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Interview: Collapse in Europe is Absolutely Inevitable

Reggie Middleton's picture




 

http://usawatchdog.com - The stock market rallied on news the European debt crisis is on its way to being fixed, but is it really? Not a chance, says today's guest. Reggie Middleton of BoomBustblog.com says, "Europe is insolvent," and nothing is fixed. Middleton contends, "Collapse in Europe is absolutely unavoidable. It's a foregone conclusion." Why should you listen to this entrepreneurial investor? He has made many stunning calls. He said Bear Stearns was insolvent when its stock was trading for well over $100 per share. He warned about Lehman Brothers and predicted the financial crisis of 2008 long before they happened. Now, he says, "Europe is coming to the end of the road very soon," and a "system crash is the only way to fix the problem." Greg Hunter of USAWatchdog.com goes "One-on-One" with Reggie Middleton.

 

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Mon, 08/20/2012 - 19:08 | 2722034 bilejones
bilejones's picture

Reggie,

You need better taste in furniture.

Mon, 08/20/2012 - 18:52 | 2721991 Aquaman
Aquaman's picture

Inevitable huh?  What is it they say on ZH:  "on a long enough timeline......".  Not sure how useful this is.  If I declare a market crash is imminent and it happens two years later, was I still right.  Why yes, yes I was.  Especially if I am going to make the rounds on TV and the internet.  I want to see dates from these people who made these calls.  Michael Burry had to sweat for 3 years (and I mean sweat like running down the crack of your ass...5 sets at Wmblemdon, 12 rounds with Tyson sweat).

Mon, 08/20/2012 - 17:33 | 2721787 boiltherich
boiltherich's picture

Slightly off topic.... though this could certainly be what puts the euro out of it's misery - went to Stratfor to see where our navy is today and the headline story was this.


The Challenges of an Israeli Airstrike on Iran


Aug 20, 2012 | 1101 GMT

There are three main routes the Israeli air force could take to reach Iran, but each poses its own challenges.

 

Mon, 08/20/2012 - 18:03 | 2721702 Zero Govt
Zero Govt's picture

Reggie, your wallpaper, leather chair and particularly the carpet (!) look a tad dated. I like ultra modern stuff so i'm biased

PS. Apologies but that's all i could think of listening to your Greg Hunter 'Europocalypse' interview as my mind wandered... Graham Summers has absolutely done/flogged this topic to death, most ZH'ers are bored stiff with it and in auto-switch off mode until the actual fireworks begin.. sorry!

Mon, 08/20/2012 - 18:06 | 2721885 Zero Govt
Zero Govt's picture

<< Reggies decor is most excellent

<< Reggies decor is naff

Mon, 08/20/2012 - 18:08 | 2721886 Zero Govt
Zero Govt's picture

<<  Yes i'd like to hear another Europocalypse story, please 

<< No more Europocalypse stories thanks, i'm bored shitless

Mon, 08/20/2012 - 16:18 | 2721528 Gromit
Gromit's picture

/OT  Nice to see that POS PEI down 65c today!

Mon, 08/20/2012 - 15:25 | 2721367 TJ00
TJ00's picture

While I agree with Reggie on the EU being insolvent the idea that all the money will make it out to the US seems to me to be akin to saying if the Titanic sinks everyone will be safe in the lifeboats, if the EU banking systems goes, the contagion will take down most if not all the worlds banking system, what happens from there will most likely be complete chaos unless their is a sudden and global meeting of political minds to reconstitute the system with all deposits being guarenteed and moved to newly created banks and early repayment of senior bondholders at par, and neting out derivatives and canceling unpayable ones with repayment of any moneys paid, with any losses being paid with newly created central bank funds, that might stop a panic, but I doubt it will happen.

Mon, 08/20/2012 - 14:21 | 2721160 mendigo
mendigo's picture

I think the "event" that you are watching so carinept and efully for is in the rearview mirror. Yes you pros could probably double your money overnight if you get it right but they are still 10¢ dollars and will be 5¢ soon - it is complicated to quantify but how many hours does a family have to work to pay thier bills.
QE is only realizing the costs that were incurred long ago.
We are well into the downward slide.
Gold does not fix anything - the problems stem from globalization, socialism, corruption, bureacracy, poor education, selective enforcement of ineffective laws which are so complex that they cannot be understood
whatever

Mon, 08/20/2012 - 13:49 | 2721049 AldousHuxley
AldousHuxley's picture

they are not going to let it collapse....but countries like Greece is looking at 20 year recession

 

they are just streching the loan with lower interest but longer term....just like mortgage refinancing in US....in the end banksters get more money.

 

young europeans have brighter future in Asia......blame their leaders who sold them out.

Mon, 08/20/2012 - 18:53 | 2721992 Pejorative Requiem
Pejorative Requiem's picture

Who is they, Aldo? Your own hero's are the undoing of the socialist dream called "Europe". "They" will let it fall or prop it up a little longer as it suits them. As Stalin said, "Forward!"

Mon, 08/20/2012 - 13:28 | 2720964 diogeneslaertius
diogeneslaertius's picture

REGGIE MOTHERFUCKING MIDDLETON BITCHEZZ!!!!!11!!1

Mon, 08/20/2012 - 13:25 | 2720949 Dina Strange
Dina Strange's picture

Reggie is right and i believe most of us understand that Europe is insolvent due to shadow banking and derivatives conterparty connections. The question is, will Europe be allowed to fail. Notice i use the term "allowed" asin implying that it's up to someone else BUT Europe to decide its own fate. Most of us understand that this whole ECB mandate of not printing money is just a scare tactic to ensure the public will agree to lower pensions, salaries, cuts in social public programs and so on. Also, it is used to buy public utilities on the cheap as to charge monopoly prices on them by banks. Timing is irrelevant - the real question will be - will the "elites" consider keeping eurozone more beneficial than letting it fall apart. My bet is that on the former.

Mon, 08/20/2012 - 13:02 | 2720872 poldark
poldark's picture

When the ECB starts printing money the European economies will be fixed, just like the American economy.

Mon, 08/20/2012 - 12:56 | 2720849 PiratePawpaw
PiratePawpaw's picture

The Nazi's used Nuckes at the battle of Waterloo on this side of Atlanta?!?

This reads like an episode of "Monty Python"

WTH?

Euro is toast, next issue.

Mon, 08/20/2012 - 12:34 | 2720782 Legolas
Mon, 08/20/2012 - 10:58 | 2720516 therearetoomany...
therearetoomanyidiots's picture

Man o man.  If I had a dollar for every prediction of the collapse of the world, US or European econoy, the dow would be at 13250 and change....

Mon, 08/20/2012 - 11:49 | 2720655 Uncle Remus
Uncle Remus's picture

Or buy you your very own gen-u-wine congresscritter.

Mon, 08/20/2012 - 08:59 | 2720203 kaiten
kaiten's picture

Youre saying it for 3 years now. Like a broken record.

Mon, 08/20/2012 - 08:39 | 2720151 Lost Wages
Lost Wages's picture

I'd like to see a debate between Reggie Middleton and Jim Rickards on the fate of the Euro.

Mon, 08/20/2012 - 08:17 | 2720110 JamesBond
JamesBond's picture

Reggie is correct.  Countries with the big guns (nuckes) will survive the global economic collapse.

 

-jb

Mon, 08/20/2012 - 09:09 | 2720232 i-dog
i-dog's picture

"Nuckes" (?!) are not an offensive weapon ... they are a deterrent against external aggression.

They are totally irrelevant in an economic collapse.

Mon, 08/20/2012 - 09:29 | 2720278 falak pema
falak pema's picture

If only the Israeli hawks could hear you...I seem to remember both Hiro and Naga were preemptive strikes....thats REAL history, sealed and delivered; not conjecture! 

Mon, 08/20/2012 - 09:52 | 2720326 i-dog
i-dog's picture

LOL ... those were "proof of concept" strikes.

The world is quite different nearly 70 years later ... when a number of countries are now known to have them, and others can pick them up on Russian eBay....

Your ananlysis of Greek mythology is far more convincing than your grasp of actual history. :)

Mon, 08/20/2012 - 10:30 | 2720420 falak pema
falak pema's picture

Phew, I just had this horrible vision that you would say that my grasp of current history was defective as I don't understand "manifest destiny". Thank God for small mercies.

"proof of concept"...is a distant cousin of manifest destiny, maybe those indian wars were also part of the "proof of concept" meme. Like the Cathar Crusade, and Constantinople for latins takeover in 1204. History repeats, and the "infidel" changes faces very conveniently.

"Proof of concept", out of the box usage in geopolitics; I must bookmark that! 

Once the precedence is set it just might boomerang; think about that! I'm sure they have nightmares over it in the Pentagon and Tel Aviv. 

Mon, 08/20/2012 - 08:00 | 2720096 apberusdisvet
apberusdisvet's picture

The Rothschild cabal will fight to the bitter end for the Euro; the planned first stage of the NWO.  Meanwhile, on this side of the Atlanta, the 4th Reich is moving along just swimmingly, thank you.  I just want dibs on a top bunk at the FEMA camp.

Mon, 08/20/2012 - 14:42 | 2721230 Winston of Oceania
Winston of Oceania's picture

Top bunk is where the heat and stink gather, better off on the floor unless it is winter.

Mon, 08/20/2012 - 17:12 | 2721722 TPTB_r_TBTF
TPTB_r_TBTF's picture

 

when the guy in the bunk over yours dies, ...

  1. the 1st thing that happens is- his sphincter stops working. 
  2. the 2nd thing that happens is- you notice.
Mon, 08/20/2012 - 11:51 | 2720659 Uncle Remus
Uncle Remus's picture

Wait - which side of "Atlanta" is that again?

Mon, 08/20/2012 - 08:10 | 2720104 boiltherich
boiltherich's picture

Lord Rothschild in $200 Million Bet Against Euro: Report

 

You know the euro is in deep water when a doyen of the banking industry, Lord Jacob Rothschild takes a 200 million pound ($314 million) bet against it.

http://www.cnbc.com/id/48721839

 

Mon, 08/20/2012 - 11:45 | 2720642 Uncle Remus
Uncle Remus's picture

I'll bet his chauffeur has more than that in the toll-change cup.

Mon, 08/20/2012 - 09:06 | 2720221 Juan Wild
Juan Wild's picture

ahhh...hello...don't ever forget the Battle of Waterloo. His true motive is deeply shrouded. He will agonizingly mislead those who watch him the most. So lets see, he gets his megaphone out (basically ALL THE MEDIA IN THE WORLD)and says "hey,guess what, I'm gonna short the euro." What a hoot.

IMHO the euro will go down to 1.19 after the S&P runs up past 1425.So maybe a short term bet against the euro is okay.

Then just when all hope for the euro is gone,when most people are short the euro,some bullshit news (reinforced with extremely heavy-handed forex manipulation) will send the euro and S&P waaay past what it is today. Then a melt-up from Hades conducted by Satan himself will leave all the shorts behind.

Besides what is 200 million pounds to Rothschild? Like he needs money? HAHAHA! You think he carries fiat in his pocket? Oh you know he has lots of paper currency in his vault...lol! He's fucking with our minds.

Mon, 08/20/2012 - 08:30 | 2720140 Lost Wages
Lost Wages's picture

Lord Jacob Rothschild wipes his ass with 200 million pounds.

Mon, 08/20/2012 - 09:24 | 2720269 boiltherich
boiltherich's picture

You notice I presented the headline and link without comment (unusual for me eh?). I saw the reference to Ratschild and had to post the link I had just been at over at CNBS.

But, if they are betting a third of a billion bucks against the euro it is certain to be the bait in a bear trap. If they wanted the euro to go away they could make that happen today, one way or the other they know the fate of the euro and probably the timing of events because they are pulling the strings, they will profit no matter what. If this bet is lost it will only be because they have a larger bet on the other side of the ledger. And I would think that if they were serious about betting against the euro it would have been a somewhat bigger bet, or maybe it is and the larger bet is undisclosed.

Or, perhaps they do have a much bigger bet against the euro, like trillions in Ratschild bank issued debt denominated in euro that they will not have to honor once the euro is gone, but only publically announced this small one (by their standards) to get the ball rolling downhill faster. And you though only Wall Street could pull of crimes of such magnitude.

There is no saving the euro, all bets now are about timing not outcome, only fools and the terminally greedy are taking the other side of the bets along with those who have a vested interest in maintaining a facade of solidity in the euro for their own reasons, like the ECB and Germany, but who will abandon the currency with no ceremony at all when it suits them, and who will either cease to exist as in the case of the ECB, or who will not honor the euro denominated debts as in the case of the sovereigns.

Mon, 08/20/2012 - 11:29 | 2720588 Lost Wages
Lost Wages's picture

Yeah, I agree that it seems like a bear trap. The Rothschilds have been working to centralize wealth and power for years, so it would be surprising to me if they were to give up on the Euro project. This is why I tend to fall more on the Euro-survives side of the debate. With infinite monopoly bucks and the will of the politicians, governments can make just about anything happen. There will be repercussions throughout the rest of the world, but the Euro will more than likely last. I'm guessing Rothschild's long position is much larger than his short and the most crowded trade in history (shorting the Euro) could become a major payday for those holding the other side of the trade.

Mon, 08/20/2012 - 10:26 | 2720417 otto skorzeny
otto skorzeny's picture

they bat the Euro from $1.20 to $1.45 and back to $1.20 like a cat bats a ball of string

Mon, 08/20/2012 - 08:30 | 2720139 Yellowhoard
Yellowhoard's picture

Perhaps, however 200 million is tip money for these 'people'.

Mon, 08/20/2012 - 07:41 | 2720072 orangegeek
orangegeek's picture

Economic collapse will be a process, not an event. 

 

And this next process will take much longer than the one that started in late 2007 and ended in March 2009.

Mon, 08/20/2012 - 07:53 | 2720086 Quinvarius
Quinvarius's picture

Like fat aunt Nelly falling down the stairs at a family reunion.  She will be grabbing at everything on the way down, but unable to stop the momentum for more than a second or two at a time.  Then another scream and another set of stairs.  This could take a while.

Mon, 08/20/2012 - 07:38 | 2720046 rufusbird
rufusbird's picture

Thank you for posting the video of that interview. The best spent half hour I have had in a while. A well articulated assessement of the Eurozone situation. I especially liked the closing comments about it not being the end but the rebirth of growth, flushing the bad debt out of the system.

*note: I have  been standing on my soapbox talking about the insolvency issue for over a year now.

Mon, 08/20/2012 - 06:58 | 2720000 Marco
Marco's picture

Reggie, explain to me how Europe is insolvent when it actually manages positive cashflow (current accounts). Something the US can only manage whenever it attracts foreign money into yet another doomed to fail investment bubble. The internal imbalances might very well tear us down anyway ... but it's got fuck all to do with solvency.

You're living in a formerly glass house which long since has pawned all the windows.

Mon, 08/20/2012 - 08:18 | 2720112 covert
covert's picture

reggie always nails it right on the money. very close to perfect.

http://expose2.wordpress.com/2011/11/20/a-voice-from-the-dark/

Mon, 08/20/2012 - 08:15 | 2720105 Vooter
Vooter's picture

"Reggie, explain to me how Europe is insolvent when it actually manages positive cashflow (current accounts)."

How do you know Europe is managing positive cash flow? Who's providing the numbers, and why do you believe them?

Mon, 08/20/2012 - 18:23 | 2721919 123dobryden
123dobryden's picture

but  but, the low grade bank clerk from non-country called Pedofilium with the charisma of a damp rag said sooo...

Mon, 08/20/2012 - 09:08 | 2720227 taraxias
taraxias's picture

+1000

Awesome.

Mon, 08/20/2012 - 07:09 | 2720015 Watauga
Watauga's picture

Timing is everything.  The collapse of the EURO is a question not of if, but of when.  It is going to fall.  But for how long can those with the means to do so keep it afloat?  For how long do they want to keep it afloat?  My guess is that the really big monied interests are playing this, as they always do, for maximum profits.  They can manipulate the market for a long, long time and make money on its ups and downs while the rest of us stand by, helpless and watching.  But at some point, reality is going to take over and the EURO will fall.  So, too, the dollar.  It may not be for years to come, but it will happen. 

Mon, 08/20/2012 - 10:50 | 2720490 MrSteve
MrSteve's picture

Only two weeks ago, this was announced:
LONDON (Reuters) - Royal Dutch Shell is pulling some of its funds out of European banks over fears stirred by the euro zone's mounting debt crisis, The Times reported on Monday.

The company's chief financial officer Simon Henry told the newspaper that Shell is cutting back its exposure to European credit risk in the worst-hit economies and putting a higher price on doing business with the region's peripheral nations.

Even RDS is bailing out of euro banks. Is this a hint you'd like to ignore?

Mon, 08/20/2012 - 07:56 | 2720091 ATM
ATM's picture

The EU will be forced to make a choice- accept the current horrors of aeuro collapse now or give up national sovereignty to a Federal government. Of course they will choose the latter which has been the plan since the euro was first talked about. Then of course the new leadership will debase the Euro into the scrap heap. Either way it is fucked.

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