Valid HTML 4.01 Transitional

Welcome To The Blog Of
The Planetary Bill of Rights Project


We predict the following people would love this project if they read the book: Libertarians, Objectivists, classic
conservatives, classic liberals, Glenn Beck, Judge Andrew Napolitano, Ron Paul, Thomas Jefferson, Ayn Rand, Yaron Brook...
How The Collapse of EU Can Easily Bring Down the U.S. Economy
From the Intelligence Processing Network ( IPN ) of the Planetary Bill of Rights Project
January 25th, 2012

The financial news says that Greece's economy could collapse as early as March, when debt payments are due that they cannot possibly make.

“The country is already receiving loans of €110 billion ($139.5 billion) from a first bailout set up in May 2010. Earlier in January, Greek Prime Minister Lucas Papademos warned that “without an agreement with the troika and further funding, Greece in March faces an immediate risk of an uncontrolled default.” March 20 is the deadline for €14.5 billion ($18.4 billion) of bonds to be repaid.”

Many EU nations, with staggering debt and deficit problems of their own, caused by decades of failed socialist economic policies, are at the end of their ropes with the prospect of bailing out Greece anymore. That nation is the veritable poster child for failed socialist economic policies, and has experienced violent union/socialist insurrection at the very mention of taking the most minor band-aid type steps to try to pacify Greece's debtors. We understand that those debtors even include our “wonderful” Federal Reserve, which has loaned via the IMF, massive amounts of fiat ( AKA “worthless” ) cash, created with computer digits out of thin digital ether.

With many EU nations struggling with similar problems of their own, no one really has much taste for endless indulgence of Greece's staggering debt and their inability to ever repay it, making that nation sort of the “Welfare Queen” of EU. There's talk of an EU collapse anyway, and of just outright ending the EU. It was a fiscally insane idea to begin with, part of what Glenn Beck has referred to as Mutually Assured Economic Destruction, which he showed replaced the Cold War's nuclear MAD after the end of that era.

Like MAD, it was an insane idea at its inception – that nuclear MAD could be replaced by increasing the size of economic unions and interdependency. It will end in just the fashion that was indicated long ago by the insanity of the whole idea.

In a forced-collectivist world, the tendency is to increase the size and scales of government and to reduce the amount of individual liberty and sovereignty that's allowed by the mob rulers, to exist. It's kind of like the “Peter Principle” applied on a grand scale to forced-collectivist government – it will keep growing until it reaches the apogee of its incompetence, then it collapses. History repeats itself. How many times has it been seen before?

Unfortunately we're about to witness it all again, on one of the grandest scales ever. Greece is expected to collapse the economies of EU, probably bringing that insane Union to an end, which will in turn drag down the global economies, in a magnitude of scale previously never witnessed in human history. I refer to it as a global economic “Collapse”, with a capital “C”, because it will make the “Great Depression” that we had in this country pale by comparison, and seem like a Sunday school picnic.

When naïve liberals express to me that they sure hope Obama has “hope and changed” us into Marxist Messiah salvation soon, I look at them as if they're wearing beanies with propellers on top, and simply say to them that they will look back fondly at these days, someday, as the “good old days”.

Our entire standard of living will take a dive, with previously unseen levels of unemployment, and increasing calls for even more class warfare and redistribution of wealth, by the very factions that caused the horrifying mess in the first place, with just such policies.

Forced-collectivism is a disease that destroys society, and then pretends to be the cure for what it's done.

As this slow motion train wreck has unfolded in recent months, while the more aware of us prepare by gathering a one year food supply and other emergency supplies like guns, ammo and prescription drugs, we've been hearing “not to worry” from the perpetrators. They say that steps are being taken to “disconnect” the United States from the inevitable woes of EU that have been caused by the staggering decades-old failure of socialism and its social indoctrination there.

But there's a great big flaw with that. It reminds me of the captain and crew of the Costa Concordia off the coast of Italy recently, which had just struck a huge boulder, because they were showing off the grand cruise ship by cruising way too close to the shore, and they're telling people “not to worry, nothing to see here folks, go back to partying”, which even led one passenger to return to her cabin and take a sleeping pill!

You see, much of the sub-prime housing market, which was a big part of our crash of 2008, is comprised of Adjustable Rate Mortgages ( ARM's ) that are tied to the *Libor rate. Most of those loans have also been part of the 65 million that were sliced and diced in the MERS mortgage-backed-securities mess too, and though many of them have defaulted in recent years, most have still not. Many of the homeowners involved in these loans have been hanging on for years in this present economy ( that is, if you don't believe the current administration's chorus of “Happy Days Are Here Again” ), barely making the interest-only payments while they keep hoping against reality, that things will turn around. This despite the current administration's years of “War on Business and Capitalism” and not allowing anything viable to take place which might actually help relieve our energy dependency on foreign depots. ( No drilling, no pipelines, no new modern designs for safe clean nuclear plants, etc. )

* “LIBOR stands for London Interbank Offered Rate. It's the rate of interest at which banks offer to lend money to one another in the wholesale money markets in London. It is a standard financial index used in U.S. capital markets and can be found in the Wall Street Journal. In general, its changes have been smaller than changes in the prime rate."

The Libor rate was great while it was kept artificially low since the crash of 2008, but with EU's woes now reaching a crescendo, that rate has been creeping up this past year. People who were previously able to make their payments because their ARM was holding at around 2.6%, are now seeing that it's crept up to 3%, increasing their payments by around $60 a month in the case of one family we know, who have been “just hanging on” in this economy, and barely paying their bills. This in light of a home that has fallen in value by about 25% below what they borrowed against it in early 2005, when they really couldn't qualify very well anyway, and “went sub-prime”.

So fast forward to today and that creeping sound we hear from the Libor could soon become a roar, if Greece collapses and drags the EU down the rat hole with it.

What could U.S. homeowners see their ARM rates shoot up to then, and what would that do to the U.S. Economy?

The words of that old Bob Dylan song, “a hard rain is gonna fall”, echo through my mind, for this is the inevitable path that forced-collectivism takes people and nations down - the “road to serfdom”, poverty, tyranny, slavery, and often tens of millions of deaths, and you see, most people still just haven't learned this.