Financial Earthquake: Italy 10yr Bond Yield Soars Above 7.4%! Barclays Says Italy Is Finished: “Mathematically Beyond Point Of No Return”!
- Major financial earthquake is happening now. Italian 10 year government bond yield has soared from 6.7x% to 7.4x%. Stock markets across Europe and S&P futures are tanking! This is one terrifying collapse of the Italian bond market! The game is up for the Eurozone. It will be interesting to see what rabbit the politician snakes can pull out of their asses to rescue Italy. Otherwise, the dominoes will start falling and will cascade across Europe!
Barclays Says Italy Is Finished: “Mathematically Beyond Point Of No Return”!
by Tyler Durden, http://www.zerohedge.com/
… already someone has done the math on what the events in the past several days reveal for Italy. That someone is Barcalys, the math is not pretty, and the conclusion is that “Italy is now mathematically beyond point of no return.” Summary from Barclays Capital inst sales:
1) At this point, it seems Italy is now mathematically beyond point of no return
2) While reforms are necessary, in and of itself not be enough to prevent crisis
3) Reason? Simple math–growth and austerity not enough to offset cost of debt
4) On our ests, yields above 5.5% is inflection point where game is over
5) The danger:high rates reinforce stability concerns, leading to higher rates
6) and deeper conviction of a self sustaining credit event and eventual default
7) We think decisions at eurozone summit is step forward but EFSF not adequate
8.) Time has run out–policy reforms not sufficient to break neg mkt dynamics
9) Investors do not have the patience to wait for austerity, growth to work
10) And rate of change in negatives not enuff to offset slow drip of positives
11) Conclusion: We think ECB needs to step up to the plate, print and buy bonds
12) At the moment ECB remains unwilling to be lender last resort on scale needed
13) But frankly will have hand forced by market given massive systemic risk
Hint:Not Good.Sell EUR, Buy Gold
The broader referenced report can be found here.
- THE THIRD TEMPLE’S HOLY OF HOLIES: ISRAEL’S NUCLEAR WEAPONS
by Warner D. Farr, LTC, U.S. Army, http://www.au.af.mil/
… Israel’s involvement with nuclear technology starts at the founding of the state in 1948. Many talented Jewish scientists immigrated to Palestine during the thirties and forties, in particular, Ernst David Bergmann. … He pointed out that there was just one nuclear energy, not two, suggesting nuclear weapons were part of the plan.4
Regardless of the true types and numbers (see Appendix A) of Israeli nuclear weapons, they have developed a sophisticated system, by myriad methods, and are a nuclear power to be reckoned with. … Current Israeli President Ezer Weizman has stated “the nuclear issue is gaining momentum [and the] next war will not be conventional.148
- 2 nuclear states: America and Zionist ’666′ Israel are threatening to attack Iran over dubious intel. America is the only country to have used nuclear bombs against others. Both America and Israel are actively using Depleted Uranium rounds in illegal wars of aggression. Who is the aggressor here? Obviously, the Anglo-American-Zionist axis.
- The Illuminists are itching to start this Greater Middle East War to fulfil the Satanic World War 3 Plan. Unfortunately, too many Israeli and American sheeple are being led down this path, for their own destruction! The Christian and Jewish sheeple are largely deceived useful idiots much like the rest of the sheeple. Jesus Christ, blessed Son of God, never taught me to hate or kill anybody. Always to love, absolutely to love (even your enemies)!
Satanic World War 3 Plan
“The Third World War must be fomented by taking advantage of the differences caused by the “agentur” of the “Illuminati” between the political Zionists and the leaders of Islamic World. The war must be conducted in such a way that Islam (the Moslem Arabic World) and political Zionism (the State of Israel) mutually destroy each other. ….
- Zionist ’666′ Israel, the Satanic counterfeit, is ruled by genocidal and mentally ill maniacs! This is a war mongering state which pretends to be victim all the time. However, it is no longer fooling everybody. Masses of people including Christians are waking up to their scam!
The 13th Tribe of Khazaria! Ashkenazi Khazars Are Not The Jews of The Bible!
If almost 98% of JEWS we know today are NOT semitic, wouldn’t the term ANTI-SEMITIC be null and void? I made this video with 3 Jewish friends who admit they are not Semites!!!!
“Many [modern-day Jews] of whom have clamored to go back [to Palestine] NEVER had antecedents [physical ancestors] in that part of the world …. The OVERWHELMING majority of Jews are descendants from the converts of Khazaria and elsewhere who ADOPTED Judaism…. This VIEW of the NON-ethnicity of the largest portion of Jewry IS SUSTAINED by such prominent anthropologists as Ripley, Weissenberg, Hertz, Boas, Pittard, Fishberg, Mead and others. . “
- Dr. Alfred M. Lilienthal
“… Though many Jews are NOT of Semitic origin, we are the religious, spiritual, and national [but NOT genetic] descendants of those who first formed the early foundations of Judaism who were Semites”
- Rabbi Cyril A. Stanway in “Viewpoints,” Thursday, November 8, 1990, in the Sun-News (Las Cruces, New Mexico)
. .” these Eastern European, Yiddish-speaking Jews who form the Zionist group practically in toto [almost entirely], have NEITHER a geographic, historic NOR ethnic connection with either the Jews [Israelite Judahites] of the Old Testament OR the land known today as Palestine. “
- Jewish Dr. Benjamin H. Freedman, published by the National Economic Council, Inc. as “Council Letter No. 177 (October 15, 1947)
Modern Ashkenazi Jews are not the Jews of the Bible! God’s covenant was with Abraham and his biological descendents. Ashkenazi Jews are not semitic and their ancestors were never in Palestine. They are not the descendents of Abraham/Isaac/Israel. They have no right to stay in Palestine. What the Zionists are doing to the Palestinians is called: genocide and ethnic cleansing! Zionist ’666′ Israel is not the Israel of the Bible! It is a LIE!
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)
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.”
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.
According to the standard Jewish Encyclopedia 96% of all the Jews known to the world today are descendents of the Khazar tribes of Russia, Eastern Europe and western Mongolia.
The Bible specifically forbids the ill-treatment of people different from us ie: strangers. What Zionist ’666′ Israel does to the Palestinians is called: genocide and ethnic cleansing! Zionist ’666′ Israel is in total violation of God’s law!
“You shall neither mistreat a stranger nor oppress him, for you were strangers in the land of Egypt.”
“Also you shall not oppress a stranger, for you know the heart of a stranger, because you were strangers in the land of Egypt.”
‘And if a stranger dwells with you in your land, you shall not mistreat him.’
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.
‘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.’
You shall have the same law for the stranger and for one from your own country; for I am the LORD your God.
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.
The so-called Star of David is a Satanic symbol. Satanists and occult practitioners use it for calling Satan and demons!
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”.
“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.
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 !!!
- See also:
Lest We Forget–ISRAEL, Not Iran Has Been Calling To “Wipe Iran Off The Map” All Along!
Did Ahmadinejad Really Called for Israel To Be ‘Wiped Off the Map’?
Nuclear Threat is From Israel NOT Iran!
VANUNU’S PHOTOS OF DIMONA – 1985
Israel’s Nuclear Weapons Program
BBC: Israel’s Secret Weapon! The Secrets of Israel’s Nuclear Arsenal !
Iran’s Nuclear Facilities: The Facts! Who is Really Destabilizing the Middle East?
IRAN: Building a Nuclear Weapon? You’re Kidding, Right?
Washington And Israel – Partners In State Terror!
BBC: Israel’s Secret Weapon! The Secrets of Israel’s Nuclear Arsenal !
Scott Horton Debunking Propaganda Against Iran! Iran Is NOT A Nuclear Threat!
Propaganda War Against Iran Debunked in Less Than 6 Minutes! Iran Does Not Have A Nuclear Weapons Progam!
Amiri Told CIA Iran Has No Nuclear Bomb Program!
Iran Scientist: CIA Offered Me $50m To Lie About Nuclear Secrets!
WMD Claims Were Lies Says Former Envoy!
Dubious Intelligence on Iran’s Nuclear Program Used to Justify UN Sanctions and US War Threats!
Iran vs Israel: What The Media Wants You To Forget!
Israel And America Declare Total War on Persia!
Ex-CIA Warns US ‘Dangerously Wrong’ on Iran!
Professor Chossudovsky: Absurdities and Atrocities – The Threat of World War III !
Nima Shirazi: Israel Always Needs an Existential Threat to Survive!
The Absurd US Stance on Israel’s Nukes!
Zionist Israel’s Psychological Ops Against Iran! Laying The Ground Work For A Nuclear False Flag Attack In America To Blame Iran?
Iran’s ‘Global Security Threat’ BS! Who Is The Real Threat To World Peace?
IRAN: Building a Nuclear Weapon? You’re Kidding, Right?
Towards a World War III Scenario? The Role of Israel in Triggering an Attack on Iran! Part II The Military Road Map!
Chossudovsky: Targeting Iran, Is the US Administration Planning a Nuclear Holocaust?
History of The “Six Million” Myth!
Bolshevik Jews Plotted The Ukrainian Holocaust!
The Jewish Genocide of 1.4+ Million Armenian Christians!
The Bolshevik Jews Behind The Deaths of 40+ Millions During The Communist Revolution!
YNET Israel News: Stalin’s Jews. We Mustn’t Forget That Some of Greatest Murderers of Modern Times Were Jewish!
Bolshevik Jews Plotted The Ukrainian Holocaust!
Mark Weber: The Jewish Role in the Bolshevik Revolution and Russia’s Early Soviet Regime! During Which 20+ Million Russians Died !
The Hidden History of Jewish Bolshevism & Freemasonry! How Masonic Wall Street Banksters Financed The Communist Revolution Which Killed Over 100 Million People!
Mark Weber: Wilhelm Höttl And The Elusive ‘Six Million’! Part 2 – How Many Jews Died?
Ashkenazi Khazars (90+% of modern Jewry) are not the Jews of the Bible!
Benjamin Freedman: Ashkenazi Khazars Self Style “Jews” Are Not Semitic And Not The Biological Descendents of The 12 Tribes of Israel !
The 2002 Jenin Holocaust of Palestinians By Zionist ’666′ Israel !
Deir Yassin Remembered ! The 1948 Holocaust of Palestinians by Zionist ’666′ Israel !
Jewish Historian Ilan Pappe: History of Zionism – Genocide And Ethnic Cleansing of Palestine!
Jewish Historian Teddy Katz: 1948 Tantura Massacre of Palestinians! Genocide And Ethnic Cleansing!
Zionist ’666′ Israeli Apartheid and The Nakba!
Forget Deir Yassin: Its Victims Were “Unworthy”! The Holocaust of Palestinians by Zionist ’666′ Israel !
Holocaustianity: Zionism’s Big Lie!
Texe Marrs: Conspiracy of The 6 Pointed Star!
Repost: Holocaust, Hate Speech & Were the Germans so Stupid?
Jack Bernstein: The Life of an American Jew in Racist Marxist Israel !
Peace, Propaganda & The Promised Land ! US Media And The Israeli-Palestinian Conflict!
’666′ Star of David, Satanic Curse / Hex(agram) On Humanity! Occult Symbol.
The Historical Truth About Auschwitz!
Jewish Estimate Sees Number of Holocaust Dead Drop To 2.8 Million!
Fred Leuchter: The End of The Auschwitz Gas Chambers Myth!
Fred A. Leuchter, Jr.: Inside the Auschwitz ‘Gas Chambers’!
The Rudolf Report: Expert Report on Chemical and Technical Aspects of the ‘Gas Chambers’ of Auschwitz!
Barbara Kulaszka: What is ‘Holocaust Denial’?
How Many Died At Auschwitz?
How the Illuminati Manipulates Jews!
Hitler Was A Rothschild Jew?!
Norman Finkelstein on Zionism And The Holocaust Industry!
Holocaust Denier Death, Mossad Linked. How Many Jews Died in the German Concentration Camps?
Gideon Levy: Ethnic Cleansing of Palestinians, Or, Democratic Israel At Work?!
Israel Admits It Covertly Canceled Residency Status of 140,000 Palestinians!
Flashback 1990: Holocaust Expert Rejects Charge That Nazis Made Soap From Jews!
- “Let me control a peoples currency and I care not who makes their laws.” – Meyer Nathaniel Rothschild in a speech to a gathering of world bankers February 12, 1912. The following year, the USA subscribed to the ‘services’ of the newly incorporated Federal Reserve, headed by Mr. Rothschild
-“He who controls the money supply of a nation controls the nation.”- James A. Garfield
The financial MSM is but a mouthpiece for the Illuminist banksters. It is always via subtlety and deception, they promote their true agenda. Illuminist banksters create the crisis and having gotten a reaction from the sheeple, they are subtlety selling their pre-planned solution! “What the Eurozone need is a fiscal union!” ie. a United States of Europe ruled by an Illuminist central bank! The ‘fiscal union’ talk is but a code phrase for the full takeover by Illuminist banksters of the Eurozone! “Give it to us or things will get worse!”
Note that the Germans are the major obstacle to the Illuminist wet dream! The Germans are better off without the Euro and EU parliament!
ECB stymied on debt crisis without fiscal union
By Ambrose Evans-Pritchard, http://www.telegraph.co.uk/
Germany’s top banker has vehemently rejected demands from David Cameron and other world leaders for drastic action by the European Central Bank to stop the eurozone crisis spiralling out of control.
Jens Weidmann, head of the Bundesbank and the ECB’s dominant governor, said that any move to leverage Europe’s €440bn rescue fund through central bank financing would be a “clear violation” of the ECB’s legal mandate. He said Article 123 of the EU Treaty imposed a legal “prohibition on monetary financing”, implying that the ECB cannot attempt to shore up the debt markets of Italy and Spain for covert fiscal support.
Mr Weidmann said Germany learned the bitter lesson under the Weimar Republic that funding public debt “via the money printing press” leads to hyperinflation and disaster.
The comments came a day after Britain’s Prime Minister said it was “difficult to understand” why the ECB was not “doing more” to halt contagion, a view shared in Washington, Beijing and Tokyo.
Asia’s creditor states are scornful of requests to help rescue Europe when the ECB itself refuses to take on the role of lender of last resort. However, there is some dispute over whether the ECB is technically able to take on that role even if it dares bend the law any further. “The ECB is not indemnified by a eurozone treasury, because there is no such treasury,” said Julian Callow from Barclays Capital.
The Bank of England and the US Federal Reserve have explicit guarantees from national treasuries that any losses stemming from bond purchases will be compensated, giving them the “credibility halo” of sovereign states. The picture is entirely different in Euroland where the ECB has very little money of its own and shares key powers with the national central banks. There is no fiscal union to back up monetary union, and no sovereign entity underpinning the project. There is instead a Babel of conflicting sovereign voices.
… for more click here!
- Greece by itself will not bring down the Eurozone. It is the contagion effect that everyone fears. The endgame of the Illuminati is a New Monetary-Financial System and Luciferian New World Order. To persuade the sheeple to adopt/accept their One World Currency, they intend to crash the current monetary order. If all the sheeple are rich, well fed and fully employed it is unlikely they will surrender their national sovereignties in favour of this coming New World Order.
- The Germans pose the most resistance, at the moment, to a new monetary order. The Germans will not accept the dismemberment of their country and economic sovereignty in favour of a One World Currency. The Illuminists, therefore, will burden Germany (and France) with an insurmountable mountain of debts to break their resistance! The bailouts (a misnomer, it is actually more debts at exorbitant interest rates) are largely financed by France and Germany. When the entire Eurozone system comes down, Germany and France will be in dire straits like Greece! (emphasis mine)
ZeroHedge: Former Bundesbank President Weber Warns Germany Will Be On The European Bail Out Hook For Up To 314% Of Its GDP
… As quoted by Bloomberg, “Former Bundesbank President Axel Weber said the plan to leverage the European Financial Stability Facility increases the likelihood that tax payers have to step in, Sueddeutsche Zeitung reported. Germany’s public debt would rise to 135 percent of gross domestic product if Italy and Spain were to tap the EFSF financial backstop, the newspaper cited Weber as saying in a speech in Frankfurt. As the sole guarantor to the EFSF, Germany could end up with a debt of 314 percent of GDP in an extreme case, Weber said.”
Once Greece goes, the whole euro project will unravel !
By Jeremy Warner, http://www.telegraph.co.uk/
Robert Jenkins, a member of the Bank of England’s Financial Policy Committee, does a good job in setting out the potentially disastrous economic and financial consequences for Greece and the wider European Union if Greece is allowed to default via exiting the eurozone in this morning’s FT (£).
That possibility was admitted for the first time by eurozone leaders at the Cannes summit last week. Obey or leave the club was their message. But, as Mr Jenkins explains, the consequences, not just for Greece but everyone else in the eurozone, would be potentially catastrophic. Once Greece goes, the other PIGS would sit there like ducks in a row, waiting to be picked off one by one, or perhaps all in one go.
However, there are two problems with the implication of his analysis, which is that Greece must be restructured within the single currency, since the economic consequences for all of it exiting are too awful to contemplate.
One is that the realpolitik of the eurozone is preventing the application of sensible policy to ease the plight of the periphery and allow the resumption of reasonable economic growth. It cannot be right to accept inappropriate economic policy simply because you fear the alternative might be even worse.
The other, related, criticism is that though the short term consequences of a break-up may be extraordinarily traumatic, the long term costs of staying together look pretty unappetising too.
Far from promoting growth and political solidarity, which is what the single currency was supposed to do, the euro is in fact achieving the opposite effect, by condemning the eurozone to long term recession and now extreme political infighting. Again, it cannot be right to persist with something which is achieving the opposite of what it was meant to simply because the alternatives are thought to be worse.
By suggesting that there will be no support for Italian bond markets until Italy reforms itself, the European Central Bank is playing god in a way which is almost certain to end badly. Whatever Silvio Berlusconi’s faults, which are undoubtedly many, since when was it thought acceptable for the central bank to effectively decide on what the government in Italy should be?
The now repeated imposition of supra-national policy by an unelected elite on the citizens of the eurozone has got to be ultimately unusustainable. The dangers of extreme populist backlash followed in short order by Balkanisation are all too obvious. If the euro goes, so does the European Union, Angela Merkel keeps saying. Actually, it is the other way around. Persistence with the euro is straining the whole EU to breaking point.
- Sarkozy and Merkel and both Illuminist puppets. They will do as they are told or will be disposed of. The ECB do not have a mandate to print money, so they need to get the bailout funds from the 17 member Eurozone states. This also means that the longer the crisis drags on, the more funds will be needed and the more debts will be placed on the shoulders of France and Germany (the 2 largest contributors). Merkozy may talk tough but in reality they are screwing their own countries by continuing with this bailout charade. You cannot solve a debt problem with more debts!
Tough-talking Germany takes the eurozone to the brink of a break-up!
By Liam Halligan, http://www.telegraph.co.uk/
I ended last Sunday’s column by predicting that the latest eurozone bail-out would unravel within two weeks. Amid the post-deal euphoria, this statement raised a few eyebrows.
As it turned out, though, far from being alarmist, I was actually too optimistic. Within three days, the much-trumpeted Franco-German “complete strategy” solution, having previously caused share prices to surge, collapsed in a heap. No one should be surprised. The failure of last weekend’s agreement was inevitable – not least because there was no agreement.
The “50pc haircut” that private sector holders of Greek sovereign bonds “voluntarily accepted” was a myth. There was no resolution in terms of coupons, maturities or participation ratios – as was clear to anyone who looked beyond the headlines. Presented as a victory for courageous politicians over nasty bankers, the Greek bond-holders’ deal, the centre-piece of last weekend’s entire rescue-plan, has been exposed as a tawdry publicity stunt.
Precisely from whom the newly “leveraged” European Financial Stability Facility will be able to raise borrowed funds, and on whose collateral, was also clouded in mystery last weekend, and still is. The possibility of China stumping up cash now looks even less likely than before. Around a fifth of the country’s massive $3,200bn (£1,997bn) reserve pool is already euro-denominated and Beijing’s earlier disastrous investments in various Wall Street banks attracted bitter internal criticism. Klaus Regling, the chief of the eurozone’s new bail-out fund, was received courteously enough in the Chinese capital last week. But it was always doubtful that a country with no welfare state would rescue nations whose welfare states are bloated and out of control.
The major reason that this latest single currency bail-out has failed, though, is that Germany is still not on board. The initial positive market reaction was based on the notion that a eurozone-wide guarantee of bank bonds and sovereign debts had been secured. That’s what was being claimed by stock-brokers and the other sell-side hired-gun experts who dominate the airwaves.
… for more click here!
- Italian 10yr government bond yield have skyrocketed in the past week. It easily surged past 6.00%, the critical level where Greece, Portugal … yields surged higher. It looks like 10yr yields will hit 7.00% within a week. Alot of people are of the opinion that at 7.00% it is game over for Italy.
- Did all the bond buying by the ECB helped? Obviously not. Their recent threats have made things worse! (ECB Issues Ultimatum To Italy, Threatens To Halt Bond Purchases). The objectives of the Illuminists are not to make things better. They want to build an even greater debt mountain and lay it on the sheeple. They want France and Germany to go bust. They want things to get so out of hand that the sheeple will beg for a savior to save them. Things will get so bad that the sheeple will beg for their One World Currency. Order Out of Chaos!
Italy borrowing rates hit record after budget vote!
Italy’s cost of borrowing has risen to a new record, after Prime Minister Silvio Berlusconi only managed to win a budget vote because the opposition abstained. The yield on Italian 10-year government bonds rose to 6.77%, the highest since the euro was founded in 1999.
Investors fear that the eurozone’s third-biggest economy could become the next victim of the debt crisis. Later, Mr Berlusconi confirmed that he plans to resign after passing reforms. He won the budget vote, receiving 308 votes out of 630, with 321 abstentions and no votes against.
“The government no longer has a majority in this chamber,” Pier Luigi Bersani, the leader of the main opposition party, said after the vote. To Mr Berlusconi, he added: “Hand in your resignation.”
The euro rose against the dollar following the announcement of Mr Berlusconi’s plans to resign, up 0.5% to $1.384. Italy’s benchmark 10-year debt has been rising sharply and the yield is now past the point that forced other eurozone countries to seek a bailout. Short-term borrowing costs have been rising at an even faster rate. Italy has to roll over more than 360bn euros (£309bn) of debt in 2012. The country’s cost of borrowing is much higher than the 1.8% interest rate currently faced by Germany.
… for more click here!
Deutsche Bank on Europe: ‘It’s Not Inconceivable That We Could Be In Full Crisis Mode By The End Of This Week’!
- The Eurozone sovereign debt crisis is far from over. It appears the Illuminists are not ready to pull the plug yet. Perhaps 2Q2012? They are trying to bail out everybody ie. create even more debts and lay in on the sheeple. It is a foregone conclusion that the PIIGS will go under. So, I believe the Illuminists are really trying to bankrupt the 2 lynchpins of the Eurozone: France and Germany! Both countries will go bust undoubtedly.
Deutsche Bank on Europe: ‘It’s Not Inconceivable That We Could Be In Full Crisis Mode By The End Of This Week’
by Joe Weisenthal, http://www.businessinsider.com/
Such is the severity of the situation in Italy. Here’s Deutsche Bank’s Colin Tan talking about the same thing that everyone else is talking about:
It’s not inconceivable that we could be in full crisis mode by the end of this week. The situation with Italy feels increasingly like one that has little chance of materially improving until some extreme pressure is put on someone to act. It may not come to a head this week but the signs are not good that we can avoid an extreme situation emerging soon.
The big problem: Berlusconi doesn’t seem like he’s in an urgent mood to make reforms, the ECB isn’t doing much, and China and Brazil have dropped out of the picture. Hence we could get a big bustup:
For us there is no obvious near-term solution other than a stress event which prompts action. Maybe the EU authorities will use the experience learnt from the Greece situation last week that a hard-line response is the only way to force countries to act in the way they want. It is a big risk but at the moment the weaker countries seem to still want the Euro enough that the ECB and Germans could play hard ball and get what they want if they are prepared to take the risk. Indeed ECB Governing Council member Yves Mersch fired a warning over the weekend saying that the ECB often discusses the possibility of ending the purchase of Italian government bonds and could if it concludes Italy is not adopting promised reforms. Such talk will not encourage private capital into Italy meaning that the ECB may need to intervene more to have the required impact.