'War' Against U.S. Economic Terrorists Looming?

Ever since I published a recent commentary on this subject (“U.S. Economic Terrorism the New Winning Trade”), there has been a rapid growth of condemnation from various European leaders of the “speculators” in the credit-default swap (“CDS”) market. France, Germany, and Greece have been the most vocal critics of these financial predators.

As I discussed in that previous piece, while CDS contracts are a form of “insurance” (insuring against the default on a particular debt instrument), unlike fire-insurance, the predators using these “financial weapons of mass destruction” can cause a default (and a pay-out on this insurance speculation), or simply push “credit spreads” to such dangerous levels that they can cash-out huge profits “trading” this insurance. This can (and has) been done by the U.S.'s economic terrorists – through massively piling into the trade (which, by itself has caused credit-spreads to widen dramatically) and then exacerbating the “crisis” with months of around-the-clock propaganda, intended to frighten the market, and exaggerate the severity of (in this case) Greece's financial problems.

I have already revealed in a previous commentary (see “Fiscal Follies: Greece versus the U.S.”) that while Greece has fiscal problems which are very similar to those of the United States, the fiscal problems of the U.S. are worse in every respect. Claims by some brain-dead commentators that the U.S.'s printing press gives them an “out” which is unavailable to Greece ignore the fact that hyperinflation (from “monetizing” trillions of dollars of debt) is a worse fate than even a default on government debt.

The only people who fare better in a hyperinflation scenario than a debt-default scenario are the banker Oligarchs. This is why I and many other commentators conclude that the U.S. government has already chosen to deal with U.S. insolvency through hyperinflation. The fact that American commentators (inside and outside government) continue to refer to the U.S. printing press as some “magical” device, which can print-up infinite amounts of money with no consequences reinforces that conclusion.

Returning to the current, U.S.-induced crisis in Greece, the war-of-words between European governments and the economic terrorists has heated-up, with the current President of the EU openly talking about a “complete ban” on all “speculation” in the CDS market. Specifically, the ban is intended to prohibit “naked” CDS contracts, where traders purchase CDS contracts despite having no “insurable interest” (i.e. these traders are not parties to the original debt transaction).

Not surprisingly, there has been a rapid response from the U.S. propaganda-machine – and the U.S. government. The reply, or threat from the banksters was that if such CDS trading was banned in Europe, that this “trading” would shift to “other markets” (i.e. New York). Essentially, the propaganda-machine claims that the economic terrorists would simply continue their “games”, since there is nothing the Europeans can do to stop such terrorism from across an ocean.