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December 13, 2011 / 74

EU! I Smell a RAT! SEVERAL of Them!

Okay – Let’s see if I got this straight.

The Transaction:

The US FED did a “currency swap” with the European Central Bank (ECB). (ie exchanged $7.7 TN worthless US dollars for worthless Euros) .

The ECB turns around and loans/deposited the dollars to the IMF. (30 – 40% funded by the USA) The IMF then turns around and “loans” it to inDUHvidual European Banks (probably via IMF Special Drawing Rights – SDRs – which are sort of an “international currency” ) that have bought European nation’s “sovereign debt” in an attempt to shore up these bankrupt countries and banks. (Sovereign National bonds of individual countries – but denominated in Euros, which I understand that the ECB is prohibited from buying directly.) Right?

With all this “money” shuffling – the EU and their nations are STILL not dealing with the debt problems – which are in fact getting WORSE because the EU nations are STILL running deficits – which means that they are STILL accumulating more debt. Just like the USA.

And the EU “government” is trying to float the idea that if the individual governments give up their sovereignty, all the debt and bad juju of the current depression will just magically go away!

The Effect

These “transactions” remind me of two games I used to play when I was a kid. One is “kick the can” where you kick a can down the sidewalk. It’s pretty much of a time waster because there are no goals and no other players. (If you have other players you get a ball to kick and set up goals.) All you’re doing is moving the can from one place to another – with FORCE!!!

The other game is the shell game, aka “hide the pea” which is where you have the person with the shells (you) and the “mark” (victim), and you put a pea under one of three nearly identical walnut half-shells. After you shuffle the walnut shells around on a table REALLY FAST while you are talking and asking the “mark” questions to distract them, the mark is supposed to name which shell the pea is under. The idea is to demonstrate how much more clever YOU are than the person who’s trying to pick the shell with the pea under it. If money is involved, then it’s called “gambling” and if done right, it’s really easy to cheat when you are the one moving the walnuts.

Kick the can is a pointless game that accomplishes nothing but wasting time – but it does so with ENERGY! ie you are DOING SOMETHING!!!

Hide the pea is also a pointless game – unless there is money involved. Then the point is to cheat the “mark” out of their money.

So – why do I think that the pea is under the shell labeled “US FED buys Worthless European Sovereign Debt” to cover up the fact that the Socialist EU is a failure, and the US taxpayer is paying their debts?

Oh – and as just sort of a side issue – by the FED buying worthless debt with US Dollars, it has done two things of concern in the US.

1. It has increased US Debt by $7.7 TN

2. And since they just “printed the money up” (created new), it increased US inflation. Despite the lies of the FED’s BBB and TcT – the last time I had a good read on US Dollar inflation it was running around 20 – 30%.

(And for those who say “It’s costing the taxpayer nothing because it’s not coming out of Federal funds – it’s just being printed up.” – I say you need to go back to school and this time stay awake in Economics.)

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