Minus is Greater than Plus

France sells bonds at negative interest rate

http://hosted.ap.org/dynamic/stories/E/EU_FRANCE_FINANCIAL_CRISIS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-07-09-10-45-53

PARIS (AP) -- France's government has sold short-term bonds at negative interest rates for the first time, a sign of investor confidence despite concerns about French debts and the wider eurozone.

Really? Imagine that. Negative yield bonds have become a sign of investor confidence?

Is anyone asking who the investors may be? Chances are the investors are the central banks, and they are very confident that they may keep the European economy afloat for another month or so.

This is how a banker bailout of a nation works: the nation in financial distress borrows digital money created out of nothing from the banks. The nation takes this borrowed money and turns them into national bonds, and auctions them off to the highest bidder.

If the nation is in deep financial distress, there are few bidders, no matter how high the yield being offered may be. That being the case, and it most recently has been, the banks that loaned the money to the nation for the creation of the bonds become the buyers of the bonds.

Think about it.

The nation is kept from defaulting on loans to the banks by borrowing more money from the banks in order to become further indebted to the banks.

In the meantime, in order to collect on their loans, the taxes the people pay to their national treasury go to the banks that funded the nation’s operational expenses. It was not always like that. There was a time not too long ago when the banks did not have to expose the fact that they were the ones pumping air into the floatation device upon which their fiat system rests.

When the economy contracts, as have the economies of Europe and the US, the taxes collected decrease, and national default becomes a possibility. National default to the bankers results in austerity: the nation rifling the retirement accounts of its workers as well as cutting back on, if not eliminating, social programs. If that is not enough to pay back the interest to the bankers, then the fire sale of national assets begins, as has occurred in Greece. (The International Monetary Fund has honed its operational model on third world countries for many decades.)

All of the financial woes occurring in Europe have already begun in the USA. The train cannot be stopped, but you can, for a short time, jump off and do as much as you are able to do for you and yours. Live each day as if it is the last day in the world as you know it.