The World is Bankrupt Now
real world banking system, the Rothschild bankers, the Federal Reserve and IMF
know that the world is broke but pretend that it is not in order to hold together
a little longer to make as much money as possible until it fails. I really do not mean money but power, buy
buying up commodities like water, electric systems, gas and food. They did the
same thing in 1982 when all the socialist nations in
The 1982 Latin American Bankruptcy
In 1982, when
the Latin American debt crisis effectively blew up the American banking sector,
it was about the worst possible banking
crisis in modern
It was so bad
because everyone down from
And so we had to come up with these stories that “Well, there are some Latin American problems, but they’re all good debt, not bad debt,” and we had to lengthen the clean-up process; it was a very difficult period for US central bankers and bank regulators in general… So by keeping this myth going, that everything is fine… we had to do that for a very long time… the whole process took about 13 years...
The 2010 European Bankruptcy
As was the case with the U.S. banks back then (and now, but that’s another story), the simple, undeniable fact is that any number of eurozone countries – as well as many of the world’s largest developed nations – are bankrupt. As in, technically unable to pay back their debts – at least in currency units with the same purchasing value as they hold today.
chart, from European Commission data, gives a sense of the problems now
But that doesn’t give anywhere near the complete picture, because when you add in the unfunded obligations of these countries, the actual liabilities as a percentage of GDP soar.
As it is at hand, I’ll use the situation in the
Given their even more socialized economies, the aging European countries are in even worse shape.
And it’s not
just the governments, but the large banks with hundreds of billions of exposure
to the unpayable debt of the governments, and to that
of the indebted public. That any number of
When you add up their total debts – including the
governments and the private sector – as the McKinsey Global Institute did, debt
across Europe is now running at all-time record levels… and it’s not just the
small countries in trouble, with
The long and short of it is that the only real strategy left to the European governments is to lie, and lie convincingly, that all is well and that all can be managed.
The scale of the problems, however, means that they will have to keep at the deceit for years… maybe even another decade or more, all the time hoping their economies recover to the point where tax revenues and/or inflation can reduce their debt loads to manageable levels.
Unfortunately, with the speed that information travels at these days, keeping their lies undiscovered is a false hope. And the consequences of being exposed for the deadbeats and frauds they are will be both sharp and devastating, as the bond markets demand higher and higher interest rates in order to finance and roll over the unpayable debt.
The good news
But today we
are focusing only on the eurozone; tomorrow our
attention will likely be back on the
So what should one make of the whole thing?
Nigel Farage, a member of the European Parliament, reveals the institution for the sham it is.
He essentially accusesng the European Council of being a bunch of liars and damning them as the statist scoundrels they are. In other words, whereas these meetings usually proceed based on dull protocols and institutionalized civilities, Mr. Farage delivers a stinging rebuke.
To recap, what is required to keep the eurozone together at this point are:
· Big lies, delivered convincingly.
· A gullible bond market.
· Time. Lots and lots of time.
· An economic recovery.
Considering that the debt problems are not isolated but widespread in almost all of the world’s major economies, the nearly daily revelations about that debt and the knock-on gyrations that show up in CDS and bond markets should not be viewed as inconsequential or short-term in nature.
Rather, they are correctly viewed as a popping of the rivets on the hull of the SS Eurozone. The pressure is growing stronger by the day and, before this is over, the eurozone will break apart and sink.
That I am convinced that this is so comes from my firmly held belief – based on the data – that there is no way for the debt to be resolved with good money. Thus all that is left is the deceit that it can be. With that as official policy, the scam cannot continue for long.
Today it is the eurozone,
but tomorrow attention will switch back to the poor financial shape of the
Anyone that tells you it is, is lying.