I am looking for a word to describe the current state of market panic in Europe, arising from the differential between German bonds and those of other EU Member States. This differential is the premium paid by certain countries to cover the risk of default or; Spain and Italy are reaching 400 points or 4% difference with respect to German bonds. Every percentage point represents thousands of millions of euros in extra payments that Spain must make to the titleholders of its bonds in exchange for nothing except the “privilege” of getting “financed” by the international banksters to pay the interests on their previous financing.
The word I am looking for must somehow reflect the patent absurdity of the crisis pantomime, and the complete lack of understanding of the nature of this pantomime for a large majority of citizens. This is the situation as it is presented in the media: two or three private companies called ratings agencies decide how trustworthy each country is in terms of future debt repayment, and the markets reward or punish based on these ratings. Right now, Spain is trapped in the same vicious cycle that wiped out Greece, Ireland and Portugal, and is threatening to overtake Italy too: as the debt risk grows, the ratings fall, which in turn makes the debt risk grow even further. If it grows beyond 5% difference with Germany, it is considered technically impossible to service the debt and therefore the country is declared bankrupt. The IMF economic terrorism hit team lands the very next morning.
Mainstream news never frames the situation in blunt, easy-to-understand terms, such as clearly stating that the opinion of private, agenda-driven nonstate actors costs us taxpayers thousands of millions to cover a future default risk whether it happens or not. Because then people might start wondering why the international financial system always seems to be weak with the strong and strong with the weak. Or if the bigger-than-life, mysterious and wrathful entity known as “The Market” may be just a handful of parasites with a whole lot of smoke and mirrors.
The truth of the matter is that most people never stop to think why their country is on its knees groveling for money in the international markets –by selling debt that you will have to pay back at exorbitant interest rates– when the actual wealth of the country is actually growing: there are more and better prepared human resources, there is more research and innovation, more competitive entrepeneurs…. Ah! But what is all that compared to the debt risk? If you can’t keep getting into debt to service your eternal debt to the banksters, you have NOTHING. Maritime Admiralty Law dixit.
In the bizarro world of vulture capitalism, the vultures feast openly on the weakened bodies of their victims, the media tells us it is the victim’s fault and we believe it. We watch the politicos put on the big crisis act and tell us it’s all our fault, when they know all too well what is really going on as enablers of this crime against their own people and against humanity. But they can’t fool all the people all the time, and we will not forget.
But for now, many of us still believe it. It’s a shame, really, that here in Spain most people don’t savor the delicious irony in the names of these rating agencies: the Moody’s bipolar schizophrenic, and Standard that make you Poors. Maybe in Ireland they were able to appreciate it more, a real craic, let me tell ya.
So, have we come up with the word yet? I like phantasmagoric, but that’s just how it looks at this moment in time. Then I found the featured photo that seems to illustrate our inability to see the financial elephant in the economic dining room, and I thought that “surrealist” was another good option. Future history books will, with hindsight, surely subtitle this section as “The Crash: From Moody’s to Completely Nutty’s”.
This just in! Today Saturday, 6 August, S&P has announced that the US is going to lose its AAA rating for the first time. Funny, you’d think a corporate entity in Chapter 11 like the US Federal Government wouldn’t hold a triple A rating, right? Well, it would if triple A was fixed using the conditions of debt service for a bankrupt entity as baseline.
Such is the whoredom of the system that those who know what is really happening are complict with their actions or their silence, hoping there will be some spittle left over for them to lick when the day’s over. And those who try to sound the alarm are just random voices lost in the background noise, common folks who have to get it off their chest, be it in a blog or on a soap box in the park, for reasons of personal karmic accountability.
Bottom line: it’s not the banks or the nations that are too big to fail: it’s the lying foundation which must hold whatever the cost… but don’t worry, the slaves will pay the interests!