of crackdowns in the eastern city of QATIF. Clashes continued throughout December as demonstrators battled security forces who routinely utilized live ammunition. In a series of retaliatory raids on the homes and districts of protest sympathizers hundreds were arrested and wounded. The killings along with the continued discrimination and mistreatment of the SHIA of the Eastern Province has formed the basis of the current protest movement - a protest movement that has suffered heavily like its neighbour in BAHRAIN, but with little in the way of a headline.

Today, while attention was focused on the Strait of Hormuz, on SYRIA, and on the rising tensions in BAHRAIN, SAUDI security forces launched an assault on the city of AWAMIYAH killing at least one and wounding half a dozen more. Eye witnesses have stated that soldiers on trucks opened fire on demonstrators, hitting many as they fled. The attack bears all the hallmarks of a planned operation with electricity being cut to the area prior to the assault. The area at the time of writing is apparently still under military lock-down and reflects a state of siege with clashes continuing to occur and gunfire being heard.

This attack was almost certainly condoned by the royal family and comes on the heels of a series of indictments against demonstrators and high profile invectives against the protest movement. Despite this attack and others like it, the rumblings and tremors of protest and crackdown show no sign of abatement. Indeed in the past few months they have once again reared their head in the south west in NAJRAN and JAZAN, compounded with protests over women’s rights in RIYADH and BURAYDAH.

These protests bear all the hallmarks of a movement which could coalesce and burst anew from the ashes of the disjointed and largely suppressed protests of last spring. They also come at an extremely troubling time for the kingdom. The death of Crown Prince Sultan highlighted the geriatric character of the upper echelons of the ruling family, and the potential uncertainty and disquiet surrounding the issue of succession.

Meanwhile, continuing tensions in the STRAIT OF HORMUZ and rising furor on the streets of BAHRAIN open up the risk of unrest spreading to the kingdom in a domino effect. Indeed the extremely aggressive SAUDI position on BAHRAIN and the continued quartering of troops in the tiny island monarchy has a direct relationship to their fears of domestic instability. The possibility of SAUDI SHIA rallying on behalf of their co-religionists in BAHRAIN, or vice versa is a looming threat that the SAUDIS are taking great pains to neutralize.

Though the protests currently centre on a single province, the Eastern Province is home to the majority of SAUDI energy reserves, terminals, and processing facilities. Disruption and upheaval in this province has a disproportionate impact on SAUDI ARABIA. A protracted and visible uprising would not only weaken the SAUDI government internally but could have a tumultuous impact on the global energy market. This is all the more reason for not only the media, but for western governments to begin taking an active interest in the ongoing street conflict.

SAUDI rulers certainly understand the threat posed by the protesters and the risk of an expanding movement: their actions are a testament to that fact. So why is the world’s media apparently incapable of recognizing the same thing? Arab media has been noticeably silent, with the two largest ARAB MEDIA entities the Saudi-owned AL-ARABIYA and the QATARI-owned AL-JAZEERA having said almost nothing. However there is little excuse for western media. SAUDI ARABIA is probably AMERICA'S most important ARAB ally, the world’s most important single energy node, and one of the most influential countries in the region.
It's also experiencing its worst domestic upheavals since its rebellions of the early 1980's. Taken in a vacuum this is a significant news story. When set against the context of the unfolding drama in the GULF and the wider contours of the ARAB SPRING, it is incredible.

The past year was a bad one for SAUDI ARABIA: the coming year augurs to be even worse. The time has come to slice through the veil SAUDI ARABIA has kept around its crackdown and recognize that the Arab Spring at least in limited form has hit the kingdom. What comes next is difficult to say, but with the rapidity of change that the Arab Spring has introduced us to, it would be wise to pay close attention to the warning signs as they appear. It is entirely possible that we will see a very, very, warm spring in SAUDI ARABIA.

DECEIVING TACTICS

As I see it

Mainstream media as well as alternative media alike have been jumping on the warmongering bandwagon, claiming that war between IRAN and the USA is imminent, and that subsequently ISRAEL is about to strike IRAN in order to prevent IRAN from concluding its alleged nuclear weapon program.

NO ARMED CONFLICT BETWEEN USA AND IRAN

In my opinion there will be no military intervention in the Strait of Hormuz nor will there be a full out war between IRAN and the USA, nor will ISRAEL strike IRAN. The entire warmongering is nothing but deceiving tactics, either to work out a behind the scene natural resources distribution deal or to entirely reshuffle the geo political landscape.
There are too many unknowns about IRAN to enter a full scale war. Though current USA political rhetoric’s and claims are frightening similar to that of prior to the IRAQ invasion, invading or waging a war with IRAN would most likely trigger a strong response from RUSSIA CHINA and the southern hemisphere, INDIA, VIETNAM etc.
For now at least, a full scale war between USA and IRAN for me is a no go situation. But then again who knows what the worlds”CORPOCRACY” goal in all this is. Are we made to believe that this is about natural resources?

DIMINISHING OIL RESOURCES? FACT OR DECEPTION?

Are we really facing a crude oil shortage for which it is necessary to stage another war or are we once again the fair game of speculators?
There is the hypothesis that the USA has enough oil reserves on its own territory to supply the entire country, thus making it totally independent from oil imports, but for geo political and economic reasons, dictated by “CORPOCRACY”, chose to “play the game of misinformation” in order to keep worldwide demand for oil at a premium, just as the Diamond Cartel did in SOUTH AFRICA, when a huge “Diamond Belt” was discovered in the country. The finding was so enormous, supplying these stones to the marked would have reduced the value of diamonds to almost nothing, and thus they covered the entire area with concrete in order to control the amount of stones entering the market.
The so-called demand for Natural resources is the perfect excuse to stage crisis situations, of which speculators gain most of and which help key political entities and financial institutions to dictated and manipulated geo politics and economy.

.........................................................................................

FOOD FOR THOUGHT ON SUBJECT MATTER

ARE CLAIMS OF CRUDE OIL RESOURCES DIMINISHING LEGITIMATE OR A DELIBERATE LIE?

Could it be that crude oil was not formed from fossils but in a complete different way? Is crude oil still formed nowadays?

Are crude oil resources diminishing………….for the last 100 years?

Is not it strange that even our grandparents were told that our oil resources are diminishing and that we soon will run out of oil ?  Is it not strange that even 100 years later there still exists the fear of “the end of the oil”, even though every day more oil is consumed and new oil resources are found continuously?
Well, what if all of this is a lie? Who would benefit from convincing us that we are running out of crude oil?
Actually, everyone knows the answer for it is so obvious: When something is scarce, prices soar. Price also rises when products are made artificially scarce. (Speculators)
Oil prices keep rising despite the fact that there are more oil reserves than mankind can ever consume!

WHERE ARE THE FACTS?

Why have fossils never been found in petroleum deposits? How could these supposedly fossil materials disappear thousands of meters beneath the surface? Were there in 3000 or even 13,000 meters beneath the earth once upon a time forests and meadows?
Could it be that crude oil was or is not at all formed in the way we are told but entirely different?

A documentary broadcasted on 3SAT (German, Austrian and Swiss TV station) on March 3rd 2010 casts an even bigger doubt on alleged biological origin theory of petroleum and natural gas. The global oil industry and cartel as well as international financial institutions dealing with oil commodities would never permit that such "endless" oil regenerating porcess would become publicly known.

Der Energie Irrtum

HOW DOES OIL AND GAS REACH THE SATURN MOON TITAN?

Scientists have found natural gas on Titan, Saturn’s moon:
http://www.sciencedaily.com/releases/2010/09/100921144133.htm

Following current hypothesis regarding the formation of oil and gas, oil and gas on Titan must have been created by dry plants, which miraculously flew from planet earth trough space to Titan. Or the oil residue evaporated on earth and was transferred to the Saturn moon where it down poured in form of precipitation. If it is not that way, then oil is not formed the way they tell us.

Bacteria decompose oil in the ground

Scientists at the University of Cologne have proven the existence of bacteria in 2,000 meters depth. Bacteria have never been detected so deep in the earth’s core, said a university spokesperson. Together with colleagues from Perth in Australia, researchers have discovered phospholipids acids in oil reserves. This indicates that living bacteria, biologically quarry oil.

If oil was originally created from fossils, it would have been eaten by these bacteria in the millions of years since its creation. According to this process crude oil regenerates itself continuously, but not the way we are made to believe by those entities that could lose big-time, once the truth is revealed.

Via Wahrheit Organisation

This is a currency war and the EUROZONE is on the way to lose it.

            S&P ON AUSTRIA’S DOWNGRADING
                                 

Via Prudent Investor

IF ECONOMIC GROWTH IS WEAKER THAN WE EXPECT, THIS COULD UNDERMINE THE GOVERNMENT'S ATTEMPTS TO CONSOLIDATE ITS BUDGETS

Austrian banks' balance sheets could suffer from negative developments in major trading and outward direct investment partners (such as ITALY and HUNGARY). In this instance, the banks could require additional government support. Furthermore, if economic growth is much weaker than we expect, this could undermine the government's attempts to consolidate its budgets, and could also render structural reforms ineffective.
The outlook on the long-term rating on AUSTRIA is negative; indicating that we believe that there is at least a one-in-three chance that we could lower the rating further in 2012 or 2013. Rating may be lowered if:

•    The weakening of AUSTRIAN BANKS' balance sheets stemming from negative developments in major trading and outward direct investment partners meant that the AUSTRIAN government needed to recapitalize the banks. This could in turn lead to net general government debt rising above 80% of GDP, and could also further increase contingent liabilities; and/or
•    Economic growth is much weaker than we currently expect. This could undermine the government's attempts to consolidate its budgets, and could also render structural reforms ineffective. This could lead to an increase in net general government debt beyond 80% of GDP.

The ratings could stabilize at the current level if the risks from the banking sector remained contained, and if AUSTRIA were to enter into a more-ambitious consolidation phase by implementing structural reforms, without damaging economic growth prospects and competitiveness. In our view, such consolidation measures would likely enable AUSTRIA to structurally balance its accounts and decrease its net general government debt.

Analysis from “The Prudent Investor”

OVERDUE DOWNGRADING LIKELY TO BE REPEATED

While remaining most critical of the opaque rating process of the rating agencies we are even more critical of the whining posture of AUSTRIA'S politicians who act as if this overdue downgrade - that will very likely be repeated in the near future due to the chaos in the EUROZONE-is unjustified.

As a reminder: AUSTRIAN government debt stands currently at EUR 218 billion or 76% of GDP and races higher because the ruling coalition officially attempts to come up with a €3 billion to €10 billion budget cuts package by end of February while it cannot even agree on €250 million savings on the state level of the republic. Place you bet on every ounce of gold that there will be no multi-billion austerity package by the end of February.

Statements by the government and central bank governor EWALD NOWOTNY, who called the downgrade incomprehensible, are unrealistic in the light of S&P's warning from December 6 and the ensuing non-action by AUSTRIA'S government.

DOWNGRADES WERE A POLITICALLY MOTIVATED ACTION BY S&P WHICH IS OWNED BY MCGRAWHILL

Unofficial mumblings that markets should not take the downgrade too serious are actually a call to break the law: Bond fund managers are tightly restricted by investment fund laws that oblige them to observe the ratings of the three major rating agencies.

Nevertheless one can agree with governor NOWOTNY that the downgrades were a politically motivated action by S&P which is owned by MCGRAWHILL. It seems difficult to establish who the majority owner of this company is, that has so far failed to downgrade the USA despite its much higher level of debt that already stands at more than 100% of US GDP. The rating agencies also veil their rating process in secrecy and it will be interesting to see the math behind a one-step downgrade.

A look at AUSTRIA'S yield differential to its peer GERMANY shows that spreads have risen dramatically over the past months. AUSTRIA used to pay a spread of 30 to 40 basis points 'liquidity premium' for almost two decades. This has changed dramatically: 10-year government bonds now yield around 3.60% vs. GERMANY'S 1.90%, showing that markets assess AUSTRIA by now much worse than GERMANY.


GOVERNMENT NOT ADDRESSING THE KEY OBSTACLES OF THE FUTURE

Markets are, as always, most correct in their evaluation of AUSTRIAN debt: Members of parliament and the government waste time haggling about changes in the national hymn while not addressing the key obstacles of the future that are:
•    a huge pension problem as demographics change (what a surprise for politicians: we all become older),
•    a growing budget deficit due to a still growing public sector, and
•    huge problems of several Austrian banks who recolonised Eastern Europe and now face billions in loans in default.
  
The concernment in the EUROZONE about the downgrade 'shock' proves once more that while EU politicians are never shy of trying to cut corners to their advantage they lack creative ideas to save the EUROZONE from rapid disintegration.

TONGUE-IN-CHEEK SOLUTION:

MCGRAWHILL is currently valued at billion. It would have been a lot cheaper to buy MCGRAWHILL and gag its subsidiary S&P. These billions would have brought ownership of a flourishing publishing company. Now this money will end up in the coffers of JP MORGAN, GOLDMAN SACHS, who can borrow trillions from the FEDERAL RESERVE for next to nothing and buy up higher yielding EUROPEAN GOVERNMENT DEBT.
This is a currency war and the EUROZONE is on the way to lose it.

Staat kann Österreichs Banken nicht genügend Kapital zur Verfügung stellen

Darüber findet man keine Schlagzeile in Österreichs Tageszeitungen:

Osteuropa-Abschwung: Österreich fehlt Kapital zur Bankenrettung

Artikel aus Deutsche-Mittelstands-Nachrichten

Die erwartete Rezession in Ungarn, Rumänien und Bulgarien gefährdet die österreichischen Banken massiv. Nun stellt sich heraus: Die Republik hat nicht genug Geld für einen Banken-Bailout.

Das starke Engagement österreichischer Banken in Osteuropa bedroht die Institute nun wegen der schlechten Konjunkturprognosen. Sollten die Banken Hilfe vom Staat brauchen, um ihre Geschäfte im Osten abzusichern, könnte ihnen die Republik Österreich ihnen nicht genügend Kapital zur Verfügung stellen.

Das Risiko vor Zahlungsausfällen nimmt zu, weil sich die wirtschaftliche Situation in Europa verschlechtert. Bei der Präsentation der aktuellen Wachstumsprognose der europäischen Wirtschaft in Brüssel wurde deutlich, wie ernst die Lage ist: „Wir leben in angespannten Zeiten. Dieser Ausblick ist ein letzter Weckruf. Der Aufschwung in Europa ist zum Stillstand gekommen und die Aussichten sind düster“, sagte der EU-Kommissar für Wirtschaft und Währung, Olli Rehn bei der Pressekonferenz über die wirtschaftliche Lage.

Nicht nur das angeschlagene Italien, das bisher die Berichterstattung beherrschte, ist eine Gefahr. Rehn geht davon aus, dass einige Staaten große Verluste erleiden werden – auch wenn der Eurozone als Ganzes eine Rezession im Jahr 2012 erspart bleiben sollte. Unter den Ländern, die besonders betroffen sein werden, weil sie zu wenig gegen ihre Defizite unternehmen, nannte der Wirtschaftskommissar auch Ungarn, einen der größten Schuldner Österreichs.

Die Rating-Agenturen haben das Risiko für Österreich erkannt: „Die österreichische Regierung könnte nicht die Kapazität haben, alle Auslandsgeschäfte der großen heimischen Banken zu stützen“, schreiben Analysten der Rating-Agentur Standard & Poor’s (S&P) in einem Bericht. Die Risikobewertung der österreichischen Bankenbranche hat unter der massiven Beteiligung einiger Geldhäuser in Osteuropa gelitten: S&P stufte Österreich in der Risikoskala der Bankenbranche diese Woche um eine Position ab. Es rangiert nun auf der dritten von zehn Risikostufen.

In den vergangenen beiden Jahren hatte die österreichische Regierung neun Milliarden Euro als Garantien für Banken bereitgestellt. Die Gewährung der Garantien wurde allerdings nicht auf Österreich beschränkt. Zwei Drittel dieser Gelder sind noch verfügbar. Sie würden aber bei weitem nicht ausreichen, um die Risiken der Osteuropa-Geschäfte abzudecken. Insgesamt haben heimische Banken fast 194 Milliarden Euro in Staaten wie Rumänien, Ungarn oder Tschechien zur Verfügung gestellt. Zu den Schuldnern zählen Regierungen und Unternehmen genauso wie private Haushalte. Dies geht aus den Statistiken der Bank für Internationalen Zahlungsausgleich hervor. Demnach sind österreichische Banken die größten Geldgeber in Osteuropa. Besonders betroffen sind die Erste Bank und die Raiffeisen Bank.

Die Erste Bank musste erst vor wenigen Wochen massive Wertberichtigungen wegen fauler Kreditversicherungen vornehmen.

Erste Bank, Raiffeisen, Hypo und die Österreichische Volksbanken AG haben angekündigt, keine weiteren Hilfen vom Staat mehr in Anspruch nehmen zu wollen. Keine besonders heldenhafte Aussage, weil die Mittel ohnehin nicht ausreichen: Wenn nämlich auch nur ein Bruchteil der österreichischen Kredite in Osteuropa tatsächlich platzt, kommen die Banken mit sechs Milliarden Euro an Garantien nicht weit.

Food for thought

Washington Post Admits Austerity 'Killing' Greece

Via The Daily Bell

Wednesday, January 11, 2012 – by Staff Report

GREECE, FEARS THAT AUSTERITY IS KILLING THE ECONOMY

In GREECE, fears that austerity is killing the economy ... Deeply indebted and nearly bankrupt, this Mediterranean nation was forced to adopt tough austerity measures to slash its deficit and secure an international bailout. But as GREECE'S economy slides into free fall, critics are scanning the devastated landscape here and asking a probing question: Does austerity really work?
Unemployment has surged to 18.8 percent from 13.3 percent only a year ago. Overburdened public hospitals are facing acute shortages of everything from syringes to bandages because of budget cuts, with hiring freezes forcing the mothballing of operating rooms even as more unemployed are relying on the public health system. Rates of homelessness, suicide, crime and HIV cases from intravenous drug use are jumping.
"Conditions have deteriorated so dramatically that doctors in this country now believe that the GREEK crisis is no longer just a financial crisis but a humanitarian crisis," said Dimitris Varnavas, the president of the Federation of Greek Hospital Doctors' Unions. – Washington Post

Dominant Social Theme: GREECE needs to "get its act together." But will the pain be too much to bear?

Free-Market Analysis: The almost genocidal nature of modern "austerity" as interpreted by the current crop of EUROPEAN one-world technocrats has come in for some mild criticism in the pages of the Washington Post.

Surprise! It must be really bad in GREECE for this august, mainstream mouthpiece to publish such an article. Look on it as a limited hangout of sorts. With the GREEK economy continuing to collapse as suicides pile up, a responsible mainstream paper must provide some sort of realistic reporting. And so it does.
Of course, the underlying assumptions remain resolutely unexamined. This is a kind of power elite dominant social theme of sorts – that the "cure," while necessary, is harsh. It is a pure Hegelian Dialectic when one considers this approach, as the argument is NOT framed by the question as to whether "austerity" is necessary at all.
In SINGAPORE one can be flogged for certain offenses. Perhaps the Washington Post shall do an article wondering whether the number of lashes ought to be mitigated. That's how this article appears to us. We would ask why someone needs the lash at all. The Washington Post worries only that the cure is a bit extreme. Here's some more from the article:
Leaders aim to hammer out a plan to save the euro, while demonstrators take to the streets to show opposition to austerity measures in cash-strapped countries. Greece has been forced to cut spending and raise taxes in the middle of a severe downturn, slashing pensions as well as state salaries, jobs and services.
As public confidence has evaporated, consumer spending — the biggest driver of the economy — has plunged, generating cascading losses at private firms. The result is a dizzying economic plummet and social crisis that is bringing the cradle of Western civilization to its knees ...
On Monday, German Chancellor Angela Merkel and French President Nicolas Sarkozy turned up the heat on Greece, suggesting that its bailout deal is in danger of unraveling if Athens does not press ahead quicker with pledged budget reforms and seal a deal with bondholders to voluntarily restructure its massive debt.

IMF AND WORLD BANK STRATEGY, HOW IT WORKS……

For some reason, the powers-that-be are determined to grind GREECE into the ground. When they are done nothing will be left but a spot. This is the way of the IMF of course, as amply documented by such by books as Confessions of an Economic Hit Man.
First, the WORLD BANK lends to a country's leaders – the more corrupt the better, which is why much of this takes place in the so-called developing world. Then the leaders abscond with the loot, leaving behind huge "public" debts.
Western banks, which have also lent to "build up the country's infrastructure," cry out that they have taken humanitarian risks and now will go bust if they are not paid back, jeopardizing the entire Western financial system. Sound familiar? The IMF is called in to make an emergency bailout.

IMF DOCTRINE: TAX RISE, GOVERNMENT SPENDING CUTS AND SALE OF GOVERNMENT ASSETS

The IMF is a stern taskmaster. It will demand that taxes go UP and that government spending go DOWN. Then it will demand that various government assets be sold off to raise funds. The assets, of course, are bought by select Western corporations at pennies on the dollar. People starve; the ANGLOSPHERE gains additional control.
See also: http://geopoliticsrst.blogspot.com/2012/01/argentine-government-may-gain-from.html

For control is what is sought. That's the reason to grind people into the dust of mercantilist bankruptcy. The power elite that want to run the world cares not at all for the welfare of the people whose country it is supposedly rescuing. And so it is with GREECE.

BRIBED INTO CHAOS

As we have pointed out numerous times, the top men in GREECE (and IRELAND and EASTERN EUROPE) were virtually bribed to bring their countries into the EU. This was done via a clever mechanism in which the Brussels bureaucrats determined the amount of funding that a given country needed to bring its economy in line with stronger economies such as GERMANY'S.
The money was duly calculated and handed over to the various national elites who then fulfilled their part of the bargain by ensuring this country and that country was indeed delivered into the clutches of the EU. This mechanism occurred with considerable alacrity in the 2000s, for it was increasingly evident that the world's economy was collapsing and that there was a limited window available during which the lies would yet be tenable.
In any event, the money that went to these countries didn't do what it was supposed to do. The economies were not stabilized. Public spending was not rationalized. Instead, absurd public works projects were embarked upon. And if they money was not wasted in this way – lining the pockets of certain local corporations and their owners – it was merely absconded with.

Today, the elites that pocketed these funds have apparently left power. They will not be prosecuted, for they held up their end of the bargain. They delivered their countries into the clutches of the EU. And now these countries are the EU's – and the EUROCRATS can do as they please. Which was the whole point.
Austerity is nothing but a ruse. The IMF's oft-stated intention to turn a country into a going concern is certainly misleading. The ANGLOSPHERE power elite seeks pliable nationalities that it can utilize for purposes of building an international community. This is why it crushes countries over and over. Culture is its enemy. Especially a stubborn, age-old culture such as exists in GREECE.
Of course, the outrageousness of what is going on in GREECE (and in other EU countries to a greater or lesser extent) must occasion articles like this one in the Washington Post. Justifications must be trotted out. The destruction, we are to believe, is unintentional. The aims of the power elite are pure.

GREECE WOULD HAVE DONE BETTER TO EMULATE ARGENTINA AND ICELAND AND REFUSE TO PLAY THE GAME THE WAY THE IMF AND THE BIG BANKING INSTITUTIONS DEMANDED

They are not, of course. And GREECE would have done better to emulate ARGENTINA and ICELAND and refuse to play the game the way the IMF and the big banking institutions demanded. What the cowardly GREEK elites have agreed to will blight several generations of GREEK families in the name of this "false" austerity, which is merely the crushing of a culture. In the meantime, the false memes will continue to be generated by power-elite mouthpieces.
"GREECE, proponents of austerity say, has no one to blame but itself," the Washington Post informs us. "After a decade of excessive borrowing and spending, evidence emerged in late 2009 that GREEK officials had lied about the extent of the country's whopping deficit. That lighted the first sparks of the EUROPEAN debt crisis, touching off a firestorm of investor panic that spread across EUROPE and is jeopardizing the global economy."
You see, they deserve their fate. Nobody knew what was occurring until 2009! It was a total surprise. (Never mind that this merciless system has been in place for at least 50 years, since the WORLD BANK and IMF were set up, post-World War II.)

And just to make sure we understand that "merciless rigor" is truly justified, we read the following: "Slashing the deficit quickly is essential to ushering in a sustainable future ... and the resulting social pain is necessary to impress on GREEK politicians and society that such excesses should never happen again."
As the economy further degrades in GREECE and elsewhere, as the suicides rise and the cultural fabric itself is rent, we shall no doubt read more and more articles like this one. This is how the NEW WORLD ORDER is to be built, on human suffering. The bodies and souls of the poor people trapped by this terrible paradigm are but rungs in a ladder that is ascending into the sky of a "brighter" tomorrow.

Conclusion: The storm troopers' measured tread as they climb this ladder is the sound track of what the future holds if these lies are not debunked and the terrible EU experiment is not exposed and ultimately dismantled.

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