Bernanke & Draghi are dangerous

SUBHEAD: The ECB inspired rally comes at an unbearable cost that will have to be paid some day soon.  

By Charles Hugh Smith on 26 July 2012 for Of Two Minds -  
(http://charleshughsmith.blogspot.co.uk/2012/07/bernanke-and-draghi-are-dangerous.html)

 
Image above: The vampire squid rides the stock market bull. From (http://blueinthebluegrass.blogspot.com/2011/11/octopi-they-are-97-percent.html).

"The world's most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money”

- Matt Taibbi, profiling on investment bank Goldman Sachs for Rolling Stone

What is being sacrificed to maintain the euro and the E.U./U.S. banking cartel? Everything of value: liberty, democracy and sovereignty.

Today we present the culmination of the previous entries ( Global Crisis: the Convergence of Marx, Orwell and Kafka and Are You Loving Your Servitude Yet?): A brief commentary by longtime correspondent Harun I. on Mario Draghi's market-moving statement:

“Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough."

Nice, Mr. Draghi, but at what cost? And who will ultimately bear this cost? It is already far beyond the measure of mere money; democracy, truth and sovereignty have all been destroyed to prop up the central bankers' Status Quo. We can presume Mr. Bernanke and the Federal Reserve are in on the propaganda campaign, and so we need to examine the words and promises of these two central bankers, as well as what they have not said. Is talking about printing money as good as actually printing money? It would seem so. Is promising to "do whatever it takes" as good as actually doing whatever it takes? Once again, it seems so; global markets leaped at the "news" that the financial Status Quo was going to be "saved" yet again. What if it is beyond saving? What if the cost in treasure, blood, liberty, sovereignty and truth is not worth the 'saving" of a broken, unsustainable, corrupted, parasitic, predatory system? Do we get to choose, or are we just passengers on the train as the central bankers accelerate toward the chasm ahead?

Here is Harun's commentary:

Words have meaning and people should choose them carefully. Nigel Farage commented that what he saw in the faces of EU officials was "madness". We should not underestimate his assessment. At some point these individuals have to be viewed as dangerous. If we peer beyond terms such as QE, printing money out of thin air, stimulate, etc, and understand their effect, they begin to appear not so benign.

What if central bank officials came out and said, "We are going to raise your taxes", or "we are going to reduce your purchasing power", or, down to its essential point, "we are going to take money out of your pocket"? We know that there would be an uproar.
So, what did Draghi just say? He said he is willing to destroy the purchasing power of the Euro in order to save it. But let's go deeper than that. These people are willing to see countries rip themselves apart, property destroyed, and most importantly, people dying, to preserve some frivolous ideology called the Euro. If on the other hand this is about maintaining the power of the elite, it is much worse, because if this were the case then we are seeing an attempt at totalitarian rule by what you call the "stateless state".

But of course, the markets cheered. At least that is how it is interpreted. I interpret it as people reacting to prevent the confiscation of their purchasing power by someone they cannot un-elect.

Who elected Draghi and endowed him the authority to tell Europeans that they will suffer and die before the Euro? How much violence is ready to be endured and how many lives is the EU body willing to sacrifice upon the alter of the Euro or any monetary system?

Not one official has declared that they will "do whatever needed" to preserve liberty, democracy and sovereignty. Does this imply the Euro has a higher priority? Does the end of the Euro or the present monetary system mean the sun will stop spinning and all of its planets will be sent hurtling through the cosmos? The callousness and detachment from reality in an effort to save a nonessential thing makes them dangerous. The more desperate they become the more dangerous they become.

If just one of them would publicly muse aloud that perhaps a mistake has been made, and perhaps a rethink of the structure of the EU is appropriate, I would feel better. But they are willing to confiscate your labor through monetary chicanery, deny liberty, destroy democracy, ignore sovereignty, and even witness violence and death, not just in Europe but in the US as well, to maintain a system that is horribly and irrevocably broken.

Lastly, much is being made over whether the German Constitutional Court will ratify the ESM. The German High Court is wasting its time or willfully participating in a charade. A fund that will be used to bailout the very people who must provide funds to the fund is as ridiculous as this sentence sounds. Mind you that the countries that are suppose to provide funding to the ESM must borrow to do so and then must turn around and borrow from the ESM, effectively borrowing the same non-money twice -- at interest.

(If the money is "borrowed" from the ECB, which has no "money" and then "borrowed" from the ESM, the ESM will not owe a debt to the ECB. Therefore, the sovereign will owe a debt to the ESM and the ECB.)
All that has really been accomplished over the past hundred years is the establishment of elaborate transfer mechanisms, each destroying wealth one order of a magnitude faster than the previous.

I never thought I would witness such collective madness. But the worst part is that it is anything but benign, and, it is only just beginning