Saturday, July 23, 2011

Euro zone's debt woes postponed but not forgotten

barrie mckenna

The nationalization of a major Spanish bank and the first euro zone debt default underscore the major challenges still facing the region even after this week’s major aid package for Greece.

European Union leaders saved Greece from financial collapse Thursday with a plan to pump €109-billion ($148-billion) into the country and bolster a European bailout fund.

For now, the deal appears to have encouraged investors and stopped a run on European sovereign bonds. Long-suffering Greek bonds soared Friday, while European stocks gained.

But the danger of renewed bouts of financial stress is expected to continue for months. And over the long haul, Europe’s still crippling debt problems will stunt economic growth as the poorer countries face years of painful austerity and the wealthier ones, such as Germany and France, pay the price of propping up their weaker neighbours.


  1. " as the poorer countries face years of painful austerity and the wealthier ones, such as Germany and France, pay the price of propping up their weaker neighbours."

    Would more sensibly read:

    "As the Euro collective financial elite, the banksters and their central bankers ,impose the "Austerity" cost on the debt enslaved Greeks and indeed on all europeans in the EU Euro zone of propping up and paying for the losses of the intenational banksters thereby saving the €uro system of sovereign nation debt enslavement.

    Spreading The pain to a wider more wealthy
    captured taxpayer base through €uro money printing.

    This is a duplication of the the American Central bankers/IMF /world bank bailout model for "saving the system' by socialising and subsisdising the continuing , out of control,
    losses of the insolvent/bankrupt financial sector.

  2. 9:05 your right. But I give up on anybody fixing the problem. The world's financial system will implode, it's a question of how long can they keep kicking the can down the road. I decided that this is a good thing as it gives people plenty of time to prepare. I'm preparing by buying and storing gold and silver. I know you can't eat gold and silver but I don't believe it will come to that. I believe there will be interruptions in the delivery of gold or power or fuel but no more.
    England was prior to maybe 1950, the financial world power just like the U.S. is now. We're going to lose that status and become like England. Nobody starved to death. It didn't turn into a third world nation. People can still become and live wealthy.
    Someday, I believe I will be able to sell the gold and silver I bought in today's dollars for a new currency and save myself from the 30-50% haircut others will have to take. So the longer they put off the inevitable the longer I have to prepare.
    What's everybody's thoughts on my thinking?

  3. Well 7:34, you may be absolutely correct. The thing is, in order to eventually be able to cash in your gold for its full value (it will take a while for a new system to be set up) you will have survive until then.

    I don't know your specific situation, but I can tell you this, there will be a LOT of crime between now and then. Are you prepared for that? Violent crime like what is going on in Mexico perhaps. Riots, looting, kidnappings etc.

    Have you looked at your security situation? Have you researched how bad it can get and what your vulnerabilities are? Are you keeping your gold and silver in a safe deposit box or is it hidden elsewhere? Will the bank seize your deposit box? Maybe, maybe not.

    What is your food situation? You'd better stock up BIG TIME. Don't forget water. Water is more valuable than anything and supplies can get disrupted. Will the police force continue working after the collapse? Will the water department? They may have their own problems to deal with at home.

    There are different levels of collapse. Prepare for them ALL.

    -Not Sam

  4. 7:34, I'll add something to my previous post:

    Yes, you'll save yourself a haircut by having precious metals and it is a GREAT store of wealth. But, as I mentioned, you'll need to survive until you can cash them in. It may take years to stabilize. We're looking at a total global financial collapse here. This is uncharted territory.

    So, my point is, Precious Metals are not the ONLY store of wealth. GOODS are also an excellent store. By goods, I mean supplies and other items that you will need and want during the coming years to make your life comfortable.

    Prices are about to skyrocket on almost everything, not just precious metals. Therefor, consider everything you see out there right now to be "on sale" compared to what they will cost. Don't wait until the collapse to buy what you need. Otherwise, you'll have to be cashing in your PMs prematurely in order to buy the necessities- if you can even find them. You can also use your excess supplies to barter for things that you didn't think you'd need, or items you can't store long-term like fresh milk and eggs if you are in the country.

    My main point: Have a balanced approach in your preparedness.

    -Not Sam


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