A high ranked management member of one of the biggest Dutch banks claims The Netherlands is on the brink of financial collapse, and he is not alone. The individuals wish to remain anonymous, and further say the country is practically already bankrupt and has been for quite some time now, but that government officials are deceiving the public. The European Union is also heading towards bankruptcy, which by now is practically inevitable. Many banks have developed symptoms that require filing bankruptcy, but they aren’t allowed to do so because it would cause more panic and instability – ultimately releasing a chain reaction in which other banks would fail and even countries would default.
The management members explain to The Andy Standard their insight in government finances which are hidden from the public “much like a former Greek government used to do”. One starts by stating how the country already has broken the 60% Maastricht rule that states the government debt should not exceed 60% of the GDP. Most EU-countries have violated the norm and it’s even more worrying that percentagewise that ratio is even larger for the Euro zone as a whole.
As far as this goes this is fairly easy to understand to the general public. But these are just some digits, and the issue here is that the digits are not transparent. Just recently politicians decided to cut billions in spending, but for a significant amount of those cuts there are no concrete plans yet. It is just a sum of digits they quickly decided on, without even knowing what they are doing and no knowledge about the impact on the economy. They did that only to have something to send to Brussels and to satisfy the 3% rule.
They continue by explaining that a select group of Dutch politicians and high ranked banking officials are aware of the real problems this country and the European Union is facing. No one is willing to speak up though, afraid they will trigger a financial collapse. The ugly truth is that the longer you try cover up the mess, the mess will only become messier. And ultimately it will blow up, like it always does, and the impact will be far greater than if they had confessed to this mess a year ago.
Meanwhile they are only delaying the moment for the news to come out, and it will come out. Financial markets are driven by trust, and they will also believe a lie, but certainly not forever. The major Dutch banks are supporting the deceit of the public, but they are not the only ones. Other Euro countries like Belgium and France are also done. Even Germany, the big power everyone’s now looking up to, is toast. Merkel is only using Germany’s status as leverage for political benefit in negotiations, to get her way.
Financially the EU is bound to default, and quite frankly it would have been better had it happened a year ago or in 2009. So yes, we would be deeply ashamed because of our failure, but at least our debt would’ve been smaller by the billions and so would the damage. Now we are only creating new debt to cover old debt, and even future debt. It is like taking out a new credit card to cover the debt on an old credit card. The emergency fund is nothing different.
In case a country reaches the brink of collapse, it will receive EU-funds that actually consists out of debt from another country. No country that is now putting money into the emergency fund actually has that money, hence it has to borrow it. In fact we will be re-distributing debt from a defaulting economy to a ‘more wealthy’ country or group of countries, by creating even more debt – instead of lowering debt. It’s practically socializing public debt. That’s why Finland’s reasoning is justified when they say they don’t wish to ‘buy’ debt from other countries.
Evidence for this reasoning is scarce, because the real circumstances of the Union are being concealed and hidden from the public. But we do have the numbers on government debt from the whole zone, and we do know how the debt has developed. We also know a former Greek government was able to lie about their government finances for years, so who’s to say other countries are not doing the same? And who’s to say that the more developed and richer countries in western Europe aren’t doing the same? After all, they’ve got more to lose and will use all means necessary to avoid that from happening.
(Concluding, this select company of high-ranked management members say it’s just a matter of time and that it will happen soon. Keep an eye on the latest developments and the pattern for the predicted economic meltdown may very well begin to form.