by Volubrjotr

Banker Coup Over Throws Europe: People Left For The Slaughter ~ America Next In Line.

Financial terrorists who caused collapse now pose as EU debt crisis saviors!

But this mirage is only to deepen the crisis.

Precisely as we warned all along, the very financial terrorists responsible for the economic collapse have now exploited the crisis to pose as saviors and oversee a banker coup – with Goldman Sachs stooges now in control of both Italy and the European Central Bank.

The objective of the coup is to exploit the euro debt crisis as a vehicle through which to create a European federal superstate that will transfer all remaining control over national affairs to Brussels. The globalists have already started the process, hand-picking two unelected stooges to replace democratically elected Prime Ministers in Greece and Italy.

Silvio Berlusconi was the Colonel Gaddafi of Europe. Despite his personally loathsome character, Berlusconi was proving to be an obstacle for the banker coup and was hastily dismissed, not by the will of the people, but as Time’s Stephen Faris explains, by an action of insiders who control the markets.

“On Monday, investors seemed to make the collective decision that he could no longer be trusted at the helm of the euro zone’s third largest economy and sent Italy’s cost of borrowing up towards crisis levels. By the end of the week, not only was Berlusconi finished, so was the very idea of holding a vote to replace him. The markets had spoken, and they didn’t like the idea of going to the electorate. “The country needs reforms, not elections,” said Herman Van Rompuy, president of the European Council on a visit to Rome Friday.”

Berlusconi’s replacement is the ultimate globalist stooge, former EU Commissioner Mario Monti, an international advisor for Goldman Sachs, the European Chairman of David Rockefeller’s Trilateral Commission and also a leading member of the Bilderberg Group. Monti is a safe pair of hands for the next stage of the banker coup, when the euro crisis will be hijacked to concentrate even more power into the hands of the very people who caused it in the first place.

“This is the band of criminals who brought us this financial disaster. It is like asking arsonists to put out the fire,” commented Alessandro Sallusti, editor of Il Giornale, a Milan newspaper owned by the Berlusconi family.

Similarly, when Greek Prime Minister George Papandreou dared to suggest the people of Greece be allowed to have their say in a referendum, within days he was dispatched and replaced with Lucas Papademos, former vice-President of the ECB, visiting Harvard Professor and ex-senior economist at the Boston Federal Reserve.

Papademos and Monti have been installed as unelected leaders for the precise reason that they “aren’t directly accountable to the public,” notes Faris, once again illustrating the fundamentally dictatorial and undemocratic foundation of the entire European Union.

On Friday, we also highlighted how the onslaught of doomsday rhetoric about the collapse of the eurozone could just be another ruse to concentrate more power into the hands of the EU in its bid to to create a centralized European economic government that would dictate decisions to all member states.

Low and behold, the European Central Bank is now being hailed as the entity to “save the eurozone” by bailing out Italy, France and Spain.

And who has just been installed as President of the European Central Bank and billed as the “savior of Europe”? None other than Mario Draghi – former Vice Chairman of Goldman Sachs International. Starting to notice a trend?

Of course, the strings attached to this bailout will accomplish precisely what the Eurocrats wanted all along, a closer-knit “political union” as German Chancellor Angela Merkel called for yesterday, or in other words a federal superstate that will eviscerate what remaining independence and sovereignty European nation states have left and hand it all over to Brussels.

The entire EU debt crisis is nothing less than a flagrant banker coup d’état designed to empower the same financial terrorists who caused the initial collapse in 2008 by suddenly withdrawing huge amounts of credit from the market.

The crooks who popped the bubble in the first place are now setting themselves up as the heroes who will ride to the rescue to prevent worldwide depression – at the cost of European nation states surrendering control over their economies to unelected EU dictators like Herman Van Rompuy and José Manuel Barroso.

*********************

Paul Joseph Watson
Infowars.com
Monday, November 14, 2011

Paul Joseph Watson is the editor and writer for Prison Planet.com.

He is the author of Order Out Of Chaos.

Watson is also a regular fill-in host for The Alex Jones Show.

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U.S. Banks Face Contagion Risk on Europe Debt

U.S. banks face a “serious risk” that their creditworthiness will deteriorate if Europe’s debt crisis deepens and spreads beyond the five most-troubled nations, Fitch Ratings said.

“Unless the euro zone debt crisis is resolved in a timely and orderly manner, the broad credit outlook for the U.S. banking industry could worsen,” the New York-based rating company said yesterday in a statement. Even as U.S. banks have “manageable” exposure to stressed European markets, “further contagion poses a serious risk,” Fitch said, without explaining what it meant by contagion.

The “exposures” of U.S. lenders to major European banks and the stressed nations of Greece, Ireland, Italy, Portugal and Spain, known as the GIIPS, are smaller than those to some of the continent’s larger countries, Fitch said.

The six biggest U.S. banks — JPMorgan Chase & Co. (JPM), Bank of America Corp. (BAC), Citigroup Inc. (C), Wells Fargo & Co. (WFC), Goldman Sachs Group Inc. and Morgan Stanley (MS) — had $50 billion in risk tied to the GIIPS on Sept. 30, Fitch said. So-called cross-border outstandings to France for all except Wells Fargo were $188 billion, including $114 billion to French banks. Risk to Britain and its banks was $225 billion and $51 billion, respectively.

Europe’s debt crisis has toppled four elected governments, with the last two, in Greece and Italy, falling last week. Italian bond yields remained at about 7 percent — the threshold that led Greece, Portugal and Ireland to seek bailouts — and shares of French banks, includingBNP Paribas (BNP) SA and Societe Generale (GLE) SA, dropped amid concern they’ll need more capital.

Stocks Slump

U.S. stocks slumped yesterday after the Fitch report was released. The Standard & Poor’s 500 Index slid 1.7 percent and the 24-company KBW Bank Index declined 1.9 percent. U.S. index futures fell earlier today as Spanish and French borrowing costs rose.

The Fitch report is a worst-case scenario and is “oddly out of step” with the rating company’s previous reports, analysts at HSBC Holdings Plc said today. U.S. banks may even benefit as investors shift money to the U.S. from Europe, HSBC said.

Investor demand for the relative safety of Treasuries during the European debt crisis has sent the difference between U.S. short-term yields and bank rates surging to levels not seen in more than two years.

The gap between the London interbank offered rate and the overnight index swap, or what traders expect the Federal Reserve’s benchmark to be over the term of the contract, widened to 38 basis points today. It was the highest level since June 2009.

Swap Spreads

U.S. five-year swap spreads climbed to 45 basis points, the most since August 2009. Investors use swaps to exchange fixed and floating interest rates. The spread, the gap between the fixed component and the yield on similar-maturity Treasuries, is a measure of bank creditworthiness.

The TED spread, the difference between what lenders and the U.S. government pay to borrow for three months, widened to 47 basis points today, or 0.47 percentage point, the most since June 2010.

Yields have yet to reach the levels seen three years ago when credit markets froze and the U.S. economy was in a recession. The TED spread was as wide as 4.64 percentage points in October 2008.

Hedging Risk

While U.S. banks have hedged some of their risk with credit-default swaps, those may not be effective if voluntary debt forgiveness becomes “more prevalent” and the insurance provisions of the instruments aren’t triggered, Fitch said in the report. The top five U.S. banks had $22 billion in hedges tied to stressed markets, according to Fitch.

Disclosure practices also make it difficult to gauge U.S. banks’ risk, Fitch said. Firms including Goldman Sachs and JPMorgan don’t provide a full picture of potential losses and gains in the event of a European default, giving only net numbers or excluding some derivatives altogether.

Guarantees provided by U.S. lenders on government, bank and corporate debt in Greece, Italy, Ireland, Portugal and Spain rose by $80.7 billion to $518 billion in the first half of 2011, according to the Bank for International Settlements.

Also yesterday, Moody’s Investors Service downgraded the senior debt and deposit ratings of 10 German public-sector banks, citing its assumption that “there is now a lower likelihood” that the lenders would get external support.

To contact the reporter on this story: Dakin Campbell in New York atdcampbell27@bloomberg.net

To contact the editor responsible for this story: Rick Green at rgreen18@bloomberg.net