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Europe’s Fine Line of Deep Debt
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
Merkel-Lagarde
www.thedailybell.com / By Staff Report / Friday, November 23, 2012
Merkel’s day of reckoning as taxpayer haircut on Greece looms … Germany, Holland, and the creditor states of northern Europe have not lost a single cent on eurozone rescue packages, so far. Greece needs €100bn of debt forgiveness to get back on its feet, and a lot of this is coming Germany’s way … We are at last nearing the awful moment when the curtain is ripped away. Greece’s economy has contracted 7pc over the last year. Public debt will spiral to 190pc of GDP in 2013. Leaving aside the Gothic horror of youth unemployment at 58pc, Greece’s debt trajectory is simply out of control. The International Monetary Fund says the country cannot claw its way back to viability unless EU governments and bodies take their punishment. The Fund’s Board and the powers behind it – the US, China, Japan, Brazil – will withdraw if the current farce goes on. Greece needs €100bn of debt forgiveness to get back on its feet, according to Barclays Capital. A lot of this is coming Germany’s way. The creditor states can mask the damage for a while – siphoning off “frontloaded profits” on the ECB‘s holding off Greek bonds, and so on – but the overall sums are too large to cover up altogether. – UK Telegraph
Dominant Social Theme: Europe’s breakup is a challenge to the powers-that-be.
Free-Market Analysis: One of our favorite reporters, Ambrose Evans-Pritchard, has written about the tenuous situation in which Germany’s Angela Merkel finds herself. This article tends to support our larger analysis of Europe and the elites’ “directed history” regarding the crisis now facing Europe.
What we have speculated is that in a sense the current “sovereign” crisis is a phony one – generated via what we call directed history. We didn’t come to this conclusion lightly but by closely studying how economic crises unfold.
In the developing world, we noticed funds were regularly handed out (via the World Bank) to various corrupt government officials. These officials would then utilize the funds for their own purposes, eventually leaving their countries broke and in debt.
Thanks to BrotherJohnF
2012-11-24 12:22:15
Source: http://silveristhenew.com/2012/11/24/europes-fine-line-of-deep-debt-2/
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