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Do Not Ignore Europe… That Same Crisis is Coming to the US
As we have asserted since 2012, the template for dealing with Crises has been laid out in Europe, particularly in the countries of Spain and Cyprus.
That template is:
1) A problem first emerges.
2) Various political and financial officials state that the problem is contained and there’s nothing to worry about.
3) Months later, the market and mainstream media catch on… usually when the problem is already a massive crisis and a bank holiday needs to be declared.
4) Individual investors lose a LOT of money while the same folks who cause the problem A) are not fired, fined or jailed B) never come clean about the full scope of the problem and C) claim that they can solve the problem and have all the answers.
Consider the story of Bankia.
Bankia was formed by merging seven bankrupt regional Spanish banks in 2010.
The new bank was funded by Spain’s Government rescue fund… which received “preference shares” in return for over €4 billion in funding for the bank (all provided by taxpayers of course).
These preference shares were shares that A) yielded 7.75% and B) would get paid before ordinary investors if Bankia failed again. So right away, the Spanish Government was taking taxpayer money to give itself preferential treatment over ordinary investors (including said taxpayers).
Indeed, those investors who owned shares in the seven banks that merged to form Bankia lost their shirts. They were wiped out and lost everything when the new bank was created.
Bankia was taken public in 2011. Spanish investment bankers convinced the Spanish public that the bank was a fantastic investment. Over 98% of the shares were sold to Spanish investors.
One year later, Bankia was bankrupt again, and required the single largest bailout in Spain’s history: €19 billion. Spain took over the bank (again) and Bankia shares were frozen on the market (meaning you couldn’t sell them if you wanted to).
When the bailout took place, Bankia shareholders were all but wiped out and forced to take huge losses as part of the deal. The vast majority of these were individual investors, NOT Wall Street or its European equivalent (Bankia currently faces a lawsuit for over 140,000 claims of mis-selling shares).
So that’s two wipeouts in as many years.
The bank was taken public a second time in May 2013. Once again Bankia shares promptly collapsed, losing 80% of their value in a matter of days. And once again, it was ordinary investors who got destroyed.
Indeed, things were so awful that a police officer stabbed a Bankia banker who sold him over €300,000 worth of shares (the banker had convinced him it was a great investment).
Today Bankia is tied up in a massive compensation lawsuit whereby it is to pay out between 200 and 250 million Euros to investors who bought it during its initial IPO. Of course, this payout is based on accounting standards that are at best massaged and at worst likely outright fraudulent (this is, again a bank that has wiped out investors three in times in three years), so who knows what will happen?
While certain items relating to this story are unique, the morals to Bankia’s tale can be broadly applied across the board to the economy/ financial today.
Those morals are:
1) Those in charge of regulating the system will lie, cheat and steal rather than be honest to those who they are meant to protect (individual investors and the public).
2) Any financial problem that surfaces will be dealt with via fraud or lies rather simply allowing those who screwed up to be fired or go to jail.
3) When the inevitable collapse finally does hit, it will be individual investors and the general public who get screwed (not bank executives or politicians).
4) The problem will be prolonged as much as possible, likely fixed years down the road, if ever and individuals will have little or no say in how it pans out.
In terms of the timelines for these events, Cyprus…
Here it is:
· June 25, 2012: Cyprus formally requests a bailout from the EU.
· November 24, 2012: Cyprus announces it has reached an agreement with the EU the bailout process once Cyprus banks are examined by EU officials (ballpark estimate of capital needed is €17.5 billion).
· February 25, 2013: Democratic Rally candidate Nicos Anastasiades wins Cypriot election defeating his opponent, an anti-austerity Communist.
· March 16 2013: Cyprus announces the terms of its bail-in: a 6.75% confiscation of accounts under €100,000 and 9.9% for accounts larger than €100,000… a bank holiday is announced.
· March 17 2013: emergency session of Parliament to vote on bailout/bail-in is postponed.
· March 18 2013: Bank holiday extended until March 21 2013.
· March 19 2013: Cyprus parliament rejects bail-in bill.
· March 20 2013: Bank holiday extended until March 26 2013.
· March 24 2013: Cash limits of €100 in withdrawals begin for largest banks in Cyprus.
· March 25 2013: Bail-in deal agreed upon. Those depositors with over €100,000 either lose 40% of their money (Bank of Cyprus) or lose 60% (Laiki).
The most important thing I want you to focus on is the speed of these events.
Cypriot banks formally requested a bailout back in June 2012. The bailout talks took months to perform. And then the entire system came unhinged in one weekend.
One weekend. The process was not gradual. It was sudden and it was total: once it began in earnest, the banks were closed and you couldn’t get your money out (more on this in a moment).
There were no warnings that this was coming because everyone at the top of the financial food chain are highly incentivized to keep quiet about this. Central Banks, Bank CEOs, politicians… all of these people are focused primarily on maintaining CONFIDENCE in the system, NOT on fixing the system’s problems. Indeed, they cannot even openly discuss the system’s problems because it would quickly reveal that they are a primary cause of them.
For that reason, you will never and I repeat NEVER see a Central banker, Bank CEO, or politician admit openly what is happening in the financial system. Even middle managers and lower level employees won’t talk about it because A) they don’t know the truth concerning their institutions or B) they could be fired for warning others.
Please take a few minutes to digest what I’m telling you here. You will not be warned of the risks to your wealth by anyone in a position of power in the political financial hierarchy (with the exception of folks like Ron Paul who are usually marginalized by the media).
With that in mind, now is a good time to prepare for systemic risk. I cannot forecast precisely when things will get as ugly as they did in Cyprus for the financial system as a whole (no one can).
If you've yet to take action to prepare for this, we offer a FREE investment report called the Financial Crisis "Round Two" Survival Guide that outlines simple, easy to follow strategies you can use to not only protect your portfolio from it, but actually produce profits.
We made 1,000 copies available for FREE the general public.
As we write this, there are less than 50 left.
To pick up yours, swing by….
http://www.phoenixcapitalmarketing.com/roundtwo.html
Best Regards
Phoenix Capital Research
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Confederate Flag Wavers will take out 535 + ICiC first
Very good possiblity that a Confederate Flag Waver (false flag) will take out Obama in MSNBC true living color on national TV.
Great for ratings and divide & conquer.
And here in the U.S. Jon Corzine with the help of J.P. Morgan Chase walked away with $1.2 Billion of little old ladies and retired farmers money.
All Corzine had to say was that the money "vaporized" and he walked free.
If you are not a connected elite - you are a target.
Absolutely. Very important to remember this. Especially if you're ever tempt ed to think that Eric Holder and Oblahblah are not part of a criminal gang. Completely un-acceptable that he was not prosecuted.
Very high on the list for one on the LYNCHING LAMPOSTS. Every city should have severak so desinated;--unless you opt for the Joan of Arc solution Burn Baby!!! Milestones
Very high on the list for one on the LYNCHING LAMPOSTS. Every city should have severak so desinated;--unless you opt for the Joan of Arc solution Burn Baby!!! Milestones
This will hit the UK first...and then India...
wow another dooms day prediction from Pheonix Capital, what a surprise! Keep em coming, sooner or later you will be right!
Funny that. I've been begging my wife to take out her pension 401K @ Fidelity Mutual for years. I've been wrong since the rampant surge in the market. I can't blame her when I tell her this time IS not like the other times.
Trade group I want to see your face when SHTF I'd bet ive seen the color before.
where is your currency in the bank? In Euro? Yen?
You remind me of a friend of mine who thought that his job was safe, when the company asked for a 10% pay cut (of some very overpaid mill workers) and the sheeple employees said no.
I showed him that 5 years ago the share value of the company was $18 and at this point it was $.27 the company had no money and needed the pay cut to keep the doors open. The employees voted no pay cut, and the week after the mill closed.
My friend was greeen with shock! 1500 employees out of a job.
Well I expected all this back around 1980, when neo-liberalism, deregulation, privatization, financialization, etc. began to take hold.
I warned a few people, who thought I was crazy, so I mostly STFU and now cannot get hammered for "getting things wong".
I was wrong in thinking that things would come to a head within about ten years, i.e. the 1990s, but who could have known how far banksters and politicians would kick the can down the road?
The only mistakes Phoenix Capital makes is to keep on going public - thus inviting ridicule in some quarters - and proposing ways to survive the coming global crisis, which I now think is really immanent.
September may be when things rapidly go haywire (but I have been wrong before).
In any case there are far too many wild cards in play to confidently predict "the world to come" and how to survive in it (not of great concern to me because I am 72 and will die soon).
Wild cards? 1) Well no one has ever experienced total financial collapse, which is why I guess that the banksters and politicians will do anything to kep the Ponzi scheme going.
2) The crazies in Washington/NATO might cause nuclear war - in which case all bets are off.
3) The peak of nearly all Easy Resources has come and gone in most of the World, which is why Russia is intended to be dismembered and why 2) is a possibility.
4) Fukushima is a permanent disaster, but nothing compared with the hundreds of nuclear power plants which probably cannot be maintained and/or decommissioned, in the wake of economic collapse.
5) Over-population ....
That'll do to outline why I think that no one can realistically propose answers for a post-collapse world.
Overpopulation will cure itself. Total Financial Collapse has been experienced over and over again thru-out history. buy Silver; you might live to be 82; and you'll really be glad you did. I'm 72 also and I bought my Silver Bullion at an average price of $6; I was "too early". It's okay to be too early.
Model, you did everything right, and your remaining family after you pass will remember you for it. Instead of leaving them with nothing, paper, goods that will be taxed, profits that will be taxed, you will have left them a store of value, best investment ever and no tax on the profit.
PS
Indusrial Civilization is a one-off phenomenon which can never be repeated.
The "moder world" can be said to have begun in Britain about 300 years ago, when Britain was largely self-sufficient with such crucial commodities as coal and iron ore ... long-since gone.
Fast forward to little over 100 years ago, when the US had substantially replace Britain as THE manufacruring capital of the world, but this time around oil had begun to replace coal as the prime energy resource, but Peak Easy Oil happened in the US only about 70 years later in 1971, which has everything to do with stitching up a deal with the Saudis and floating the petro-dollar - now under increasing threat from the Russia-China-BRICS axis.
A great irony is that China, especially, has sought to replicate the Industrial Revolution begun in Britain, BUT without anywhere near enough natural resources. So much as I sentimentally like the idea of the challenge to Washington's global hegemony and much as I like the fact that at least Russia could still "develope" given its vast resources, I cannot see a future for anyone that's a continuation of, or replica for the previous 300 years.
Archdruid Report? I've been reading him lately. I don't agree with everything he says, but he's interesting, and makes some good points.
I'm currently nearly finished with Collapse Now And Avoid The Rush. Its a best of compilation available on Kindle. Someone here turned me on to the guy.
BTW: Completely agree about China. They just don't have the resources. I think they know it too, and that's why they are hoarding gold.
The real problem will be disposing of 6.5 billion bodies, after that, problem solved.
The thing to do is to bury them all in one spot, so they become a monster oilfield in a few tens of thousands of years.
>you will be right...
and then comes the carnage. Looking forward to it myself. Should be able to settle a lot of old scores when the rule of law no longer applies...
I think this article actually understates how desperate things will get. There is nobody to bail out the U.S. We are at the top of the debt food chain and when we topple, which we will, there will not be anyone coming to save us.
You can damn sure bet there will be an executive order over the weekend and poof! your life savings will be gone. Look at the deal Obama and this admin. gave all those crooked bankers. A few fines to make it all look good, not one criminal in jail.
That's why countries are taking measures to protect themselves now. The fucksticks are running this asylum, so who knows what kind of stupid shit they will do next.
BS, We have a printer and Extend and Pretend is the order of the day. The shit show in the USA will go on for years. Look at Japan!
At some point in time the most intelligent of the sheeple will fear FIAT, once the ball gets rolling at some point the dummest of the dumb willjust follow because that is what they do.
As for the timeline of this event who really knows for sure, but if and when it happens it will be all over.
Then, April 11, 2013, banksters met with BHO. Gold got hammered.
Wrong.
Japan will, if not already, be bankrupt. Fukushima has 3 reactors in meltdown and they cant even locate the melted fuel because nothing can withstand the 7000* heat to go down there and check it out.
This makes Chernobyl look like a campfire. Chernobyl was one reactor that never reached the ground and still cost over a half a trillion dollars to control.
Last esimate I heard was 200 years just to get it Fukushima under control, if ever.
https://youtu.be/18X1PM4qwvY
This all sounds highly implausible. What other conspiracy theories are you panicked about? Maybe Chicken Little was right.
AP, Asahi Shimbun, Mainichi, Yomiuri Shimbun, South China Morning Post, reporting that corium has melted through and hit groundwater.
http://enenews.com/ap-biggest-question-fukushimas-melted-fuel-asahi-fuel...
NASA: polonium hitting in massive quantities in Southeast United States:
http://enenews.com/nasa-experts-anomalously-high-levels-polonium-found-s...
CS134-137 density up 16 times from march:
http://fukushima-diary.com/2015/06/cs-134137-density-in-retaining-water-...
Sea life on U.S. pacific Coast disappearing:
http://enenews.com/eerie-new-phenomenon-attacking-sea-creatures-west-coa...
Burying your head in the sand;
http://www.zerohedge.com/users/roddy6667
This is not a conspiracy theory. It is well known that all 3 reactor fuels are in the ground water.
Min 20:30 thru 29:00
https://youtu.be/8af-4QSbfWw