by Kenneth Schortgen Jr
Sept. 1, 2014 (TSR) – On July 23, Dr. Jim Willie, a well respected statistician and founder of the Hat Trick Newsletter, was a guest on the USA Watchdog weekly podcast. During the 30 minute interview with host Greg Hunter, Dr. Willie provided an astonishing announcement from a high level source within the London banking system that Germany was on the cusp of severing its long-standing obligations to the U.S., and was ready to leave not only the European Union, but also the Euro currency and NATO to join then join up with Russia, China, and the BRICS coalition to strengthen the financial and economic power of the emerging global system coming out of Eurasia and the East.
Germany is already disgruntled with the United States for their aggressive tactics in trying to usurp Ukraine from their age old position in the Russian camp, and from day one, has been opposing the American superpower’s attempts to bring in Europe to solidify sanctions on Russia, which have been done outside the vote of the United Nations, and solely for the benefit of U.S. national policy and protection for the dollar.
Jim Willie: I got word from a client… I call him London Paul. He’s a former banker in London who does alot of private consulting, investigation, and feasibility studies and other general work with a bunch of clients.
He just came back from a client trip where some Russians told him that their information, confirmed by Asian partners (clients – colleagues), is that they have heard Germany made a decision already to leave the EU, leave the Euro, and leave NATO, and join the BRICS nations, and come about full force to back the new BRICS gold currency. – USA Watchdog
Besides Germany in the Eurozone, France is also hedging strongly towards abandoning the United States and the European Union because of recent events involving the U.S. and their indicting and fining of the French bank BNP Paribas for actions they did more than five years ago during a time of American sanctions in the Sudan. However, as Dr. Jim Willie proposed in a second interview he did on July 23 with Silver Doctors, the real reason behind this indictment was that BNP Paribas was actually facilitating the dumping of the U.S. treasuries by Russia and other BRICS nations, and was causing severe trouble for the dollar and global reserve currency.
Germany has a vital interest in ensuring their relations with Russia and China are not hindered in any way, especially since they rely upon these BRICS member nations for 30% of their oil imports, and 40% of their natural gas needs. Additionally, over 3000 German companies do a great deal of business with the BRICS coalition, and their economy is now more reliant upon the East than it is on the U.S. and Western countries. Thus Germany has already seen the writing on the wall for a sea-change in global economic and financial authority, and it is very likely that as the U.S. resorts to armed conflicts and espionage to protect their control over dollar hegemony, the linchpin to Europe and the entire European Union will assuredly look out for themselves, and move forward in a partnership with the next power structure that will rule the global financial system.
Germany has reached the end of the line for bailing out the rest of Eurozone
On Aug. 28, German Finance Minister Wolfgang Schaeuble was a guest on Bloomberg TV and spoke out on the growing concerns by members of the European Union that the ECB should begin channeling money and liquidity to broke sovereign countries in light of the declining economic conditions occurring within the Eurozone.
Historically, the Eurozone and European Central Bank (ECB) charters disallows the bank from directly buying sovereign bonds or debt like the United States currently does through the Federal Reserve, and in prior collapses that have taken place in EU countries such as Greece, Spain, Portugal, and Greece, the ECB has focused primarily on capitalizing banks and purchasing corporate bonds as a means of infusing liquidity into these countries without working directly with political entities within the given nation.
Additionally in his interview with Bloomberg TV, Wolfgang Schaeuble stressed the need to end easy monetary policies which have delayed countries from implementing necessary measures to draw down debt, and cut their budgets since the 2008 credit and 2010 liquidity crises. And in particular, Schaeuble focused primarily on France and the fact that President Francois Hollande is now hinting at convening an EU conference that would allow for a changing of the bylaws under the European Central Bank (ECB), and thus allow the bank to begin lending directly to sovereign governments through the direct buying of sovereign bonds and debt.
French President Francois Hollande has proposed holding a euro-zone summit to discuss using the flexibility of EU treaties to slow the pace of deficit reduction. Mr. Schaeuble avoided saying whether Germany would approve a more flexible approach for any country in particular.
“Nobody has a lesson to give to anyone else because everyone knows the rules,” Mr. Schaeuble said.
Germany has been reluctant to give up on fiscal discipline without seeing results from French promises to make structural changes to the economy in areas like labor law and welfare benefits. Europe last year already granted France a two-year delay to 2015 to bring its deficit within the EU rule of 3% of economic output–a target France is now likely to miss.
Schaeuble also stated that the EBC has reached limit in helping euro area and that any monetary policy from the central bank can only buy time but not resolve the underlying problems. – Zerohedge
It is interesting to note that Germany remains the only EU nation that has weathered the Great Recession, and has been the primary supporter of bailouts through the ECB. But after six years of continuous lending and increases in debt by many of these counties despite the bailouts, the value of loans and bond purchases no longer achieve positive effects, and without a complete overhaul of these economies through austerity or re-engineering no amount of money will facilitate a recovery and only delay the inevitable.
Germany is caught in the crosshairs of an even greater battle for monetary supremacy as the ongoing currency war between the United States and Russia threatens to affect and perhaps collapse their own economy from sanctions and export restrictions being imposed from both sides. And with Russian restrictions on food and other imports already causing EU nations like Finland, Greece, Poland, and Spain to fall deeper into economic turmoil, the leader of the European Union is now stating that enough is enough, and the era of cheap money from the ECB is over.
First published in The Examiner