The current European debt crisis likely will not end until the euro collapses as a currency and takes the entire European Union with it, said Dennis Gartman, hedge fund manager and author of "The Gartman Letter."
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Louisa Gouliamaki | AFP | Getty Images Protestors escape tear gas fired by policemen in Athens. |
"I think the whole thing will go down to defeat, the whole thing will eventually unravel," Gartman said in an interview with CNBC.com.
Gartman said he doesn't have a specific timetable for how long it will take for the collapse of the 17-year-old EU, but said, "it doesn't look good."
The debt problems continued to escalate Wednesday as Greek citizens rioted in the streets over proposed austerity measures that would be required for any rescue plan to gain approval.
At the same time, Moody's warned that it might downgrade the debt for Portugal, accelerating worries that Greece's unremitting debt worries could spread across the continent.
Gartman holds the following long positions: 15 percent gold; 10 percent silver, and 15 percent each to Canadian and Australian dollars; he is short 15 percent each in euros, pounds and yen.
The chaos was enough for Gartman to advise US investors to get out of the stock market.
revolution is coming. many governments around the world will fall, including the U.S.
ReplyDeletewe saw Iceland and Kyrgyzstan governments fell.
Downfall of the stock market the last few days is mainly caused by hedgefunds and large investors who are going short.
ReplyDeleteThe power of those people is unbelievable. Go short, spread rumors and collect.
The euro will survive this and political backing of the currency will be improved following the Greek issue.
10:59 Such an authoritative tone...I don't believe you...credentials?
ReplyDeleteHopefully you are smarter than Bernanke, Geithner and Co. who said in 2005 that there was no housing bubble.
The Greek tragedy is perfectly reflected in one of my favourite quotes from Ernest Hemingway's novel "The Sun Also Rises":
ReplyDelete"How did you go bankrupt?" Bill asked.
"Two ways," Mike said. "Gradually and then suddenly."
Greek morality plays had two main forms, Tragedy and Comedy . Often the tragedies were farcical.
ReplyDeleteThose whom the gods wish to destroy they first make crazy.The Greek tragedy is only matched by the American Comedy .
And what a comedy it is !Casino capitalism, derivative bets on debts and the hopes for
continuation of the fiat paper Dollar Hegemony. The farce of money printing of profits and corruption to prop up imploding Ponzis and property bubbles as the cost of militarism and the falling rate of profit caught up with U.S and rich world capitalism . Credit supply dried up and replaced by paper printing.
But, Unproductive of real Profit for capital The US Cannot grow its way out of the mess.
The American Comedy is that the brain dead Americans have Their head stuck up their own superior A** in Ideological denial and religious Faith in capitalist automatic “recovery “ Via the strength of the mighty Dollar.
They cannot see that the Greek and € Euro Tragedy is their own bankrupt $ future staring them in the face and about to kick them in their butt . As paying out of the derivative bets by Banksters ,Hedgies and the cost of paying off the rich bondholders is transferring their accumulated assets to the rich.Now looting Treasury and the economy after a financial coup.
That’s a US comedy of capitalism .
The title of the comedy is “Recovery”
The stars of the play include the helicopter pilot "sober" Ben as hero arned with a printing press , Backed my The former CIA agent and man with no past Barry As the High preist,tiny Tim as the finance Vizier ,assorted corrupt Shylocks doing "gods Work" and a supportative crowd forming the Chorus, chanting "Yes we can.Have Faith in Amerika, stick together and do not be anarchists arming youself with Gold and Guns as protection from other looting Goons in the future."
Don't kid yourselves, the dollar might be toast, but it will not be toast for quite some time yet. The Euro on the other hand.....
ReplyDeleteIn one hilarious patriotic /pathetic act in the comedy Homer and Bart representing brainwashed americans Write on the blackboard 500 times on instuction from the high Priest Teacher Mr Barry on the faith that binds America . “The spirit of a nation“.
ReplyDeleteMy Head is not up my a** I am not it denial . Recovery is on the way the mighty dollar is strong and property values never fall and Ponzis last forever or at least a few more years.
AND
. Don't kid yourselves, the dollar might be toast, but it will not be toast for quite some time yet. The Euro on the other hand.....
Don't kid yourselves, the dollar might be toast, but it will not be toast for quite some time yet. The Euro on the other hand.....
Don't kid yourselves, the dollar might be toast, but it will not be toast for quite some time yet. The Euro on the other hand.....
I am a simple man and not an economist. I pay my bills, try to keep debt is check. I only have one question: Where does the Fed get all this money to keep bailing people out? When I write checks, I have to have money in my account to back it up. When the Fed writes checks, what backs that up? Nothing? Can they keep doing that forever?
ReplyDelete"When the Fed writes checks, what backs that up? Nothing? Can they keep doing that forever?'
ReplyDeleteBingo- we have a winner!
You just proven yourself smarter than 95% of the populace.
The answer is: No, they can't. The time will come (maybe soon, maybe a few years down the road) when the US will be totally bankrupt just like Greece, but unfortunaely no one will be big enough to bail us out, even if they wanted to. Which they don't.
When the treasury can't roll over their short term debt, it'll be game over.
ReplyDeleteSovereign Default.
At that time all checks from the Feds will cease. Anarchy will explode everywhere. Martial Law will be declared. 700 FEMA camps will open for bidness.
So JF, here's my simple man's take. I think I'm beginning to understand here. US taxpayer is responsible for Treasury debt. USTreasury has to have enough cash flow from our tax payments to them to pay the FED what UST owes on short term debt.
ReplyDeleteOn the other hand, the FED borrows gobs of cash to Goldman, JP Morgan at almost 0% interest. GS & JPM then buy Treasury notes for a 3% yield. Free money and constant cashflow for them. Bonuses and strengthend cash/investment position for them. Bank stocks then become most of the volume in the DOW and thus the DOW is artificially high.
US Treasury (meaning US taxpayer) has to pay GS & JPM the 3% yield as they redeem the T notes. So they are constantly winning and US taxpayer bill just grows. Is this a correct assessment or am I missing something?
Isn't it strange how with the last revolution, we didn't have the internet to communicate with ANYONE around the world? to exchange idea's and give out information on whats coming. This may be a pointless comment, but it hit me that this will be the first revolution that we are globally connected. :P hmm.
ReplyDeleteWow, what a day. The whole investment sentiment being shaken from today's big drop and the EU currency issue. Man, I'll a pack of cigarette just to clear my head over how things turning from all good and recovery to the sky's falling. At least i got some gold and silver and my cigarette to keep my mind at peace. (just need to get more ammo and food)
ReplyDeleteGreece debt problems pale in comparison to the trillions of dollars of debt that must be refinanced and issued now and in the coming years in the USA. Greece represents about 3% of the Euro GDP and the media is flashing Greek debt troubles today across TV and internet screens! The USA propaganda machine is trying to ruin the Euro and have world investors flee to buy USA treasuries. The Federal Reserve stopped their purchase of treasuries recently and now the private world has to come in and buy all the refinanced/new USA debt at super low interest rates. So what happens..use the controlled media to slam the Euro and save the Dollar.
ReplyDeleteAnd the only way out of this S#@tstorm is to start another war. "All together now, Duck and Cover".
ReplyDeletehttp://www.youtube.com/watch?v=u1MQ4eyg6U4
What has caused this Global Financial Problem? I spent 30 years of my life working at Rockwell International as an Industrial Engineer and I want tell you where I think the real Problem lays.
ReplyDeleteAll of these countries that are on the way to Bankruptcy have one thing in common. They all have large International Trade Deficits. They all have high unemployment and they are buying everything they use from another country instead of providing the jobs to their own people. In other words they are transferring all their country wealth to another country.
They all use the EURO as their Currency and that presents a major problem. When you have all of the European Countries (EU) tied to the same currency and one or two countries are forced into Bankruptcy. Then they could very well pull all of the other countries down too. However, before they joined the EU, each country had its own Currency and when they got into financial problems they could devalue the Currency of that country. That is exactly why the EURO is under pressure and falling fast.
This is exactly what is causing the high unemployment in the USA too. The reason we have escape this fate up until now is that the USA was such a wealthy Country. But, that wealth is dwindling extremely fast, so watch out below.
Trust me these Politicians will end up bankrupting the USA in the end. Then the Super Wealthy can step in and buy everything we own for pennies on the dollar. Most Americans are too stupid to see what is happening to them and so they do not want talk about it.
Well, this is one problem that can only be solved if they do not PULL OUT OF NAFTA and WTO because you can never get out of a DEPRESSION unless you create good high paying jobs for the middle class American workers.
Below is the Status of their Annual Trade Balance of European Union Member States for the year of 2008.
Germany=$267,100,000,000--2008est.
Netherlands=$47,000,000,000--2008est.
Sweden$35,220,000,000--2008est.
Austria=$10,630,000,000--2008est.
Finland=$10,630,000,000--2008est.
Denmark=$4,333,000,000--2008est.
Belgium=$3,972,000,000--2008est.
Luxembourg=$3,186,000,000--2008est.
___________________________________
$ 382,071,000,000 = Yearly Positive Trade Balance for the year of 2008 for all the EU States.
===================================
Spain= $-152,500,000,000--2008est.
UK= $-72,540,000,000--2008est.
Italy= $-68,820,000,0002008est.
France= $-47,270,000,000--2008est.
Greece= $-36,260,000,0002008est.
Poland= $-29,510,000,000--2008est.
Romania=$-28,030,000,000—2008est.
Portugal=$-23,970,000,000—2008--est.
Bulgaria=$-12,540,000,000--2008est.
Hungary= $-8,557,000,000--2008est.
IrishRepublic=$-8,621,000,000--2008est.
Lithuania=$-6,775,000,000--2008est.
Czech-Republic=$-6,460,000,000--2008est.
Slovakia=$-5,359,000,000--2008est.
Latvia= $-5,126,000,000--2008est.
Slovenia= $-3,706,000,000--2008est.
Estonia= $-3,037,000,000--2008est.
Cyprus= $-2,609,000,000--2008est.
Malta= $- 538,000,000--2008est.
_________________________________
$-522,228,000,000 = Yearly Negative Trade Balance for the year of 2008 for all the EU States.
==================================
$-522,228,000,000 = Total Yearly Negative Trade Balance for the year of 2008 for all the EU States.
$ 382,071,000,000 = Total Yearly Positive Trade Balance for the year of 2008 for all the EU States.
____________________________________
$-140,157,000,000 = Net yearly Negative Trade Balance for the year of 2008 for all States.
========================================
The United States has the Largest Annual Negative Trade Balance than any country in the World of:. $ -568,800,000,000 2008 est. Yearly Negative Trade Balance.
The United States is in big trouble and on the way to BANKRUPTCY TOO if they do not pull out of NAFTA and the WTO soon.
SO MOTE IT BE..