GlobalResearch TV: Debt Contagion And The Global Economic Collapse!
- Debt Contagion and the Global Economic Collapse
by GlobalResearch TV
World markets experienced dramatic losses and rebounds last week as investors watched economic developments in Greece with growing anxiety. The jitters come after weeks of gathering turmoil in the Eurozone, starting earlier this month when credit rating agency Moody’s Investors Service downgraded Greek debt to CAA1 and indicated a 50% chance that the country would default on its bonds. Just two weeks ago, Standard and Poor responded by downgrading Greek debt to CCC, giving it the lowest credit rating for any country in the world.
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One fear is that the contagion of a Greek default would spread throughout the Eurozone, causing borrowing rates for other fragile European economies in Ireland and Portugal to skyrocket. A Portugal default would be a massive hit to the Spanish banking system, which has the largest exposure to Portuguese debt in the Eurozone. Now Moody’s has threatened to downgrade the credit worthiness of some of the largest Italian banks, and has put the Italian public debt on review for downgrade.
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The EU and the IMF have scrambled to throw together a second massive bailout for the tiny Greek nation, this one expected to be worth 120 billion Euros, with 12 billion Euros of those funds to be disbursed early next month. The Greek parliament will have to vote this week on whether or not to accept the package, which contains another round of punishing austerity measures as conditions for the funds.
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As European leaders scramble to further ensnare Greece in a web of bailouts, the Greek people have once again taken to the streets en masse to protest the austerity cuts that are the condition for the so-called rescue. Mass riots have turned the streets of Athens into battlezones between protesters and police, with demonstrators throwing stones and petrol bombs, and police returning fire with tear gas and stun grenades.
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These protests are reflected in similar large scale marches in Spain, where demonstrators from Barcelona, Valenca, Cadiz, and other areas of the country plan to converge for a mass demonstration in Madrid next month, where activists have been occupying the central square for several weeks. Now the Germans are beginning to show their frustration at shouldering the brunt of the burden for the Eurozone bailouts, with German Chancellor Angela Merkel under attack by members of her own party for her handling of the crisis.
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Puzzlingly, the fact that so many European nations are on the verge of economic collapse and the future of the Euro itself has now come in to question has not only failed to give proponents of European integration pause for thought, it has emboldened them to use the crisis to argue for further centralization of power in the European Union.
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Bob Chapman: The Greeks May Just Walk Away From Their Debts!
- Bob Chapman :
The Greeks may just walk away from their debt , if this happens the American banks are on the hook for 130 billion dollars of credit default swaps that they have to pay the Europeans on . they just created money out of thin air to create this debt in the first place so the Greeks should just walk away from their debts . We have a corporate fascist state . Greece will probably leave the euro zone and the banks in Europe will be broke , the German public is just furious , a lot of people in Europe are starting to pull their money out of the banks too , the governments are controlled by the bankers and the bankers are desperate . The US government is knocking gold and silver down …
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Children of Gaza! Genocide And Ethnic Cleansing of Palestinians!
- Zionist ’666′ Israel is a Satanic counterfeit. Ashkenazi Khazars (80%-90% of modern Jewry) are not the Jews of the Bible! They were never the chosen race and their ancestors were never in Palestine! What these Zionists do to the Palestinians is called: genocide and ethnic cleansing! See also: The Zionist Story! Genocide And Ethnic Cleansing of Palestine! Through The Eyes of An Ex-Israeli Soldier!
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1980 Jewish Almanac
“Strictly speaking it is incorrect to call an ancient Israelite a ‘Jew’ or to call a contemporary Jew an Israelite or a Hebrew.”
(1980 Jewish Almanac, p. 3)
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The Jewish Encyclopedia:
“Khazars, a non-Semitic, Asiatic, Mongolian tribal nation who emigrated into Eastern Europe about the first century, who were converted as an entire nation to Judaism in the seventh century by the expanding Russian nation which absorbed the entire Khazar population, and who account for the presence in Eastern Europe of the great numbers of Yiddish-speaking Jews in Russia, Poland, Lithuania, Galatia, Besserabia and Rumania.”
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The American Peoples Encyclopedia
… for 1954 at 15-292 records the following in reference to the Khazars: “In the year 740 A.D. the Khazars were officially converted to Judaism. A century later they were crushed by the incoming Slavic-speaking people and were scattered over central Europe where they were known as Jews.
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Exodus 22:21
“You shall neither mistreat a stranger nor oppress him, for you were strangers in the land of Egypt.”
Exodus 23:9
“Also you shall not oppress a stranger, for you know the heart of a stranger, because you were strangers in the land of Egypt.”
Leviticus 19:33
‘And if a stranger dwells with you in your land, you shall not mistreat him.’
Leviticus 19:34
The stranger who dwells among you shall be to you as one born among you, and you shall love him as yourself; for you were strangers in the land of Egypt: I am the LORD your God.
Leviticus 23:22
‘When you reap the harvest of your land, you shall not wholly reap the corners of your field when you reap, nor shall you gather any gleaning from your harvest. You shall leave them for the poor and for the stranger: I am the LORD your God.’
Leviticus 24:22
You shall have the same law for the stranger and for one from your own country; for I am the LORD your God.
Ezekiel 47:22-23
22 It shall be that you will divide it by lot as an inheritance for yourselves, and for the strangers who dwell among you and who bear children among you. They shall be to you as native-born among the children of Israel; they shall have an inheritance with you among the tribes of Israel. 23 And it shall be that in whatever tribe the stranger dwells, there you shall give him his inheritance,” says the Lord GOD.
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- The so-called Star of David is a Satanic symbol. Satanists and occult practitioners use it for calling Satan and demons!
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Former Satanist, Bill Schnoebelen (now born again Christian)
“A hexagram must be present to call forth a demon” and ” it is a very powerful tool to invoke Satan”.
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“To the sorcerer, the hexagram is a powerful tool to invoke Satan.” In fact, the word “hex” — as to put a “hex” or “curse” on people — comes from this word.
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If you examine the so-called “Star of David,” or hexagram, closely, you will discover something astonishing. It has six points, forms six equilateral triangles, and in its interior forms a six sided hexagon — thus it reveals the number of Satan’ antichrist beast, — 6 points, 6 triangles, and the 6 sides of the hexagram — 666 !!!
Revelation 2:9 - .... and I know the blasphemy of those who say they are Jews and are not, but are a synagogue of Satan.
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Jim Rickards: CDS Derivatives Financial WMD, Greek Default Armageddon Scenario, Gold Backed Currency ….
Click image for Jim Rickards interview page!
- This is an excellent interview on KingWorldNews.com of Jim Rickards. For those of you who want to understand what the derivatives market is all about, Jim Rickards does a marvellous job. CDS, Credit Default Swap, is essentially an insurance policy against default by countries. Jim explains how derivatives like CDS are being abused in an unregulated financial casino market. It is an opaque market which could cause the world financial market to go into meltdown. Derivatives are the financial weapons of mass destruction which could destroy the entire world economy.
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European Leaders Prepare For a Greek Default !
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- In truth, there is no “alternative” reserve currency to the US Dollar. For almost 40 years, there has been no circulating currency in the world worthy of the name because ALL are paper and ALL are backed by nothing more than the future promises of governments to make good on their debts.. That simply isn’t going to happen. It never has in past history. And for most of past history, currencies were either gold itself or paper that was lawfully redeemable in Gold. - Bill Buckler…Gold This Week…Saturday, June 4, 2011
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It’s taken almost two centuries for bankers to pull the wool over Americans’ eyes, but today you and I are working for intrinsically worthless paper that can be created by bureaucrats-created without sweat, without creative ability, without work, without anything but a decision by the Federal Reserve. This is the disease at the base of today’s monetary system. And like a cancer, it will spread until the system ultimately falls apart. This is the tragedy of the great lie. The great lie is that fiat paper represents a store of value, money of lasting wealth.” - Richard Russell
- - A Greek default is a foregone conclusion. It is a matter of when. It could start at any time. Are you prepared? Make sure you put your savings in real money: physical gold. Gold is real money for 5000+ years!
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European leaders prepare for a Greek default
By Graham Ruddick, and Philip Aldrick, http://www.telegraph.co.uk/
European leaders have admitted they are preparing for a Greek default as the eurozone debt crisis enters a pivotal week.
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Greek politicians will vote on a radical €28.4bn (£25.2bn) austerity package in the coming days that they must pass if the country is to receive the vital fifth tranche of a €110bn bail-out agreed last year. The outcome is expected to go down to the wire as the ruling party’s slim majority is pushed to the limit by the opposition’s refusal to support the deal, a wave of national strikes, and another round of public protests.
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Werner Faymann, the Austrian Chancellor, said on Sunday he “can’t rule out” a Greek default and Wolfgang Schaeuble, the German finance minister, revealed that Europe is preparing “for the worst”.
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“We are doing everything we can to prevent a perilous escalation for Europe but must at the same time be prepared for the worst,” Mr Schaeuble said. “If things turn out differently than everyone expects that would of course be a major breakdown. But even in 2008, the world was able to take coordinated action agai-nst a global and unpredictable financial market crisis.”
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If the austerity package is passed, Greece has been promised a second bail-out of up to €120bn. Private sector creditors are being urged to participate on a voluntary basis but evidence is mounting that their involvement will be less than the €30bn officials at the European Union and International Monetary Fund hope.
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German banks were reported over the weekend to be pushing for state guarantees in return for voluntarily “rolling over” the debt, but the demands were rejected by Chancellor Angela Merkel as they would increase the German taxpayers’ exposure. In Britain, the Treasury said there were “no specific proposals” for the UK private sector to be involved.
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President Nicolas Sarkozy indicated that French banks were prepared in principle to take part in the programme, but no details have been agreed.
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In a show of support for Europe, though, Chinese premier Wen Jiabao yesterday promised that China would continue to buy European sovereign debt. Noting that it had just agreed to buy Hungarian bonds, he said: “That is China lending a helping hand to Hungary at a time when that country is in difficulty. We will do the same thing for other European countries.
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“[Since the sovereign debt crisis,] China has actually increased the purchase of
government bonds of some European countries and we have not cut back on our euro holdings.”
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Greece’s deputy prime minister, Theodoros Pangalos, sought to shore up support, describing talk of Greece quitting the euro as “immense stupidity”. However, he warned that although he is optimistic about winning the first round of the austerity vote, he is more wary about securing approval for specific laws to enact fiscal reforms and privatise public companies. “That’s where we may have problems. I don’t know whether some of our members of parliament will vote against it. It’s possible,” he said.
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George Soros, the hedge fund manager famous for shorting Sterling in the 1990s, added that it is “probably inevitable” that a country will quit the euro. “There are fundamental flaws that need to be corrected,” he said. What Europe’s leaders are saying about the bail-out.
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George Soros: World on The Verge of An Economic Collapse!
George Soros. Committee of 300?
- George Soros (Committee of 300?) is correct in his assessment. He knows what is coming. He is an insider. The man who broke the Bank of England in 1992 by betting against the British Pound (and made $1 Billion) understands the currency market. The world is heading towards a global economic, financial and monetary collapse. If Greece defaults and triggers a collapse of the rest of the PIIGS, I believe the FedRes will go into QE3 immdiately. They will attempt to bailout everybody (ie. all their bankster buddies). Got gold yet?
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World on the verge of an economic collapse says Soros
http://www.arabianmoney.net/
Billionaire hedge fund giant George Soros told a panel discussion in Vienna that the world faced a monetary meltdown focused on Greece and that the crisis was developing in front of our eyes.
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‘We are on the verge of an economic collapse which starts, let’s say, in Greece, but it could easily spread, he said. ‘The financial system remains extremely vulnerable… ‘I think most of us actually agree that Europe’s crisis is actually centered around the euro. It’s a kind of financial crisis that is really developing. It’s foreseen. Most people realize it. It’s still developing. The authorities are actually engaged in buying time. And yet time is working against them.’
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No Plan B
Soros has warned before that the European authorities were doing the wrong thing in playing for time. There is no Plan B. So we have the Greek parliament this week debating an austerity program that will be painful and fail.
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It must fail because the cost of Greek debt is so high that the country will have to borrow to pay its interest payments. This is the death spiral of ever greater debts that inevitably ends in bankruptcy.
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Only the replacement of Greek debt with a new European bond issued at low interest rates can salvage this mess, although it risks being seen as a free passport to ever greater borrowings. There is no sign of this happening whatsoever. Hence Mr Soros is right to warn that Greece is the next Lehman in so many words. We are back to 2008 and on the brink of disaster.
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Will the Fed come over the hill as the seventh cavalry with a QE3 program? That is what optimistic goldbugs led by Jim Sinclair seem to think will happen. But the Fed would be taking a big risk in using its firepower in this way. For if it failed to work then its weapon cupboard would be empty.
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Graham Summers: All Eyes on Greece!
Greek Army Threatens Military Coup Sparking Fears Of Civil War Breaking Out All Across Europe!
- Looks like ‘Greece Lightning’ may strike. The world financial markets will be in great turmoil if the Greeks vote: NO. Will this be the event that bring the entire Eurozone house of cards down? Will it spread to the rest of the PIIGS? Will this spread to UK, Japan and finally to America? It is this Armageddon scenario which scares the living daylights out of all who understands. The wildcard appearing on the scene is China. Will the Illuminists allow China to interfere / intervene and build influence/power in the Eurozone? I don’t think so. It appears the Illuminists are not ready to pull the plug just yet. So, this will likely drag on for another quarter.
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Graham Summers: All Eyes on Greece
Phoenix Capital Research, http://www.zerohedge.com/ , 06/27/2011
….Tomorrow Greece’s parliament votes on whether or not to implement more “austerity”measures, also known as cutting social programs and raising taxes. Greek citizens, enraged that they keep picking up the tab for banks (both domestic and international) that made poor bets on Greece, will be implementing a series of strikes and riots.
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However, the facts remain the same. The world is awash in garbage debt. The only reason the banks and others haven’t taken the “hit” that they NEED to take is because they’ve bought out the politicians. Put another way, we are seeing clearly that the two primary principles of the West (capitalism and democracy) have both become jokes: alleged “capitalists” like the banks don’t ever actually see losses for mistakes and “democratically elected” leaders are in fact owned outright by the banks via donations/ bribes.
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Greece, while ultimately a small player in the global debt game, will set the course of the rest of the financial world this week. If Greece implements more austerity measures, that the “extend and pretend” game will continue a little longer, the Euro, stocks and commodities will rise, and the US Dollar will fall.
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However, if Greece doesn’t pass more austerity measures, indicating that the bailout/ stimulus nonsense has hit a wall, expect a serious “risk off” move in which stocks, commodities, and the Euro to take a hit, and investors rush into the US Dollar.
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However, this will not be a simple one-way street. The EU, and now China are both committed to helping the failed experiment of the Euro continue its death march. Yes, you read that correctly, China has committed to insuring that Eurozone debt holders don’t take a haircut. It’s even mentioned possibly buying European sovereign bonds outright.
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… for the entire article click here!
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Greek Parliament To Vote on Austerity Measures – Tuesday / Wednesday!
- All eyes are on Greece today and tomorrow. The ruling Socialists have a minute majority of 5. It could swing either way. If the Greek Parliament votes NO, expect fireworks in the world financial market. It does not appear that the Illuminists are ready to pull the plug. The western MSM has recently been playing down the contagion effect of a Greek default.
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RIP Euro, 1999-2011: Poisoned Chalice For Greeks Amid Rage & Anger!
Will not be missed !
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Societal and economics observer and commentator with an endtimes, future history perspective. Follow me at Twitter: socioecohistory
