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20 May, 2010 23:09

Economic distress part of a financial war

Economic concerns are still on the forefront of many minds across the globe as the eurozone remains in turbulent waters and financial regulation reforms are still unclear in Washington.

Investigative journalist Webster Tarpley said these events are a back and forth battles in a long-term financial war.

Germany made a bold move on May 20 banning short-selling, which effectively prohibits the use of credit default swaps on european . Tarpley said the ban eliminates “credit default swaps on bonds of the Eurozone countries.”

The new rules, said Tarpley, are aimed at keeping US-based hedge funds and banks from targeting European government bonds and the euro itself.

What this has essentially done is direct the panic forces of the depression away from the euro” and towards the United States, said Tarpley.

Tarpley's comments reinforced the idea that the Greek financial system is not itself to blame for the country's financial turmoil.

The Greek strikers need “to fight speculation and find a way to shift the cost of the depression back onto the banks that have caused it,” said Tarpley.

The German ban is working,” he said. Although he questioned why the rest of eurozone countries hadn't followed Germany's example.

What are the other Europeans going to do? It looks like we have some Euro wimps on our hands right, because you’d think they would imitate it right away,” said Tarpley.