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.
In other words, yet another of the many benefits provided by a gold standard is economic sovereignty. With it, economic sovereignty is assured. Without it, we are at the mercy of a banking oligarchy that has committed more fraud by dollar value just in the last decade than throughout all of human history. At the same time Western bankers are in the process of re-elevating gold to its rightful status as the ultimate monetary asset, they have been forced to steadily demote and devalue various forms of their own paper. The absolute last thing the banking crime syndicate wants to do is erode confidence in the very paper instruments they use to commit their acts of fraud, such as the $350 trillion Libor fraud. So why are they doing this? The phrase "rats deserting a sinking ship" captures this dynamic quite nicely. The banksters are decreeing that some of their paper is already worthless/near-worthless as an act of final desperation: acknowledging the worthlessness of some of this paper in order to avoid having the sheep collectively realize that all of their paper is totally worthless. Every day, with their own words and deeds, it is the bankers themselves who imply that all the paper they are flogging is worthless. When they literally give it away by the $trillion to other bankers (with their 0% interest rates), this directly implies their paper is worthless. When they place bets in their own casino exceeding 20 times the size of the entire global economy, this directly implies that the bankers are playing with play-money. But they don't want us to realize their paper is worthless, because then all that paper and their entire empire of fraud simply disappears. This ultimately leads us back to the beginning: What caused these bankers to decree that Greek bonds were worthless, and that Greece was (effectively) bankrupt back on July 20? Obviously, we did not see another Greek bond default within days of this announcement. In the case of the declaration the ECB made that Greek bonds were worthless back on Feb. 28 of this year, it was doing no more than confirming the obvious.
There has been no actual default event to validate the decree of the ECB. In other words, here we have bankers playing politics. Why is the ECB engaged in what is clearly an act of economic blackmail? Why is the ECB, and the banking cabal as a whole, willing to risk drawing attention to the worthlessness of all their paper by decreeing yet again that some of it is worthless? We have ceded our economic sovereignty to this crooked banking oligarchy when our ancestors foolishly handed our own sovereign printing presses to this crime syndicate. Their bonds of debt equate precisely to chains of slavery. Thus, when Greece simply lit a match to 75% of those bonds, it amounted to a sort of slave revolt. If all the slaves burn all the bonds then they are no longer slaves. So we see the ECB, entrusted with the control of Greece, telling Greece's sovereign government that if it does not do everything the banks tells it to do they will destroy its economy -- again. For those who like being slaves, you have two choices: the global banking-crime capitals known by the acronyms U.S. and U.K. For those of us who don't want to live out our lives as the bankers' slaves, there are several necessary steps in any progression back to economic freedom: We must elect an honest government in whatever nation we dwell. This is a major problem for Americans since its only "opposition party" serves the bankers even more loyally than the current government. We must take back our own sovereign printing-presses, and thus revoke the banksters' license to steal. We must re-establish a gold standard as quickly as possible. Often referred to as the Golden Handcuffs, a gold standard makes much/most of the financial crime being committed today impossible -- just one of the reasons for the bankers' pathological hatred of gold. Obviously these steps would be nothing more than a beginning when it comes to actually fixing our economies. However, the three steps above can be thought of as a "financial tourniquet" to prevent these vampires from bleeding off any more wealth. Once we have administered this financial first aid, then it will be possible to tackle some of the other formidable challenges still ahead. This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.