As fighting in Ukraine continues to intensify, today former U.S. Treasury official, Dr. Paul Craig Roberts, spoke with King World News about Putin’s ultimate move to crush the EU and NATO. He also warned that the West may be handing the keys to victory to China and Russia.
Dr. Roberts: “Eric, right now there are a great many things in the financial system that can blow up but the real blow up is going to require flight from the dollar and the euro. Once that happens, they can’t bail out the banks, the derivatives or the sovereign bonds.
In the short-term, while they can still print money, they can keep this rigged system standing. But the minute the value of both the dollar and the euro start collapsing, that’s when the game is over. Both of these currencies have increased in quantity far beyond the ability of the underlying economies to provide goods and services. When the flight comes there will be no way to stave off the instabilities that currently exist in the system.
“There is the potential for a massive black swan to develop because of the Greek crisis and the election of the new government. This will unfold if the German banks, the creditors of Greece and the EU politicians refuse to accommodate the legitimate needs of the Greek government.
The Greeks must renegotiate the harsh conditions that have been put on their country in order to solve their sovereign debt problem. The current agreement as it exists is intolerable to the Greeks and it can’t stand. But if the Germans and the other Greek creditors don’t agree, you could see an alliance between the Greeks and the Russians.
The BRICS now have this IMF-type bank and they have funded it with $100 billion. Putin now sees that he has the opportunity to break the Greeks off from the EU and from NATO. The BRICS bank would step in and help the Greeks with their debt-servicing problems. That could be the beginning of the unraveling of the European Union and NATO.
You have to remember, Eric, that Italy, Spain and Portugal will be watching this situation with Greece very carefully. These countries still face the same kind of threats that are being applied to Greece. And of course the Irish have suffered dramatically under the austerity imposed on them.
So if these countries see that Europe will not ameliorate the hardships that have been imposed on them by these austerity programs, and these countries turn to Russia, China and India — the BRICS — you would then see a total breakdown in the EU system. This is a system where the banks get countries in debt and then they send in the IMF to impose austerity….