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Visualizing Contagion
Contagion may be last year's word (this year's we are fairly confident will be 'stagflation' but we must give the mainstream media 3-6 months to figure this out), but it is never too late to visualize just how tenuous and perilous the supernational credit linkages between the various countries, especially in Europe are. Below we present a very useful interactive chart by the WaPo demonstrating the exposure linkages not only through banking and loans, but, just as importantly, and often forgotten, through trade.
From WaPo's Neil Irwin:
Greece sneezed, and now most of Europe has a cold. The European debt crisis has already spread like a virus from Greece to Ireland, and other countries are now at risk: Portugal, Spain, and Italy are probable candidates for financial problems. Economists call this the “contagion effect.” How does this spread? Some of it has to do with confidence. When investors see one country encounter financial problems, they may doubt the health of other countries that seem to share economic or even political characteristics.
Contagion also has much to do with actual economic links among countries. Researchers have identified financial ties in particular as responsible for the “fast and furious” spread of crisis from one country to another. Trading activity between countries, however, can propagate economic sickness more slowly.
And full chart - click through for interactive goodness.
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This looks a graphic representation of a retrovirus.
Apt image.
Quite so, mikla.
+1
Nicely done, +1
I don't think retroviruses have lipid envelopes, but the EU has Greece, so it works just fine.
Other Definitions:
Protease = lap dancer.
Gag protein = SEC
Reverse transcriptase = TARP
Integrase = Goldman Sachs
Receptor binding proteins = politicians
Mayonnaise = what we'll all be eating when they get through killing the host
Mikla brings home the bacon. Sorry mikla and don bring home bacon.
Oh what a tangled web we weave...
There are about a hundred countries missing in that web.
And its missing the most important one - China.
If you would have said Belgium we could have been friends....
But, but, Belgium doesn't have a government.
Too soon, man. Too soon.
Buy the Dipz¡¡¡¡¡¡¡¡¡¡¡¡:)
As I mentioned in a post yesterday, now imagine what happens from this chart when one country defaults. And it makes one wonder what the side effects are in the derivatives market.
Think the financial equivalent of "The Andromeda Strain."
Worst remake ever!
Never saw the remake. But that's a pretty cool picture.
Excellent stuff .
So everyone's in a bit of debt, shocking.
Fractional reserve mechanics. Look at the creation of our first central bank. Congress gave them some amount of money. They copied it 10 times between the bank owners and started lending it out at interest. It's all fraud and counterfeit and stupidity.
It won't globalize because the fraud breaks down without a self/other boundry to feed into it. So I guess endgame is turning all these counterfeited debts into 10 copies of you owe me and will always owe me cause there is no "other" to save you. There is only zuul. All the IMF has is a mathematical puzzle trick and a willingness to be a huge fucking dick.
Hell, look at the creation of our first fiat currency.
Chapter 1 (pg 51)
http://mises.org/books/historyofmoney.pdf
That's not the first bank charter. That's congressional issued scrip and it worked. And this caused england to bring out it's interest alignment tools. They new that if this took root and grew in america it would suck ALL the talent to it. So they started repeatedly sticking them on the interest alignment machine to steer them towards thier empire.
http://www.coins.nd.edu/ColCurrency/CurrencyImages/MA/MA-12-10-1690-5s.o...
I think the contagion is deep and pervasive already. The stepwise manner each sovereign crises is being revealed and controlled is deliberate and stage crafted by the EU can make it appear more manageable than it really is.
They couldn't have dispatched Ireland's sovereignty so easily if Spain, Portugal and Greece had to be dealt with at the same time.
A bit limited I think, typical Washington Post.
What about Asia?
Huh?
Bwaaahahahahahaha!!
Were doomed.......doomed I say!
what we have now is stagflation and it is the very Worst of all the flations
I would appreciate some insight as to why Ireland is so incredibly exposed:
Loans to extended to UK from Ireland = 121% of Ireland GDP
Loans to extended to US from Ireland = 52.5% of Ireland GDP
Loans to extended to Italy from Ireland = 23.8% of Ireland GDP
If UK, US or Italy get a hiccup, there would not any ash left of Ireland. 121% of GDP? WTF?!Which banks/institutions are responsible for extending these loans? What is the rationale? Isn't there any oversight?
There is a lot you need to come up to speed on. Since no one else has bothered, I'll take a too brief stab. For starters, take a look at Iceland's recent history. It might shock you. One guy was working on a fishing boat one day, and was a international banker the next. I wish I were kidding.
As far as what banks made the loans, Germany has a huge exposure. That's why they recently raided Ireland and grabbed their retirement funds. All in the name of "saving Ireland".
The rationale was to make money. We've been in a Credit bubble, and that's deflating. Ireland had a convincing story (it was the "Celtic Tiger"), and people with excess cash bought it.
As far as "oversight" goes, you'd need to define the term. Does a blind man offer oversight? How about a crazy, deluded one?
I don't think you have exactly answered my question. My specific questions are around Ireland, not Iceland.
Ireland is incredibly exposed - loans originating in Ireland to UK, US and Italy are almost 200% of Ireland GDP. No other country even come close. It raises so many questions. Where do the money come from? Which company/institution gave out the loans? Is it a small group of companies/institutions, or a big bunch of people all gone mad?
A significant amount of this debt is washed through the IFSC building in Dublin , the irish state is not important in its transactions - that place is full of dark matter and is one of the centres for the shadow banking sector , also the majority of Irish "deposits" are external bank bonds which was and is used to farm naive people - Ireland is a colony.
Check out the amount of US Treasuries running through Ireland on a monthly basis - it will shock you.
Major Foreign Holders of U.S. Treasury Securities - US Department ...
- 2 visits - 05:
Thank you for the insight. Under that context there is even less legitimate reasons for the Irish government to have bailed out these banks under the control of foreign interests.
Wow. UK more than *tripled* holdings of US Treasuries from Nov 09 to Nov 10.
Yup that makes sense. Obviously.
Google is your best bet for the specific Banks. But you're looking at individual trees, and not the forest. Which won't lead you to understand what happened, and why.
The circle jerk chart is simpler.
banks->CONgreff->tehfed->banks
I think this is just a tactic to keep eyes from the US debt. Anytime a company even with a smeared reputation like Goldman Sach talks people follow their lead regardless of the evidence which wasn't really presented just stated. But markets are ulimately about beliefs and not reality at least in this day and age a rumor has more power than 10 acres of old growth forrest trees turned in paper and printed with accounting information.
Especially when the 10 acres of printed paper are just repetive lies that don't mean anything.
I was looking at the export chart and i figured that we exported most of our stuff to europe but it says no more then 1% of all us exported goods go to europe (britain included) and on the debt chart it looks like ireland and britain are all in on the usa with ireland leverageing up it's bets through britain?
so my main question is what do we export? and who buys it? or is the whole world loaning us money and betting on which ussa company is going to buy the most plastic garbage from china? and if ireland sinks will it take britain and by proxy the united states?