Euro Crash – How it will all unfold
celticgold.eu
Part 1 of 3: The steps to breakdown
Last Thursday the ECB decided to keep buying bonds in unlimited
quantities. Super Mario, the ECB president said: ‘There are strict rules for
buying bonds.’ But they have not announced the rules and our buddy
Mario said: “The Euro is an all or nothing thing – no return.’ We have said
this many times before, there’s no opting out of the Euro.
The only two countries that have an opting-out clause in the Euro contract are Denmark
and the United Kingdom. And guess what? Are they part of the Euro? No.
Quantitative Easing, Bond buying programs, Operation Twist are all
names for one and the same thing: Endless money printing. There is no
way to reduce the massive amounts of debt. To balance the US budget,
and stop printing money (no more Quantitative Easing) Congress would
have to cut spending by about $1.5 trillion. This means they would have
to stop funding the military entirely, bringing home the troops from over
120 nations abroad, and close down all military bases, and dock all
aircraft carriers, and shut down all nukes and close all the nuke programs,
saving only about $800 billion/year. And then, they’d have to completely
end Obamacare, and in addition, stop funding medicare and medicade,
and raise the Social Security retirement age to about 73.
Do you see? There is no way around money printing.
People love guarantees. I’ll give you one: They will only stop until the last
cent of your savings is wiped-out. Period.
US-Economic Data is no better than Europe and history tells us repeatedly
over and over that paper currency systems don’t work. If you have
followed the Celticgold Bulletin for a while you will know that I’m a student
of monetary history and recommend that you read: This time its different –
Eight Centuries of financial folly by Carmen M. Reinhart and Kenneth S.
Rogoff.
The authors prove over the last 800 years that crises occur naturally as a
result of bad monetary policies. The assumption: This crisis is different and
can’t be compared to other crises was proofed to be wrong. Ding-ding;
wake-up.
The outcome in the past was that currencies devalue. Devalue means the
currency which is in your savings account, bonds, etc. looses its
purchasing power. Loosing purchasing power means you can’t buy the
same amount of stuff that you could buy one, two or five years ago. As
long as the central banks continue to print money which is the only
solution they have come up with, paper currencies will continue to loose
purchasing power.
Historically these currency devaluations happen all the time. The average
period for a paper currency is 27 years as stated from Mike Maloney, a
well respected trader, author and entrepreneur from the US.
The exactly same thing is visible right now in the Euro. When the Euro will
pass away, countries return to their ‘old’ currencies. In this currency
‘exchange’ people will loose the value of their money. Exchange sounds
nice, doesn’t it?
Before we go into it the detailed steps about the Euro crash, I would like to
recommend to watch this interview with Frank Giustra, a billionaire who
owns Lionsgate films and various mining companies.
A Billionaire’s Bet on Inflation – Frank Giustra Long Form Interview –
Video http://www.oneworldchronicle.com/?p=5302
The Devaluation of the Euro will follow these steps along:
1) More and unlimited money printing. The ECB and politicians will give
it creative names, but in the end it’s: Money printing. Every Euro that
gets printed dilutes your purchasing power a bit. A simple truth.
2) More Restrictions. As soon as the officials will see there is no
successful outcome to this, they will plot to destroy all value that’s left.
They will lock your money into your home countries accounts. Some
say this will happen by the end of 2012. Watch out for these
restrictions:
a. Travel restrictions with Cash
b. Banks will be closed for transactions outside of the Country
c. ATM withdrawal limits will be in place
3) Currency ‘exchange’ also called monetary reform. The balance in
bank accounts will get ‘converted’ into the new currency. Usually 95%
of the balance will be adjusted. This means wiped-out. The new
currency is handed out by banks.
Currency exchanges are a terrible thing for all savings and bonds. In part 2 we
have researched in-depth the monetary reform from the Reichmark into
Deutschmark in 1948 in Germany.
While savings got wiped out by 95.5%; gold preserved its purchasing
power by 80% and that would have bought you a 3-bedroom house.
Read More in Part 2 tomorrow.
Read More: celticgold.eu/goldbulletin
2012-09-18 22:02:57
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