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Austerity, Crisis, Debt, Democracy, Icelandic revolution, Smash and Grab

The Smash and Grab global scheme behind #Debt, #Crisis and #Austerity

How can Banks and Governments “run out of” money if they are creating money in infinite quantities?

Above question is never asked – let alone answered – anywhere, not because it is an invalid question, but because tackling this thorny issue is against the interests of those who keep all countries of the world in the ever-deepening debt-crisis.

  • We can’t find this ‘news’ on the cover pages of corporate media, nevertheless it remains an earth-shattering fact: highly developed Western super-powers, including the UK, are at an advanced stage of the same debt-crisis that the media-propagandists for decades presented as a Greece-specific “disease”.

Recently Argentina has made it into the news as a country struggling under a new wave of the imposed Debt-Austerity-Crisis package, however, behind the scenes all countries are forced into adopting the “Debt therefore Austerity” power-grab global Bank-agenda masked as ‘economic necessity’. The most spot-on expression is probably the “smash-and-grab junk economics” applied by Michael Hudson, renowned independent financial economist and historian.

On this blog several articles have been devoted to the topic of the deliberately inflicted Debt-crisis (see related posts). Here this issue is highlighted again with the emphasis on the pressing urgency to raise public awareness of the global Smash and Grab agenda behind the Debt-Crisis-Austerity phenomenon.

The main questions this post is concerned with: who are behind this global financial war, what are their motives and how can we, the 99%, put an end to this devastating process?

“If you look at how the European Union has been organized, it doesn’t have any common governing organization. There’s no real parliament able to set European-wide tax rules, regulatory rules or anything else. There’s only one European organization that can set policy, and that’s the European Central Bank. And the European Central Bank, like central banks everywhere, are run by the commercial banks. And in Europe they’re run by the ultra-right wing. So we’re talking about a right-wing extremist policy, and they believe essentially in privatization giveaways.” (Michael Hudson: Why Greece’s Debt is Illegal http://michael-hudson.com/2015/07/why-greeces-debt-is-illegal/)

smash and grabSummary of the Smash and Grab global scheme

The premise of the scheme is a sequence of imposed fraudulent IMF-loans generating odious public Debt (Fraud) upon the allegation that there is Crisis in a country (Hoax).
Contrary to popular myth, these Loans are not withdrawn from any pre-existing funds – every time when Banks lend to any individual, business or government they create NEW MONEY for the purpose.
Then the generated public Debt is used as “reason” for imposing Austerity which then triggers real economic Crisis (Smash) in the given country.
To allegedly alleviate the real Crisis, more IMF-loans are imposed with the binding obligation of the country to continue Austerity (more Smash) and by the obligation to allow the “creditor” Banks to seize all countries’ values, resources, lands, etc. via Privatisation (Grab).

That is, all assets of the planet are about to ‘return’ to those who impose these loans: the Bankers.

Crisis: to make a killing by killing the 99%

Andrew Mellon – US banker, Secretary of the Treasury 1921-32 – once famously said: “in a crisis, assets return to their rightful owners” (i.e. to the Banks). This fact evidently implies that crisis, which is tragedy, downturn and constant threat for the 99%, is a desirable, utterly positive phenomenon for the Banks.

The global economic meltdown we experience today is not “crisis” – more appropriate terms could be: scam, scheme, con, financial crime, financial world-war, and genocide. It is the silent, invisible way through which Banks make sure that all assets return to them in exchange for the digital phantom $ trillions they issue out of thin air.

The official narrative “selling” the idea that Banks can go bankrupt at all, is a hoax. Private Banks issue countless $ trillions without any transparency and accountability to democratic boards.

Instead of Governments controlling central banks, central banks are controlled by private Banks and private individuals. Both the Bank of England and the American ‘Central Bank’ the Fed are private, unelected, independent, non-transparent and unaccountable entities with private owners, who are apparently above the law. (Fed Reserve Cannot Account for $9 Trillion)

The reason why this topic is particularly pressing: whenever a version of the Debt-Crisis peaks in a country, as it happened in Iceland, it triggers a scenario similar to the 30’s Great Depression, mass-scale robbery of the citizens’ bank-accounts by Banks and Governments, and consequent mass-poverty, homelessness, starvation and death. And all this is happening upon the false allegation that Banks and Governments need to “save” money or demand more from the public, because they went bankrupt, or they might.

In theory, neither Banks nor Governments go ever bankrupt, since – in theory – either can create as much money as they wish. They merely pretend to go bankrupt in order to maintain the pretext for demanding the content of their clients’ bank account or their taxpayers’ money, in order to “to rescue” themselves.

In practice, under the present unlawful circumstances, when privately held Banks create 97% of all money out of thin air and Banks dictate the terms for Governments (rather than the way around), it means Governments are no longer allowed to create money (it is to this end that Troika demands the privatisation of all central banks), which then comes down to the absolute control by private Banks over all countries. In practice, the one single rule of the game: in case the Government of a country does not obey the financial-economic diktats of Banks, then the said country will stay without funding. There is a term for this sort of setting the conditions: BLACKMAIL.

This is much what has been done to Greece. The European Central Bank says, “We will lend you more money. We know that you can’t pay, and we’re not even going to discuss whether you pay or not. We’re going to lend you money, and if you don’t do as we say, we’re going to smash all your banks. We’re going to stop the bank internet payment. We’re going to stop supplying you with currency, and we’re going to drive you bankrupt if you don’t agree to sell off your public domain. … This is illegal under the odious debt law.”
(Michael Hudson: Why Greece’s Debt is Illegal http://michael-hudson.com/2015/07/why-greeces-debt-is-illegal/)

The fraud that is too big to believe

  • The primary element of the staggering Smash and Grab global scheme is the fact that private Banks are the main issuers of money in all economies, rather than Governments or Central Banks as most of us tend to assume.

Empirical research provides direct evidence that whenever Banks make loans, they do NOT check the loan-transaction against any reserves or deposits. The Banks all over the world create money out of thin air (out of nothing) whenever they give loans to individuals, organisations and governments.

By now many of us are aware of above fact, but most of the 99% who are most gravely affected by this fact are unable to gain insight into the devastating implications of it.

The reason why this topic needs a special public attention: the ‘creditor’ Banks’ claim that they can go bankrupt at all and they need to be “bailed out” is a lie by omission, it implies the tacit allegation that Banks are mere intermediaries between savers and borrowers, whereas they are not. Banks are not intermediaries, they create new money, which implies they take no risk whatsoever either on their own or on anyone else’s behalf, and that they can’t go bankrupt.

“Last week, something remarkable happened. The Bank of England let the cat out of the bag. In a paper called “Money Creation in the Modern Economy“, co-authored by three economists from the Bank’s Monetary Analysis Directorate, they stated outright that most common assumptions of how banking works are simply wrong, and that the kind of populist, heterodox positions more ordinarily associated with groups such as Occupy Wall Street are correct. In doing so, they have effectively thrown the entire theoretical basis for austerity out of the window.” ( Guardian: The truth is out: money is just an IOU, and the banks are rolling in it” ~ David Graeber)

Mainstream economists hide the fact that Banks issue new money out of thin air, rather than making loans from pre-existing money-base, while the very few experts in the alternative sphere who tackle this topic, refrain from revealing those implications that shed light on the foul play:

  • When Banks or Governments pretend to go bankrupt, they make such claims for the sole purpose to smash and grab countries, to deliberately collect real assets against self-issued $ trillions of digital phantom-money, while pushing the masses into abject poverty via Austerity, bailouts, bail-ins and high taxation.

As far as the debt is concerned, it is illegal debt on more levels:
1) It is a phantom debt as explained in an earlier analysis
2) This phantom debt is accumulated without the consent of the people, and is ‘used’ without the benefit of the people

“The term odious debt is a legal term. It was invented earlier in the century, almost 100 years ago, for debts that are basically wrong, or ones that are taken on by a non-democratic government in the name of the people, but paid to themselves and their backers. Then they try to shift this debt onto a country’s taxpayers. Under international law such debts don’t have to be paid. That’s what happened in Greece. The loans made to Greece by the International Monetary Fund and European Central Bank were not really made to Greece. Greece was only a vehicle for them to pay bondholders, who made a killing.”
Michael Hudson: Why Greece’s Debt is Illegal http://michael-hudson.com/2015/07/why-greeces-debt-is-illegal/)

3) Even if these public debts were real and legal (they aren’t), the very conditions set upon imposing these debts – Austerity – only worsens any crisis (let alone triggering recovery), hence they eliminate even the slightest chance of any “expected” recovery. This fact alone is direct proof of foul play. This fact alone is to confirm what we could infer from Mellon’s quote: Banks deliberately maintain the ‘blissful’ crisis so that they can collect the tangible collateral assets for the $ trillions they issue by mere keystrokes.

The Smash and Grab global scheme

As we could see, upon making the very loans that indebt Governments, Banks never withdraw a cent from any pre-existing money-base, yet they demand to be “paid back” to avoid bankruptcy. There exists nothing in any Bank ‘to be paid back’. When commercial banks experience insolvency, central banks can – and often do – bail them out via Quantitative Easing (QE) – by simply issuing several more $ trillions for them. In fact QE means nothing else than pumping endless amounts of money into the pockets of Bankers.

To underscore this point again: the so-called creditors, that is the privately owned Banks who create an infinite amount of new money out of nothing, have no reason to be “bailed out” by their clients’ deposits or by anyone for that matter, exactly because Banks issue NEW money, out of nothing. This also implies that investors and savers are not affected when a country or an individual is unable to repay a debt. Yet, the allegations behind the so-called “Bail-ins” are based upon the false claim that investors and savers gravely suffer when debtors fail to meet their payment obligations.

Further implication of the fact that creditor Banks create money out of thin air: the IMF (International Monetary Fund) – a private agency to represent the money-printing private Bankers – has no reason to interfere with domestic economic policy and to demand Austerity in a country targeted by its corrupt loans, either upon the allegation to protect Banks and investors or for any reason. Public Debt and Deficit is a phantom construct, and the “subsequent” Bailouts, Bail-ins, Cuts and Austerity are not only unjust ‘sacrifice’ but an outright crime against society, as part of the Smash agenda within the Smash and Grab scheme.

  • Probably the shortest summary of this scheme:
    The premise of the scheme is a sequence of imposed fraudulent IMF-loans generating odious public Debt (Fraud) upon the allegation that there is Crisis in a country (Hoax).
    Then the generated public Debt is used as “reason” for imposing Austerity which then triggers real economic Crisis (Smash) in the given country.
    To allegedly alleviate the real Crisis, more IMF-loans are imposed with the binding obligation of the country to continue Austerity (more Smash) and by the obligation to allow the “creditor” Banks to seize all countries’ values, resources, lands, etc. via Privatisation (Grab).

The aim of those who thought out and execute this scheme is clear.

The artificially generated Crisis and the Crisis-deepening Austerity is a sinister, deliberate and merciless agenda to forever seal the restored Capitalist class-power and monopoly position. This final project of the global Capitalist class is striving to undo what the former Western European Keynesian socialist governments achieved, and this final step would leave the majority of all countries’ citizens without the means to survive, without bank account and without pension, regardless of how much we have worked throughout a lifetime.

This process triggers mass-poverty and mass-emigration in each country, and since all countries are undergoing the same vicious cycle, for the majority there will be literally no space and means to live.

Democracy is not free-lunch on silver platter
“The most important political office is that of private citizen.” – Louis D. Brandeis

After witnessing countless countries going through a Debt-Austerity scenario, by now it should be evident to all of us that the Debt-Austerity-Crisis phenomenon is NOT specific to Greece, Ireland, Spain, Latvia, Ukraine, Argentina or any country/region. Since no efforts are/have been made to rescue these countries, it is evident that the goal has been to smash and grab these countries.

In the UK the Debt-Crisis is at an advanced stage as well.

Although Iceland was the very country to have been hit by the first and worst waves of the crisis in 2008, this is not specific to Iceland either. In each country, the ever-increasing public Debt and Deficit is result of a globally planned and executed scheme committed by a group of private Bankers – via the mediation of IMF – and collaborating Government officials.

The lesson we learned from a more recent event in Iceland: we should stop waiting and stop admiring countries who at a certain point in time act towards democracy. While we have been sleeping, even Iceland suffered a Bank-coup and the democratic achievements of Iceland have been reversed by the financial oligarchy. The only solution to the global economic meltdown is to start organising against the unfolding global fascism in each country.

This issue is so grave that at present our immediate existence is at stake (let alone our future).
This process is in place behind the scenes everywhere, the Bank-bribed mass-media only occasionally zero in on the subject and always for a particular propaganda.

To go on waiting for a next election or the result of an EU-referendum makes no or minimal sense, since these are evidently rigged for the one and only purpose: to serve the interests of the 1%.
Daily politics, parliamentary debates, elections, referenda, most alternative finance-economics books/programs, mainstream “alternative” media-opinions, are only spectacles to hide the real deal and to buy time for the Smash and Grab scheme to progress. The EU was secretly founded as a dictatorial federal state as an umbrella-organisation to foist this scheme on its member-states, rather than representing the peoples of Europe.

Cgq9I3KWkAELwMyNationalist parties and candidates like UK’s Nigel Farage or the American presidential candidate Trump are servants of the same global capitalist interests as the openly globalist parties/leaders are. They merely pretend to be patriotic. Waiting for them to make a difference is not only a self-defeating fatal mistake but a sign of collective amnesia, forgetting that under the same patriotic slogans started Reagan and Thatcher the global anti-patriotic neoliberal project that gave rise to the global Smash and Grab agenda.

Politicians from all parties -both on national and EU-levels – are either forced or bought into this scheme; this is why all over the world governments both on Left or Right come and go, but the same devastating Smash and Grab process remains in place. The betrayal of Greece by its “leftist” Syriza is not an exception, but the expected rule of thumb.

  • To put it bluntly, if we fail to act NOW, if we fail to expose and end this global scheme – if we don’t change the system via a peaceful Revolution like Iceland attempted in 2008 – we will all DIE without pension, bank account, healthcare and living space.

We are in big trouble – in the narrowest sense of the word – we need to pull together, uniting Left and Right as one democratic force, setting aside all divisive stereotypical preconceptions and secondary goals.

Better yesterday than today, we need to start organising local meetings, presentations, discussions, distributing pamphlets, print-outs, etc, to inform one another on the main issues and threats each country is facing but none of them are informed about. (On this blog a summary of these issues will be provided.)

Once such local grassroots are formed in a country, each can develop location-specific plans, then these can be reconciled in an interconnected country-wide framework to formulate common goals such as general strikes, blockades and persistent peaceful mass-demonstrations towards one and only goal: to bring together a constitutional assembly, draft a new constitution and take over all powers from the Banks and Corporations.

In this task we can and should take initiatives. Since each of us might assume that someone else will take the first step, the net result would amount to no action towards any organising efforts. Waiting for someone else makes no sense anyway – we need each of us in order to make a difference. Once people understand the gravity of these issues, they will participate (I know from experience.)

Freedom is never free. By the present we have been given ample evidence that the Capitalist class will NOT allow us to survive, they will not hand over democracy on a silver platter – we will have to work hard for it, and the time is NOW.


The Commanding Heights
The New Global Financial Cold War – Michael Hudson

Michael Hudson: Why Greece’s Debt is Illegal

Why Don’t Economists?… 9th March 2016

Related Posts:

The reason why our world is dying: the ongoing financial war behind all wars

The World Debt Crisis, as it is happening now: a system too rigged to fail

The REAL story of how we are kept in Odious Debt, Deficit, Crisis and Austerity

The citizens of all indebted countries should reject Austerity and odious Public Debts

The brewing perfect storm, IMF, Osborne’s threat-cocktail and the UK-version of Greek Debt Crisis

The story of how we are being conned by Banks and Governments

#Iceland: the real story behind the scandal of #PanamaPapers #PanamaLeaks

Other sources:

Richard A. Werner: “Can banks individually create money out of nothing? — The theories and the empirical evidence”

In PDF (recommended):

Richard A. Werner: “A lost century in economics: Three theories of banking and the conclusive evidence”

In PDF format:

Bank of England: “Money creation in the modern economy”

Austerity: Why and for Whom? – by Harvard-Stanford-Yale educated economics professor Richard D. Wolff:

Who are these lenders demanding austerity?  The globally active financial enterprises — mostly banks that collapsed in the crisis and were rescued by their home governments — are, together, also major lenders to those governments.  Banks own their own governments’ debts but also other governments’ debts.  For example, major banks in France and Germany are among the Greek government’s chief creditors.  US banks and related financial enterprises hold significant amounts of other governments’ debts and other nations’ banks own much US government debt.

How money is created and destroyed in the Eurozone monetary system:

Guardian: “The truth is out: money is just an IOU, and the banks are rolling in it”

GlobalResearch: “The Moral Hazard of Modern Banking: How Banks Create and Destroy Money”

Century of Enslavement: The History of The Federal Reserve

Video: Federal Reserve Cannot Account for $9 Trillion

The Legal Basis to Reject Odious Debt

Argentina’s Painful Return to “Economic Orthodoxy”

The murder of Olof Palme: Why we must never forget the Swedish socialist

The Genocidal Global Politics and Neoliberalism

On Iceland’s media-suppressed peaceful revolution:

Iceland’s jailed bankers ‘a model’ for dealing with ‘financial terrorists’

Iceland’s Debt and the People’s Revolt – Michael Hudson on GRTV


Iceland’s Peaceful Revolution Censored | Interview with Steinar Bjornsson

Icelandic People Said No

5 Ways the U.S. Can Have an Icelandic Revolution

“Iceland’s Peaceful Revolution” Interview With Hordur Torfason (Mark Taylor-Canfield)

People’s Congress Interview—Iceland’s Revolution Leader Hordur Torfason—June 3, 2012

We, the people, are the system | Birgitta Jónsdóttir | TEDxReykjavik

What was the Icelandic Revolution?
Pots, Pans and Other Solutions ~ FULL MOVIE



About Sky Wanderer

Global Political Analysis, Research & Commentary. Multidisciplinary research and analysis revealing the big picture of the global status quo versus the mainstream myths. Searching the way out of the global financial tyranny and slavery, before the system ends up in a full-blown version of global fascism.


6 thoughts on “The Smash and Grab global scheme behind #Debt, #Crisis and #Austerity

  1. Reblogged this on sdbast.

    Posted by sdbast | March 8, 2016, 5:28 pm
  2. Hi Sky! One thing I would add is that although money is infinite and worth what traders, investors and the general public consider it to be worth, Earth’s resource base and functioning biosphere, which forms the foundation of all human economies, is not! Our living world is exhausted and all of the resources (renewable and non-renewable)we require to make our economies work, are either slowly grinding to a halt, or will collapse when we reach a critical mass where no one trusts the value of money and lenders believe they will never be paid back.

    I believe this is the primary motivation behind the increasingly aggressive use of banks and military force to extract wealth from more and more impoverished nations in the world today…which we’ve talked about before. A new wrinkle added to wealth extraction was test-driven a few years ago in Cyprus- the Bank ‘Bail-In’, where depositors at the bank find their assets seized to place more collateral behind the bank’s balance sheet and keep them solvent.

    A recent episode of “It’s Our Money with Ellen Brown” http://www.publicbankinginstitute.org/_it_s_our_money_with_ellen_brown_podcasts discusses evidence that major Euro banks are already facing bankruptcy and their plans of “negative” interests rates to “stimulate growth” are only possible with bail-in seizures of deposits. Already, central banks are calling for the end of high denomination bills in the move to a cashless society. Once they get their cashless society, they have total power over people’s spending decisions (if they have any money left).

    All of these plans (and the wars-for-profit) are just a series of schemes to keep trying to keep this rickety system going. Because a total collapse would erase vast sums of the virtual wealth the Buffets, Koch’s, Gates’s and the bankers use to seize real assets.

    Back about 20 years ago, political scientist – Sheldon Wolin coined the term: Inverted Totalitarianism to describe the modern political&economic system that works like players at a poker table…where the players with the most chips win and control the game. In an economic and banking collapse, the boys with the guns would have the real power again and would be the ones giving orders in a return to unadulterated fascism.

    Posted by rlmcr (@rlmcr57) | April 6, 2016, 7:07 pm
    • Special thank you my friend for your extraordinary insightful and informative post.
      All of these plans (and the wars-for-profit) are just a series of schemes to keep trying to keep this rickety system going. Because a total collapse would erase vast sums of the virtual wealth the Buffets, Koch’s, Gates’s and the bankers use to seize real assets.

      Eloquently put and precisely true, not only above part but the entire post. I wonder if you have thought of starting your own blog – you have the knowledge-base and skills, as your comment demonstrates. Great material and great writing.
      (I haven’t yet had the time to check out the link, but I will, then I may respond with more details.)

      Posted by Sky Wanderer | April 10, 2016, 10:00 am
  3. WE, THE PEOPLE, were sold as cattle in the stock exchange in NY…what we can do is become a secured creditor, monitize our birth certificate, and take control of our money…we are all stock exempt from levy…our governments are living and feeding on us all, the working class enslaved … our govs. are a scam, they do not govern our countries, but are administrators of the banksters and corporations…greetings from Portugal.

    Posted by Helena Romão | April 11, 2016, 11:40 pm
  4. I’m just getting to grips with the scale of the problem. At least I find your info helps me to join dots. In a world where 1% have a tightgrip on the money supply and 99% have no idea even where money comes from, what hope is there? I am on a learning journey…

    Posted by nickweechblog | April 15, 2016, 10:01 am
    • I empathize with you in every sense. This topic is very hard to face and even harder to share. Most people don’t want to know. To me it seems persistence is the only way. Those who don’t get angry over these issues, don’t really grasp the weight of them. Once we pass the phase of anger, the next step is just to keep spreading the word, and voting for those like Corbyn and Sanders who at least maintain a sense of morality in this lethal system. To stay realistic yet optimistic is a difficult mix but necessary to maintain our chance of survival.

      Posted by Sky Wanderer | April 15, 2016, 10:22 am

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