The Beginning Of The End
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The Mystery Of The Shemitah

Spain And Italy Are Toast Unless Germany Allows The ECB To Print Trillions Of Euros

The financial chess game in Europe is still being played out, but in the end it is going to boil down to one very fundamental decision.  Is Germany going to allow the ECB to print up trillions of euros and use those euros to buy up the sovereign debt of troubled eurozone members such as Spain and Italy or not?  Nothing short of this is going to solve the problems in Europe.  You can forget the ESM and the EFSF.  Anyone that thinks they are going to solve the problems in Europe is someone that would also take a water pistol to fight a raging wildfire.  No, the only thing that is going to keep Spain and Italy from collapsing under the weight of a mountain of debt is a financial nuke.  The ECB needs to have the power to print up trillions of euros and use that money to buy up massive amounts of sovereign debt in order to guarantee that Spain and Italy will be able to borrow lots more money at very low interest rates.  In fact, this is probably what European Central Bank President Mario Draghi has in mind when he says that he is going to "do whatever it takes to preserve the euro".  However, there is one giant problem.  The ECB is not going to be able to do this unless Germany allows them to.  And after enduring the horror of hyperinflation under the Weimar Republic, Germany is not too keen on introducing trillions upon trillions of new euros into the European economy.  If Germany allows the ECB to go down this path, Germany will end up experiencing tremendous inflation and the only benefit for Germany will be that the eurozone was kept together.  That doesn't sound like a very good deal for Germany.

Right now, the yield on 10 year Spanish bonds is above 7 percent and the yield on 10 year Italian bonds is above 6 percent.

Those are unsustainable levels.

The only thing that is going to bring those bond yields down permanently to where they need to be is unlimited ECB intervention.

But that is not going to happen without German permission.

Meanwhile, the situation in Spain gets worse by the day.

An article in Der Spiegel recently described the slow motion bank run that is systematically ripping the Spanish banking system to shreds....

Capital outflows from Spain more than quadrupled in May to €41.3 billion ($50.7 billion) compared with May 2011, according to figures released on Tuesday by the Spanish central bank.

In the first five months of 2012, a total of €163 billion left the country, the figures indicate. During the same period a year earlier, Spain recorded a net inflow of €14.6 billion.

If those numbers sound really bad to you, that is because they are really bad.

At this point, authorities in Spain are starting to panic.  According to Graham Summers, Spain has imposed the following new capital restrictions during the last month alone....

  • A minimum fine of  €10,000 for taxpayers who do not report their foreign accounts.
  • Secondary fines of  €5,000 for each additional account
  • No cash transactions greater than €2,500
  • Cash transaction restrictions apply to individuals and businesses

How would you feel if the U.S. government permanently banned all cash transactions greater than $2,500?

That is how crazy things have already become in Spain.

We should see the government of Spain formally ask for a bailout pretty soon here.

Italy should follow fairly quickly thereafter.

But right now there is not enough money to completely bail either one of them out.

In the end, either the ECB is going to do it or it is not going to get done.

A moment of truth is rapidly approaching for Europe, and nobody is quite sure what is going to happen next.  According to the Wall Street Journal, the central banks of the world are on "red alert" at this point....

Ben Bernanke and Mario Draghi, with words but not yet actions, demonstrated this week that they are on red alert about the global economy.

Expectations are now high that Mr. Bernanke's Federal Reserve and Mr. Draghi's European Central Bank will act soon to address those worries. But both face immense tactical and political challenges and neither has a handbook to follow.

So what happens if Germany does not allow the ECB to print up trillions of new euros?

Financial journalist Ambrose Evans-Pritchard recently described what is at stake in all of this....

Failure to halt a full-blown debt debacle in Spain and Italy at this delicate juncture - with China, India and Brazil by now in the grip of a broken credit cycle and the US on the cusp of fresh recession even before the “fiscal cliff” hits - would tip the entire global system into a downward spin, triggering the sort of feedback loop that caused such havoc in late 2008.

As I have written about so frequently, time is running out for the global financial system.

Even Germany is starting to feel the pain.  This week we learned that unemployment in Germany has risen for four months in a row.

So what comes next?

There is actually a key date that is coming up in September.  The Federal Constitutional Court in Germany will rule on the legality of German participation in the European Stability Mechanism on September 12th.

If it is ruled that Germany cannot participate in the European Stability Mechanism then that is going to create all sorts of chaos.  At that point all future European bailouts would be called into question and many would start counting down the days to the break up of the entire eurozone.

If Germany did end up leaving the eurozone, the transition would not be as difficult as many may think.

For example, most Americans may not realize this but Deutsche Marks are currently accepted at many retail stores throughout Germany.  The following comes from a recent Wall Street Journal article....

Shopping for pain reliever here on a recent sunny morning, Ulrike Berger giddily counted her coins and approached the pharmacy counter. She had just enough to make the purchase: 31.09 deutsche marks.

"They just feel nice to hold again," the 55-year-old preschool teacher marveled, cupping the grubby coins fished from the crevices of her castaway living room sofa. "And they're still worth something."

Behind the counter of Rolf-Dieter Schaetzle's pharmacy in this southern German village lay a tray full of deutsche mark notes and coins—a month's worth of sales.

I have a feeling that it would be much easier for Germany to leave the euro than it would be for most other eurozone members to.

The months ahead are certainly going to be very interesting, that is for sure.

Europe is heading for a date with destiny, and what transpires in Europe is going to shake the rest of the globe.

Sadly, most Americans still aren't too concerned with what is going on in Europe right now.

Well, if you still don't think that the problems in Europe are going to affect the United States, just check this news item from the Guardian....

General Motors' profits fell 41% in the second quarter as troubles in Europe undercut strong sales in North America.

America's largest automaker made $1.5bn in the second quarter of 2012, compared with $2.5bn for the same period last year. Revenue fell to $37.6bn from $39.4bn in the second quarter of 2011. The results exceeded analysts' estimates, but further underlined Europe's drag on the US economy.

Profits at General Motors are down 41 percent and Europe is being blamed.

The global economy is more tightly integrated than ever before, and there is no way that the financial system of Europe collapses without it taking down the United States as well.

And considering the fact that the U.S. economy has already been steadily collapsing, the last thing we need is for Europe to come along and take our legs out from underneath us.

So what do all of you think about the problems in Europe?

Do you see any possible solution?

Please feel free to post a comment with your thoughts below....

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  • mark

    There is no easy answer. First you can’t fix a debt problem with more debt. More debt just kicks the can down the road. In the end the holders of the debt will demand payment. The pension systems are broke and the retirees will demand payment. They can’t all be paid back, so who will suffer from a default. The wealthy that control political power and armies will try the hardest to stay wealthy. The unknown is if the common man, the middle class, will be willing to work as serfs to continue to support those in power.

  • Skip Breakfast

    Funny that even you are proposing that ECB bond buying is the only “solution”. I actually think you’d agree it’s still not a solution. There are too many trillions of debt to possibly roll over with taxpayer-backed buying of bonds. They could never keep up. Just as The U.S. will ultimately not be able to backstop its entire debt through quantitative easing. Eventually the debt will have to be wound down. Bond buying is just putting everything off with the hopes that “something will get better” in the future. But in this case, it can’t get better. The problem is too big.

    This is a totally SEPARATE problem from the fact that, regardless of whether bond buying is a “solution” or not, Germany will never EVER green-light bond buying to the degree necessary to even make a dent in things.

    Sometimes, we have to admit there is no solution. Some things are un-containable. Some diseases of un-curable. We can’t turn lead into gold no matter how hard we try. And so we have to accept that “no solution” is the solution. That is, we just have to prepare. Everything else is just nudging the inevitable result a year this way or that.

  • mondobeyondo

    The pain in Spain falls mainly on the plain, but soon will drive us all insane.

    Get ready, this thing ain’t over yet. Not by a long shot. Coney Island has nothing on this ride we’re about to take.

    Much of Europe is practically broke. America is broke, too. We just have too much pride to admit we are broke. When one out of 7 citizens of your country are on government food assistance, and you call that “progress” and a “recovery”… well, you know… umm, there are no words.

    Don’t worry. We’re fine. Keep kicking the can down the road, until we end up kicking the bucket.

  • TtT Engine

    The power to tax, ultimate power, corrupts ultimately. For decades, Governments have refused to balance their budgets or they have done so with taxation and debt. They have obesified government with taxation and debt [theft]. Look at the number of taxes, costs, fees and tolls built into our system. These pirates are closing in on air, space and movement taxes [Al Goreleonie and the Green Mob]. They will now be forced to balance their budgets after crashing the system. There has been decades of reckless government spending and now rather than admitting the evil of their ways, they are doubling down on taxation [sneaky hidden taxes]. The wage earners could donate 100% of wages to the Federal Government and it would not even touch the deficits we are drawing. Trillions of dollars in debt and look at the condition of our highway bridges, many ready to collapse [Tappan Zee], just like government. Left wing corrupt governments have crashed the system. Moral depravity always leads to financial bankruptcy. We have broken our alliance with, In God We Trust, through abortion, free sex, gay marriage and pornography. What now ? Will God give us anymore time or will he call home those that love Him ? Governments are like alcoholics. They are an elevator falling to the ground floor. They can stop the elevator/spending at any floor with free will and reason, or they can allow gravity to crash us at the bottom. Governments are morally depraved and unaccountable. Judas Catholics have paved the way for all of this by their sinful 40 year voting patterns. They have stolen our tax dollars and bankrupted planet Earth. If we even make it until Nov. 6, 2012, vote for Dam Mitt Romney. God is first and Romney is second for the Red, White and Blue to start our 12-step program to moral and financial sobriety. Without prayer, acts of reparation and divine intervention, tell the Fat Lady to start singing. Christi Fidelis !

    • sharonsj

      TtT Engine: too much hyperbole and not enough facts. Abortion, free sex, gay marriage and pornography have nothing to do with our problems, but corruption–both on the left and right!–does.

      We have multi-billion corporations paying no taxes at all while folks like you think the poor are getting too much help. Our laws are being written by lobbyists and right-wing organizations and of course they are writing laws in their favor.

      And if you think Romney gives a crap about anybody who is not filthy rich, you are deluded. He is for the Ryan plan, which gives tax breaks to the rich, raises YOUR taxes, and gets rid of Social Security and Medicare.

      • Kent

        sharonsj: So you think that by destroying the families in our country we are better off. 50 years ago they took the Bible and prayer out of the schools and as result we now have a society that no longer functions. 41% of babies born out of wedlock, 1/2 all marriages end in divorce, crime in the US is up, and a government that won’t provide for the common defense or to allow people the freedom to choose healthcare of there choosing. Karl Marx in his Communist Manifesto knew how to destroy a society and he was right. Take a look at the Communist Manifesto and you will see our country is in rapid decline. http://www.libertyzone.com/Communist-Manifesto-Planks.html

        • Kev

          You are correct Kent.Marxism is behind all that you see.Here in good old Blighty we are enjoying the fetid fruits of Fabianism.

        • Gay Veteran

          there will be prayer in school as long as there are algebra tests

          oh, you meant state sponsored prayer, yeah that’s gone (but of course silent prayer remains as always)

          and which states have the highest divorce rates? the Bible Belt

      • knightowl77

        You’ve been listening to the liar in chief too much. Do you really believe everything Obummer tells you? Wow….
        Keeping the tax rates the same as they are now is NOT a “tax break for the rich”.
        In Feb 2010 Obummer argued against raising taxes on anyone saying the economy is too weak to raise taxes….It is weaker now, and the guy in charge now wants to raise taxes as if that would supposedly create new jobs. Total Bovine Excrement….
        RNC and DNC talking points are B.S., so please come up with something that does not come from Wasserman-Schultz or the Kenyan…..

      • Me

        I disagree that they have nothing to do with it. Although exactly precisely HOW they do takes an entire treatise. Read the Garbage Generation.

        Short version: no families = no economies of scale. Atomization of a populace means everyone buys their own everything. No shared expenses.

        Furthermore…

        Instituionalized divorce = massive cash outflow to no productive purpose.

        Furthermore…

        No stable future = even less incentive to save than already exists.

        Don’t tell me there’s no connection.

      • Glide

        Sharonsj right on!!!! Perfect and to the point. Greed and corruption brings the train wreck.

    • Louise in MO

      TtT ENGINE

      Great post! You nailed it!

    • Gay Veteran

      “…Moral depravity always leads to financial bankruptcy….”

      the biggest example of our moral depravity was our war of aggression against Iraq

      did you support that?

      • TtT Engine

        We experienced the worst terroristic attack on U.S. Soil in our nation’s history on September 11, 2001 [NEVER FORGET!]. I see in town frequently two widows who have raised their children alone since the mass murders on 911. One was pregnant when her husband was murdered by the radical Islamic murderers on 911. This paved the way for the metastasizing of Radical Islam throughout planet Earth. Our American Hilal response to 911 since then has been a weak disgrace to the red, white and blue. A true military response was necessary if you believe in good v. evil and a Judaio-Christian value system. Any country that sponsors terror would have been a reasonable and just cite for an American military response to 911. My choice would have been the Hitler of Iran, Achmadinejad. He plans to wipe out Israel just like his brothers in evil wiped out 3,000 innocent Americans on 911. Weapons of mass destruction was a liberal left wing pre-condition that was irrelevant and unnecessary. Without a belief in just wars and self defense you have imprisoned yourself to the dictates of evil dictators like the ones running all the communist countries and the Islamic theocracies. Your days are numbered because freedom is never for free. Have you forgotten the blood and lives that were given for the freedom many Americans now take for granted ? Christi Fidelis !

        • Me

          Erm Iraq had nothing to do with anything.

          Saudi Arabia did.

          See the problem there?

        • Davidus Romanus

          First. A military response is necessary only when you have another military you can fight and defeat. 9-11 was a criminal attack, not a military attack.
          Second. Please explain to readers how two planes hitting two buildings caused three buildings to collapse. Whatever happened on 9-11, and I don’t claim to know, it’s not what the gov’t says happened.
          Third. How does the killing of 3,000 people here allow us to wage a decade of war on people who had nothing to do with those deaths? Killing innocent people in Iraq and Afghanistan does not equal justice. It only makes more widows and orphans. Those wars were both unnecessary and unjust.
          In America, if I kill your wife, you bring me, and only me, to justice. You don’t go back to my home town and kill my wife and kids and some of my cousins. That would make you a murderer just like me.

        • Gay Veteran

          9/11? Iraq had NOTHING to do with 9/11

          the only country in the Middle East with nukes is Israel. if you had an armed hostile neighbor wouldn’t you want a gun?

          Hitler? more neo-con war-mongering propaganda

          just war? our war of aggression aganist Iraq was a monstrous war crime! how dare you invoke the Prince of Peace!!!

        • Glide

          TtT Engine ask the people of Iraq if they are happy the US came to their country to “liberate” them. The country is a wasteland except for the worlds newest and largest US Embassy, or should I say military fortress. My heart goes out to the Iragi’s, US military members and families who have lost loved ones. A fruitless attempt to force our will on other people again. Do a google search of the Phosphorus Bombs dropped on Fallujah. 90% of babies born since have major birth defects. Yes bombs had traces of uranium in them and even US soldiers involved have serious health problems. Once again way to go USA in promoting freedon around the world.

        • A.S.

          Correction–murdered by the U.S. gov’t via the biggest and most secret false flag after the JFK assassination.

        • GaryToo

          ttt you must believe all the pretext for now trating your own domestic population as the next tterroorrriiissstt target. I have to say people as stupid as you deserve it. read the old article on all the executive orders against domestic threat target, 450m 40 cal hollows, femur camps, and all that just for you as a rerward for blind support of anything they do.

  • T. Loki

    Here’s an idea. Each country should take their gold reserves and mint them into coins. Distribute the gold coins equally to every citizen. At the same time cancel all paper debts… Viola… instant gold standard.
    Sound crazy? It is but not as crazy as what’s going on now.

    • mike

      Yeah I like your idea, BUT, they simply cannot do that. For heavens sake they would find out that it’s all a bunch of gold coated tungsten. Then we would all be **********.

      • Me

        Ohh you mean like the time that… ^^ LOL!

        I heard about that… I dunno who it was that called in their gold but I heard of that…

    • S Geezer

      have you considered the simple fact that FED along with other central banks has the majority of the world’s gold?

    • Gay Veteran

      yeah, and we would immediately ship our gold to those countries we import oil from

    • Bone Idle

      Most countries would not have enough gold to distribute less than .000000001 of a gram to each citizen.

      There is only around 160,000 tonnes of “allegedly” known gold around the world. A large percentage of this is in Asia in the form of gold jewellery.

  • Paula W New Zealand
  • H8TheFed

    The pictures of the German Weimar Republic Hyperinflation offer a possible glimpse of our future here in the U.S. Some years from now I picture myself walking into a FEMA camp restroom and seeing stacks of hundred dollar bills left there for toilet paper. Or people can burn them in their fireplaces to heat their living space (I believe that actually happened during the Weimar hyperinflation). Not a pretty picture to see the worth of ones life savings reduced to zero. I am sure taxes will increase as fast if not faster than hyperinflation. What a mess.

  • http://www.kucilooro.com KuciloOro

    The only way to resolve this situation is Germany to exit euro, and leave everyone else in the Eurozone.
    So the ECB can print endlessly……everybody will be happy for a while…..

    But that kind of solution will be also painful for Germany in time. Because German mark will be soon stronger against the US dollar and the Yuan……

  • Mahathirism

    Yes, I do see the speculative solution.
    Keep in mind USA had bought themselves insurance policy a long time ago.

  • Paul

    Whatever you do, don’t tax the rich!

    • Paul

      Yes, never ever take money from those who have more than they possibly can spend.

      Always break the poor who can’t fight back. And if they don’t pay, put them into prison and let them work for nothing, putting regular paid jobs under even more pressure.

      It would be much more profitable to invade Liechtenstein and the Caymans than Iran or the Falklands.

      • stymie

        Seize 100% of the assets of the 500 wealthiest Americans. That’s how much we borrow in 3 months. Now what?

        • Paul

          Where does the money go the state borrows – it goes to the rich. Where else would they have it from?

          So you take it from the rich, then give it to the rich, no need to borrow anymore.

          Problem solved.

          Recall all soldiers from foreign soil.
          Do not spend any more money on fuel for war ships and jets. Let the “defense” industry go bust. That’s where a large amount of the borrowed money went.

          Keep the soldiers employed.
          Let the soldiers do firefighting and reforestation, clean up rivers, plant new maize. Lot’s to do for the good of the country.

      • knightowl77

        When and only when the Gov’t stops spending more money than it is currently taking in would be the right time to discuss raising taxes on the wealthy to reduce the debt, not to increase spending again…..

        • Pitchfork Ready

          Exactly, knightowl77, I’ll vote to raise taxes the day the a balanced budget amendment is ratified.

          Until then long live obstruction! Nothing is better than what I saw from the Obama administration the first two years.

        • Gay Veteran

          ok, let’s abolish Medicare and Medicaid and cut the bloated Pentaton budget by 75%

    • Me

      Sigh… build a productive economy. Then a lot of your social spending programs become largely irrelevant.

      The problem here is where we all differ from the 1% as to what = “productive”.

      For us, “productive” is essentially nationalist minus the massive “we’re better than everyone else” chip on the shoulder of early 20th century Nationalism. It means we punish people for offshoring and using slave labor via heavy taxation, and we tarrif imports.

      Sadly this leads to a short-term massive explosion in prices that probably wipes out large swaths of the impoverished anyway. But… I’d rather see social safety nets in this context, aimed specifically at getting us over the (probably multi-decade) hump of re-adjustment to this new way of doing things. As opposed to social safety net programs aimed at sweeping problems under the rug and pandering for votes.

      Unfortunately, THEIR version of “productive” = 500,000,000 people and a bunch of Soylent Green. About 6.5 billion cans of it. And somehow I get the impression that few of those 500,000,000 top dogs have any allegiance to our nation.

  • OLdFART

    Yea, printing Euros will help. Norway dodged a bullet by not joining the Euro. Has GM paid back all of the bailout money? I have a friend whose husband works for GM. She just came beck from a trip to Spain, and the $7K bonus GM gave their employees last winter probably helped. Pisses me off that I subsidized her trip, since her husband makes twice what I make. GM should have been liquidated.

    • David B.

      GM would not have been liquidated – bankruptcy does NOT MEAN LIQUIDATION!! Bankruptcy mean reorganization. Quit listening to Obama please, will you??

      • OLdFART

        GM did not deserve a reorganization. It should have been liquidated.

  • Martin

    The faster entire EU collapses, the better.
    System here is beyond repair and it seems that it is best to kill it to shorten suffering.
    German pull out would do.
    Socialism doesn’t work.
    It is simple like that.

  • http://www.hamsayeh.net Arash

    Here from Tehran our analysts have already anticipated the ongoing economic crises in US and Europe as a result of some unelected neocon leaders’ continuous fiddling around with Iran.

    When we read your excellent articles it seems that as compared to US and Europe we’re experiencing an economic boom despite years of sanctions. Currently Iran has plenty of savings without any outstanding debt.

    Obviously at this moment in time the necons are scared of peoples’ pouring onto streets of Washington, London, Paris … so let’s divert peoples’ attentions away from domestic issues and blame everything on some imaginary enemies (Iran, Russia China, Venezuela …) from outside instead,’ Obama and his allies may be saying this to themselves.

  • Airborne71

    Those who Ignore History are doomed to repete it ! This was tried in the 1930s in Germany , all it did was make paper money worthless . We here in the USA are doing this now and not too long in the future our chickens will come home to roost . You can’t print money and back it with nothing , Just let Spain and Italy declare Bankruptcy and go thru the process of putting themselves back togather and hopefully they will learn a hard lesson and become better for it. Other countrys have done this and they can too.

  • Bill Goode

    I suspect Bernanke will come to the rescue. He doesn’t want the Euro to fail any more than Draghi does. They are both committed to this insane currency, the Euro. The bankers have to keep the Euro going because it’s a step toward their world domination. They don’t want to take a step backward. Of course the American taxpayers will be on the hook for this. Bernanke did this before – $16 trillion. But he is getting a little nervous, because he now has Congress looking over his shoulder a little bit more than he likes. But either Bernanke comes to the rescue or the Euro goes down. He can hide for a while from Congress. Perhaps he is hoping Congress will just go away – distinct possibility as Obama builds his dictatorship and causes Congress to become more and more irrelevant.

  • Excalibur

    The only reason I can think of for Spain wanting to know where people’s bank accounts are, is they intend to seize those accounts in a widespread bank holiday. So therefore, the currency isn’t really leaving Spain.

  • Doug the urban farmer

    The problem for Germany is that their economy is substantially dependent upon high-tech and high-quality exports, with the bulk of these exports are to other European countries. As the economies of their primary customers decline, so does their own economy and GDP, as reflected in currently increasing unemployment. Germany is chasing its own tail and their efforts to support their customer base in order to maintain export levels will have too great a cost – too great and too soon.

    • OLdFART

      Right. They should keep throwing good money after bad.

  • Rodster

    I think Germany will be pressured to allow the printing of millions of Euros just to stem the flow but it won’t be enough.

    Why isn’t France included in this mess? They are also a basket case.

    Somehow Nigel Farage must feel pretty confident on his call of the Euro Zone imploding.

    Funny how Spain copied Italy with regards to banning cash transactions over $2500 euros. And what I have seen the current US Administration pull off while in power. I would not put it past them banning cash transactions over $2500.

    I’m sure according to Obummer and Gary2 that would make you a rich person. Because regular folks would never have that kind of disposable cash. ;)

  • pete

    Heck yes there’s a solution!!!

    You tell the central bank to go blankety blank blank and you give them the middle f.

    Then, you regain sovereignty by printing a metal backed currency. You cut the size of your government in half and lower taxes.

    You hire Austrian economists and give the Keynesians a choice of a plank or a firing squad.

    The notion of steering back onto the path or fixing something that is hopelessly broken, condemning your “future generations” to poverty is BS.

    You cut out the dead wood, pick the weeds, turn the soil, add water, light and nutrients and watch us grow. As long as we leave filthy, greedy, stinking usurious bankers in charge…we are going to be kept chained to the ball and swinging the pick.

  • rm

    They will print money just like us and the stock market will take off.

  • Zedge Hero

    “It’s the final countdown”

    Guess who sang that song? You got it-Europe

    http://www.youtube.com/watch?v=9jK-NcRmVcw

    • Michael

      Very nice!

      That song was very popular back when I was a teen.

      Michael

  • alisa

    RONALD ERNEST PAUL is the only one with the right solutions for the U.S.!

    • GSOB

      You got that right alisa

  • El Pollo de Oro

    Michael T. Snyder makes an excellent point when he says that Spain and Italy’s economic misery will inevitably affect us over here. There’s no doubt about it: as things go from bad to worse in those countries, it will cause us considerable pain here in The Banana Republic of America (formerly Gli Stati Uniti). When economies of that size are in such sharp decline, there’s no way the BRA can avoid the fallout.

    España’s an absolute mess. The Spanish youth unemployment rate is a mind-blowing 52%, which is a recipe for major civil unrest. And España is seeing plenty of that. Por ejemplo:

    http://www.youtube.com/watch?v=wI-DxTWWk5s

    http://www.youtube.com/watch?v=fwHy5GRzD4o&feature=related

    http://www.youtube.com/watch?v=H1ufuQtfXZQ&feature=related

    http://www.youtube.com/watch?v=R0jZ5MNBlsg&feature=related

    Many españoles have come to view the riot police as the banksters’ goon squad, and some of them have been voicing their hatred for la policía by tossing flowerpots from their balconies in the hope that they’ll land on a riot cop’s head. When you have a country with 52% youth unemployment and a widespread belief that the cops are nothing more than thugs for bankster criminals, you have an absolute powderkeg on your hands. España, like the BRA, is un-developing and becoming a Third World banana republic—and as you can see in those videos, españoles jovenes aren’t happy about it.

    “The banks’ profits are obscene. The fact that these governments are bailing them out continuously is simply unconscionable. Now, of course, the people realize this, and they are upset about it. But of course, the politicians do absolutely nothing to rein in the banksters and instead, put out the police to start—to be quite blunt about it—cracking heads. ”—Gonzalo Lira, LiraSPG.com

    In the words of Gerald Celente: “When people lose everything and have nothing left to lose, they lose it.” Que dios ayude España, che dio aiuti Italia, and God help the rotting, decaying, collapsing Banana Republic of America.

  • Larry

    If Germany did end up leaving the eurozone, what would happen to the euro and the rest of the eurozone countries?

    • Michael

      The euro would go to all-time record lows very quickly, and the rest of the eurozone countries would be in a huge amount of trouble.

      Michael

  • http://back2theland.com Old Timer

    I think I will invest in printing presses.Paper recycling looks good.

    OT

  • El Pollo de Oro

    Una manifestazione violenta a Roma:

    http://www.youtube.com/watch?v=KT9LFuhr36M&feature=related

    E così sarà La Repubblica Banana di America. Take a good, hard look at the violent unrest in Italia e Spagna because that’s what we have to look forward to as the BRA goes from bad to worse.

    • Save the Republic

      I applaud the people of Italy for uniting together and taking it to these scum. This is what needs to happen at the Federal Reserve and in Washington. I believe this will eventually happen in the US, but only when the brainwashed sheeple finally turn off the TV and wake up. When you can’t provide the basic necessities for your family, that has a way of waking you up pretty quick. Tick, tick, tick….

  • ALICE

    They are NOT toast…Europe will print trillions of Euros like we like will print trillions of Dollars, making both Europe and the USA more competitive with other countries…It’s true that a devaluation of these currencies will throw many of our citizens into poverty, but it will also create a new and much larger class of minimum wage workers, ready to make our work force more competitive…We will survive, don’t worry, we have the best financial minds in the world running our country…

    • Anon

      “…we have the best financial minds in the world ruining our country…” There, FIFY. No thanks neccessary.

      • GaryToo

        good one haha!

    • Pitchfork Ready

      Running or ruining our country, Alice?

    • Save the Republic

      Yipee…can I become one of this new class of minimum wage workers? Do I have to get there early? Will there be a long line to enter this class? It sounds like something too good to miss.

      If you like the scenario you mention, you can gladly take my place in that class.

    • Save the Republic

      Can you tell me where is the line for the less competitive, higher paid workers? I prefer to be in that one.

  • Sharath

    Hi Michael,

    You have mentioned many times about the problems FED has created and that it is in the best interest to disband it completely. Can you put forth your thoughts on if this were to happen, what possible solutions are there with us.

    Now there is a central bank in almost every country in the world. How would this transpire across geographies. Do we really have an alternative to debt based economy ?

    • Michael
    • Davidus Romanus

      The solution is to repeal all legal tender laws and let everyone use whatever they want as money. People would sooner or later lose faith in FRNs and choose gold, silver, oil, or whatever else they thought would provide a store of value. Then the central banks could print all they wanted and it would make no difference because their notes would have no value. You would then need an actual thing of value to lend to someone instead of creating debt out of thin air by keystroke in a bank’s office. So there would be no debt creation. All debt would be something (capital) which someone had saved (instead of using) in order to lend it to someone. End of inflation. Savers will not have their purchasing power destroyed by central bank printing.

  • http://Survive2balive.com GA

    There is no viable solution. Why should Germans be left holding the PIIGS bag? The only solution for the entire global economy is a reset. It’s too far gone. A viscous cycle. If Germany does give in then they will demand austerity. We have seen was austerity does to an economy. It just makes a bad situation even worse. Hit the reset button…not the cntrl p buttons.

  • jsmith

    It’s incomprehensible for us Americans to see a photograph of dollars being swept into a sewer, yet this is what happened in Germany. But it can’t happen here. Or can it?

    • Barn cat

      The official answer is, no, of course not. This is AMERICA! The dollar is the world’s reserve currency. The rest of the world needs us. They can’t wait to buy our debt.

      The real answer is, yes, the dollar is doomed. The Fed creates billions of new dollars every month to fund the government.

  • Grim

    Max Keiser has the right idea, the first thing to do is to ******* the criminal bankers after a big public trial.

    Until the creeps responsible for the mess are punished can anything get better, ever?

    The same financial scammers will just go on and keep doing what they have been doing no matter what the current system is replaced with unless they are stopped.

    • Barn cat

      Like that’s going to happen. John Corzine from MF Global is a big bundler for Obama. He’ll never see a day in jail. Trust me.

  • sharonsj

    The Eurozone doesn’t have enough money to bail out the half dozen countries going broke–and Spain keeps changing the amount of money it needs from $10b to $55b to $200b. These counties no longer have the right to print their own Euros but I thought the ECB didn’t have the power to print Euros either. (Articles on other financial sites don’t even mention this.) My feeling is that the European Union will break up and I second Max Keiser’s idea.

  • TimeTraveler

    There is only one solution, and that is to let these economic gangsters and their illegal gambling casinos to evaporate off the face of the Earth! The system is dead. There is no need for resussitation!

    Let it go, and let humanity begin a new journey to a place where none of this will matter anymore. A place where true freedom will finally be experienced by humanity. A place where wisdom will prevail, and the knowledge of the universe will be experienced by all!

    This collapse of society was planned out a very long time ago by the very dark entities that formulated the Federal Reserve. It is much easier to collapse a society by economic means, and dumbing down their minds by drugs, chemicals, and video brainwashing.

    I wish there was a magic bullit that could fix everything that humans have done up to this point in this reality, but there isn’t. There isn’t any time left, for the implosion of this society is at hand. I wish I had better news, but this is something that cannot be changed.

    It is not of your choice any longer, it is in the hands of a much greater force, and that is the Source of all Creation, your Lord our God! The good news is that this is the way it’s suppose to be. As the planet rebirths, so shall humanity, and the ones who are awakened to this will transform into a new race, one of the Light, as above so below, as we are all Gods, and the universe is in all of us.

    So shed the chains of a dying system, and believe in the one thing that can change this reality, and that is the human heart, and the Light that resides in all of you, the power of Love, it will provide you with everything you need.

    This planet is a sacred place, created for the human race. Humanity has abused her, and now is the time for her to take back and cleanse herself of the crimes against her. In doing so, the slate will be wiped clean, as it was 6,000 years ago when the floods came.

    It is time to repent, and empty ones thoughts, and let the balance between you and this planet become as one, as it once was many thousands of years ago, Visualize a new world, without the greed and coruption, a planet that is once again virgin and with high energy.

    Become one with yourself, and the harmony of Light that will come forth will join with others, and once joined with the feminine energy of Gaia, will shine a light so bright it will shine thru to the center of the Milky Way, and the transformation will be complete.

    Believe, and it will come forth. some of the human race are in store for quite a wondrous journey, one that is unimaginable to most now, but it is at your doorstep, you just have to open that door and go thru.

    Are you up to the task of opening that door?

    TimeTraveler

    • GSOB

      To Time Travler:

      What planet are you from?

  • Hugo

    First of all thank you for all you do. Since Iam from Northern Europe it gives me an idea about the situation in the USA. I lived in your country for a year early 1990. Since I have an European ”vieuw” on things the least I can do is offer the only solution I see for EURO(pe).

    I have to put this in a bit of an historical perspective to answer your question. As you know Europe likes gold. Combined the European countries hold more gold then the USA (ofcourse we have to take their word for it its there). The reason Bretton woods broke up is because France wanted its gold for the fixed price. They didnt get it. Nixon closed the gold window. The world faced a big dilemma. The Dollar was the only thing around for international trade. That would have ment world trade would collapse in hours including the flow of oil. That would have ment a disaster. So the decision was made to by the worlds central bankers to stick to the dollar. Big middle eastern oil producers were very unhappy with this. They also like gold, they have lots of black gold and like to replace it with real gold. As you might, for a very long time they want to re-introduce gold and silver as usury / interest free money as the Koran demands.

    By not being able to do anything with their Dollars but stacking them and see their value get diminished by all the printing of Dollars they gotten really upset. Hence the oil crisis of 1973 and 1979. The deal was made with Saudi Arabia and their friends. You get gold and / or get your country modernised + you get military protection. You give us oil. The rest of the world would have to keep using the Dollar and a new system was born and a hyperinflation of the Dollar prevented since dollars had use again. The European countries were not that happy since they want gold still EUrope needed the US protection against the commies and were still very gratefull for the liberation after WO2 so went along without too much strubble. Still Europeans know no reserve currency will remain. History since the Roman times clearly tells us that.

    Not wanting to get caught unprepared again Europe started working on a currency that could replace the dollar. It had to be big in size and volume to be able to pay (not settle) international trade and it had to be acceptable for payment for oil. The result was the lauch of the Euro. Not fixed to a country nor having a fixed link to gold. (The love of paper of the Western people would keep them out of the physical in the mean time by keeping the price under control (and low) around 3 times all gold in existence is traded in London each year). It almost failed twice. Once because of the Westerners in the inflationary times of the eighties and late 1990 because of the Asians. The Russians also joined the pro gold move.

    Since the launch of the Euro the price was cut partially loose and started a managed advance. For this to work the gold has to be spread as wide as possible over the public. Even in the USA a few states joined the move and let gold and silver circulate as MTM (mark to market) value in the economy since they know the dollar will fail. Now the USA is in a big ”balancing act” on the one hand keep the world into the dollar saving and on the other hand their people.

    Nobody in the world want to be seen as the one who killed the dollar by killing the paper gold market since the transition will be very bumpy to say the least. Just let the market (superorganism) do its work. What the Euro did underestimate is that China would take over the role of supporting the dollar. This caused big distortions WITHIN! the Eurozone. The external situation is roughly in balance. This unlike the USA who runs a deficit since ages.

    Now you probably know that Dragi recently said ”we will do anything to save the Euro”. I read it as we are willing to destroy the papergoldmarket so all central banks in Europe van bail out the banks and recapitalise them using gold and ofc print a ton of Euro’s. This will destroy the US dollar aka treasury bonds. Never forget gold (in size) prices the dollar and the dollar prices the rest. That is about to change.

    European countries at least try to balance the budget. Serious cuts are made. This in contrary to the US. So if I see it right, Draghi made a direct treath to Bernanke. We try a gradual shift, EUrope will use this time to adjust but if you try to destroy us, we destroy you. Asia is happy to stack and get golden strenght (South Korea, one of the most faithfull US supporters is even buying gold). Middle east is more about protection and offence now… Sad story…

    I think this was the plan and I hope that it works out. Thats the only way I see the EUro survive. I think the BIS is into the game. But trying to observe the ”big game” (as we call it here) is hard. One thing is sure for me, gold, oil and fiat…. strange relations and something gotta give and I bet its fiat. Lots of paper will burn and become worthless. We will learn that government promises are worth around 0 cent on the dollar and 10 the Euro. If not and fiat fails globally…. back to… I dont know… Remember it took around 1500 years to relearn cement (Romans knew it).

    “Everyone knows where we have been. Let’s see where we are going!”

    Hope you found some value in this post.

    • Greg

      Excellent post Hugo. You packed a lot of information into those few paragraphs.

  • Evie

    A cost for cash transactions will be coming to the usa soon.
    The elite do not want cash as it cannot be controlled by them and they do not know how it is spent.
    But when they have laws like that people will just make it a 2.transaction deal.

    • Save the Republic

      Actually, I just read an article that retailers are going to start charging the customer the 3% transaction fee that they used to pay when goods were bought with a credit/debit card. This will cause most consumers to return to cash (except for those who are living off of debt, in which case they will become even more financially burdened and default=no more card). It looks like the elite’s evil plan is about to backfire.

  • Lennie Pike

    Western banks are more broke than governments. 19 trillion U.S. Dollars were created to bail out their gambling debts – all post Glass-Steagall.

    Just as the U.S. financial collapse of 2008 was intentionally and unjustly blamed on Americans buying homes they could not afford, the European crisis is being blamed only on sovereign government debt.

    Research the actions of Goldman Sachs and J.P. Morgan etc..

    It’s the sociopath bankers and their paid politician agents!!!!!!!!!

    One thing for sure is that without the truth, no problems will be solved.

    The only solution is wiping out all debts and beginning again with money that has intrinsic value – not a NWO money system – who will be in control of that? Meet the new boss.

    See http://www.maxkeiser.com , http://www.zerohedge.com.

    • Lennie Pike

      Except that you won’t be “picking up your guitar to play – just like yesterday” – this time around.

      • Lennie Pike

        Because……. “getting down on your knees to pray we don’t get fooled again” will not be and option.

        This is a battle between Good and evil -for souls – “they” know what this is.

        If you do not – WAKE UP!!!

        Read the Bible and learn.

  • rick

    The only way for Europe to leave behind all of this nigthmare is to collapse the parts or pieces that can’t be saved. For instance, if bankia can’t be saved then this bank needs to go bankrupcy, if a country can’t be saved then this country needs to leave the euro zone and returns with zero debt,..,then many countries may need to left euro zone and return after all debt has been negociated. I give you an example, if you have a personal debt of 10 million dollars and your income is only 80Kusd/year. You will need 250 years to pay. That’s impossible. Only thru bankrupcy you can re negociate your debt with a judge that will determine to pay something around 2 million dollars. That’s the only way, if not the storm is just becoming worst and consequences very bad..

  • Weimar Wheelbarrow

    No problem just get those fiat currency printing presses primed for helicopter Benny. Uncle sugar to the rescue. Check your local listings but gas is now 4.00$ a gallon for 87 octane. I think it is part of Recovery Summer version three.

  • Louise in MO

    The problems are huge; no one can fix it!

    I don’t know one person who knows or wants to know what is on the horizon. Most are clueless and that’s the way they want to remain.

    Meanwhile, I’ve taken the warnings to heart and am preparing for the worst…if that’s even possible.

    • BFH

      Louise, I feel I have a good idea of whats on the horizon. Total and complete economic collapse. Electricity, health care, McDonalds, transportation and many more things we take for granted will be gone. As things collapse law-enforcement will see the calls for help as suicide missions. They will be gone home to help protect their families. Same with the military. The Government collapses. You can forget dreaming about trucks bringing supplies to hard hit areas. They’d be highjacked before they got to the interstate. Initially chaos and violence the new norm. People WILL NOT sit in their doorways and starve. They will rob, steal and take whatever they can to make it another day. The emotions of love, passion, compassion, and fair play will give way to basic human survival instinct. Hunger is a VERY strong motivator!
      Eventually some degree of sanity and safety will emerge. Bartering of services and goods the new exchange medium. Communities and groups looking out for each other. But, we will never come back to this world as we now know it.

      • GaryToo

        good post bfh

  • Barn cat

    They’re toast either way. Ultimately it’s worse if the ECB creates trillions of euros. Otherwise if you have your euros in your house you won’t be bankrupted by Spain and Italy defaulting on their debts.

  • Spirit&Truth

    2nd Chronicles 7:14
    Then if my people who are called by my name will humble themselves and pray and seek my face and turn from their wicked ways, I will hear from heaven and will forgive their sins and restore their land.

  • doctor blue

    Why can’t the world do an instant reset, everyone’s debts are wiped out and everyone starts over. But banks and loan companies would say WOH… Hold it a minute and demand they get paid but then others would demand to be paid. And then the big reset would be for governments, big banks and big business ONLY. You can’t do a partial reset it has to be for everyone, everywhere at the same time. ALL DEBT, EVERYWHERE ARE WIPED OUT!
    How much ya wanna bet our federal government starts borrowing trillions of dollars right away…. he he he (some people never learn – like our politicians)
    Hey my neighbor is BarBQing rat meat on a stick, ya want some? He makes the best BarBQ rat meat on a stick in the state. One day rat meat on a stick will be what we all are eating, then it will be the neighbors cat and then the neighbors kid.

    • GaryToo

      i think posts like yours and bfh,s are extremely gloomy but necessary. It takes a long time to wake up and start preparation, after a lot of toing and froing that its down the track, other priorities etc. But even then after deciding to prepare you think about all the possibilities and hope for some of the least bad scenarios.

  • doctor blue

    *** We got the best politicians money can buy! PERIOD ***

  • erheault

    What was that old saying? What goes around comes around? Here it comes again.
    CYA.

  • mondobeyondo

    Yep, they’re toast.
    So is France, for that matter. Except they’re French toast. (Boo, hiss, yawn.)

    As for the U.S. – we may as well be Canadian bacon.

    For those who missed it the first time round, here goes again:
    “Fire and Ice”, by Robert Frost:

    Some say the world will end in fire,
    Some say in ice.
    From what I’ve tasted of desire
    I hold with those who favor fire.
    But if it had to perish twice,
    I think I know enough of hate
    To say that for destruction ice
    Is also great, and would suffice.

    Hyperinflation? Deflation? Does it even matter?
    There are no degrees of death. It doesn’t matter how you die.
    Whether it’s a burning building, or an ice cold ocean. Doesn’t matter.
    You’re either dead, or… you’re dead. That’s it.

  • Richard

    Here’s my two cents worth: Nothing will change, nothing will be accomplished by stuffing money down the throats of governments and the banks. You won’t even get a decent liver pate. Unless and until the governments, ie. – Spain,Italy, et al, change the pension systems, retirement systems, dreadful employment requirements and benefits imposed on businesses, work week hours (France anyone?), etc, etc, etc, the need for monies to prop up the banks and government will never end. Get the governments off the backs of businesses and individuals, free up the markets, stop social engineering, stop the free rides for everyone, unleash free enterprise, capitalism, stop taking care of everyone from the erection to the resurrection, etc, etc, etc, and maybe there is a chance for the countries and banks to survive. WHAT THEY ARE ALL DOING AS OF TODAY IS TOTALLY UNSUSTAINABLE (using a favorite phrase of the libs/progressives). Nothing will work until common sense returns and the populace realizes the free rides are over. So….let’s force that info down the throats of the millions of eurozone folks and tell them the party is over…period…to the end.

  • http://www.harveasteating.com keith snow

    amazing times were living through..cant help but wonder when it will finally give in and crash…I dont think they can keep this scheme going to much longer….funny, my neighbor, a HUGE Obama supporter actually thinks GM is doing well after Obama rescued the auto industry…and he think the country is in good shape since messiah Obama took over….we cant even talk anymore because he i too far gone….WAY off the liberal cliff…

    sad….

    Keith

    • GaryToo

      wow g2 must be the neighbor from hell :0

  • http://www.harveasteating.com keith snow

    oh..make sure you’re learning to cook….we all need life skills like cooking..

    http://www.harvesteating.com

    Best to all
    Keith

  • Maxx

    This will fail…

    The reason the U.S. has gotten away with this sort of thing is because as the world’s reserve currency, the dollar is as valuable as we say it is. The capacity to back the dollar based on precious metals died back during the Nixon administration when the phrase on the dollar bill declaring that a U.S. bill could be exchanged for gold was halted.

    The ECB has neither the precious metals nor the status of the world’s reserve currency standard to back up printing trillions of their currency. The possibility of the EU’s future inflation rates is mind boggling. They will literally flood their markets with useless currency without any backing whatsoever. It is a textbook setup for an absolute economic collapse.

    Not good; for anybody…

    Good evening.

  • BFH

    The sentiments on this board are a perfect example of some of the problem. People can’t agree on anything. Most would rather argue over semantics and definitions then the real issues. I am sick and tired of phrases and labels like left wing, right wing, conservative, liberal on and on. Screw that noise people. The dissension in this nation over this economic mess is sickening and the worst is still to come. Accept the truth, Obama nor Romney can right this ship. We don’t have any choice in reality. Yet, you’d rather argue over who is best when neither of them are worth the bread they eat. Neither of them have your best interest at heart. Neither of them can do anything even if they wanted to.
    This nation, indeed the world is beyond economic survival. I suggest we put our thinking caps on and strive to find ways to inform and convince the sheeple. Then make conservative, diligent efforts to ascertain the most likely time frame because we need that info badly. While at the same time we should be preparing as fast and as much as we can. If informed people on this site cannot agree then how in hell do you expect the uninformed to get on board? People disagreeing on every single issue. If we can’t pull together now how in hell can you expect us to work together when the conditions are much worse and immediate? If we’d work in a spirit of unity we might have a chance but if we stay divided and argumentatively opinionated WE WILL FALL ! ! !

  • phybrr

    There is a solution to this problem.

    Declare a “Jubilee Day” as described in
    the bible. On this day (honored by the
    biblical Jews) all debts are forgiven and everyone starts from zero.

    Let the buyers of the bad mortgage paper,
    etc. take the loss. They should have known better.

    Now the government could fund jobs
    to rebuild our country’s interstructure.

  • http://www.westcoastladybugs.com RUSS SMITH

    Hi!, Patrons Of The Economic Collapse:

    Somewhere in my past readings regards economic events, it was pointed out by the writer that in the past the Italian goverment found the answer to their economic problems, by taxing their workers 110% of their earnings. If someone made $100 a week they owed the government $110 a week. Translation: soon nobody had to worry about how to invest their savings, because nobody had any savngs to invest. I don’t remeber reading this one in Carl Marx’s Communist Manifesto but maybe Carl forgot to include this one in his book? I think it was Jim Rodgers who said not long ago that, during a depression, those who come out ahead are those who loose the least. As far as war is concerned & OUR Judeo Christian heritage goes, does anyone remember Jesus telling whoever it was that drew their sword to cut off the ear of the High Priet, was told to put their sword back in its’ place, because Jesus said that those who live by the sword will die by the sword. Interpretation: does it matter whether a sword be a rifle, shotgun, tank or nuclear devise, because each of these can become deadly weapons of destruction of human life?
    Perhaps when everyone is leveled down from being broke and all true innovators are squelched to twidling their thumbs, eveyone will be finally happy & joyful? We have another generation coming into view who will inhereit what we provide them and cmmunicating being broke and non innovative is what we owe them? God has provided each of with measures of talents that needn’t be stolen from us by hiding them under a bushel of tyrranies designed to supress anyone’s natual capabilities is my view and how about yours?

    RUSS SMITH, CALIFORNIA
    resmith@wcisp.com

  • PNO

    Actually the ECB can print money, buy up the debts of all countries and banks and write that down, and restart with a new balance sheet. The debts of all the banks and countries would be resolved in an instant. This would mean debt is converted to cash, and no further debts would be issued.

    By artificially keeping bond yields down, speculators can short the bonds in unlimited amounts and wait for the ECB to buy them, thereby earning them huge profits.

    In fact, why stop at buying bonds? The ECB can buy up other assets like shares, property etc, any assets that are deflating to prevent price collapses.

    If all central banks act in a concerted fashion, there is nothing the ‘markets’ can do to overcome the forces of the central banks, as they have unlimited, effortless resources at their disposal.

  • Ronald Morrison

    Perhaps we should all read the Prophecies found in God’s Word and especially the Book of Revelation—again!

    Ronald D. Morrison

  • Jason Emery

    They survived the South Sea Bubble and John Law. They will survive the Euro Bubble. Why all the overly dramatic, doomsday b.s.?

  • Michael , coleman

    If Germany leaves the Euro and goes back to it’s Mark , will this then be the Mark of the Beast ?

  • Old Man

    The ECB won’t print trillions. There won’t be any EU bonds. And we have seen the last of any bailout money approved.

    Spain & Italy won’t get toast. What they will do is to take a deep breadth and deal with current reality and past mistakes. They will take a hit, and standard of living will decline. These countries have experienced far far worst than the current problems. Italy with Mussolini and the War; Spain with civil war, Franco and fascism. They have long history, deep cultures and people who can take a hit.

    There is no way Germany will bail any EU or Eurozone country out and everybody knows it. So they will deal with it.

    As to the future, well, each country will just have to re-invent itself. Will the EU and Euro system stay? Will it be reconstituted, or abandoned as folly? That is jet to be determined.

    One thing for certain, no EU country will ever listen, copy or adopt any financial, economic or social system from America again. That particular folly is OVER!

  • Timo45

    Its time for a debt jubilee, its time to start faceing the truth. These hug debts Can’t be paid back. And then people need to start removing central banks out of their countries. Its time for some big changes. What ever banks fail let them fail we have to start over with a new system. This system is only destroying our economies. Its only going to make the poor poorer and the middle class poor. Its time for some really big changes. ECB or Federal Reserve or what ever central bank can only make things worst, this debt base system has to be destroyed. The bible says the debter will be slaves to debt holder. Also in the constitution its says anyone who debase the currency deserves the death penalty.

  • Lou

    Very simply “Were *************”

  • 007

    They will print the money. What choice do they have. If they don’t it will be Armagedon. They will print money until the inflation is unbearable. Even at that point they will likely continue to print. It is the only way out.

  • Alex

    If you want to find out more truth about ESM just check this article – http://globalresearch.ca/index.php?context=va&aid=30403 – bye-bye democracy! :/

  • Johannes Black

    It’s right that a few shops in Germany still accept Deutsche Mark and you still can exchange it to Euros but I haven’t seen a lot in the last two years. And I live in Berlin and have connections to friend in other German cities.

    Unfortunately I have to say the blog entries are highly exaggerated. Moral decay could be found in every period. Through bigger media coverage it’s more drawn in the public (e.g. Jack the Ripper). There is no scientific proof that the ‘moral decay’ is higher than in any other decade of the last 100 years.

    It’s right that the monetary system will break itself sooner or later. But all the hidden Obama bashing is a little bit awkward. I don’t like some Obama policies (human right issues, ‘drone killing’, …) but on economic side you should give him a break. He inherited all the debt from George Bush and his Republican friends. What can he do against an exponential debt growth anyway.

    As a European I don’t get this bashing over Unversal Health Care and Taxes for the 1 percent. Hell, I’m earning not that bad and I pay a lot of taxes and social security. I can’t say I do it happily but I’m still happy to have social security where everybody has or get at least the resources to have something to eat.

    Dear blog writer, your articles have good points but are poisoned by populistic unproven statements. You should implement more facts and proofs.

    Greetings from Germany
    JB

    • Mike Caton

      JB, with all due respect, you need to do some homework and get your facts straight. Obama did not inherit “all the debt from George Bush…” and lest you hide behind your ignorance, the Congress was Democratic. Further, it was a Democratic Congress that mandated Fannie and Freddie to underwrite ALL of those sub-prime and non-conforming mortgages so that more unqualified borrowers could buy a home…and that led to the 2008 global financial meltdown. You might also want to research our tax structure, both corporate and individual to see who is already carrying the tax burden here.

      It appears that you are the one making populist, unproven, statements. It is difficult to engage in a battle of wits with someone who is half prepared.

      P.S. Scientific proof of moral decay is an oxymoron.

  • Peter Simonsen

    If Germany allows the ECB to print oodles of money it will only make GERMANY bancrupt too.

    There is no choice but to let it all collapse and start over.

    • Paul

      Even in bancruptcy there will be winners.

      Sure, it’s not the state and it’s never the poor.

      Switzerland has deep vaults. So do Liechtenstein, Monaco, Andorra. And if you have physical gold, nobody will know where you keep it, if you don’t tell anyone.

      Big family estates will probably use a lot of concrete these days.

  • A.S.

    All illegal actions:
    A minimum fine of €10,000 for taxpayers who do not report their foreign accounts.
    Secondary fines of €5,000 for each additional account
    No cash transactions greater than €2,500
    Cash transaction restrictions apply to individuals and businesses

    How can you dictate a free market, esp private transactions between two individuals? So long as the legal amount of tax is paid what one owes, what business is it of Spain, how two people decide to do business withe each other?

    But if Spain did it, the U.S. will follow–watch out–no more cash transactions above $1000; either wise you will be deemed a terrorist.

    • Paul

      China does it and China is successful.

  • Frank

    This is the problem with Germans they refused to accept the
    reality. This blog is not an exaggeration is the ONLY TRUE
    about the economic situation in Europe.

    FS
    USA

  • Paul

    Germany might not win,

    But the Euro is immensely important for German capitalists. They wanted the Euro, they profited from it and they want to keep it.

    They sell their products to Eastern Europe, and who cares whether the money comes from Eastern Europe or the German tax payer, as long as the money comes?

  • John Jackson
  • Jack Worthington

    The fallacy of the fiat currency/credit system is the root cause, forgetting that it was men who created it. So, attempting to fix the system by printing more fiat currency/credit is like attempting to cure a drug addict by giving him more drugs and in higher concentrations. The cure will certinly kill the patient and so printing more Euros will kill Europeans, just as it did in Germany circa 1920-1923.

  • bas akkerman

    I think we are allready on our way to a full blown depression. This depression wil be much bigger than the depression in the 1920′s.
    This because there is so much more dept to gdp this time. Just watch this video about what kind of failure
    there is around us: In my opinion this video says it all… http://www.youtube.com/watch?v=qmcyAMT-H3A

  • Jane B

    So what’s the result of the ECB printing? They will end up owning all or most of the crap of Spain, Italy etc. whose governments will be given the go ahead to spend spend spend! party time again!

    if the Germans are stupid enough to fall into this trap they have only themselves to blame.

    But then, they would only be copying the FED in the US. Print and borrow your way to salvation. INSANITY!!!!!!

  • http://malaysiandemocracy.wordpress.com/ AgreeToDisagree

    Nonsense. The state could simply distribute all unused land in the Spain and Italy equally, and tell the people to grow their own crops and build their own houses, raise their own livestock, compost their own sewage, collect their own rainwater. End of problem. Not a single Euro spent or printed. BTW there is no such thing as money.

  • Loop Garoo

    I forwarded this to a friend and he said it was too much to read. I apologized for wasting his time and hope we meet again at the FEMA camp. Americans get what they deserve. Now, back to reality TV.

  • RainbowWorms

    No,

    Printing = inflation

  • http://www.primevalues.org/ PrimeValues.org

    Recently they were talking about the requirement of a weaker euro. Yes, we’re on the road towards currency dilution through printing…

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