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Interview: Collapse in Europe is Absolutely Inevitable
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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this is what the banks are asking for, yes, including EuroTaxes and EuroBonds. now of course we could debate long time if they always get what they want, but the general tenor is: No, thanks.
marco! don't mess up the narrative with facts! shame on you! last year we witnessed a stampede of EURs being converted back to USD, mostly from the very-intelligent-money called the money markets. lots of people made quite substantial profits from this.
fact is, we already live in hyper-inflationary times if you take the propensity of the "common man" to engage in high-risk speculative bets.
all over the financial world you can witness hordes of wannabe Soroses that are betting on "something will happen to the EUR", all hoping that if the EUR breaks, somehow the USD will be "fixed". banksters are more than willing to leverage those bets to infinity
again, don't mess up the carefully crafted narrative. death to "central planning", down with facts
2 more EuroZone facts:
Shaky ground for 16 out of the 17 economies!
good, facts are always good. how many of the parts the German exports are made of are from the 16 other countries? I've always blasted here in ZH about how integrated the eurozone is in multistage industrial products. nevertheless, yes, if the US stops all imports from here, it's bad.
You want a stupid quip? Here: knowing our dear socialists, they will make consumption of "LVMH trinkets" mandatory and subsidized by fiat printing. Our conservatives would then quip back: this is worse than producing them for foreign printed fiat, now everybody drives my car...
Now, stupid quips aside: it does not pay for any country to break out of the EUR, at this stage. Watch Greece and how the Germans wish it would just go.
And the master option is always back to the USD (or GBP), either by direct adoption or by peg. Ireland, for example, could do it. Do they even think about it? No.
Just watch the gold price in EUR and compare it to all the other currencies and you'll notice (remember that word?) relative stabeeleeeteee!
Absolute nonsense. Have a look at the 10-yr Gold-in-EUR history (skyrocketting upwards) and put it beside the 10-yr EURUSD (bobbing up and down like a yo-yo).
Stop making shit up!
to be more precise, the intraday. I'm writing this here because I'm sure someone will challenge me again about this. this point is about which currency is functionally more stable, and the time horizon for that is short, otherwise we would talk about "wealth retention", for which at the moment only gold can help.
Short term, not 10y. Long term? I'm stacking.
The dollar bubble is massive. If you grade everything based on gold, where the dollar would be backed correctly by our gold reserves, the Dollar is prices several times higher than both the value of tulips in the tulip bubble, and shares in the South Seas Bubble. It is insane. Who knows how long it can last.
its all interconnected in this mad race to bottom : 2720160
read it again,
Snap, pop, kaboom! In addition to BoomBust. Ha.
Thanks, FP.
Foregone conclusion in which time frame ?
2719973
Economic collapse -but I'm not a doom and gloomer. Reggie's the man. Bitchez.
Reggie Middleton joins Graham Summers and Mark Grant ...
United ZeroHedge Euro-Doomers
One of my favorite quotes: The difference between genius and stupidity is, genius has it's limits.
LMAO!
"bank guy in Brussels"...not only a banker, but in Brussels as well. Like being named Dick Penison.
Plus, I can't think of a worse troll name to choose...Hell, you could take your mom's candy apple red fingernail polish and paint a target on your forehead and you'd be less obvious. idiot.
http://www.singledudetravel.com/2012/08/brussels-dont-bother-dudes/
Brussels women
LSL, Well done. I would like to subscribe to your newsletter.
I just said that to someone else in another thread. We're twins!
none of them focus on how new currencies would fare in the current environment, but if this currency war goes on for longer, (and the Chinese have not shown yet any plans about reversals) - they usually last a decade and we are only in the second year - I do eventually expect some better commentary on monetary options.
I prefer Reggie's written reports to his videos. Still a fan of AEP, bank guy in Brussels?
Ghordius... I also prefer Reggie's writing... but this was an expecially bad video technically speaking. Bad sound, background noise, breaks in audio, etc.
About the Chinese: "PBoC advisor Xia recommends holding only USD 1,000bn in currency reserves, with the rest to be earmarked for strategic investments. He goes on to suggest a gradual increase in gold reserves and recommends pursuing a “buy the dip” strategy over an extended period of time. He also advises PBoC to add silver to the official reserves. At the same time, an official of the Chinese Chamber of Commerce said China should step up its gold reserves to as much as 8,000 tonnes."
The Chinese might insure interesting times for silver mkts.
http://maxkeiser.com/2012/08/20/we-expect-chinese-central-bank-continue-gradually-accumulating-gold-think-might-planning-gold-backing-renminbi/
sounds like...common sense
makes common sense too...
China buying Gold:
1). Gets rid of US Dollars
2). Improves their Trade Balance with the US
such massive purchases of PMs by a nation like China means that they see the world economy and international trade chilling down for a long period; this spells the end of the USD hegemony, aka Sterling in 1931. Without EMs pumping world economic resurgence first world can't do it. Its spells financial Armageddon in first world. Deep depression.
Normalcy bias! Where did you pull that statistic from?
This one (currency civil war? ... LOL!) is not likely to last another 10 weeks!!
I understand a lot of ZH readers don't like the bias that typical wikipedia articles have, but if you go to
http://en.wikipedia.org/wiki/Currency_war
at the bottom you'll find plenty of very interesting articles cited as sources, including one from AEP/Telegraph from 2010: http://www.telegraph.co.uk/finance/currency/8103462/QE2-risks-currency-w...
for me, this is all part of the ongoing decline since the gold default of 1971. for China, it's now 10 years of USD accumulation (3tn now), and they are planning to stop in 2016, though Romney has vowed to brand them "currency manipulators" if elected, so stay tuned.
if by 10 weeks you talk about your scenario of an EUR breakup, please note that it would not stop, the 17 currencies would still be there and the big match is anyway between the US and the BRICS
I've never said that. Get your facts right.
Just what exactly did you predict to happen in 10 weeks time? We would love to get our facts right!
All three have one thing in common, they are all 100% correct...
Fuck off asshole - Reggie is the man.
Reggie's the man, and could be right! But they could still extend and pretend a few more years I'm sure. Every time there 's a "gloom and doom" prediction, the market surges higher. When everything's manipulated, things don't always play out as one predicts, even if he is an expert.
You tell um Illya!
~ Napoleon Solo
my uncle really loved that show. Then he went out for a smoke one night and Illya ended up on some CBS show. ;-)
- Ned
{OK, what's the O/U on how many folks in these here parts even get your comment?}
Youall underestimate the power of the elite; they have kicking abilities that defy your ability to comprehend.
faith, baby faith...
s/off
I think it was Mike Burry in the Big Short that said he was scared of the government stepping in and changing the rules or intervening in some way. The eu shorts had better make sure they aren't too greedy.
Jim Sinclair, the famous gold guru has stated repeatedly that the short Euro trade is the most crowded trade in his experience and is setting up for a short squeeze of gargantuan proportions on news of any Euro QE.
I think the governments can dramatically alter the timing and the way things unfold, but don't think they can prevent the inevitable crash.
Yeah, the shorts can get hammered because of the timing, but the overall macro picture is bleak.