We continue to hound on the situation in the European Union, the Euro, Greece and the rest of the PIIGS because of a similar situation that existed prior to the Great Depression. The Great Depression, some argue, resulted not from the bubble and subsequent stock market crash leading up to 1929, but rather, the defaults that spread across Europe (and parts of South America). These defaults had a direct effect on the European banking system, which subsequently led to collapses of the major banks.
In March, we opined that Europe will go first and the endgame will be dollar collapse. We may very well see the first part of this play out in coming weeks and months.
One important indicator that Germany is not happy with the austerity measures they are being forced to participate in is that German Chancellor Angela Merkel announced new rules banning naked short selling of stocks on German exchanges. This rule was made effective in the last 24 hours, and is designed to make it difficult, if not impossible, for naked short sellers to make money in the event German companies, namely banks, start to crash.
All this talk we have heard about “bailing out Greece” is just smoke and mirrors. The European Central Bank and Western governments know full well that if they do not “bail out Greece” that those banks which bought Greek Bonds, swaps and other financial instruments will detonate much like they did in the last Great Depression. This is not a bailout of Greece, as it will do nothing but saddle the Greeks with even more debt. The goal here has been to give money to Greece which it can then use to pay off the billions they owe to their financiers, in this case, German and French banks.
But the German people don’t want anything to do with it. And, it seems, that the politicians in Germany may be caving to their demands. The reported $1 Trillion bailout package prepared for Europe the day after the fat-finger heard round the world includes significant contributions from Germany, but the German people have not yet approved their portion of this.
Zero Hedge is reporting that the short selling rules applied yesterday are a preemptive move to help prevent complete collapse of the German banking system once the Germans pull the plug on any talk of bailout.
Zero Hedge has long claimed that Greece will be forced to default, with the only question being how this will be structured by Europe in a way to not allow the evil speculators to make buck on this process. Today, Greece shot itslef in the foot a little after announcing its latest debt number, which makes any expectations of climbing out of its Keynesian hole even more laughable. As Market News reports, “Greece’s general government debt rose to E310.3 billion in 1Q from E298.5 billion at the end of last year, according to data released Wednesday by the General Logistics Office of the Finance Ministry.” That austerity sure is doing miracles already. But it doesn’t matter: it appears that Germany has already made its mind to let Greece drown. As Neil Hume at Alphaville reports, “Big IB to clients: “they have it all planned: they are going to sink the ship (greece). Merkel is now drafting law for orderly insolvencies, but they don’t want anyone to make money out of it, hence the ban.“” If this is true, it ‘s curtains for Europe. Shorting the Euro at this point is like shorting Lehman: you may see savage short covering squeezes but the end result is well known.
Notice that Greece is now reporting debt at over 300 Billion Euro. When all of this started earlier this year, the public was told that they were on the hook for maybe 25 billion. So it’s ten times bigger now, officially. Unofficially, we can only imagine.
While nothing is set in stone just yet, signs are pointing to the possibility that Germany is ready to put an end to this circus and let Greece take it on the chin, as it should. After Greece falls, expect to see similar defaults across the PIIGS in Europe as well as eastern European countries.
For the time being, money will likely flow into what many deem to be the safest asset in the world currently – the US dollar, which means treasury bond yields may continue going down for the near future.
But make no mistake, Greece and Europe are nothing compared to what’s in store for the United States. We, too, will begin to see our own debt crisis in 2010, with California being just a small glimpse. There are over 30 states that are running serious budget deficits and the Federal government, in order to further kick the can down the road, will likely print trillions upon trillions of dollars to bail them out.
It’s only a matter of time that investors in the United States and the world over realize that US debt is the world’s ultimate bubble. And when this happens, the party’s over.
Comments….. What is going on the eurozone will happen over here. When the 787 billion dollar stimulus package is all dried up by the beginning of 2011,states will make even tougher austerity cuts. We got cities on the verge of bankruptcy. The next five years are going to be pure hell for cities and states. When California defaults it will send a chain reaction of states collapsing. California bonds are worse then Indonesia and Kazakhstan. It is funny California is more likely to default then Iceland and Iraq!
Congratulations to the courageous Germans!  Thank you for standing up to Brussels, London, and Washington D.C.ÂÂ
Finally someone else besides the Iranians,  the North Koreans, and Al Qaeda are standing up to the New World Order that is supported by Barack Obama, The Fed, and the IMF.
If California falls on it’s ass, too bad. When the looters hit the streets of L.A. I hope they hit the ‘stars’ homes in Hollywood first. After all, these ‘stars’ provided Obama with cash and lip support.  If they get burned out of house and home it could not happen to a better bunch of traitors.       ÂÂ
MA & PR , Agreed on both of your posts , However the riots won’t be limited to California it will spread across the USA . Those who will burn themselves out of house and home will go elsewhere and so they will go to states like Arizona , Nevada , Colorado , New Mexico and Texas . And the trouble will start in those states as well . It will be a domino effect .
Airborne71  ….you can see  why  gun sales and ammo sales are  way up these last 2 years…..it’s coming to a neighborhood near us all.
Great article Mac! Thanks for your attentiveness.
Comments…. the southwest is going to be the sight of a bloody conflict when we collapse and breakup into tribal warlord states.The call for the “reconquista” of America’s great Southwest will continue to escalate. And when these states default the aztlan groups will swell in number and strength. America is going to breakup into warlord states like Somalia.
Mardochee,
You are correct.   ÂÂ
I can see conflict in Texas will be drawn up along property lines, culture, race, religion, wealth. ÂÂ
I can just about tell you which race will be at the top of the mortality statistics………….. and it won’t be the brown or white skinned. ÂÂ
The people with the strongest family ties, anchored in faith, and are prepared will have the best chance of survival. ÂÂ
“For the time being, money will likely flow into what many deem to be the safest asset in the world currently – the US dollar, which means treasury bond yields may continue going down for the near future.”
Do you think this false security will this create a drop in gold prices? ÂÂ
I hope the Aliens turn up on December 21st, 2012.
Maybe they can sort all this s**t out.  Who else can we trust?? Nobody down here, that’s for sure!
Yes, this is just the beginning……..when they all fall, it will be a chain reaction all over the word, ending in our back yard.
AmericanSurvival101.com.
missouri boy , Yes gun sales are up…on BOTH sides , the honest citizen just wanting to protect his or her family and those who want what others have and will take it any way they can . MA & PR agreed again . Lela : Yes I think so , Gold will take a nose dive for a while , A very good article was posted in World net daily yesterday about how gold is being Manipulated by money brokers and finance ministers across the globe. Gold has dropped almost $60. in the last few days . Dr Simon : you hit the nail right on the head sir !
go to a mad max forum to discuss end of the world fiction
“End of the world fiction”…LOL. How do you think this will end? Is there a happy ending to all this? Will we all muddle through? Somehow “get by”. You made a delusional post, sir. Wake up.
For the Greek problem, it’s a matter of when and not if it happens.
Imagine an enormous hole which absorbs everything been thrown inside.
Greek governments have stolen from the public, most of the 310 billion. Most of that stolen money end up in government pockets and/or in bribes.
There is no way to achieve a bailout because people are angry and will not stand it.
But it’s not only Greece. Romanians, Spaniards, Portuguese are about to revolt against the measures taken. Kyrgystan and Tayland people are also moving against their governments, which means that globally, people start to realise that the current system has collapsed.
Maybe this can be the opportunity of a fair treatment of human beings.
There is the other scenario of course. Some clever and sneaky guy gets the opportunity to gain power based on poverty and racism. A new Hitler maybe? I hope not.
scab –  . look at the sheeple now . what are they doing?  NOTHING! they are doing what there told, eating the bs fed to them, sucking the govt tit, they will continue this, and become more reliant on govt,that is the plan, i reluctantly  would like to see some mad max happen b/c i’m pissed.check out the book by FERFAL – how it played out in argentina, higher crime , higher taxes, decrease in living standard, overall crappy, all the meanwhile everyday life continues , because it has to. people will produce because there are people who will consume. there are vast resources in the country, they will always have value, they will be utilized.life goes on , iagree for the worse.  i live in a great neighborhood , not one foreclosure , no crime. guess who installed security window film, guess who has security lighting 360 aroun there house, extra guns for family and freinds.REALITY,YES, MAD MAX FUTURE, NO
SCAB- are you there? maybe you need to wake up .. from sleeping in moms basement
Global Citizen et al:
The ALIENS are already here – and have been for a VERY long time! Earth is just a huge CULTivated PLANTATION and humanity is the CROP. The “harvest” has been going on continuously through wars and violence which occur on a regular basis since the dawn of man – and the arrival of the ALIEN RACE.
The “mother of all world’s financial crises”, now in progress, has been ENGINEERED by agents of the ALIEN RACE (Zionists like Greenspan, Bernanke, Geithner, Goldman Sachs, etc. and their masters in Israel). A better name for Israel is “New Khazaria”.
The ENDGAME is near (2012). The GRAND DEPRESSION is already in progress and will culminate in “Financial Armageddon”.
Visit my Blog and website and ALL the important pieces of “The Puzzle” (of human existence) will fall into place! No kidding.
great advertisement godsend, dont forget the hate speach for the mayans, they started “the 2012 apocalypse theory” why dont you just stick to your website
In future US civil conflicts,your skin color will be your uniform
jaream:
I’m not selling anything – I’m giving it (Truth) away for FREE 🙂 Take it – or leave it!
dave – i hope were not headed there . i compliment you on that simple yet powerful statement if it is original
The Financial Armageddon on a global scale is headed our way ….. FAST!!! The politicans and the banksters can attempt to rationalize and justify their actions leading up to this coming ‘hell-on-earth’ situation that we are facing, but everyone knows who is responsible. 1% of the people control 90% of the wealth in this world. Enough said!
MadMarkie:
There is some hidden truth in what you say – but remember that “The Puzzle” is bigger than the accumulation of worldly wealth by a small group of people. Why would those people want to DESTROY the system which makes THEM wealthy and powerful?
There is A LOT more at stake here than mere money!
Think of Earth as a giant GULAG – like GAZA, only much bigger. Think of GOVERNMENT as the GUARDS. Think of the MILITARY as the means by which the harvest (human blood and guts and human Negative Spiritual Energy) is extracted from the CROP. Why do THEY wear UNIforms? Who else wears UNIforms? (doctors, police, firemen, university “professors”, some clergy – like the Pope and his Cardinals, etc.). UNIforms are intended to short-circuit our thinking about what is really behind those UNIforms.
It’s all about THOUGHT CONTROL (thoughts control actions)!
Who controls the MEDIA – the ULTIMATE thought control mechanism – and what do THEY want us to think? Or do THEY really want us to think???
Etc., Etc., Etc.
Caveat emptor!
“Oh, say – can you SEE?”
Can you SEE the possessed PIIGS stampeding into an ocean of DEBT – to DROWN!? What (or rather WHO) is possessing them?
Godsend,
Your question is right to the point.
Maybe it has to do with just power. The power to create, to increase, to decrease, to kill, to give rewards, or just destroy.
The plan as you comment is much bigger, and beyond our sphere of understanding.
My biggest worry is, in what a world my daughter is going to live. At least we had some good times; what will be her chances?
May God be with us all.
manos:
While all seems Doom & Gloom right now, it’s important and comforting to remember that the EVIL PLAN unfolding now is only a sub-plot of a much greater and promising PLAN, created by our Creator! This GREATER PLAN can be understood by humanity!
Study my website and you will discover God’s GREATER PLAN for humanity – it can include you and your daughter! 🙂
Remember: “For God so loved the world…” and
“Your tears of sorrow will be turned into tears of joy”
In the end, God’s Love will conquer all! Be of good cheer! 🙂
The German people are right. It is not their responsibility to bail out anyone. The responsibility for Greece lies with Greece, no one else. If the EU falls, that will be the best news anyone has heard in a long time.
You’re right, Robert – sort of.
If you dig a little deeper, you will discover that Greeks, Spaniards, Portuguese, Irish, Latvians, Icelanders, Romanians, Germans – and Americans have been PREYED UPON. It’s also called ENTRAPMENT.
Humanity has been intentionally DE-MORALIZED and greed has been nurtured and facilitated by a certain group of people with a PLAN. This does not take away personal (or national) responsibility and accountability (bearing the consequences) BUT those sinister forces at work and hidden for decades bear a HUGE burden of GUILT and ACCOUNTABILITY!
The underlying problems will not be eliminated until those sinister forces are EXPOSED and ELIMINATED – or they will just morph into new problems.
The EU WILL fail and countries will (be forced to) refocus attention on their own people. Austerity will come, one way or another. Nobody is exempt.
Would you religious zealots cease with the “Jesus will protect us” mantra?
Knowing human nature hasn’t changed the last two millenia,Mary(mother of Jesus) most likely had an affair with a hunky Roman soldier,Joseph weas gullible enough to believe her ridiculous story and the rest is history that fools a billion people and makes $ billions as well.
The only thing that will protect us is our wits,guns and foresight.
Stop believing in fairy tales.
Its all over: The greatest Gold trader ever, Jim Sinclair, has laid out the plan and the remedy in his latest book: A Pocketbook of Gold. Read!!!
Well reported, and right on the mark.  The Titanic has already hit the iceberg. Anyone with sense should be scrambling for their life jackets. And like the Titanic, most won’t survive the event.
For GodSend:
Christian belief is a religion devised by wolves for sheep to believe in.
Robert,
You may be right. But in any case, we the people have the right to believe in something. The era we are about to enter is dark and you know it.
It may be not a God, or Alach, or Buda, or whatever. It could be our own mentality and inner strength.
Above all, as i see in this site, is our will to survive and not go quietly into the night.
I suggest you watch the “book of Eli” with Denzel Washington.
Manos
Beautifully said! You couldn’t be more accurate if you had a crystal ball.
Get ready for Soylent Green! As permanent darkness descends upon the cities in America, the weak and the old will be harvested to feed those who remain alive.