Daniel Estulin

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Worldwide Economic Woes Predicted After Bilderberg Meeting


This month’s meeting of the Bilderberg Group, attended by the richest and most powerful individuals and families in the world, focused on the economic plight of many countries. Although the meeting and its results are kept secret, investigative journalist Daniel Estulin, author of the international best-seller The True Story of the Bilderberg Group, has discovered dire predictions for the coming year debated during the conclave.


The powerful group had hoped to give Europe a chance to recover, but there is no more time for that to happen. The troubles in Greece have worsened since Moody downgraded the five largest Greek banks, causing the banking sector and stock market in the country to crash. European officials have tried desperately to control the wave of selling against the euro by announcing support for Greece without giving any actual details. There was also talk about creating a European Monetary Fund to support countries in crisis but its feasibility was denied.


Greece is facing an aggressive austerity plan (along with Spain, Portugal and Ireland) in order to curb its deficit and bring it back in line with the treaty deficit limits set by the guidelines of the monetary union. According to that plan, Greece should have a deficit of 2% of GDP, instead of the whopping 12.7% they have now. Several American Bilderbergers agreed that the possibility of this plan being a success seems highly unlikely. Greece is not alone. A virulent epidemic of sovereign debt is spreading like wildfire across the euro area.


One Bilderberg delegate admitted that, "if the Greeks are rescued, what is next? And where the hell is all the bailout money going to come from? Policymakers may need to drop almost 800 billion dollars to ‘save’ everyone. "


An American Bilderberger wasn’t sure that something similar could not happen in the U.S. "After all, the deficit is out of OUR control! Our level of debt is through the roof! Our politicians are burying their heads in the sand, assuming only be able to secure financing for their profligacy at rock bottom prices forever. These are precisely the same problems that have accumulated in Greece for months.”


Even though eurozone countries appropriated nearly 750 billion euros, it was not enough to convince markets that Greece could pay its debts. The Independent of London reported that "Greece has become the new Lehman Brothers: a potential collapse would undermine the global banking system."

Estulin wonders if the euro can survive in this climate. It may be that weaker, financially challenged EU countries have to temporarily give up their membership, since, as a German Bilderberger pointed out, "if it becomes obvious that a Greek euro is not equal to a German euro, then the monetary union can not survive.” In other words, what the debate is heating up to is a composition of various levels of the EU and a mechanism to enter and leave the single currency.


Although Greece is in the spotlight now, the next country in trouble will be Japan. As discussed recently in the recent trilateral meeting, Japan is walking a tightrope of their own finances, with public debt looking to reach 200% of GDP next year. The country's debt is larger than any other industrialized nation. According to Hideo Kumano, chief economist at Dai-ichi Life Research Institute, the country "can not finance its record budget of one billion dollars approved in March next year as it tries to stimulate its fragile economy. Without issuing more government bonds, Japan would go bankrupt in 2011."


For the US, the Treasury Bond Market and the corresponding increase in interest rates is a new financial bubble ready to explode. At year-end 2009, there were $34.7 billion U.S. government, corporate, municipal and other bonds outstanding. In comparison, the total market capitalization of the broad index Wilshire 5000 Total Market stocks is only 13.9 trillion. In other words, the U.S. bond market is two and a half times the size of the U.S. stock market!


Foreign creditors hold about 60 percent of all outstanding U.S. negotiable. The biggest buyers of U.S. bonds are countries such as China, Japan, Russia and the bloc of OPEC nations in the Middle East. However, it looks like the Chinese have had enough. That country has been the largest foreign creditor of the United States for long, but they recently sold a net $34.2 billion in Treasury bills. That left them with just $755.4 billion dollars.


“The point is that the entire Western world and Japan are most indebted,” says Estulin. “There are ways out of debt. The first is the default. Another way out is to print money. Unfortunately, at the end of this global crisis of historic proportions, the bond market and currency will be destroyed.


One of the key messages out of the Bilderberg meeting is that the problems of Greece have not only exposed the structural weaknesses of the European Monetary Union, but have also exposed the structural problems of the world economy. Government officials around the world have responded to the debt problem by adding more debt. For those countries in the euro area that are backed into a corner, a currency devaluation may be the only option. Meanwhile, three out of four of the most liquid currencies in the world - the euro, pound and yen - are likely to depreciate drastically before all is said and done.”


We are witnessing the disintegration of the financial world. The first phase occurred in the wake of the great crisis of debt and housing 2008-2009, erasing half of U.S. securities. The second phase has been reached with the major sovereign debt crisis of 2010. As one Bilderberg attendee agreed, "is now put in place in Spain, Hungary, Italy, Ireland and Portugal." All these countries are running deficits, have huge budgets, many have huge debt burdens and all have muted growth prospects.


Privately, several Bilderberg reported that "the measures being promoted and discussed at the international level are a joke and full of hot air" because they do not address the root of the problem itself, which means that regardless of what final measures for the adjustment, no solve the long-term effect.


Estulin’s book and his new release The Shadow Masters, are published by TrineDay Books in the U.S.