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25 Signs That The Smart Money Has Completely Written Off Southern Europe

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When it comes to the financial world, it is important to listen to what the “smart money” is saying, but it is much more important to watch what the “smart money” is actually doing.  The ultra-wealthy and those that run the biggest financial institutions on the planet are far more “connected” to what is really going on in financial circles behind the scenes than you and I could ever hope to be.  But if we watch their behavior we can get clues as to what they think is about to happen.  As is the case with so many other things, if you want to figure out what is really going on in Europe, just follow the money.  And right now, money is rapidly flowing out of southern Europe and into northern Europe.  In fact, some large corporations are now pulling the money that they make in Greece during the day out of the country every single night.  It is becoming increasingly clear that the upper crust of the financial world considers a Greek exit from the euro to be “inevitable” and that it also considers much of the rest of southern Europe to be a lost cause.  Unfortunately, a financial collapse across southern Europe is also likely to trigger another devastating global recession.

Even though all the warning signs were there, very few people actually expected to see the kind of financial crisis that we saw back in 2008.

But it happened.

Now very few people actually expect another “Lehman Brothers moment” to happen in Europe although the warning signs are all around us.

Sadly, most people never want to believe the truth until it is too late.

The following are 25 signs that the smart money has completely written off southern Europe….

#1 Lloyd’s of London is publicly admitting that it is rapidly making preparations for a collapse of the eurozone.

#2 According to the New York Times, top global law firms are advising their clients to withdraw all cash and all other liquid assets from Greece….

So their advice is blunt: Remove cash and other liquid assets from Greece and prepare to take a short-term hit on any other investments.

“My personal view is that it is irrational for anyone, whether a corporation or an individual, to be leaving money in Greek financial institutions, so long as there is a credible prospect of a euro zone exit,” said Ian M. Clark, a partner in London for White & Case, a global law firm that has a team of 10 lawyers focusing on the issue.

#3 According to CNBC, large numbers of wealthy Europeans have been moving their money from banks in southern Europe to banks in northern Europe….

Financial advisers and private bankers whose clients have accounts too large to be covered by a Europe-wide guarantee on deposits up to 100,000 euros ($125,000), are reporting a “bank run by wire transfer” that has picked up during May.

Much of this money has headed north to banks in London, Frankfurt and Geneva, financial advisers say.

“It’s been an ongoing process but it certainly picked up pace a couple of weeks ago We believe there is a continuous 2-3 year bank run by wire transfer,” said Lorne Baring, managing director at B Capital, a Geneva-based pan European wealth management firm.

#4 The President of the Federal Reserve Bank of Philadelphia, Charles Plosser, says that the Federal Reserve is advising money market funds to reduce their exposure to Europe….

The Fed and regulators have tried to stress to money market funds, for example, to reduce their exposure to European financial institutions.

#5 The yield on 10-year Spanish bonds is rapidly moving toward the very important 7 percent level.

#6 Many multinational corporations that operate in Greece are now pulling their funds out of the country on a nightly basis.

#7 Juergen Fitschen, the co-CEO of Deutsche Bank, has publicly proclaimed that Greece is a “failed state“.

#8 The head of the Swiss central bank has admitted that Switzerland is developing an “action plan” for how it will handle the collapse of the eurozone.

#9 The European Commission has urged all member states to develop contingency plans for a Greek exit from the euro….

Last week, the European Commission said that it has asked member states to make plans to deal with a potential Greek exit, ahead of a second round of Greek elections on 17 June.

#10 PIMCO CEO Mohamed El-Erian says that a Greek exit from the euro “is probably inevitable“.

#11 Spanish stocks continue to drop like a rock.

#12 The percentage of bad loans on the books of Spanish banks has reached an 18 year high.

#13 Late on Friday, the Spanish government announced that banking giant Bankia is going to need a 19 billion euro bailout.

#14 Standard & Poor’s downgraded the credit ratings of five more Spanish banks to junk status on Friday.

#15 Moody’s downgraded the credit ratings of 16 Spanish banks back on May 17th.

#16 According to the Telegraph, “struggling European banks could be seized and controlled by Brussels as part of secret plans being drawn up”.

#17 The head of equity strategy at Societe Generale, Claudia Panseri, is warning that European stocks could fall by as much as 50 percent if Greece leaves the euro.

#18 Economist Marc Faber is warning that there is now a “100% chance” that there will be another global recession.

#19 There seems to be an increasing attempt to pin the problems that Greece is now experiencing on the behavior of Greek citizens.  The following are some of the shocking things that the head of the IMF, Christine Lagarde, said in a recent interview….

“Do you know what? As far as Athens is concerned, I also think about all those people who are trying to escape tax all the time. All these people in Greece who are trying to escape tax.”

Even more than she thinks about all those now struggling to survive without jobs or public services? “I think of them equally. And I think they should also help themselves collectively.” How? “By all paying their tax. Yeah.”

It sounds as if she’s essentially saying to the Greeks and others in Europe, you’ve had a nice time and now it’s payback time.

“That’s right.” She nods calmly. “Yeah.”

And what about their children, who can’t conceivably be held responsible? “Well, hey, parents are responsible, right? So parents have to pay their tax.”

#20 According to the Telegraph, an unidentified member of Angela Merkel’s cabinet has stated that Germany simply will not “pour money into a bottomless pit”.

#21 This week the Bank of England is holding a “secret summit” of global central bankers to address the European financial crisis….

The summit will be dominated by central bankers including the host, Sir Mervyn King, Governor of the Bank of England. Mario Draghi, president of the European Central Bank, and Zhou Xiaochuan, governor of the People’s Bank of China, have been invited.

#22 According to Zero Hedge, a major German newspaper is reporting that a Greek exit from the eurozone is a “done deal”….

The Greece-exit is a done deal: According to the German economic news from financial circles EU and the ECB have abandoned the motherland of democracy as a euro member. The reason is, interestingly, not in the upcoming elections – these are basically become irrelevant. The EU has finally realized that the Greeks have not met any agreements and will not continue not to meet them. A banker: “We helped with the Toika. The help of the troika was tied to conditions. Greece has fulfilled none of the conditions, and has been for months now.”

#23 According to CNBC, preparations are quietly being made to print up and distribute new drachmas should the need arise….

British banknote printer De La Rue is drawing up plans to print new drachma notes in the event of a Greek euro exit, according to an industry source with knowledge of the matter.

The world’s biggest security firm G4S expects to be involved in distributing notes around the country.

#24 Citibank’s chief economist Willem Buiter is warning that any new currency issued by the Greek government could “immediately fall by 60 percent“.

#25 Reuters is reporting that a planning memo exists that suggests that Greece could receive as much as 50 billion euros to “ease its path” out of the eurozone.

If Greece does leave the eurozone, the cost to the rest of Europe is going to be astronomical.  The following is from a recent article by John Mauldin….

The debate among very knowledgeable individuals and institutions as to the future of Europe is intense. There are those who argue that the cost of breaking up the eurozone, even allowing Greece to leave, is so high that it will not be permitted to happen. Estimates abound of a cost of €1 trillion to European banks, governments, and businesses, just for the exit of Greece. And that does not include the cost of contagion as the markets wonder who is next. Keeping Spanish and Italian interest-rate costs at levels that can be sustained will cost even more trillions, as not just government debt but the entire banking system is at stake. Not to mention the pension and insurance funds. If the cost of Greece leaving is €1 trillion, then who can guess the cost of Spain or Italy?

As I have written about previously, a Greek exit from the euro would cause the “bank jogs” that are already happening in Spain and Italy to accelerate.

The problem in Europe is not just government debt.  The truth is that the entire European financial system is in danger of melting down.

Unfortunately, there are no more grand solutions on the horizon and so things are going to continue to get worse for Europe.

As I have talked about so many times, the next wave of the economic collapse is going to start in Europe, but it is going to deeply affect the entire globe.

During the next major economic downturn, the official unemployment rate in the United States will rise well up into the double digits.

Once that happens, perhaps many more Americans will finally figure out that they should have been paying much more attention to what was taking place in Europe.

  • erheault

    Hmmm its all greek to me, I am concerned with my owm CYA.

    • Rhynn

      Congrats on the uncannny ability to sum up the human flaw at the heart of the problem in 15 words or less.

  • Alex

    Another good article, nevertheless, as a citizen of southern Eruope, I cannot agree that whole south is in such a critical condition. I agree that Greece, Italy, Spain and Portugal have a lot on their mind right now and they are on the brink of default. But what about countries like Croatia, which has recently started talks about joining the EU – a small country with great infrastructure, history, economy, tourism.

    What about Serbia – they are out of the EU, but they are also doing fine. Or Romania, Or Bulgaria (where I’m from). In fact, Bulgaria has one of the best economic stats in Europe now – foreign debt of just 16% of GDP and while half of Europe is now in recession, there is still growth within the last quarter in Bulgaria.

    And not to forget Turkey (yes, it can be considered a south-eastern european country as well). Correct me if i’m wrong, but last year they were next to China only, when it comes to growth of GDP – something the whole world (and especially Europe) talks about right now. In fact, now there is a policy in Ankara to reduce the growth in order to maintain it sustainable. They estimate this year it should be ‘only’ 3-3,5%.

    • Michael

      Good point – I was mainly referring to Greece, Italy, Portugal and Spain.


    • Gary3

      Not suprising that the head of the IMF blames the people and not the government. “They should shut up and give us whatever we demand”.Iceland has it right. Tell the banksters to pound salt.

      • Winston Smith

        Could seize and nationalize the banks-or seize nad break up, but there, the risk of same people buying them back…..

    • 007

      Those little countries will be crushed like a beer can in the wake of an economic collapse the size of a steam roller. It is naive to believe they will not be consumed in the suction of the collapse.

    • Winston Smith

      Croatia still wants to join EU despite the obvious mess? they are either crazy and completely under sway of Globalists….

  • Another Richard

    #21-The “Secret Meeting” this week by Global Central Banksters really says it all. It was these same GCB that created the unregulated Derivatives market back in the 1980’s. The intent was to bring about a Global Financial Collapse using Derivatives to Indebt the Nations, at a time of their choosing. We are drawing nigh to this time with the recent Crack in the Derivatives Market by JP Morgan to the tune of 2 billion dollars, but said to be triple that by those in the Know. The Great Derivatives Unwind has begun now in earnest and will Accelerate into the End of 2012. By the end of 2012 the $ will Dethroned and Devalued and Inflation will be very high and heading higher. Exchange Dollars for Gold and SILVER Now, while you are still able and protect yourself.

    • 007


      1. Wring hands

      2. Eat expensive lunch at fancy resort.

      3. Agree to print money and buy crappy, worthless government debt.

      4. Plan next meeting and where to eat next.

      No big mystery about the “secret” meeting.

  • Colin

    I believe the collapse of the Eurozone may play a role in our national politics. If the collapse comes before November, I think the Obama administration may not survive, and I think I will see a Romney administration next year. As a Democrat, I am hoping that the collapse will come after November. As a realist, I am expecting the collapse to come before November. I am not looking forward to a Romney administration.

    • John W.

      You are looking forward to another Obama term? You are some kind of fool, the guy wrecks everything on purpose I believe but you still support him. You must be like those women who keep going back to men who abuse them. Pathetic, how some cannot learn.

      • Winston Smith

        Pathetic, true, but Pathetic many will vote Romney as he is 1. not Obama and 2. a Republican.
        Voting either yr after yr is the true pathology…

    • Mariposa de Oro

      Don’t worry Colin. The only difference between your president and Romney is the skin color. They both work for the banksters, not you. I’m looking forward to a Romney win so obamatards will finally see what’s going on. sheesh.

      • Rhynn

        You’ve got it right. Nice to see. But you forgot one thing, which is to extend that same vision to the entire concept of post Civil War bipartisan politics. Where the only real difference between the Dems and the Republicans is the zoo animal on their signage.

        The percentage of America that secretly has been doing that which they claim to despise, which is planning to vote down the current candidate for another candidate simply on the basis of race regardless of how much hard reality they have to ignore about candidate similarities, probably will never be calculable, but is no doubt something that would need to be actually seen to be believed.

        Americants are too busy creating petty differences to see real similarities. And until something changes about that, progress at the citizen level will continue to be little more than 2 yards and a cloud of dust.

    • Snoopy_The_Economist

      Yes, Obama has done so many GREAT things…to destroy this once great country.

      • Winston Smith

        Yup, everything was perfect until he got elected….he ushered in the Fed rserve, national income tax, debt, foreign wars, military bases around the world, drugs, pornography,abortion,etc-none of those things existed prior to him, right?
        Or, did he just continue, more or less, the same?

    • Jerry

      Is that because he’s doing such a good job? Or just because he has a “D” next to his name? If conservatives can get control of congress the onerous Obamacare will be repealed, tax rates will be reduced, the EPA and DoE (etc. etc.) will be reigned in, then America will get back to work, step one in getting this country at least somewhat back on the right track. With all the new oil discoveries and techniques for recovering it we can finally wean ourselves off foreign oil which would give a tremendous boost to our economy. The environmentalist whacko marxists must go!

      • Gay Veteran

        yeah, tax cuts for the rich in the U.S. have produced SO many jobs……in China, Vietnam, India, etc.

        • Winston Smith

          Odd the “conserveratives” now ignore marxist China,Vietname, but obsess over “Marxist Obama” and Islamists……wonder who the Goldstein next yr or so will be……

      • Winston Smith

        If he was a marxist, really, then why do you still have property at all? a home? job? Has he seized your bank account? Bush passed Patriot ACt era laws to do just that… he, then, not a “wacko marxist” too?

        Sad, many here seem to pablem the received/transmitted slogans…..

      • Rhynn

        I don’t know what’s worse between you believing this yourself and you running under the assumption that anyone else would.

        Your Conservatives have already promised America that if they get control of the military they will add a trillion more dollars to the debt pile fighting Syria and Iran; perhaps more considering who else they’ll have to send your kids and neighbors to get shot by as a result of attacking the first two.

        And these oil technologies that you bring up that are supposed to reduce our dependence on foreign oil. Don’t you get it yet? The only problem Western nations have with dependence on foreign oil is that those foreigners strings are not on Western fingers. That technology you speak of hasn’t saved America a dime on empire building expenditure. Because one thing has nothing to do with the other.

        This country isn’t doing any of this to benefit you. Oil profit, or the profit on anything that takes over from oil, will never get closer to you and I than the television set. Prices will continue to be fixed well above the comfort level of the American customer as well as above that of other customers in the world and the difference in processing costs will do nothing except put a convertible Lamborghini in the garage of oil CEOs right next to the coupe version they already have.

    • Winston Smith

      Who gets elected has already been decided….your vote as others will NOT count.

  • mark

    Gee, in #21 I did not see Uncle Ben’s name being invited to the secret party. Well how many of you have started getting prepared for another recession or worse. The big question is how long will the wealthy invest ( if that is what you call it ) in government debt. They are flocking to loan the Germans money without earning any interest. Will the Germans have a recession when a lot of the world can’t afford their products. I suppose the rich will dump some of their wealth over here as we stink less than much of Europe. But since our leaders think they can spend forever to keep up a lifestyle that most of us don’t deserve. When I say we do not deserve this lifestyle, it is because we have so many that will just keep on sucking the taxpayers dry and they will never contribute anything of value to this country. Americans at one time were known as a hard working nation that produced real things that people could use. Today we just push around a whole lot of paper. Most of us suffer from normalcy bias. Oh, it will never happen here in the US. If we pay heed to what some of the other Countries are doing in regards to the dollar, the reserve status dosen’t look to bright. I guess that could be because of our debt load and a big export is is the dollar. When the rest of the world doesen’t need them, they will not be worth much. When interest rates go up in the US to 7% percent or more it is game over as the interest payments will eat up a lot of what we earn as a country. As our leaders keep buying votes with all of the spending and the interest payments keep on rising higher and higher, the fall to the bottom will really hurt. Like I said, how many of you are starting to be prepared to heip soften your fall. I sure don’t want any broken bones for my part.

    • John W.

      Good post with some good comments. I feel like you do that we have lost our way and the correction is going to be brutal not just for us but the rest of the world. The one sided free trade, open borders freaks have pretty much cooked our collective goose.

      • Just like Bush was gonna end the depy of ed. Instead after getting elected doubled its budget. Wake up

  • Evie

    How will the dollar stay lower than the euro when japan and china are competing to keep their currency low I guess so imporys and exports go back and forth no mayter no one is buying.. What a scam.

  • mondobeyondo

    …But I don’t wanna live in interesting times anymore!!!

    Sorry, buddy. Looks like we’re stuck here for awhile.

  • Cinderella Man

    Wow Christine Legard is kind of bitch! Oh well the season of pain is upon us. Just watched an old show about how Brooksley Born warned us about this derivative ****** and everyone thought she was dumb. Now its coming back to bite us on the ass. Im feeling like George Carlin these days I want to see the whole thing go down. I want Americans out of their comfort zones. I want people to start showing their teeth and animal sides again. Ive seen enough in my 31 years to know that humans have an ugly side to them. Its time for us all to stop faking that we are so smart and civilized and start getting real. Lets do this ****** you guys lets get the Economic Collapse rollin baby Im tired of warnings and stats im ready for the show lets go!!!

    • Craig

      Why is George Carlin one of your heroes? I always thought he was a horses rear end.

  • Paranoid

    I don’t mean to be unreasonable but so what? Greece cannot pay it’s bills, If they had no debt, they still are underwater, No one has compared cost of staying in VS out.only thing anyone can do is: RUN. Sooner the better. I don’t expect run over here but I’m paying off bills and getting ready for trouble, cause our Gov is being just as stupid. I don’t claim to predict the future, but in the event of a significant economic collapse: I have decided not to participate, any others are welcome to join me.

  • Eschaton2012

    The coming events will be tragic there is no doubt about it but after recent conversations with delusional people I say…bring it on. I feel I am beating my head against the wall trying to get people to prepare but I can barely even get people to discuss the current situation for more than 5 min. They say its to depressing to think about. What are these people going to do when SHTF? Lay on the ground and pretend its not happening?

    Heartless as it may sound bring it on, the human race apparently needs sense slapped into it.

    • GaryToo

      I agree, its a conversatin non-starter. They dont know and dont want to know.

    • Curbsidechat

      I know what you mean. Poeple seem very scared about the future and that is just where we are right now. Personally, I think these are very interesting time we live in. The true human charachter is being brought out of all us. Don’t give up trying to enlighten people. Fortunately, it doesn’t take the majority to effect change, less than 10% really but we have to be a persistent 10%.

    • Zedge Hero

      If you have ever seen the Atlanta Bombing during the olypmics, most people do freeze in such circumstances while a few will move and act. It’s sad but we have been desensitized to the point that we are zombies in more ways than we realize and our human instincts of fear are now used agianst us in media propaganda instead of being rationale and realizing that the big fear is the economic situation is ending. A whole paridigm that we are not ready for at all is collapasing, now is the time to prepare with fear being the real factor in our future and our animal instincts taking root all over again.

  • Ian

    We have a problem.

  • Rodster

    What a mess Europe is and will become. Cameron is discussing contingency plans for a Greece exit from the Eurozone, Dixon’s stores are preparing for riots in Greece. And thankfully it appears Germany has come to it’s senses and said it doesn’t want to continue pouring money in the bottomless pit known as Greece.

  • Rancher

    OK point made. Can you give solid advise to us Americans on what to do with our cash savings?

    • mondobeyondo

      Depends on your individual circumstance.
      You might want to consider converting your cash to gold or silver. Or perhaps you can get a passport and move overseas, part time or permanently. Leave some cash in the bank for necessities like food, bills, toilet paper, etc.
      However dire it gets though, do not – I repeat, do NOT kill yourself. That is NOT the solution.

    • mark

      Come on Rancher, you should know to get more prepared. You need more lead and tools to do something with it. You need more food so that you can feed your neighbors. Remember they can help you in a hard situation. If you have lots of extra cash pick up gold and silver. Make sure that you have lots of fuel on your ranch. Store up more supplies and upgrade your food storage so the you can eat like a king in hard times. Store up lots of garden tools and store up fertilizer for gardens. Store up seeds and any thing else you might need to live. You can always use it for trading. You still need to keep cash inorder to pay your taxes. Remember that there will always be a bigger fish out there wanting you to pay up.

    • JustanOguy

      Get rid of your cash… When Greece goes down (and it will) and the dominoes start tumbling, more QE / Printing up dollars is going to take place to save Wall St. that will further devalue your dollars.

      Stock up on food… buy Silver…. buy farmland if you can. Relax and watch the cards fall.

      There were plenty of warning signs before the financial “crisis” of 2008… and there are plenty of warning signs this time around. This time around…. we should already know that Wall St. is not going to be allowed to suffer due to all of the pension funds and retirement accounts tied into the markets.

      In other words… more money is just going to be printed up by the broke U.S. Govt. because it’s the only thing the powers to be in D.C. know how to do.

      • 007

        I agree, there is a ton of chatter on the business channels about the risk. Then of course you have the ploiticians like Paulson and Bernanke telling you how confident they are that the problem is “contained” and how “resilient” our markets are. When you hear these terms watch out. read between the lines.

    • Optimistic Pessimist

      From your past postings you seem prepared physically already and the above posters have reinforced this.

      You need to prepare your mind, as it will be your mental state that will get you through. It is always good when you see a bad situation happening to think to yourself ‘What would I do if I were in that position?’ Think through possible scenarios – write them down if it helps or talk to someone about them.

      At the moment Greece is going through some severe problems, take the time to observe what is going on over there for the ordinary person on the street – the emotion, fear, anger, frustration, dented pride that they are feeling. Ask yourself how you would react if you were in there situation and then prepare yourself and those you love around you so you can get through the tough times and come out the other side wiser and in a better state so you can help others to rebuild their lives as well.

      This is the greatest gift you can give to the future of your country.


    • justanoguy

      I did not even realize your name as being Rancher. We are also ranchers with about 10,000 acres and are loaded with supplies to get us through at least two years without even having to go to a store and that includes cake for the cattle.

      Loaded up with fuel but we also recently picked up some Horses from the BLM in case we need to go back to the old school ranching days. Even picked up some chickens and fixed up the pen to go back to the days that our Grandparents when they survived the Great Depression and actually did quite well due to all of the food they could produce on the ranch.

      Not sure what your ranching situation is… we own the water rights and everything else. More scared of the federal government coming in and raiding our resources when the SHTF then anything else at this point.

      Luckily we are in an area far away from a major metropolitan area and all of our neighbors are pretty much self producing as we are….. and we all watch out for each other. Most of us are fairly well educated and have backgrounds in something useful. For me… I have a medical background.

      Pretty interesting how some big Wall St. guys have entered into our local scene buying up big parcels of land at premium prices and doing the same thing. Had a nice offer to buy our ranch from some bankster but for right now…. NO WAY are we selling with what’s about to take place.

      Get rid of your cash and put it into running your ranch…. Food is… and always will be…. Priority.

      $100 bills will soon be used as toilet paper so get rid of them and hopefully your ranch is in a “Red” state when the SHTF so you have some protection from the handout crowd that wants everything for doing nothing.

  • tak

    Its coming to a town near you

  • Barn cat

    Yes, the Greeks who don’t want to pay their taxes and still want to retire at age 50 with full pensions ARE the problem. The rest of the eurozone has subsidized their sloth.

  • Randy

    Okay everybody the big question is “WHY” is Europe melting down???? AUSTERITY, DUH!! That is because it doesn’t work, read some history books. Britian is a prime example. After the economic downturn Britian imposed stiff spending cuts. The government said when we put in place measures to balance the budget, confidence will return and the economy will improve. This was years ago. The economy did not improve and in fact they are now in another recession. Our economy as well as Europe’s is based on consumer spending. If consumers don’t spend, businesses won’t spend and its just a self feeding downward spiral. So in our country, most corporations have been doing great and have billions of dollars in cash reserves just sitting there. They are not willing to spend until the consumer returns and starts spending. So if businesses won’t spend and won’t hire, who will??? Well, it doens’t help if you cut goverment spending and put even more people out on the street and on the government dole. Sorry people but someone has to prime the pump and that has to be goverment. And sorry, we are not going to carry debt down the road and are selling out future generations. Bottom line, a strong vibrant healthy economy with the proper checks and balances can grow us out of the debtm. History proves this also. It just really amazes me some of the comments on this blog. Gary2 is one of the few people on here who gets it right most of the time. What is scary to me is what the majority of you are saying. Ignorance of history and recent lessons learned in Europe are going to be the death of this country. PERIOD.

    • Gary3

      Hand them YOUR money. You socialists want to do great and noble things. My gripe is that you want to do it with MY money.

    • Gary3

      OK, genious. Greece is broke and their sugar daddies have decided to stop handing them money. They don’t have to AGREE to austerity. It is coming anyway, unless the Greeks find a way to pay their own way.

    • McKinley Morganfield

      What you and G2 fail to understand is your philosophy is exactly what got us all into this predicament in the first place and more of the same only makes the inevitable crash even more inevitable and more painful for Main Street. Its a Ponzi scheme. Sooner or later it ends. The sooner it ends the less destruction, the later it ends the more destruction. We have common ground where we all agree the banksters and politicians need to suffer for their fraud. Where we disagree is a fundamental point: life, liberty, and the pursuit of happiness versus collectivism a la the USSR where “they pretend to pay us so we pretend to work”. You & G2 do not understand a fundamental trait of human nature. In the final analysis, a majority do not wish to be serfs toiling for the feudal lord; aka the state and the elitists you control the state. Get it through your head! The elitists don’t care about you or G2, they only care about gaming the system and turning you and G2 into their running dog dogma lackeys.

    • John W.

      Govt. spending got us into this mess, that and allowing so much of our production to be outsourced mostly as a result of tax policy that makes it impossible for American companies to be profitable. Lets not also overlook the damage mass immigration both legal and illegal have caused. The fact that you agree with Gary2 most of the time pretty much negates anything you may have to say. Most times he justs rants like an angry loon. Not saying that he does not have aright to be angry.

    • mark

      Randy, what history book have you been reading? Was it written by Marx or Mao. If you read history from 1920 thru 1925, we were going into a depression. The conservatives cut spending in half and lowered taxes from 75% to 25%. Both lower spending and lower taxes need to be done at the same time for the economy to come back strong. You and Gary2’s problem is that you are running out of other peoples money to spend on yourselves. Why don’t you figure out a way to support yourself instead of demanding the taxpayers do it for you. DUH!

      • Alasha


    • Craig

      OK, so what do you propose to stop the elites from sending middle class jobs to Mexico and China? You said jobs are the key, and I agree with you. How do we stop 4,000 Mexicans/day from coming to take more jobs in America? Please let us know. Thanks.

    • JustanOguy

      Yeah… printing up money works SO MUCH Better. (Roll Eyes Here.) Look up Weimar Rebublic, Zimbabwe and Argentina.

      Give me a break about the BS Austerity theory. When you have to pay down the bills after spending far more then you make for so long, there has to be some pain. As is the case in Britain… there are no instant results. Do yourself a favor and look up Canada when they implemented austerity measures in the early 1990’s and now have a healthier “Main Street” economy then the U.S.

      The alternative you suggest keeps things going temporarily until everybody is broke because their money is worthless.

      “Ignorance of History and Recent Lessons in Europe?” You obviously have no clue about History when it comes to Governments that print up money to pay their bills and the EXTREME POVERTY it creates for EVERYBODY.

      If you still don’t get it… I’ve got some 1923 Fifty Million Deutsche Marks I’ll sell you for a Million a note. In your world, that should be a fantastic “investment”.

    • GaryToo

      you dont need to follow history to see the recent lessons that continued spending is leading to ongoing downgrades of countries credit ratings, and astronomical debt that the same countries are so close to defaulting on.
      So what is your point? USA is certainly not reducing spending, they are not following austerity of the bankrupt piigs.. so you should be well on your way to growing out of the debt, they are cutting down forests to print the trilllions of us govt spending.

      History does NOT show that stimulus spending does any thing but delay the debt burden. It was tried all over the world and what we have now is a double dip recession, to become a complete collapse instead of recession.

      Repudiating debt and starting from scratch like ussr, iceland, chile, is what works. Govt spending is a gun that can be fired once, and is only as short term effective as a can of jolt-cola when you have been awake over 24 hrs.

    • Eric

      Europe is NOT melting down because of AUSTERITY. With all due respect, that is a bit too short sighted. You can not have a country borrowing huge amounts of money and then say we need the host to keep the good times party going by borrowing even more money. Meanwhile the loan sharks outside have been told to take it out on us. The hard reality is that knee-caping is just around the corner.

      Sorry, but Gary2 is consistently wrong most of the time. He is an enemy agent.

    • Quiver

      Randy you are so close. We are a consumer based economy, that’s the problem. We consume the labor of other countries without providing anything of real value in return. Without a competive advantage in making something this type of economy will collapse. The people that we are currently buying stuff from don’t need us. They have large enough internal markets, and military to cut us off if they wish to.

    • justadad

      You just failed three courses.

      Small Business Administration

      You have proven the proverb “if the blind follow the blind they both fall into the ditch.”
      You landed on Gary2.

      • Colby dudes

        Hahaha, good one dad

    • 007

      Current austerity equals fake spending cuts and crushing tax increases. To get out of this they will have to seriously cut government spending and regulations and seriously cut taxes on small businesses.

      Until the government takes the boot of of the gooses neck, it will never lay another golden egg. It really is that simple.

    • Chestertonian

      Randy, it is YOUR reading of history that is incomplete. In the past century, there has been an unmistakable worldwide trend of people from third-world countries pouring into Europe, North America, and other European havens such as Australia. All those places went from barbarism to unprecedented prosperity and safety because (1) they once were officially and openly Christian, and (2) they fostered private property and individual hard work, and not reliance on government, to meet basic needs. Now that un-Christian policies are on the ascendency we see that, for example, Mexicans have a net emigration from rather than immigration to the U.S., since we no longer have the ingredients for safety and prosperity. Instead we have socialist government controls and a dependent, pagan population. Same in Europe. So the golden goose is being killed. Europe and America became beacons for the world not because of white skin color, but because they were once Christendom. And should be again, with God’s help.

  • Randy

    So yes maybe Greece got caught up in the bubble that most of the world participated in. Maybe Greece doesn’t have the most sound policies, maybe their welfare state is a little too big. Well guess what. Sounds a bit like the U.S. doesn’t it? The only difference between them and us is they are having terrible austerity forced upon them at a time when they already have terrible unemployment and a really bad economy. We as well as they should have been thinking about stuff like balanced budget “BEFORE” the economy tanked. Not now. We were all so busy buying stuff and spending like crazy, most of us didn’t pay a bit of attention to what our governments were doing. So, bring on Austerity in the USA. Oh wait a minute even Romney is saying that we need a balanced budget but he would not impose harsh spending cuts immediately if he was put into office. Why, he knows it would completely tank the economy. I was scared to death Romney was going to be elected, but when I heard that I know now he is at least a little bit rational.

    • GaryToo

      ever suspect being in a minority of one, the crowd all trying to tell you something migjht be at least a little bit rational?

  • tappedops

    Take a deep breath people… nothing big is going down till a few weeks after the “Dildo-berg meeting” on the first of june in chant. Va- in …operation “palm tree confrence” will set the sched for the third quarter… and ohhh what a quarter it will be… God help us…

  • tappedops

    forgot to post the link (follow along here)

  • mondobeyondo

    It would be interesting to see how much exposure American banks have to European debt. My guess is, quite a lot. If Europe goes down, so will we.

    “You jump, I jump!” – Jack to Rose, in the movie “Titanic”

  • Doesit Matter

    Good evening,

    Been following these posts for a while and noticed “unfortunately” is used quite often. Not to disagree with the points being made, most of what is going on these days is quite unfortunate for the mass majority of people. However, to reach a tipping point of realization to society about our issues, unfavorably the unfortunate may have to be notified in an unlucky or unsuitable manner. Even after “waking up” ourselves to the reality of today, most of us still live “normal” lives to keep ourselves “sane.” Ultimately what is going to happen will happen no matter what. Unless you are the Antichrist, you aren’t going to convince the majority of the world to follow your ideas and prevention strategies. We are too diverse and worried about different “major” issues. Remember to still enjoy your lives while preparing for what you need to prepare for. Don’t worry about specific dates, people WILL take advantage of you in these times of despair and want to make money. Fear sells anything to relieve the fear. Prepare to live, not just to survive. Don’t try to change the world, lead by example and others may choose to follow.

    • GaryToo

      thankyou for those wise words

  • Horhey

    Randy Randy Randy…. If history says anything, this country is doomed at one time or another. There’s more to it then politics or culture or economy. Any countries tipping point is in morality. When you allow greed and corruption and personal gain supersede the bettering of humanity, the empire will collapse. Every empire in the past has done it, and this, I can assure you will be the last. 6 world empires before failed, the 7th, the masterpiece known as a freedom empire has failed. Eyes wide open says things have deteriorated over the last 30 years. Don’t believe me? Pick up hitch bikers on a regular bases. What’s the real unemployment rate? And why in the heck is Verizon doing so well, and yet there closing call centers in Folsom ca, to merge with another center 30 minutes away? U.S. Economy is about making money, not about helping people out. If you really believe the core of the current system of government is about helping the people, you really need to work in D.C. For a year. It’s about power money and control. Everything else is to keep the cogs moving. The first person who actually believes universal health care is for the benefit of the population, is foolish if not completely ignorant of politics. Once upon a time, this was an amazing country, its different now, the system isn’t gigantic, it’s colossal. Too many heads of government are of heads of corporations. Too many lobbyist move huge gifts. This current system is dying, and it’s dying fast. The model projections are on schedule, and it’s amazing how this author sees it. It’s obvious he’s more then well informed.
    As for Gary2, from the few post I’ve read of his, he’s an emotionalist with his own agenda. A provocateur if you will. He rants on about what he believes( which is protected for now), but a very narrow scope. If he educated himself on a global scale, reasoned with logic, he may have a different perspective. Many people view the way he does, but he has no real depth which limits writing intellect. Maybe he’s a nice guy in life, but can’t communicate with a message board. Usually that the other way around these days, if you know what I mean. Case in point, the author has more then a clue on what’s coming. You’ll see it in your near future.

    • Horhey

      And bye the way, if GDP, workforce, population growth, workforce into retirement don’t balance, whatever empire goes into deficit and starts to die. (debt it death)…

  • McKinley Morganfield

    Day by day, hour by hour it comes more clear that we can narrow it down to Spain or Italy. One or the other will be the epicenter of the global financial system meltdown. I smell blood in the air. Blood. On the grill it makes us salivate. The sight makes many queasy. The scent makes some lustful. The taste makes others greedy. A bath of blood on Wall Street, the streets of Athens, Madrid, or Rome creates panic. There will be a wildfire spreading out 360 degrees from the flash point. IMO it will be Madrid or Rome. Do not fear it as wildfire cleans out dead wood. Instead be wary of the aftermath. Chaos, panic, and fear often lead to repression. Prep and harden your hearts. We have 7 to 20 months to get ready for whatever will be, and whatever comes to pass will not be pretty.

  • Tony Booth


    clear -that – the upper
    crisis – that – we saw back
    25 signs – that- the smart

    No Need to use “that”

  • michelle

    how did anyone ever imagine that the country could afford those pensions and early retirements? Didn’t they do the math? It should be obvious that it could never work….if everyone paid their taxes would it have worked?

  • chiller

    Whether Greece leaves the EU is academic and now, only symbolic. The fact is the rest of EU is blaming them for their failures. To cobble together the lame financial system they did and be arrogant enough to not have a contingency plan of any kind, is a business plan no bank in their right mind would buy into. Yet these elitists believed in their own minds, they were infallible. Now they’re desperate enough to take countries, by force is necessary, to save their faces from being covered with egg.

  • capablanca

    I, myself, am transferring money to northern european banks.
    Greece can leave the euro, or not. But the next problem is bigger, what about Spain? Is there money for a bailout of world´s 13th economy?

    It´s said Europe has 500 billion euros ready for this… but I doubt it.

    Spain runs with a 10% GDP deficit, what is 100 billion euros A YEAR. We are struggling to get this deficit reduced, and it is still growing due to interest of nowadays debts. Anybody wants to add more fuel to this fire?

    The total debt of Spain: industry, private and public is estimated in around 4 000 billion euros. 4 years of a decreasing GDP.

    It is impossible to keep Spain running, but then comes another problem.

    what happens with France and Germany? because those are the main owners of spanish debts.

    For Germany is a torpedo that can harm the german boat… but for France… that is a major problem. we are talking about 11% of French GDP. USA would be harm too, as owns more than 200 billion euros of Spain´s debt. UK owns 150 billion euros.

    And this doesn´t include the amount of money owed to European Central Bank…

    Spain is a huge problem for western world and the situation is already so bad that new austerity messures could provocate a major scale revolution. With a jobless rate higher than 50% of young population under 25, mainly educated, with high cultural level and absolutely no future… you can not expect peace for long.

    It is not difficult to forecast that Spain is going to declare bankrupcy soon… the question is, will Europe survive that?

    • 007

      Watch the other hand. They are going to print money like crazy and give it to the banks and Italy and Sain under the table. They have decided to draw the battle lines at Italy and Spain. They have given up on Greece.

      Watch out for poor Greece. They plan to make an example out of Greece for daring to fight the austerity measures.

  • William

    Let’s hope that the smart, well-educated and industrious Germans blow up the EZ/EU by refusing to destroy their country
    to further bail out the EZ/EU.

  • jox

    It’s easy to attack a country. Nowadays every country have a high level of budget deficit, including Germany. So the banksters can use their weapons (finantial press, rating agencies) to spread rumors and fears. Soon the prophecies start auto-fulfilling. Debt interest go to 7%, some people get incredible rich, while the population of this country struggle taking severe cuts in education, health, pensions and so on.

    Some data for your thoughts: several months before the crisis, Spain had 2% budget surplus, full employment and low debt. Do you see how fragile is a country when the international cartel of bankster decide to go after its economy? Everything is perfectly orchestrated. When a country is completely plundered the banksters go for the next.

  • knightowl77


    Zerohedge is reporting that Bankia in Spain has collapsed AFTER receiving billions in bailouts….Oh and the director still gets his $13 million Euro bonus…Isn’t that great… 😉

    • Michael

      Ouch. I wish I could have left one of my previous jobs with a 13 million dollar parting gift.


  • jox

    “Much of this money has headed north to banks in London, Frankfurt and Geneva”. Well, you know who is doing this, and why.

  • Robert

    Austerity! Another buzzword of the Ostrich Set like “Birther”, “Truther”, “Tea-Bagger”

    Those who charge up the hill carrying the banner “Austerity Doesn’t Work!” refuse to look at the truth because the truth says you can’t spend all your money and then take most of mine to spend and not expect consequences.
    I’ll either stop working altogether and join the breadline or leave the country. Then whose money are you goung to spend?

  • Thats what Europe gets for trying to merge all those economies with so many cultural, ethnic, language etc diversities. The ancients in their rebellion against God tried it at the Tower of Babel and it didnt work, nor will it work today.

  • Jane B

    Excellent article. I would add the obvious… This is the future for the US too if debt continues to pile up.

  • erheault

    No nation in history has survived the debasement of their monies or orher basics of exchange, But of course we are Americans so it will be diffrent this time, doing the same thing time after time and expecting a diffrent outcome is the basis of insanity, The American eceonmy is trash and it will have to undergo a purging before it can return to reality, a purging usually means a depression or a devaluation of its monies most of the time it is both,
    The uber rich will hoard their wealthbut the remaning people will have the fun of loosing everything that they have Doubt this I sudjest you read the history of the earlier depression starting with the midwest dust storms up to the starting of WW11 you will find a bluepring of what is in store for the world and our nation, 15 Trillion of admited debt and growing by the minute should give you a small clue of coming attractions, At this current time the politicos are trying to hang onto the raging horse of debt crash so that they can get reelected the question is can they do it or will the crash occur before November. Velly interestin.

    • mondobeyondo

      If you think about it, there’s nothing particularly special about the U.S. Yeah, we’re a superpower, we have the largest economy in the world, we are a huge cultural influence, we have the battleships, subs, missiles, etc…

      So was Great Britain, some 150 years ago. So was the Roman Empire nearly 2000 years ago. We’re going down the same path as they did, and it’s not the Yellow Brick Road.

      • Michael

        By the way, for those that are interested there is a free preview of a new magazine that will be featuring some of my articles on itunes….

        It is called “Happy To Survive” and in a couple of months it will feature an extended interview with me. 🙂


        • Alasha

          you should do some radio show interviews Michael like on GCN so we can get to know you more …. recognize the sound of your voice. smile. I honesty do not know how you would go about getting on the shows though.

          • Michael


            I do some radio interviews from time to time when I get invited.

            But normally I am content to just sit behind my computer and write. 🙂


          • Alasha

            ok thanks for the update, Michael. will look for your interviews….

  • The ONLY answer to derivatives
    Print money like there is NO TOMORROW, Print the smallest bills as $10,000 notes. Print ONLY on one side of the bills to save time & money, print 24 hrs, have every print shop in amerika printing legal tender and then use that mony to pay off the 1.5 Quadrillion we owe in derivatives.
    Time is short PREP hard&fast.
    Gold will NOT feed you, Silver will NOT keep you warm and Diamonds will NOT protect your family. See a Real FREE survival plan for you and your family at:

  • Diane C


    (in-ep-toc’-ra-cy) – a system of government where the least capable to lead are elected by the least capable of producing, and where the members of society least likely to sustain themselves or succeed, are rewarded with goods and services paid for by the confiscated wealth of a diminishing number of producers.

    I love this word. Finally, a word to describe our current political and economic situation.

  • I think the Greeks will STILL be in the Euro this time next year… But i think it’s a safe assumption that the greek government will have lost power in their own country to an EU committee.


  • a lot more trouble…

    Mike writes “Unfortunately, a financial collapse across southern Europe is also likely to trigger another devastating global recession”.
    I think it already has,

    Panasonic to Cut Up to 4000 at Headquarters – ‎4 hours ago‎
    Not all the staff cuts would be layoffs. Some employees could be sent to other operational units, while others would be offered early retirement. Company representatives declined to comment on the reports. Facing strong competition from Korean …

  • jox

    Michael, I know you like to have raw data to extract your own conclusions. How about this article of MarketWatch?

    “In terms of U.S. dollars, [the euro] currently trades for $1.25. Two years ago, at the end of May 2010, the euro stood at $1.23.

    That contrast is nothing short of amazing. Despite two years of virtually uninterrupted awful news about Europe in general and the survivability of the euro itself, the currency is nevertheless trading a couple of percent higher now than then.

    Yet, you’d never know that from reading the news headlines. But the numbers don’t lie. And they are telling us that participants in the currency market collectively believe the euro to be slightly more attractive today than it was two years ago.”

    Something to think about…

  • patriot alice

    Anyone who is NOT in the KNOW, will be left holding the bag at the end, with worthless investments…Pump and dump, The people who can least afford to take the loss, will take it, because those in the know, take care of their own…

  • patriot alice

    We are slowly finding ourselves in the same situation…That is why nobody has THE SOLUTION to our own financial demise..Too much debt, and a lot more to come..People who borrow and spend like the PIIGS and the USA do, are not planning on repaying those debts…

  • JackieG

    There are a lot of bankers betting on this.
    They do this in the derivative market.
    A good many bets are blowing up in certain bankers faces.
    The question is: “can the insurer cover the bet?”

  • Alasha

    Why is it taking taking soooooooooooooooooooooooo long for something to happen? I am in a BIG fight with BOFA and things are just crummy in my life all round. Pretty much. I want to something to happen. I need change. lol

    • DB200

      Why is it taking so long for a big ship to change course? It is called inertia. But still, big ships can be turned around by small tug boats. Just keep persistent in your actions.

  • nepenthean

    Short side of EUR/USD trade is crowded. It might bounce which will catalyze US equities and AU/AG to bolt up.

  • Your Johnson

    You are wrong. Greece will not leave the Euro. There will be a pro-austerity govt. formed after the June elections. The can will be kicked down the road until there’s no more cans and no more roads. It appears as if the US economy is improving and that the housing market is beginning to rebound. Sometimes I agree with you, sometimes I don’t, but the times I don’t agree with you are increasing exponentially as your cry of “wolf” never materializes to an actual beast.

    • justanoguy

      The housing market appears to be rebounding because of all the “programs” in place delaying the 6 million seriously delinquent home loans from going to foreclosure.

      In other words… supply is being manipulated to keep the prices from being where they should be.

  • That s a good kind of collective information available which is helpful for all of us. I have also that kind of information and a collective information about the economies of other countries.

  • Carl Jones

    There is no real problem with Europe and the reason why “they” making a problem is that this forces money into the US Dollar. The EU is being attacked to save the US or at least offer a decoy from the US collapsing economy.

    The reason for the failed Greek government following the election, is that the NWO does not want Greece to leave the Euro. If Greece did leave the Euro, it would recover within two years and have a booming eoonomy. If other Euro states see this, they`ll leave as well.

    Christine Lagarde suggested giving the Monopoly Money directly to the still bust banks, because they culdn`t screw EU states fast enough.

    Just as we have countless no win wars, they want constant economic strife…war without end, economic pain without end.

  • Fred

    The real question is when it is all going to happen. The election in Greece will be the key. If the election goes in favor of a pro-austerity government, then Johnson’s reply is probably correct. If it doesn’t, then Greece will leave the Euro Zone before the end of the year. The turmoil that will begin will lead to the breakup of the Euro Zone in 2013 or 2014, in my opinion. There are seveal possible scerarios after that event. One would be several common currencies involving a much smaller number of countries in Europe. For example, you could have Germany, Austria, and the Netherland with a common currency. You could have Finland, Sweden, Denmark, and Norway with a common currency. It could work out much better due to a smaller number of countries involved.

  • If we look in our rear view mirror and don’t
    argue against the evidence, we will learn that
    this economic conditions in Euro and many other
    countries is caused by people who refuse to be
    accountable for their own actions, they reject
    any kind of authority, they have been spoiled
    by politicians for so many years that their own
    addictions have made them blind.

    give me my pleasures at any cost, including the
    destruction of their own Countries.
    the entire masses of people have been deceived
    they have rejected and refused to believe the
    truth and now they will be forced to believe
    a lie.

  • DB200

    In the meantime, this is how the OECD views the world:

    Actually, I think they give quite a rosy presentation about the current situation, e.g. “the outlook looks encouraging for the US economy”. Only Europe is seen as a risk. Michael, the economists at the OECD clearly don’t read your blogs. They do so at their own risk.

    What is more worrying is that people actually believe these kind of advice.

    • Michael

      Yes, I agree that they should start reading my articles. 🙂


  • It is I only

    A sensible advice!
    Take your money out of Euros & put it in facebook shares!

  • Richard

    May 29th, 2012 at 6:31 pm


    I do some radio interviews from time to time when I get invited.

    But normally I am content to just sit behind my computer and write. 🙂


    it might be a lot easier for you if you were sitting in front of your computer when you wrote.


    • Michael

      That made me smile. 🙂


  • It is I only

    All the “smart money” went into facebook shares!

  • Ron Thompson

    It doesn’t matter – republican democrat Romney Obama there is no difference. They work for the world’s power elite. When are you people going to wake up?

  • Anna

    Southern Germany was conquered by Prussia a long time ago. They are not the same people as the Northern Germans and don’t have the same history of economic development. Not surprising they are hanging them out to dry.

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