This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Banks Stealing Our Wealth and Our Sovereignty: Opinion

VANCOUVER ( Silver Gold Bull) -- One of the difficulties in attempting to cover developments in the global economy is that often there are flurries of news items at any one time, making it impossible to deal with all these events as they occur.

That's why it is only now I am commenting on an announcement by the European Central Bank on July 20 that Greek government bonds would no longer be "eligible as collateral."

There are many interesting points. To begin with, we see yet another example of these con men using a slippery euphemism to hide the fact their paper empire of fraud is collapsing around us. But there are also many nuances to this announcement.

To place this announcement into some context, it's first worth noting this is the second time this year the bankers have "suspended eligibility" of Greece's bonds, the last time being literally days before it defaulted on 75% of that debt.

With that additional background, we now can fully understand what the ECB actually meant with its euphemism: Greek bonds are worthless.

In turn, this directly implies an even more dire reality: Greece has been declared bankrupt for the second time in six months.

Understand that there is only one small but significant step separating an "insolvent debtor" from a "bankrupt debtor." While bankruptcy is often inevitable for insolvent debtors, what makes such debtors merely insolvent is creditors will continue to extend them additional credit.

Conversely, once the debtor is cut off credit and unable to pay its bills, then bankruptcy is instantaneous/automatic. Thus, we have a cabal of private bankers simply decreeing all Greek bonds are worthless and, as an inevitable consequence, Greece as a nation is bankrupt.

Am I the only person who sees a problem with this?

Once upon a time, Western nations enjoyed a concept called "sovereignty." By no coincidence, we enjoyed our sovereignty during a period of history when we practiced a concept known as "the gold standard."

With any nation practicing a gold standard, no cabal of foreign bankers can simply decree that a nation's bonds were worthless, because they would be backed by gold. Thus no cabal of foreign bankers could decree that your nation was bankrupt.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs