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Euro Crisis and The Coming NWO

EconMatters's picture




 

By EconMatters

Citing "Central banks are being cornered into prolonging monetary stimulus as governments drag their feet and adjustment is delayed", the BIS (Bank for International Settlements) on Sunday, June 24 endorsed the proposals of forming a single banking union for the Euro Zone to "buy time" in the short term. 

 

After the election of a pro-bailout government in Greece, the markets now have shifted focus towards the two-day European Union (EU) summit later this week on June 28/29.  At a meeting in Rome, leaders from Germany, Spain, France and Italy agreed to press for a €130 billion ($163 billion) plan at the summit.

 

As we previously predicted, the $125-billion 'Spailout' did not give markets much comfort.  Despite the massive bank bailout, rating agencies are still busy downgrading major global banks.  Spain government 10-year bond yield shot up above 7.3%, and Euro-era high, before dropping to 6.4% last Friday on the hopes that European policymakers are moving towards a resolution for the euro sovereign debt crisis.    

Italy's borrowing cost also officially crossed the 6% mark, before settling at around 5.8% on Friday.  Typically, economists see anything over 6% as unsustainable in the long term.  So now Italy has become a serious euro bailout contender.  Italy does not have as bad  the spending deficit problem as Greece, and its banks are in a better shape than Spain's.  But the country could have problem serving its €2 trillion of debt (about 109% of GDP) as it has to borrow €35 billion a month.  The bottom line remains that there simply isn't enough money under current bail-out arrangements to rescue Italy when the time comes. 


Graphic Source: BBC

 

The ECB has lent more than 1 trillion euros ($1.26 trillion) at its benchmark rate, and said this month it will continue to provide liquidity to solvent banks, while the U.S. Federal Reserve expanded its Operation Twist program through 2012 to swap $267 billion in short-term securities with longer-term debt. Overall, according to the BIS, central bank assets are at $18 trillion, about 30% of global GDP, double the ratio a decade ago, 

Most central banks around the world have kept its benchmark lending rate at a record low since the 2008 financial crisis, which is an 
unprecedented long period of time.  Although the official version is to shore up economic growth, the reality is that these extraordinary monetary easing measures are mainly in place to subsidize banks since the majority of banks around the world are technically insolvent due to years of over-leveraging and reckless risk management.  


Similarly, almost every country in the world is some form of insolvency from decades of deficit spending and debt financing/printing.  Despite all the Euro Bond, Euro Banking Union, bailouts, and Operation Twist in the world, they will not change the inescapable conclusion: Deficit Spending does not work.  

Countries are no different from individuals.   Ultimately, each country has to spend no more than it's taking in as income.  Staying on its current course, the world eventually could be divided into three camps:  bankruptcy (aka bailout), credit counseling (aka government austerity and household deleveraging), and debt renegotiation (aka "haircut").  PIIGS are only the beginning.   

 

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Mon, 06/25/2012 - 11:58 | 2558196 Stormy Weather
Stormy Weather's picture

But but Foxnews say it's sustainable, all we need is stimuli

Mon, 06/25/2012 - 11:52 | 2558166 engineertheeconomy
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In the future there will be 2 classes of people.

 There will be those with Gold and those without it.

Those without Gold will live out their lives locked up in chicken coops as slaves.

Those with Gold will have their freedom outside the chicken coop, profiting from the "chickens" labor, and living like "Gods" in their megamansions.

We're almost there.

BUY GOLD

Mon, 06/25/2012 - 10:42 | 2557806 nah
nah's picture

oils going to seventy bucks

Mon, 06/25/2012 - 11:19 | 2557998 otto skorzeny
otto skorzeny's picture

then back to $100 w/ QE3 :)

Mon, 06/25/2012 - 10:30 | 2557742 stiler
stiler's picture

Man does not know on which level to put himself. He is obviously lost and has fallen from his true place without being able to find it again. He looks everywhere restlessly and unsuccessfully in impenetrable darkness.

Pascal, Pensees

Mon, 06/25/2012 - 10:19 | 2557675 stiler
stiler's picture

yes, we're beyond good & evil. Fact is, we like to think ourselves better. Economists like to think their specialized knowledge is a science, but look at where we are.

Not too long ago, knowledge was seen to be arranged like a wheel (like Ezekiel's wheel full of eyes) with the queen of knowledge at the hub; theology. Each discipline was arranged along the rim of the wheel so that there were sciences on one side opposed by arts on the other, all of them connected by spokes through the knowledge of God in the middle. 

It's all been lost. Reminds me of a quote by Pascal. Something about man being lost in inpenetrable darkness. He has no hope. NONE. Except through the Redemption that is by faith in Christ's Blood shed on the cross. 

Mon, 06/25/2012 - 10:55 | 2557875 mendolover
mendolover's picture

Professing themselves to be wise, they became fools and changed the glory of the incorruptible God into an image made like corruptible man… Romans 1:22. 

If you want to start an arguement, start quoting Romans.

Mon, 06/25/2012 - 09:55 | 2557564 printmoremoney
printmoremoney's picture

Surely someone nice and honest will rise to the top and control the BIS and Central Banks. They will do the right thing and promote transparency and prosperity for all people across the world. Otherwise, we are all fools for letting Satanists control our lives because they say "debt" is legal. And we will get what we deserve. SLAVERY dancing with your Master.

Mon, 06/25/2012 - 09:38 | 2557501 forrestdweller
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When we hear the ancient bells growling on a Sunday morning we ask ourselves: Is it really possible! This, for a jew, crucified two thousand years ago, who said he was God's son? The proof of such a claim is lacking. Certainly the Christian religion is an antiquity projected into our times from remote prehistory; and the fact that the claim is believed - whereas one is otherwise so strict in examining pretensions - is perhaps the most ancient piece of this heritage. A god who begets children with a mortal woman; a sage who bids men work no more, have no more courts, but look for the signs of the impending end of the world; a justice that accepts the innocent as a vicarious sacrifice; someone who orders his disciples to drink his blood; prayers for miraculous interventions; sins perpetrated against a god, atoned for by a god; fear of a beyond to which death is the portal; the form of the cross as a symbol in a time that no longer knows the function and ignominy of the cross -- how ghoulishly all this touches us, as if from the tomb of a primeval past! Can one believe that such things are still believed?

from Nietzsche's Human, all too Human, s.405

Mon, 06/25/2012 - 11:21 | 2558020 otto skorzeny
otto skorzeny's picture

Old St. Pete will be filing this away for when you get to the Pearly Gates

Mon, 06/25/2012 - 09:30 | 2557472 f16hoser
f16hoser's picture

Iceland got it right. Let's follow their lead...... Arrest the Banksters. Then, and only then, will corrupt politicians be set free!

 

Mon, 06/25/2012 - 09:19 | 2557446 silverdragon
silverdragon's picture

TPTB are just scaring the masses so they have no choice but to agree to a united Europe, politically, economically and monetarily.

Mon, 06/25/2012 - 09:52 | 2557548 covert
covert's picture

the nwo isn't really new and it's already here and sinking in.

http://covert.ias3.com/expose/

Mon, 06/25/2012 - 09:26 | 2557464 lakecity55
lakecity55's picture

There was an interview on the Keene Surveillance today, where they interviewed a guy from the BIS.

He danced around it, but I caught he was implying there should be 1 central bank for the whole eurozone along with some kind of mass surrender of national sovereignty.

Mon, 06/25/2012 - 09:32 | 2557401 hivekiller
hivekiller's picture

Problem, reaction, solution. The economic implosion from too much debt was done deliberately but like some cheap novel, has to be rolled out one chapter at a time with a cliffhanger at the end of each chapter. Will Spain implode? Will Italy? What oh what will we do? (Insert riots paid for by the bankers, a catchy slogan, maybe a nice song to go with it.) Oh I have it. An economic union where the central bankers (ie the inner party) runs everything. Oh thank god for the inner party.

Mon, 06/25/2012 - 08:53 | 2557383 rsnoble
rsnoble's picture

Spending within ones means = death of USA.

This isn't going to be good for anyone.

Mon, 06/25/2012 - 08:48 | 2557376 stiler
stiler's picture

I see no evidence that the human brain has gotten larger. No one has seen it, they only think they have; no one was there in the beginning, so everyone takes by it faith as to whether creation or evolution.

Selfishness is increasing exponentially. The bankers have more power than most to have the greatest effect on the greatest number of people, short of a war. The Devil has had more time than ever now to perfect his plan to destroy man, particularly Israel, and supplant God.

Mon, 06/25/2012 - 09:01 | 2557392 MassDecep
MassDecep's picture

Rev 6:8 KJV - And I looked, and behold a pale horse: and his name that sat on him was Death, and Hell followed with him. And power was given unto them over the fourth part of the earth, to kill with sword, and with hunger, and with death, and with the beasts of the earth.

Rev 13:17 KJV - And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.
Rev 13:18 KJV - Here is wisdom. Let him that hath understanding count the number of the beast: for it is the number of a man; and his number [is] Six hundred threescore [and] six.

Mon, 06/25/2012 - 09:12 | 2557421 stiler
stiler's picture

It could be a long time til these things happen, but they will happen.

You know, scientists have gone back and forth about the Big Bang and now it's a joke on TV, but actually God does have a Big Bang. When Daniel interpreted Nebuchadnezzar's dream of the giant statue as representing the major kingdom's of the earth, he said the most insignifigant, tiny stone was thown at the statue and it exploded into bits. That tiny stone became a mountain. (mountain=throne or kingdom) The stone becomes the Millenial Kingdom of Messiah Jesus. So the Devil? he looses.

Mon, 06/25/2012 - 10:15 | 2557658 MassDecep
MassDecep's picture

It will be sooner than you think......

 

Mon, 06/25/2012 - 08:32 | 2557335 StavropolJames
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"almost every country in the world is some form of insolvency from decades of deficit spending and debt financing/printing."

Anyone care to have a look at Russia?  Just 10% debt to GDP and a half trillion dollars floating around in their reserves.  I guess that's why you said, "almost very country in the world."

 


Mon, 06/25/2012 - 11:01 | 2557895 mendolover
mendolover's picture

And don't forget they probably have WAY more gold than they are admitting to.

Mon, 06/25/2012 - 10:42 | 2557808 Uchtdorf
Uchtdorf's picture

Have you done the audit of the Russian books? No? Then why are you so sure you can trust those numbers?

Mon, 06/25/2012 - 13:35 | 2558664 StavropolJames
StavropolJames's picture

Can you point to any source that disputes Russia's International Reserves or Government Debt to GDP ratio?  I can't. 

In a world where analysts make their mark by exposing governments that fudge the books, I find it interesting that nobody has jumped up to cast doubt on Russia's stated financial position.  Sure, you can find warnings about their dependence on oil prices and what that might do to their budget in the future, but the current position is not in dispute.

There's nothing like a half a trillion in the bank and very little debt to give a country options.  Options that America, Europe, Japan ... don't have.

Mon, 06/25/2012 - 11:24 | 2558039 otto skorzeny
otto skorzeny's picture

fortunately for the Russians- they missed out on 90 years of capitalism that didn't get a chance to rape their natural resources- so they have a sh!tload still left

Mon, 06/25/2012 - 08:25 | 2557325 forrestdweller
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part of the problem is that humans, although they have evolved on their brains size (not on speed or on their claws), they are still animals. the animal brain still regulates te basics of our behaviour and our rational control over our behaviour is very limited.

this means that things like greed and agression and fear will always exist and partly direct our behaviour. so, there will always be wars and greedy bankers and injust societies.

there is no solution to this problem. we are nog able to create a society where things like this crisis won't happen, and where people won't grab all the millions when they are able to do so. it is a pointless discussion talking about world orders etc. it will never be more than some structure and order in a large chaos. we will always have our animal brain.

Mon, 06/25/2012 - 08:02 | 2557286 KidHorn
KidHorn's picture

Germany has final say and the longer they wait, the more they can demand. I suspect Germany wants complete control over europe and can afford to wait until the periphery is willing to do anything for a bailout. What they were unable to do militarily, they'll do economically.

Mon, 06/25/2012 - 10:18 | 2557666 Stuck on Zero
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Keep in mind that no-one is bailing out countries.  The bailouts are for the banks.

 

Mon, 06/25/2012 - 10:37 | 2557776 All Risk No Reward
All Risk No Reward's picture

Exactly.  No nations are TBTF&J, just Big Finance Capital front corporations.  This is asymmetrical Art of War warfare and the aggressors haven't even identified themselves and the prey have no idea an all out war is now in progress and will lead to their ruin and further system enslavement.  This is Big Finance Capital against everyone else.

"It's a big club, and you ain't in it!" ~George Carlin

http://www.youtube.com/watch?v=QT0OJEFlq7A

Mon, 06/25/2012 - 09:41 | 2557509 markar
markar's picture

Wrong. The longer this drags on the more expensive it gets for them and they know it. They are position to force the break up--either they leave or the PIIGS leave.

Mon, 06/25/2012 - 07:43 | 2557249 shovelhead
shovelhead's picture

Cheap money isn't cheap, M kay?

Mon, 06/25/2012 - 07:31 | 2557233 eddiebe
eddiebe's picture

Ok., how about this: One planet under God with liberty and justice for all.

You all think that could work?

Mon, 06/25/2012 - 07:29 | 2557228 eddiebe
eddiebe's picture

So what is the new world order?

Mon, 06/25/2012 - 08:40 | 2557355 Zgangsta
Zgangsta's picture

It was a group of men that almost put the World Wrestling Federation out of business, before they got too full of themselves and imploded.

I suspect that Hulk Hogan will be a part of things this time around as well.

Mon, 06/25/2012 - 07:33 | 2557225 ghenny
ghenny's picture

No!!  Human nature is the problem!!!  People quite naturally compete until they feel strong enough to eliminate competition or too weak to compete.  The former buy political protection from market forces using monopoly power and the bribery of political and regulatory institutions.  The latter try to vote in socialists who will intefere in markets.  Either way crony capitalism or crony socialism ultimately prevail.  No one has figured out what to do about this. The regulators are always going to be corrupted by the regulated.

Mon, 06/25/2012 - 07:26 | 2557223 mvsjcl
mvsjcl's picture

One Bank to rule them all...

Mon, 06/25/2012 - 07:19 | 2557219 TideFighter
TideFighter's picture

Bailing out is for smaller boats, not the Titanic.

Mon, 06/25/2012 - 06:50 | 2557177 blueridgeviews
blueridgeviews's picture

The banks ARE the problem.  What makes anyone think creating a NEW bank is going to solve the problem?

Have we learned nothing? Sigh.

Mon, 06/25/2012 - 11:38 | 2558111 engineertheeconomy
engineertheeconomy's picture

Actually, bankers and politicians are just a thinly veiled front for the real control freaks pulling the strings, the military. WW3 has been going on since 1972 and it is being fought with pretend paper money. Their ultimate goal is to have every man, woman and child locked up in chicken coops as workers while they party on their megayachts.

 Hyperinflation will precede the roundup of citizens into FEMA camps. Believe it.

Mon, 06/25/2012 - 02:41 | 2557052 Nobody For President
Nobody For President's picture

And for the bad news...

Mon, 06/25/2012 - 00:52 | 2556990 JohnG
JohnG's picture

Math does not lie.

Exponential growth is a bitch.

Mon, 06/25/2012 - 07:01 | 2557197 Peter Pan
Peter Pan's picture

Compounding growth is the bitch. When it becomes exponential it's too late.

Mon, 06/25/2012 - 04:32 | 2557111 tiger
tiger's picture

Math does not lie:

Bailout + Bailout = Death of the Peoples

Mon, 06/25/2012 - 10:46 | 2557834 All Risk No Reward
All Risk No Reward's picture

"Bailouts" for Big Finance Capital actually accelerate the bankruptcy of the nation states as shown in this Debt Money Tyranny flow chart...

Debt Money Tyranny

http://www.keepandshare.com/doc/3325954/debt-dollar-tyranny-2-54k?tr=77

That flow chart explains how the system works - and exposes the whole thing as a Big Finance Capital takeover plot.  Yes, people, rich, powerful people have a self interest to seize control of government, preferrably covertly by financial means, in order to protect themselves from the voting masses.

Well, they have their protection.

John Taylor Gatto claims there was a "2nd American Revolution" between, say 1865 and 1910 - and the British won.  It wasn't via force of arms, but by force of insight into how opinion was created (at about 38:30 into the first hour of The Ultimate History Lesson)...

The Ultimate History Lesson:

http://www.youtube.com/watch?v=YQiW_l848t8

Mon, 06/25/2012 - 08:40 | 2557352 Popo
Popo's picture

War is coming.

Mon, 06/25/2012 - 11:05 | 2557917 mendolover
mendolover's picture

And very humbling reality.

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