2012: What to Expect - Part 3

What To Expect in 2012

By Gary Kah

http://www.garykah.org/

Growing Unrest in Europe

While the situation in the US is unpredictable at best, matters in Europe are becoming more tense by the day. On December 5, the S & P security ratings agency warned 15 European Union countries of potential downgrades. The treasury bonds of Portugal, Ireland, and Greece have already been downgraded to junk status. Spain and Italy arent far behind.

Only a few weeks earlier Professor Simon Johnson, a former chief economist at the IMF, rattled nerves by warning that the world is looking straight into the face of a great depression. The IMF reported that loans had doubled to almost 200 percent of GDP ?C an unprecedented level of credit growth and about twice the intensity of the Japanese bubble in the late 1980s. EU commissioner Olli Rehn slashed growth forecasts from 1.6 to .5 percent for 2012, stating that recovery has now come to a standstill. Humayun Shahryar from the hedge fund Auvest offered the bleakest assessment, predicting the Eurozone faced a major economic collapse, perhaps with double-digit drops in GDP. He explained, European banks are massively over-leveraged and almost every one [of them] is worthless -This is going to be worse than 2008 because they have run out of bullets. The sovereign states are not strong enough to stand behind the banks

Niall Ferguson, a Harvard History Professor, elaborates: Europes problem is not just that governments are overborrowed. There are an unknown number of European banks that are effectively insolvent if their holdings of government bonds are marked to market in other words, valued at their current rock-bottom market prices.

Accurately anticipating such a crisis, the Vatican issued a special report on October 24, offering its solution. The 18-page document explicitly calls for the establishment of a global public authority and a central world bank to govern over financial institutions which have become outdated and ineffective. The world authority to be created would be given universal jurisdiction. Here are some excerpts from the report:

In fact, one can see an emerging requirement for a body that will carry out the functions of a kind of central world bank that regulates the flow and system of monetary exchanges similar to the national central banks. Of course, this transformation will be made at the cost of a gradual, balanced transfer of a part of each nations powers to a world authority and to regional authorities, but this is necessary at a time when the dynamism of human society and the economy and the progress of technology are transcending borders, which are in fact already very eroded in a globalized world.

(Source: Towards Reforming the International Financial and Monetary Systems in the Context of a Global Public Authority, The Pontifical Council for Justice and Peace, Vatican City, October 24, 2011.)

Already moving in this direction, the European Commission has recently taken steps to more closely integrate the economies and finances of its EU member states. On October 21, for example, European Council president, Herman Van Rompuy, put forth a proposal for a single Treasury to oversee tax and spending across the 17 eurozone nations. His announcement came after Europes finance ministers met in Brussels to find a way out of the eurozone crisis. Mr. Van Rompuy, who according to British sources is close to the German government, suggested plans for a finance ministry to be based either in Frankfurt or Paris.

Jose Barroso, President of the European Commission, has gone so far as to openly call for a Federal Europe a United States of Europe.11 This idea is rapidly gaining momentum across Europe, being viewed as a potential way out of the deepening financial and political crisis.

Europe, which is setting the tempo for the rest of the world on globalization, must be persuaded to take the next step into a fully integrated, multinational regional government which would conveniently fit into a system of global government (under a world political authority). In the mind of determined globalists, every crisis presents an opportunity to advance their agenda which includes the creation of regional federated governments that can easily be merged into a world government.

 European leaders are pushing hard toward this goal. This time, given the enormity of the crisis, they may finally have the leverage to achieve it.

Interestingly, while Europe wrestles to reshape itself, the blame for its problems  which are being used to force this change is increasingly being directed at the Jews. This sentiment is particularly well advanced in France, but is now spreading across other Eurozone countries including Germany, Greece, Spain, and Italy. History seems to be repeating itself.