July 2016 – BELIZE – Last weekend, Prime Minister Renzi said that while Italy has a banking crisis that could end in collapse at any time because of the more than 360 million euros in non-performing debt; he should warn that the crisis surrounding Deutsche Bank is “a hundred times worse.” Deutsche Bank is sitting on a pile of non-performing loans and some US $ 72.8 trillion in current derivatives contracts. Germany’s entire GDP is US $ 4 trillion, and the entire European countries produce some US $ 18 trillion dollars per year. Deutsche has a leverage ratio of 40:1. Remember Lehman at the time of its collapse had a leverage ratio of 31:1. In the last 12 months, Deutsche Bank’s balance sheet fell some 48%. Now it’s at 8% of its value in the year 2007.
But another bubble is about to burst in Europe. According to Bloomberg, as of July 17th major real estate funds in London were facing major investors’ run; and the prospect of an imminent blowout of the entire British real estate bubble is very real. Standard Life Investments has suspended its UK Real Estate fund so as to stop investors’ pulling out money. The panic was clearly shown Monday when it was announced that Andrea Leadsom was strong-armed to withdraw from the race for leader of the British Conservative party so that Theresa May can be installed today (Wednesday) as Prime Minister. Why? The Brits needs a government in place to deal with the onrushing crisis.
On Sunday, David Folkerts-Landau, chief economist of Deutsche Bank, gave an interview in which he called on Europe to immediately emit an emergency 150 billion euros bailout. At the same time RT reported that George Soros had written an op-ed in which he said that the collapse of the EU was “almost inevitable” since the Brexit vote. Taken together, the current conditions in Italy, Deutsche Bank and the London real estate market are certainly more than enough to blow up the entire trans-Atlantic financial sector. Leading political figures in Germany are now calling for a one-time capital injection to save Deutsche Bank and thus save Germany, Europe and the United States.
Now this imminent systemic crash cannot be separated from the growing danger of nuclear war — one involving the Warsaw NATO heads-of-state summit last week — and yesterday’s unanimous, provocative, and over-reaching decision by the Permanent Court of Arbitration at the Hague in the South China Sea case filed by the Philippines against China (and Taiwan). The gist of the court’s ruling is the incredible finding that the 110 acre Taiping Island , occupied by Taiwan, which houses a military garrison, a hospital, and a farm, is not an island, but rather just a piece of rock; and therefore is not granted the 200-mile Exclusive Economic Zone due to any island. That 200-mile zone overlaps the other Spratly islands and reefs. Thus, the magic of the “impartial Court.”
As Taipei’s Ministry of Foreign Affairs stated today, the Philippines had not requested a ruling on the Taiping Island, but the Court took it upon itself to over-step its jurisdiction – such is how imperialism works. On July19, Taiwan’s President, Tsai ling-wen, addressed the crew of a frigate that was dispatched to the South China Sea and the Taiping Island. Both China and (ROC) Taiwan will defend the sovereign rights of China to the South China Sea. Meanwhile, China has publicly warned the United States that the South China Sea is not the Caribbean, and China will not tolerate the United States’ attempt to interfere with its sovereignty. China has meanwhile published a chronicle of the United States’ interference in the Caribbean since the year 1901 to current in Venezuela, Argentina, Bolivia, and Brazil.
It’s interesting to note that in the one hundred and fifteen years, the USA has intervened more than two hundred times in the Caribbean, from paying to remove governments to outright invasion and execution of leaders. Belizeans should note that the 5 member team is led by a UK citizen of Ghana extraction, and four Europeans, from France, Poland, Netherland and Germany. Two of them are also judges to the sister Anglo-American organization – International Court of Justice (ICJ). Monday, Graham Allison wrote in Diplomat.com that the three sister Anglo-American organizations – International Court of Justice (ICJ), Permanent Court of Arbitration (PCA) and the International Criminal Court (ICC) “are only for small powers. Great powers do not recognize the jurisdiction of the international courts.”
According to Mr. Allison, last week, former UK PM, Cameron urged China to follow the rules system and accept the decisions of the PCA, but Mr. Cameron forgot that last year this same court—PCA had ruled that the UK had violated the Law of the Sea by unilaterally establishing a Marine Protected Area in the Chagos Islands. The UK has never accepted the ruling of the Hague court, and the protected area remains in place today. And the worst offender of these rulings have been the United States. In the 1980’s Nicaragua had brought the United States to Court for mining its harbors. The US was ordered by the Court to pay reparations to Nicaragua, the US refused, and when the case was brought to the UN Security Council the United States vetoed six resolution. US Ambassador, Jean Kirkpatrick summed up Washington’s view by saying, the PCA is “semi-legal, semi-juridical, semi-political body, which nations sometimes accept and sometimes don’t”. Since Belize is a minor power, the Anglo-Americans are instructing us to accept a European court to decide if we Belizeans own the lands and sea of Belize’ current borders. Wow!!
And how will all of this affect Belize? The immediate is this threat of nuclear war by the Anglo-Americans against Russia, China and India as a reaction to the imminent collapse of the financial system. In 1962, The Soviet Union (Russia) had put nuclear missiles in Cuba aim at Washington DC. The United States was prepared to start World War III unless the missiles were removed from Cuba. Today, 2016, NATO has put nuclear missiles in Poland and the Baltics on Russia’s borders; and the United States has announced last week that it’s going to put nuclear missiles in South Korea on China’s border. And to make the situation more dire, the United States also announce that China must comply with the decision yesterday of the Permanent Court of Arbitration (PCA) or face the military forces of the United States. The coming weeks will dictate if we are all destroyed by a craze Anglo-American oligarchy which refuses to accept that Europeans do not own nor control the world anymore. As Bloomberg editor said yesterday – “Hey Dude, We are Back” – meaning that after 162 years of humiliation by the Europeans, China is a great power again. –Amadala