It is hardly possible to keep up with the accelerating events. Amazing how quick a government can waste €100 billion. Just days after the European Union agreed to float Spain's financial sector, the yield on Spanish 10-year debt breached the all-important 7% mark – its highest yield since the euro was created in 1999. Yields jumped after Moody's cut Spain's credit rating. For the record: Portugal, Ireland, and Greece were all bailed out after their government debt yields climbed above 7%. In Spain's case, this is the point at which the country will need another bailout soon.
The Spanish government may announce additional fiscal cuts and structural reforms. Bolstered by funds from the ESM, Spain remains financially afloat for several months. But the Spanish economy continues to deteriorate and unemployment heads towards 30%.
The financial world is watching with disbelief and shock as the European banking and political elites do the daily shuffle in a veiled attempt to hold together a forced, non-elected European Union. While it continues to come further apart at the seams due to excessive sovereign debt and failing austerity measures, rendered meaningless by an explosion in fiat currency creation, not seen since the days of the German Weimer Republic.
"The EuroTitanic has now hit the iceberg and sadly there simply aren't enough lifeboats." Says Nigel Farage, from UK Independence Party.
The next scenario: Violent protests against Prime Minister Mariano Rajoy’s austerity measures, will lead him to call for a referendum. His government fails to get the necessary support from voters and resigns, throwing the country into full-blown political chaos. Likely another Guerra Civil, as the one of the thirties may occur.
Merkel cuts off further support for Spain, saying that hard-working German taxpayers have already done enough. In a hastily arranged mini-summit, Germany, Finland, Austria, and The Netherlands announce that they will not renounce the euro as their joint currency. This only increases financial pressure on France, Italy, and the other members. As the reality of the partial dissolution of the EU sinks in, the financial meltdown spreads from Europe to the United States and Asia.
Investors should study history and get ready for a fast replay of a new version of European history during1919, 1931 and 1933 that could transpire quickly over the next year.
Whether the effects of a worldwide depression will again be countered by another world war (WW3) is the only open question facing the world today. The failed European Union is going down. Of course the power elites will attempt to use the real or manufactured crisis as a pretext to expand the EU, but don’t believe they will succeed. The speed of events and flow of alternative news renders their old style propaganda powerless to keep up with and control public opinion today.
“We are indeed seeing a latter-day replay of the infamous Treaty of Versailles debt load forced on a defeated German nation in 1919 now levied on the entire European Union and this time Germany will be the winner. Maybe the turnabout is fair play but the long-term consequences could be as tragic as what the victorious allies did to a prostrate German nation that led to the rise of National Socialism and Adolf Hitler back in the 1930’s.”
“As was the case in 1919, 93 years ago, the banks and the power elite are seeking profits, gold and wealth at the expense of bankrupt and defeated nations but this time Germany is getting it’s revenge. In 1919, the victorious and "righteous" allied politicians that had earlier forced the United States to enter the war in 1917 in order to forestall a German victory so the American banks and arms industry could get their loans repaid and avoid bankruptcy, are this time on the receiving end. Germany might bailout the EU nations, at the last minute, but at the price of their gold reserves, control over economic policies and veto threat even over elections in the individual nations.”
“In May of 1931, the historic Credit-Anstalt Bank in Vienna, - now called UniCredit and based in Italy- founded by the Rothschild family in 1855, collapsed, - as will UniCredit do-. This in turn caused banks and companies across Europe to go under in a domino inspired panic. This collapse destabilized Europe far more than the Wall Street Crash of 1929 and over time destroyed European confidence and belief in political and financial institutions. The result was the rise in nationalism, fascism and ultimately World War II.”
“Americans don’t really know European history but the people of Europe do and this is why the elites are so determined to avoid another banking panic and collapse at any price. The problem for them is the expensive bank bailouts may well bring an even more destructive threat to Europe hyperinflation. Again, we know what happened in Germany.”
“The EU and the banking elites may well succeed in their efforts but the losers will ultimately be the sovereignty of individual nations and the wealth, freedom and prosperity of Europe. This problem will likely jump the Atlantic and an inefficient fascism like what took place in Italy combined with a nationalistic foreign policy like the German Reich does not bode well for the United States.”
Count on; European bank and stock exchange closures, private gold confiscation, limitations on ATM and bank account withdrawals and international wire transfers, that also will happen in the United States. The people of Europe and America will lose their wealth-security and preservation of purchasing power. Only precious metals and none exchange traded private equity opportunities will provide unique market opportunities.
Suggestion: Take action today and buy gold and silver, because this wil not end well for Europe or the United States.
Note: Many years later, Merkel, who has withdrawn from politics and become a recluse, is asked whether she thinks that she should have done anything differently during the EU crisis. Unfortunately, her answer comes too late to change the course of history.