Is this a Missing Puzzle Piece to Europe’s Gold Repatriation?

from The Wealth Watchman Trouble in the Peloponnese

In the summer of 2012, Europe could certainly tell you that things had been better.  The Euro concept was beginning to fade in luster, as the political classes(and ordinary, hardworking citizens of Europe) all knew, they’d be asked to bail out Greece.  If this was the first time, it would have been bad enough, but the huge sticking point, was that the wealthier European countries had all been asked to do so before.

What was worse for the Greek people, was that one austerity measure after another, was being forced upon them, from a bankster Troika, which had been appointed by unelected(by European peoples), technocratic, Brussels insiders, like this guy:



Wait, stop….wrong picture! So sorry!

I actually meant this guy, Mr. Van Rompuy:

Van Rompuy


The Greek government, whose books had been cooked years before, by Goldman Sachs, to even qualify to be in this monetary union, could no longer pretend its fiscal health was rosy.

A bailout, Greeks were told, was the only way to save their economy, and by extension, the Euro project altogether.  Jets carrying armies of bookkeepers, and policy makers from Belgium, were landing regularly in Athens, and local resentment was growing stronger(and more violent) by the day).

In fact, the riots, which had begun months earlier, were now spiraling out of control on the main streets of Athens.

As I sat at my computer screen, watching a live feed of tear gas canisters, rocks, and random projectiles being thrown by both the police, and the Greek people, I ruminated on many things.

“How sad”, I thought, “that the cradle of democracy has been reduced to this by technocratic bankers: a satrap of Goldman, and other large banks, all who had exposure to Euro currency swaps, and other derivatives of choice”.

Even after the bailout had passed, and other vulture capitalists like Steve Forbes(who couldn’t wait to sink his teeth into some distressed Greek industries) had left, there remained another problem: would the 2012 Greek elections spell disaster for bankster plans for Greece, and for the E.U. as a whole?  After all, the feeling and mood of the populace could no longer just be called “bitter” or “resentful”, but was becoming hateful of the idea of a “greater Europe”.

The bankers desperately needed a pro-bailout majority party, or at least a majority coalition of several parties, in order to make the bail-out scheme “stick”.  The poll numbers were not encouraging:

Greek Electoral numbers

As you can see, back then, Syriza, the largest anti-bailout party in Greece had just passed New Democracy, to take the lead in the polls.  This result put serious fear in those who’d planned for the Euro to march from strength to strength.

Would Syriza be overcome?

Well, as we all know looking back, they were(barely) outmatched in the wheeling and dealing that followed the elections, and a pro-bailout coalition was cobbled together, and Greece was bailed out….at a whopping cost of 177% of Greece’s GDP, and a lien was put on all of Greece’s remaining sovereign gold reserves!

The Euro had dodged a bullet, but at expenditures of political and fiscal capital.

Now, if you’re telling yourself: wait a second Watchman, this is all sounding really familiar!  

Ahh, my brother, that’s because….

This whole tragic scene is repeating as we speak, and history is rhyming once again!

 Syriza’s Revenge

Over the last several weeks, the elections in Greece have thrown the Euro currency and arrangement into turmoil once more, as no clear winner has been chosen to head the current government.  In fact, the pro-bailout coalition formed in 2012, is resigning, and the poll numbers are giving Syriza an even stronger majority and electoral position than they enjoyed 2 years ago.

Snap elections are now to be called on January 25th, 2015, and now, it seems, that the head of Syriza, Alexis Tsipras, is taking an even more hard-line approach on bailouts.  This is sparking fear and loathing all over Europe.

It has sent the Euro crashing through long term support at 1.20(though the oversold Euro may enjoy a relief rally soon):

Euro crashes

It has sent Greek stock markets(and many other equity markets by extension) lower on the news of uncertainty, once again.

Even bonds from major Euro players are now going negative, as people are willing to pay governments money, and forego any returns whatsoever, just to ensure they hold instruments in something considered safer than cash.  In fact, Germany’s 5 year bond just went negative for the first time:

German Bond negative

This all means, that the Euro, one of the world’s largest currencies will be in agonizing purgatory for another 2.5 weeks….until we see if another pro-banker, pro-bailout coalition can be strung together!  

Goldman Sachs is already threatening that if Greece fails to to vote “the right way”, that a Cyprus-style bail in or bank holiday could resume.

It is now becoming apparent to all:  Greece and greater Europe, far from being more sovereign due to this arrangement, is actually becoming more threatened by the banking establishment within its borders more than ever before.

The Golden Life Boats

Huh, well this is interesting stuff, Watchman, but what the heck does this have to do with gold repatriation?

Back in 2012, the question on everyone’s lips, was: would be the Euro’s last gasp(after all, there were so many close calls already).  Remember, several European banks were wobbling from the news, and cash was pouring out of the banking system, and into areas perceived to be less risky(like Germany or Dutch bonds).

I remember thinking that the Euro was on the ropes, and apparently I wasn’t the only one who thought this.

For, thanks to an insightful piece written by Mr. Koos Jansen, we now know that Dutch authorities(and doubtless, German, and Nordic countries as well), were considering emergency plans, including the creation of a brand new currency for the Netherlands, called the Florijn!

While outwardly, all the Draghis and Merkels were waxing on about the “strength” of the European Commission, about the “unshakable commitment to the Euro project”, and about there being no “Plan B”, other than the Euro….we now know:

They were all lying, and this documentary confirms it!

I encourage all of you, if you haven’t watched it, to view this exchange.  It’s 93 seconds of electricity.  Be sure to hit “CC” for English subtitles to this exchange.

This is pure dynamite, and I have to give some credit to Klaas Knot, the head of the Dutch Central Bank, for at least being candid with the interviewer here.  After all, remember, the possibility for contagion is still there, the crisis is not over, and yet he answered truthfully to these very important questions.

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