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I Just Got Back From the EU... and It's Worse Than You Imagined

Phoenix Capital Research's picture




 

 

I just got off the plane from Europe. I went there because I wanted to see the effects of the French election as well as get an "on the ground" perspective of what's really happening in Europe.

 

I can tell you, the situation in Europe is far FAR worse than the media is even willing to acknowledge.

 

See below:

The above image was taken at 9PM on Paris’ Avenue de Champs-Élysées (the road leading to the Arc de Triumph) on May 8th, the night Socialist Francois Hollande beat Nicolas Sarkozy.

 

This is a major four-way intersection, come to an almost complete gridlock as Parisian youth park their cars to block traffic.

 

The sound was deafening as these kids honked their horns, screamed, sang songs, and waved flags. Did they care about traffic? Nope. Some of them even got out on top of their cars to smoke and dance (like the young man in the white pants in the image above).

 

These kids, like most youth in the EU are sick of getting the shaft from the political elite. Youth unemployment in France is near 25%. It's at an astounding 50% in Greece and Spain.

 

So French youth, like others, voted to kick Nicolas Sarkozy out of office. But that's not the BIG story from the French elections.

 

You see, French Presidential elections take place in two rounds. During the first round, voters will vote for anyone running. The two candidates who receive the most votes will then proceed to the second round, the winner of which will become France's President.

 

Hollande and Sarkozy were the winners of the first round. But as the final tally in the second round revealed (51% vs. 48%) voters weren't exactly thrilled with either one of them.

 

Instead, the BIG STORY in the French elections was the fact that the hard right, anti-Euro, anti-immigration party, the Front National Party, or NFP, took the most votes from French youth.

 

That is correct. When it came time to vote in round one, more French youth voted for a party whose leader wants to break up the Euro, who wants to deal with immigration by kicking out any immigrant who cannot adhere to French principles or who commits a crime, and who once compared the legal French tolerance of Muslims praying in the streets to putting up with Nazi occupation.

 

Oh, and her father, who founded the NFP, wanted to do away with the concept of immigration completely and once commented that Germany's occupation of France during WWII was "not particularly inhumane..."

 

As a whole, the NFP took in 20% of ALL French votes during the first round of the French elections. That’s a record high for the party and not far off from Sarkozy’s and Hollande’s first round showings of 25% and 28% respectively.

 

Put another way, Nationlism is on the rise in France. And it's not over by any stretch.

 

France will be holding elections for its lower house, the National Assembly, on June 10th and June 17th.

 

Right now the socialists are in the lead to win, leaving the loosely organized center-right party, Union for a Popular Movement (UMP), with the following options:

 

1)    Join forces with the NFP to take the control of the National Assembly, or...

2)    Hand France completely over to the Socialists

 

I cannot say how this will play out. But for now, we must take into account that there is a very real possibility that the NFP may take control of France's lower house.

 

IF this happens and Francois Hollande proves to be a Presidential dud, then it is not a stretch to imagine that the NFP will gain even more traction in French politics.

 

Put another way, France could become a Nationalistic, anti-EU nation in the not so distant future.

 

And that is nothing compared to what's happened in Greece.

 

Greece has gone through two Governments since its Crisis began: one was the long- standing President, the other was an EU-appointed bureaucrat.

 

Now, Greece cannot even form a majority in its parliament. In fact, by the look of things there will be a run-off elction in mid-June in which the ANTI-BAILOUT Syriza party will win the majority.

 

If this happens you can kiss the Second Greek Bailout good-bye. And that's the BEST potential outcome here: the alternative is once again Greece cannot form a majority in parliament and the country descends into total anarchy and chaos.

 

After all, if Greece cannot form a government... who will be negotiating on its debt/ bailout agreements/ etc. with the rest of the EU?

 

Make no mistake, the situation in Europe is bad...  How BAD? Well, France, Spain, and Germany have ALL implemented border controls.

 

That's not a typo. Spain, France, and Germany can each close their borders for up to 30 days at any point if they so choose.

 

Why are they doing this? Because they know that when the stuff hits the fan and the EU collapses (which it will in the next few months) people are going to attempt to flee with their money... so they have made it so that no one can get it... and no one can get out.

 

The US media has completely ignored this story because the implications are truly horrifying: that the EU and its banking system could very easily collapse in the coming months.

 

After all, there are already bank runs taking place in Spain and Greece. Once things pick up steam NO ONE will be immune.

 

"So what?" You might say. "The EU won't affect the US or other banking systems."

 

WRONG.

 

According to Reuters once you include Spain and Italy as well as Credit Default Swaps and indirect exposure to Europe, US banks have roughly $4 TRILLION in potential exposure to the EU.

 

To put that number in perspective, the entire US banking system is $12 trillion in size.

 

Heck, no less than Ben Bernanke, Mr. "the sub-prime crisis is contained" has publicly admitted that if the EU goes down, it will potentially take the US with it.

 

Make no mistake, what's coming will be bigger and worse than 2008. We're talking about bank holidays, civil unrest, and the worse.

 

On that note, if you have not taken steps to prepare for the end of the EU (and its impact on the US and global banking system), you NEED TO DO SO NOW!

 

I recently published a report showing investors how to prepare for this. It’s called How to Play the Collapse of the European Banking System and it explains exactly how the coming Crisis will unfold as well as which investment (both direct and backdoor) you can make to profit from it.

 

This report is 100% FREE. You can pick up a copy today at: http://www.gainspainscapital.com

 

Good Investing!

 

Graham Summers

 

PS. We also feature numerous other reports ALL devoted to helping you protect yourself, your portfolio, and your loved ones from the Second Round of the Great Crisis. Whether it’s a US Debt Default, runaway inflation, or even food shortages and bank holidays, our reports cover how to get through these situations safely and profitably.

 

And ALL of this is available for FREE under the OUR FREE REPORTS tab at: http://www.gainspainscapital.com

 

 

 

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Fri, 05/18/2012 - 17:13 | 2441935 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

Fri, 05/18/2012 - 13:50 | 2440876 roadhazard
roadhazard's picture

 A great stress reliever is a big pantry, guns, a big pantry, ammo and a big pantry.

Fri, 05/18/2012 - 13:53 | 2440870 prodigious_idea
prodigious_idea's picture

Research my ass.  It's an OpEd piece, and lousy at that.  Why did ZH post this dribble?

Fri, 05/18/2012 - 15:33 | 2441468 giovanni_f
giovanni_f's picture

Many will go to bed this evening with the same question in mind. See below.

Fri, 05/18/2012 - 13:44 | 2440857 Davalicious
Davalicious's picture

Graham Summers needs to wake up. France has a problem with immigration, which has been forced on ordinary people, and with unelected EU bureaucrats who want to take over people's lives.

NATIONALISM is not a dirty word. It is the opposite of INTERNATIONALISM which (mainly Jewish) Marxists have forced on us through their control of politics and the media.

Fri, 05/18/2012 - 13:42 | 2440851 silverscouseparis
silverscouseparis's picture

Scare story from Europe..yeah keep thinking the problems all over..there right?...actually the FN received 18% of the vote in the first round but what's 2% between friends or 15 trillion in us national debt...?..Europe Europe Europe anything to not look at the debt problems in the country with the biggest debt.

Fri, 05/18/2012 - 13:49 | 2440872 GeneMarchbanks
GeneMarchbanks's picture

Europe Europe Europe anything to not look at the debt problems in the country with the biggest debt.

It's the name of the game. If they can keep you from traveling and meeting people with contrasting thoughts and views it's a bonus win for them. The loss is all yours.

Fri, 05/18/2012 - 13:30 | 2440813 SILVERGEDDON
SILVERGEDDON's picture

Summers time, and the livin' is eeeaaassssy. Freeee reports, and the public is miiinnne. I'll bet you sing this song in the shower. Use some soap, and lip synch to someone with talent. 'Cause you still stink.

Fri, 05/18/2012 - 13:29 | 2440810 BeetleBailey
BeetleBailey's picture

Graham Summers in a nutshell:

THE WORLD IS GOING TO SHIT!

Good Investing!

Sincerely,

Me

Oh....by the way.....my own shit is free (shhhhh...I charge suckers for ad space - peripheral vision ya know...shhhhhh)

Fri, 05/18/2012 - 13:10 | 2440738 hedgeless_horseman
hedgeless_horseman's picture

 

 

...the final tally in the second round revealed (51% vs. 48%) voters weren't exactly thrilled with either one of them.

Alternatively, the final tally in the second round revealed (51% vs. 48%) voters were equally thrilled with either of them.

Fri, 05/18/2012 - 13:03 | 2440714 Trimmed Hedge
Trimmed Hedge's picture

I just got back from China.. they are kicking our asses over there!

Fri, 05/18/2012 - 13:02 | 2440710 XtraBullish
XtraBullish's picture

Graham you have been screaming "The Sky is Falling!" for the three years I've been on ZH! Gold went from $780 to $1,900 and the S&P from 666 to 1,420. I know how NOT to prepare for the end of the world - like by forking out money for an "advisory" service. Rather spend it on good Scotch and a little Keno girl that can suck the chrome off a trailer hitch.

Fri, 05/18/2012 - 14:03 | 2440920 Hugh_Jorgan
Hugh_Jorgan's picture

For the record, skyrocketing gold is not generally a bullish indicator, and neither is more than doubling the S&P when you factor in the documented manipulation from HFTs, wild monetary easing and flatline volumes in trading.

Just about everyone with a clue and relatively limited $$$ is out of the market right now. This has bought the banks some time, but it is not unlimited. Tick-tock...

Fri, 05/18/2012 - 13:22 | 2440783 blunderdog
blunderdog's picture

The sky was very high up.  It takes a long time to fall.

Fri, 05/18/2012 - 13:03 | 2440697 silverserfer
silverserfer's picture

Oh no Grham, does this scare you because it signals a your monthly deflationary pro bond advice is starting to show stress fractures?

Gold bitch.  

 

By the way whothe fuck says,

" I just got back from the EU"

you mean you just got back from France. If you traveled to more than one country then you say I just got back from Europe. You diddnt even go there did you.

 

Fri, 05/18/2012 - 12:53 | 2440667 s0lspot
s0lspot's picture

Glad you left the "EU" then, we don't need anymore wankers than those already present over here...

 

The french NFP has never had one single MP in the french Lower House. They exist but have no political representation nor impact on french politics, except during showtim...errr 'scuse my french, election time.

Talk about what you know and shut up when you don't, tourist.

Fri, 05/18/2012 - 14:28 | 2441011 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

OK so here's my big-ass prediction: Hollande = Obama. Lots of talk about hope and change and reform but nothing will change. No-thing. It will be business as usual, the banks and the government versus the people.

Just more circus for the masses. And less and less bread.

Fri, 05/18/2012 - 12:37 | 2440589 El Oregonian
El Oregonian's picture

FRANCE= PEPE LE'PEW

Fri, 05/18/2012 - 12:42 | 2440611 Sandmann
Sandmann's picture

That is a really pitiful article and suggests the writer has not been anywhere nearer Europe. It is absolute bunkum

 

Go watch Russia Today, Al-Jazeera, France24, EuroNews,  for a better perspective - or simply watch Keiser Report

Fri, 05/18/2012 - 12:24 | 2440529 Zola
Zola's picture

LOL Graham, UTTER RUBBISH... the NFP winning the National Assembly ?? funniest thing ive heard all day.

Fri, 05/18/2012 - 13:56 | 2440887 Tortuga
Tortuga's picture

funny, for sure it is, it's different this time.

Fri, 05/18/2012 - 19:01 | 2442230 Al Gorerhythm
Al Gorerhythm's picture

+ 100

Not that I've subscribed to Graham's offerings (I'm secure in my holdings), but he has called it as it has unfolded, before it unfolded and has taken the gumption to get up off his ass and see for himself, just to confirm. So, you free shit folk, you would prefer his services for free or remain blinkered to the news.? WTF! Lol la la la la lol. of course you do. Your rants against a guy offering you his services, supported by his insights as a business venture ( I imagine that you get a free report followed by a paid service if you care to continue) is anathema to you? Tough room.

Fri, 05/18/2012 - 23:41 | 2442772 Sandmann
Sandmann's picture

to get up off his ass and see for himself, just to confirm

So why don't you ?  It is crap like this that makes Americans seem really stupid and not just in Europe but in Asia too.

Sat, 05/19/2012 - 08:05 | 2442996 Al Gorerhythm
Al Gorerhythm's picture

Oh, I have Sandman, and I have been warning people for as long as I have been awake. Trouble is, no one wants to listen. That being the case, fuck'em, because I'm tired of dickheads with egos so large that they can't entertain the possibility of the world being different to  the rosy picture painted by their normalcy bias. So, tell me wise one, how has Graham, or Reggie, or GATA, or Rogers or anybody else sounding the clarion since the 80's 90's 00s been wrong, other than making early calls? Ask a Greek citizen or the 100 million unemployed in the US, or the owners of the 12 million underwater mortgage, or the 40% unemployed Spaniards. Yup. It's all beer and skittles, but then, why am I trying to convince you? You seem to have it all wired, just like those millions mentioned, who could have avoided this if they had just opened their blinkered eyes. This isn't something new and you have been warned. If you didn't see it coming it's because you didn't want to. Suck it up.

 

Fri, 05/18/2012 - 13:40 | 2440843 lotusblue
lotusblue's picture

I agree Zola-"what rubbish!"

With long and deep family ties to France,this "article" reeks of eyes seeing through tainted glass.

 

Fri, 05/18/2012 - 12:22 | 2440520 skepticCarl
skepticCarl's picture

After reading Summer's article, I'm scared. I'm anxious.  What should I do to protect myself?  What luck! He has a link to his website where I can learn how to overcome my fears and anxiety, and even profit!  Thanks, Tyler, for continuing to offer this great individual your free forum.

Fri, 05/18/2012 - 20:34 | 2442458 John_Coltrane
John_Coltrane's picture

And I always enjoy that final ironic admonition, "good investing".  All "investing" involves a counterparty and a degree of trust as well as free markets.  If anarchy is really about to take over, investing for profit is the least of anyones worries.  Human cognitive dissonance is a never ending source of amusement isn't it?

Fri, 05/18/2012 - 14:38 | 2441081 Alea Iactaest
Alea Iactaest's picture

Not free. Graham pays for the space. Now shut up and say something nice so he'll keep paying to post this crap and we can keep reading the other crap articles we like!

 

Edit: intended to be humorous

Fri, 05/18/2012 - 12:21 | 2440514 pupton
pupton's picture

Dear Graham,

I just looked up.  The sky is still there. 

Pup

Fri, 05/18/2012 - 12:54 | 2440679 gaoptimize
gaoptimize's picture

Normalcy bias?  The "sky" I think you are referring to is still up there beacuse it is being supported by stacks of unsustainable sovereign debt, much of it held by insolvent banks.  The Jenga game has been underway for months now.  I think it is Itally's turn.

Fri, 05/18/2012 - 13:57 | 2440888 pupton
pupton's picture

I know, I know.  But Graham has been demogouging this while pimping his newsletter for a very long time.  I believe and prepare for the inevitable, but Graham is just sensationalizing this to draw eyeballs to his newsletter.

Fri, 05/18/2012 - 12:21 | 2440494 Irene
Irene's picture

Dear Graham,

Chill. The French just love to pretend they're revolutionaries.  They've been doing this shit like forever.  Kids blocking the Champs Elysees?  That's pretty tame stuff for the French.  Wake me up when the molotov cocktails start being thrown about with abandon and entire streets are blocked with overturned cars set on fire.

As for the Front National, the chances of them gaining control of the National Assembly is about 0%.

 

Fri, 05/18/2012 - 13:35 | 2440824 LFMayor
LFMayor's picture

Irene, you can't block Paris streets anymore.  That's exactly why Napoleon had them built extra wide... ineffective to barricade.

Fri, 05/18/2012 - 14:03 | 2440921 Moe Howard
Moe Howard's picture

They were built the way they were so he could fire cannons down them to clear the rabble.

Fri, 05/18/2012 - 12:32 | 2440564 Gully Foyle
Gully Foyle's picture

Irene

Whatever happened to all those revolutionary movements from the 70/80s? Red Brigade for example.

They used to sprout like weeds, and all seemed armed or willing to kidnap someone.

Now we get their weak sister OWS.

Really where is the fun with that group? Drum circles? Chanting?

Bring back the good old days when a revolutionary group was truly revolutionary.

Plus they were plots in some intersting films and minor actors in Brit tv shows like Spooks.

Fri, 05/18/2012 - 14:25 | 2440993 DosZap
DosZap's picture

Now we get their weak sister OWS.

 

Funded by Oscumma and Soro's I might add.

Fri, 05/18/2012 - 13:18 | 2440763 cossack55
cossack55's picture

Those Guy Fawker masks scare the shit out of me.  Thank heavans I haven't seen the Robin Hood masks.

Fri, 05/18/2012 - 17:15 | 2441938 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

BOO!

Fri, 05/18/2012 - 12:20 | 2440491 Xkwisetly Paneful
Xkwisetly Paneful's picture

As Islam pretty much takes over northern and western europe, northern africa and others oddly similar to the same path dolph took.

Europe was finished the day it no longer could defend itself or a long time before most were born here.

Oh that's not the case.

THen why the fuck on all earth has Mohammed been the leading baby name all over northern and western europe for years running?

I guess they all must be fans of Cassius Clay.

 

Fri, 05/18/2012 - 23:27 | 2442748 o2sd
o2sd's picture

THen why the fuck on all earth has Mohammed been the leading baby name all over northern and western europe for years running?

I'm guessing you failed statistics. If Muslims made up 10% of the population, and 99% of them named their sons Mohammed (which means son-of BTW), then 9.9 boys out of 100 would be called Mohammed, and 90.1 boys would be name SOMETHING ELSE YOU FUCKING STUPID CUNT.

 

Fri, 05/18/2012 - 20:03 | 2442388 BigJim
BigJim's picture

 THen why the fuck on all earth has Mohammed been the leading baby name all over northern and western europe for years running?

Because the evil Mooooooooslims are going to take over Europe, and impose sharia law! And then the US! And you'll have to wear a burqa!

But let's face it XP - what you're really worried about is that the EU will no longer be kissing Israel's ass night and day.

No more free nuclear submarines for your tribe to threaten us with the Samson Option any more. How will you all cope?

Fri, 05/18/2012 - 12:33 | 2440567 Gully Foyle
Gully Foyle's picture

Xkwisetly Paneful

Islam scares you eh?

It isn't the dogmatic in every religion that puts the wind up you, just Islam.


Fri, 05/18/2012 - 14:27 | 2441006 DosZap
DosZap's picture

It isn't the dogmatic in every religion that puts the wind up you, just Islam.

 

Uh, no asshat, the other dogmatics do not MURDER your sorry ass,because your not one of them.

Yeah, just ISLAM.

Sat, 05/19/2012 - 09:29 | 2443070 IrritableBowels
IrritableBowels's picture

BULLSHIT. They're just more open about it.

Fri, 05/18/2012 - 16:56 | 2441878 john39
john39's picture

brevik?

Fri, 05/18/2012 - 13:34 | 2440821 LFMayor
LFMayor's picture

It's the clitorectomies, ullulating and the burning your own johnson off with a dud bomb part that have caused me to write it off.

I don't need any part of that stupid shit.  And since they won't reform, that means they'll just have to be fucking shot.

Fri, 05/18/2012 - 14:29 | 2441013 Alcoholic Nativ...
Alcoholic Native American's picture

Please turn the gun on yourself after you start shooting these scary men with underwear bombs.  Jesus you are a tard and a tool.  

 

Fri, 05/18/2012 - 12:19 | 2440490 Marginal Call
Marginal Call's picture

A picture of the French celebrating the election.   That's a pretty compelling new picture you've brought into the fold here.

Fri, 05/18/2012 - 12:15 | 2440456 skepticCarl
skepticCarl's picture

The traffic scene shown hardly compares with "Les Miserables".  It looks pretty normal, actually.

Fri, 05/18/2012 - 13:36 | 2440827 BeetleBailey
BeetleBailey's picture

The scene was staged.

It was either:

a) Summers paying off his lackey, Pierre, to stand on a Peugot

b) Boris Nastrovich, crank starting his balky Trabant

c) Summers himself, trying to see the sun setting - but way off by three hours.

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