Cue the dumb look.
Banks and other large holders of bonds worth far less than their face value will bring all of the power they can muster to somehow, someway get the EU to print the money to prop up the banks and socialize the hidden losses associated with massive sovereign debts.
One way or the other, the money WILL get printed, probably with some help from the US Federal Reserve through the IMF.
The continuing run on European banks by depositors, and a refusal by current bond holders to roll over maturing debt mean that the amount of money that must be created out of thin air is growing exponentially....
We are now seeing more clearly that the world is being run by the largest of the large banks. “Screw the people.” This isn’t socialism, it is Fascism, the alliance of government and favored financial/business interests.
“Is the EU and the euro in crisis?”
Do animals of the ursine persuasion deposit fecal matter in forested lands?
The linked podcast below gives a good update on the Euro status.
First you have to accept the disclosure statement page (link at bottom of the page that comes up), then on the next page, down under Global Insights, listen to the 11/05/2011 show. The only question is “for how long can the Ponzi continue?”
http://www.gordontlong.com/disclosure.asp?dest=GI
“Aren’t the big US investment banks carrying trillions
of dollars of unhedged exposure? Quick answer: Hell Yeah!”
“The top four banks with the most derivatives activity hold 94% of all derivatives, while the largest 25 banks account for nearly 100% of all contracts. Overall, the US banks derivative exposure is $249 trillion and is more than four folds of World’s GDP at $58 trillion.”
So, what does this mean? It means that the US banks are stuffed with sovereign bonds of the PIIGS that are blowing up. So we have to save Europe to save the TBTJ banks in the US.
That is it in a nutshell.
Europe has an out of control Spending problem. It doesn’t help that it killed much of its economy off with green regulation, but even without that it is going to collapse.