The Carpetbaggers are coming to Europe

The Slog would like to apologise to all readers for the late arrival of this post, which was due to leave Sloggers’ Roost at 10.30 am this morning GMT, but thanks to a power cut, is now arriving here at Platform 1.

Over the last 48 hours, eurobank liquidity has become critical again. The dollar help sent the eurozone firms’ way last week is already six times higher than the US Fed expected….and so the leakage of this information has made yet more private US banks pull all the endangered cash they can out of the region.

It’s a bonkers game as a whole banking, but this one really is a direct transfer of money out of ‘taxpayer’ (central) banks to collapsing private banks – thus likely to be written off in some cases – while the relatively stable private non-EU banks pull more money still out….you can see where this vicious circle leads.

In turn, better off eurobanks sniff out the basket cases around them, and stop lending to these worthy causes. So the ECB taxpayers’ bank has to lend the private losers money, while the private winners park the money at the ECB….and earn interest at our expense, but without lending money to eurobusiness, which is what they should be doing.

I’ve written before about how bailouts for failing banks inevitably make the surviving banks richer, and governments poorer: wealth is not only transferring out of Europe towards Asia….it’s also leaving sovereign Treasuries and heading towards the JP Morgans, Goldmans and Barcaps of this crazy world.

But it won’t end there. Wait until the Chinese and the multinationals get going.

The Chinese and the globalist businesses not involved in banking are the only folks on the planet with money right now. So human nature being what it is, you can imagine what they’re thinking about. Now what sensible, socially responsible multinationals and rich Sovereigns would do is siphon off some of their money hoards and create special liquidity funds – or donate to bazookas – but they aren’t going to do that, chiefly because none of them are socially responsible. It’s the same reason they told the unlovable Christian Noyer where he could stick his Spiv bonds three weeks back.

This is how it will work. The euro has fallen more this week than at any comparable period in 2011. The eurozone itself is heading for what governments call a recession, and real people call a slump. Those two factors create a double-whammy: falling company valuations, denominated in a currency whose value is also dropping. Yes, folks, it’s gonna be bargain time for the Carpetbaggers. Why spend money on R&D and marketing when you can buy volume for nothing? Why indeed.

Banks with a large business in arranging and processing commercial marriages may be putting out a sickly face to the world, but until such time as the global mess hits first the US and then China, they will be privately rubbing their hands and projecting bigger bonuses than ever for the next eighteen months. And those CEOs with big option packages will watch as their shares zoom up in value on the basis of those acquisitions.

I think you can rest assured that 2012 will see the biggest corporate competitor-gobbling frenzy in the history of capitalism. Greece has already been ordered to sell its State owned assets anyway (Piraeus Harbour was snapped up by the Chinese) and just to recoup its social welfare budget, Spain will have to sell everything from Real Madrid to King Carlos. But the real spree will go on the Peugeots, Renaults, BMWs, Cinzanos, Phillips and Vodafones out there.

The net result will be fewer, richer banks servicing bigger multinationals. Everyone else will be starved of money, edged out, and then they too will be gobbled up.

If independent euromedia go the same way, then assuming he avoids prosecution in the US, Rupert Murdoch’s Newscorp to Fox nexus will pile in with big money too…probably led on the TV side by his talented daughter Liz. There too we will have fewer, bigger and more powerful media combines telling governments what to do and how to do it.

So if you think Westminster is beholden to all these nice folks now, just wait until around the end of 2014: they’re going to be running everything. In fact, I wonder how many Sloggers fancy a Future world (say, post 2030) in which the Chinese, the banks, and the multinationals plus their media supporters own everything, distribute everything, and run the government.

This isn’t some kind of late 1960s radical student fantasy. The process has already been in motion for decades. There is no conspiracy as such, but the clever Beijing and globalist corporate thinkers must by now be fully aware of the opportunity they have: never to listen to electorates, obey the law, worry about public opinion, face an enquiry or worry about gangster business tactics ever again.