“I am old and now seriously ill. I cannot die without making clear to you, that you have broken your oath to us your people.” – from Elisabeth Beckett’s last letter to the Queen, 21st January, 2009
- Elisabeth Beckett demands Constitutional protection from the police.
It is with great sadness that we share the news of the passing of Mrs Elisabeth Beckett after her fight against leukemia. Elisabeth was the daughter of a High Court judge. The fact she managed one last shot across the bows of the nation’s ever-dwindling sovereignty, says so much about her steadfastness.
She went on the offensive when she discovered that her Council Tax bill was being used as a vehicle to extract money from her (and every other resident of this nation) for the European Union inspired Regional Assemblies. She took a one woman’s legal stance, using her profound knowledge of the British Constitution against her local Eden District Council, and refused to pay her Council Tax whilst under the threat of bankruptcy. Elizabeth launched four legal cases against the government citing Erosion of the Constitution, Breach of Contract, Breach of Trust and for Treason and Legal Fraud. She also took out an injunction against Prime Minister Gordon Brown for Treason against the British People.
In 2007, Namaste Magazine launched an appeal for funds to avert her bankruptcy, which was successful. The funds enabled her to start the process to appeal to the High Court. Whilst working with her she became our latter day Boudica. The depth of Elisabeth’s Constitutional knowledge coupled with her courage and her unfailing determination to protect our country and its people from the loss of British Sovereignty against the relentless ever invading totalitarian powers of the EU, is testament to her uniqueness.
It has been an honour and privilege to have known and worked with her. Thank you, dear Elisabeth, for your sterling efforts. You will be very sadly missed.
All who read this obituary can only have the utmost respect and admiration for such a great lady and the passionate, abiding love which she had for this country and its people.
This post is tagged Elisabeth Beckett
What a wonderful lady, what a strong, brave, intelligent fighter she has been.
Did she ever receive adequate replies/answers to her letters from the Queen?
We must educate and empower each other and our young people so her efforts have not been in vain.
Rest in Peace, Elisabeth Beckett.
Sadly I didn’t have the pleasure of meeting you Elisabeth but through your hard work against a corrupt, tyrannical ’system’, it was clear you remained an honest, truthseeking, sovereign, responsible and authentic human being.
This is more than can be said for those who would ‘rule the world’ and their lackies masquerading as: “world leaders”; “politicians”; “journalists”; “scientists/doctors”; “educators”; “captains of industry”; “bankers” etc etc.
May you rest in peace and may you also know that your quest for truth, justice and an honest system for all lives on in the hearts of those of us who also care desperately about the plight of this country and the wider world.
I am very saddened to read about the death of Elizabeth Beckett. Please express my heartfelt sympathy to her family.
I was in contact by mail and telephone on many occasions with Elizabeth and greatly admired her knowledge of the British Constitution and her determination to see its acceptance by the country. I hope that her supporters will continue her work.
Christine Melsom
How would I be able to reach her supporters, for I too want to figh for this country. I feel I am on a one woman crusade. I write to my MP and PM constantly but feel I have no voice.
Mrs Elisabeth Beckett was THE AUTHENTIC SPIRIT of what makes Great Britain the power that it is – Elisabeth was/is a genuine human being with the verve of a god/goddess in clean, whole, firm order, with the gene of altruism that could never be genetically modified.
She lives in us all, now, her tireless knowledge of the truth: we are each and every one divine and therefore FREE.
AND, no queen, king, nor any predatory criminally insane human with a faux god complex can destroy what nature has unconditionally given.
Thank you Elisabeth for being one of our greatest earth teachers!
Howdie. Seems like a stalwart lady with more testicular fortitude than most of the whining, whinging “men” out there.
In spite of the banalities & platitudes expressed in the previous comments above, lets talk turkey: Here we have – by her own admission – an “old and seriously ill” woman who stood up the JBT (jack-booted thugs)and who has now croaked of leukemia.
Well folks, here’s my question: Where the hell were all the supposed “men” in your supposedly “Great” Britain ? You, my friends should hang your heads in shame – its my conjecture they dont exist.
Now lets go to a few of the comments – hilarious in their own right, but none the less
indicactive of the sheer banality, stupidity and ggilelessness, and gutlessness of the “Great” British public.
Item: “Did she ever receive adequate replies/answers to her letters from the Queen?”
Yeah, she got invited over to Buck Pal for beans on toast and they went over the constitution with a fine tooth comb – didnt you hear ?
Item: “… THE AUTHENTIC SPIRIT of what makes Great Britain the power that it is”
Ahemmm – Ive got news for you honey. if you havent checked recently, Briatin aint no freekin power – great or otherwise. In fact you’re rapidly headed to 3rd world status and in chains! The AUTHENTIC SPIRIT of Britain is denial, self-delusion, cringing and bullsh!t.
Dont weep for this old broad – weep for yourselves.
And if you dont like that – screw you!
I did not know this lady, I wish I had.
I write,march and complain to my MP and the PM constantly, nothing gets changed and letters returned are not worth the paper they are written on.
I am glad you feel we will be a 3rd World Country but in my opinion you are too late I have felt that for some few years.
How do we find someone to look up to that can reach the nation and stir us into action?
We need a leader, talk is not enough.
I’d take you up on the screw you campaign, but you only have these words to appear intellectual and quite clearly this screw you slogan/brand is boring.
In other words, your rhetoric is so predictable that it proves why the global problem is what it is – those who think somehow they’re separate from the whole (you one of the cultists who gets paid to do this jibe of the 60s, 70s, and even the 80s, but it was gone by the 90s “screw you?”)!
The Preacher obviously wants the cleanse the planet — ah come on men, brew up the BIG T for war and get out there to prove that we can all still fight.
Hmmmm, Preacher “MAN?” why don’t you get your own skin in the game and just kill, kill, kill …. please be certain to give to yourself, first, all this love fest with the BIG T, proving the beast is still in control rather than the sane human.
Good work “Preacher” now just hustle your BIG WORDS right into Gaza and prove you are as tough as you sound. No? Well then, take your own good advice and get screwed then.
Well it is easy for those overseas to criticise, as they dont have to live with the regime that we do. I am glad Elizabeth stood and was counted, just like many more of us have done. It is almost always the women who fight for justice, I beleieve the reason for this is that we and our children are the ones who suffer the most living with Patriarchal values and the sad society that this creates. Most men are unable to even comprehend the pain levels that many suffer day in day out. Most men do what they know best, they try to fulfill their roll as providers, trouble is they cant evendo that any more, so women are forced to play multi rolls to raise their children, including bread winning.
It is impossible to preach about reality until you establish and comprehend what it is.
Life in the US is decadent in comparison to the rest of the world. Not many Americans even have a passport, so all they know iswhat the media tells them, brain washing. This is why, I believe, U.S opinion is limited. Until you travel you really have no idea of other cultures and lifestyles. Even package travel is a waste of time, in terms of cultural experience, which most Americans feel comfortable with, as they are out of their depth with anything outside their own comfort zone.
The men in the U.K are wiser than you make out and will fight to defend. I think this was proven in the last World War. America arrived late, as I remember.
Lets not slate our men please, until you are fit to lick their boots.
Us women could not do half we do, without good men behind us, and visa versa.
What is wrong with todays society is the devisive nature of our so called leaders, all with their own agendas, usually corrupt ones, predominantly men, Im affraid to say.
Lets just celebrate the fact that this couragious woman has stood up and said it as it is. We dont need to slate our men, this is quite offensive, infact.
Elisabeth Beckett’s life is a beacon of light in these dark days of denial, self-delusion, cringing and bullshit.
She was a British Bulldog through and through – she had the guts to stick up two fingers to the European Union Common Purpose parasites. She had the guts to shout, very loudly, that this country is being sold out, and that there are traitors in Parliament.
Britain shouldn’t weep for this grand old lady – if we are to honour her we must all follow her example, and stand up and claim back our country, before it is too late.
Help me to do just that and I will.
For I stand for all this Lady thought and fought for. I do not know who it is,or who they are that I should contact so that I may join them in the fight.
Go to http://www.tpuc.org
You will find lots of like minded people – follow the contacts.
Sincerely, John.
RIP Elizabeth. Through the ages, people like you have advanced mankind’s freedom.
We will follow in your footsteps.
For anyone wishing to get organised and join us in the fight, please email me, and you will be added to a new mailing list. We can then keep you informed of campaigns we are running, research we need done, and so on.
We need your help! None of us is able to do this full time. We have this website to run, the new edition of the paper is due out in a week or two, the next conference isn’t going to arrange itself. Come on, get involved!
If you are involved with other groups, then work with us. We aren’t interested in taking over, or creating a huge organisation here. Quite the opposite. We want the chaos that hundreds, if not thousands, of small groups brings. Its very hard to attack that kind of structure. But we should, where possible, be working in an organised way. So get in touch.
I am deeply moved by the actions of this lady. We must not let her fight be in vain. It has taken time for the pople to realise the conspiracy against us. We must put aside or racial or national divides in order to fight this grave danger.
United we stand, divided we fall. Let this lady be an example to all in the fight for freedom and decency.
What kind of “preacher” is confrontational, aggressive and uses vulgar expressions like
“And if you dont like that – screw you!” and
describes the deceased as an “old broad,” in her obituary column?
Has it occurred to you that it is possible that this will be read by her unhappy family members?
Stop being so rude and disgusting. You should weep with shame yourself.
We appreciate constructive comment and there are many places to vent on this site – that is what it is for, but please do not do it here.
I can assure you that I am not stupid or gutless, I do not know what ggilelessness is! Please enlighten me!
The banality of my comment here was due to it being customary to exercise a little decorum when someone has recently passed away, didn’t your mother teach you any manners?
Oh silly me, you are pretending to be an american cowboy aren’t you? And we all know they have no manners at all ‘cos we seen it on TV.
Nicely put cheesy – I was cross at ‘The Preacher’s’ comments and after attempting a response, I decided that it wasn’t “werf it” as in: “leave ‘im, e’s not werf it” lol!!
‘Preacher’ has made some very valid points but he does tend to go a little overboard.
It’s always sad to see people banned from forums because everyone’s comments are valid on this journey to Truth – even the writings of what can be described as our ‘enemy’, ie those who would ‘rule the world’ need to be investigated as only when the True Light is shone on dirt will the Truth be clearly seen.
God bless Elisabeth who was shining the light of Truth for us all and I too hope her family were not offended.
I’m sure ‘Preacher’ meant well. . .but Ed – I trust your judgement and appreciate all that you do and I’m sure I speak for everyone else here.
Thank you for the opportunity to share and express ideas and information with like-minded ‘folk’.
Just so everyone is aware, I have banned “the Preacher.” This is not something I would normally do, but I thought after this post, that it was justified. If anyone disagrees, and thinks I should allow him to post again, feel free to say so.
Banning the “Preacher” is not an act of discrimination to the art of free speech!
No, the “Preacher” is obviously one of the many — those who are paid to write such dribble and incite the wound of the soul (“I’m not worthy”).
We are all in this good fight and we can all talk about it out loud — HOWEVER, those like the PREACHER need to be facing the consequence/s of their action/s:
SEPARATION from the whole. They have already embarked upon this in creating the words that do not heal and furthermore there is no information to provide the knowledge we must have in order to create sane choices — innocence coupled with knowledge can indeed birth wisdom.
Where is the wisdom in “Preacher’s” words with respect to respecting a GREAT HUMAN BEING WHO GAVE US HER WHOLE!
Preacher can come back and behave as though civilized — gosh darn how smart can Preacher be, in actuality? Can we know this truth and be set free – or is Preacher the same tired brand of critical mass deceit …..
Words are a Sword, too and therefore Sword style Tai Chi may be the remedy for Mr. Preacher – until he finds his pen that has no poison to be administered as a dish cold.
I know you get frustrated with always getting stuck in the queue – I don’t know why it seems to single you out, and I don’t dare switch it off because of the amount of spam we do get hit with.
So sorry it took so long to get this one out, but I have been unwell and haven’t had the PC switched on for several days.
Back now, though,
How is the preacher going to get an education if you have banned him, he will remain ignorant wont he.
LEAVE HIM BE – We all need a good laugh in these times of traitors ! Its really great to see people of the dark side, waffling on about things they know nothing about.
Whilst I defend to the end, the right of free and uncensored speech, I do believe that “The Preacher” went a little too far in a publication which seeks pure freedom of thought, word and deed.
He sounded like a New York Bronx warhorse , calling me a punk and other people various derogatory names. Not really what we want to read. Yes, argue, debate, disagree and suggest, but in the Queen’s English!
I believe in positive suggestions, not abuse and rhetoric.
Can we continue now ?
Yes, let him go to prisonplanet.com.
They like that kind of talk on there.
Haven’t seen any of his posts on there though.
Well, to me it’s very sad that anyone dies. I don’t really know much about this lady, but I have a bit of an impression she was somewhat a martyr.
In my experience these people who run the government/legal system are merciless in their power. Often they win because they have infinite financial resources (your taxes), and can bleed you dry/bankrupt you and pocket your money again. In the unlikely event that you have a better understanding of their maze of laws and archaic ways, they will, at last resort, simply cheat you. The result is nearly always the same. You loose and you function as an example to those other people who like to see someone do it first.
So, she tried, she fought and she lost, and it seems to me the stress of it all might also have impacted on her health as well. I have no doubt that she was entirely sincere, but Iβm not certain she made the right approach. I tried searching Google with her name, and I canβt see any mainstream references to her, not even a local rag article. This is all the sadder; that she fought so hard but nothing seems to have become of it.
The fight, Iβm 100% behind, but there are other ways to win. Instead of spending money on a hopeless case she could have started a newspaper like the UK Column! You see, the problem is this. We want a democracy and so we have to get the truth out to millions, or else our so-called democracy will be deciding things based on false information and incomplete information.
I have been working to help out NO2ID for a few years now, and I have gained a bit of experience in mounting a popular campaign. It has been said to be the most successful of modern day political campaigns, in its phenomenal rise in getting the message out to the country. One thing that has not happened so far though is any legal action against the enemyβs system. Iβd put it down to working the press and people in positions of influence.
Iβd hate to see the fight to get out of the EU narrowed down to a single approach that I think is intractable, although I take the inspiration from people like her, just in the sheer determination they have. I guess thatβs what it means to be British. Defeat is not an option.
What a beautifully written letter, so commanding, so clear, and well presented. It is polite yet assertive, and makes me feel proud to be British – because this lady was the kind of person who put the “great” in Britain, which we need to urgently re-kindle in the hearts of our sovereign Nation.
It is also perfect that she wrote this powerful letter before her demise, to sow seeds of constructive change in the hearts of many….
I would like to take this opportunity to apologise for my previous intemperate remarks.
I take all criticisms and chastisements as being valid. My only defence is that I got carried away and “lost it” at the plight of what appeared to be one courageous, gravely ill woman going up alone against the powers-that-be.
I egregiously overstepped in the mark in my language & accusations, but rest assured – and as strange as this may sound – if I didnt hold your country in such high regard, I wouldnt have gotten so riled up.
Apologies to all and the Editor of this fine web-site for the the distress I’ve caused.
Typo : The Ex-Preacxher = The Ex-Preacher (formerly The Preacher)
Dear Ex-Preacher,
Good choice on a brand/label – no one wants to be preached to in this time, other than those who do not understand what it means to do it (like the good citizen Mrs Elisabeth Beckett) oneself and take the burden off God.
Note the new post, Ex-Preacher … GARY NORTH is a reputable “trader” (not traitor) of world class renown. This is what we all face together as humans, GLOBALLY.
Tragic is not a powerful enough word to define what has been done in the name of insatiable greed and truly cannibalistic insanity by, of and for the most criminal miscreants that ruin not rule, our planetary “society” of human beings.
Thank you Ex-Preacher for your humility: it is the meek who shall inherit the earth, and we can trust this to be more than likely true since it turns out in cyclical historical factions whether the books print the truth or not.
I reread this and want to state that Mrs Elisabeth Beckett had the courage to stand in the face of her death and do the right thing, by herself. We all do it, in reality, alone. This is the saddest part of our human experience — death.
When one dies (I lost my best friend in the world during this time, my sons’ father, as well as both parents) and the cause is immature due to an unnatural DIS-EASE, it is an abomination of God.
Losing everyone older than me, who I love/loved more than my own self, is the most empty feeling — continuing on here, alone (it feels like a vacuum that has no finite).
My sons’ father was the greatest living artist in America and yet the US does not honor art because this would set far too many minds free.
CHEMTRAILS are the poison that took the last hit on my father, mother and sons’ father.
God did not intend for unnatural to rule this planet and this cabal of evil is indeed the anti-Christ, or worse, as it has been written:
by Henry Makow Ph.D.: http://www.henrymakow.com
“… Recently an expanded and updated English translation of his classic “Worldwide Evil and Misery: The Legacy of the 13 Satanic Bloodlines” has appeared. If anyone still doubts that a satanic cabal, the Illuminati, is responsible for all wars and depressions and is intent on enslaving mankind, I heartily recommend this book.
Robin de Ruiter, 58, is perhaps the most prominent European conspiracy writer after David Icke but his ten books have been available only in Spanish, Italian, French, Czech, Serb, German and Dutch.
A Dutchman raised in Spain, and now living in Equador, de Ruiter has been studying the Illuminati since the 1980’s. He writes with the assurance of a man who has deciphered the plan. For example, he doesn’t hesitate to place the Rothschilds and “their bank,” the Bank of International Settlement in Basle, at the top of the pyramid. (Puppet Obama will put another trillion in their pocket before the month is out.)
De Ruiter uses familiar sources but because he is a polyglot, he has access to some important new ones. For eg. De Ruiter recounts the story of a Spanish geneticist who showed that there was no difference in the genetic origin of Jews and Palestinians. He was met with a storm of opposition from Zionists and quickly dropped this field of study. The anecdote shows that, even if the Jews weren’t a race, the important thing is that they think they are. (p.155) ….. continue at Henry Makow’s site http://www.henrymakow.com
February 19, 2009: Global Research Video on the Global Financial Crisis, The Looming Collapse of European Banking, by Gary North | Global Research
LewRockwell.com
The banking system of Europe is at the edge of the abyss. A brief story by The Telegraph revealed this last week. The original was almost immediately deleted. A new version was substituted.
You can see the original headline on Google:
European banks may need Β£16.3 trillion bail-out, EC document warns …
There are dozens of these links. I read the story last week. I saved the link. But, lo and behold, when I clicked my saved link on Monday morning, the story did not mention a specific figure.
There was a reason for this. The editors at The Telegraph had taken out the following paragraphs:
European Commission officials have estimated that impaired assets may amount to 44pc of EU bank balance sheets. The Commission estimates that so-called financial instruments in the trading book total Β£12.3 trillion (13.7 trillion euros), equivalent to about 33pc of EU bank balance sheets.
In addition, so-called ‘available for sale instruments’ worth Β£4trillion (4.5 trillion euros), or 11pc of balance sheets, are also added by the Commission to arrive at the headline figure of Β£16.3 trillion.
Fortunately, web sites around the globe have posted the deleted paragraphs.
Converted into dollars, Β£16.3 trillion euros are the equivalent of $25 trillion.
The original paragraphs can be found in several links in the Google list of headlines.
Why did the editors do this? A call from some government bureaucrat? Or the realization that the article might start a bank run? I think the latter. In either case, it’s scary.
The current article begins with a lie: “Last updated: 6:34 GMT, 11 Feb 2009.”
WHAT THE EUROPEAN ESTABLISHMENT IS FACING NOW
The original February 11 story was a shocker. The author claims to have seen a secret European Commission report. The report estimates that losses (write-downs) by European banks will be in the range of $25 trillion.
If true, then to save the banking system, European governments will have to find an extra $25 trillion, fast. There is only one source of such funding: the central banks, mainly the European Central Bank (ECB).
For comparison’s sake, consider the $700 billion banking bailout in the United States last fall. Of this, only about half has been spent. That was sufficient bailing wire and chewing gum to keep the American banking system going. More will be needed, but so far, this has sufficed. The Federal Reserve did a lot of asset swaps in 2008 β Treasury debt for toxic assets β and pumped in an extra trillion dollars or so. But the system has held.
Adding these together β the increase in the monetary base and $350 billion in bailout money β the total is around $1.5 trillion. Then think “$25 trillion.” This is a sobering thought for some, and a reason to get unsober, fast, for others.
The European Central Bank will have to serve as the lender of last resort. There are over a dozen national EC governments. How will they coordinate their respective bailouts? Think of a dozen Barney Franks and a dozen Nancy Pelosis. Think of a dozen Henry Paulsons. Think of a dozen Gordon Browns. Terrifying, isn’t it?
Here is the story, as airbrushed by the editors.
“Estimates of total expected asset write-downs suggest that the budgetary costs β actual and contingent β of asset relief could be very large both in absolute terms and relative to GDP in member states,” the EC document, seen by The Daily Telegraph, cautioned.
Very large? That’s it? Just very large? Twenty-five trillion dollars in losses are merely very large? That is twice the size of the gross domestic product of European Union.
It is not as though there is a lot of time to deal with this. Bank runs can take place very fast. What if Europeans try to pull out currency? There will not be enough currency. So, they will move their assets to American or Japanese banks. They will have to sell their domestic currencies to buy dollars and yen. The euro will crater.
“It is essential that government support through asset relief should not be on a scale that raises concern about over-indebtedness or financing problems.”
Wait a minute. If asset relief is not on this scale, then what will sustain a bankrupt European banking system? You are telling me that these banks are sitting on top of $25 trillion in losses, and this can be concealed? Does no one audit these banks?
The secret 17-page paper was discussed by finance ministers, including the Chancellor Alistair Darling on Tuesday.
National leaders and EU officials share fears that a second bank bail-out in Europe will raise government borrowing at a time when investors β particularly those who lend money to European governments β have growing doubts over the ability of countries such as Spain, Greece, Portugal, Ireland, Italy and Britain to pay it back.
National leaders apparently have a clear perception of the public’s lack of faith in the in specific governments’ ability to repay. But that does not answer the crucial question: “What are the depositors’ fears regarding their individual banks?” It’s one thing for a government to be unable to pay back loans over the next two decades. Of course they will not pay it back. No national debt is ever paid back. It is rolled over. It’s another thing to deal with bank runs.
The Commission figure is significant because of the role EU officials will play in devising rules to evaluate “toxic” bank assets later this month. New moves to bail out banks will be discussed at an emergency EU summit at the end of February. The EU is deeply worried at widening spreads on bonds sold by different European countries.
In line with the risk, and the weak performance of some EU economies compared to others, investors are demanding increasingly higher interest to lend to countries such as Italy instead of Germany. Ministers and officials fear that the process could lead to vicious spiral that threatens to tear both the euro and the EU apart.
Ministers and officials have got the picture. They are facing a breakdown of Europe’s economy. If the bailouts are insufficiently large in every nation to reduce depositors’ fears regarding their banks, there will be a rush out of the euro and into dollars and yen. If the bailouts are sufficiently large to stem the tide on bank fears, then there will be a rush by bond investors out of government bonds. This will make the existing recession much worse.
If each country has widely different rates, the euro will break down. The poorer countries will borrow at low rates from the European Central Bank. The Germans will revolt. They could demand an end to the ECB, which will have become a welfare agency for the Mediterranean governments. That would end the euro. That would end the attempt to create a new European order. This thought brings to mind one of Johnny Mercer’s masterpieces.
So you met someone who set you back on your heels β goody, goody
You met someone and now you know how it feels β goody, goody
You gave him your heart too, just as I gave mine to you
And he broke it in little pieces, now how do you do?
You lie awake just singing the blues all night β goody, goody
And you think that love’s a barrel of dynamite
Hooray and hallelujah, you had it coming to y’a
Goody goody for him, goody goody for me
I hope you’re satisfied, you rascal you,
I hope you’re satisfied ’cause you got yours
But I digress.
“Such considerations are particularly important in the current context of widening budget deficits, rising public debt levels and challenges in sovereign bond issuance,” the EC paper warned.
These considerations are indeed important. But solutions are a lot more important. The report is 17 pages long. The solutions β if any β will be a lot longer.
SO FAR, SO GOOD
So far, the euro has not collapsed. It has fallen, but there is no rush for the exits. Why not? These answers come to mind.
1.
The story is not true: no such document.
2.
The document is wrong: banks are not really that much in the hole.
3.
The banks are in the hole, but public faith in their governments remains high.
4.
The report is true, but it is not believed by currency speculators.
5.
The report is true, but currency speculators believe that the governments and central banks can handle it without major shifts in currency values.
European bank stocks have fallen since the article was published, but they are not in free-fall.
In my view, the European public still has faith that the governments and the central banks will successfully intervene to restore commercial banks. But if the original article was correct, that 44% of bank balance sheets have disappeared, then the public is living in la-la land. The entire structure of Europe’s capital markets is at risk. Or, I should say, what remains of the capital markets is at risk.
How are governments going to replenish lost capital? It’s gone. It’s missing in action.
EASTERN EUROPE
Ambrose Evans-Pritchard has explained this is a Telegraph article published on February 15.
If mishandled by the world policy establishment, this debacle is big enough to shatter the fragile banking systems of Western Europe and set off round two of our financial Gotterdammerung.
He was referring to loans to Eastern Europe. He used Austrian banking as the example.
The European Bank for Reconstruction and Development (EBRD) says bad debts will top 10pc and may reach 20pc. The Vienna press said Bank Austria and its Italian owner Unicredit face a “monetary Stalingrad” in the East. . . .
Stephen Jen, currency chief at Morgan Stanley, said Eastern Europe has borrowed $1.7 trillion abroad, much on short-term maturities. It must repay β or roll over β $400bn this year, equal to a third of the region’s GDP. Good luck. The credit window has slammed shut.
Not even Russia can easily cover the $500bn dollar debts of its oligarchs while oil remains near $33 a barrel. The budget is based on Urals crude at $95. Russia has bled 36pc of its foreign reserves since August defending the rouble.
“This is the largest run on a currency in history,” said Mr Jen.
This reminds me of the bankruptcy of Long-Term Capital Management in 1998. That hedge fund had bought ruble-denominated assets on a leveraged basis: 30 to one. When the Russian central bank failed to defend the ruble, LTCM went bust in a few days. It had to be bailed out by $3.6 billion in loans from New York banks. Today, the European banks are gutted, not a lone hedge fund.
Russia is going belly-up. It will have to liquidate most or all of its reserves of Western currencies. It has stopped buying U.S. Treasury debt. It is selling.
In Poland, 60pc of mortgages are in Swiss francs. The zloty has just halved against the franc. Hungary, the Balkans, the Baltics, and Ukraine are all suffering variants of this story. As an act of collective folly β by lenders and borrowers β it matches America’s sub-prime debacle. There is a crucial difference, however. European banks are on the hook for both. US banks are not.
Almost all East bloc debts are owed to West Europe, especially Austrian, Swedish, Greek, Italian, and Belgian banks. En plus, Europeans account for an astonishing 74pc of the entire $4.9 trillion portfolio of loans to emerging markets.
They are five times more exposed to this latest bust than American or Japanese banks, and they are 50pc more leveraged (IMF data).
This is the ringing of the bell. The bell of the Great Depression of the 1930’s rang on Wall Street in October 1929. But that was not the cause of the Great Depression. The causes were these: (1) monetary base expansion in the 1920s, (2) the cessation of this expansion in 1929; (3) the governments’ raising of tariff and trade barriers in 1930 all over the West, and (4) the collapse of the Austria’s Credit Anstalt Bank in 1931. In the USA, we saw the first two, 2000β2007.
Central banks will inflate to keep any major bank from collapsing. But the trend is ominous. Russia and Eastern Europe are gonners. European banks that lent to them are, too. So is the purchasing power of the euro β and maybe even the actual euro. I can see Germany cutting and running sometime before 2011. Evans-Pritchard pulls no punches. This is a gutsy forecast.
Whether it takes months, or just weeks, the world is going to discover that Europe’s financial system is sunk, and that there is no EU Federal Reserve yet ready to act as a lender of last resort or to flood the markets with emergency stimulus.
If he is correct about the inability of the ECB to imitate the Federal Reserve System, this means a collapse of the banks. That means the collapse of Europe’s economy.
“This is much worse than the East Asia crisis in the 1990s,” said Lars Christensen, at Danske Bank.
“There are accidents waiting to happen across the region, but the EU institutions don’t have any framework for dealing with this. The day they decide not to save one of these one countries will be the trigger for a massive crisis with contagion spreading into the EU.”
He ends with this: “If one spark jumps across the eurozone line, we will have global systemic crisis within days. Are the firemen ready?”
The capital markets do not indicate agreement with his assessment. People still trust the banking system. Generally, I trust capital markets rather than journalists. But I think the report is too explosive to ignore. I think the optimism of investors is greater than the optimism of European bankers, bureaucrats, and newspaper editors.
CONCLUSION
The West’s economy really is at the edge of a leveraged disaster. The politicians know only one answer: deficit spending. The central bankers have only on significant tool: monetary inflation. The speed of events is increasing.
The markets don’t reflect this yet. This gives time to a few people to get out. But the vast majority cannot get out. There are too few escape hatches open.
Gary North [send him mail] is the author of Mises on Money. Visit http://www.garynorth.com.He is also the author of a free 20-volume series, An Economic Commentary on the Bible.
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Unfortunately I too never had the priviledge of meeting such a woman steadfast beliefs and true morals.
In my opinion,I believe that she was one of lifes’ true soldiers,not the war-mongering type of soldier,who can and should only be commended for the relenless pursuit of her rightful beliefs.
We need more people with the same kind of gusto Elisabeth Beckett possessed,you will be missed!
I can’t help but wonder why she never just bought some biscuits and sat in front of the TV chilling out.
I can’t help but wonder why you bothered to write that, wouldn’t you rather play football of watch telly?
Read this Must-Have book
WORLDWIDE EVIL AND MISERY by Robin de Ruiter
http://www.marketingnewauthors.com/wwem.html