We’re no longer in the realm of economic conspiracy theory and non-mainstream alternative news, as the head of one of the world’s largest financial institutions, with over 10,000 branches in 22 countries, joins other well known financial figures with dire warnings of what’s coming next:
If someone knows the truth, it is the guy at the top of UniCredit [Szalay-Berzeviczy], which we expect to promptly trade limit down once we hit print. Among the stunning allegations (stunning in that an actual banker dares to tell the truth) are the following:
“The euro is “practically dead” and Europe faces a financial earthquake from a Greek default”… “The euro is beyond rescue”… “The only remaining question is how many days the hopeless rearguard action of European governments and the European Central Bank can keep up Greece’s spirits.”….”A Greek default will trigger an immediate “magnitude 10” earthquake across Europe.“…”Holders of Greek government bonds will have to write off their entire investment, the southern European nation will stop paying salaries and pensions and automated teller machines in the country will empty “within minutes.”
In other words: welcome to the Apocalypse…
Mr. Szalay-Berzeviczy is no arm-chair quarterback. He sits atop one of the biggest banks in the world and is the former head of the Hungarian stock exchange, and he’s not beating around the bush. The Greeks will, without a doubt, default on their loans. In fact, this weekend we found out that they are incapable of meeting their deficit targets despite extreme austerity measures already taken. In the very near future, they will be incapable of making good on their payments, and once that happens, the seismic effects across the entire globe will be felt almost instantly. As was pointed out in the excellent investigative documentary Meltdown, we are economically, financially and politically intertwined, so don’t underestimate the problems in Europe – the coming defaults across the Atlantic will have significant impact on our domestic economy.
Also of note is the fall-out that occurs when a country defaults on its sovereign debt – a warning sign to all of those living in nations that are on the verge of collapse (including those of us here in the US). When a government defaults they will no longer be able to make payments to their employees – and that includes former employees depending on pensions, and those dependent on government subsistence programs like social security and welfare. All of it will be wiped out. That is the reality of the situation, and not just in Greece.
You can probably imagine the panic that ensues, including Great-Depression style runs on the banks and ATM machines being emptied. If this happens to a single country like Greece it is still manageable. But what about the whole of Eastern and Western Europe? Or the United States of America?
We will see these events come to pass. It is unstoppable at this point.