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This is Just a Warm Up For What’s Coming Our Way

Phoenix Capital Research's picture




 

 

Despite the
fact we were told repeatedly that the Greece situation was solved just 12
months ago, the country is once again at the forefront of the ongoing crisis in
the Euro-zone.

 

Having
already thrown billions at this problem last year, this time around European
officials are actually considering REAL solutions, i.e. Greece leaving the
Euro-zone. Of course, as soon as these rumors surfaced, several Greek officials
(who never seem to be named) quickly responded to say the rumors are unfounded.

 

At this
point it is clear that the Euro-zone will be restructured in the near future.
Whether or not it will change with Greece alone leaving the EU, or if we see
multiple players drop out, one thing is clear: the EU in its current form is
finished.

 

How we get
to this outcome remains to be seen. But the “Greece issue” serves as a perfect
illustration of the central issues plaguing the world financial system today.

 

Consider
that Greece’s entire GDP is less than $330 billion (about the same size as the
state of Massachusetts). The country also has a debt to GDP levels of over 100%
and deficit of around 12%.

 

In other
words, it’s clear, plain as day that the country is broke. So why does Greece
matter so much to the EU?

 

The answer
is quite simple: derivatives and the interconnectedness of the global banking
system.

 

It’s now
well documented that Greece should never have been allowed to join the EU. The
only way it met the fiscal requirements was by using off balance sheet
derivatives (crafted by Goldman Sachs and pals naturally) to hide the true
state of its financial health.

 

However,
once Greece entered the EU, its bonds quickly entered the toxic debt game of
“hot potato” amongst the EU banks. By the time the European crisis erupted last
year, German and French banks were on the hook for $65 billion and $82 billion
of Greece’s debt, respectively. 

 

Small wonder
then that these more fiscally sound countries pushed to bail Greece out.
Failure to do so would mean a banking crisis in either country.

 

So banks got
the EU into this mess in the first place (Wall Street helped hide Greece’s true
debt loads to get Greece into the EU) and now banks are making sure that
European taxpayers pony up the cash for this dishonesty (German and French
banks are leaning on politicians to not allow Greece to collapse).

 

And so here
we are, with austerity measures and higher taxes occurring in Europe because of
bankers’ greed and dishonesty. Having realized that their politicians aren’t going
to do the right thing, the people are now openly expressing their disgust at
the ballot box (Angela Merkel’s party is getting slammed in Germany for
supporting the bailouts) and the streets (protests are occurring across
Europe).

 

And it’s
just a taste of what’s coming to the US.

 

Indeed,
everything happening in Europe right now (civil unrest, political turmoil,
currency crisis) is coming to the US’s shores in the future. We are running
similar debt-to-GDP ratios, deficits and our banking system is similarly laden
with worthless derivative garbage.

 

Again, the
same upheaval happening in Europe will come to these shores. It’s only a matter
of time. Which is why the wise thing to do is prepare in advance of this. This
means getting some food, water, and bullion on hand. It also means considering
what one would do if the stock market came undone again.

 

Prepare now.
When the REAL Crisis hits, it will be too late.

 

On that note
if you’re not prepared to profit from the market’s correction, you NEED To
download my FREE report devoted to showing in painstaking detail how to make
SERIOUS money from a stock market collapse.

 

I call it The
Financial Crisis “Round Two” Survival Kit
.
And its 17 pages contain a
wealth of information about portfolio protection, which investments to own and
how to take out Catastrophe Insurance on the stock market (this “insurance”
paid out triple digit gains in the Autumn of 2008).

 

Again, this
is all 100% FREE. To pick up your copy today, go to http://www.gainspainscapital.com
and click on FREE REPORTS.

 

Good
Investing!

 

Graham
Summers

 

 

PS. We also
offer a FREE Special Report telling investors how to prepare for the ongoing
inflationary storm. I call it The
Inflationary Disaster
and it
details three investments that are all up sharply (and will continue to rise)
as inflation grips the markets.

 

All in all
its 14 pages contain a literal treasure trove of information on how to take
steps to prepare AND profit from what’s to come. And it’s all 100% FREE.

 

To pick up
your copy today, go to http://www.gainspainscapital.com
and click on FREE REPORTS.

 

 

 

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Fri, 06/03/2011 - 18:41 | 1337871 Everybodys All ...
Everybodys All American's picture

QE3 can't be invoked while the debt ceiling is where it's currently sitting. Please do not allow the assholes to raise the debt ceiling. Garauntee if the debt ceiling is raised QE (x) will commence and the dollar will further be destroyed by Bernanke and co.

Fri, 06/03/2011 - 19:11 | 1337952 Poofter Priest
Poofter Priest's picture

Uh...hmmmm... rasing the debt ceiling IS QE III.

Fri, 06/03/2011 - 18:11 | 1337770 Buck Johnson
Buck Johnson's picture

Big time, when SS and Medicare get cut along with the rest of the programs you will see craziness come about.

Fri, 06/03/2011 - 17:59 | 1337727 connda
connda's picture

Tyler,  How about getting these "bait and switch" spammers out of the "Contributors" section of this site and placing them in the advertising section where they belong.

Fri, 06/03/2011 - 19:32 | 1338015 andybev01
andybev01's picture

If more of us made 'dollar' contributions to the Tylers perhaps they could get by without the carnival barkers.

Upper-left corner, under your user info: 'Donate To Zero Hedge'.

Just sayin'.

Fri, 06/03/2011 - 17:50 | 1337690 in4mayshun
in4mayshun's picture

I disagree. Protests will not be coming to this country. Americans are waaay to ignorant and lazy for that. They will happily climb aboard the Fema camp trains as long as they're promised free food and a new Ipad

Fri, 06/03/2011 - 17:24 | 1337635 css1971
css1971's picture

My thoughts on the subject.

Cash and Sovereign (but not European) Bonds from now until TSWATHTF.

Cotton, Corn, Sugar, Silver, Gold, Oil  and... small caps (WTF?) ... after TSHTF & QEN is under way.

 

HTH

 

I am of course, an amateur and an anonymous contact on the Internets. So give that the weight it deserves.

Fri, 06/03/2011 - 15:44 | 1337261 Clowns on Acid
Clowns on Acid's picture

 “I am a long-standing small government, free-market economist for years and years back and I have never veered from that,” Greenspan tells CNBC.

The real culprits are now back stroking rapidly. "It is not MY fault !".

 

Fri, 06/03/2011 - 15:21 | 1337152 expectplannedevents
expectplannedevents's picture

"Upcoming" Greece Problems & Survival Kit

is not news..

write some substance..show you're a "research" company.

 

Fri, 06/03/2011 - 14:44 | 1336997 Pancho Villa
Pancho Villa's picture

To simply blame the banks is very simplistic. The real problem is that democratic governments just cannot handle money. Peasants are peasants because they cannot handle money. And when you put the peasants in charge of the government, guess what happens?

If someone decides to stroll alone and unarmed through the jungle in the middle of the night and gets eaten by a tiger, does it make sense to blame just the tiger?

Fri, 06/03/2011 - 13:22 | 1336622 aerojet
aerojet's picture

Those missives would carry a lot more weight if they didn't include the sales pitch at the end.

Fri, 06/03/2011 - 19:28 | 1338006 andybev01
andybev01's picture

+ $1.00

Fri, 06/03/2011 - 12:38 | 1336432 dondonsurvelo
dondonsurvelo's picture

The US protests have started and are going on right now.  They are flash mobs rioting and looting daily across the US.  These are young uemployed minority youths that have nothing to lose.  We think of it as gang activity but it is economicly driven.  They don't realize why they are doing it because most can't read or write.  As these flash mobs increase in size and occur more often, we may see a repeat of burning cities across America this summer.

Fri, 06/03/2011 - 15:27 | 1337190 ibjamming
ibjamming's picture

Watch out...we may have a burning mob instead...it depends WHERE they riot.  In their own slums...fine...in the "white burbs", and they'll be staring down the barrel of a '06

Fri, 06/03/2011 - 12:29 | 1336397 aerial view
aerial view's picture

When I suggested that protests against the U.S. govt bank bailouts were coming, my sister, brother-in-law and 3 kids looked at me like I was crazy. I guess people will do nothing until they are living on the streets or can't afford their cell phone anymore.

Fri, 06/03/2011 - 12:29 | 1336396 Michael66
Michael66's picture

Glen Beck said over a year ago that this would happen.

 

Everyone ridiculed him at the time.

Fri, 06/03/2011 - 17:40 | 1337676 Loose Caboose
Loose Caboose's picture

People ridicule Glenn Beck because he is Glenn Beck. 

Fri, 06/03/2011 - 12:55 | 1336506 fonestar
fonestar's picture

People ridicule Glenn Beck because he is Rupert Murdoch's little bitch-establishment stooge.  Because he snipes the occasional truism from the alternative press does not make him some genius.

Fri, 06/03/2011 - 15:24 | 1337175 Clowns on Acid
Clowns on Acid's picture

fonestar- Occasional truism? Beck, regardless if one enjoys his presentation, has been right on with PM's, the Islamic rise in formerly "moderate" ME coiuntries, the left wing radicalists Obama (see Van Jones et al) has involved in his Admin, etc.

6 months ago, was it not the despicable (even before he Twittered a small thing) Rep wqeiner that sued Beck for his supporting a company that sells physical PMs?

Seems that Beck was right again.

Please support your argument with something a little more high brow than an ad hominem attack. 

Fri, 06/03/2011 - 15:22 | 1337139 Votewithabullet
Votewithabullet's picture

"Glen beck said". Fucking A. I saw the retarded fuc say that the Japanese Quake "may have been avoided if they had had a better relationshit with GOD". He hasnt mentioned God with the events in Joplin and along the Bible belt. ...and God saw that the light was good. That shit is better than original george carlin.

Fri, 06/03/2011 - 12:52 | 1336489 fonestar
fonestar's picture

People ridicule Glenn Beck because he is Rupert Murdoch's little bitch-cum-establishment stooge.  Because he snipes the occasional truism from the alternative press does not make him some genius.

Fri, 06/03/2011 - 12:51 | 1336485 fonestar
fonestar's picture

People ridicule Glenn Beck because he is Rupert Murdoch's little bitch-cum-establishment stooge.  Because he snipes the occasional truism from the alternative press does not make him some genius.

Fri, 06/03/2011 - 12:46 | 1336481 fonestar
fonestar's picture

People ridicule Glenn Beck because he is Rupert Murdoch's little bitch-cum-establishment stooge.  Because he snipes the occasional truism from the alternative press does not make him some genious.

Fri, 06/03/2011 - 12:26 | 1336379 JailBank
JailBank's picture

Does this "survival kit" come with a Rambo knife and an AR-15?

Fri, 06/03/2011 - 12:15 | 1336358 WALLST8MY8BALL
WALLST8MY8BALL's picture

Civil unrest & political turmoil - 2 more jobs American's just wont do.....

Fri, 06/03/2011 - 12:54 | 1336499 Freddie Krugerrand
Freddie Krugerrand's picture

No true!  We blog about unrest and political turmoil all the time.  Some of us even send emails and text messages.  Boy, just wait until these problems hit our shores -- we'll show them!  I might even have to upgrade my computer!

Fri, 06/03/2011 - 12:04 | 1336298 Zedge Hero
Zedge Hero's picture

Here is a recap of this week and chaos amongst us inspired by Zero Hedge and their likes.

http://www.youtube.com/user/zedgehero

 

 

Fri, 06/03/2011 - 11:59 | 1336283 anony
anony's picture

/yeah, yeah, yeah, but a stopped clock, etc....

WHEN?? WHEN???  WHEN????

Tell us at at least 6 months, even 1Q, before it happens so that we can profit from it.

 

Fri, 06/03/2011 - 11:56 | 1336278 Racer
Racer's picture

Or is it? US teenagers (aged around 17) do not know where basic things like the food they eat, like butter, honey or cheese comes from! So imagine the education of the parents!

Fri, 06/03/2011 - 15:32 | 1337202 Clowns on Acid
Clowns on Acid's picture

Indeed Racer, this is the product of the left wing fascism. Schools, MSM, Universities, et al., all encouraging and indeed enforcing personally destructive mindsets for the young people.

One reaps what they sow, and will have to pay the Piper. Let's hope that the Piper includes the "organizers" especially. 

Fri, 06/03/2011 - 12:28 | 1336412 Ahmeexnal
Ahmeexnal's picture

Of course they do! It comes from WalMart!

Fri, 06/03/2011 - 11:22 | 1336102 BeerGoggles
BeerGoggles's picture

You're really pushing your newsletter at the moment aren't you? Had a lot of subscribers close their accounts for obvious reasons?

Fri, 06/03/2011 - 16:59 | 1337563 Paul Bogdanich
Paul Bogdanich's picture

Your constant refrain of revolution coming here is begining to sound a lot like John Reed back in the early twentieth century.  America doesn't work like that.  Too much open space and free ground so historically Americans just walk away.  Oklahoma to California whatever.  True the ability to do that is more restricted now but not extinguished.  It would be my guess that if the percipitating crisis is as bad as you prognosticate that the logical reaction would be to break up the union.  Three maybe four seperate countries.  It's the military expenses of the common empire that will cause the ruin in the first place so why not?  The political differences between the East, West & South are irreconcilable so why stay together and bear hardship to pay the bills of an empire that no longer exists?  Doesn't make any sense.  Southerners would gladly be liberated from East coast mores and laws and the West would gladly be liberated from the influence of the South and the imperial mindset of the East.  If the crisis is as bad as you say then the union disintegrates which wpud not necesarilly be a bad thing unless the imperialists started a large war to reinforce the need for one cohesive barbarous nation.    

Fri, 06/03/2011 - 18:04 | 1337731 ServingMyKing
ServingMyKing's picture

or maybe we will break into 50 states that are linked together with a very well defined and constrained federal government with specific enumerated powers.....that could work.

Fri, 06/03/2011 - 18:32 | 1337838 Founders Keeper
Founders Keeper's picture

Curious idea. Yes. I like it. It just might work. Constrained and enumerated powers written into a document agreed to by elected reps from all the states. Beautiful.

;)

 

Fri, 06/03/2011 - 19:24 | 1337997 RichardENixon
RichardENixon's picture

That kind of crazy talk is gonna get you on the no-fly list.

Fri, 06/03/2011 - 23:38 | 1338634 Founders Keeper
Founders Keeper's picture

That made me smile. Thanks RichardENixon.

Any socialist/progressive/marxist/liberals out there with designs to destroy what's left of our Constitution should include me on their Enemies List.

Just to be clear.

I repeat: I am the enemy of socialist/progressive/Marxist/liberals on US soil.

 

Fri, 06/03/2011 - 17:47 | 1337693 Stuck on Zero
Stuck on Zero's picture

There's always some group in Canada that wants to break up the union.  Free Quebec.  Oceania.  BC Free etc.  What holds it all together is the realization that the national debt is so huge that no state (province) can sustain it's share of the debt. 

Sat, 06/04/2011 - 14:02 | 1339484 Bindar Dundat
Bindar Dundat's picture

You mean FEDFERATION!

Do NOT follow this link or you will be banned from the site!