Posted by: Dr Churchill | March 11, 2014

Tragedy of the Commons

Apparently the Eurozone crisis is just getting started.

This is not some alarmist weak in the knee and trembling lip errant city boy conclusion but my War Horse sense.

And am not alone in saying this.

My friend George Soros believes this too same as Warren Buffet and a bevy of the most erudite value investors out there.

Am seriously strengthened in this view, because some seriously smart and prescient investors are also seeing that the Eurozone is going to face a fresh sovereign debt crisis this year.

A series of headwinds are forecast to hit the Eurozone in the early second half of 2014…

George Soros, the billionaire investor, believes the banking sector is a “parasite” holding back the economic recovery and an “incestuous” relationship with regulators means little has been done to resolve the issues behind the 2008 crisis. George blasts the corrupt ‘parasite’ banks of Europe as the weakest link in the European economy and the one to drag down the whole lot…
George, has warned repeatedly that little has changed since the 2008 crisis in the ‘parasite’ banking sector and the banker-wankers who have not been disciplined, nor punished, but rather rewarded for their self pleasing behaviour, they are seriously out of control and hurting the real economy. The financialization of the the European Economy and the laxity of any serious control on the part of National and International governments against the failing Banking sector will take all of Europe down this time around.

It is so serious that all of the smart money is taking bets against the Euro long term. Sorting this out requires balls that Europe sporting a major lack of Leadership hasn’t got. “The banking sector is acting as a parasite on the real economy,” Mr Soros writes in his new book “The Tragedy of the European Union”.

“The profitability of the finance industry has been excessive. For a while 35pc of all corporate profits in the United Kingdom and the United States came from the financial sector. That’s absurd.”

Mr Soros outlined how the problems that caused the Eurozone economic crisis remain largely unresolved.

“Very little has been done to correct the excess leverage in the European banking system. The equity in the banks relative to their balance sheets is wafer thin, and that makes them very vulnerable.

“The issue of “too big to fail” has not been solved at all.”

The proposed solution of a European banking union does not address the underlying problems, Mr Soros adds.

“A real danger to the financial system is the incestuous relationship between national authorities and bank managements. France in particular is famous for its inspecteurs de finance, who end up running its major banks. Germany has its Landesbanken and Spain its caixas, which have unhealthy connections with provincial politicians.”

In his new book Mr Soros outlines, in a series of interviews with Dr. Gregor Peter Schmitz, how he believes the European Union is in danger of becoming a thing of the past unless its flawed banking and financial structure is reformed.

The German economy at the regions heart could also be its biggest weakness, because the banking sector is all powerful and without any serious government control — is ready to explode under a mountain of debt. All the German banks have serious debt problems and the country’s sovereign debt will not be able to handle any small deviation or correction of the Economic path. The German Banks are poorly capitalized and are all locked in goose step and going over the cliff in formation.

George believes that “What was successful in Germany before the crisis will not be successful as a prescription for the rest of Europe in the years ahead.” And since the politicians gave up any serious control of the Banks to the same bankers back in the 1980’s we’ve come to see the same serious excesses of the errant banker-wanker mentality we’ve seen in Greece’s thoroughly corrupt banking sector and elsewhere where the nation was driven to default because of the Banks and their corrupt handling of the economy.

“In German the word Schuld has a double meaning (both “blame” and “debt”). So it is natural (selbstverstandlich) to blame the debtor countries for their own misfortunes,

“Germany’s tone, is sometimes self-righteous and even hypocritical…. Yet back in 2003 Germany was the first country to break the eurozone rules in order to prop up it’s own banks and create an illusion of stability. ”

The prospect of Germany leaving the eurozone is very real and it would have serious implications as the euro would depreciate sharply and the deutsche mark would go through the roof. It is at that point that Germany will find out how painful it is to have an overvalued currency.

George, who famously “broke the Bank of England” by betting consistently and at length against the British Pound Sterling, during the 1992 sterling crash, talks candidly about his most successful trade: Arbitrage, speculation based upon thoughtful and mindful discernment, and observation in order to be seeing the pattern that reveals the cracks in our financial systems.

Simply pt the Art of Investing is practised by the few of us who are trained and able to read the leaves and “see”

The small group of seers who are clearly a cut above — see with the eyes of the soul. The eyes of scientific reason…

Should You have any qualms — best to know that our influence in Society and Economy is always beneficial. We do our work quietly by exposing the
corruption and the systemic failures of the cannon of orthodoxy that rules so many faulty systems of zealots and hierarchical organizational machines.



We all know how corrupt the banks are and that we absolutely need now to rein them in. We need to let many of them simply expire. We need to let them die off and we need to built new banks and new institutions in their place. The corrupt cancerous Banking sector has to be cleaned up with serious surgery.

Yet the Governments in charge now within the Eurozone are so deeply in bed with the Bankers that it is difficult to find leading people able to do any of this. Hell — they are not even leaders. Vastly unable to regulate the banks and to rein them in — instead they are giving away the people’s money to the Banker-Wanker class of shady priests of corruption, willy-nilly. And thus a new Black Hole has been observed in the Universe — the black hole of the corrupt Banks of Europe. You know it is a physical impossibility to fill in a black hole…

Yet what about the Europeans? Are the citizens of this vast Democratic Union so ignorant that they are easily digesting the lies and obfuscations of their bankers and politicians coming down on them like so much brown rain from the saintly Media in the sky?

The people are ready to revolt and invite Cromwell back in with the guillotine operating at full speed; because no change is visible in the horizon without serious bloodletting…
So forget about change coming down the pike from this lot of current politicians and best serve yourselves a new batch of leaders unafraid to shut down the banks. Do this now because the current Loser-leaders are all ignoramuses and figureheads ready to spout the next inanity of a party line, and participate in this standard comedy of generalizations, and white lies, without any real thought of either telling the truth or addressing the needs we really have as Civilized and Democratic Society. Sadly, we are ruled not by the people but by some priestly class of nefarious wankers called bankers.

And by the way — It’s good and healthy to be able to profit from the inefficiencies and profligate corruption of this class of wankers.

In the end of the day it’s God’s work to break the back of these nasty purveyors of Bullshit called systemic banks.

In his new book: “The Tragedy of the European Union” George writes: “I have a clean conscience. The big events in which I participated would have occurred sooner or later, whether I speculated on them or not.”

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