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Why A Greek Exit From The Euro Would Mean The End Of The Eurozone

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What was considered unthinkable a few months ago has now become probable.  All over the globe there are headlines proclaiming that a Greek exit from the euro is now a real possibility.  In fact, some of those headlines make it sound like it is practically inevitable.  For example, Der Spiegel ran a front page story the other day with the following startling headline: “Acropolis, Adieu! Why Greece must leave the euro”.  Many are saying that the euro will be stronger without Greece.  They are saying things such as “a chain is only as strong as its weakest link” and they are claiming that financial markets are now far more prepared for a “Grexit” than they would have been two years ago.  But the truth is that it really is naive to think that a Greek exit from the euro can be “managed” and that business will go on as usual afterwards.  If Greece leaves the euro it will set a very dangerous precedent.  The moment Greece exits the euro, investors all over the globe will be asking the following question: “Who is next?”  Portugal, Italy and Spain would all see bond yields soar and they would all likely experience runs on their banks.  It would only be a matter of time before more eurozone members would leave.  In the end, the whole monetary union experiment would crumble.

As I have written about previously, New York Times economist Paul Krugman is wrong about a whole lot of things, but in a blog post the other day he absolutely nailed what is likely to soon unfold in Greece….

1. Greek euro exit, very possibly next month.

2. Huge withdrawals from Spanish and Italian banks, as depositors try to move their money to Germany.

3a. Maybe, just possibly, de facto controls, with banks forbidden to transfer deposits out of country and limits on cash withdrawals.

3b. Alternatively, or maybe in tandem, huge draws on ECB credit to keep the banks from collapsing.

4a. Germany has a choice. Accept huge indirect public claims on Italy and Spain, plus a drastic revision of strategy — basically, to give Spain in particular any hope you need both guarantees on its debt to hold borrowing costs down and a higher eurozone inflation target to make relative price adjustment possible; or:

4b. End of the euro.

By itself, Greece cannot crash the eurozone.  But the precedent that Greece is about to set could set forth a chain of events that may very well bring about the end of the eurozone.

If one country is allowed to leave the euro, that means that other countries will be allowed to leave the euro as well.  This is the kind of uncertainty that drives financial markets crazy.

When the euro was initially created, monetary union was intended to be irreversible.  There are no provisions for what happens if a member nation wants to leave the euro.  It simply was not even conceived of at the time.

So we are really moving into uncharted territory.  A recent Bloomberg article attempted to set forth some of the things that might happen if a Greek exit from the euro becomes a reality….

A Greek departure from the euro could trigger a default-inducing surge in bond yields, capital flight that might spread to other indebted states and a resultant series of bank runs. Although Greece accounts for 2 percent of the euro-area’s economic output, its exit would fragment a system of monetary union designed to be irreversible and might cause investors to raise the threat of withdrawal by other states.

In fact, yields on Spanish debt and Italian debt are already rising rapidly thanks to the bad news out of Greece in recent days.

What makes things worse is that a new government has still not formed in Greece.  It looks like new elections may have to be held in June.

Meanwhile, the Greek government is rapidly running out of money.  The following is from a Bank of America report that was released a few days ago….

“If no government is in place before June when the next installment (of loan money) from the European Union and International Monetary Fund is due, we estimate that Greece will run out of money sometime between the end of June and beginning of July, at which point a return to the drachma would seem inevitable”

In the recent Greek elections, parties that opposed the bailout agreements picked up huge gains.  And opinion polls suggest that they will make even larger gains if another round of elections is held.

The Coalition of the Radical Left, also known as Syriza, surprised everyone by coming in second in the recent elections.  Current polling shows that Syriza is likely to come in first if new elections are held.

The leader of Syriza, Alexis Tsipras, is passionately against the bailout agreements.  He says that Greece can reject austerity because the rest of Europe will never kick Greece out of the eurozone.  Tsipras believes that the rest of Europe must bail out Greece because the consequences of allowing Greece to go bankrupt and fall out of the eurozone would be far too high for the rest of Europe.

A spokesman for Syriza, Yiannis Bournos, recently told the Telegraph the following….

“Mr Schaeuble [Germany’s finance minister] is pretending to be the fearless cowboy on the radio, saying the euro is secure [against a Greek exit]. But there’s no way they will kick us out”

So Greece and Germany are playing a game of chicken.

Who will blink first?

Will either of them blink first?

Syriza is trying to convince the Greek people that they can reject austerity and stay in the euro.  Syriza insists that the rest of Europe will provide the money that they need to pay their bills.

And most Greeks do actually want to stay in the euro.  One recent poll found that 78.1 percent of all Greeks want Greece to remain in the eurozone.

But a majority of Greeks also do not want anymore austerity.

Unfortunately, it is not realistic for them to assume that they can have their cake and eat it too.  If Greece does not continue to move toward a balanced budget, they will lose their aid money.

And if Greece loses that aid money, the consequences will be dramatic.

Outgoing deputy prime minister of Greece Theodoros Pangalos recently had the following to say about what would happen if Greece doesn’t get the bailout money that it needs….

“We will be in wild bankruptcy, out-of-control bankruptcy. The state will not be able to pay salaries and pensions. This is not recognised by the citizens. We have got until June before we run out of money.”

If Greece gets cut off and runs out of money, it will almost certainly be forced to go back to using the drachma.  If that happens there will likely be a “bank holiday”, the borders will be secured to limit capital flight and new currency will be rapidly printed up.  It would be a giant mess.

In fact, there are rumblings that the European financial system is already making preparations for all this.  For example, a recent Reuters article had the following shock headline: “Banks prepare for the return of the drachma

But a new drachma would almost certainly crash in value almost immediately as a recent article in the Telegraph described….

Most economists think that a new, free-floating drachma would immediately crash by up to 50 percent against the euro and other currencies, effectively halving the value of everyone’s savings and spelling catastrophe for those on fixed incomes, like pensioners.

A Greek economy that is already experiencing a depression would get even worse.  The Greek economy has contracted by 8.5 percent over the past 12 months and the unemployment rate in Greece is up to 21.8 percent.  It is hard to imagine what Greece is going to look like if things continue to fall apart.

But the consequences for the rest of Europe (and for the rest of the globe) would be dramatic as well.  A Greek exit from the euro could be the next “Lehman Brothers moment” and could plunge the entire global financial system into another major crisis.

Unfortunately, at this point it is hard to imagine a scenario in which the eventual break up of the euro can be avoided.

Germany would have to become willing to bail out the rest of the eurozone indefinitely, and that simply is not going to happen.

So there is a lot of pessimism in the financial world right now.  Nobody is quite sure what is going to happen next and the number of short positions is steadily rising as a recent CNN article detailed….

After staying quiet at the start of the year, the bears have come roaring back with a vengeance.

Short interest — a bet on stocks turning lower — topped 13 billion shares on the New York Stock Exchange at the end of last month. That’s up 4% from March and marks the highest level of the year.

If the eurozone is going to survive, Greece must stay a part of it.

Instead of removing the weakest link from the chain, the reality is that a Greek exit from the euro would end up shattering the chain.

Confidence is a funny thing.  It can take decades to build but it can be lost in a single moment.

If Greece leaves the euro, investor confidence in the eurozone will be permanently damaged.  And when investors get spooked they don’t behave rationally.

A common currency in Europe is not dead by any means, but this current manifestation is now operating on borrowed time.

As the eurozone crumbles, it is likely that Germany will simply pull the plug at some point and decide to start over.

So what do you think?

Do you think that I am right or do you think that I am wrong?

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

  • Colin

    Speaking of Italy, Moody’s has downgraded twenty-six (26) banks.

    The credit rating agency cites three causes:

    “1.) Increasingly adverse operating conditions, with Italy’s economy back in recession and government austerity reducing near-term economic demand;

    “2.) Mounting asset-quality challenges and weakened net profits, as problem loans and loan-loss provisions are rising; and

    “3.) Restricted access to market funding which, if persistent, will exert added pressure on banks to reduce assets, posing risks to their franchises and earnings.”

    Read more:

    The crisis in Europe is already having an impact on our trucking industry. Orders for Class 8 trucks, aka tractor trailers, are being cancelled at a record high. The last time cancellations were this high was in September 2010. One of the reasons for the high cancellations is the concern that Europe’s debt crisis will threaten the global economy, and as developed nations are cutting spending to improve their finances.

  • The phrase “If that happens there will likely be a “bank holiday”, the borders will be secured to limit capital flight and new currency will be rapidly printed up. It would be a giant mess.”

    is exactly is what will happen to the US when other countries stop using the dollar as a reserve currency. (it’s already happening, China and Japan decided to trade with each other directly, and Iran is now accepting gold for oil)

    and is exactly what happened in Argentina in 1990. Want to know what’s next after that? Go look at FerFAL’s blog “Surviving in Argentina”. Now imagine that worldwide.

  • 007

    I think they will not let Greece leave the Euro. The potential consequences could create a disaster. Instead the ECB will just start printing money to buy more government debt. In other words they will just decide not to give a damn about deficits. This new deficit spending will be viewed as a growth policy. They will print money until the people will riot over rampant inflation.

  • And already most foreign banks aren’t taking new American depositors because of a law that will take effect 1/1/13 that requires banks to report on them to the IRS, and it’s just onerous so they don’t want to deal with it. So we’ve already got prevention of capital flight going on, it just hasn’t turned exactly physical… yet.

  • Jim

    It’s looking more and more like the total collapse is here.

  • Paranoid

    Problem is I don’t see anyone weighing cost of Greece staying in vs going. Greece hasn’t balanced it’s budget NOT COUNTING DEBT. Nor do I see anyone who wants to. Just like US. There is no limit to how much of your money I can spend outside of you stopping me or you going bankrupt also. Cut them off! No more money

  • Pat

    Is the Euro the currency different from the “Eurozone” which is a political affiliation I live in the Eurozone. We use the Euro as our currency.


  • Maximus

    Michael, there is no other way than letting the indebted Greeks go if they fail to repay their debts and/or comply with the rules of the last bailout package. Yes, the Greek socialists bet on the fear of the rest of Europe to forgive Greece its debts but still keep their country in the Euro zone. I think Greece will be pushed out of the Euro zone if the fail to comply with the rules set in the bailout package. Otherwise, it would be a very bad precedent, likely to be followed by other irresponsible debtor nations like Portugal, Italy, Ireland and Spain.

  • McKinley Morganfield

    I am weary of discussions of what happens if Greece defaults. Greece has already defaulted and we can all see what happens. When you have to borrow today to pay the interest (not principal) on what your borrowed yesterday; you have defaulted, you are bankrupt, you are kaput! In the days ahead Portugal, Spain, and Italy will follow. IMO its not what we can see/know right now but what black swan will land and spread panic throughout the markets and onto Main Street. Prep, if for no other reason, prep as a hedge against the inevitable inflation.

  • Craig

    Honestly, I’m tired of hearing about Greece and the rest of Europe. So what if the Euro breaks up? The economy of Greece is the size of the Dallas/Ft. Worth Metroplex.

    What is significant to me is what is happening in our own back yard. Pat Buchanan describes what is going to unfold in the next 20 years. This is from a man who is one of the most level headed and honest and articulate people in America. Here is the problem we are going to face in America for the next 20 years. Most of us will live long enough to live through it. Buchanan calls this article T”he Declaration of Dependents”.

    • Rodster

      As the article and commonsense states, if Greece leaves then investors will lose faith in the Euro and the cost of borrowing goes up for those troubled countries who are built on socialism. It will be harder for them to borrow and those who lend them money will get the short end of the stick.

      It will have a negative ripple effect. The ripple effect will be more pronounced if Spain, Italy, Portugal and other Eurozone nations follow.

      Don’t forget the geniuses at the Federal Reserve have propped up the Euro with some of our money. It’s not good if Greece leaves the Eurozone and defaults. When riots begin to break out again, markets get spooked followed by investors.

  • Rodster

    Who can forget this article?

    A Very Scary Christmas And An Incredibly Frightening New Year

  • Paul

    Well, right now you can still buy 50% more US$ with the Euro than 2001.

    The Eurozone is very robust. The cause is that there are all different types of economies in it. Even a heavy crisis in one part (and after all, Greece has a population of just 11 million) does not bring the economic zone to its knees.

    Europe has a lot of experience in discussions and negotiations in the last 60 years.

    The unemployment in Germany is still shrinking.

    • DB200

      That is correct. From my experience, the Greek love discussions and negotiations. The are more interested in having a good discussion and a good meal afterwards than in reaching a good outcome.

      They think that as long as they discuss, they have all the time of the world before a solution has to be provided. And every agreement after lengthy discussions is seen as the start for new discussions. An agreement is some kind of a philosophy, that gives a vague idea of where to go and is open to all kinds of interpretation. An agreement is certainly not a starting point for action. It is not a coincidence that all big philosophers are from Greece. Philosophers are great debaters but bad decision makers, by definition. Philosophers can only be put into action when they are pressed to.

  • chiller

    Sounds like you’re right on track. INVESTORS – people looking to get something for nothing.
    The EU countries would be much better off if they’d invested in their own countries instead of everyone elses. It’s obvious that the person responsible for the creation of the ill conceived EU only had himself and his country in mind. Like a team of marathon runners who refuse to let their slowest runner bow out and insist on slowing themselves down in order to drag him along no matter how exhausted or bloodies his feet become. What’s the point? I understand it will make the rest of the team look bad if one of them drops out, which reaffirms the flaw of this system of being built upon looks instead of performance.

    • Paul

      There was no single person that created the European Union.

      It was a long process, starting right after World War II.

      And what’s wrong with resisting the “efficient way” to dump the disabled on the wayside?

      Just remember: IG Farben in Auschwitz-Birkenau was based on performance and efficiency. Very low input in regard to food, living conditions and healthcare, anybody who dropped out was shot and burned immediately.

  • Michael


    If Greece leave Euro, their economical situation will be AS DRAMATIC as the situation they live now…. hyperInflation with a new drachma without value….

    It’s truly an option, but it must be well prepared !!!! and not before the end of the year or early 2013 (printing new notes is a challenge)

    Greece is less than 5% of the eurozone. Well prepared, The exit won’t kill the eurozone, but only german banks which have a huge supply of greek debt. For Spain Italy, Portugal, ou even france EXIT IS FORBIDDEN !!!!!

    • DB200

      2% and dropping.

  • I agree, if Greece goes so does the rest of Europe. A bank run throughout all of the Eurozone will indeed scare the bankers and limits on accounts will send the people into a rage. Bond yeilds will destroy all Gov credit, 4 dead in Ohio

    • Paul

      Greece has 11 million people.

      That’s less than Shanghai.

  • pete

    You’re findings are reasonable enough and what you are claiming is likely true enough.


    You are selling short the printing press and the power of those that kick cans down the road.

    Often times what should happen and what ought to be done are cast aside in favor of supporting existing paradigms.

    Our economy should have collapsed and we should on the road to recovery now…..but it didn’t and we are not.


  • justanoguy

    I’m confused…. Greece lied to be part of the Eurozone to begin with. Now they are pissed that they can’t print their own money up to pay the bills.

    Who really gives a crap if Greece leaves the EU?

    If anybody should leave the EU.. it should be Germany. All of this nonsense is nonsense…. everybody already should know that Greece, Spain, Italy, Portugal, Ireland and now France can’t pay the bills they racked up so what’s the big deal?

    Let all of the dumb MF’ers that poured money into these stupid investments fail and let them eat Cake!

  • jox

    Lets see. Things look certainly more dangerous right now. But lets not forget that this blog and anglosaxon media have been forecasting the Greek exit from the Euro and the collapse of the Euro for the last three years, and every time is like “this time is really true!”.

    And regarding the article of yesterday, do you think that California will exit the dollar? ¿Will the complete American economy collapse because of California? How much is the yield of the debt of American States? When California collapse, how higher will be the yield of the other states?

    I mean, we all know that the whole thing will collapse, but I still believe that the chaos will come from US and the dollar, although all the finantial media are pointing fingers to Europe.

  • markthetruth

    Confidence is a funny thing. It can take decades to build but it can be lost in a single moment ….

    Its not a funny thing its the Fact!!

    If you lend a friend money and he never pays you back, you become ticked off , never lend him money again and the end of a friendship.

    If your wife cheat’s on you it’s more then likely you’ll ever trust her again and if it happens twice that’s probably mean’s divorce, it would if it was me.

    As in divorce then you have the wife that will get half of your stuff , you have to pay alimony , child support . Evil lawyers the end of a family and a crushing blow to the children. Who in most cases become rebellious ..

    Confidence is not a funny thing it is a serious emotion with two outcomes bad or good.

    The confidence game is use mostly by crooks , cheats , cults , scam artist , ponzi scheme (sounds like our government) and always ends up bad.

  • Ameen

    You are right, and it IS happening: this slow-motion train-wreck is picking up speed…

  • Excalibur

    What would happen if Greece were to announce they are withdrawing from the EU and it’s fiat currency, default on its debts, and simultaneously announce the drachma will be backed with gold?

  • Bone Idle

    Things have been moving very quickly.

    It was a race against who was going to get out of the Euro common currency first – Greece or Germany – looks like the Greeks will be first out of the blocks.

    The Germans have realized that they cannot keep the southern club med countries economies going otherwise they (the Germans) might suffer their own financial Armageddon. They will start finger pointing at all the other Euro countries (and ring in the U.K. as well) and blame them for not doing Mr’s Merkels bidding – this will be used as an excuse to leave the Euro.

    The Euro common currency was doomed from its inception – even before it was implemented. It was never going to work.

    The Russians will pour funds onto the Greeks after the Grexit. There’s alleged oil under the seas around Greece, there is already a pipeline between Russia and Greece.

    The Israelis are also interested in the oil. As a side line Greek Cyprus is closer to Israel then it is actually to mainland Greece. The Israelis would not like to see Cyprus in Turkish hands. Cyprus is actually very close to Turkey – Greece and Turkey have been feuding over Cyprus for centuries. Allegedly there is oil around Cyprus also. – The Turks have threatened to send an oil exploration rig to Cyprus waters to look for oil.

    Europe will also be interested in the oil. Expect Germany to pour some funds directly into Greece after Grexit. With The closure of Germanies nuclear power plants they will be looking forward to blackouts during high energy use months – such as next winter.


    Who cares? It is 2012 already. There is very little time left.I heard that when the Euro was set up, it was designed to fail. Just one step in front of the brand new One World Money. La-de-da, good bye Euro. Good bye and Goodnight to the world as we know it. It may be 2012 but we are living 1984. If you have not read that book, read it now. It is more revealing than your morning newpaper. Just doing my job as Doomsayer.

  • whteshark

    If I was the Germans, I would take my mark and go home. The Greeks are ridiculous. It’s austerity and dependence or inflation and independence. Make your choice, Greeks.

    And to think these people are descendents of Socrates, Leonidas, and Alexander The Great.

    • mondobeyondo

      Don’t forget Plato…

      • GaryToo

        alexander was macedonian, they dont like being lumped together with greek.

        Lets not forget the Spartans, they should all accept a spartan existence.

    • Paul

      The Germans profit most from the Euro. If they had an expensive Mark, nobody would be able to buy their goods.

      Just look what happened to Eastern Germany in 1990. They switched to DeutschMarks and over night all their markets in Eastern Europe dropped out, because none of them could afford to buy German goods anymore. The East German economy crashed down, 2 thirds of all jobs were lost, most of the factories were closed. Unemployment in East German cities rose to 65% and more. Extreme right wing groups started to burn homes of foreigners, blaming them for their mishap. Creating “nationally liberated zones” in the South East.

      All that money pumped into East Germany after unification went to West German companies who built streets in the East, and painted houses; just like the bailout money now is used by Greece to buy German panzers.

      Germany can’t get out of the Eurozone.

  • Buzzy Watts

    I don’t think the globalists have a comprehensive objective–just a loose fantasy about subsuming everything, under the assumption that they can continue to buy their way out of dealing with the consequences of their actions.

  • Syrin

    I don’t agree with the conclusion.

    Let’s assume Greece leaves the EU so it can print worthless currency and become the liberal utopia of Zimbabawe or the Weimar Republic. I would assume that Spain, Italy, Portugal, Ireland and perhaps even France might consider doing the same. So yeah the EU as we knew it would no longer exist, BUT, look at the remaining countries. Nations with more stable economies, sound economies. All of a sudden the parasite nations are no longer part of the EU dragging down the Euro. The value of the Euro at that point could potentially skyrocket, especially as all the debtor nations are printing away worthless cirrencies of their own.

    In the transition, the value of the dollar would likely strengthen as people flee the Euro at least temporarily.

    • Gay Veteran

      “…liberal utopia of Zimbabawe….”

      you smoking crack?

  • Syrin

    Hey Gary, since you are so economicllay illiterate, let’s take some time to learn. Know what Sweden did, since you use them as an example repeatedly?

    “Since becoming Sweden’s finance minister, Borg reduced the size of government and cut taxes. His ‘stimulus’ was a permanent tax cut. Borg’s actions, to his critics, were fiscal lunacy. They called it the ‘punk tax cutting’ agenda. Borg, however, thought lunacy meant repeating the economics of the 1970s and expecting a different result. Borg cut taxes and cut welfare-spending to pay for it. He even cut property taxes for the rich to lure entrepreneurs back to Sweden. For Borg, economic recovery started with entrepreneurs – if cutting taxes for the rich encouraged risk-taking, then it had to be done.

    And guess what! Today (May 10, 2012) Sweden has no deficit – and economic growth. While the Euro started to melt down, most countries in Europe borrowed massively, Sweden and Borg did not. Though not officially not in the Eurozone and it does not use the Euro, Sweden is still part of Europe.

    Borg said, “Everybody was told ‘stimulus, stimulus, stimulus’,” referring to the EU and IMF urging a debt-fuelled spending splurge. But when we look at Spain, Portugal, or the UK, whose governments were arguing for large temporary stimulus, it’s clear who was correct. What even Borg did not expect was that his tax cut would increase economic growth so much that it has almost entirely paid for itself. Borg had created something that British MP and the Chancellor of the Exchequer George Osborne’s critics say does not exist: a self-financing tax cut.

    Imagine that! What worked here under Coolidge, Kennedy, Reagan and Bush also worked for Sweden, Canada, etc etc etc. Hey GARY. It’s practically a mathematical formula.

    Why do you like being wrong so frequently. See history and analysis are tools conservatives use to make WORKING policies. Not policies based on hate, jealousy and greed that they think “should” work.

    • Reality

      Doc, I always love your posts! Keep em’ coming!!

    • Uncle Wup

      Well said but I would also add that not only will the collapse of EU cause financial havoc there, but my guess is it will only take a long week to hit the US & the $ could be done with & allow the IMF to usher in their One World Currency For “ONE WORLDERS” everything is right on coarse …Wup !

    • Gay Veteran

      a lot of our problems (like debt and income inequality) really started taking off under Saint Ronnie

    • Paul

      That’s not new.

      During the Asian financial crisis in 1997, the first thing Hong Kong did was reducing income tax and increasing tax allowances to leave more money in the pockets of the people.

      Only when Hong Kong went into deficit, they increased the income tax to 16% and reduced the tax allowance to US$ 12,800 annually for each adult (half for minors).

      Last year, when Hong Kong went into overdrive again and had lots of money, they gave a gift of US$ 750 to each citizen over 18 and another US$ 750 tax refund to each tax payer.

      Life in Hong Kong is very easy in regard to red tape and government interference.
      Everybody has an ID card, but it doesn’t show your address. You don’t need to tell your address to anyone, you just have to pay your tax in time. Now you can do everything online.

      Everybody who has an ID card has access to free medical care in public hospitals. You just need to pay about US$ 10 A&E fee to discourage use of A&E for non-emergency cases.
      The ID card give you free access to public libraries and the Internet within these libraries.
      The Central subway stations has public computers installed which give free access to the Internet.
      Internet access in coffee shops is totally free.

      Compared to that you can open the first website free in the UK, but then have to pay if you want to go further.

      In Germany, you need to register with your name and address and ID-card if you want to use a pre-paid phone.
      And you can’t use free Internet. And if anyone uses your unsecured WiFi and commits a crime, you are held responsible.

      In Germany everyone else is treated suspiciously, that’s why you won’t see any friendly or smiling Germans within Germany.

    • Paul

      Sweden has a population of 9 Million.

      Sweden also announced they want to be the first country to be independent of fossil fuel.

      When Sweden will stop importing oil, of course that money can remain in the country and be invested in other things.

      And – people living on cold climates have to be more resourceful than people living in warmer climates, just to survive.

      Is it any wonder, that countries in warmer climates where nature provides everything are worse off than countries in colder places?

  • Evie

    Maybe the central planners did not plan everyone would not want to be a debt slave. They certainly forgot that when people are not working they will not buy. They want all of the assets so they can decide what is best for us all. Too bad it is not benefitting anyone but them.

  • K

    Good article. I even agree the time of a common currency is not over. It just should be. The eurozone is like a bad marriage. In times of plenty the differences can be overlooked. But when things get tight, those differences resurface. Europe has been at war with itself, for over a thousand years. A common currency can not overcome all the old hatreds. It is just the pride of man, that keeps him from admitting his mistakes. They could go back to printing their old currencies, and the chaos would end in a year or two. Instead they will drag it out. One Country after another will drop out, and chaos will last for a decade or more. Europe may be one big family, but it is not a happy one.

  • Cinderella Man

    Yes this is our Lehman Brothers moment. I watched Meltdown a very good documentry on the collaspe of 2008 and it was eye-opening to say the least how close the entire global economy almost shit the bed. The time is rapidly approaching again. This time it will be much worse because we are much poorer and weaker to deal with a catastrophic collase. We are out of options and out of time. I have no idea how the rest of this year is going to play out, but I do know that Barry and Uncle Ben are out of fancy tricks to save us.

  • mondobeyondo

    Europe’s caught in a classic Catch-22. If Greece leaves the euro, the Eurozone will be in serious trouble. And if Greece stays in the euro, the Eurozone will be in serious trouble. Sooo…. looks like lots of trouble on the horizon.

    (btw – for those who don’t get how this entire European financial crisis Mess unfolded, Gonzalo Lira does an excellent job of breaking it down.)

  • Eric

    As I have written about previously, New York Times economist Paul Krugman is wrong about a whole lot of things, but in a blog post the other day he absolutely nailed what is likely to soon unfold in Greece….

    You nailed him the first time.

    Paul Krugman is a cretin in the field of economics.

    The euro greek tragedy has been unfolding for a number of years, in comes Mr Kurgman minutes before lights out for Greece, rehashes what has been on the blogs for months, and now he is the brilliant “man who nails it” !!!

    Michael, are you daft?

    I got a brain freeze right there.

    I call poppycock on the rest of the story, even if what you say about greece turns out to be 100% correct.

    • GaryToo

      times 1000, so far behind that he predicts something happening when it is alreadiy happening, spain and italy banks already limiting withdrawals and preventing capital flight.

  • There is to day Tuesday 15/may/2012 the start of an Under the Counter Trade in Britain and the EU generally in Bundesbank EUROS € and shortly there will be a stampede away from EUROS printed in GREECE – SPAIN – ITALY –

    Get Ready for the Collapse

    Regards P.J.Coyle Powys Wales UK

  • justamom

    Thanks, Michael. Great article. Timely. Relevant. Sobering. I appreciate the way you bring so many articles from diverse sources to the same webpage.

    The unthinkable has just become thinkable…perhaps probable.

  • 005

    I’m not very well-read in the euro-zone situation.
    My question is, how would the ripples (or tidal wave) from the euro break-up affect American holdings.
    I ask, because US debt is so widespread, I have no clue how this would affect the US situation.
    thanks for your time

  • Washington

    The Bureau of Public Debt at the Treasury Dept just released data that shows the national debt is currently at $15.566 trillion. To put it in perspective, that’s saying that… Every American man, woman, child and newborn owes $49,690 to pay off that debt.

    In fact, if every person and business in the US donated 100% of EVERYTHING for a YEAR… It STILL wouldn’t pay off the debt. Of course, Obama blames Bush. But that’s the shocking thing about this data…The debt has increased MORE in Obama’s years in office than under Bush’s 8!

    Economic Editor Marc Faber predicts that the only way out of this downward spiral is hyperinflation. And we’ve seen this happen to Germany already. Germany fought WWI on credit. We fought the War On Terror on credit. 5 years after the war, a cup of coffee in Germany that cost 1 mark would have cost 1 trillion marks. 5 years after the war for us… is right around the corner.

  • CJ

    My prediction…

    Germany is actively hedging its bets and is already printing Deutschemarks.

    You’ve read that right. I say Germany is secretly planning their own exit.

    • Michael


      There have definitely been persistent rumors along those lines.


    • Bone idle

      Plus Germany has firewalled their banks for the retreat.

    • Graham


      I would hedge my bets in this direction to for a multitude of reasons, mainly related to the strengths and current risks to Germany’s economy. A sharp exit would allow for a natural reboot of the Euro currency system and essentially leave Germany’s future protected and intact.

      Whatever the “analysts” are stating, consider the opposite.. then watch! I also suspect a degree of manipulation is going on in order to drive investors in the short term to the US Dollar. This may partially explain the “odd” movements going on just now in Gold and Silver pricing.

      Anyway, perhaps I’m just talking nonsense. I will certainly be interested to see what transpires on or around May 20th and June 5th. The next key dates to watch thereafter will be late July going into early August. I refer here to “global” manuvres

    • mondobeyondo

      That is quite possible.
      Will it happen? Who knows?
      As for me? I can’t tell ya. Sorry.
      Crystal ball is on back order.
      Should be getting a new one by June of 2015.

  • chris

    I hope Germany gives Greece a reality check. The sense of entitlement is astonishing…..

  • Bill Goode

    Obviously Greece cannot survive within the Eurozone, despite Syriza’s misplaced optimism. It won’t get or have the money to run its government. Syriza is delusional and apparently does not understand arithmetic. The money isn’t there, so Greece exits. There is no other alternative. Will Germany agree to more bailout money put on the shoulders of its German taxpayers? Will the German taxpayers tolerate that? I don’t think so. I wouldn’t. But if they do, then of course the can can be kicked further down the road.

    So Merkel has two choices: 1) Face the ire of German taxpayers and continue to bailout Greece (for how long?) or 2) Let Greece exit by default, since Greek politicians don’t want to exit on their own, and investors will face the consequences. So who will Merkel side with – German taxpayers or foreign investors? Either choice for Merkel is just kicking the can down the road and both roads are dead ends. But countering German taxpayers and continuing the bailouts is the shorter road, because German taxpayers have less money than foreign investors.

  • I feel so sorry for the people of Greece. I know a lot of people think they did it to themselves and now they have to pay the piper. But the Greek people just did what we are doing, going about their everyday lives letting their politicians and banks run the country and the economy and now they are living in an economic cesspool that almost every day opens with new and more frightening horrors and they keep thinking it’s all a bad dream and pray one day they will wake up from. I am affraid there IS NO BOTTOM to this mess.
    And one day the whole world will be dragged kicking and screaming into the cesspool with Greece.
    DO NOT (just) buy Gold & Silver as YOU CAN’T EAT GOLD and SILVER WILL NOT KEEP YOU WARM & Diamonds and Platinum will NOT protect your family.
    See a Serious and Real FREE survival plan for you & your family at:

    • Rodster

      I blame the Greek people because they elected those bums. The same bums who promised pensions and early retirement. They deserve what they got.

      And make no mistake, it’s heading this way because we as citizens are more inclined to hire Politicians who cater to the Gary2’s of this world. We want it all, great jobs, early retirement with a pension, tax the hell out of the rich and corporations and give endless amounts of money to the unions.

      That’s essentially the recipe of Europe and the American sheeple have been dumbed down so much they can’t see what History has taught other Countries.

      IMO, you are either for small government and capitalism or you are for big government, social welfare aka socialism.

      I make less than Gary2 and i’ll still take small government and capitalism. At least it gives everyone a chance to succeed if you bust your butt whereas socialism just spreads the pain evenly. 😉

  • Chris

    Alternatively a Greek exit could actually be used to the advantage of the Eurocrats. If Greece exits and returns to the Drachma the situation in Greece could rapidly get seriously out of control. This could be used to say to the other PIGS ‘look what will happen to you too if you exit the Euro’ and will scare the population into believing staying in even with austerity is better. Under these exceptional circumstances the ECB does QE like the bank of England and the Fed and uses the QE money to buy up Spanish/Italian etc bonds and thus the prospect of a domino effect is avoided. Turkey is allowed to join the Euro to make up for Greece leaving. All the turmoil is used to convince the populations that there is an absolute need for fiscal and political union, which was no doubt the aim all along. Job done. Order out of chaos. Problem – reaction – Solution.

  • Rick

    If I were living in Greece, I wouldn’t want to spend the rest of my natural life as a perpetual slave to the big capitalist bankers. Greece is already mired in a Depression thanks to these predatory capitalist bankers so the Greek people have nothing to lose and everything to gain by defaulting on the country’s debt.

    • Jay

      So how does defaulting on the debt eliminate the economic black hole that is now Greece and return them to prosperity? Let’s see the new Greek drachma – your new salary is 500,000 new Greek drachmas per MONTH!!! Wheeee – but takes 45 million to buy a barrel of oil, 450,000 for a liter of gas, and your light bill is 200,000 per month. Ouzo is a bargain at 15000. (of course the car probably runs better on ouzo). so how is that better?

      The only thing that will bring Greece back is for them to realize that a hairdresser should not be able to retire at age 50 on 100% percent pension, that a railroad engineer driving a train with no passengers should not have a job, and that the Germans are NOT responsible for their retirement and health care.

    • Miami

      Nonsense, Rick. The Greeks voted themselves a socialist state they can longer afford. They’ll be slaves to their own greed. Let them get off their fat Greek asses and work their way out of the mess they voted themselves into.

  • Washington

    Welcome to the history cookbook. Do you know what the Vikings ate for dinner? What a typical meal of a wealthy family in Roman Britain consisted of, or what food was like in a Victorian Workhouse? Why not drop into history cookbook and find out? This project looks at the food of the past and how this influenced the health of the people living in each time period. You can also try some of the recipes for yourself.

  • GFB

    we have similar conclusions … they are going to crash on the weight of a burden of the bankers making .. the ripple effects will be felt far and wide.

    • Miami

      Oh yeah, the big bad bankers voted in the Greek socialist state that now has a stranglehold on their economy. It’s always the bankers, never the citizens that vote in the politicians who enact these unaffordable welfare states.

      • DOD

        Both contribute to the problem, but politicians are simply puppets to the bankers. It doesn’t matter who they vote in. For the US, you get Obama-Sachs or Romney-Sachs. Take your pick. Too many people today are still in the left/right false-dichotomy illusion. It keeps up separated and battling against each other, which is what the they want.

  • Rodster

    Greeks Rush the Banks; Lines Form at ATMs; Nearly $1 Billion Withdrawn in Past Week

  • Sid Davis

    Here is a basic rule of nature:

    When the pain and suffering that comes from political arrangements exceed the pain and suffering people perceive will come from fighting against it, nature will take her course and violent political action will result, whether it is civil war, revolution, or some other civil upheaval.

    This will happen in Europe. This will happen in the USA. When those who occupy the seats of power make the purpose of government the enslavement of the majority for the benefit of the few, instead of the preservation of freedom, political arrangements can not for long stand.

  • George

    Greece can run out of money and still stay with the euro as its national currency. It’s been done before–most recently by California. In 2009, California had no cash to pay its creditors and instead issued “scrip”, a fancy name for an IOU. See, Scrip and cash can circulate together in an economy for a time, as happened during the 1930s Depression. By issuing scrip rather than paying in euros, Greece can still default on its debt, renege on its pension obligations and government worker salaries and yet technically remain a euro currency country. California, as usual, was years ahead of the curve.

  • Historically when the people reject and refuse
    To believe the truth; They are forced to believe
    A lye.How many millions of people can believe a
    Lye in masses?

    Because God have sent a lying spirit all over
    our countries to deceive us and cause us to
    Suffer the consequences for our own wrong choices.

    Please find the evidence in the Bible books of
    First Kings chapter 22: verses 22 & 23
    Also in Second Chronicles chapter 18: verses
    21 & 22

  • MadridRebel

    Greece will leave the Eurozone and Spain is bankrupt. We know it. Spanish president lies about our economic situation. The crash in here.

  • George

    Greece will default completely this summer. Followed by Spain. It will be painful and lots of banks will go under. US banks will need to be bailed out also. Stock markets will tank this summer. Going to be a buying opportunity for gold bugs also. Gold will go down, dollar will go up. Hard times. When things get bad enough QE3 will be announced. We are in trouble.

  • JackieG

    Collapse of the global economy as we once knew it can take place with such speed, it will leave the vast majority frozen like a deer in headlights.
    Just as it did in the 3rd century in the Roman Empire.

  • Greece doesn’t want any more austerity? There hasn’t BEEN any austerity.
    Their government is spending more NOW than back in 2008 when the financial
    crisis began.

    So, the people of Greece don’t want any ‘more’ austerity? Hahahahahaha!
    What do they do? They vote in new/different politicians! Hahahahahahaha!
    Like THAT’s going to change anything…the problem in Greece is, the people are
    SHEOPLE. They have NO CLUE about what is going on in the world. They still think
    ‘government’ is there to help them. They don’t know what the problems are, and
    they don’t care. They aren’t capable of fixing the problems, because they just
    aren’t smart enough.

    America the Lost will end up the same way. When the ‘austerity’ measures start to
    take effect here, the Sheep will try to elect politicians to save them from the
    pain. The politicians won’t take the necessary steps to fix anything, for fear of
    getting outed.

    Just look at Hollande: why, he’s going to give the people everything they want.
    NO, he’s not…. he’s lying. What makes people like this stand up to be elected
    when they know they won’t change anything? The power? The money? Narcissists?

  • JackieG

    World trade has ground to a halt.
    The evidence is here….
    European banks financed these ships that are now working for peanuts if, they are working at all.
    Many shipping company’s are refusing to even take delivery of their new ships.
    This in turn leaves the banks holding an empty bag.
    Over 1800 of these behemoths are slated for champagne in 2012 alone.

  • Bryan

    i wonder i truely do if this is just setting the stage for the collection of 10 nations for the antichrists government i believe it is!! only a matter of time people!! absolutely amazing to see what daniel wrote about and what is spoken of in the book of revelation coming to pass

  • mondobeyondo

    Wanna know where the U.S. is headed?

    Look about 4,000 miles southeast of New York City, a little past the Parthenon and just to the left of the Acropolis. We have seen the future, and it is now.

    [Ancient ruins included. We’ll even give you Detroit for free!!]

  • Evie

    Globalization: a way to be controlled by corporations and the elite where prices escalate and everyone but a few get to pay for debt or the mismanagement and squandering of capital. One currency? They cannot even control the banks.

  • bojangles

    all good things have to come to an end, but not today. I don’t think anything is going to happen. I think that Greece is going to keep up their agreement, after all they are just talking about getting out of the agreement with the EU. Talking and doing are 2 different things.

  • I’ve read several very good articles attempting to put the Greek debacle and the implications of the dissolution of the Euro-zone and it’s currency into perspective But this article possibly is the best one I’ve read, keep up the good work.

    • Michael

      Thank you for that very nice compliment. 🙂


  • flipping psychic

    It’s cause they’re all commies. What they should do is all donate a pint of blood and sell it on the free and open market. Then use the money to pay off the debts. Simples!


    “Greek depositors withdrew €700 million from local banks on Monday”

    Nothing says confidence in your country like a good old fashion bank run!


    Europe is in shambles, Greece IS in a full blown depression and Spain is not far behind with over 20% unemployment now. Ireland, Portugal are headed over the cliff and Italy is almost there. Now France has elected a Socialist who states he is NOT going for austerity but is full speed ahead with his economy (but where is he going to get the money for all this). And now it looks like Greece will be electing a Communist Government who will consider all moneys due that Greece owes is Null-and-Void since the Greek people didn’t vote on the loans there Government took out and many of the buyers of their Greek bonds were misslead (lied to) by agressive Goldman Sachs traders. Greeces Communists say they don’t owe the money and WILL NOT PAY ANYONE. And that’s just what the people want to hear. But this type of default has consequences for the European banks and American banks and investors who lent them money. IF Spain goes down this road there will be NO containing the problem and then it will effect the whole world, and throw the whole world back into the dark ages, financially.

    • Get real. The banks did not “lend” anyone any money.

      They created the money out of nothing and simply made the Greek Government pledge their assets as collatoral for this “loan”.

      That’s how banks “lend” money. They create the loan out of the lenders collateral. Read the bills of exchange. Learn about fractional reserve banking. Get a clue.

      The Greeks ought not to pay a single cent confiscate all the bankers assets as compensation.

      • Jeff

        AMEN Herman.

        The Greeks should tell Goldman-Sucks to go to hell, then confiscate their assets within Greece.

        Until GS is eliminated from the Earth, we can’t ever begin to heal from what they have wrought upon us.


    As a last ditch effort, discussing the following scenarios with the non-prepper may help them understand what life will be like without what has sustained them so comfortably for so long.

    This is the hard reality the non prepper needs to understand:

    • Without power the water company cannot get water to their faucets. Without water dehydration occurs within 24 hours. Dehydration causes much suffering before death.

    • Toilets in homes, unless they have an incineration toilet that still need power to work, don’t flush without water. Where will they go to the bathroom and then where will they dispose of human waste?

    • There will be no clean water available anywhere, especially in major cities, and they cannot live more than about three days without it.

    • Drinking dirty and polluted water will make them incredibly sick and accelerate the dehydration process.

    • Polluted water must be purified and that means having a good filter, bleach or other disinfectant, or fuel and something to boil water with.

    • Understand just how fragile the power and the infrastructure is that pumps water to the public. A breakdown in our power infrastructure or a cyber attack against utility systems will render them useless.

    • A single event can rapidly lead to a cascade of other events that would certainly collapse almost, if not, everything. This is why major snow storms, hurricanes or solar events in the past have affected millions of people in an entire region all at once.

    • A single, seemingly unimportant event may become quite terrible as its repercussions spread; this can include a far and away disaster.

    • Understand that the economies of the world are so interwoven that when one major economy falls it affects everyone.

    • Not having any food in the house means that if the stores are emptied suddenly in a bad enough situation that there will be no food available for a long period of time afterward. Recent history during disasters around the world has shown that stores can literally be emptied in minutes.

    • Think about how totally horrible the feeling of being very hungry is and what circumstances would cause one to be desperate enough to eat anything.

    • ALL stores can be closed instantly under martial law.

    • Understand that you may not be able to purchase anything after it starts, especially with any credit cards.

    • Understand the complexity of food and water distribution; breaks in these chains can stop anything from getting to the people.

    • What life will be like if no toilet paper is stored?

    • Understand that without light sources, the night will be pitch black, often with zero visibility.

    • There will be no communications, other than probably martial law type of instructions over the radio, that is if they have batteries for the radio.

    • Other than ham and shortwave radio, any information that is available will be sent out by the government as filtered propaganda that “they” want everyone to hear.

    • Without power consider what it will be like to not have any heat to stay warm, or air conditioned air to stay cooler – with no way of alleviating the situation.

    • Travelling will likely be by foot or bicycle, as their will be no fuel and roadways may be blocked.

    • Realize that ANY travel outside of the home or neighborhood will be extremely dangerous as ANYONE who moves becomes a target.

    • Non preppers will be pushed way beyond their limit because of lack of supplies.

    • The non prepper must realize their government does not really care about them individually, that they are a mere number and help will likely not come from them.

    • They have to figure out somewhere to get food. This can mean wild plants which they must know how to identify as safe, or risk poisoning themselves.

    • They have to understand that when we refer to “having no food” it doesn’t mean not having the food they are used to enjoying, it means no food to eat at all.

    • They have to understand that if they are fortunate enough to have any running water, they will probably have to bathe in cold water for lack of stored fuel to heat water.

    • They have to realize that the very strange and totally unexpected is going to be all around them, made that much worse because of lack of any reliable self defense stores or skills.

    • They might have to remain on the run constantly because of looking for water and food.

    • They must understand that bad will be magnified magnitudes to living misery because of lack of food, water, and other necessary items that they took for granted for so long.

    Okay, now comes the “truly ugly and unthinkable” life that most, if not all, people that have failed and refused to prepare themselves will deal with. Clear vivid visualization is key here for anyone that ho hums the idea of prepping.

    What horrors they will likely face after a cave-in of their nation’s economy, war, geophysical upheaval, or whatever crisis is bad enough to disturb or stop their nation from working and functioning? There are plenty of very potential SHTF events that are simply awaiting a catalyst to trigger them.

    • The Non-Prepper (NP) has to realize right off the bat that 911 and other emergency calls in will be met with silence or some recording telling the caller not to panic.

    • The (NP) that has no reliable self defense that can stop an attacker, will not get help from public services, and will become a victim of rape, assault, torture, or murder.

    • The (NP) that has no reliable self defense and will not only be at the mercy of criminal elements, but also have to contend with many desperate animals, some with rabies.

    • The (NP) that has no food will either have to find food or be ready to beg for food or worse, like sacrificing their bodies or other horrible acts or things to get a bite of food.

    • The (NP) will have to go through the worst, most rancid conditions of garbage to just maybe find what they should have stored up.

    • The (NP) will go through panic and near if not total psychosis looking for any water source right before their bodies begin shutting down during advanced stages of dehydration.

    • The (NP) will go through unbearable trauma when their children and other people around them are crying, screaming, and suffering with intense hunger pains in their stomachs.

    • The (NP) will have to deal with the awful stench of rotting wastes from many sources because they have not taken the effort to even store up waste disposal plastic bags.

    • The (NP) will have disease and pathogens everywhere, not only because they have no trash disposal means, but because they haven’t prepared how to deal with trash and waste.

    • The (NP) will have to live in very primitive conditions after things around them deteriorate rapidly, because they have neglected putting away anything to make life more bearable.

    • The (NP) and those around them will likely develop all sorts of infective skin rashes from the lack of insight of storing up toilet paper. Imagine the smell for a moment.

    • The (NP) will have to handle biting insects and other vermin that will collect amoungst the filth that will pile up. No pest control stored up along with no other supplies.

    • The (NP) will have no way of treating sickness certain to follow a SHTF event, no first aid and likely no training or knowledge about how to treat the ill on top of this.

    • The (NP) will have sick and dying people around them because of not being able to treat minor injuries. Didn’t even stock up on disinfectives. Unsanitary conditions lead to infection.

    • The (NP) and others around them will experience much grief as they watch helplessly as their family members literally die of starvation right in front of their eyes.

    • The (NP) won’t believe how desperate hunger drives them and those that mean everything to them to “trying” to eat food that taste so bad it gags them and comes back up.

    • The (NP) will likely have family and friends around them that have also not prepared committing suicide because they can’t take it any longer.

    • The (NP) will witness some of those people around them lose any sense of civilized humanity in them and behave like wild animals after some time from lack of necessities.

    • The (NP) and family members, maybe friends also, will at some point end up barbecuing or eating raw the family dog, cat, bird, any pet dear to everyone for food.

    • The (NP) will likely get into physical fights with other family members over any scrap of food available as rational thoughts are lost to wanton hunger.

    • The (NP) as many other (NP’s) will eventually go out of any safety of their home looking for food and or water, become disorientated and lost, and die a hard death somewhere.

    • The (NP) that is “lucky” enough to find some government help will likely have to almost sell their soul, probably all their freedom, to get tiny rations – just enough to keep them alive.

    • The (NP) will see widespread violence and barbarism that will shock them to the core and will wish that they had purchased some form of firearm and stocked up on ammunition.

    • The (NP) better get used to attempting to explain the children and other adults why they wasted all that money on junk, and didn’t buy any emergency food and other supplies.

    • The (NP), no matter how positive they are will drop quickly into depression and lose willpower as having nothing to hold on to does this, along with lack of any nutrition.

    • The (NP) will feel the worst guilt imaginable as they hear their family moaning in anguish from lack of anything to eat, knowing they could have done something to prepare.

    • The (NP) will most likely not see the rebuilding and recovery after A SHTF event. They will, like almost all NP’s, be statistics. Some will die hours or a day before help arrives.

    • The (NP) from lack of food, drinking bad water, no light at night, the horrid smells, no good self defense, the overall horror, will often be paralyzed with fear and despair, blank stare.

    • The (NP) is totally helpless after SHTF, will have to rely totally on charity of those prepared to live. They will take all sorts of desperate measures likely to get them shot. They’ll attempt to eat hazardous foods like an animal trapped in a house will do, and get sick and suffer much before dying. The (NP) will likely die (ugly and hard) as they lived, unprepared for anything.

    If we were to use one single word to describe the torments that someone who “chooses” not to prepare will go through after a true you know what hits the fan it would be “PREVENTABLE”.


      damn i hope im not a NP!!!NON PREPPER!!!!


    When Jesus comes back, will he find faith on the earth? The rhetorical
    question implies that faith will be scarce. Our Lord’s words do not predict a
    general improvement in the spiritual condition of the world before his
    The danger is not that Jesus will be unfaithful to us but that we will be
    unfaithful to him!
    When He comes back, He is going to find something…my question to you
    is, what is that something???
    Every day you are confronted with challenges that could sway you away
    from God.
     These challenges are designed to do just that.
     We should take these challenges and turn them into opportunities to let
    our faith shine.
    Lest Jesus comes back and comes looking for faith and finds none in you.
    Hebrews 11:6
    Faith pleases God – only faith, nothing more and nothing less.
     To be specific, in these cases these men already believed in God but
    what pleased God was that they lived by faith.
    o They did things by faith
    o They spoke faith
    Example –
    By faith – Noah built the ark
    By faith – Abraham left his home to go to a place he didn’t know
    By faith – Sarah received strength to conceiveW
    2By faith – Moses passed through the Red Sea
    By faith – Joshua marched around the walls of Jericho
    All these were acts of faith and these acts pleased God!
    Where are we all missing it? We are just too afraid to step out and believe
    God because of all that we are hearing.
     Gas prices are going up
     War in Iraq
     North Korea wants to blow us up
     The housing market bubble bursted
    1 John 5:4
    For whatever is born of God overcomes the world. And this is the victory
    that has overcome the world – our faith.
    Smith Wigglesworth said –
    “There is no telling where the blessing will end for a man who believes
    You know what strikes me from reading about all these men and women of
    faith in Hebrews 11? They were crazy!
     Think about Noah telling everyone it was going to rain, when it never
    rained before – ever! That’s crazy!
     Think about Abraham telling people that he and Sarah were going to
    have baby at 100 years old. – That’s crazy!
     Think about David telling an entire army that he was going to slay a 9
    foot giant – That’s crazy!
    Faith makes you crazy

    • DB200

      How about Elia? He is one of my favorite crazy guys.

    • Annette

      Smash, I love ya’, Brother! I am 58 years old. Jesus began smashing the things in my life that had gotten in his way. It continued for a long time. There was much to remove. I found Chuck Smith from Calvary Chapel on the radio and began listening to his daily bible studies and his Sunday sermons, morning and evening. It has taken time. But, now, if all I am is a 58 year old, homely woman, with nothing in this world, I will take that. I don’t want to pursue all the worldly things that I did. Beauty, clothes, houses, MONEY and FAME! I was well-known in my home town, but Jesus has removed me from even that. No one knows me here, and I have nothing to attract them. And it’s okay. I see my high-school friends who have had it all and committed suicide. I see some of them that proclaim to be believers, but they live a carnal lifestyle of luxury. I used to be jealous. Then I watched some of the videos on hell that people put on You Tube. There are a few that have been there and back. There is no way that I want hell, and I have laid it all down. I want Jesus. I want Jesus cause he is so beautiful! I can’t stay away from him. And I have grown to learn about walking in faith. Now,if I have a need, I place it before him and he always answers me. I love to see how he meets my needs. Sometimes, I just think of a need and he has it answered before I pray about it. He reads my mind! LOL!!! I love him. He is so much fun. I know that God is a consuming fire, and I stand in awe of him. But he is letting me discover his heart of love. I do hope for the rapture soon. I want to be ready. I want to be a wise virgin whose lamp is trimmed and she is waiting for the Bridegroom.

      • DB200

        Great testimony! Jesus loves you and so do I.

  • And the crazy train just keeps chugging down the tracks, *****************….

  • DB200

    It is like playing chess, a lot of options to consider during the game, but sooner or later it reaches an endgame and after hours of playing, the endgame can be done in a few minutes. This is the stage we have reached now.

    I think that the Greek will have to suffer far more than they have done up til now in order to create one Europe. When the commies go for a confrontation, then the EU will cut off the money. Chaos will ensue, Greece will then be forced to step out of the euro. Hunger, chaos, civil war (communists vs. fascists) will start just like the years 1945 – 1948. Greeks will emigrate in droves and in the end the military will take over, just as the colonels did in 1967. Then they will start “cleaning” the country as Pinochet did after Allende was brought down. This will scare the shit out of Italy and Spain and they will start to behave.

    So Greece has to be killed off to set an example for the rest and the commies are stepping right into this trap with open eyes.

    To think that the EU or euro at large would break-up is a fairy tale dreamed upon by Anglo-Saxons who don’t understand the Continent or Brussels. The man in the street would like to stop the European experiment but the upheaval around the euro has been used by Brussels and the European elite to move more power to Brussels acting as a catalyst to form a United States of Europe.

    Very regularly I hear in the news that this or that has to be changed or this or that act cannot be implemented “because of Brussels”. Or that proposals by politicians have to be withdrawn “because of Brussels”. More and more power is gravitating towards Brussels, hollowing out the European democracies. So don’t assume that the euro is dead. Countries may go dead but the euro is to survive.

  • Jesse Marioneaux

    It will happen here in the US when the US can’t pay the 15.9 trillion dollar debt.

  • Joe c

    Right wing nuts screwed USA with low taxes 15% on the upper 1% until they have 90% of the assets. At the same time right wing states raise taxes on the middle class. The welfare for the 1% has destroyed our economy. Give me a customer I will hire people. Time to tax the hell out of the top 10% and get this economy moving; Before the riots start, RIGHT wing nuts want to cut your minum wage (Ron Paul would like to cut minum wage )They will not be happy untill we are all collecting food stamps. 

    FREE TRADE must be stopped before we lose everything. In the history of the world,a country has  not been able to compete with slave labor. The only time in history we had this much free trade was just before the great depression. The people back then stopped free trade, then the media and globalist reverse history and try to convince the masses that this was the cause of the depression. 

    I ask you to think since Clinton and the republicons started NAFTA, free trade with China ETC… has your economic life been better or worse???

    These globalist are traders to this country.

    When you vote remember 
    You have a choice with a guy that will start a new war and give tax breaks to the rich and help out bankers. Or they you can elect a guy  that will start a new war and give tax breaks to the rich and help out bankers.  They do disagree about gays getting married  WHAT A JOKE THE 1% need to be taken down

    • Tantalon

      Joe C. You are so right. I was a Special Agent with U.S. Customs fro 25 years and investigated many fraud violations of the old Tarric Act of 1930 to which you refer. Free trade has bewen a disaster. You can not only ask are you better off economically(answer, no) but ask yourself what has happened the inportant nindustires we used to have in this country: footwear-gone; clothing(most notably Levis) – gone; snd steel (all but gone. I am not for outrageous tarrifs but before the advent of the income tax in 1913, guess what, we paid for everything the Federal government( now bloated beyond the ridiculous) did with revenues from customs and excise taxes. WE need to resurrect meaningful tarrifs. If people want German cars, French wines and fragrances, Chonese crap, etc. there is nothing wrong with incorporating a little additional expense by way of an appropriate customs duty.

  • mondobeyondo

    God Bless America!!

  • Mark

    Although the final chapters of this poignant saga haven’t yet unfolded, I deduce that even at this stage, a healthy dose of retrospect certainly wouldn’t go a miss or indeed be premature; furthermore, hindsight may prove crucial in avoiding another ludicrous phenomenon like this.

    The Euro.

    The single currency was headed for disaster from the outset. Poor planning, regular rule breaking-by the rule makers themselves-strong traits of arbitrary politics, no comprehension or concept of potential haphazard behaviour that could have anticipated a plight like this-or even hoped to have dealt with it successfully-no stringent and inconsistent regulation that overall allowed a collective institution to sidetrack and place individual interests at the top of their long agendas, to suit them at any given moment, irrespective of the broader consequences for all and the so called ‘rules’ that must be adhered to.

    As the Greeks only have themselves to blame for this nonsense of a mess, so too do the reprobates that thought the Euro a good idea in the first place.

    The Germans have egg on their face, yet again. They can’t eat humble pie and admit they were wrong. Nor can the French for that matter. Pride is an emotion that can work both positively and negatively. The trick is controling it and understanding when it is appropriate and when it is not.

    The simple reality is that the Germans are out for themselves. They always have been-refer to the first half of the 20th century-and more importantly, they always will be. Self appointed dictators such as Merkel (exactly, she isn’t even the President of Germany) amongst other infamous leaders, no names mentioned for fear of being politically incorrect or a tad ‘taboo’, we wouldn’t want that now. I know the truth and honesty is far too great for some people to swallow.

    Pointing the finger and laying the blame now is perhaps not the right time, given that there are other issues that need to be dealt with first. One can only hope that the G8 leaders are doing just that. It dosen’t give one a lot of confidence though when news articles showing photos of the G8-the most important world resolution meetings know to man-are casually dressed, engaging in banter and watching the Champions league final. May wonders never cease.

    Final observation:

    I fear the the worst is yet to come, and in the same breath I hasten to add, for good reason too. The evidence is all around.

    I hope that if there is ever such a situation not too dissimilar to this, quicker, more serious, and more productive action will be taken.

    And if the Euro does collapse and each country has to go back to where they came from, that it will have been enough for everyone involved to learn from.

  • andrewleiner

    x The Euro is doing what it was designed to do, collapse. Why? Because it was only meant to be a step toward a One World Money used to create a One World Government which will be used to form what Satan has been working toward for all these thousands of years, a One World Religion. Satan will be worshiped as the number one god and the AntiChrist will be worshiped as Satan’s Sith Lord. When will the Euro collapse? When Satan’s lap dogs are told by him to pull the plug and not one day sooner. I have been waiting for this for 39 years and change. And now it is here. Forty years ago I would do my doomsaying and the people would wag their heads and poopoo me. Now, things have changed. Many nod and many are becoming Preppers.

  • Satan wears a Jesus suit.

    People in the modern world (mostly Christians!) are naive. God gave you a brain, so use it. Don’t blame the devil, or the Islamist’s. Blame the democratic illusion, that is in reality a polycracy. The Federal Reserve Bank, big business interest, military corporations….since the early 1920’s, the strings have been wound….everything that we know, feel, and perceive is the ebb and flow from the pulling of these strings. Democrat, Republican, Conservative, Liberal….irrelevant brands for a herd population only given two means to a single end.


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