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By Bob Chapman, February 8th, 2012.

There are many ways for sovereigns to sell their bonds or roll over existing bonds, and one of those wrinkles we mentioned last week. We saw European banks buying US Treasuries and that is happening. These euro banks buy Treasuries and then put them up for collateral with the ECB and purchase the three-year 1% yield repos being offered by the ECB. This is really another form of quantitative easing. It may be debt but it is also an expansion of the money supply. This little game allows US Treasury financing and if something goes wrong the ECB, the public, gets caught holding the bag. Obviously this is another part of the Ponzi scheme that the elitists are using to keep the monetary system afloat.

The idea that Germany wants Greece to give up control of tax and spending decisions has met a stonewall in Greece, as one would expect. That is like financial occupation, what the Greeks went through in the 1940s. We do not think the German demands have a chance of acceptance and that $170 billion bailout will take place.

The Troika has proposed extra Greek spending cuts of 1% including health spending, defense and an additional 150,000 jobs over the next three years. The IMF has said such cuts will impair any recovery, so the question arises why do they want to keep on cutting when they know the economy will experience depression?             The merger of the EFSF and the ESM is off as Germany parliamentarians...
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