#fakenarratives, #fakenews, chastity belts, Chlamydia trachomatis, Cryptosporidium, Cultural Marxism, Deconstructionism, Dr. Curt Doolittle, Father Anthony Cekada, Fox News, Francis Effect, FrancisChurch - In Liquidation, Frankfurt School, FSSP, Genderism, George Soros, Germany, Giardia lamblia, Gonorrhea, Great Cardinal, Havana, Hemorrhoids, heretical pope, Herpes simplex virus, hippies, HIV, Holy Year of Mercy, Human immunodeficiency virus, Human papilloma virus, Humanism, Isospora belli, Jacque Derrida, James O'Keefe, Jesuits, Jesus Christ, Joseph Ratzinger, Jozef Pilsudski, Keynes, Keynesian Economics, Kirill I, Krakow, Law of Unintended Consequences, messeging, Mexico City, Microsporidia, Miracle on the Vistula, Modernists, MSM, narratives, Nassim Taleb, neo-modernism, Neo-Pagan, Net Neutrality, new springtime, New York Times, Nigel Farage, Pagan Christians, pathological, Poland, Polish Bolshevik War 1920, Pontifical High Mass, Pope Pius VI, President Andrzej Duda, Project Veritas, r/K Selection Theory, Raymond Burke, Refugee Resettlement Watch blog, Republic of Poland, retained foreign bodies, risk event, Roman Curia, s "c"atholicZombie, s "theological structuring", s ABC News, s ABERRO AGENDA, s aberro-sex agenda, s AIDS, s Ambiguity, s Anal Cancer, s Ann Corcoran, s anorectal traum, s Archbishop of Warsaw- Praga, s Associated Press, s Austria, s Benedict XVI, s Bergoglio, s Big Gender, s Bio-History, s Boris Johnson, s BREXIT, s Card. Muller, s Cardinal Burke, s Cardinal Kazimierz Nycz, s cardinal Walter Kasper, s Catholic Church, s Chapel of the Holy Trinity, s Pope Francis, Saul Alinsky, sCatholic Church in Poland, Sexually transmitted diseases, spirit of Vatican II, SSPX, St Thomas Aquinas, sustainability, Synod 2014, Synod of Filth, Syphilis25, Tags anal fissures, Tags Black Lives Matter, Team Bergoglio, The Remnant, The Scholasticum, theological deconstructionism, Thomism, Tradition, TransRational, Truth, Unjust ruler, Vatican II, Work of Human Hands, Zombie, ZombieBishop, ZombieChurch
So today the most talked about topic on Catholic Twitter is whether Francis will RESIGN or not RESIGN.
And as my dear and loyal readers know, this even more humble blogger is of the opinion that Francis, the dictator of Rome will not go voluntarily. He will need to be “nudged”.
What is also clear at present is that Francis has been able to “reconcile” with the #fakenews legacy media, who have “dialed back” on the anti-Francis narratives that arose after the initial Failing NY Times article that set off the l’affair Uncle Ted.
Furthermore, Francis after an initial period of PANIC, has appeared to regain his composure and is back to his old, arrogant, dictatorial and “humble” self. An example of this “rejuvenated” Francis is what he did to the US contingent that came to him with a request to allow for a transparent investigation into the afore mentioned l’affair Uncle Ted.
So we are back to business as usual.
But are we?
To conclude this post, once again a reminder of what we on this blog are watching and what this humble blogger thinks will be the “force” that will drive the proverbial stake through the heart of FrancisChurch.
And that “force” will be the disintegration of the Euro currency!
And just to remind everybody about this mechanism, here it is in quasi-mathematical notation:
German Media Foundations -> German Government -> German ‘soft power” diplomacy -> German Bishops’ Conference -> KIRCHENSTEUER -> FrancisChurch.
As as has been mentioned ad nauseum on this blog, it is the KIRCHENSTEUER that is providing Francis and FrancisChurch with the funding to do what it is that Francis and FrancisChurch do: destroy the Institutional Church and turn it into a secular non-governmental organization.
So naturally, if the funding is pulled, FrancisChurch goes bust.
And the only way the funding will be pulled is if there is a problem in Germany with the German economy, which directly translates into the proceeds taken into the KIRCHENSTEUER.
Nota bene: As per video, one way to interpret Francis telling the US contingent to take a long walk off a short peer is that: Francis don’t need no stinking American money!
But I digress…
And the Germany economy presently is enjoying a period of prosperity due to having an undervalued currency, i.e. the Euro as its national currency. This allows the Germans to export their goods and services at a rate that is so competitive that no other country in Europe (and most of the world) can compete.
Hence the trade surplus, resulting economic boom and the resulting KIRCHENSTEUER DOSH (larger annual gross receipts from a shrinking payer pool) flowing into the FrancisVatican.
And just to provide a more detailed explanation of this mechanism involved, below is a great post that appeared at the always reliable Zero Hedge website (see here) which explains in detail just this mechanism.
Furthermore, the post also provides an analogy to another system from days gone by that is very similar to this existing German construct. The important thing to note is that the demise of this German monetary “experiment” will proceed along the lines of that experiment that was known as the “transfer ruble”.
And finally, the note on which this humble blogger would like to leave off this post is to once again stress that: FrancisChurch is living on borrowed time.
All Euros Gravitate To Germany
The Euro has been around for almost 20 years. The Russian transfer ruble survived 25 years. As GEFIRA explains, the two currencies have something in common: they were and are not a success story…
The introduction of the transfer ruble was intended to enable free trade between the countries of the Eastern bloc. The creation of the common clearing system led to the exchange rates for the East German mark, zloty, forint, lev, and even the Mongolian tugrik being arbitrarily fixed by the Soviet Union, regardless of the purchasing power of the national currencies. In the 1960s, the Bulgarian lev was 20% undervalued and the Polish zloty about 45% overvalued. Since the transfer ruble was not yet convertible into Western currencies, it remained an illusion and a means by which the Soviet Union could enrich itself and save its budget at the expense of its satellite states: the Russians bought raw materials, goods, food for convertible currencies in the West and sold them to their “socialist friends” for transfer rubels. The international bank for economic cooperation, which sat in Moscow and handled all transactions in the transfer ruble, swept the real trade surpluses and deficits under the carpet. With the political change the common settlement currency came to to an end, and it turned out that the Soviet Union owed huge sums to its “brothers”.
The situation with the euro is a bit different these days. There are certain similarities to the red dollar (that’s how some people called the transfer rubble).
Firstly, all countries and citizens of the euro zone are constantly told that the euro is good for them all, which is not true. (The facts can be found in our other articles.
Secondly, the euro favours the trade balances of some countries (Germany, France) but damages those of others (PIGS countries).
Thirdly, the euro, as a transfer currency, contributes to the growth of mountains of debt.
Fourthly, the euro zone has been artificially extended – fortunately not to Mongolia – but Italy and Greece did not and do not fulfil the Maastricht criteria. This was the reason for financial crises and will continue to be so in the future.
There are also differences between the red dollar and the EU’s common currency.
Firstly, the euro is not just a currency for accounting purposes, it is the only currency in force in the countries of the fraternal EU community. The dream of the communists has come true and the central banks of the eurozone members have become zombies that are supposedly allowed to participate in decision-making.
Secondly, the mountains of debt are growing elsewhere – not the issuer/manager of the currency is in debt, but the “beneficiaries” who join the euro zone.
Greece’s debt was handled in such a way that the country received a huge injection of money from the ECB; Italy’s and Spain’s debt will soon cause sleepless nights for decision-makers in Rome, Madrid, Brussels and Berlin.
The counterpart of the Soviet transfer rouble in the EU is, to be precise, not the euro, but Target 2.
It is a payment system in which banks process cross-border payments in real time. In Target 2, surpluses or deficits arise when money flows from one eurozone country to another. During the aggravation of the last euro debt crisis in 2011 and 2012, capital from particularly affected countries like Spain and Italy fled through the Target 2 banking market to countries like Germany and Luxembourg, which were considered safe havens. Germany’s claims against the poorer southern European countries reached 700 billion euros at the time (see chart below).
The situation only returned to normal when ECB President Mario Draghi made it clear that, if necessary, he could adjust the balance sheet by printing additional money. Target 2 prevented the countries from collapsing. If Spain had stayed with Peso and Italy with Lira, they would have collapsed. Target 2 protected them from bankruptcy at the expense of German, Luxembourg and Dutch citizens. Since 2015 we have been observing the flight of capital to the north again, at a time when the money printing machine in Frankfurt am Main is working like crazy. This time, however, the capital flight is the result of Draghi starting QE in 2015 and the Bundesbank starting to buy back bonds on the market.
The Italian central bank is dependent on the ECB and has to buy Italian government bonds. German investors have to exchange these bonds for euros in Italy and transfer the money via Target 2 to their German bank. The growing differences in the Target 2 balance sheets therefore result from this:
- that the Germans, who own the Italian bonds, dissolve them in Italy and transfer the money thus obtained to Germany. It is the consequence of the earlier problems with trade balances: Italians bought German products with their bonds in the past. Germany therefore has more debt claims than any of its neighbours.
- that Italians liquidate their bonds and send their money abroad – a usual flight of capital.
So again enormously high debt claims arose on the German side. This year they have already reached a trillion euros, i.e. a huge amount of 25% of German GDP.
The immense German Target 2 claims are not covered by any securities. If Italy or Spain withdraw from the euro zone, the Germans will be left to their own devices. There is still no unrest in Germany over this, because confidence in the Bundesbank is well known in Germany. Jaques Delors once said: “Not all Germans believe in God, but all believe in the Bundesbank.”
Everyone probably believes in the ECB and Mario Draghi. At his press conference on 26 July this year, he wanted to have a calming effect when he spoke about Target 2: “It has nothing to do with the movement of capital from country to country”. In fact, it is only the clearing balances that can be overdrawn as long as no one leaves the euro zone.
So Italy must not leave the euro zone. It is “too big to fall”: its debt amounts to 2.3 trillion euros (!), liabilities in Target 2 rose in June 2018 from -164.5 billion euros in 2015 to -481 billion euros. This means that Banca d’Italia owes the Bundesbank almost half a trillion euros!
On the one hand there is Draghi, the Italian who uses his position to save his country, and on the other there are many German economists who criticise Target 2. Professor Hans Werner Sinn, for whom Target 2 is a cheque that cannot be cashed, is particularly well known. In one of his articles he describes the situation in Spain and Italy as follows:
“In these countries radical socialists rule who don’t want to know anything about budgetary discipline, in Italy the old parties were swept away. The radical government of Five Stars and Lega wants to take out much more credit under the protection of the other euro countries than it is taking anyway and threatens to leave the euro if the EU refuses to do so.”
Draghi takes a different view:
“The euro is indispensable because it is strong, because societies want it (!), and it is in no one’s interest to doubt the sense of its existence. It is not worth discussing the abolition of what is inevitable (!). That can only do harm.”
Comrade Draghi, of course, you are right, our transfer ruble is untouchable, and it is not worth discussing the existence of our (socialist?) community and currency. It will continue to exist for another 1000 years!
In 1990, Russia owed Germany 6.4 billion transfer rubles (7.4 billion euros) on account of its foreign trade balances. Schröder gave Putin 7.1 billion, and Russia only paid back 500 million euros. How much will Merkel give away to the south if something goes badly?