The Goldman Sachs coup that failed in America has nearly succeeded in Europe—a permanent, irrevocable, unchallengeable bailout for the banks underwritten by the taxpayers.

In January 2012, a permanent rescue funding program called the European Stability Mechanism (ESM) was passed in the dead of night with barely even a mention in the press. The ESM imposes an open-ended debt on EU member governments, putting taxpayers on the hook for whatever the ESM’s Eurocrat overseers demand.

The International Monetary Fund is a most controversial organization. Founded after World War II, basically by the Anglosphere, it is supposed to provide financial aid to countries in need. It loans money based on deposits from the institution’s 187 (and counting) member countries. Balance of payment problems and problems of state profligacy can be addressed by an IMF loan. The IMF is often seen as a tandem enterprise with the World Bank, which was created at approximately the same time as the IMF.

It was initially conceived in 1944 and was up and running by 1945. Today, its reach is ubiquitous. Some non-members are North Korea, Andorra, Monaco, Liechtenstein, Nauru, Cook Islands, Niue and Vatican City. A 24-member Executive Board is in charge. The IMF is also expanding. In 2010 the G-20 voted to increase IMF funds to US$500 billion. There was an additional disbursement of US$250 billion to member countries via Special Drawing Rights (SDRs).

Despite the expansion, controversy continues, in large part because of the IMF’s partnership with the World Bank. In April 2007, Ecuador booted its World Bank representative from the country. A few days later, at the end of April ‘07, Venezuelan president Hugo Chavez announced that the country would withdraw from the IMF and the World Bank. Chavez said the World Bank/IMF tag team are “the tools of the empire.”

The World Bank and the IMF work hand in hand. The World Bank loans money to corrupt governments that loot or squander the funds and then the IMF comes in and insists on an “austerity program” of higher taxes and lower government spending to ensure the loans are paid back.

While the IMF is willing to provide either loans or an outright funding stream to the country in question, there are inevitably provisions to be followed. The IMF will likely insist on higher taxes, cuts in services and often privatization of industries. The IMF has gotten a bad reputation with developing countries because its solutions often eviscerate the middle class while the privatizations end up involving fire-sales bid out to Anglo-American corporations.

By exporting consumerism abroad, corporatizing impoverished countries and reorganizing them generally along Anglo-American lines, Western money powerhas extended its reach around the world without the overt colonialism that caused so much resentment.

The downside (from most people’s perspective) is that when the Westernization is concluded, when a given economy has “matured,” money power will move on, leaving behind only shambles and social chaos – a carcass nation picked clean of its industrial potential and another treasury filled with worthless scrip.

Pick something of value, make bets on the future value of “something”, add contract & you have a derivative. 

Banks make massive profits on derivatives, and when the bubble bursts chances are the tax payer will end up with the bill. 

This visualizes the total coverage for derivatives (notional). Similar to insurance company’s total coverage for all cars.

“Well, so far, from all of the European officials and from the new IMF branch office in Washington, we’ve had unanimity that there was no prospect, at any stage, of the euro being under threat.”

Nigel Farage continues:

“Suddenly, a big shot from the IMF says, ‘There is a problem here, and there may be a breakup of the eurozone.  It could come sooner than you think.’  I see that as a bit of a crack in the dam.  They’ve always used the argument that the euro was inevitable and it was here to stay, and an individual from the IMF has just completely blown that out of the water.  

(The breakup could be disorderly) because there have been no contingency plans.  This is what makes me so angry.  I’ve been saying to Barroso and that little Van Rumpuy character, ‘Come on, let’s have a Plan B.’  Let’s actually get ourselves ready in case it goes the other way.’  The point the IMF official made is that there have been no contingency plans whatsoever….

Central Banks Take Joint Action to Ease Debt Crisis … The Federal Reserve moved Wednesday with other major central banks to buttress the financial system by increasing the availability of dollars outside the United States, reflecting growing concern about the fallout of the European debt crisis. The banks announced that they would slash by roughly half the cost of an existing program under which banks in foreign countries can borrow dollars from their own central banks, which in turn get those dollars from the Fed. The banks also said that loans will be available until February 2013, extending a previous endpoint of August 2012. “The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity,” the banks said in a statement. – NY Times

Dominant Social Theme: Thank goodness the cavalry is here.

Free-Market Analysis: This is, of course, the Anglosphere power elite’s fundamental dominant social theme. Our Money Power is good and we use it wisely and well on YOUR behalf. The “system” cannot be allowed to falter or fail. Not an inch of it. Of course, we ask, “Whose system is it, exactly?”

It is not the system of about three billion people who live, around the world, on a dollar a day. It is not the system of homeless people in the West. It is not the system of a hungry child. It is not the system of a Latino day-worker. It is not the system of the beret-clad performance artist in Greenwich Village. It is not even the system of a US Marine fighting in Afghanistan.

It a system that is of peculiar benefit to the elites. They own it. They run it. They utilize its awesome power as necessary. How can one doubt the existence of a power elite when one watches the sort of spectacle described above by the New York Times (see excerpt)? Here’s some more:

“All across the western world, governments and major banks are rapidly becoming insolvent.  So far, the powers that be are keeping all of the balls in the air by throwing around lots of bailout money.  But now the political will for more bailouts is drying up and the number of troubled entities seems to grow by the day.  Right now the western world is facing a debt crisis that is absolutely unprecedented in world history.”

“We built the global financial system on a foundation of debt, leverage and risk and now this house of cards that we have created is about to come tumbling down.

 A lot of people in politics and in the financial world know what is about to happen.  Once in a while they will even be quite candid about it with the media.”

In addition you can also read the comment thread regarding this article over on Zerohedge.

http://www.zerohedge.com/contributed/prophets-doom-12-shocking-quotes-insiders-about-horrific-economic-crisis-almost-here