- It is not a question of whether Greece will default. Greece will most probably default by mid 2012. The big one isn’t Greece which makes up about 2.3% of the GDP of the Eurozone. The country that will likely trigger the falling dominoes is Spain! There is no way Spain can be bailed out! When it tanks, the entire Eurozone project will come to an end. The Euro will undoubtedly be useful as wallpaper. A global currency crisis is coming! Got gold yet?
What happens when Greece defaults
By Andrew Lilico, http://www.telegraph.co.uk/
It is when, not if. Financial markets merely aren’t sure whether it’ll be tomorrow, a month’s time, a year’s time, or two years’ time (it won’t be longer than that). Given that the ECB has played the “final card” it employed to force a bailout upon the Irish – threatening to bankrupt the country’s banking sector – presumably we will now see either another Greek bailout or default within days. What happens when Greece defaults. Here are a few things:
- Every bank in Greece will instantly go insolvent.
- The Greek government will nationalise every bank in Greece.
- The Greek government will forbid withdrawals from Greek banks.
- To prevent Greek depositors from rioting on the streets, Argentina-2002-style (when the Argentinian president had to flee by helicopter from the roof of the presidential palace to evade a mob of such depositors), the Greek government will declare a curfew, perhaps even general martial law.
- Greece will redenominate all its debts into “New Drachmas” or whatever it calls the new currency (this is a classic ploy of countries defaulting)
- The New Drachma will devalue by some 30-70 per cent (probably around 50 per cent, though perhaps more), effectively defaulting 0n 50 per cent or more of all Greek euro-denominated debts.
- The Irish will, within a few days, walk away from the debts of its banking system.- The Portuguese government will wait to see whether there is chaos in Greece before deciding whether to default in turn.- A number of French and German banks will make sufficient losses that they no longer meet regulatory capital adequacy requirements.- The European Central Bank will become insolvent, given its very high exposure to Greek government debt, and to Greek banking sector and Irish banking sector debt.- The French and German governments will meet to decide whether (a) to recapitalise the ECB, or (b) to allow the ECB to print money to restore its solvency. (Because the ECB has relatively little foreign currency-denominated exposure, it could in principle print its way out, but this is forbidden by its founding charter. On the other hand, the EU Treaty explicitly, and in terms, forbids the form of bailouts used for Greece, Portugal and Ireland, but a little thing like their being blatantly illegal hasn’t prevented that from happening, so it’s not intrinsically obvious that its being illegal for the ECB to print its way out will prove much of a hurdle.)
… for the full article click here!
“Are We in July 1914?
The crisis leading to World War I began with the Sarajevo assassinations of June 28, 1914, but the first major declaration of war did not occur until August 1. In the interim month of July 1914, large parts of European public opinion retreated into a dreamlike trance, an idyllic la-la land of elegiac illusion, even as the deadly crisis gathered momentum. Something similar can be seen today. … In reality, if there were ever a time to mobilize to stop a new and wider war,
this is it.” - Webster Tarpley
- As mentioned before, war with Pakistan is increasingly likely. This will lead to a war with China and the start of the Satanic World War 3. Webster Tarpley provides sound analysis!
US, Pakistan Near Open War; Chinese Ultimatum Warns Washington Against Attack
by Webster G. Tarpley, Ph.D., TARPLEY.net
China has officially put the United States on notice that Washington’s planned attack on Pakistan will be interpreted as an act of aggression against Beijing. This blunt warning represents the first known strategic ultimatum received by the United States in half a century, going back to Soviet warnings during the Berlin crisis of 1958-1961, and indicates the grave danger of general war growing out of the US-Pakistan confrontation.
“Any Attack on Pakistan Would be Construed as an Attack on China”
Responding to reports that China has asked the US to respect Pakistan’s sovereignty in the aftermath of the Bin Laden operation, Chinese Foreign Ministry spokesperson Jiang Yu used a May 19 press briefing to state Beijing’s categorical demand that the “sovereignty and territorial integrity of Pakistan must be respected.” According to Pakistani diplomatic sources cited by the Times of India, China has “warned in unequivocal terms that any attack on Pakistan would be construed as an attack on China.” This ultimatum was reportedly delivered at the May 9 China-US strategic dialogue and economic talks in Washington, where the Chinese delegation was led by Vice Prime Minister Wang Qishan and State Councilor Dai Bingguo.1
Chinese warnings are implicitly backed up by that nation’s nuclear missiles, including an estimated 66 ICBMs, some capable of striking the United States, plus 118 intermediate-range missiles, 36 submarine-launched missiles, and numerous shorter-range systems.
Support from China is seen by regional observers as critically important for Pakistan, which is otherwise caught in a pincers between the US and India: “If US and Indian pressure continues, Pakistan can say ‘China is behind us. Don’t think we are isolated, we have a potential superpower with us,’” Talat Masood, a political analyst and retired Pakistani general, told AFP.2
The Chinese ultimatum came during the visit of Pakistani Prime Minister Gilani in Beijing, during which the host government announced the transfer of 50 state-of-the-art JF-17 fighter jets to Pakistan, immediately and without cost.3 Before his departure, Gilani had stressed the importance of the Pakistan-China alliance, proclaiming: “We are proud to have China as our best and most trusted friend. And China will always find Pakistan standing beside it at all times….When we speak of this friendship as being taller than the Himalayas and deeper than the oceans it truly captures the essence of our relationship.”4 These remarks were greeted by whining from US spokesmen, including Idaho Republican Senator Risch.
The simmering strategic crisis between the United States and Pakistan exploded with full force on May 1, with the unilateral and unauthorized US commando raid alleged to have killed the phantomatic Osama bin Laden in a compound at Abottabad, a flagrant violation of Pakistan’s national sovereignty. The timing of this military stunt designed to inflame tensions between the two countries had nothing to do with any alleged Global War on Terror, and everything to do with the late March visit to Pakistan of Prince Bandar, the Saudi Arabian National Security Council chief. This visit had resulted in a de facto alliance between Islamabad and Riyadh, with Pakistan promising troops to put down any US-backed color revolution in the kingdom, while extending nuclear protection to the Saudis, thus making them less vulnerable to US extortion threats to abandon the oil-rich monarchy to the tender mercies of Tehran. A joint move by Pakistan and Saudi Arabia to break out of the US empire, whatever one may think of these regimes, would represent a fatal blow for the fading US empire in South Asia.
As for the US claims concerning the supposed Bin Laden raid of May 1, they are a mass of hopeless contradictions which changes from day to day. An analysis of this story is best left to literary critics and writers of theatrical reviews. The only solid and uncontestable fact which emerges is that Pakistan is the leading US target — thus intensifying the anti-Pakistan US policy which has been in place since Obama’s infamous December 2009 West Point speech.
…. for the complete article click here!
“Military men are dumb, stupid animals to be used as pawns for foreign policy.” ~ Henry Kissinger (Committee of 300?)
- Daniel 7:23 (New King James Version)
23 “Thus he said:
‘The fourth beast shall be
A fourth kingdom on earth,
Which shall be different from all other kingdoms,
And shall devour the whole earth,
Trample it and break it in pieces.
- Daniel 11:36-39 (New King James Version)
36 “Then the king shall do according to his own will: he shall exalt and magnify himself above every god, shall speak blasphemies against the God of gods, and shall prosper till the wrath has been accomplished; for what has been determined shall be done. 37 He shall regard neither the God[a] of his fathers nor the desire of women, nor regard any god; for he shall exalt himself above them all. 38 But in their place he shall honor a god of fortresses; and a god which his fathers did not know he shall honor with gold and silver, with precious stones and pleasant things. 39 Thus he shall act against the strongest fortresses with a foreign god, which he shall acknowledge, and advance its glory; and he shall cause them to rule over many, and divide the land for gain.
The Silver Shield: Fundamentals of Silver Extremely Bullish Despite ‘Drive By Shooting’ (Manipulation Lower) By Bullion Banksters!
- See also:
In this video, renowned Wall Street trader and financial commentator Victor Sperandeo and James Turk, director of the GoldMoney Foundation, discuss whether or not gold is still a good buy at these prices, and some of the macroeconomic trends that have powered the gold and silver bull markets. Victor and James also talk about the dire fiscal position the US government is in, and some of the political and economic pressures that could affect the 2012 US presidential campaign. They talk about the prospect of international investors forcing up the US government’s borrowing costs, and how interest payments are forming an ever-growing part of the Federal government’s budget. They also discuss what the tipping point will be for the US economy, the dollar and the US government. In Trader Vic’s view, Ben Bernanke and the Fed are hoping to inflate away the government debts and liabilities. They speak about the European sovereign debt crisis affecting countries like Greece and Ireland, and whether or not the euro and the European Union will survive in their present forms. At the end they discuss the recent movements in the silver price, and whether or not the recent Comex margin hikes were justified. Trader Vic also comments that given central banks efforts to debase paper currencies and keep real interest rates negative, investors should buy tangible inflation-proof assets such as precious metals and commodities.