The Beginning Of The End Ad
Gold Buying Guide: Golden Eagle Coins

Recent Posts

The Preppers Blueprint Economic Collapse Blog Get Prepared Now Ad

Enter your email to subscribe to The Economic Collapse Blog:

Delivered by FeedBurner

Eurobonds: The Issue That Could Shatter Europe

Share on FacebookTweet about this on TwitterPin on PinterestShare on Google+Share on LinkedInShare on StumbleUponEmail this to someone

Would you pool your debt with a bunch of debt addicts that have no intention of reducing their wild spending habits?  Of course you wouldn’t.  But that is exactly what Germany is being asked to do.  Increasingly, “eurobonds” are being touted as the best long-term solution to the financial crisis in Europe.  These eurobonds would represent jointly issued debt by all 17 members of the eurozone.  This debt would also be guaranteed by all 17 members of the eurozone.  This would allow all countries in the eurozone to enjoy the same credit rating that Germany does, and borrowing costs for nations such as Greece, Portugal, Italy and Spain would plummet.  But borrowing costs for Germany would rise substantially.  In fact, it is being estimated that Germany could be facing an extra 50 billion euros a year in interest expenses.  So over ten years that would come to about 500 billion euros.  Needless to say, Germany is not thrilled about this idea.  But new French President Francois Hollande is pushing eurobonds very hard, and he has the support of the OECD, the IMF and many top Italian politicians.  In the end, this could be the key to the future of the eurozone.  If the Germans give in and decide that they are willing to deeply subsidize their profligate neighbors indefinitely, then the euro could potentially be saved.  If not, then this issue could end up shattering Europe.

It is easy to try to portray the Germans as the “bad guys” in all this, but try to step into their shoes for a minute.

If you had some relatives that were spending wildly and that had already run up $100,000 in credit card debt, would you be a co-signer on their next credit card application?

Of course not.

The recent elections in France and Greece made it abundantly clear that the populations of those two countries are rejecting austerity.

Instead, they want a return to the debt-fueled prosperity that they have always enjoyed in the past.

Unfortunately, they need German help to be able to do that.

That is why new French President Francois Hollande is pushing so hard for eurobonds.  He wants the rest of the eurozone to be able to “piggyback” on Germany’s sterling credit rating so that everyone can return to the days of wild borrowing and spending.

But Germans greatly fear what a co-mingling of eurozone debt could eventually mean.  Not only would Germany’s borrowing costs rise dramatically, but there is also a concern that the rest of the eurozone could eventually pull Germany down with them.

Austria, Finland and the Netherlands are also against eurobonds, but the key is Germany.

For now, Germany is not budging on the issue of eurobonds at all.  The following is a statement that German Chancellor Angela Merkel made during a recent speech in Berlin….

“It’s just about not spending more than you collect. It’s astonishing that this simple fact leads to such debates”

And she is right.

Why is it so controversial to insist that people not spend more than they bring in?

But this is the problem that is created when you create a false lifestyle fueled by debt that goes on for decades.  People become accustomed to that false standard of living and they throw hissy fits when that false standard of living begins to disappear.

The Germans don’t want to make great sacrifices just so the Greeks, the French and the Italians can go back to borrowing and spending wildly.

Why would the Germans want to do that?

And as a recent CNN article noted, German politicians believe that eurobonds are explicitly banned under existing EU treaties anyway….

“There is no way of introducing them under the current [EU] treaties. Indeed, there is an explicit ban on them,” one senior German official said, adding Berlin would not drop its opposition in the foreseeable future. “That’s a firm conviction which will not change in June.”

But politicians such as Hollande are complaining that austerity could seriously damage living standards throughout Europe.

And Hollande is right about that.

When you inflate your standard of living with borrowed money for many years, eventually there comes a time when you must pay a great price.

Anyone that has ever been in trouble with credit card debt knows how painful that can be.

It is shameful for the rest of Europe to be pleading and begging Germany to help them.

They should take care of themselves.

As I wrote about the other day, Greece would be much better off in the long run if it left the euro and created a new financial system based on sound financial principles.

But in the financial press all over the world there are calls for someone to come up with a “plan” to “rescue” Europe.  For example, the following is from a recent Wall Street Journal article….

There have been two main responses to the crisis: austerity, and kicking cans down roads. Austerity, in case you haven’t noticed, is so last year. It’s out. Which means that unless something else is found, some other comprehensive plan, the other main response, can kicking, is going to run out of road.

Just about everybody backed the idea of eurobonds, except for the Germans, and since they’re the ones with all the money, they’re kind of the only ones whose vote counts anyway. So, it’s time to go to plan B. Only there’s no Plan B, and there’s no time, either.

If Germany does not agree to subsidize the rest of the eurozone, will that ultimately mean that the eurozone will be forced to break up?


And that would cause a huge amount of pain in the short-term.

But the euro never was a good idea in the first place.  It was foolish to expect a monetary union to work smoothly in the absence of fiscal and political union.

And to be honest, the entire world would be a better place with less European integration.  The EU has become a horrifying bureaucratic nightmare and it would be wonderful if the entire thing broke up.

But for now, the only thing that is in danger is the euro.

Increasingly, it is looking like Greece may be the first country to exit the euro.

This week, former Greek Prime Minister Lucas Papademos admitted that the Greek government is considering making preparations for Greece to leave the euro.

Not only that, Reuters is reporting that top officials in the eurozone are now working on “contingency plans” for a Greek exit from the euro….

Each euro zone country will have to prepare a contingency plan for the eventuality of Greece leaving the single currency, euro zone sources said on Wednesday.

Officials reached the consensus on Monday afternoon during an hour-long teleconference of the Eurogroup Working Group (EWG).

As well as confirmation from three euro zone officials, Reuters has seen a memo drawn up by one member state detailing some of the elements that euro zone countries should consider.

So obviously a Greek exit from the euro has become a very real possibility.

A recent Bloomberg article detailed how a Greek exit from the euro could play out during the 46 hours that global financial markets are closed over the weekend….

Greece may have only a 46-hour window of opportunity should it need to plot a route out of the euro.

That’s how much time the country’s leaders would probably have to enact any departure from the single currency while global markets are largely closed, from the end of trading in New York on a Friday to Monday’s market opening in Wellington, New Zealand, based on a synthesis of euro-exit scenarios from 21 economists, analysts and academics.

Over the two days, leaders would have to calm civil unrest while managing a potential sovereign default, planning a new currency, recapitalizing the banks, stemming the outflow of capital and seeking a way to pay bills once the bailout lifeline is cut. The risk is that the task would overwhelm any new government in a country that has had to be rescued twice since 2010 because it couldn’t manage its public finances.

Right now, nobody is quite sure what is going to happen next and panic is spreading throughout the European financial system.

At this point, everyone is afraid of what is going to happen if Greece is forced to start issuing drachmas again.  As CNBC is reporting, some big European corporations are already beginning to implement their own “contingency plans”….

Big tourism operators like TUI of Germany and Kuoni of Britain are demanding the addition of so-called drachma clauses to contracts with Greek hoteliers should the euro no longer be in use here. British newspapers are filled with advice columns for travelers worried about the wisdom of planning a vacation in Greece, or even Portugal and Spain, should the euro crisis worsen. Large multinational companies like Vodafone Group, Reckitt Benckiser and Diageo have taken to sweeping cash every day from euro accounts back to Britain to limit their exposure.

Sadly, this is probably only a small taste of the financial anarchy that is coming.

France is likely to keep pushing hard for the creation of eurobonds.

Germany is likely to keep fiercely resisting this.

At some point, a moment of crisis will arrive and a call will have to be made.

Will Germany give in or will political turmoil end up shattering Europe?

It will be interesting to see how all of this plays out.

  • Rodster

    If I were Germany I would not co-sign a damn thing. As the saying goes, “It’s tough to soar like an Eagle, when you’re flying with Turkeys”.

    If socialism is so great they shouldn’t need Germany’s help. 😉

    • Alasha


  • And the crazy train just keeps chugging down the tracks, what a doozy….

  • The ONLY answer to Greece is our answer.
    Print money (Drachma’s) like there is NO TOMORROW, Print ONLY on one side of the bills to save time & money, print 24 hrs, have every print shop in the country printing legal tender and then use that money to pay off the bills. Time is short> PREP hard – PREP 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:

  • Michael

    Germany could probaly accept eurobonds in exchange of more control on monetary union regulations….. Most of the banknotes I use already in France are printed in germany (letter X on the note for germany, U for France, Y for Greece………). The exit of the greece could cost 100 billions euros for Germany.

    Two wars between France and germany in the 20th century. but germany will win, not with an army, but a piece of paper ….

  • Lucas

    for me the problem is not to live within our means but the problem is that i am being forced to pay higher taxes to repay debts i had never asked for to be made by politicians i have never voted for.
    I ask for government default and write-off of all those illegitimate debts. After that we can live within our means no problem

    • Zedge Hero

      Wait a minute,

      Your telling me that there are people out there that are borrowing money they don’t have, to buy things they don’t need, in order to impress people they don’t know. You have got to be kidding me. Right?

      Ahhh the American Dream……….

      WAKE UP!

  • Piglet

    [Why is it so controversial to insist that people not spend more than they bring in?]

    This is a problem on both sides of the Atlantic, as well as for individuals. I have relatives who live under a dark cloud of debt because they continually spend more than they make (and they make a lot), and this will continue until it simply can’t anymore.

  • Tim

    I happen to be german myself and that’s what I think: Germany will give in.

    why? because today’s german politicians are weak , they are exactly like their american counterparts , they manage an empire (ok , ok – a much smaller and weaker mini empire but still an empire) which their fathers and grandfathers created.They have no idea how to create wealth , they only know how to use existing wealth , how to share it etc.

    my best guess is that during the elections merkel’s government is gonna fall and will be replaced by social democrats that will implement eurobonds and then the crisis will spill over to the eurobonds through rising interest rates , at some point the whole thing will come crushing down their heads and as always there will be an intense discussion in germany who has the fault blah blah blah and as always some people will step down and no one will be punished

    • Diane C

      “at some point the whole thing will come crushing down their heads and as always there will be an intense discussion in germany who has the fault blah blah blah and as always some people will step down and no one will be punished”…….. Sounds like the US. Both parties have put us in the situation we are in now, but blame each other, keep the bribes (from their friends and lobbyists)and it just continues.

      I disagree with Obama and his policies, however I also disagree with the career Republicans who has helped get us in this situation. Anyone getting punished? no Anyone getting fired? no Anyone admitting they are at fault? of course not!

    • Jean Guinot

      Dear Tim , I want to address myself because you are German and because I happen to be French. Please do not mention “weakness” from Germany and its people. You are the greatest country of Europe because the Germans are hard working ,
      resilient and discipline people . Now, what do I think of France ? LET IT SINK AS WELL AS THE OTHERS P.I.G.S. or simply the “pigs” of Europe Now, this “imbecile” of HOLLANDE is realizing that he needs to find money to “as always ” assit the majority of lazy french people . So , Euro bonds is of course the answer and the arrogant Holland is begging Germany to help pay the bill .
      NO WAY ! France has had a good time for too long like Greece, Italy and Spain , Now assume the consequences and learn from it. Yes , I am ashamed of my country and I apologize to all of you .

      • GaryToo

        take it easy there jean, we are all ashamed of our countries. If only my girlfriends french was as fluent as your english.

    • Paul

      Who is the richest German?

      A discounter.

      What kind of companies are in the DAX?

      Banks mostly.

      Germany has the energy tax, the renewable energy law, the building heating energy law, the recycling law. The government is squeezing the people for a long time already, forcing them to save on resources Germany does not have and has to import.

      Does it pay off? Obviously. In Germany a family of 5 can survive on EU 2,000 net income very comfortably, if they live in their own house.

      In Germany, if you build a new house, you are forced by law to insulate it against heat loss. You cannot sell a house without telling the buyer how much he has to spend on heating and hot water in the future.

      We remember – the 2008 crisis started when the oil price shot through the roof, people had to pay more for gas and oil and couldn’t afford to pay for mortgages anymore.

      And the oil price is still 3 times higher than before 2008. In the beginning of this year it rose by 20%.

      Time to wake up and save money – but how to invest in energy savings now, when the energy prices eat all your income?

      Just let’s wait until we see “more evidence of global warming”?

      Forget global warming, Look at the price. Energy won’t get cheaper in the future.

      Heating and transport will depend on energy in whatever form. The less energy someone needs for whatever the more money he can save to re-invest into efficiency.

      And if nothing else the Germans are very efficient – up to the point of extremely inhuman, like Adolf Eichmann.

  • the germans would be fools to agree with the bonds, pay for the mistakes other countries have made with reckless spending.
    unfortunate that united states has to go through the same(because i live here)and we have a reckless spending habit,entitlements are the top of the list im sorry but the plain truth is work or starve and the weak have to die its called survival of the fittest.
    but i can go on for along time about everything thats screwed up and dumb politicans,bankers and citizens but lets cut this short with the old saying that has been and always will be–WHEN YOU SOE IN THE WIND YOU MUST WEAP THE WHIRLWIND OR WHAT GOES AROUND COMES AROUND and im sure there is abunch of other saying that are ansestors warned us and we didnt listen because this world we live in,we are pretty stupid people

    • Bone Idle

      Eurobonds -Another reason for Germany to quit the European common currency

      • Mathieu

        I am not telling that what did Greece is right but they also have a huge debt because of buying german products and the same for other country and so on. So i propose to Germany to go out of the euro and to sell it s product out of European Union which is buying 65/100 og germans products. Then we willl see how it will go.

    • Xander cross

      Be very careful what you ask for, for someday you too will become weak and then, you will understand why you are so stupid, just like Ron Paul.

      • GaryToo

        exactly how is he stupid xander?

  • markthetruth

    What’s happening now is called “Global Bulling” pick on the ones with the money, and all other forms of bulling . Watch out for “Retaliation” …………….

    All Spells out what’s really coming “Global War”……..
    It will Happen…

    The folks here know the world is inside out , upside down , and Backwards .
    Where constantly Trying to make thing easier but in the end where making it more complicated.

    Give me the simple life.

    The End.

  • Big Malla Hudson

    I’d bet my life that Germany will capitulate. The whole reason for the “crisis” in the first place is to usher in fiscal union (Eurobonds). There is no way in a million years the Euro will be allowed to fail, not a hope in hell.

    • Paranoid

      Even if you are right, it delays things what a month, a year, three years? Then what? The end game is the same, it just gets bigger.

  • Gary2

    Michael–Germany has benefited greatly from the EU in the early days of the EU, now its time to pay the piper. France is correct–No more austerity, it ain’t workin and never will.

  • Gary2

    It is shameful for the rest of Europe to be pleading and begging Germany to help them.

    They should take care of themselves

    Michael–what part of EU are you having trouble understanding?? they are in this together. I know the conservative myth about taking care of yourself is quite pervassive but it is just that a myth. No one succeeds on their own, no one. Same with countries.

    The selfish conservative ethos rears its ugly head!

    We see the world in fundementally different ways. I guess we will need to agree to disagree on this one.

    • Gary3

      What color IS the sky on your planet?

      • GaryToo

        that would be green, as they say’ green with envy’

    • Collaro

      The money will be used to bailout the bankers you idiot, not the people. F.N.D.

    • GaryToo

      hey garry can you spare a few bucks til tuesday 2099, I want to live it up a little longer, u know im good for it. were in this together.

    • justadad

      You are the one who is myth-taken.
      Merkel’s quotation is quite clear: you cannot continue to spend more than you make (take in).
      This applies to governments as well as households.
      The time proven truth “whatever you sow, you reap,” is coming into effect worldwide and the crops are economic doom for all refuse to tighten the belt (austerity).
      It is your liberal mythology (“we can spend what we don’t have and make someone else pay, no worries, mate.”) that needs to be abandoned, not the tough responsibility that Germany is proposing.

      • Gary2

        comparing governments to households is not a correct comparision. It fits the simplistic answers conservatives crave but it is in correct.

        Again the extreme right wing individualistic mantra is showing through.

        Capitalism is why the EU is in the mess. It was Goldman sucks who lent Greece money and played with the books etc. It was unregulated capitalism that caused the economic recession in the first place. Generally the thing that caused a problem is not the same thing that will fix the problem.

        • justadad

          You refuse to accept the simple truths of life that apply to all.
          All governments,
          All households,
          All individuals
          Cannot continue to spend what they don’t have. Eventually people will refuse to believe the promises of repayment, call in the debt and the borrower becomes the slave of the lender.

          The comparison stands because households and governments are made up of PEOPLE, and all people whether individuals or nations are bound by the same simple truths of life.
          You seem to think that government is humanless, some kind of godlike entity that creates jobs and wealth and welfare out of nothing.
          Printing pictures and numbers on a piece of paper does not give it value. The value of the people printing on that paper give it value. A government should be condemned just as an individual for writing back checks.

          You confuse capitalism with greed (something even non-capitalists bathe in.)Please consider this;
          Households and individuals can work, produce, earn and distibute but governments can only take and re-distribute. Therefore governments do not produce capital they can only hinder or help its growth. Even extremes like pure communism is based on collective capitalism.

          What part of “live within your means” is a right wing individualistic mantra?
          Do you tell your children, “go out and spend more than you make, drive drunk, gamble wildly, cheat on your commitments, collaborate with criminals, steal from your boss, trash your family legacy and show me as much dishonor as you think you can get away with?”
          I hope not but your statements on these blogs do raise some questions about the people you want to run the country.

          Wouldn’t this world be a better place if all individuals (including all elected ones) lived by the rules we expect our children to follow?
          Yes, that sounds simplistic but that does not make it any less than true.

          Truth can be very simplistic, in that even children can understand the concepts, but that does not conclude it is incorrect or political.

          • Gary2

            You have heard of the printing press correct? You know the machine that can print money??

            If the gov prints money and gives it to be and I go to best buy and purchase a new computer I am very sure best buy will take the money the gov printed and gave to me.

            What are interest rates for US borrowing?? like .001% or something like that?

            Clearly the government can borrow and spend all it wants and in fact we need a huge stimulus like Dr. Krugman advocates. 4-5 times larger than the first. We can then easily grow our way out of any debt issues. Interest rates are at the lowest ever, and we should be more concerned with ending this depression now and not about any debt issues.

            On a more micro level I work with a person who regularly spends money she does not have by running up credit card debt (up to $60,000)goes bankrupt and walks away from it and then in a few years starts the process all over again.

            Good for her she is doing some of her own wealth redistribution. All she is doing is privatizing the gains and socializing the looses just like the rich do. If the credit card companies are dumb enough to lend to her then that’s their loss. I encourage her to write a book on how to do this wealth redistribution. She has a lot of good memories on vacations etc that were “free”.

            BTW–A good reputation is way over rated.

          • Gary2

            oh yeah all that government investments and research that the private sector capitalizes on like the internet, many medicines etc.

            Capitalism=greed there is no difference as capitalism is predicated on self interest and selfishness.

            Jesus was a socialist and would condemn capitalism. He threw out the capitalists from the temple and regularly told the rich to give to the poor.

            Tax the greedy to help the needy is what he was saying in so many words. It would also save the greedy riches soul–eye of needle and camel et al.

        • Witness the End


          Two quick points.

          First, the United States was never meant to be a capitalist economy. It was meant to be a Free Market ecomony. There is a difference.

          Second, it was Woodrow Wilson (a Progressive Dem) that signed the Federal Reserve Act which turned economic and fiscal power over to the banks (Goldman, etc.). I call that cronyism, not unregulated capitalism.

          • Gary2

            I honestly did not know that free market and capitalism were different. Thanks for educating me.

        • GaryToo

          how about an explanation, any at all even a simplistic one. exactly how is debt vs income and default any different.

  • Cinderella Man

    Germany needs to run like hell from the eurozone. I hope they have the sand to leave their cretin neighbors to rot. This needs to happen. The financial world must reset or we will continue this cycle of pain untill it becomes way too far to control. And what was up with the last minute rally the DOW had? It was down almost 200 and it just magically only lost 6 pts? Can you say market manipulation?

  • mark

    I say let them live within their means. I also say the same for California and the other States that are run by the Democrats and their debt from buying the union votes.

  • Discouraged One

    Germany would be crazy to give in…they don’t seem like the suicidal type.

    France should pound salt and bite the bullet.

  • a lot more trouble…

    Europe’s troubles are just starting to effect us herer in the USA, as seen by the mighty layoffs this week and more to come,
    Get ready people, Even soon to be Elect president Romney cannot stop whats coming;

    HP Beats on Earnings, Announces Layoffs of 27000
    ‎ – 3 hours ago
    The computer maker beat on earnings and announced plans to lay off 27000 employees, or 8% of its workforce. Shares rose after-hours.

    Google, Motorola deal to result in massive layoffs, report claims
    ‎Know Your Cell – 8 hours ago
    Motorola’s worldwide staff could be cut by as much as 30 percent this year.

    Morning Report: City Schools Prepare for 1500 Layoffs
    ‎Voice of San Diego – 9 hours ago
    The mystery of the police hotline, Filner & Fletcher are BFF, no hit doc on DeMaio, all about District 3 and a mash note via Twitter.

    Medtronic to cut 1000 jobs, including 250 in Twin Cities
    ‎Pioneer Press – 1 day ago

    SWTOR Layoffs Hit BioWare Austin
    ‎ – 9 hours ago
    News of declining subscriptions have been circulating for a little while now, but the layoffs certainly paint a more bleak pict

    Timberland confirms layoffs at Stratham site
    ‎ – 4 days ago
    STRATHAM — “Structural” changes at The Timberland Co. have resulted in layoffs of an unspecified number of employees.ure than many had realized.

    Sears plans more layoffs
    ‎Chicago Daily Herald – 5 minutes ago
    Hoffman Estates-based Sears Holdings said a group of employees were told Wednesday they would be part of a wave of layoffs, but would not confirm the total.

    PotashCorp announces layoffs at Aurora facility
    ‎WNCT – 1 day ago
    AURORA, N.C. — PotashCorp announced Monday it’s cutting 150 full-time positions, equaling a 15-percent cut in its current workforce.

    General Mills, Medtronic announce layoffs
    ‎Minnesota Public Radio – 1 day ago
    Two Minnesota employers announced job cuts in the Twin Cities today. General Mills says it is cutting 425 jobs. Medtronic said previously announced job cuts …

    IPS board approves 163 layoffs
    ‎Indianapolis Star – 18 hours ago
    The Indianapolis Public School Board on Tuesday approved the layoffs of 163 employees, including 94 teachers.

    Yes these are major layoff announcements, and with new grads coming into the workforce this year things will be very grim indeed.

    • mondobeyondo

      Just when you thought the recovery was going along quite nicely…

      “Economy’s had a setback! Quick! Move patient back to ICU! STAT!! Need bottle of saline solution!!”

    • Gary2

      Even soon to be Elect president Romney cannot stop whats coming;

      Sorry to say but no one believes this will happen. I have heard many Obama win projections even from the right but almost no Romney win scenarios.

      The Christian right must really be in a conundrum–vote for the Mormon or Muslim 🙂

    • Gary2

      Otherwise thanks for the good info on layoffs. Good list you made.

    • Kathy Smith

      Thank you President B.O. for all of the great things you have done for our country. People please wake up before its to late God help us all

    • Kathy Smith

      I just heard on the radio ( MSM of course) that the jobless numbers fell slightly obviously that haven’t received this info over the wire yet.

  • Graham

    Trust nothing in a live “kill zone”, especially bonds.

    Hmm.. need to checkout and see if that new French dude is a left wing “puppet”, having come up with something the IMF approves of. I also wonder what the Bilderberg group will be deciding at their annual meeting within the next few weeks. NATO and G8 meet during a solar eclipse (symbolic) and now BG and the Jubilee have their finales which coincide with the transit of Venus. My oh my. What conspiracy goes here?

    Time to check on ********** in the Holy Land and sniff the air for war plan readiness against the Persians. I believe the US have recently passed legislation that reads like the script for Iraq. According to Colin Powel’s right hand man (of the time), the script looks identical. Will they do it?

    Looking forward to the UK (under court order) releasing the full transcript of the last telephone conversation between Bush and Blair prior to invading Iraq. The powers that be in the UK fought hard enough to block it. Seems an FOIA request has worked exactly as intended by joe public.

    Libya should be next on the “truth” list, especially due to the evidence that was withheld re 103. The saga is not over yet. RIP Lockerbie. Perhaps an acquaintance’s wife can now speak out having retired last year as the first female Lord Advocate. The so called release “on compassionate grounds” absolutely stinks. Was he an innocent man? Time will tell, but he was “highly recommended” to give up his right of appeal. Bribe?

    If she would like to go further, why not tell the press the truth about the suspected pedophile Judges in northern Scotland. A council doesn’t pay out £13,000 in damages to a young person for no reason. Yes.. time for a clean out of the fifth that hold positions of power and authority globally. All perfectly placed of course to do whatever they wish to others. Let’s reopen the file on Dumblane whilst we are at it. Was Hamilton part of a “ring”?

    If the “men of the cloth” are at it, so are plenty of others! The “black sun” of Saturn (Satan) doesn’t just set in the Vatican. It sets in marble at the Denver International Airport too! And elsewhere. I think the whole judicial system requires thorough investigation. Too many “Sublime Princes of the Royal Secret” and beyond? Game over for the “Luciferians”?

    There again, perhaps I read and hear too much (disclaimer).

  • Jane B

    I don’t understand why Greece can’t keep the Euro even if they are bankrupt. No more money….so what!

  • Alex

    Michael, I think that we are just about to witness the ******* getting real! The greek government bailed out 4 of the biggest banks with 18 billion euro. The Euro bonds won’t pass, there are too many counries that are against this idea and I am glad that my conutry (Bulgaria) is against that as well. They may vote for a tax on the financial transactions, which can raise some cash, but honestly…I think that eurozone is doomed 🙁 🙂

    • Michael


      I think that the eurozone is probably doomed as well.


  • Keith

    They are all going to be slaves, they already are

  • Rancher

    Sure wish these long articles about europe would tie into our daily lives and what options we have to minimize what will happen here. After all when all the dust settles what happens here in America is what will effect us Americans.

    • GaryToo

      Rancher if the dust that settles is radiocative fallout, its a transatlantic problem.

    • Excalibur

      What happens in Europe is the pre-show for America. America’s debt per capita is worse than France, Greece, Ireland, Italy, Portugal, and Spain. These are the worst offenders bringing the financial catastrophe to the Eurozone.

      Amazing to see the vast amount of storefronts, and mall kiosks advertising “We Buy Gold!”. For so many of them to be around, they must be making a lot of purchases of peoples “unwanted” gold, and silver jewelry. The question is, why are people lining up to sell their gold rather than lining up to buy gold?

      The scary thing is the majority of Americans are more concerned about what is going to happen next on their favorite, pick a reality TV show, than the financial tsunami on the horizon. From what I can gather the “smart money” is moving, or has moved, money into physical precious metals, not out. The way I see it, if it’s good enough for them, who am I to say they’re wrong.

    • Zedge Hero

      Your little world is about to understand globalization at it’s finest Rancher. Don’t worry Michael they all soon will realize how much ties Western Civilization and it’s finicial world are intangled. Europe and these articles are fundamental to understanding how the economic collpase is unfolding. There were some people in 1930’s America that thought the same about Europe news then. Joesph Kennedy being one of the isolationist -JFK’s Dad. Well Mussolini, Hitler, and Stalin then detroyed the European landscape and even managed to wipe out millions of people and create a World War like no other. This time it could be billions for the implications of oil, overpopulation, droughts, floods, wars, fukishima radiation deaths around the norhern hemisphere, water & food sources are in such a global dynamic web that when it lights fire,it can combust rather quickly and to not have an article on Europe at least once a week or even more would be like not covering that Weimar inflation debacle in pre-Nazi Germany. History doesn’t repeat, but it sure rymes. Keep em coming Michael, there are many like myself who see the implications and appreciate your Euro articles very much.

  • Christoph

    Nice article, Michael! I’m following you now for quite some time and I’m always happy when there’s a new post! Thank you for being even so fast and close to the tremendous things happening!

    Additionally to Michael’s infos I can tell everyone that there is also a court rule from sep-7-11 of the german supreme court (Bundesverfassungsgericht) – apart from the EU law! – which explicitly forbids the german government implementing Eurobonds. Unless there will be no more sophisticated dirty way around them all this medial Eurobond hype can probably be regarded as a pure entertainment show.

    That’s being discussed too little even in the german speaking community and I’ve personally never noticed mention it by any english author.

    Things are getting so tight right now here in Europe and I’m so deeply concerned about us people in the world. What will to happen to us?

    Can you also feel this strange calmness right here, right now?

    May god bless each and every single one of us!

    • Michael


      Thank you for the kind words and I am so glad that you are enjoying the articles. 🙂


      • Paranoid

        Perhaps you could find out about how the German elections work and write a short article. I’m at a loss as to how the German PM can keep losing elections and nothing happens. Do they have Primaries and General Elections or what? Thanks

        • Christoph

          Maybe I could do that next week, but honestly I also have to take a deep dive in this first. What exactly are you meaning with PM? Prime Minister??
          Short info: Germany is on paper a federal republic, there are governments in 16 big regions as well with different 4 year cycle voting dates, there the party of the chancellor and the allied party are indeed losing and this should have effects on the the federal government which is elected every 4 years as well. What kind of formal power balance situation there is right now I can’t tell you this moment.
          But hey, I would be glad if I can help

    • Kathy Smith

      Christoph I know exactly what you mean about the calmness sometimes it is very peaceful but most of the time it is scary. Go d help us all.

      • Christoph

        Oh yes, even amazingly beautiful, then there’s spring, and with a worried frown this beauty becomes sadness

        Thanks for letting me know, Kathy

  • Sandy CPA

    There is only one way this all plays out. Total euro callapse! If Germany bails out Greece, it will stay afloat for a year or two and then collapse. If Germany does not bail out Greece now they will collapse now, but the debt healing will start to begin now rather than later. Pick your poison.

  • ScoutMotto

    “”It’s just about not spending more than you collect. It’s astonishing that this simple fact leads to such debates””

    Merkel is a hypocrite. Germany is using the same banking system that got Greece in trouble. It doesn’t matter if they don’t borrow another penny, they will never be able to pay back all of their debt, simply because the amount of debt is always greater than the existing money supply.

  • What kind of a cockamamie scheme have they cooked up now? Who’s brainchild is this?

    Let me get this straight: Issue a bunch of bonds, so zuckers will buy them (like
    China and the USA) and spend, spend, spend….! Who spawned this idea?

    Once the bonds are purchased, maybe that’ll soak up some of the trillions of existing
    Euro debt, but, what about going forward? How will this plan be hatched?

    I cannot believe the screwball ideas these scumbags sit around and dream up….
    let’s keep the party going! Don’t take away the punchbowl!

    Well, the punchbowl is going to disappear, and there is gonna be one HELL of a
    hangover. Europe is gonna end up in the gutter. If the have any pride, at least
    maybe they’ll end up FACE DOWN!

  • David

    Obama needs to hear, loud and clear, from Americans on the left and right, that we do not want to subsidize this crap. No more backstopping the Euro. Hopefully, Germany will stand firm and demand sanity in the European financial system.

    Call your congressman, call the White House, and demand that we not print anymore money to trade for Euros. We shouldn’t be bailing out American corporations, much less failing Marxist economies in Europe.

  • mondobeyondo

    To paraphrase Howard Cosell’s famous call on the Muhammad Ali/Joe Frazier fight:

    “And down goes Europe! DOWN.. GOES.. EUROPE!!”

  • mondobeyondo

    My guess is that Germany will NOT give in.
    Not without a fight.
    Greece may exit the euro, and it’s very likely they will, but Germany won’t allow anyone else to. Germany has too much to lose if the eurozone crashes and burns. They will try to hold the eurozone together for as long as they possibly can.

    And then it will all collapse.

    That leaves Spain, Italy and the rest, somewhere between Iraq and a hard place.

  • whteshark

    I’m so tired of this ongoing mess. Even if the Germans agree to Euro bonds, it would only be a few years before they ran out of other people’s money(Germany). And when that happens nothing would save the Euro.

    It’s such a stupid system. The real question is do you value your liberty or do you want to be a slave? The Greeks can’t seem to figure it out: they just want free money with no strings attached.

    This problem will eventually arrive on our shores here in the United States. And this country is full of Gary2’s and there’s no way to convince them that we MUST live within our means. Liberty means nothing to Gary2’s. Somebody else has what they want; what they believe they’re entitled too. And they’re willing to force those people to turn it over.

    When that happens this American Civil Cold War between right and left will get downright hot.

  • Total Economic Collapse Presents… New Zombie Slayer Swords Website…

    …cause its all going down.

  • chiller

    Reminds me of the democrats and republicans here and the way they love to spend other people’s money. While the EU is trying to bring countries together, we’re forcing ours apart.

  • jox

    It always surprises me the hate that Americans and Britons feel towards Europeans and the Euro. Let me clarify some points that you obviously don’t know:

    – Germany had more deficit than Spain until the very start of the crisis.
    – Germany has, right now, more debt/GDP than Spain. Yes!

    So, first, forget your preconceived ideas about the hard working germans and the parasites of the south. The reality is that the global economy has changed, and all the activity has migrated to Asia (you know this very well, eh Americans?), EXCEPT some high value and high technology companies, most of them in Germany.

    We have in Europe a system that amplifies the competitive differences between countries, ans SINCE the crisis the German economy goes very well. The conclusion is that the differences between some countries are not the causes of the crisis, but THE CONSEQUENCES. And the Europeans are not begging anything from Germany. We only want to change the system in a way that mitigates the differences, not amplifies them.

    Answer a simple question: Why Germany uses a common currency, devaluated due to the effect of the poorest countries, what makes them more competitive abroad, but refuses to use a common way of financing?

    • Scotty

      That my friend sums it up nicely. All the economic activity has migrated to Asia. How does one live within their means if they no longer have any means? One way is an early death. That would reduce surplus labor would it not?
      The truth be told. both Germany and Asia will be singing the mercantile blues real soon. No more markets for surplus production for the Germans now that their vendor financing schemes are backfiring. And China, well they don’t actually feel the need to pay people enough to slurp up their surplus production. They are headed the same place Germany is despite all the Teutonic frugality.
      Oh woe unto us the dollar is failing. The next day the Chinese central bank unveils a plan to devalue the yuan to protect exporters tisk tisk.
      What we are witnessing is the great leveling. Globalization squared. No one will be spared. First it will be the elderly and the ill. Society can no longer be able to afford to keep everyone around for so long. I think next will be the so called middle class. Fat out of shape bodies will fall apart when confronted by honest labor, and a much reduced standard of living. Besides far fewer people will be needed to man phones in a collapsed and greatly simplified economy. ect ect
      The age of specialization draws to a close, no Jetsons future coming to easy our immiseration. Eventually after the die back, production again becomes local. The ground again cleared, the stage is now set for a rebirth of globalization, and so infinity.

  • don rap

    solution: ‘pass’ Eurobonds and buy from centralbank; works in USA.

  • Seratone
  • Evie

    Sears told me they were hiring so they are just laying off longer term skilled employees in search of tax break incentive employees also hoping to score on fake 401 and lousy health insurance deductions.

  • jox

    Some additional data: When the crisis started, in Spain there were a budget surplus (yes, surplus!) of 2%, the ratio debt/gdp was 38% (very low), and there were not unemployment. This surprises yo, eh? You prefer the stereotype of lazy latins living above their means and expending as if there were not tomorrow.

    But, even in those good conditions, in few months the debt cost worsened by 100 basic points. Financing become impossible for the government and for companies. They started to close and unemployment began. You see? The debt and unemployment are not causes of the current status, but its CONSEQUENCES, due to a flawed system.

  • Professor Gary

    Europe will not be saved by advanced debt strategies like eurobonds. More debt does not reduce debt obligations or interest service burdens. Default is the only means of finding a key that unlocks the chains will keep europe enslaved for decades more.

    Those who reject austerity like a few posters here are choosing to overlook the economies where this is working already. Agreed the steps necessary are not popular or comfortable but it will be required to treat the disease and make the patient eventually recover.

    Take a look at Canada, Sweden or Puerto Rico. In these countries, the new government policies are slowly changing the dependence on the state to more freedom and less income redistribution.

  • Gary2

    Ok I admit I am guilty of this:

    If you are like me, there is a good chance that at times you have prayed for a fortune of money. Especially when I was younger, I had a long list of things that I would do with abundant wealth. Of course, I planned to give some of it to others and for charitable causes, but the main point was to take care of myself. Yes, because we are sinful human beings, our prayers are often tainted with improper motivation: selfishness, greed and pride.

    • GaryToo

      Nope, not me, even people who read “the secret” accept it takes some sort of effort to get ahead even with divine intervention. maybe lie in front of a rolls royce and sue the owner for running you over.

    • justamom

      Wow, Gary 2! It took a lot of courage to confess all that here.
      Can you take it to the next level now and ask God to forgive you for this sinful motivation? Your sin is against HIM.
      Above that level is when you ask Him to change your heart and bring you to the place where you love HIM more than you love money.
      I am praying for you.

  • JAH666

    Angel Merkel made it clear yesterday at the Brussels EU summit (their 19th I believe??) that Germany has no intention of implementing the Eurobond proposal for the exact reasons that Michael has reported on above. Whether she will be bullied into the program, with ‘assurances of copliance by all aprticipants’, only time will tell.

    On Greece and their upcoming divorce from the EU, this little tidbit is being leaked on financial sites (I saw it on ZH). The Russians have become notorious lately for throwing a monkey wrench into the machinery of the EU “problem”.


    That last bit is VERY interesting. Anybody know how a nation would implement a ‘parallel currency’?

  • Optimistic Pessimist

    Loved the part – “These eurobonds would represent jointly issued debt by all 17 members of the eurozone. This debt would also be guaranteed by all 17 members of the eurozone. This would allow all countries in the eurozone to enjoy the same credit rating that Germany does, and borrowing costs for nations such as Greece, Portugal, Italy and Spain would plummet.”

    Sounds to me as if this is just a new name for Euros in another paper form. I’m amazed at the sheer brilliance of this one – addressing a debt problem by printing more paper does not solve the debt problem it just stacks it up higher until the next crisis hits.

    Sadly I don’t think the politicians realise that the credit party has come to an end, they still wish it to go on and this is what will drive us into the next crisis.

  • William

    Good time to buy good stocks in Eurozone like Portugal Telecom (PT in NYSE) with good dividends and near 52-week low. Buy when the market is fearful…Warren Buffet

  • Alasha

    “It will be interesting to see how all of this plays out.” minus the mass suicides, parents abandoning their children bcuz they can’t care for them and the overall despair due to forced austerity measures – yep i ‘spose it will be interesting to see how it all plays out. HEAVEN HELP US!!! Please


  • Washington

    Good morning patriots!

    This does shed some light on why this administration is anti Israel on everything, including anti christian as well here at home! Jarrett was born in Shiraz, Iran to American parents James E. Bowman and Barbara Taylor Bowman. Her father, a pathologist and geneticist, ran a hospital for children in Shiraz, as part of a program where American doctors and agricultural experts sought to help jump-start developing countries’ health and farming efforts.

    Valerie Jarrett From Wikipedia, the free encyclopedia

  • erheault

    Wy past time to CYAssets there is a bad storm in the near future.the wind is blowing from all directions.

  • Washington

    The Illustrated History of You Being Screwed by People Like Ben Bernanke

  • nowwthen

    Greece may be viewed as the useful idiot and allowed to exit the Euro serving to demonstrate the pain that would befall the next country to exit. The chaos that would occur during that 46 hour window described in your Bloomberg article excerpt would actually last for years and likely be something the rest of the EU would go to great lengths to avoid.

  • patriot alice

    I feel real bad for the Germans….It’s like having a bunch of relatives, who decided not to talk to you anymore if you don’t give them your money in eternity…I decided not to talk to them anymore, *********** BLOODSUCKERS…It’s a matter of who leaves who at this point…

  • Will Germany do Eurobonds or not? Either way Germany is going to end up owning Europe. All that Hitler tried to accomplish with the Panzer Tank is being accomplished through the industry of German people. Everything comes to those that wait and are industrious. And eventually everything will be taken away from those that want it all now and not willing to work hard. America take notice.

  • Jerry

    Let’s tie this in with how the US is affected.

    Put the average American in the place of Germany.

    Then put the US government in the place of the rest or Europe

    Isn’t this what our government is trying to make us do?

    They keep spending more and more and printing more and more
    money and then try to convince us that all is well.

    We are headed for a major disaster.

    We have seen two blips in the radar in the past few years.

    911 was one blip and the banking fiasco was another blip.

    Those were signs of what was about to come our way.

    However, our government chooses to ignore what is there
    and keeps on spending and printing thinking they can
    lull us to sleep.

    Find out what one millionaire has been saying for
    some time about our nation and where it is

    this is a free webinar that will enlighten you as to what is
    happening in our country and what you can do to prepare for
    what is coming our way.

    I am so glad I stumbled across this site some time ago.

    It has changed my life and I am prepared for what is
    about to come our way.

  • Henri

    The solution is for Germany (and perhaps the three other first of class countries) to leave the Euro and let the rest issue eurobonds guaranteed by the same remaining countries (By then Greece would have exited already). Of course the value of the Euro would immediately decline with respect to the new Mark, but the new ECB would be allowed to do what the Fed excels at: buying governement bonds and holding thier yields down … This would allow the Germans to keep super-low bond yields, but it would reduce the competitiveness of their exports because of the appreciation of the new Mark.

  • bojangles

    the U.S. prints its bonds,even when states like california are broke. The federal gov. still gives the money to the states. Simple solution,and it will keep everyone happy for awhile longer. Kicking the can down the road a little further lol.

  • chiller

    Germany will leave the zone to fend for its self and save ITS self.

  • Tim

    I have to say I am surprised how many people do not understand that germany can not leave the eurozone , it can’t leave the eurozone because over 50% of german GDP depend on exports and 2/3 of that on european exports.This means 1/3 of the german economy depends on the euro , for germany it would be the ultimate catastrophe if the eurozone breaks apart.Of course it will do so eventually but before it does a lot of money will be printed.For germany this is a matter of life and death , slow breakup of the eurozone accompanied by massive money priting means slow death but an exit from the eurozone is immediate suicide!!!So people , stop dreaming! German exit is not an option , voluntary breakup is not an option , only massive money printing with eventual collapse in several years from now is a viable option for germany

  • mondobeyondo

    “The only way out, is through” – Grandma

  • El Pollo de Oro

    “There is going to be financial anarchy in Europe, and it is going to cause a slowdown worldwide.”—Jim Cramer

    “If you’ve studied Rome, you know that wealthy nations do collapse into Third World squalor when they allow their currency to be debased.”—Alex Jones

    “There’s a depression in Spain, a depression in Greece, a depression in Italy, a depression in Ireland, a depression in Romania, a depression in Hungary. There’s a depression in the world. American’s in a depression. There are no jobs being created that can give you a living wage. What comes next? Currency wars.”—Gerald Celente

    “If you want to get into a good entrepreneurial business, guillotines may be in fashion.”—Gerald Celente

    “The IMF is the International Mafia Federation. They’re the loansharks of last resort.” —Gerald Celente

    “There’s quite a large chance that there will be no euro a year from now.”—Paul Krugman

    “Work harder, work longer, and earn less because the mafia needs your money.” —Gerald Celente

    “This is beyond left and right. This is about good and evil, right and wrong. And if people can’t recognize that we’re in deep trouble, they are abetting pure evil.”—Alex Jones

    “If there is war against Iran, it is going to be the beginning of World War III—and we will go into a depression, the likes of which people have never seen. This will reverberate worldwide.”—Gerald Celente

  • Kenny

    This is classic — the Ant (Germany) and the Grasshoppers (PIIGs, France).

    Ants and Grasshoppers cannot live together. Ants should stay with ants and Grasshoppers stay with Grasshoppers.

    It’s easy to see why the Grasshoppers what to mingle. But what’s in it for the Ants but extra work to feed the freeloaders.

    • Gary2

      another simplictic conservative low information explanation.

      Too bad its wrong!

      • GaryToo

        can you provide any reasoning, even simplistic reasoning, with any info even low info?

  • Laura

    I feel very sad for Germany. I lived there for 10 years, so I got a very good exposure to the country.

    Germany proved that a social system could work, if the people have the right attitude, show pride in what they do, and take responsibility for themselves even as they recognize some need help.

    The Germans are the largest per capita exporter, have the highest per capita gold reserves, little debt, a great health care system, etc.

    Sadly, they will likely try to bail the other countries out, without success.

  • Sean

    As sure as I am typing this the Germans will give in. Eventhough it is insane and could potentially destroy their economy in the process they will give in. Why? Because its what the BANKERS want. It is very simple. I have learned that in order to predict the fiscal future of events you just ask yourself WWBD. What would Bankers do?

    They WILL give in. It WILL appear to solve things for a couple of years. Till the next wave comes and they finally run out of solutions. At which point the bankers may either have another scheme or simply being fat as a tick on the fiscal blood of the citizenry…move on to their private caribbean compounds.

  • Mark

    You give the citizens far too much credit. They sat back and allowed themselves to be lied to every step of the way and were folded into a European Union without being consulted. Groups dedicated to regaining sovereignty such as the British National Party are painted as racists by the corporate wh*re media and the public goes along with this gross portayal.The EU will be saved and a dictator will preside over it all and the public won’t say a word.

  • justamom

    Michael, thank you for this article. Very informative.

    The crisis in Europe is a direct fulfillment of Luke 21:25, concerning the imminent return of the Lord Jesus Christ…

    “And there shall be signs in the sun, and in the moon, and in the stars; and upon the earth distress of nations, with perplexity; the sea and the waves roaring;”

    Clearly, the nations of Europe are in distress and no one knows what to do.

  • The Germans are in a real bind here: take on the bad debt of everyone else as the only nation strong enough to help the Euro out, or let the Euro crash. Of course, I’ve been saying since the Euro was created that it was an exercise in disaster. Unlike the United States, the states of Europe do not have enough commonality of culture, language, economic interest, etc. to hold them together. They are like a sculpture made from clay and iron. It doesn’t hold together if you try to meld an economy out of it. In the U.S., individuals almost all place the interest of the nation ahead of the interest of the state they live in. They tend to see the state they live in as something that is likely to change, but their citizenship in the nation they live, very unlikely to change. In the states of Europe, nationality ranks higher than Euro-centrism. So, the center can hold in the U.S. (maybe), but it has no chance of holding in the Euro Zone.

    –David Haggith

    • Chrissy

      The reason we in Europe can’t be compared to US is that WE ARE NOT STATES. We are sovereign countries – even though the EU would have it otherwise.

      • We were sovereign states until 1865. The civil war settled the issue of state versus national control. If things continue, I see strife and war in Europe’s future.

  • Washington

    EPA Regulations to Fix Infrastructure Problems Rand Paul Offers Amendment To Suspend

  • Nathan Brazil

    If the debtor countries had not borrowed and spent, Germany would have had a far smaller market to sell into. The German economy would be smaller, its people would be less wealthy, and they would would not be “owed” an un-payable debt. By voluntarily being the supply side of the equation they are complicit in the whole mess and cannot now claim to be blameless. Germany = China and Greece = the U.S.

    • GaryToo

      great comment

      • AT

        No, incredibly stupid comment. People who borrow money they can’t repay bear 100% of the responsibility for their situation, and the fact that so many defaulters believe the people who loaned them money should share the blame simply demonstrates their moral depravity.

  • Evie

    Show me a neighborhood that moves a pay day lender in and I will show you a quick deterioration and a slide into ghettohood. The people do not choose these stores they move into desperate areas for exploitation. I do not see any in the elite enclaves of major cities.

    • xander cross

      Good post.

  • Washington

    Revealed: Hundreds of words to avoid using online if you don’t want the government spying on you (and they include ‘pork’, ‘cloud’ and ‘Mexico’)

  • Fred

    This is all a subtrafuge-its really about the big banks trying to unload billions of dollars of worthless on to the EU taxpayers-a round about way of bailing out these banks
    while over spending is a valid concern-this is really about the transfer of wealth from the middle class to the ruling class-the banks

  • Fred

    This is all a subtrafuge-its really about the big banks trying to unload billions of dollars of worthless debt CDS and junk derivatives on to the EU taxpayers-a round about way of bailing out these banks for their greedy actions
    while over spending is a valid concern-this is really about the transfer of wealth from the middle class to the ruling class-the banks (corrected version)

  • Chris

    It’s too late for eurobonds to help the issues that are pretty imminent. It would take time to implement them, time that Greece, Portugal, Spain, and Italy don’t have. Too late in the game, IMO.

    Austria, the Netherlands, Sweden, Germany, and Finland are the ones against them…in other words, the ones with money. Aren’t those the main European contributors to the EFSF?

  • Hi!,Patrons Of The Economic Collapse Et Al:

    All each country has to do is fix prices where everyone can afford to live without debts…..right Instead of a loaf bread costing $2 for example only charge $.05 which then allows the buyer of a loaf of bread to spend $1.95 on other items…right? So, we either bring down prices to a level that’s affordable without debts or we cause a deflation that brings down prices that allow everyone to spend without creating debts in the first place….right? Simple solutions huh? Why charge so much for everyday items when prices can be fixed at totally lower rates?
    By charging lower rates for food, fuel, clothing, furniture, houses, automobiles, farm machinery, arms & ammunition, utilities, education, health care, postal services, executive pay, political pay, auto parts, eating out, taxes, household goods, paint, lumber, electrical supplies, plumbing supplies, laundry supplies, electronic & office supplies, computers, etc., etc., etc. there’s no way to create all this kick it down the road debts is there? Pass a law sponsored say by Warren Buffett that recognizes paper money as good as gold money too? Price controls on the costs of procuring all raw materials used in productions worldwide; price controls on all costs of production worldwide and price controls on all commodities and goods distributed among the general populations for their consuptions no matter what area of life is effected ought to go a long way in straightening out the debts overhaning society hadn’t it? All the solutions are so simple but alas one more step would really insure the finances of the masses and it goes like this: Each Nations’ government should send each citizen a hundred million billion quintillion quadrillion $ bill twice each hr., so that everyone has enough money to spend without unwantd debts…right? Everyone then can bcome a consumer of all levels of each Nations’ productivities without indebtedness….right? Each Nations’ government only needs to print enough paper money while applying the breaks on prices to make everyone equally rich without especially having to wasting time working which eould then be outlawed anyway….right? Who needs to work & produce anything when all everyone needs is enough money to buy everything they need regardless…..huh? Work too then should be outlawed in favor of a buying and consuming only lifestyle huh? Life is far too short to spend a lot of it working rather than eating, sleeping & playing in the sun…..right?


  • Fred

    It has been my position that Germany and Austria should leave the Euro Zone. The idea of a common currency was a noble idea, but the structure was poorly laid out and agree to by the members. Now, there is a financial crisis and all the members can do is kick the problem down the road. First, it was the EFSF, coming now is the ESM, for the future they are talking about Euro Bonds, and on and on with no solution in sight. There is no solution because the financial problem has gone on too long. Austria and Germany should leave the Euro Zone and allow the other nations to address the problem as best they can. This is not Germany’s problem, it belongs to the countries who ran large budget deficits year after year.

  • Old Man

    If Germany refuse on the Eurobond, that does not automatically mean a breakup.

    It means Hollande, not Merkle, will have to bend. It means the problem countries will simply have to swallow austerity and fix their own problems. And yes, it means more social unrest and so let it be.

    More and more, these problem countries are trying to gang up on Merkle to bail them out of their self-created misery. They can try, but it just won’t work. Because Germany has not forgotten the Great Depression and the subsequent War. Damn if they are going to let that kind of nightmare happen again by their own actions. And if the rest of the problem countries say that mean a breakup, I say Germany will dare them to proceed.

    The current Euro structure has led to the current situation because the problem Eurozone countries have failed in their fiscal management. The fix is not to integrate fiscal or political. The fix is for each sovereign member to strictly compliant to Eurozone discipline, or automatically get kicked out!!!!

  • joe

    “It’s just about not spending more than you collect. It’s astonishing that this simple fact leads to such debates”

    Wrong. This debate is long past. It is now about keeping bonds and the economy from outright collapsing due to the high debt levels governments must support. The reality is the the world wide bond market needs a huge haircut of at least 2/3 if not more. And there are only two ways to do this. The first way is ‘cold turkey’ – which is outright default. The other is just inflate it away. This is actually very easy to understand….

  • Dickens

    Here is a novel idea – abandon limited liability companies. Then watch the debt levels collapse as shareholders including directors, realise they will be responsible for them. Also ensure bankruptcy means bankruptcy. Dickens knew more about the economy in 1850 than most do today. His character Wilkins Micawber established this principle in ‘David Copperfield’

    “Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.”

  • Rodster

    Another reason why a Country should not default. Argentina is still a mess after so many years of bankruptcy and their citizens still try and avoid paying taxes. So much for socialist wanting to share in each others pain. 🙂

    Argentina: More controls for buying US dollars

    “Many Argentines only declare part of their wealth and income to evade taxes, and use black-market currency exchanges to convert their inflationary pesos into dollars. Travel agencies are the latest target since they manage multiple currencies and offer customers black-market rates for their money.

    President Cristina Fernandez is cracking down to keep hard currency from flowing out of Argentina, which needs the dollars to maintain its central bank reserves and pay debts.”

Finca Bayano

Panama Relocation Tours



Facebook Twitter More...