Sunday, July 8, 2012

EUSSR: ESM and High Treason by the Elites

Free translation and cross posted from

The small print in the ESM Treaty reveals that national parliaments have been purposefully hoodwinked

Analysts of the American mega bank Citi Group are a rare breed: they have actually read the entire text of the ESM Treaty. In an internal report meant for its clients the bank reveals that national parliaments have been consciously deceived by the EU into voting for the ESM. Contrary to what they thought was agreed, the parties - primarily German and Dutch tax payers - have no preferenced creditor status (1). It means that the  creditor nations will never recover their money. Thanks to all the political parties that have voted for this deal.
'Stealth Subordination' (embedded at the bottom) is the title of an internal Citi Group report in which the fraud perpetrated by the EU on the national parliaments is set out. The ESM is a safety net to banks in the periferal countries; the fund will buy the sovereign bonds of the countries in trouble, in order to keep the staggering interest rates in check. The idea has been launched to have the ESM bail out banks directly. But acccording to German, Dutch and Finnish sources this was not on the agenda of the EU summit last week. 
But EU President Herman van Rompuy has insisted that it was! Dutch lawmakers queried the Prime Minister why he denied it being an agenda item, prior to signing up for it (2). But these parliamentarians are just are guilty, since they too effortlessly agreed to the Treaty without even going through the trouble of reading it! (3)
National parliaments have been tricked by the EU. The impression was made  that the tax payer would have preferenced status in the case of a default. British and German lawyers have also noted the omission from the text of the Treaty. The status is based on 'standing practice' of other supranational financial institutions like the IMF and the World Bank.
Point 13 (page 5 of the Treaty) stipulates in German the preferenced status, but in the English text the word 'declared' is used. There has been no official decision on the subject. The only thing that transpires is that the IMF has preferenced status over the EMF.
But preferenced status of the EMF over (private) creditors isn't even possible, because a default would trigger a credit event which would automatically lead to claims of billions of euros in Credit Default Swaps. The entire financial system would collapse. 
Citi Group analysts conclude that the ESM had to be 'sold' to the European member states; preference is an important argument to obtain the agreement of politicians who are answerable to the electorate. The clever inference that 'like the IMF' preference is given, actually means that the tax payer is less protected than superficial analysis warrants. Only specialists will notice the subtle difference. 
This proves that tax payers have been consciously misled. The drafters of the Treaty have presented the citizens with a document in which the tax payer is deceived. Again: European tax money does not get preferenced status. If it would have, the European sovereign bond market would have collapsed.
The main culprits behind this unprecedented deceit of the people are EU President Herman van Rompuy en EC President Jose Manuel Barroso. Van Rompuy had the nerve to declare that the ESM was drafted 'very intelligently'. From his point of view it undoubtedly was a very clever bluff to bamboozle the national parliaments in the euro zone, so that the EU can use Dutch and German tax money like an ATM machine.
The Citi Group analysts state that as a consequence of the deceit, financial markets do not trust the present agreements and will only accept the ESM if further political and economic integration will take place. The message is clear: after the Greek bailouts private investors will only buy sovereign bonds of debtor nations on condition of better security.
The EU is not far removed from the end game, the very reason why this crisis was triggered: a full transfer union resulting in a full political union. Financial experts conclude that Germany and the Netherlands will be presented with the bill because other countries overspent. (1)
Generations after us will condemn the ESM and the politicians who have agreed to this Treaty, betraying the people, the sovereignty, liberty and wealth of their nations. The ESM is the greatest disaster that has befallen us since World War II.
(1) Deutsche Wirtschafts Nachrichten
(2) NU
(3) Dagelijkse Standaard

Stealth Subordination Citi Matt King - June 25 2012