That which was inevitable has now come. Like the decks of the Titanic, so are the economies of Europe now pitching as the behemoth which is the Eurozone founders…
The bond sales in Italy this week, and the vote for the ECB Bailout funding by Germany and France next week, are the last moves in the ‘dance of death’ we have all been witnessing. This is all but a dress rehearsal for the collapse of the US Economy, as well as the priming for our implosion event.
How do we get the American population to understand what an economic collapse on a scale never seen in history will mean?
The Greek Bond “haircut” has been accomplished, and now the CDS and collateral debris are beignning to settle. Italy and Portugal took some serious damage from the devaluation, but the EFSF stepped in to prevent an immedaite domino-effect failure of their banking sectors, but not enough “liquidity” was provided to totally alleviate the risk that these and other nations will follow suit on the path of “default and then negotiate”. In truth, there is no such thing as “enough” in this case, because the easier the EFSF/IMF/US make it to default and renegotiate, the longer the line will be. The questions regarding the survivability of Italy, Portugal, Spain, and even France are still to be answered -- and the answers will not be good…
But I can tell you that a war in the mid-east would certainly accelerate the unwinding of all the European financial issues…a commodity cost spike, such as a war will certainly bring, in conjunction with increased military and police costs to secure the national interests, may well tear right through the security blanket which the EFSF and US banks have duc-taped around the EU’s weaker nations.