Monday, 26 September 2011

Stuff the Greeks, save the French banks and Sarkozy

The latest rescue package figure plucked out of nowhere is €3 trillion that is €3000000000. No mention of who is going to pay this vast sum. Well Madame Lagarde, the next president of France after Sarky, will ensure that the UK gets stuck for its share. This is not about saving the poor Greeks. Its about ensuring those French Banks who lent them the money get repaid and don't have to go to the French state for the money. Its all going to come from the ECB printing press and Robert Mugabe will be advising how to do it.

The other part of this wonder package is to allow the Greeks to selectively default about 50% of their bonds. Who chooses who gets paid and who does not? Madame Lagarde again and its a rock solid certainty that top of the list will be the French banks! Its certain to generate legal action from those not repaid but of course the European Court will be fixed. I do not think these bonds were written under English common law so no chance of a fair and decent judgement.

Do you remember how 3 years ago, in the middle of our bank crisis,  the EU and their LibDem fellow travellers were smugly saying how it was all the fault of the Anglo Saxon banking system and we should copy their system with Spain being held up as an example to follow. Where is Spain now? Fourth in the queue with a very large begging bowl.

I wrote previously how the Anglo Saxon banks coped with the Russian debt default in 1998. Guess who is now  pressuring  the EU for some semblance of action? That's right these big bad Anglo Saxons again.

Is a pity wee George was so quick to unilaterally accept John Vickers gold plated bank reserve requirements. HSBC and Standard Charterered will almost certainly shift out of the City if these recommendations are implemented with a huge loss of jobs and business to the UK. With leaders like ours who needs enemies?

But Greece is still to stay in the Euro and presumably sink further into the mire until eventually either the Communists or the Military take it over. The only solution is for Germany and its satellites to leave the Euro and form a Deutsch Mark zone hopefully without the French who could then get on with running the and paying for the Club Med Euro which would fall dramatically on the FX market and restore economic activity in the Club Med including France. They would still use the Euro and would eventually be able to repay their debts in this devalued currency according to the tried and tested IMF recipe.

As for Germany, Europe's chief miser, they would have to increase their public spending and boost demand in the which is exactly what world trade needs! A win- win situation!

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