By: Steve Watson
Wednesday, May 26th, 2010
Source: Steve WatsonInfowars.netWednesday, May 26th, 2010
Consolidation of power into fewer hands the real goal
A secret exit clause written into the trillion dollar European bailout agreement will ensure the creation of more debt in Europe, worsening the global economy, decimating nation states and allowing power to be consolidated into fewer super-elite hands.
As the Financial Times reports today, the major German newspaper Bild says it has obtained a copy of the bailout agreement and has set about “exposing” a series of secret clauses.
The most revealing of these clauses states that if any country finds it cannot raise funding for the bailout at interest rates below the 5pc charge agreed for Greece, it can opt out of the bail-out altogether, leaving the rest of the eurozone states to pay the difference.
If this happened, a domino effect could ensue, as the London Telegraph’s Ambrose Evans Pritchard explains:
BNP Paribas said this would escalate quickly into a systemic crisis if Spain were in such a position, because the other countries cannot carry an ever-rising burden. The bank warned the euro project itself may start to disintegrate rapidly if these rescue provisions are ever seriously put to the test.
As financial analyst Tyler Durden of Zero Hedge explains, this means bad news for American taxpayers because the U.S. is essentially being used as the engine for global consolidation:
The second Portugal, Spain and Italy are dragged under by the vigilantes, their participation in the $1 trillion bailout ends. And when that happens, the full cost of the bailout will be borne by none other than the “richest” member of the IMF, the United States.
Obviously, the incentive to blow up one’s borrowing costs in this arrangement are huge, now that both Germany and the US have no choice but to bail out each and every dropping domino.
The secret clause essentially creates a huge incentive for weaker eurozone countries to blow up their debts – the agreement creates massive moral hazard.
Tyler Durden again:
…the benefit to the first defector is far greater than any downside, with the last to defect left holding the bag on what would basically become a bail out of all of Europe. Many have wondered how arguably intelligent people could come up with a rescue package of Greece in which Greece itself is supposed to contribute to its own bailout. Now we know that this was the ploy all along.
As we have continued to expose, at the heart of the ongoing centralization of national economies is a further viral spread of economic chaos through which the most powerful can consolidate their control over the globe.
The super-elite are essentially siphoning the wealth of every sovereign nation they can lay their hands on, holding the people of those nations to ransom via their elected governments, while slowly draining and using up everything they have.
Exposure and understanding of this agenda and what it means for the masses is key because at the moment the people continue to allow their governments to operate in this system under an illusion that they are working toward some kind of utopian harmonization, when the reality is quite the opposite.
Watch the video below talking about the the US economy.