Graham Summers: Two Possible Outcomes For The European End Game!

• The Eurozone endgame is in sight. What we are witnessing is the remaking of Europe into the 10 Horn Beast, Revived Roman Empire of biblical prophecy!
  -
  Two Possible Outcomes For the European End Game! 
  by Phoenix Capital Research, http://www.zerohedge.com/ 
  With the European End Game now in sight, the primary question that needs to be addressed is whether Europe will opt for a period of massive deflation, massive inflation, or deflation followed by inflation.
  -
  Indeed, with Europe’s entire banking system insolvent (even German banks need to be recapitalized to the tune of over $171 billion) the outcome for Europe is only one of two options:
  -
  1)   Massive debt restructuring
  2)   Monetization of everything/ hyperinflation
  -
  These are the realities facing Europe today (and eventually Japan and the US). Either way we are talking about the destruction of tens of trillions of Euros in wealth. The issue is which poison the European powers that be choose.
  -
  Personally, I believe we are going to see a combination of the two with deflation hitting all EU countries first and then serious inflation or hyperinflation hitting peripheral players and the PIIGS. In terms of how we get there, I believe that in the next 14 months, the following will occur.
  -
  1)   Germany and possibly France exit the Euro
  2)   ALL PIIGS defaulting on their debt
  3)   Potential hyperinflation in the PIIGS and peripheral EU countries
  -
  Regarding #1, we are already beginning to see hints of this development in the press:
  -
  DEATH OF THE EURO: SECRET PLOT TO WRECK THE CURRENCY
  Ministers are understood to be deeply concerned that French President Nicolas Sarkozy and Germany’s Chancellor Angela Merkel are secretly plotting to build a new, slimmed down Eurozone without Greece, Italy and other debt-ridden southern European nations.
  -
  Well-placed Brussels sources say Germany and France have already held private discussions on preparing for the disintegration of the Eurozone.
  http://www.express.co.uk/posts/view/283060 
  -
  FRENCH AND GERMANS EXPLORE IDEA OF SMALLER EURO ZONE
  German and French officials have discussed plans for a radical overhaul of the European Union that would involve setting up a more integrated and potentially smaller Euro zone, EU sources say.
  -
  “France and Germany have had intense consultations on this issue over the last months, at all levels,” a senior EU official in Brussels told Reuters, speaking on condition of anonymity because of the sensitivity of the discussions.
  -
  “We need to move very cautiously, but the truth is that we need to establish exactly the list of those who don’t want to be part of the club and those who simply cannot be part,” the official said.
  http://www.reuters.com/article/2011/11/09/us-Eurozone-future-sarkozy-idUSTRE7A85VV20111109 
  -
  With no one willing to foot the bill for the EFSF the markets are hoping Germany will step in and save the day. However, the German constitution forbids Germany from backing Euro-bonds.
  -
  … for more click here!

end