*Report published in November by a government panel of experts recommends default as way of preventing the transfer union and the economic meltdown of the eurozone: German minister only acknowledged it existed yesterday
*Advisors says national governments should take steps themselves to default on national debt in view of ineffectiveness of EU
*Report also criticises “permanent crisis fund” to be set up in 2013 to save banks and destroy states
Insolvency mechanisms should be set up to allow eurozone countries to default on their mountains of national debt, a panel of German economic experts recommended in a report published on November 26, 2010, it has emerged.
The report was published by experts who advise the Economics Minister Rainer Brüderle, but was buried by the government of Angela Merkel, which has been promoting policies that block the insolvency of states and facilitate an illegal transfer union for the benefit of the banks.
The German media only reported on the existence of the key report yesterday after another advisor to Angela Merkel’s government, Beatrice Weder die Mauro, said in an interview with the Wirtschaftswoche that mechanisms should be set up urgently to manage the insolvency of euro states.
She argued that the private sector must also be included in „debt restructuring“ if the euro is to be stabilised.
The panel of leading economic experts, including university professors, strongly criticise the EU for failing to stop eurozone states from acquiring gigantic amounts of souvereign debt – largely through the engineered financial crisis.
They argue that reforms have to be carried out at an EU and national state level in view of the ineffectivness of the EU: a key change has to be the introduction of an insolvency mechanism.
An insolvency mechanism is needed as a signal to eurozone states that they cannot depend on tax payers from other country’s paying the interest on their own inflated souvereign debt, they say.
„This instrument could make it easier for governments to keep financial political disciple,“ the report says.
Also, more transparency not just on new debt but also on existing debt is needed, they say.
In addition, the experts call for national debt to be evaluated in relation to growth prospects. The report argues that high interest rates on debt that choke off growth are not meaningful.
Also, plans to coordinate economic policies in the eurozone – favoured by the Bilderberg bankers – are rejected.
Budgets and economic policies should remain a responsibility of national governments, the report says.
Moreover, the experts argue it was a mistake for funds in the so-called permament crisis mechanism — due to be enshrined in an EU treaty in 2013 — to keep on paying high bank interest rates and stop states becoming insolvent – which is exactly what Angela Merkel and other European leaders have planned the fund to do.
The experts also note that no sanctions have been placed on any states that have created excessive debt and that the European Commission was blocking the introduction of tougher sanctions.
Economics Minister Rainer Brüderle welcomed the report yesterday but has given no indication that any of ist suggestions are to be implemented. This in spite of the fact that the eurozone is facing an unprecedented crisis due to the mountains of unaffordable government debt.
The Merkel government is pursuing policies that are the diametrical opposite of those recommended by their own experts, favouring banks over states, a transfer union that puts all tax payers on the hook for astronomical fractional reserve banking debt over default.
Eurobonds were introduced by the ESFS in January to finance Ireland’s bailout with hardly any publicity.
Because the ESFS has no basis in any EU treaty, it is not clear what the legal basis of these eurobonds is.
Also, European leaders objected to the introduction of eurobonds at a Brussels summit in December 2010.
The eurobonds will lead to more solvent countries such as Germany and Austria having to pay higher interest rates to service their national debt, Ifo economics expert Hans Werner Sinn said in Der Standard.
Because of the failure of Merkel and European leaders to introduce an insolvency mechanism in spite of the recommendation of expert panels, tax payers could soon forced to hand over almost the entire annual tax revenues of the eurozone to pay the exorbitant interest rates on the artificially engineered bank debt that governments have equated with national debt.
The suppression of the report strongly suggests the notion that the Merkel government is actively conspiring to mislead the German public on the best way of handling the eurozone crisis for the benefit of the banks.
Der Spiegel wrongly reports that the key report was unveiled in Berlin yesterday, Monday, when it was published six weeks ago just as Ireland began to have difficulties in raising money on the bond market.
Instead of following the advice of ist own economic experts and allowing Ireland to default on its AIB debt created with the help of a complex financial property fraud by Hypo Real Estate, the Merkel government pushed Ireland into a loan from the IMF and EU that will see it enter a deflationary depression. Ireland’s private pensions are to be used to pay the banksters.
Hypo Real Estate has given back state guarantees worth more than 38 billion euros to the German government, and yet the same bank is sucking in Irish tax payer’s money through Irish state guarantees.
http://online.wsj.com/article/BT-CO-20101222-707123.htmlPortugal is now facing pressure from Germany to take on an exorbitant IMF and EU loan to pay ist national debt debt. The IMF and EU will take charge of the national budget in a move that amounts to a coup d’etat by the private banks and financial elite who control these institutions.
The way a key report recommending insolvency was buried makes it clear that Bilderberg Chancellor Angela Merkel is systematically ignoring policies and mechanisms — which are recommended by the government’s own economic experts — to stablise the eurozone crisis while promoting opportunities for the banks to make profits by extracting tax money and assets for artificially engineered souvereign debt.
Deutsche Bank — headed by Bilderberg Josef Ackermann – is at the heart of a huge fractional reserve banking fraud and hugely undercapitalised. To keep their ponzi scheme going, they need to suck ever more quantities of cash from tax payers.
European banks need to roll over more than 400 billion euros of debts this year and are having to offer their mortgage pools as collateral because they are essentially insolvent because of their fraudulent dealings.