Europe is “Heading for an Almighty Crash”! Italian Unity Fails To Stem Market Fears Over Eurozone!
The Eurozone will crash and burn sooner or later!
- I can’t tell you when exactly the Eurozone will collapse! It is coming and will like occur in 2012. There will be a global economic, financial and monetary collapse! Got physical gold yet?
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Europe is “heading for an almighty crash”!
By Louise Armitstead,
http://www.telegraph.co.uk/
Political co-operation in Rome failed to prevent Italian borrowing costs being pushed into the “bail-out zone” for the second time in a week, prompting warnings Europe is “heading for an almighty crash”.
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Mario Monti secured agreement from Italy’s opposition politicians to form an emergency government – but rather than pacifying European markets as expected, Italy’s bond yields were pushed over 7pc while those of France, Spain, Belgium and Austria hit fresh highs.
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Economists at Schroders warned that Rome’s borrowing costs were “unsustainable” even with the help of the European Central Bank (ECB). “With no solution to Italy’s problems in sight… we are heading for an almighty crash,” they said in a note.
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Britain benefited as investors bought gilts, pushing UK borrowing costs down close to record lows. But the damage of the crisis to the UK economy is expected to be made clear on Wednesday with the Bank of England drastically cutting the UK’s growth forecast for this year and next year. Economists expect the Bank to use its quarterly inflation report to cut its prediction of 1.5pc growth for 2011 down to 1pc; and the 2.1pc forecast for 2012 to be as much as halved.
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George Osborne also warned that the UK is not immune from the crisis. In a letter to Bank of England Governor Sir Mervyn King the Chancellor said: “The threat to the UK economy from the crisis in the eurozone is very serious. The eurozone has the financial capacity to restore stability. So the institutions and leaders of the eurozone need to act without delay.”
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Alan Krueger, chairman of President Barack Obama’s Council of Economic Advisers also called for action. But European leaders seemed intent on digging in. Yves Mersch, a governing council member of the ECB, said that monetising government debt was “tantamount to inflation” and “not feasible”, adding that the ECB should not be made the “lender of last resort for governments” but rather states should live up to own responsibilities.
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… for more click here!
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Ron Paul: European Debt Crisis Threatens The Dollar!
Vote Ron Paul for President !
- The Illuminist bankster owned MSM is trying to marginalize Ron Paul. He has the least amount of coverage despite widespread grassroot support. They fear him because of his message: Abolish the Federal Reserve!
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European Debt Crisis Threatens the Dollar!
by Ron Paul,
http://paul.house.gov/
The global economic situation is becoming more dire every day. Approximately half of all US banks have significant exposure to the debt crisis in Europe. Much more dangerous for the US taxpayer is the dollar’s status as reserve currency for the world, and the US Federal Reserve’s status as the lender of last resort. As we’ve learned in recent disclosures, this has not only benefitted companies like AIG, the auto industry and various US banks, but multiple foreign central banks as they have run into trouble. Nothing has been solved, however, by offering up the productivity of Americans as a sacrificial lamb. Greece is set to be the first domino to fall in the string of European economies at risk. Rather than learning from Greece’s terrible example of an over-consuming public sector and drowning private sector, what is more likely from our politicians is an eventual bailout of European investors.
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The US has a relatively small exposure to overwhelmed Greek banks, but much larger economies in Europe are set to follow and that will have serious implications for US banks. Greece is technically small enough to bail out. Italy is not. Germany is not. France is not. It is estimated that US banks have over a trillion dollars tied up in at-risk German and French banks. Because the urge to paper over the debt with more credit is so strong, the collapse of the Euro is imminent. Will the Fed be held responsible if the Euro brings the US dollar down with it?
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The most disingenuous aspect of the narrative about the European sovereign debt crisis is that entire economies will collapse if more resources are not bilked from productive people around the world. This is untrue. Tough times are coming for the banks, to be sure, but free people always find a way back to prosperity if the politicians leave them alone. Communities within Greece are coming together and forming barter systems because they know the Euro is becoming unstable. Greeks are learning how to engage in commerce with each other, without the use of fiat currency controlled by central banks. In other words, they are rediscovering what money really is, and they are trading with each other in ways that cannot be controlled, manipulated, squandered, inflated away and generally ruined by corrupt bankers and the politicians that enable them. Farmers will still grow food, mechanics will still fix cars, people will still make things and exchange them with each other. No banker, no politician can stop that by destroying one medium of exchange. People will find or create another medium of exchange.
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Unfortunately when politicians try to monopolize currency with legal tender laws, the people find it harder and harder to survive the inflation and taxation to which they are subjected. Bankers should take their dreaded haircut rather than making innocent people pay for their mistakes. The losses should be limited and liquidated, rather than perpetuated and rewarded. This is the only way we can recover.
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Government debt is often considered rock solid because it is backed by a government’s ability to forcibly extract interest payments out of the public. The public is increasingly unwilling to be bilked to make bankers whole. The riots and the violence in Greece should tell us something about the sustainability of this system.
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If we continue to bail out banks and bankers so they can continue to lose money, if we cavalierly put this burden on the taxpayer, it is all too predictable what will happen here.
end
Italian Bond Yields Climb To 7%, French Debt Slides as Bond Rout Deepens!
10yr bond yields are rising at alarming pace across the Eurozone!
- Italian 10yr government bond yield has risen above 7.00% again, despite ECB intervention! The contagion has spread. 10 yr bond yields are rising in major Eurozone countries. From the above chart you can see that Austria and Belgium yields are also rising and close to or exceeding year highs! Spanish 10 yr bond yields have now exceeded the 6.00% mark, at 6.34%. Alarm bells are ringing loud and clear in the Eurozone! The Eurozone will collapse sooner or later!
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Italian Bond Yields Climb to 7%, French Debt Slides as Bond Rout Deepens!
By Paul Dobson,
http://www.bloomberg.com/
Italian bonds led a slump in euro-area government debt as investors abandoned all but the safest assets amid rising borrowing costs at auctions and concern the region’s financial woes are deepening.
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“It’s a confidence crisis,” said Elwin de Groot, a senior market economist at Rabobank Nederland in Utrecht, Netherlands.“Investors have no confidence that the euro zone can solve its problems. They will look for the most safe place they can store their money, which is Germany. Everything else is suffering.”
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German two-year rates dropped below 0.3 percent for the first time, while the extra yield investors demand to hold 10-year bonds from France, Belgium, Spain and Austria instead of bunds all climbed to euro-era records. Italy’s 10-year yield rose above 7 percent as prime minister-in-waiting Mario Montiwrapped up talks on forming a new government. Spain and Belgium sold less than the maximum target of bills at auctions today as financing costs increased.
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Italy’s 10-year yield climbed 37 basis points, or 0.37 percentage point, to 7.07 percent at 5 p.m. in London. It rose to a euro-era record 7.48 percent on Nov. 9. The 4.75 percent bond due September 2021 slid 2.285, or 22.85 euros per 1,000-euro face amount ($1,351), to 84.57.
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The spread investors demand to hold 10-year French debt instead of German bunds widened 26 basis points, the most since the euro started in 1999, based on closing-market rates, to 190 basis points. It touched 191 basis points, also the most since the common currency was introduced. The yield on the 10-year bund fell one basis point to 1.77 percent, less than half France’s 3.67 percent rate.
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… for more click here!
Italian 10yr govt bond yield soars!
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Germany Votes To Allow Exit From Euro!
RIP: Rest In Pieces
- The Eurozone monetary union is unworkable. It is creating even greater stress among member nations instead of unifying them. It is causing depression in the PIIGS and ultimately will drag France and Germany into bankruptcy. Capital flight out of the PIIGS are accelerating and collapse is certain! The sane solution is to allow countries to exit the Eurozone and go back to their own currency. This will allow countries like Greece to devalue their drachma, reset their economy and return to growth. There will be pain but it will be alot better than continuing in the Euro!
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Germany Votes To Allow Exit From Euro!
by Heather Struck,
http://www.forbes.com/
Update: Chancellor Angela Merkel’s leading party in Germany voted for a measure that would offer euro states a way to voluntarily leave the euro zone currency union, according to a report from Bloomberg.
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A race to save the euro has seemed to become a race to save a modern definition of Europe, as many agree now that a breakdown of the currency would result in economic seismic shifts so great that they would pull apart the progress that many nation-states (i.e. Germany) have made in the last decade.
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German Chancellor Angela Merkel told members of her party Monday that “Europe is in one of its toughest, perhaps the toughest hour since World War Two,” according to a Reuters report. “If the euro fails then Europe fails, and we want to prevent and we will prevent this, this is what we are working for, because it is such a huge historical project,” Merkel said in the east German city of Leipzig.
end
Pepe Escobar: Pentagon Wants War Forever!
- See also: More Than 1000 American Military Bases Around The World !
- - 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.
- - After the insiders have established the United Socialist States of America (in fact if not in name), the next step is the Great Merger of all nations of the world into a dictatorial world government. … The Insiders’ code word for the world superstate is “new world order,” a phrase often used by Richard Nixon. The Council on Foreign Relations states in its Study No. 7: “The U.S. must strive to: A. BUILD A NEW INTERNATIONAL ORDER.” … A world government has always been the object of the Communists.
Gary Allen (1936-1986) American journalist. Source: None Dare Call it Conspiracy, p. 7 (1972)
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“The New World Order under the UN will reduce everything to one common denominator. The system will be made up of a single currency, single centrally financed government, single tax system, single language, single political system, single world court of justice, single state religion…Each person will have a registered number, without which he will not be allowed to buy or sell; and there will be one universal world church. Anyone who refuses to take part in the universal system will have no right to exist.”
Assessment of the New World by Dr. Kurk E. Koch
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“We believe the picture painters of the mass media are artfully creating landscapes for us which deliberately hide the real picture. In this book we will show you how to discover the “hidden picture” in the landscapes presented to us daily through newspapers, radio and television.”
Gary Allen, None Dare Call it Conspiracy, p. 7 (1972)
US: Money only for wars and banksters!
The US 'defence' budget is easily above US$1Tillion for 2011 when all the discretionary spending are added !
end
Israeli Attack on Iran Would Harm US Interests!
Revelation 2:9 - .... and I know the blasphemy of those who say they are Jews and are not, but are a synagogue of Satan.
About
Societal and economics observer and commentator with an endtimes, future history perspective. Follow me at Twitter: socioecohistory
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