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The Merkel High Wire Act Is About to End... When She Falls, So Will Europe
German Chancellor Angela Merkel has walked a tightrope over the last few years of keeping the EU together without infuriating the German populace to the point of having to abandon ship.
To do this, Merkel has maintained a firm stance of “we’ll write the check provided conditions are met” much as a parent would give a child his or her allowance provided the child performed its chores satisfactorily. In the case of German, the “chores” are required conditions of austerity measures and budgetary requirements in exchange for bailout funds.
By doing this, Merkel is able to play hardball on an economic front (having failed to meet its German-required financial targets Greece had to wait an additional six months to receive another installment of its Second bailout) without appear too hard-nosed on a political front (she continually pushes to keep the Euro together, expressing a willingness to help other nations… as long as they meet her budgetary requirements).
The policy has thus far been a success with Merkel’s approval rating soaring to its highest level since 2009 (before her re-election bid). However, the latest state election in Germany upset this situation with Merkel’s party losing.
Indeed, things are worsening for Merkel and her pro-Euro efforts at an alarming rate… … a recent poll showed 26% of Germans would be willing to vote for an anti-Euro party if the German elections were held today. When you consider middle-aged Germans, the percentage against the Euro rises to 40%.
Which is why Merkel is playing hardball with Cyprus… she’s up for re-election in September, and wants to make the appearance of not putting up with any more bailouts.
Unfortunately for her, Cyprus is telling her and Germany to shove it.
Why does all of this matter? Because Merkel cannot simply go ahead with another bailout without killing her chances of re-election. And Cyprus has indicated it is not going to confiscate depositors savings to help Germany out (at least for now).
Which brings us the core point we’ve been making for over two years: that Europe in its current form is finished. It’s simply a matter of who quits first: a smaller country like Greece or Cyprus, or if things hold together long enough that the bi bill comes due and Germany walks (Germans will promise to pick up the tab, but when the actual tab comes due, they won’t pay).
So what happens when Europe breaks up? Systemic failure.
EU banks are packed to the brim with garbage debts. Add to this the sovereign bonds they own in bankrupt nations and the entire European banking system resembles Lehman Brothers. We all know how that turned out.
If you are not prepared for this… prepared for potential systemic collapse brought about by Europe…YOU NEED TO ACT NOW.
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This report features ten pages of material outlining our independent analysis real debt situation in Europe (numbers far worse than is publicly admitted), the true nature of the EU banking system, and the systemic risks Europe poses to investors around the world.
It also outlines a number of investments to profit from this; investments that anyone can use to take advantage of the European Debt Crisis.
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How can it get worse. You mean countries will depart from this wunderbar union.
there will only be 10 nations in this last resurection of the holy roman empire!!!
the EU doesn't go to pot over the cyprus issue. if the SHTF, the Fed steps in bails cyprus directly or by fiat (pun alert) in forcing the ECB to do it with funds that the Fed provides. if there is a SHTF dip, buy it. the Fed is the last link in the chain and will protect its link by protecting some of the links before it. it must pretend to allow the EU to 'work it out'. Fed intervention also would preserve victory for merkel. Fed is ultimate bailor of the world fiat system. remember, it bailed canada, and *many* foreign banks a few years back - and disguised it. the only reason the EU overloard's system works is because they know the Fed has their back's.
This guy doesn't seem to understand that Merkel's opposition in Germany are MORE willing to have the EU bailout countries. They are far more free with the citizens' money. They require no conditions because they have embraced the austerity is evil meme.
Folks need to understand this. Merkel is the most conservative of options in Germany. It gets worse if she loses.
Time to go all in !
Hmmm. "President declares first trip to Israel." hmmm. "Cyprus get's obliterated" in financial operation "shock and awe." hmm. Car bombs go off in Big Baghdaddy "as stated by disabledvet as something to watch for." (boy that didn't take long.) hm. President proceeds with trip nonetheless...is rocketed by Hamas. Hmm. Cheering, adoring crowds await...not so when going to the Palastinian territories" however. Hmmm. Did I miss anything?
"Did I miss anything?"
Yes, a waiter spilled champagne on Kim Kardashian's designer dress on Wednesday, and she demanded that he be fired.
You need to upgrade your news sources.
Oh yeah..."explain to President what a working group is and give him as many as he likes."
Yeah, yeah, yeah, Euro finished. Blah, blah, blah. Whatever. Three years of reading this shit. I would think citizens of the member countries would have been smart enough to have said no to this bullshit long ago, but when the votes failed, the Eurocrats would hold another vote and eventually rail roaded enough of those bastards onto the rail cars headed to fiscal Aushwitz. Suckers get played everyday around the world. Who'd a thunk it?
Nothing bad happens. . . until it does. Of course none of us knows the day and time this ship will keel-over, but we all know the end result w/100% certainty.
Will it be weeks? Months? Years?
Since I'm not trying to play this for profit - I'm unconcerned with trying to time the next leg down and am in the process of positioning myself to be as safe as I can be.
Pass the popcorn.
When she ( Merkel) lives with the High Wire Act she needs to understand that no one will hold the net under her.
Do i hear a thud !!!
The sooner the better
Buy that Audi A8 now, it's price in USD is going to double when the Mark comes back.
70 Miles north of Munich there is a large lot full of Audis. You could get it cheap if you know someone that's connected.
"Buy that Audi A8 now, it's price in USD is going to double when the Mark comes back"
They're not buying them now:
"With the collapse of Europe's auto market, and the channel-stuffing that is rife in every car manufacturer in the world, it is no surprise that at the end of their brief lease periods, European cars (Audi in this case) are being led to this 'graveyard' in Germany (70 miles north of Munich). This car park of chaos is full of nearly-new cars meant for destruction so as never to enter the car market as a cheap alternative and to maintain a high-priced spare parts market. It seems the Keynesian profligacy or digging a hole to fill it in has progressed in the 21st century to building a car and crushing that car as the engine of growth for our economies."
http://www.zerohedge.com/news/2013-03-17/where-channel-stuffed-german-ca...
... assuming that the Audi factory isn't requisitioned for armaments production.
Collecting a half trillion of TARGET2 collateral isn't gonna happen without some heavy ordnance being brought to bear.
It's closer to a trillion but who can tell anymore
Germany was sold a lemon in exchange for their Beemers. That's the bloody honest truth. Bless the Chinese and their appreciation for a fine German automobile.
Who cares if it is a Fantastillion more or less? It's Euros. In a few weeks you can wipe your collective arses with them and it will be more important if you got bills of 50€ or 200€ because the smaller ones will last you four times longer for the same price.
Get reasonable – who would care then? I'd rather worry whether the Russians want to repossess Cyprus in exchange for the money *they* lost and how long they will let the population work it off.
noses.
The Russians have their own problems. I think we fail to recognize that CDS on Russian paper is going up and that the Russians just maybe are not in a position to bailout Cyprus?
In a few weeks you can wipe your collective arses with them and it will be more important if you got bills of 50€ or 200€ because the smaller ones will last you four times longer for the same price.
Euros make my hemorrhoids bleed. I'll stick with the linen dollar.
Merkel is, and always has been, a Stasi-trained tool of the moneypower, embedded, just like the Sarkozy, the Keynan, the Cameroonian, and all the rest of the cast, as a WMD to explode upon the West when the time be deemed ripe...
by the millenialist madmen in the tiny terrorist statelet with the 200+ arsenal of nuclear joker cards.
The two major sionist satrapies...Deutschland and Merika...are melting down as we watch...and watching is no longer a position applicable to those with survival instincts. Many have thought that this was all a spectacle...to be treated as entertainment. Few will have anticipated that it was a well prepared apocalypse to destroy the Europoid peoples who for so long sheltered and forgave the traitors in their midst.
Joyful, you could have been a great Luchador. Instead, you came to the Tyler Durden Fight Club, revealing my techniques and agenda for all to see. Chinga tu madre Joyful, Pinche Gringo! You will pay for what you have done. Hey, did you know that today was March 22nd? Uh, 3/22, 322? I got one of those joker cards with your name on it. I was gonna do it today... but the numbers just don't jive yet. Too many competing wills watching.
Ask Chumba
http://askchumba.com/2013/03/22/today-is-322-or-322-un-dia-de-magic-indeed/
¡Chingate, cabron!
only numbers I pay attention to are the ones of the chart...took a screen shot of 1606.66 on March 18th, check it out now, looks like they're going to bookend the week with the same...
damn cabbalists. Pretty soon I'm gonna invert their numbers for them $9,909.19...how's that for a daily close!
(yea, I knew.)
You blame the bagmen. That lets the bosses get away.
I won't be there to catch the bitch either. Nope, when Little Hitler falls ill be close enough to few the splat but far enough away to avoid any of her vile shit spraying on me. Have to record it also so we can get closeups of that ugly face hitting the asphalt.
Ugly? I see a striking resemblance of the ugliness of Feinstein. Might they be transformers?