Expect an imminent end of the EuroZone and a grand shock wave to emanate from the European continent as debts default and banks topple, taking down the economy. The consensus is growing. The Euro currency is a dead man walking, nevermind its occasional dance step. The Euro is beyond rescue. The sovereign debts are growing more toxic, not less. Recall the Greek Govt short-term bond hit 10% on yield. The bond markets are more reluctant to fund new and rollover debt. The main issue in debate is how long the hopeless rearguard action of European governments and the European Central Bank can the system going. It is running on fumes. A Greek default will trigger an immediate magnitude 10 earthquake across Europe and its banking structures, leading to the failure of several financial firms. The worst pain will come to those firms with big exposure to Greek Govt bonds, who will be forced to write off their entire investment.
Some Southern European nations will have to halt paying salaries and pensions. Many automated teller machines (ATM) in the country will be drained within minutes during a cash crunch. At the flash point all Greek teachers, doctors, police, army, ministry, and local government employees will not receive a salary. The shock waves will reverberate and outrage will hit the streets. The protests and disorder will coincide with a string of bank failures, which in my view will go out of control quickly, and spread to London and New York. The entire supply chain will be put at risk, built on credit. The Western financial system went insolvent in late 2008. Sometime in 2012, expect the final impact to be felt in the form of debt defaults, bank runs, bank failures, and supply chain disruption. The politicians seem helpless. The bankers seem frozen. See the Zero Hedge article (CLICK HERE).
I have one more update to post which includes the behind the scene news not made public as yet. Stay tuned...
Some Southern European nations will have to halt paying salaries and pensions. Many automated teller machines (ATM) in the country will be drained within minutes during a cash crunch. At the flash point all Greek teachers, doctors, police, army, ministry, and local government employees will not receive a salary. The shock waves will reverberate and outrage will hit the streets. The protests and disorder will coincide with a string of bank failures, which in my view will go out of control quickly, and spread to London and New York. The entire supply chain will be put at risk, built on credit. The Western financial system went insolvent in late 2008. Sometime in 2012, expect the final impact to be felt in the form of debt defaults, bank runs, bank failures, and supply chain disruption. The politicians seem helpless. The bankers seem frozen. See the Zero Hedge article (CLICK HERE).
I have one more update to post which includes the behind the scene news not made public as yet. Stay tuned...