Tue Apr 3, 2012 10:51AM
The so-called EU firewall aimed at stopping financial contagion is solely “another debt proposal” that leaves debt-stricken countries like Greece even more in debt, a financial analyst tells Press TV. The remarks come as eurozone countries continue to enforce austerity measures to fend off the 17-nation eurozone currency bloc’s two-year debt crisis. Yet the implementation of austerity cuts has often been met with incidents of social unrest and massive street protests in many European countries. There are fears that more delays in resolving the eurozone debt crisis, which began in Greece in late 2009 and infected Italy, Spain and France last year, could push not only Europe but also much of the rest of the developed world back into recession. Press TV has conducted an interview with Paris-based financial journalist and broadcaster, Max Keiser, to further discuss the issue. The following is an approximate transcription of the interview. Press TV: Max Keiser, the governments are saying that these cuts, the spending cuts, they’re needed to restore market confidence, the European commission has recently said that the debt fighting strategy, the reforms are crucial and they will take time to bear fruit. So basically is this waiting for these reforms to bear fruit- is this going to work? Keiser: Well, all of the governments and the banks that control the governments are proposing additional debt. The ‘firewall’ that they talk about is another debt proposal, refinancing the current debt with more debt; Greece was left with more debt than they were during the- before the recent bailout from the (International Monetary Fund) IMF. You have to understand that debt is to the IMF what Zyclone B was to the Nazis. Press TV:Max, the question that I put to our guest in Glasgow was what are the options that governments can take in the face of this debt besides this austerity drive. Is there something that they are forced to accept because of the conditions that have been put on them from the European Union and the IMF or do you think there is other options now for these governments to adopt? Keiser: The governments are doing the bidding of the bankers, the debts were illegitimately conceived to begin with, again this is a financial holocaust. The people who are dying here, these are the new Jews and the bankers are the new Nazis and they have a program of extermination using debt- the same thing as in Iran they’re being targeted for extermination by the bankers in America, the same thing in Europe, the same thing with Greece being deprived of Iranian oil because IMF is in the extermination business. Please understand this you’re in great danger if you live in these countries to be financially exterminated that is the risk. You now know what the risk is if you stay there it is your choice to do so. Press TV: Max Keiser, do you think then that if the strategy is adopted including as our guest in Glasgow is saying devaluating the currency renegotiating debt, lowering wages that these are actually going to work? Keiser: Well, first of all let me address the point about the illegitimacy of the debt. We know now from the record, from the legal record that the debts that were foisted on to Greece were illegitimately and illegally constructed by Goldman Sachs. This is not in dispute at this point and that other Wall Street banks have been involved in Europe, in packaging completely illegal and illegitimate multi hundred billion dollar debt refinancing. And there are a lot of proceedings and many lawsuits in the process against these banks and of course you cannot include the United Kingdom when you’re talking about Europe because the UK is really the global headquarters for financial fraud. Lehman Brothers collapsed, the AIG collapsed, the MF global collapsed- all went through the UK because the UK has the worst regulatory track record against going after corrupt banks like Barcley’s or HSBS or any of the Wall Street banks, it’s the easiest place to conduct financial fraud. And as David Cameron himself has said in the House of Commons he won’t sign under any agreement with Europe that stops the city of London from continuing as being the global headquarters of financial fraud. So let’s make that point clear as far as how to increase revenues or decrease revenues that’s a good point because when you have predatory banks that are putting in debts that are illegitimate and illegal for the sole purpose of extracting wealth from the population through austerity measures, the problem is not political, it’s not financial- the problem is something more serious than that. And of course when you have populations revolting as they are in countries around the world you see the trend that there’s a global insurrection against banking terrorism. Press TV: Max Keiser, when we say devaluating the Euro and at the same time with countries like Spain followed by Italy facing really precarious conditions right now basically is the eurozone prepared to attempt first of all another bailout and can devaluating the Euro work here when it’s facing this recession situation? Keiser: Well, first of all to address the point whether or not European goods are competitive or not, the German manufacturing is the best in the world, it’s- nobody comes close, they have the strongest manufacturing sector in the world, they have the finest manufacturings, products in the world and that’s been that way for quite some time. I don’t know how anyone can make the statement that European goods can’t be competitive but here’s the thing about having a devaluation of the Euro: if you do that, of course you raise the cost of your inputs like oil and other raw materials. So you really have to- you’re straddling a thin line and then when you get back to Germany, Germany of course is running the entire show. They want the Euro to be cheap enough so that their export model is strong but they don’t want the Euro to be too strong because that would hurt their exports. That’s why Germany doesn’t mind having Greece going bankrupt, doesn’t mind- and these are very small countries- doesn’t mind having Ireland going bankrupt, Portugal going bankrupt - these are really very small economies that help keep the Euro cheap which aid Germany. And of course Germany now is running the fiscal integration of all of Europe so they’re getting a play on the entire eurozone as another huge profit centre. So Germany is in the driving seat. They’re playing this brilliantly and the people in Greece are being completely destroyed in a lot of ways for the glory of Germany. VG/MB