Greek Domino falls, China moves in to pick up the pieces
So, it has finally happened, Greece has shut down its banks and
imposed capital controls. And so the dominoes start to fall. This is
only the first act in a grand opera that will continue to unfold in the
coming months. To try to guess what is in store for the European Union,
it is good to take a look at how the fall of the Soviet Union took
place. The fall of the Soviet Union began with a widespread sense of
dissatisfaction with the government among both the working class and the
elites. This gave birth to strikes and demonstrations in Poland that
led to the fall of the Polish government in June of 1989. In November of
that year the Berlin wall came down. Then, running into 1990, the
communist governments of Czechoslovakia,
Romania, Bulgaria and Hungary fell. Finally, in December of 1991 Michael
Gorbachev resigned and the Soviet Union itself collapsed.
So now that Greece has failed we can expect Spain, Italy, France, Germany and finally the United States itself to follow a roughly similar trajectory to what we saw with the Soviet Union.
What most people still do not realize about the fall of the Soviet Union was that it was not caused by failed ideology but by actual financial bankruptcy. That is why the United States and the European Union, which is modelled almost exactly on the Soviet Union, are doomed to experience regime change. They are bankrupt.
Chinese and BRICS government sources explain what they are going to do next. Chinese number 2 Li Keqiang is arriving in Europe this week where he will announce China will contribute generously to a European reconstruction fund with an initial budget of 315 billion Euros. It is no coincidence that this is almost exactly the same amount as the Greek debt total is.
The Chinese offer of bail out money for Europe is the one of the reasons why the UK, France, Germany, Italy, Switzerland etc. agreed to join the China initiated Asian Infrastructure Investment Bank.
In addition to this, the BRICS development bank, the Asian Infrastructure Investment Bank and many other new institutions are also now opening shop. All of these institutions will be helping direct a flow of $21 trillion worth of Chinese money that is expected to flood world markets in the coming months and years.
In parallel to this, there are also ongoing negotiations on what rules will apply to the $21 trillion worth of Chinese savings that the Chinese government is soon going to let Chinese citizens invest overseas. Basically this amounts to discussions about what areas the Chinese will be allowed to invest in and what will be off limits.
The Europeans are much more open about what the Chinese can invest in than the Americans. So far, the British have already offered ownership of a major newspaper (this writer is involved in the negotiations so cannot disclose the name of the paper) to the Chinese. The newspaper deal will involve a promise by the Chinese to not interfere in fact based reporting. The British are also trying to find a Chinese buyer interested in the British Telecoms’ landline infrastructure, among other things.
The British are further along in their negotiations with the Chinese than other Europeans but you can be sure the Greeks, then the Spanish, Italians and others will not be far behind.
Hungary is ahead of the rest of Europe in that they have already agreed to participate in the Chinese silk-road initiative to build extensive transportation infrastructure across Eurasia.
By contrast, Chinese and American negotiations over what parts of the US economy Chinese would be allowed to invest in failed last week. Chinese sources say this was because the Americans were unwilling to open enough sectors to Chinese investments. Pentagon sources say the negotiations failed because the Chinese were reluctant to start merging Chinese armed forces with the Pentagon. State Department sources added the Chinese were also still unwilling to open their financial markets sufficiently to Western financial institutions. Of course, seeing what damage Western financial institutions have caused around the world, Chinese reluctance to allow them free reign seems quite reasonable.
Even as this avalanche of Asian money looms over the world markets, there are still frantic moves afoot to try to keep the old Western system solvent. The latest move on that front, according to Japanese right wing sources, has been a request by the US Treasury Department that the Mitsubishi Group take-over the Union Bank of Switzerland. The problem is the Americans are not letting Mitsubishi do any real due diligence. The right winger recalls the same thing happened when the Japanese were asked to bail out Merrill Lynch. “They are just asking us to fill in a black hole,” he complained.
The Mitsubishi Group, with its close ties to David Rockefeller, is the main force behind the Abe slave regime in Japan, according to multiple sources here. Abe, because of his low IQ, was sent to the low prestige Seikei University founded by the Mitubishi Group as a favor to his war criminal grandfather. It appears forcing Mitsubishi to buy UBS is payback for the US campaign to allow Mitsubishi Heavy Industries to start exporting weapons.
The military build-up in Japan is part of a plan first proposed by Senior Nazi cabalist Richard Armitage more than a decade ago. The Abe government is betting its final energy on laws aimed at integrating the Japanese military with the US military. These are expected to be pushed strongly over the summer.
