Posts Tagged ‘Eurobonds’

Euro-crisis is successfully pauperising European citizens. #Occupy #NHS #Unions

February 10, 2012

Fullermoney reported that the CEB had sold a load of Eurobonds ( Gov’t speak for IOU’s) at 0% to SIG (Spain Italy and Greece).

These immediately sold their own bonds at ~6% to the banks (e.g. Goldman-Sachs).

So banks were effectively getting German backed IOU’s with SIG paying them interest at a high rate.

The only beneficiaries were the banks (e.g. Goldman-Sachs).

The losers (beside the German workers) were  the SIG electorate, who had to lose State assets, their own pension rights and chunks of state backed services, such as Health and Education, just to pay the interest on these loans.

Now the B.o.E. has announced £50 billion of Quantitative Easing (total now £325 billion), which essentially means that the Government has devalued the Pound again.

This acts against the UK people in three ways.

First their spending power is reduced, as the pound buys less.

Second the bank  interest rate is kept low, so pension funds actually lose value.

This occurs because the banks (e.g. Goldman-Sachs) hold the pension funds and charge a service fee for doing so.

Meantime, a doubling of iniquity, they are using those funds to buy bonds etc., knowing that if the bonds (remember they are actually I.O.U’s) aren’t honoured. then it’s not their money that is lost, it’s the pensioners money.

Third, The banks (e.g. Goldman-Sachs) hand over assets to cover this gift.

As these assets are undoubtedly SIG bonds, which could default, the Gov’t has effectively bought the equivalent of “sub-prime mortgages” with our money, which is based on our own bonds, for which we have had wholesale cuts in State assets, our own pension rights and chunks of state backed services, such as Health and Education.

All those who have been sacked from such services, can take comfort that they have enriched bankers.

In short, it seems that the Euro crisis is designed to provide a money-go-round, which at each stage is used as a mechanism to pauperise European citizens for the benefit of the Capitalists, who back the banks.

That’s presumably why they need such big bonuses for their troops. It’s to ease the consciences of those who understand what they are doing.