“For socialists, not just the wealth, but the guilt, must be redistributed” – Andrew Sandlin
The article entitled World Bank Offers Dire Forecast for the World Economy, as published in the Harold Tribune, would have been more accurately titled as as “Greedy American Capitalist System Destroys Economies of Innocent Poor Nations of the World”. Wow, is GUILT a powerful tool or what? This is the kind of journalism that IGNORANT liberals love to grab onto as PROOF (for dummies) that the “conservatives” with their free-market philosophies are the terminators of the universe as we know it.
Take a look at how the World Bank points its long, green nose – I mean finger – at the U.S.:
In a report prepared for a meeting next week of finance ministers from the 20 industrialized and large developing countries, the World Bank said the economic crisis that started with junk mortgages in the United States was causing havoc for poorer countries around the world, not only stifling their growth but also choking off their access to credit as well.
So THIS is how they are going to sell this economic crisis to the Americans Sheeple– that it is the fault of THEIR junk mortgages in the U.S? This, my friends, is propaganda, a la – al Gore. And it works because most Americans don’t have a clue as to what is going on in the rest of the world, let alone what is going on here. Let’s take a little look at what has been going on with subprime mortgage lending in Eastern Europe. Now don’t fall of you chair here, but the sad truth of humanity is that in Eastern Europe, mortgages were being written in terms of FOREIGN CURRENCY! That’s right. Guess what happens when the scales tip against them and their currency begins to collapse against their creditor nations? Well, no one could even HOPE to pay up and so the internal economy, not to mention trade, collapses completely. Social mayhem, non-existent zombie economies, a deep need for someone to BLAME:
The long ticking time bomb of Eastern European debt is starting to explode with an even greater inevitability as that of subprime mortgages exploding in the United States, as at least in the United States the determining factor of whether or not the mortgage market would go bust is the state of the US housing market. With Eastern Europe the big and obvious question mark that has been raised many times long before the housing markets peaked and the stock markets crashed was the degree of borrowing by Eastern Europeans in foreign currencies that set the borrowers up for the ticking currency time bomb when the forex trends reversed against them would send the value of debts soaring in the domestic currencies thus pushing for example the housing borrowers into negative equity WITHOUT A FALL IN HOUSE PRICES.
This originally implied that the Eastern European governments would be forced to raise interest rates much higher than they would like to so as to defend their currencies that weakened against the creditor nations namely the Euro and Japanese Yen so as to reduce the debt burden on borrowers for if they failed to do so then the debt levels would explode to levels that would bankrupt the borrowers both corporate and mortgage borrowers, which would trigger economic contraction and hence worsen the situation as debt default rates soared.
However now we have the added problem of the world economy going into a deep economic slump that has resulted in the collapse of global trade and hence Eastern European economies are falling off the edge of a cliff as they are hit from all sides, by currencies collapsing as exports slump and investments being repatriated back to western countries coupled with the frozen credit markets.
Latvia the Next Iceland?
The situation has reached such a crisis point in Latvia that anyone that reports on the truth is being arrested by the Latvian security forces as an omen that economic turmoil means a return towards tyranny as I wrote of in early December 08 - (Latvia Protects its Banking System by Arresting Economist For Speaking the Truth),as the Latvian secret police arrested Dmitrijs Smirnovs, a university professor for delivering gloomy forecasts on the prospects for the Latvian economy and the state of the Latvian banking system.
Since then, Latvia has continued its economic and financial meltdown as evidenced by the 10% slump in GDP as the credit rating agencies cut the countries credit rating to junk level. Latvia following the collapse of the soviet union had sought to burn its bridges with Russia with a view to moving towards the EU, now the EU has shut its door in the face of its own banking sectors toxic liabilities of $23 trillion that threaten a collapse of the Euro, Latvia is left a drift on its own seeking an IMF bailout that itself has gone cap in hand to the EU for more emergency funds.
Not far behind Latvia are Lithuania and Estonia, which are all along the same path as Latvia having adopted similar policies of burning their bridges with Russia, which must now be looking on with gleeful satisfaction. Although the collapse in the crude oil price has put a severe strain on its own state budget as much of it was on the expectations that crude oil would stay north of $80 instead of the recent range of $45 to $30.
The rest of eastern europe is gearing up for a chain reaction of Iceland-esk collapses, with those topping the list in addition to the 3 already mentioned being Bulgaria, Romania and Hungary in total threatening to default on some $2 trillion of debt to the European banks.
EU countries hit hardest by loans to Eastern Europe are Austria, Italy and France as most exposed, for example Austrian banks have loaned as much as 70% of the countries GDP to Eastern Europe. That liability is OFF its public debt level which stands at 60% of GDP therefore real liability is somewhere north of 250% of GDP for Austria allowing for all banking sector liabilities.
So there you go. What could have possessed ANYONE with even half a brain to create mortgages such as these? One would either have to be a dummy or EVIL. I am going with EVIL, because I believe that most of leaders love a GOOD CRISIS (Rahm Emmanuel, Hillary Clinton, Barack Obama, Henry Kissinger). Why does the World Blank-Check blame America? Because America’s currency is going to turn out to be the STRONGEST of the weakest in the hard times to come. The world will still look to us to bail THEM out. The World Bank know that Americans will not put up with bailing out the whole world unless our mendacious leaders convince the sheeple that we are GUILTY and REPONSIBLE for the crisis in the first place.
When I read the news every day, most of what I see is calculated and determined “entity” that is hell-bent on creating GUILT in the hearts of the American people so that it continue its EMBEZZLEMENT of funds from the richest and most giving people on the planet:
Zoellick (World Bank el Presidente) called for rich countries (that would be YOU) to set aside 0.7 percent of the amount of money they spend to stimulate their own economies for a "vulnerability fund" to help stabilize poorer countries.
Zoellick said the new fund could then make the money available to countries through the World Bank, the United Nations or other global financial institutions like the International Monetary Fund.
He said the World Bank had the potential to triple its own lending in 2009 to $35 billion, though that would still be a small fraction of even the most optimistic estimate on the shortfall facing poor countries
The Obama age is not just about a new Welfare-Nanny state for the U.S. He is only a piece of the greater pie which sets out to make the World Bank master of the financial universe, and the greatest MOTHER in the world. Read the word “mother” any way you like. Either way, you will still get screwed.
