The Global Expropriation Wave
by Prof. Dr. Eberhard Hamer,
Mittelstandsinstitut Niedersachsen e.V.
WHOEVER GIVES AWAY HIS assets and entrusts them to strangers (including banks) can be expropriated.
The US has the highest indebtedness in their history (over 30 trillion dollars = 135% GDP), so they have been over-indebted for a long time and are therefore actually no longer creditworthy.
But they also have the highest balance of payments deficits in their history ($976 billion in 2020), which they can only cover in a makeshift way by forcing their satellites to pay NATO contributions (essentially to the US defense industry) and continuing to “print money” without any new real value behind it. These “fiat dollars” are accepted in the world only as long as there is confidence in the dollar. However, this confidence is no longer based on economic strength, but on the military strength of the US. And this has been tarnished; not only since Vietnam and Syria, but also since the defeat and flight of the world’s largest army from Afghanistan. So not even the more than $800 billion in military spending can make the US army victorious in regional wars! It can no longer defend the dollar empire. As soon as this realization takes hold — that is, as soon as the world loses confidence in the dollar — the Americans will also lose their financial inflows, their liquidity, their solvency — the second reason for bankruptcy.
The war in Ukraine is not only supported by the US through military aid deliveries, but has long since become an economic and financial war between the US and Russia. Economic sanctions — especially against oil and gas — are intended to damage Russia’s solvency, and financial sanctions (exclusion from the SWIFT agreement) are intended to shut down its solvency despite that nation’s high balances.
And, all over the world, Russian assets are being seized — not only assets of the Russian state, but also of Russian individuals, not only the oligarchs; and even foreign assets in Russia. These are the same measures that the US and its allies took against German assets in and after the last world war: The expropriation of Germans all over the world. Now it is the Russians who are expropriated everywhere in the world — even harmless Russian citizens who cannot do anything for the war and have nothing to do with it at all. It is enough that they are Russians — just as being a German was once enough — to expropriate their property.
During and after the last world war, England, France and the US, by expropriation of German state and private property,
- confiscated and sold all foreign branches of our companies worth many billions of dollars,
- expropriated the accounts of German companies and German private individuals all over the world — hundreds of billions of dollars worth,
- stole all German patents, which were expropriated and sold in the US — to a value of more than 100 billion gold dollars,
- stole also real estate owned by Germans anywhere in the world, which was expropriated and disposed of in favor of the state assets of the victorious powers — its value is difficult to estimate, but also was in the billions of dollars.
The expropriation of the Germans 70 years ago is now being repeated with the Russians, with the same justification: The victim is an enemy in war [though, in this case, no war has been declared].
Because the world has quietly accepted the expropriation wave against the Russians due to propagandistic hate against Russia, further expropriation waves will come soon. This time, they will not be for war reasons, but because of simple debt and liquidity constraints.
The mountains of debt piled up internationally not only in the US but also in the EU by many states of the world through “cheap money at zero interest” can no longer be paid off through savings (the point of no return), but only through the expropriation of the creditors, i.e. through, first, progressive inflation, and then “currency reform.” This has always been the case in the course of history with over-indebtedness and is now also before us. The given reason will not be the unrestrained indebtedness caused by the spending orgies of Western governments, its real cause, but possibly the Ukraine war or the Corona virus, or both, will be named. In any case, people will have to accept the expropriations — and will suddenly realize that their previously high financial liquidity was just “foam.” If the foam evaporates, a much smaller quantity of goods, perhaps only 20 or 40% of real values, is revealed — thus the people are thrown back from the illusion of great wealth into the reality of scarcity and poverty.
Inflation and “currency reform” are actually nationwide financial expropriation. It has already begun with zero interest rates, which expropriated savers (360 billion euros in Germany alone) and destroyed old-age pensions. Instead of protesting against it, the population even re-elected the political expropriators, i.e. accepted their expropriation through zero interest.
The population will also not rebel against the price increases through inflation, especially since the politicians will not admit that they themselves are actually to blame for this through money supply increases via an orgy of debt — but will bring in another culprit, the Ukraine war.
This is evident in the gas and oil business. The federal government pretends that the oil price is made by the oil multinationals, or the Russians. In fact, more than 60% of the price of oil is taxes. So if the oil price rises — and with it the taxes — the federal government would have it in its hands the ability to keep the oil price stable by lowering the taxes added to the oil price. The state does not want to do, however, without these permanent incomes, and plans therefore only “temporary” measures, and wants thus the cost increase and inflation expropriation of the citizens to continue.
Therefore the highest danger now exists for all savings capital and accounts denominated in Western fiat currencies. Recall the last “currency reforms” in Germany: In 1947, with expropriations of 90%; and the conversion to the euro in 2001 at a loss of -50%; have taught us that every currency reform is at the expense of all currency holders and ultimately always benefits the state [and the bankers it serves]. After all, the deliberate purpose of every “currency reform” is precisely to reduce “excess liquidity” in the economy and the private sector through devaluation. The fact that this simultaneously reduces the government’s own over-indebtedness goes unmentioned.
Anyone who lends money to, or transfers money to, a bank or insurance company or other private businessman has, in effect, surrendered property and has only an obligatory claim that he will get it back. But this legal claim is worth less and less in the age of expropriation, is respected less and less, and therefore endangers any fiat money in accounts in any of these institutions.
The proof has been brought before us again and again by the Swiss and US banks. The assets of the Tsars have never been restored by the Swiss bankers, nor those of the Shah of Persia. And he who believes he has money in Swiss bank accounts, will soon experience what the Russians are experiencing now: How difficult it is to get money and property from banks in times of real or self-declared “crisis.” Many will fail!
The Mittelstandsinstitut Niedersachsen is aware of many cases in which Swiss and US banks have successfully prevented gold and valuables deposited in Switzerland and the US from being retrieved by the depositors themselves or their heirs. History tells us of the century-lomg “business of embezzlement” by gangster banks. So whoever has legal claims for the return of his “safe deposit” contents or his accounts is always in a weak position, and has to prove, has to sue, may have to wait for years, and often remains unsuccessful. Trust in banks, funds, and other capital collection agencies should therefore be reduced drastically, as expropriation practices are multiplying.
The expropriation of the Russians has thus destroyed the global basis of law and trust again after more than 70 years. If I am no longer allowed to trust my debtors to pay back my “loans” [deposits], the highest danger now exists for all deposits in banks and shares in funds — for all financial assets that have been transformed into manipulable claims for restitution.
The long overdue recession, now triggered by the Ukraine war, will be intentionally increased to a “Great Reset” by the “Schwab-Connection” (Davos). There will be many losers who will not be able to resist the encroaching public and private hands.
Some research indicates that this great recession and wave of expropriation will drive about one third of the middle class into the lower class and into poverty; that our middle class society will be permanently changed by it.
* * *
Prof. Dr. Eberhard Hamer (born August 15, 1932 in Mettmann) is a German economist. His main focus is on the economics of medium-sized businesses. In the 1970s, he founded the privately run Mittelstandsinstitut Niedersachsen in Hanover.
* * *
Source: Roberto B.