Euro About To FOREX-plode

Wednesday, January 14, 2009

Euro About To FOREX-plode

This report from Open Europe gives anyone wondering why the Euro is falling fast against the US dollar the reason. The eurozone is heating up like a pressure cooker with the valve removed. All anyone can do is sit and wait until the steam pressure exceeds the strength of the steel pot and an almighty explosion occurs. Not only are a series of eurozone economies heading for sovereign debt default including Ireland, Greece and Portugal. European banks have leant vast sums to defaulting third world countries, especially in South America and Central Europe. The combination of the two financial black holes growing larger by the day will be an economic explosion never before seen on planet earth.

The Euro-sun will overnight become a supernova firing financial brimstone outwards around the globe as the Euro's energy source finally gives out. In this Open Europe report you don't even need to read between the lines about the impossibility of the Euro surviving. It's in the text.

Portugal has become the fourth eurozone country in as many days to receive a warning from Standard and Poor's that it faces a possible downgrading of its rating status because of its public finances, reports the FT. A leader in the FT warns that eurozone economies face specific problems in being unable to depreciate their currencies to help ease adjustments. The article also notes that credit risk spreads have suddenly widened in response to these warnings.

The FT Lex column argues that, because of the eurozone pressures, "The Irish referendum this autumn on the European Constitution [Lisbon Treaty] may well be an explosive vote."

Discussing the possibility that Ireland could become the "Iceland inside the Euro", David McWilliams, writing in the Irish Independent, argues that Ireland could end up defaulting on its sovereign debt. He also questions whether the EU would bail Ireland out, rather than allowing a sovereign default that could destabilise the single currency.

Eurozone President and Luxembourg Prime Minister Jean-Claude Juncker was quoted on EUobserver warning that, "The real test for the cohesion of the eurozone is still facing us...2009 is going to be an extremely difficult year."

PICTURE - A Supernova - the remains of an exploding star which has run out of fuel. The Euro will soon resemble one with the only thing visible a trail of dust. 

ADVICE TO ANYONE CONTEMPLATING BUYING EUROS - DON'T!!!!

ADDENDUM - Roger Helmer MEP adds his assessment - 

THE CURRENCY THAT FELL TO EARTH

Quote of the month

"Enough idle crystal ball-gazing: here's one prediction that's being backed by millions of pounds. Hedge funds are betting on a disintegration of the eurozone, and specifically that Greece, Italy, Spain and Portugal will pull out of the Single Currency".
Louise Armitstead in the Sunday Telegraph, Jan 4th.


It's hugely dangerous to pontificate about exchange rates, because your words can be overtaken by events almost before the ink is dry. But as I write (Jan 7th) I see that the euro is worth 90.5 pence. That's down from a peak of around 98p (if I remember). Of course we could be back to parity in no time, but if I were a betting man (I'm not), I think I should bet that we'd be back to around 70p by the mid year.

What's happening? My analysis is: it soon became obvious to the markets that the UK, facing the global recession, was badly placed and in a deep hole. It was less obvious that the euro-zone was in bad shape. Now it's becoming clear that Germany and other eurozone countries are also facing a sharp down-turn, and that rifts are opening up in the single currency, so the euro is slipping against other currencies.

It is reassuring that most major newspapers are warning, rightly, against any talk of Britain joining the euro. The risk of pound/euro parity was never an economic argument for joining the euro, but it seemed to exercise a fascination for simple minds. That risk is now receding.

Saturday, January 10, 2009

Historian - 'War Between Britain And EU Inevitable'

Follow this link written for Conservative Homeand see how historian Rupert Matthews sees exact parallels between the descent into the American Civil War, and the situation coming into being in Europe today. The problem then and now is the lack of clarity about the rights of States to secede from the Union, creating an inevitable future confrontation. The arguments about whether States can secede from the EU or not are very similar to the ones that were being made over South Carolina in 1860. 

Following the logic of the historical parallel being drawn, one is forced to the conclusion that when a country decides that it wishes to get out of the EU, the rest of the continent will use its military, secret service and State police infrastructure to suppress the political movement to leave, and do whatever it takes to block the exit route.

One might argue that such powers have already been used, as with the strange murder of Pym Fortuyn in Holland. He was about to win the election in 2002, and bring in a policy of withdrawal from the EU for Holland, but he was shot dead outside a TV studio two weeks before the election. At first the Police said he was shot by an 'animals rights activist' - who are not known for carrying out political assassinations anywhere else in the world, it has to be said. The story was later changed to an 'immigration supporter'. 

Britain also has incidents where politicians have been assassinated by unknown agents. Airey Neave MP died when a bomb was planted in his car detonated by a tilt switchin 1979. The INLA agents (Irish nationalists) who undoubtedly carried out the assassination have always said that they were fed the information of how to target Neave from the 'inside' i.e. by the British or possibly American Secret Service (CIA). Neave was a war hero, and Mrs Thatcher's closest adviser. He was also a known eurosceptic who amongst other things wished to stop her signing Britain into the coming European Union. He was murdered the day after Thatcher won the vote of confidence against James Callaghan, making her Prime Ministership inevitable.

Enoch Powell believed that Neave, Mountbatten and Robert Bradford were all murdered by the CIA at a time when America saw the EU as crucial for Europe's future, and these three strong British nationalists had to be eliminated. This extract from a google search -

Powell controversially claimed in 1986 that Neave had not been murdered by the INLA 'but by 'high contracting parties' made up of MI6 and their friends'. He was referring back in part to earlier comments made in 1984 when he had said that that the CIA had been responsible for the assassination of Mountbatten, and that the two murdered MPs, Airey Neave and Robert Bradford, had both been victims of an American conspiracy. Details in 'Like The Roman', Simon Heffer's biography of Enoch Powell.

PICTURE - Enoch Powell on a pogo stick.

Coming back to today's situation, with British Navy ships operating against Somali pirates under EU command, and the European micro-Army being quietly expanded to command half of Britain's land army as agreed at the Nice Treaty by Blair (unknown still to most British citizens), those who wish for a political movement to pull Britain out of the EU, were they to win political power, would find that now even their own armed forces were ranged against them. The Police have also been brought under EU control, and the Terror laws used to arrest Damian Green MP recently would be used to suppress any secessionsist poitical movement. As for Secret Service Operations, these too could be given the go-ahead to eliminate opponents of the EU if they were to threaten its existence and integrity. In the Nice Treaty Britain agreed that the phrase 'Defence Of The Realm' applied to the EU, and no longer to Britain alone.

The inevitable consequence would be not an open 'clean' war of secession between British and European armies but a dirty war with assassinations of key collaborationists, and brutal suppression of those involved in the fight to bring freedom back to Britain. It would be a close run battle, and one with uncertain outcome. But as hostorian Rupert Matthews demonstrates, the chance for a peaceful withdrawal by Britain from the EU is well gone.

PICTURED ABOVE - The South Carolina Congressmen who triggered the American Civil War by declaring a formal secession from the United States in 1860. President Abraham Lincoln decided to fight and force them and the rest of the seceding states back into the Union. Matthews shows that the phrase 'more perfect union' was the legal justification used for the war. As the States had signed up to that phrase in the American Constitution, they were not allowed to act against it later.

The phrase 'ever closer union' is the declared phrase in the Treaty of European Union, which was ratified by the British Parliament. This phrase would be held as a binding commitment by the EU, according to Rupert Matthews, and would be used to justify use of military force and other methods of violence to block Britain from withdrawing from the EU by the European Supreme Court.