Thread: Drocton Report: Euro Banksters Bleed Their Beast

Paul A Drockton M.A.
Drocton Report: Euro Banksters Bleed Their Beast



Not satisfied with establishing their Central Banks throughout Europe, and the resultant feeding frenzy, the Euro-banksters went regional. The result was one currency that paid them interest, instead of multiple ones. Napoleon could only dream about a United Europe voluntarily filling his coffers with tribute, now a Bankster reality. The consolidation brought with it new forms of paternalism and debauchery. Lest the European citizenry groan under their new yoke, broad restrictions were placed on free speech and the press.

Yet, parasites will be parasites and their massive blood-letting looks like it might prove fatal to the host. Not satisfied with charging interest on currency and loans, derivatives were introduced by the Euro-banksters as the ultimate weapon of mass economic destruction.

Greece

In Greece, the citizenry are up in arms over the new austerity measures that will make it easier for the Euro-banksters to exact their pound of flesh.

"Before any funds are disbursed under the bailout in March, the government must pass a supplementary budget including spending cuts worth 1.5 percent of gross domestic product this year, or 3.3 billion euros ($4.37 billion).

- A first breakdown of the cuts, issued this month, stated that 1.1 billion euros would come from health spending, mainly by lowering pharmaceuticals prices; 400 million euros from public investment; 300 million euros from the defense budget; 300 million from pension cuts and 300 million from the central government. Some 325 million euros of cuts were put aside to be detailed later, with the remainder to come from a series of smaller measures to reduce ministry operating expenses." (Source)

Greece has its problems. For example, in a country of about 11 million people, an estimated 750,000 work for the government. (Source) One fourth of the population is retired and living on Pensions. The government just kicked 200,000 people off the welfare and pension roles for fraud. (Source)

Yet, even the Greek Welfare state is sustainable without the additional burdens imposed by the Euro-banksters. Pensions can survive economic downturns, but they can't survive leveraged bets in the form of derivatives contracts.

Greek Nationalism is the Solution

The people of Greece need to abandon the Euro and repudiate the Euro-Bankster debts. Scrape off the parasites and watch how fast the patient recovers. The same holds true for every other country in Europe. The problem is three-fold:

1. Private Central Banks that charge interest on a regional currency (The Euro).

2. The Welfare State, which relies on bankster loans to meet its demands. Otherwise defined as Socialism.

3. Regional obligations that may or may not benefit Greece.

The solution is equally obvious:

1. Abandon the Euro. Establish an interest free currency.

2. Repudiate the Euro-bankster debt through default.

3. Abandon Socialism and establish protective Tariffs.

4. Withdraw from the European Union.

Paul A Drockton M.A. Euro-Banksters Bleed Their Beast

The DROCKTON Report

6/2/2012

75% Stock Market Correction Underway

By Paul A Drockton MA





Historic PE Ratios of the S&P 500

Notice that in 2000 PE was at an all-time high of 45. The market corrected down to 15 in 2008. Investors lost 75% of their money. The chart shows that we have not corrected down to the historic PE of 5. That means there is another 66% loss staring stock market investors in the face.

Price to Earnings Ratio is one of the most important measure of a stock's relative value.

"The price-to-earnings ratio is a financial ratio used for valuation: a higher P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio. The P/E ratio can be seen as being expressed in years, in the sense that it shows the number of years of earnings which would be required to pay back purchase price, ignoring inflation and time value of money." (Source)

So, simply stated, a stock with a PE ratio of 20 would yield about 5% in annual return on investment. It also means that it would take 20 years for you to get your money back. Factoring in inflation and the declining dollar and you lose money with a 5% annual return. The market always corrects to value as the various charts all demonstrate.

In 1920, following a long correction, PE ratios went from 23 down to 6. That means that stock holders lost 75% of their initial investment. In 1929, PEs were averaging 30. The market corrected back to 5. Stockholders lost 85% of their money. In 1965 PE ratios were back up to 25. The market corrected down to 7.

Notice that in 2000 PE was at an all-time high of 45. The market corrected down to 15 in 2008. Investors lost 75% of their money. The chart shows that we have not corrected down to the historic PE of 5. That means there is another 66% loss staring stock market investors in the face.

Facebook entered the market with a PE of 70. Correcting down to 5 would mean a loss of 93% for those that bought it at its IPO price. It would also mean Facebook trading at $2.38 per share versus $38 as an IPO. The charts also demonstrate that there have only been a few moments in history where stocks can be considered a good investment based on actual value.

For the most part its been speculative growth followed by massive losses of money to the Wall Street Casino and their Put Options.

The only investment with real value remains precious metals. To buy physical silver or gold email pdrockton@aol.com

http://pauldrockton.com/June2.html