Source:
The International Forecaster
Bob Chapman
As
Chancellor Merkel and PM Sarkozy search for a solution that doesn’t
exist they continue to lose credibility. Nothing of substance has been
agreed upon that is legal and can be implemented. At the IMF Christina
LeGarde is frantically waving her arms like a cheerleader telling anyone
that will listen that if the six sovereigns in financial trouble are
not aided the euro will fail and peace in Europe will disappear. The
elitists are frantic because they cannot find a solution. LeGarde says
without help there will be ten years of depression. She obviously hasn’t
done her homework. Try 30 or more years. Sarkozy, Merkel and Jans
Weidmann council member of the ECB has said the ECB cannot bail out
governments by printing money. He is also head of the Bundesbank and
said a key lesson of what is being proposed is the hyperinflation in
Weimer Republic, which followed WWI. Over in Italy PM Berlusconi, who
looks and acts like Benito Mussolini has been unseated and as a result
the Italian bond market is on the edge of collapse. There is big
pressure downward in stock and bond markets as a result and the US
Treasury again attacks gold and silver hoping they can keep gold from
breaking about $1,800. The PPT’s ability to achieve this is more than
questionable.
At
Cannes PM Sarkozy and President Obama discuss what a liar Israel’s PM
Netanyahu is. Their candor was accidentally picked up by a supposedly
muted speaker. What is now realized is that euro zone government bonds
contain unexpected credit risks. All the European politicians and
bureaucrats want to save the euro, but their promises and solutions are
not worth the paper they are written on. They are so believable that
China won’t lend them money. These characters have been kicking the can
down the road since last spring with little or no long-term solutions,
and no solutions to affect a recovery and create jobs. Austerity has
replaced growth and that is expediting a failing economy, even in
Germany. If economies don’t grow tax receipts fall and the ability to
service debt is impaired. Big euro zone banks are broke just as their
counterparts in NYC are. As this proceeds we ask how long can the ECB
buy Italian and Spanish bonds?
In
Greece a coalition has been made and Mr. Samaras has shown his true
colors by backing Trilateral-Bilderberg Lucas Papademos, as interim PM.
We hope Greek citizens realize that Papademos will sell them out. It is
only a matter of when. The debt deal will probably be ratified, but at
what price? Will it bring revolution or a coup? Who knows, but under the
circumstances anything goes. 60% to 65% of Greeks oppose the bailout,
but 71% want to stay in the euro, which is impossible.
Source: Corbett Report
