There is a dire collapse taking place below the radar screens of the public. The financial condition of the fellow states of a currency union is the most critical component of a common union currency’s value today. It is the challenged financial integrity of member states and their constituents, the cities, towns and villages that make up the state where risk is most prevalent.
The municipal bond market is today in a second freefall as such entities now are failing in paying their obligations to suppliers and services. In many instances the overdue payments are 6 to 9 months in arrears.
Simple common sense tells you that if suppliers and servicers cannot be paid, you cannot meet your interest due obligation to the bond funding upon which these constituents of the state depend.
Fancy financial manoeuvres have been utilized at year-end to camouflage this growing and now transparent risk of bankruptcy. There is no difference between the use of OTC derivatives to camouflage Greece’s financial weakness and the present procedures of fancy bookkeeping on behalf of the 40 now identified states of the United States.
Worst of all is that these municipalities are now in line at the gates of the Barbarians that actually caused all of this. They are seeking assistance from the very same international investment banks that are the OTC derivative manufactures and distributors of that singular cause of all the Western world monetary suffering. They are the chickens walking into the fox’s lair that can only means their bones will be cleaned of flesh.
The momentum decline of the euro in operation short of the euro, named "Shark Feed," is the best precursor of the " Shark Feed" being a terminal attack on the US dollar very soon.
Gold is the only insurance against this unprecedented Western world financial malaise. It will rise in price to $1650 and beyond.
Jim in Africa