The Beginning Of The End
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This Is Yet Another Glaring Example Of Why The EU Is A Mind Blowing Failure

The debt crisis in Europe just seems to get worse with each passing day, and it is yet another glaring example of why the EU is a mind blowing failure.  The EU is made up of 27 nations that all have their own economic policies, and 17 of those nations are trying to use the euro as a common currency.  But when you have 27 different governments pulling in different directions, it is inevitable that there are going to be major problems.  The stunt that Greek Prime Minister George Papandreou just pulled is a perfect example of the nightmare that the EU has become.  European officials worked really hard to pull together a deal to address the debt crisis (of course the deal was a total mess, but that is another matter), and a couple of days later Papandreou decides that Greece should hold a national referendum on it.  It is so bizarre that it almost defies words.  But that is what happens in the EU.  Someone else always wants to have a say.  Someone else always wants to throw a fly into the ointment.  Someone else always want to throw in their two cents.  The EU is a bureaucratic nightmare and this latest episode is yet another example of that fact.  First the politicians in Europe come up with an idiotic plan that is going to make the financial crisis much worse, then Papandreou comes forward and pulls a stunt that shatters what little confidence the financial markets still had in Greece.  That is why the EU should break up.  It is a total failure and it is time that we all admitted it.

Financial markets reacted in horror to the news that Papandreou wants Greece to hold a referendum on the debt deal.

Apparently Papandreou wants the Greek people to willingly choose the harsh austerity measures contained in the package.  To be honest, that is not entirely unreasonable considering the tremendous economic damage that austerity measures have already done to the Greek economy.

So if there is a referendum, will the Greeks vote for the package?

That is not at all certain.

As month after month of protests have shown, austerity measures have been extremely unpopular in Greece.

But a lot of Greeks are not too keen on rejecting the bailouts and being forced to leave the euro either.

Both alternatives would be extremely unpleasant.

Greek Prime Minister George Papandreou apparently believes that the Greek people will vote in favor of the debt deal.  He made the following statement on Tuesday....

“We have faith in our citizens, we believe in their judgment and therefore in their decision. All the country’s political forces should support the (bailout) agreement. The citizens will do the same once they are fully informed”

Predictably, global financial markets were shocked by the announcement by Papandreou.  The Dow was down another 297 points on Tuesday, and bond yields for the PIIGS shot up significantly.

It really is mind blowing to watch what is happening to some of the bond yields over in Europe.

The yield on 1 year Greek bonds is now over 200 percent.  If you want to see what a financial meltdown looks like, just look at this chart.

The yield on 2 year Irish bonds is now over 9 percent, and the yield on 2 year Portuguese bonds is now over 20 percent.

Most importantly, the yield on Italian bonds continues to surge higher.

The higher those bond yields go, the worse things are going to get for Europe.

And those bond yield are skyrocketing in spite of rampant bond buying by the European Central Bank.

A CNBC article from earlier today noted the extraordinary intervention by the ECB that we are witnessing right now....

“Yesterday we had one of the biggest ever days of peripheral sovereign bond buying from the Securities Market Program, with some banks estimating that over 5 billion euros of peripheral sovereign bonds were purchased via the ECB’s bond buying program in an effort to keep a lid on peripheral sovereign bond yields” said Mike Riddell, a fund manager at M&G Investments in London.

Europe is falling apart financially and politicians all over Europe are furious with Papandreou right now.  The following comes from an article by Ambrose Evans-Pritchard that was published earlier today....

The Greek referendum – if it is not overtaken by a collapse of the government first – has left officials in Paris, Berlin, and Brussels speechless with rage. The ingratitude of them.

The spokesman of French president Nicolas Sarkozy (himself half Greek, from Thessaloniki) said the move was “irrational and dangerous”. Rainer Brüderle, Bundestag leader of the Free Democrats, said the Greeks appear to be “wriggling out” of a solemn commitment. They face outright bankruptcy, he blustered.

A number of European politicians are warning of severe consequences for Greece.  For example, the Finnish minister of European affairs and foreign trade, Alexander Stubb, even declared that if Greek citizens do not vote the right way it will mean an exit from the eurozone for Greece....

"The situation is so tight that basically it would be a vote over their euro membership"

If Greece ends up rejecting the bailout package, it would essentially mean a complete and total debt default by Greece.  The following is what Nobel prize-winning economist Christopher Pissarides said about the potential consequences of a "no" vote....

"In the scenario of a 'No' vote Greece would declare bankruptcy immediately, they would default immediately. I can't see them staying within the euro"

But there is no guarantee that a referendum will actually be held.  The Greek government has been thrown into a state of chaos and is on the verge of collapse.

To many, it seems more likely that the government will fail and that we will see early elections in Greece.  For example, the following is a quote from an anonymous Greek trader that was posted in an article on Business Insider this morning....

I believe the present government will be history by the end of this week. Most probably this evening actually, when the already scheduled emergency cabinet meeting is to be held.

The important question to be resolved is whether the present government will be replaced by an interim national unity government for several months ratifying in parliament the Eurogroup decisions of last week and then proceeding with elections, or else whether national elections will be immediately announced with probable dates the 4th or 11th of December.

But in the final analysis, it is not the Greek government that is the problem.

The reality is that the way the eurozone was constructed was fatally flawed from the very beginning.

It was inevitable that trying to force 17 different countries with 17 different economic policies to use a common currency was going to end up creating a huge mess.

People all over Europe know this is true.  Just consider the following quotes....

* Stephane Deo, Paul Donovan, and Larry Hatheway of Swiss banking giant UBS: "Under the current structure and with the current membership, the euro does not work. Either the current structure will have to change, or the current membership will have to change."

* EU President Herman Van Rompuy: "The euro has never had the infrastructure that it requires."

* Former German Chancellor Gerhard Schroeder: "The current crisis makes it relentlessly clear that we cannot have a common currency zone without a common fiscal, economic and social policy"

* Professor Giacomo Vaciago of Milan's Catholic University: "It's clear that the euro has virtually failed over the last ten years, even if you are not supposed to say that. We pretended to be Germans, but it was an illusion"

So why should those of us living in the United States care about all of this?

Well, it is because a financial collapse in the EU could plunge the entire globe into a horrific economic nightmare.

Today, the EU actually has a larger economy and a larger population than the United States does.  The EU also has more Fortune 500 companies that the United States does.

If Europe experiences a financial crash, it is going to send shockwaves to the very ends of the earth.

Another reason why Americans should care is because what is happening right now in Greece, in Italy and in some of these other countries is eventually going to come to the United States.

Just like Greece, we are in debt up to our eyeballs.

Just like Greece, our politicians thought that they could pile up gigantic mountains of debt indefinitely.

Just like Greece, this debt is going to have very, very serious consequences.

Just like Greece, we are going to have mass economic rioting in our streets.

The road that Greece is going down is the exact same road that the United States is going down.

Yes, the Federal Reserve could step in and print up trillions and trillions of dollars, but that would not solve our problems.  The truth is that a hyperinflationary crash can be even worse than a deflationary crash.

What is happening in Greece is just the beginning.  A bunch of other eurozone nations are also rapidly approaching a date with destiny.  At some point the United States is going to experience massive problems as well.

The epicenter for the financial collapse of 2008 was the United States.

The epicenter for the next financial collapse will almost certainly be Europe.

When Europe goes down, the rest of the world will be dragged down with them.

The next wave of the economic collapse is coming.

You better get ready.

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  • http://economic a.p.

    Good post Michael, again. Who were the original idiots that came up with the idea of the Euro in the first place? Does anyone know?
    They should be ******** at dawn, and like Mussolini,
    placed upside down in the town square and hacked to pieces. They have ruined millions of lives!

    The euro is the equivalent of having a family of
    17, yet each member of the family has a different credit card to use, however they want.
    Then the father and mother of the household try
    to figure out why they cannot balance the household budget.

    The emperor (the EU) truly has no clothes. Everyone get out of the stock market by November
    18th, when Greece officially runs out of money.

    • Michael

      I really like the analogy that you used there.

      Michael

      • http://sans mondant

        The analogy about the 17 or about Mussolini?

        The “idiots” are well known, the Euro was the “price” Germany had to pay for the reunification.

  • Ken Nohe

    What is taking place in Europe is very sad because the experiment was worth it and as the German Prime Minister put it, we know from the past what the alternative is.
    But we should also not forget that it is France and Germany who abused the system first by showing that the deficit limit of 3% didn’t really apply to them in case of crisis. If not then, then when? If not them, then who?
    This is the proof that either a federal system (US-style) must be built although this would not fit Europe right now or more likely, a Swiss-like confederation. With enough flexibility, it may work.
    But first Brussels must be allowed to fail and be dismantled. We can then work on a new system, with a strong and unified financial system and far more democracy at the local level. You want more services? Fine, raise the taxes (your taxes), not debt.
    Hopefully this will happen (under much pressure) but it will happen. We all know indeed what the alternative is!

  • http://www.gmail.com James

    I fear that mankind will do what it has done historically.

    Conduct war with maximum civilian casualties and total destruction of all cities; kill anyone that is not able body or willing to work.

    This time, however, kill all women over the age of 25 and all family lines of the banksters.

  • DM

    Jesus said, “A house divided against itself cannot stand.” (Mark 3:25)

    The EU is divided against itself. It will not stand.

  • r.bitting

    Let not your heart be troubled, you believe in God, believe also in me. In my fathers house are many mansions, if it were not so, I would have told you. I go to prepare a place for you, and if I go and prepare a place for you, I will come again to recieve you to myself, that where I am you may be also…. John 14:1-3 ( Jesus said it, I believe it. see you there.)

  • http://www.gmail.com James

    WWII here we come – to reduce the over population; over capacity; and lowlifes begging for food.

  • mondobeyondo

    The Greek people will NEVER vote in favor of a debt deal. That would be like turkeys voting in favor of Thanksgiving.

    • mondobeyondo

      Prepare yourselves accordingly. We may be about to witness a Hellenic hell hole.

  • BenjiK

    Again, wonderful analysis Michael. I think we need to look at the catastrophe that is the EU and take a hard look at our own financial house of cards. I realize that the U.S. is it’s own sovereign nation with a common currency, however, like the EU, we have seen disastrous results when the federal government oversteps it’s boundaries and takes on a dictatorship role against individual states and corporations. Maybe Greece does have the resources and ingenuity to break away from the EU and prosper, however, it really is up to them to find out. We are on the precibus of a total social, spiritual and economic collapse, and granting over-extending power to any government entity will only compound our demise.

  • PatriotOne

    Gee Michael I hope you are wrong. If Greece falls apart in the next week or so we could all be done by Christmas. Long term we all know the storm is coming but this could move at warp speed.

    • BenjiK

      I think this is precisely why Greece decided to hold their referendum in early January. Theoretically, this would give the financial markets a full year to recover, however, I think you are absolutely correct, the storm is coming, and no amount of time will be adequate for a full recovery.

      • Bone idle

        They need until January so that enough Drachma notes are printed and coins are minted.

    • 007

      Yep, kind of horrifying to watch like a train wreck in slow motion. Hard to pull your eyes away from it. However, we all better hope this thing holds together as long as possible. Once it flows over to our debt that will be “game over” time.

  • mark

    The fed will print more towards the end of the game. At this point they have no other choice. The American public will not give up the gravey train. If we can get rid of Obama in 2012 the wreck can be slowed down. If Obama stays in power, it will be full steam ahead. Get ready for it will be a rough ride down the debt hole.

  • http://theelevationgroup.net/presentation/register.php?a_aid=a6affed9&a_bid=290b868b John Jackson

    The EU is a joke but worse than that is the fact that people think the US dollar is a safe haven from the Euro collapse. The global financial system is going to implode. Do yourself a favor and learn how come out of this with your finances in tact:

    http://theelevationgroup.net/presentation/register.php?a_aid=a6affed9&a_bid=290b868b

  • Lum

    How will this affect the price of gold? How about gold equities? People always say run from the stock market, but what about gold/silver stocks?

    • 007

      Gold will continue to do great. It is the only natural current that can not be printed and abused. The central banks are buying it up like hot cakes. As ALL of the cental banks print money in record amounts, gold will almost unstoppably move higher. The government is trying it’s best to keep the price down through raising margin limits. There will be some volatility as hedge funds have to sell their gold to cover their stock losses. But gold has no place to go but up.

      Therefore, buy the dips. Gold will be at $2,000 an ounce by year end. I believe it may well reach $4,000 an ounce by the end of 2012.

    • 007

      NEM= Nemont Mining, good dividend tied to the price of gold, holds the largest gold reserves in the world. GLD= spider Gold trust tends to float with the price of gold. PHYS= physical gold which is actually bought and physically delivered to a vault. SLV=spider SIlver trust floats with the price of silver. Silver, however, has much greater volatility.

  • http://www.prepperwebsite.com Todd

    Hey Michael,

    How much time do you think they have?…in your opinion?

    • Michael

      It depends. ;)

      Michael

  • Americans For Stopping Treason

    Papandreou is crazy,… LIKE A FOX!

    This was the sharpest, smartest move I’ve ever seen him make,… I didn’t think he had it in him!

    Allow me to explain:

    Quick History Lesson:
    **********************
    For those who don’t know why the Euro was created, it was created by and for one reason only,.. a One World Government, or simply, the New World Order.

    This was there first incarnation of bring multiple countries under a single currency which is far easier for the NWO front organzation, the IMF to manipulate.

    Papandreous Referendum Gambit:
    ***********************************

    Papandreou realized, if he accepted the terms to this bailout, it effectively reduced Greece to a supplicant state, a mere vassel of the Global Banksters.

    Result: Short term gain, long term lose. Papandreou is the bad guy, and Greece has lost its sovereignty,.. forever!

    If he didn’t accept it, Greece financially implodes.

    Result: No civil service salaries paid, no interest payments made, no ability to borrow, short term chaos. Papandreou looks bad, Greece is in turmoil.

    Now the facts:
    ***************

    There is no solution to Greeces debt problem.

    They have spent to much, owe to much, produce to little and need sweeping systemic change.

    The IMF played drug dealer to Greeces addiction of cheap money and debt. This was done with the EXCLUSIVE intent of running them to the point of bankruptcy, then demanding “collateral” such as state assests, landmarks, industries, roadways and anything else of value.

    In effect, the IMF bought Greece for pennies on the dollar and is trying to take complete control of it thru financial deception, rather than outright warfare, as it is actually cheaper to have a country pay you to take it over!

    The best thing that Papandreou can do, is tell the IMF and other creditors to go fuck themselves, thank them for the party money, retain their own FULL sovereignty and assests, and then start to rebuild using its own currency, which should be Gold Backed.

    If Papandreou had taken this bailout under the terms demanded by the IMF, it would only give Greece a few months before they would be broke again, have paid what precious little money they had left to meet the interst payments for the remianing 50% principle, and the entire Greek tax system was required to be skewed to extracting every last ounce of wealth from Greece, to be given to the International Banksters, plus the surrender of national assests as well as its sovereignty.

    Result: Short term fix, long term servitude, permenant lose of sovereignty.

    Calling For A Referendum:
    *************************

    Here is the brilliance of his move by calling for a referendum:

    1) It won’t go until January of 2012. This gives him time to jerk the IMF and the International Banksters around.

    2) If people vote in favor of the bailout, then he DIDN’T give away Greek sovereignty, the Greeks did!

    3) If they vote against it, then he DIDN’T cause the collapse of the Greek economy and its finances,.. the Greeks did!

    This was actually the shrewdist move I have ever seen Papandreous make.

    From a Chess play point of view, it was probably the best move he could make.

    In the end, Greece is broke.

    The difference is, do they want to be broke and still own their own country? or, do they want to be broke and be owned?

    Well played Papandreous!

    He is actually giving the IMF and the International Banksters the middle finger with this move.

    JD

    • mondobeyondo

      Well – whether the Euro was established to create a one world government, or even a United States of Europe, is debatable.

      It’s on the verge of becoming a colossal failure. And the U.S. dollar isn’t far behind.

      (A caveat: I’ve never been to Europe. The closest I’ve been to Paris are postcards of the Eiffel Tower.) But just an observation: A “United States of Europe” won’t work. There are too many cultural, historical and linguistic differences. And I suspect the spaghetti in those Paris cafes doesn’t quite taste the same.

      • mondobeyondo

        Unlike here in America where I can enjoy Maine crawdads (can’t afford lobster) here in Arizona, while the Mainians or whatever, enjoy our prickly pear cactus jelly.

        Yikes! I’m spending way too much time on this blog. Need to watch more American Idol.

        • mondobeyondo

          Mainers? Mainesters? Mainettes? Umm…
          (Mainettes is meant to be a compliment. Any girl from Maine has got to look better than Snooki. Kind of like Rockettes, y’know?

          You are welcome. Just don’t call us Arizonans “Zonies”. We hate that.)

    • Ken Nohe

      Very good points! Today it is not clear in which direction the Greeks will vote. They want to stay in Europe AND get rid of the debt which are incompatible to some extant.
      But in a month after much menace from Europe, the answer may be clearer: NO!
      Then, the gold idea is a good one, talking to China not bad either. Who else than Papandreou to execute the plan? He is must certainly very bright, no doubt but I would not like to be in his shoes, the pressure will become immense.
      Time to meet with Erdogan? Greece will need friends, soon… It would be superb and even go in the right direction, for once.

  • Nostradamous

    What blows my mind is this piece by Michael. This is classic Americans cheering at somebody else crisis when they are stuck with their own.

    Will the EU break up? Not if you ask any, ANY, member state. But that does not mean states who failed to measure up to its EU treaty obligations will not be ‘asked’ to leave. It is very European that such a cancellation (or suspension) of membership be done at the request of the state, not pushed. Greece may well do that. Greece became EU member on a referendum vote; so it is proper that it exits on same.

    As to the Eurozone, clearly the financial architecture must be revised. But revised to what? The kind of plans now being worked for Greece is actually such a work-in-progress plan. It may not fix Greece but it is being done to fix the architecture.

    No matter what will happen to Greece, EU as a whole is more than healthy enough to withstand and fix the current financial crisis. Contrast to the US, there is an abundance of political will and smarts to fix things. The result will be a much stronger EU and Euro, with the peripheral states having learned a deep lesson on sound finances.

    Let me assure this blog viewers that Europeans have also learned a big lesson on USA – never copy American again. The already big divide between US and EU will diverge wide and far in the future. NATO will not survive as the EU forms its own military organization.

    My take is Greece has been taken out of the EU equation no matter how they vote. But EU stands ready to take it back in once a new generation of Greeks solved their national problem.

    • Michael

      I don’t think I was cheering.

      Michael

    • knightowl77

      “Let me assure this blog viewers that Europeans have also learned a big lesson on USA – never copy American again.” Bunk….

      It was just 2 weeks ago when several EU leader types (like former German PM Schroeder) was calling for the “United States of Europe”. They haven’t learned squat and neither have our politicians….Please do not make our mistakes, but you have made plenty of your own…

      As for NATO, there is no reason that the USA should be paying for the defense of Europe…That ship has sailed. We should close all our European bases and just leave you to it…

      • Nostradamus

        knightowl77:
        No EU leader have or will suggest the creation of a US of Europe like the USA. All EU states remain completely sovereign and independent. All European states have long history, separate culture and language and any suggestion of integration is utter nonsense – even Hitler failed to integrate by force.

        You are ignorant about NATO. NATO is a coordinated, but NOT integrated, defense organization. Each NATO country has full sovereign authority and responsibility for itself and its NATO participation, including financing of equipment, personnel and operations. America has never ‘paid for NATO and defense of Europe’, as US big media have been feeding this nonsense to Americans for decades. Have you not noticed Europe NATO countries developed their own weapon systems and fund their share of NATO operations, IF they chose to participate. Maybe all this nonsense about US paying for Europe defense comes from the Cold War where US insisted it install medium range nuclear strike missiles in Europe for defense of US SOIL against USSR (at the expense of Europe getting hit first). Europe did the US a favor by allowing such foreign installations because the Cold War (a first nuclear strike contest) is strictly between US and USSR.

    • whteshark

      No more NATO? Awesome! Take the UN and the IMF with you too please.

  • kyky

    when is it all going to collapse?

    • mondobeyondo

      Sometime between November 3, 2011 and July 23, 2015. That’s my guess. My crystal ball is cracked, and no longer functions. But it WILL happen though.

      • knightowl77

        No no, sometime between 11-03-11 and 03-07-2016…or later ;-)

  • McKinley Morganfield

    I agree that the EU is dysfunctional and fatally flawed from the start. Over the last 30 years I have come to the conclusion that the USA is dysfunctional too. The various regions of the USA have little in common. From my vantage point in Iowa, I want nothing to do with anything east of the Mississippi or west of the Rocky Mountains.

  • Tom

    I have a question: Why is it wrong to ask the PEOPLE (in a referendum) to decide their own future?

    • Michael

      I wasn’t saying that there is something wrong with a referendum.

      What I was trying to say is that this whole process in Europe has been incredibly dysfunctional and has been a comedy of errors.

      I am still recovering from having a couple wisdom teeth pulled out, so I think I did not communicate my point as well as I should have.

      Michael

      • Tom

        I agree about the dysfunctionalities inside the European Union, which may very well lead to its collapse. Thanks for your response and keep up the good work.

    • Nostradamus

      Tom: Nothing wrong with asking the people for a major decision. Even Sarkozy said a referendum is always legitimate.

      The problem is the Greece PM NEVER told other Eurozone states who worked mightily to put together this package of debt relief that he is going to put it up for a referendum vote. Because if he had, the package and the politics around it will be quite different. This is a stab at the back of the creditors of Greece, from a country on the verge of default bagging for rescue. This is classic Greek stab-in-the-back politics administered to Eurozone states. The Greek PM thought by playing his brand of nasty politics he can blackmail his way out of a better deal.

      France/Germany is obviously pissed. After all, they agreed in the deal to take a 50% loss, and cut Greece debt by 50% so that it has a chance of fixing its problems while remaining in Eurozone. France/Germany turned around and said the referendum will be not just be about the deal, but a rejection means sovereign default and withdrawal from the Eurozone (and by extension the EU). Pompy promptly chickened out and withdrew the referendum.

      It is not nice to kick your bankers between the legs. Let the US learn this lesson about kicking China.

  • J2201987

    Let the games begin.

    • mondobeyondo

      Do you mean the Financial Olympics?

  • David M

    I say Papandreou was smart. He saw the future and realized it was his head on the platter. So he opted out on being the one to make the call.

    No argument on the article.

    Global financial collapse heading to a country near you!

  • yhung

    Looking at the going-ons.., everyone now is crying out for a super hero to solve the mounting woes experienced in all countries. Isn’t it revealed in the Holy Bible the man of sin will appear and offer solutions to all human problems and he will be readily accepted? The stage is set…can’t wait for the next act to start!

  • JustanOguy

    Sorry… I think the doomsday scenario is being blown out of proportion for when the music finally does end for the PIGS.

    The financial armageddon cries are just another setup to print more money for the Fed’s Bankster Buddies.

    • Mal R.

      “The financial armageddon cries are just another setup to print more money for the Fed’s Bankster Buddies.”

      That makes the money they hold worth less and then worthless too. Sure they hide some of their money away in non-liquid assets, but certainly not all of it. It’s coming and you’d be wise to prepare yourself and your family.

  • Bob-bob-bob

    Now throw this into the mix as well , Papandreau has also FIRED all of his top Military leaders ! The Army , Air Force and Navy are now under new leadership . Is Papandreau planning on declaring Martel Law ? Or was he afraid of a Coup ? Is he wanting to remain in power if the people want him to leave ? OR prehaps a little of BOTH ? Time will tell and I bet it won’t take long .

  • http://economicsurvivor.net Russell Cavanagh

    You are spot-on with your analysis. Here’s the post, largely concurring, on the economicsurvivor.net site (where your rss feeds appear on the sidebar BTW) – http://wp.me/p1PFCv-b6

    • Michael

      Interesting site – I hope everyone check it out….

      economicsurvivor.net

      Also, another reader of this site has also started a very interesting blog on financial matters….

      http://crackerjackfinance.com/

      Michael

  • Zinc

    Michael

    Don’t be fooled. Papandreou works for the US and the UK bankers. That referendum is a distraction to hide the ISDA statement over the CDS that made MF Global Finance to collapse and that put Wall Street in deep trouble.

    http://www2.isda.org/news/isda-statement-on-cds-credit-event-process

    The UE might be a non democratic entity but it is far from being a total failure. The UE is the first economic zone of the world and is about to have a very strong currency after Greece’s default. I don’t call that a failure.

  • Mind Candy

    Honestly, Papandreaou is damned if he does, damned if he doesn’t. The same people screaming for his blood now are the same people who were screaming for his blood (and rioting) over the austerity measures he already tried. Now, if (when) things go to hell in a bucket the Greek people will literally have nobody to blame but themselves. I think Papandreaou may have been trying to salvage some hope that he won’t get torn apart in the streets once he leaves office. Which is shaping up to be any day now by the look of things. He’s essentially just told the entire population of Greece, “If you think you can do better, you’re welcome to try.”

  • ScoutMotto

    The EU came into being with a series of treaties over several decades, each treaty taking more power from the nations of Europe involved in those treaties. I can’t prove this, but I heard that the Euro currency was birthed out of a feud among the international banking families to compete against the Federal Reserve Note.

  • William

    The EU is but one of the schemes of the Illuminati/Bilderberger/Freemason crowd to establish a one world government. Let’s hope the EU explodes. That should send these evil super rich criminals back into the shadows for a few more years……..

  • Maria

    Michael,

    Of all your articles that I have read, this one confused me the most.

    You wrote, “The stunt that Greek Prime Minister George Papandreou just pulled is a perfect example of the nightmare that the EU has become. European officials worked really hard to pull together a deal to address the debt crisis (of course the deal was a total mess, but that is another matter), and a couple of days later Papandreou decides that Greece should hold a national referendum on it. It is so bizarre that it almost defies words.”

    Bizarre is an accurate description. But you seem to be struggling with the reality that the world really is approaching complete economic collapse….or should I say economic tyranny.

    Are you really surprised that Papandreou dares to even question the solution put forth by the “European Officials”? Even though their solution is just another disaster in the making? It is all part of the scheme.

    Popandreou and these “European Officials” are not trying to help the people of Greece. They are political tools of the New World Order who only do the bidding of those who want to control the world. Their plan is to enslave the Greek people even further. The vote is to deceive the people into thinking they decide the future. Doesn’t matter what the people vote. Either way, they will collapse. We all will.

    World economic enslavement is the goal of the NWO. It doesn’t matter what the yield is on Greek bonds, Irish bonds, U.S. bonds or any bonds. It is over. The entire world’s central banking fiat economy is dead. The people who have been controlling this system have purposely run it into the ground. Frontline’s The Warning is a good example of how this was accomplished.

    http://www.youtube.com/watch?v=H3HmV43Zs-M

    You said, “The reality is that the way the eurozone was constructed was fatally flawed from the very beginning.” That is absolutely correct. The entire central banking fiat system is fatally flawed….unless you look at it from the perspective of those who are benefitting from it. And they already have the ultimate “solution” waiting in the wings. When the world is on its knees, they will unveil that plan.

    There really is a handful of people who have sold their souls to the devil to obtain complete control of this world.

    But something even more important is happening.

    People are realizing there is another way.

    A much better way.

    The way of God. The will of God.

    He has the perfect plan.

    His plan will prevail.

    The only vote people really have is the one they make to for Jesus.

  • http://None Hans

    Maybe Papandreou studied some history. Looking at the riots in his country, he must have realized that the people are tired of funding the excesses of bankers and governments. When the people of France were told to eat cake when they had no bread, they lost it and chopped off heads! When those portions of the Iraqi citizenry oppressed in the past gained power, things did not work out so well for Saddam. Recently Ghaddafi had a few bad days at the office. See the Mussolini example above.

    Papandreou wants his people to buy into this whole “bailout” package and related austerity measures. I guess he is not interested in getting burned at the stake for the sakes of banker losses. Whether the Greek populace embrace the deal or not is irrelevant. If they point a middle finger at the deal, the inevitable collapse will just arrive sooner.

    From the smallest household to the biggest country in the world (read USA, economy wise), the same holds true. If you spend more than you earn, you are screwed. To create currency can delay the inevitable, but sooner or later even the dumbest person will realise that the “money” is worthless.
    Europe is just one of the dominoes waiting to fall.

    Buy tangible assets while some suckers are still willing to accept cash. Sharpen survival skills. Things will eventually get better for the survivors of the coming collapse.

    As harsh as it may sound, the earth is getting overcrowded. Nobody will volunteer to remove themselves from the gene pool. I might be getting too negative, but I see wars, famine, water shortages and diseases in the near future. All of this seems to place the woes of the EU in perspective. It seems as if our whole world is becoming a mind blowing failure, to use the words of your own post above.

    Now I think I should go and sulk on my own and clean my rifles. Thank you for pricking my nice bubble! Before starting to read your blog (currently my favourite) and other related sites, I was happily working and planning my eventual retirement. Now I am working and trying to plan for my survival and that of my family.

    • Highspeed

      Nice, concise post. I feel the same way, A year ago I was planning my golden years, and now I see that I had on rose colored glasses, and there was no gold in my golden years.

    • Spab

      This is utter non sense : Saddam and Gaddafi murders have been planed by the exact same evil forces who control the European Union now.

  • http://www,Back2theLand.com Old Timer

    A basic reason for creating the EURO concept arose from the Malta talks at the close of WWII. THe idea was if all the European countries were bound together by a common cause (money-finances-bonds etc) there would be less of a chance of war.

    Of course,as time progressed the idea of a centralized banking system has arose since the 1960s when our own stock market/investment banks swiftly arose. This was the hallmark of the Nixon era and the start of big business combined with government. Everything takes time and we have yet to reach the apex of the “New Global Order”.

    In 1927 the world held 3 billion people, this last week it has reached 7 billion and it takes .06 acres of ariable land to feed that many, per person. Based solely on food production the western affluent societies will perish in time, wherein the majority surviving will be modern serfs.

    History has it’s up’s and down’s. This time around, if you and I live long enough into this century we will see a complete turn around.

    God Bless,

    OT

  • REED RICHARDS

    Michael,

    I disagree. I think the idea of a referendum at the very beginning for the Greek people to chart their own destiny would have been the logical course of action before the zombie banks were allowed to take their resources, assets, and national sovereignty by force of bailouts. Now you do pose an interesting question, what will the Greek people choose to do? Accept the austerity willingly or default quickly and leave the Euro? I think the latter idea is the more logical course to take, they should default now, reinstitute the Greek Drachma, and start over again. There is no bailing out Greece, plan or no plan, and so therefore, knowing that, there is no logic in continuing to go along with the charade, which is racking up more and more debt by the second. They should default now and begin anew with a new currency, lest Papandreou likes the idea of waking up to a daily regimen of fresh riots and strikes in his country every day of the week …………..

  • REED RICHARDS

    Michael,

    If Papandreou was to take your advice, government in Greece on a daily basis would resemble the following:

    Papandreou: Security Minister, what’s on the agenda for today?

    Security Minister to Papandreou: Same as yesterday, and the day before that, and the week before that, and the month before that, and that is more riots and more strikes……

  • http://www.reasonandjest.com/blog Scott Lazarowitz

    Michael, you wrote,

    “The reality is that the way the eurozone was constructed was fatally flawed from the very beginning.

    “It was inevitable that trying to force 17 different countries with 17 different economic policies to use a common currency was going to end up creating a huge mess.”

    As with the completely centralized Soviet Union that went down in total economic and moral collapse, so too are the centralized and demoralized EU and the U.S.

    You are right that the structure — the structure of centralization — is fatally flawed. But it isn’t just economically or with central banking. Any kind of centralization of power that gives the central planners the power of legal authority and compulsion over the rest of the population is immoral.

    I can’t speak for the Europeans, but in the U.S. the only hope to save our society and restore freedom and restore America as a civilized society is through decentralization. Abolish the Federal Reserve, legalize competing currencies, repeal legal tender laws, and, really, get rid of the federal government altogether. Central planning doesn’t work.

  • Barn Cat

    Some thoughts: Greek austerity really means that everybody who gets a government handout gets less than they used to. The people are on the verge of revolution over this. It’s something that people from 100 years ago would have a very difficult time understanding. Back then people didn’t think that the government had to take care of them.

    The Eurozone isn’t the problem. The US has different sized states with very different economies too. California, Illinois, and New York will eventually go bankrupt because of their high spending and high taxes. That doesn’t mean America is a failure.

  • knightowl77

    Every time that I think that things cannot get worse and yet they do….I have had to re-evaluate my time lines….I think we could go quite a long way thinking this is it…and yet it isn’t….somehow, someway we continue to stumble on, digging the hole deeper and deeper in the process….
    I do not know what is coming, or even when it will arrive….But, it is coming!

  • Paul

    Just look at the 50 or so states of the USA. Every one with a different policy and the same currency.

    And with the current crisis in mind: Should the USA break up as a failure?

  • Paul

    Of course financial markets are shocked by votes.

    Just imagine companies that would run democratically instead of like a dictatorship.

    And well, I don’t trust any “economist” or banker. Nobody of them saw any crisis coming in the last 5 years. And when it was there, THOSE BANKERS and “economists” ASKED FOR STATE INTERVENTION to help them out and for the tax payers money to cover their speculative losses.

  • justsomeguy

    Regarding the referendum, it sounds like you are saying we can not trust the Greek people to do the “right” thing, rather their “betters” should bypass the Democratic process.

    I agree that financially the US is essentially in the same predicament as Greece and is the epicenter of the crash. Interestingly the supercommittee can be seen as a similar non-democratic method of enforcing “austerity”.

  • SC23

    I find that the best hedge against fiscal collapse is to opt out, as much as possible, from the fiscal system.

    It is a difficult paradigm to grasp for most, that money, in most of its forms, is in fact an evil and not something to be wished for, slaved for, hoarded and proud of.

    There is of course a certain amount that one must attain in order to survive..at least for now, but with limited money comes a lot of benefit. Lower taxes, less slaving at others bidding, more self reliance for things like food and shelter. I find the less one needs money for, the less you become a slave to the system and for now at least, the more the system actually ignores you and has less impact on you.

    If we were a community growing food ourselves, trading services and goods amongst each other and finding ways to provide for ourselves which do not include years of our lives spent toiling for imaginary wealth by paper..well.. the collapse wouldnt really effect us now would it?

  • http://www.hotbedinfo.com KT

    Not only do we have to worry about an economic collapse, we now have to worry about getting bitten by one of Bill Gates Vaccine carrying Genetically modified Mosquitoes!

    Bill Gates Wants Forced Vaccinations via Genetically Modified Mosquitoes

    http://hotbedinfo.com/2011/11/bill-gates-wants-forced-vaccinations-via-genetically-modified-mosquitoes/

  • Jade

    It’s obvious that the Greek PM has never heard of the jackals. (confessions of an economic hit man)

  • Gay Veteran

    I fixed your sentence: BANKSTERS reacted in horror to the news that Papandreou wants Greece to hold a referendum on the debt deal.

    Ambrose Evans-Pritchard also wrote:

    “…at least the Greeks are stripping away the self-serving claims of the creditor states that their “rescue” loan packages are to “save Greece”.
    They are nothing of the sort. Greece has been subjected to the greatest fiscal squeeze ever attempted in a modern industrial state…
    The referendum is a healthy reminder that Europe is a collection of sovereign democracies, tied by treaty law for certain arrangements. It is a union only in name….”

    http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100012986/revenge-of-the-sovereign-nation/

  • liberranter

    Given the sheer delusional recklessness of the fascialist regime ruling Amerika, one wonders what insane response “our” government will offer when (yes, WHEN) Europe collapses into financial chaos and ruin.

  • Rick

    I think that the Greek populace would be better off voting “No” on the bailout than holding the country hostage any longer to the predatory capitalist banks.

  • Billy

    So……This economic collapse is a sure thing or just over paranoid people? Not being an a$$.

    • mondobeyondo

      It’s a sure thing. The timing may be off by a few months or years, but mathematically it is an impossibility. It’s going to happen.

      • mondobeyondo

        I meant to say, it’s impossible to avoid. This country has already hit the proverbial iceberg.

  • http://georgesblogforum.wordpress.com George Forfa

    This is all going on while none of the parties can decide what they want. They just know that they want someone else to pay for it.

    http://georgesblogforum.wordpress.com/2011/10/31/photo-finish-update-10312011/

  • JasonD

    Let ‘em vote. Democracy was born in Greece!

  • mondobeyondo

    Papandreau can’t save Greece.
    He’ll be extremely lucky if he can save himself, which I seriously doubt he can.

    Sorry, won’t be a holly jolly Christmas for Greece. More like roasty toasty gyros.

  • cjfyuma

    Prepare soon for the NEXT GREATEST WORLD DEPRESSION! It’s going to knock Obama’s and Geitner’s socks off! The Federal Government is bankrupt, and there’s nothing they can do about it, except have the retard Bernanke print more debased $$$, and bankrupt everybody else in the #@!%ing world with more stagflation and hyperinflation!

  • Erin

    Papandreau pillages Greece and then gives the Greeks a choice between paying the loan sharks or getting financially knee-capped. What a choice.

    Why not take door number 3 and give g-pap a “haircut” with a sharp instrument. Then use a picture of his carcass on the new red colored 1 drachma bill. Greece would have a balanced budget every year.

    • GordonGecko

      You are certainly a man of action :-)

      I like your approach. Clear and concise.

  • Texan Patriot

    Brilliant article! I like the way you explain things thoroughly, unlike the MSM lies.

  • http://EconomicCollapse Already Gone

    If The Euro Cannot Survive In europe,Then Why Do Countries Like Russia And China Keep The
    One World Currency Drum? What Makes Them So Sure It Will Work For Evey Country Around The World?

  • GordonGecko

    US better than EU? Think again…
    ==============================================

    The EU and the US are then both a failure. But the US is the bigger failure (and I am saying this as an European that LOVES America, and yes…even Wall Street). But come one, you are arguing that European states are completely different and yet, they still hold together by an imperfect system. Now explain why the US with its common culture, language and strong head start against Europe, that never had troops hitting ground and battlefields like WWI and WWII is STILL in deep shit? 15 Trillion US$ and you don’t even have a social system like any state in Europe. I actually lived 7 years in Florida and noted that the US is behind in many social benefits that are totally granted in Europe (I am not saying this is a good thing! Just noting that WHERE the Hell did you spend 12 Trillion in the last couple of years? (We all know where…just asking rhetorically)

    Still thumbs up for your blog and your work Michael. I appreciate your work, but we can disagree on content ;-) Thanks for letting us share even contrary views…shows that your blog isn’t Brussels ;-)

    • Michael

      It is definitely okay that people don’t agree with me all the time. :)

      Michael

      • GordonGecko

        You are a good guy on a good crusade. Hey at least your “provoking” title led me to your blog (first time visitor) and led me to read up more of your stuff. :-) I think a healthy discussion with positive critic is always good. Thanks for your work. Let’s see how this Greek Mystery unfolds… :-D (I live in Portugal and we are watching this almost like the final game in the European Championship 2004 :-P

    • Mike webb

      Why you ask because we pay for your security in oh so many ways we the USA foot the security bills you don’t know that the USA pays 70% of the NATO security Bill if I’m not mistaken we fronted the recovery bill after WW2 and have not been paid back that I know of we forgave those loans to Europe. We in the USA don’t want your socialist ideas you keep them.

  • Joel

    Michael, I would say something about what you said : ” That is why the EU should break up. It is a total failure and it is time that we all admitted it.”

    I totally oppose the idea of breaking up the European Union. you don’t seem to catch WHY we created the EU in the first place. It was not for economical reasons, it was to avoid another bloody war on the Old Continent (the last one claimed more than 50 millions people, the worst number in History).

    You see too much things happening through “Money & Finances” glasses. Don’t get me wrong here, I don’t say I like the Financial System as it is (it’s not a European system, but right from Wall Street), but wishing a breaking up of the EU on one hand, and say it’s a total failure shows a complete ignorance of EU’s history.

    Not everything goes around money. You should at least see things otherwise and stop wishing the destruction of a very good idea which help maintaining peace for nearly 70 years now – which in itself is an exploit on a Continent which saw a big war every 30 years or so.

    Careful about what you are wishing for here, and don’t throw the baby with the bad. No one in EU wants another f****g war. The problem is not the EU, the problem is the Financial System we are in now and which is imposed by Big Banks and IMF. They are the one which have to break up and who are a total failure…

    For once, I must admit, I’m in complete disagreement with one of your view. That does not in any way means I reject the whole article. In fact, I like your blog, it’s full of interesting view point.

    So keep up your good work.

    Regards,
    Joël

    • Michael

      Joel:

      I appreciate you expressing your point of view. I am certainly not afraid to have people disagree with me. :)

      Michael

    • GordonGecko

      I agree with you. I don’t know where Joel comes from, but I enjoy very much free traveling across 27 countries and doing business with all of them, getting into meetings just by hoping into the airplane and within 4 hours radius I can visit many countries in one swift trip!!! without showing f***** passports and going through Airport controls like the ones in the US (which I personally find humiliating) Being from Portugal always got me a “strange look” before the free travel possibilities existed…now you feel free, part of a big, colorful community. You’ve got to love that!!!

  • A.S.

    Watch out U.S.! If Greeks can riot like that when all they did previously was eat gyros and drink coffee, what will Americans do when all they do is watch T.V. 7 hours per day, eat themselves to death, are on every prescription drug on the planet, etc.? I have the answer–murder, rape, pillage, etc. Americans have no morals anymore. Americans have no self-control anymore. Americans are utterly depressed and on the edge of really losing it like Celente says all the time. G-d help us!

  • Suetonious

    It depends on your definition of “failure”. For the globalists – total bankruptcy of every last one of the PIIGS – or even some of the hapless stooges pulling the load, don’t matter. Screw it. Print more money. Digits entered on a screen are cheap. Nobody is going to pay it back anyway, because that’s not the point anyhow.

    The point is global consolidation and CONTROL. And the EU is a crucial boot step, or stomp, towards that end. Therefore, the various debts don’t mean squat. Witness the unreality of these totally compromised national “leaders” dismissing the colossal size of the debts as things that will be somehow “resolved” (meaning paid back) in the future by even MORE debt. Ain’t gonna happen. They know that – but us idiot lemmings apparently don’t. They’ll just keep hitting the “Enter” key ’til whatever “money” necessary is conjured up out of the ether to reassure the moron masses that things have been “solved”.

    They want to get everybody so totally friggin’ in hock and in such disastrous straits that the only way out is – “That’s Right! You’ll be asking for it – You’re gonna get it! A World Bank, a global currency – and a fascist global goobermint to go with it – to straighten it all out! Congratulations! Aren’t you Lucky that we’ve been putting it all together just for the occasion.”

  • Carax

    “Papandreou wants the Greek people to willingly choose the harsh austerity measures contained in the package. To be honest, that is not entirely unreasonable considering the tremendous economic damage that austerity measures have already done to the Greek economy.”

    Of course it’s unreasonable, making the people pay for the mistakes the banks made. The bailouts with the draconian rules attached to them will not solve the problem. Only returning to their original currency will Greece solve the problem. Their exports and tourism will soar with a weak currency. And eventually they may climb out of the hole.

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