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Greece is Just the First of MANY Countries That Will Be Going Belly-Up
ALL of the so called, “economic recovery” that began in 2009 has been based on the Central Banks’ abilities to rein in the collapse.
The first round of interventions (2007-early 2009) was performed in the name of saving the system. The second round (2010-2012) was done because it was generally believed that the first round hadn’t completed the task of getting the world back to recovery.
However, from 2012 onward, everything changed. At that point the Central Banks went “all in” on the Keynesian lunacy that they’d been employing since 2008. We no longer had QE plans with definitive deadlines. Instead phrases like “open-ended” and doing “whatever it takes” began to emanate from Central Bankers’ mouths.
However, the insanity was in fact greater than this. It is one thing to bluff your way through the weakest recovery in 80+ years with empty promises; but it’s another thing entirely to roll the dice on your entire country’s solvency just to see what happens.
In 2013, the Bank of Japan launched a single QE program equal to 25% of Japan’s GDP. This was unheard of in the history of the world. Never before had a country spent so much money relative to its size so rapidly… and with so little results: a few quarters of increased economic growth while household spending collapsed and misery rose alongside inflation.
This was the beginning of the end. Japan nearly broke its bond market launching this program (the circuit breakers tripped multiple times in that first week). However it wasn’t until late 2014 that things truly became completely and utterly broken.
We are, of course, referring to the Bank of Japan’s decision to increase its already far too big QE program, not because doing so would benefit the country, but because it would bring economists’ forecast inline with governor Kuroda’s intended inflation numbers.
This was the “Rubicon” moment: the instant at which Central Banks gave up pretending that their actions or policies were aimed at anything resembling public good or stability. It was now about forcing reality to match Central Bankers’ theories and forecasts. If reality didn’t react as intended, it wasn’t because the theories were misguided… it was because Central Bankers simply hadn’t left the paperweight on the “print” button long enough.
At this point the current financial system was irrevocably broken. We simply had yet to feel it.
That is, until, January 2015, when the Swiss National Bank lost control, breaking a promise, and a currency peg, losing an amount of money equal to somewhere between 10% and 15% of Swiss GDP in a single day, and showing, once and for all, that there are problems so big that even the ability to print money can’t fix them.
This process is now accelerating in Europe where a country that comprises less than 2% of the EU’s total GDP (Greece) has managed to be FIVE-YEAR problem that cannot be resolved through more debt or money printing.
The ECB and EU have tried everything to kick the Greek “can” down the road. History has shown us time and again that Central Banks first attempt to deal with a debt problem by printing money… but eventually the debt default/haircut has to occur.
This process has now begun in Greece. The fact the markets are imploding should give you an idea of how fragile the system is. One can only imagine what will happen when a larger player such as Spain or France or even Japan goes belly up.
The Big Crisis, the one in which entire countries go bust, has begun. It will not unfold in a matter of weeks; these sorts of things take months to complete. But it has begun.
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.
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Phoenix Capital Research
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"I've got a bad feeling about this"-Han Solo
I reckon Asia will go first, then Europe, then USA.
the only thing going belly up around here is Phoenix Capital
"In 2013, the Bank of Japan launched a single QE program equal to 25% of Japan’s GDP. This was unheard of in the history of the world. Never before had a country spent so much money relative to its size so rapidly… "
In everyday language, people utilize the word "spend" to mean to expend money on things. What is really meant is "exchange." One exchanges their money, that they received in exchange for their production, for the production of others.
Within the realm of economics this word "spend" should be avoided, as there is no such thing as "to spend" within economics. In economics there are only three actions: Production, exchange, and consumption.
In an unfettered economy, one would acquire money via exchange for one's production, and then exchange that money for consumption goods, or, directly or indirectly, for capital (investment ) goods. The acquired goods would then be consumed, with capital goods being consumed as they produce additional goods. And so on.
Now in an economy sat upon by grifting banksters, money can, and is, produced without initial production and exchange; Counterfeit, theft. In such an economy the lucre that is the banksters' counterfeit is not so much exchanged with, but foisted upon unsuspecting producers. Robbing the producers of their work, efforts, and returns, and devaluing all exchanges (price inflation).
So, in an effort to cover their previous thefts, and to keep their counterfeit ponzi scheme going the banksters of Japan, in cahoots with their violence-puppets, government: "Never before had a country stolen so much wealth relative to its size so rapidly…"
Liberty is a demand. Tyranny is submission..
Economics is not hard to grasp--Make. Buy. Sell. Invest. Consume. It are the lies that claim theft is beneficial that are difficult to penetrate. Like a flimflam man convoluting and diluting words and meaning in a quest to exchange a tonic of cure all for one's wealth.
Greece will be just fine. They're not leaving the EU and will soon be given a deal from the IMF that they will accept. Russia/China should have moved in quicker. Too late now. Tsipras has been threarened by NATO to shut up and color. Guess his finance minister tucked tail and ran before the Jackals show up. Sad really.
Not so fast. what if Tsipras signs a deal and the 61% go apeshit and say that is not what we went to a referandum for!
I know that many might disagree but I feel that there is WAY TOO MUCH money out in the world today anyway.
This weekend I ventured out past my personal set limit of 25 miles from my hide out, all the way out to about 50 miles and the things I saw upset me for 2 days straight.
What used to be beautiful farmland and wonderful country is now a mass of shopping centers, convienent stores, restaurants, gas stations, pharmacy's, condos, hotels, car lots, etc. I was sickened to see it all. And to top it off, there were hundreds if not thousands of zombie looking creatures just walking around with bags in their hands.
And once I got to my buddies lakefront cabin I was sickened and heart broken even more so that I only stayed a couple hours. Mansions and houses so close together that you could't put a tool shed in beween them and everyone of them with toys littering the shoreline. Boats, seados, floating tramoplines, floating docks with slides, kayaks, balls, you name it. All around the 5 mile wide lake for as far as the eyes could see. What was once a beautiful body of water is now officially a shit hole.
All I could think of was this george collin video. https://youtu.be/nLRQvK2-iqQ
I am now back to my hideout and never want to leave my 25 mile limit again. I wouldn't be able to handle the pain twice.
They are encroaching on you. If the Banksters can hold off the implosion for a few more years, they will be right on your doorstep. within walking distance of your hideout, stealing your food.
It's true. You want space between you and the next guy? Too bad. Agenda 21 calls you "unsustainable." Your neighborhood must be "densified" with "mixed-use" multistorey ticky-tacks. You will place all your kitchen scraps in green bins, buy "smart" appliances for your "smart" meter, und you vill like eet.
wow another doomsday prediction from Phoenix Capital. What a surprize... Keep posting them, sooner or later you will be right.
Sorry to repeat myself, from previous posts, but this is a big reset - to circa 200 years ago in my estimation, and the winners will be the least bad losers.
This is an online community that looks at NUMBERS every day. Please drop the "Only 50 left" marketing charade that you put after every piece of research. It's getting stale.
I'll take all 50 copies.
"Call in the next 10 minutes and youll recieve FREE, a....."
Bidding starts at zero....
We are slipping into the great depression. Commodities are sinking. During the 30's depression there was no lack of anything EXCEPT money. My advice get into real cash in hand preferably the US dollar.
Absolutely correct. But also the buck - at some later point will collapse.
If you want to know who is winning - visit Greece or the history of the great depression or other majpr crisises: there are7were in majority no winners. Just losers.
Same for Europe and the whole West in coming years/decades.
At the end of dictatorships you tend to have major revolutions and often enough major wars. Either this way or that way. Revolutions mean blood and tears in the streets and mostly losers.
It's a matter of survival then - not of how you might become rich when SHTF.
To true those that survive will be the winners. I don't think there is any way to game this and win.
Liquidity is already leaving the markets.
First depression....then war.
Only 950 takers for the free pamphlet?
When will you learn Pheonix Capital, print 500 to create false demand!
Phoenix Capital guy: everything you write is probably logic- but markets have never been rational and have their own dynamics- so you wanna be right or clever?
your company strategy has been a total failure-markets are soaring for 7 years - you have been wrong 4 years!!!
You are not wrong for 1 -2 years!- 4 years!! That is elimination of capital if you are short!
So Dude - it doesnt matter if markets are crazy- your investment strategy has been losing alot ...
ofcourse we will see a huge correction in the future but you didnt adopt yourself to the Hft machines and specially to QE implemented by the central bankers!
you should be very disappointed ...!!! Still you have the guts to write same symphony for 4 years!!!
worst rock song ever
On the other hand - I have posted/explained today that I think within next 2-3 years Europe will be toast. As the EU bureaucrats have solved nothing and just added a lot of problems. Poeple across Europe are finally aware of that and they will vote them out again in the process of coming years. Just follow all election. Also smaller ones in bigger countries. You will notice loss after loss, election after election, country after country. The (ultra) lefts and (ultra) rights will win - and the EU whores/centrist are going to lose everything. Greece is just a starter. No Chance for Europe anymore to survive. All trust is gone. Based on the ugly and terrible facts EU government should have resigned - not Greece. But they are above the rules and above the laws. So it's in the poeples hands - and they will act, as there are still instincts left - and these instincts are telling them - that these poeple will be the reason for the worst depression to be seen in our lifetime. So much for Europe bringing pease and properity. It will be the reason for the biggest meltdown in history. Planetwide.
BTW I sold all my physical gold 2011 in September.
Now I'm going to buy back / averaging in within next couple of months.
Another Mahendra ... ???
Mahendra was singing EURUSD to parity since somewhen 2004/2005. It peaked 2008. Until 2014 it was sideways in between 1.6 and 1.4
Many lost tons and accounts du to that wrong call.
One should stop providing calls if one is consistently wrong. As it's nothing but irresponsibility. But greed know no limits and bounderies.
Thanks for that info ... 4 years on the wrong side. Explains it all.
"Fuck the EU."
...and the Japs, in fact let's nuke 'em again....and the EU..Yay, U.S.A, U.S.A, U.S.A...
...and if you disagree with me then you're a terrorist and I'm callin' the CPS to come and take your kids away!
Prepsite.org: A storm is coming http://www.prepsite.org/2015/07/a-storm-is-coming.html?spref=tw
www.onlinerichesunleashed.com Greece crisis a real concern
ZZZZzzzzzzzzzzzzzzzzzzzzzz..............
Japan has set themselves up on both sides of the trade which means they never lose, but they never win either. All these countries, led by the US, pretend they aren't bankrupt and they owe the debt to themselves, but they can only pretend till something comes along and begins a chaotic event.....