As a decadent Europe crumbles under the weight of its debt to the banker’s dictatorship over Spain, Portugal and Greece, Barclay’s Julian Callow recommends invoking broad EU treaty powers under Article 122 to “halt the contagion…. If not contained, this could result in a ‘Lehman-style tsunami’ spreading across much of the EU.”

Pimco has warned that the U.K. is in big trouble, because the British have more than £100 billion tied up in continental European government and commercial bonds. The Independent cited Banco Santander as the biggest loser last week, with a 16% drop in its stock value. “Sovereign debt is the new sub-prime,” with the Greek, Portuguese, Spanish and Irish crises following off the Dubai World blowout. Although Dubai World was bailed out by Abu Dhabi, the contagion of sovereign default risk has spread into Europe and beyond.

Insiders claim that “a large US Investment Bank and two Hedge Funds” are conspiring to destroy Greece on CDS spreads (the real threat of contagion–the threat of financial superpowers to destroy entire nations because governments collectively empowered them to do so).

As the serfs revolt, Portuguese Finance Minister Teixeira dos Santos declared that Greece and Portugal are victims of the “animal spirits” of the financial markets. The government expects to pay off some of the debt by selling national assets … and will push through privatizations that they expect to yield EU960 million.

Take note America, for this is the final stage of globalism - actually selling off national assets to pay off crooked debts because governments have bought into the banker’s con game that the fraudulent wagers are to be bailed out above all else. As the definition of “bankruptcy” in its purest sense bears out, there is not enough money, or people, or resources, or productive capability in the entire world to bail out the 1.75 quadrillion dollar derivative Ponzi scheme … So to honor it, means to crumble into default, and enter a new dark age of global submission to the banks.

It is our national assets: land, buildings, infrastructure, which are the last bastion of economic capital from which to draw upon sovereign credit issue. Once they are relinquished, all hope is lost. Once “privatization” is complete, even the human resource capital is relinquished. Once JPMorgan or Goldman Sachs owns the Statue of Liberty, who is to say that it will not become a symobolic plaything for the Saudi’s to defile–it is just a matter for the highest bidder to decide.

Far fetched? Can the things you are witnessing today be considered anything less had they been predicted two years ago? Consider this: It is precisely the Obama - Geithner - Summers axis of lunacy, and it’s stimulus / bailout mentality that has helped spread the contagion. And Europe’s leaders, seeing the seeds of destruction that they themselves have sown, speak out against the U.S. policy of nurturing of this crop of doom. 

It all boils down to this, as we forwarned: 

“Put the UK on the list” of coming sovereign debt downgrades and defaults, said former IMF chief economist Simon Johnson in a BBC interview on Sunday. As it was reported that Royal Bank of Scotland (RBS, now essentially nationalized by bailouts) would report a 2009 loss of over $10 billion this week, Johnson added the simple but essential point: The European countries on “that list” are facing sovereign debt crisis and default because of the huge layouts they made in ultimately futile actions to bail out their big international banks.

That insane policy was driven by British officials through the February 2009 “G-20″ conference where Obama backed the British; and now, it is dooming the British and others in the Keynesian Fantasy “Euroland” who followed it.

We followed very carefully last April (and quoted) the Cuomo testimony, as well as the live testimony in which Ken Lewis, Henry Paulson and Ben Bernanke were questioned by subsequent congressional inquiry.

It should be beyond any reasonable doubt, to anyone with a clear recollection of those events, that Lewis was forceably coerced by Paulson and Bernanke NOT TO DISCLOSE the Merrill merger. And we reprint that testimony, as reported by the media (who apparently and conspicuously have since forgotten) below:

Lewis testified for over four hours in Cuomo’s New York offices on Feb. 26, 2009. The WSJ provided a transcript of the following exchange:

Cuomo: Were you instructed not to tell your shareholders what the transaction was going to be?
Lewis: I was instructed that ‘We do not want a public disclosure.’

Cuomo: Who said that to you?
Lewis: Paulson …

Cuomo: Had it been up to you would you (have) made the disclosure?
Lewis: It wasn’t up to me.

Cuomo: Isn’t that something that any shareholder at Bank of America … would want to know?
Lewis: It wasn’t up to me.

Cuomo: Wasn’t Mr. Paulson, by his instruction, really asking Bank of America shareholders to take a good part of the hit of the Merrill losses?
Lewis: Over the short term, yes.

Now, this IS the same Andrew Cuomo who is prosecuting this guy today for failure to disclose the merger to shareholders. AND IN FACT, one can make the argument that Lewis threatened to invoke the infamous MAC (material adverse clause) NOT TO EXTORT MORE TARP  but in fact TO PROTECT HIS SHAREHOLDERS (after all, if Lewis wanted 25 billion more he could have just written “50″ on Paulson’s bar napkin).

And furthermore …

The Wall Street Journal previously reported on Feb. 5, 2009, that Lewis agreed to proceed with the Merrill merger only after Paulson and Bernanke said he and his board would lose their jobs if Bank of America backed out of the deal.

And if that is not enough, how could one forget the perspiring “I don’t recollect” Paulson and the squirming “I don’t recall” Bernanke in congressional testimony, wriggling  over evidence of their culpability in this coverup, all in the same fashion as the AIG coverup for which Bernanke is now being held to the fire, in recent ISSA subpeona’s showing his disagreement with FED staff over public disclosure (sound familiar?) and even the decision to bail out AIG at all.

We also told everyone who cared to listen back then, that Lewis was going to be made a scapegoat for threatening to invoke the MAC clause, and that Paulson and Bernanke would double cross him for that in the end.

AND HERE IT IS FOLKS, the Potomac double standard in full regalia. Apparently, on Captial Hill, there is no honor– even among thieves. But there is revenge, and there is irony, and there is an example to be made when you stand up to the powerful Camarilla of our Mafia-style autocracy. The double-cross is clear. The irony is that the populace revolt has turned banks into a diversion, to take the blame off regulators and policy makers, and to focus all the angst on Scapegoats like Lewis.

Again, this is not to say “Poor, poor Lewis”. They are all unconscionable criminals, and if you sprayed lighter fluid on the lot of them, and lit the bunch, I wouldn’t piss on the blaze to put it out. But when the only CEO who may have (and again I say may have) shown a tiny shred of decency throughout this whole debacle, stood up against those traitors on the Hill to protect shareholders–such irreverance is dealt with harshly. And the very same media and prosecutors who seemed to side with Lewis then, now have his head on a platter, as if their frontal lobes were completely removed, and all memory of 10 months ago along with it.

Now there are those who would argue that, within the complex web of deceit, that there are counter motives and double agents and all other sorts of convoluted strategies to pull Lewis out of seclusion for the express purpose of raking up the truth about Bernanke, and dragging Paulson back into the fray, and ultimately placing the spotlight back on them, as Lewis attempts now to defend these charges.

If so, where are Lewis’ advocates in the media today? What is this Stepford-like reporting of Lewis as the poster child for the evil bankers? Is this to be the “reconfirm Bernanke AND get him off the hook two-fer”? FOR SHAME if it is.

 Time will tell. Time will “out” this damn’d spot indeed.

Charlie Crist, in an interview aired last night, admitted that he embraced Obama’s stimulus “fix” and in all good conscience could not face firing thousands of Florida teachers due to budget shortfalls.

It seems Charlie can’t break free from the economic paradigm that plagues this country, where money magically drops from the sky with no strings attached. Doesn’t Charlie understand that money coming from Washington increases our debt? Doesn’t he understand that at least one third of that money comes from China, and accepting it is tantamount to accepting foreign aid for the state? Does he realize that the teacher’s whose jobs he will “save”, as well as the children being taught, will live their entire lives under a tax structure and inflationary environment which serves merely to pay the interest on this unsustainable debt?

And finally, does Charlie realize that when he leaves Florida for Washington, there’s a Leader ready to take his place, who doesn’t want a dime of Washington’s “magic” money, and who still proposes to keep every Florida teacher employed, plus generate thousands of new jobs, revitalize the economy and create a budget surplus for Florida, just like North Dakota has today?

It appears that in Politics old habits die hard, even really bad ones. But more and more Americans, including Floridians, are beginning to understand that the old habit of depending on international banks and foreign investors to magically “monetize” our future and pile interest on our debt needs to be thrown out with the bent spoon and dirty needles.

With Charlie headed for that nefarious den of debt peddlers on Capital Hill, prudent taxpayers will TAKE ACTION to reduce and eliminate our foreign debt addiction.

As much as we’d like to rehabilitate Charlie, it looks as though he’s not quite ready to do it for himself, or for his country. He’s a good public servant, but with a habit like that, the prospects for his political future look dim.

The time spent on the discovery of criminal fraud, corruption and collusion is long past. It should be obvious to everyone in America by now who the criminals are, what they did, what they are continuing to do, and that there is no political will to prosecute them.

That said, heaping countless accusations and mounds of disgusting evidence to further prove what is already proven is a waste of time. The people will flay Bernanke and Geithner and Summers, et al,  in due time - but the statement made on CNN last night that CHINA DEMANDED that the AMERICAN TAXPAYER bail out FANNIE and FREDDIE because of their large investment in those institutions is pure HORSESHIT!

China simply demands the fraudulent return on it’s fraudulent investment that it was promised under a fraudulent system, and that fraudulent promise was intentionally broken by the current generation of Shylocks who historically run this scam every 50 years or so. Asian banks were in on it, just like SocGen UBS, RBS and the whole global financial CON industry. How many times do these criminals need to perpetrate these crimes over and over and over before we wise up and abandon their stupid ”asset bubble skimming” game?

And yet, the media cannot collectively get this simple notion together. If they could report the simple reality here, people could understand it. It’s simple. Goldman Sachs, JPMorgan and Morgan Stanley are high tech CRIMINAL THIEVES as are their counterparts all around the world, and taxpayers all over the world are their victims. Globalism, securitization and derivatives are merely the complex veneer behind which they hide what would otherwise be obvious.

NOT A SINGLE HOMEOWNER holding FANNIE or FREDDIE paper ever signed on to have their notes bundled up into securitized betting chips for Wall Street to sell to China or any other country. AND NOT A SINGLE TAXPAYER signed on to insure this fraudulently rated, fraudulently underwritten, purposely overvalued and secretly hedged paper. FANNIE, FREDDIE AND WALL STREET DID, with Uncle Sam’s blessing, in order to enrich the GLOBAL TOO BIG TO FAILS (including themselves on the front end) hedged against the predicted collapse–including Asian banks who were in on the scheme.

With policy makers progressing from scratching their heads to literally pulling their hair out over China’s fraudulent “ownership” of America, as well as Obama’s recent budgetary pole vault over his international credit card limit, there is no alternative other than to TAKE ACTION, and end the debate over America becoming a ward of Asia. Economies must end the current global system of monetarism, flush out the con game and go to a sovereign credit-based system, as soon as, and at whatever level, they can–from household, to city, to county, to state, to nation.

We had better decide to do this before we escalate into war with China–while we still have the might to avoid it.  For as history bears out, most all wars are fought over economic inequities of some form or another (despite any and all appearances of some other just cause). By the time it finally dawns on America that central banks, and their owners, in large part fraudulently indebted America to foreign speculators all the way to the brink of sovereign default, it will be the disagreement over the validity of that indebtedeness that will bring us to that standoff. You might as well question that validity now, because that is where this is headed.

And history also bears out that whenever the age old “bubble” scam (from tulips to default swaps) has been perpetrated in the past, sovereign issue (credit or currency) has been the only real solution–no less than a dozen times. The Trojan horse of Globalism is just the latest attempt to prevent this from working again. You cannot honor a globalist scam AND preserve the sovereign issue of a nation-state. You must abandon globalism to restore true sovereignty, as Washington did, as Jackson did, as Lincoln did, as Germany did, as Australia did, as Canada did, as North Dakota does, as Guernsey does, as Kennedy would have, as Greece should have, as Iceland would have and as WE MUST.