Posted on 11/26/2011 1:40:29 PM PST by SeekAndFind
As every major developed economy hits Bass's Keynesian Endgame, the status quo is set to change dramatically. Nowhere is this climax playing out louder than in Europe and the implicit solution of Germany-uber-alles (while seemingly inevitable though nevertheless lengthy in execution) is likely to not sit well with many of the EMU nations.
To wit, The Telegraph today reports that Britain's Foreign Office is advising its overseas embassies to draw up plans to help expats should the collapse of the Euro turn explosive. Almost incredibly, a senior minister has revealed that Britain is now planning on the basis that a euro collapse is matter of time.
The Telegraph: Prepare for riots in euro collapse, Foreign Office warns:
____________________________________________
British embassies in the eurozone have been told to draw up plans to help British expats through the collapse of the single currency, amid new fears for Italy and Spain.
As the Italian government struggled to borrow and Spain considered seeking an international bail-out, British ministers privately warned that the break-up of the euro, once almost unthinkable, is now increasingly plausible.
Diplomats are preparing to help Britons abroad through a banking collapse and even riots arising from the debt crisis.
The Treasury confirmed earlier this month that contingency planning for a collapse is now under way.
A senior minister has now revealed the extent of the Government’s concern, saying that Britain is now planning on the basis that a euro collapse is now just a matter of time.
“It’s in our interests that they keep playing for time because that gives us more time to prepare,” the minister told the Daily Telegraph.
Recent Foreign and Commonwealth Office instructions to embassies and consulates request contingency planning for extreme scenarios including rioting and social unrest.
Greece has seen several outbreaks of civil disorder as its government struggles with its huge debts. British officials think similar scenes cannot be ruled out in other nations if the euro collapses.
Diplomats have also been told to prepare to help tens of thousands of British citizens in eurozone countries with the consequences of a financial collapse that would leave them unable to access bank accounts or even withdraw cash.
Fuelling the fears of financial markets for the euro, reports in Madrid yesterday suggested that the new Popular Party government could seek a bail-out from either the European Union rescue fund or the International Monetary Fund.
There are also growing fears for Italy, whose new government was forced to pay record interest rates on new bonds issued yesterday.
The yield on new six-month loans was 6.5 per cent, nearly double last month’s rate. And the yield on outstanding two-year loans was 7.8 per cent, well above the level considered unsustainable.
Italy’s new government will have to sell more than EURO 30 billion of new bonds by the end of January to refinance its debts. Analysts say there is no guarantee that investors will buy all of those bonds, which could force Italy to default.
The Italian government yesterday said that in talks with German Chancellor Angela Merkel and French President Nicolas Sarkozy, Prime Minister Mario Monti had agreed that an Italian collapse “would inevitably be the end of the euro.”
The EU treaties that created the euro and set its membership rules contain no provision for members to leave, meaning any break-up would be disorderly and potentially chaotic.
If eurozone governments defaulted on their debts, the European banks that hold many of their bonds would risk collapse.
Some analysts say the shock waves of such an event would risk the collapse of the entire financial system, leaving banks unable to return money to retail depositors and destroying companies dependent on bank credit.
The Financial Services Authority this week issued a public warning to British banks to bolster their contingency plans for the break-up of the single currency.
Some economists believe that at worst, the outright collapse of the euro could reduce GDP in its member-states by up to half and trigger mass unemployment.
Analysts at UBS, an investment bank earlier this year warned that the most extreme consequences of a break-up include risks to basic property rights and the threat of civil disorder.
“When the unemployment consequences are factored in, it is virtually impossible to consider a break-up scenario without some serious social consequences,” UBS said.
The Euro and the EU project is another example of the elitists of this age slaming through their radical global agenda without a full and honest pulbic debate.
The media serves as their cheerleaders and they shout down anyone who disagrees with them as “extremist.” The modern European and American left are a curse on the whole planet. These technocrats don’t even have a clue as to how stupid and evil they are.
When everything is left in ruins, they will pick a scapegoat far away from themselves. I expect they will “progress” to pull a mass murdering campaign against a targeted enemy.
Another way of looking at it is all debts made under the Euro are null and void.
What will happen to the dollar when the US follows suit?
Good news for the dollar; time to be shorting the Euro and staying long in gold & silver.
The reaction to a breakdown of the USA should be different than other countries because the citizens here are armed.
They aren’t so much afraid of the law-abiding citizens with guns as they are of the welfare-clients rioting if their checks ever get cut off.
In Europe they could get away with mass murder again since most or all of the Euro-peons are disarmed. America is a different story. They can try but there are so many firearms here that it would be rather difficult to accomplish.
2012. One centralized bank. One world currency. I’ve seen predictions that the ‘banks’ are intentionally going to go bust to bring this about.
What will happen to the dollar when the US follows suit?
I’m not really sure, my crystal ball is awfully cloudy lately. What I will say is that ‘social inertia’ is a real phenomena in that once a society embarks on a course it takes an equal or stronger force to stop it or shift its direction.
So with that out there, I believe that society world wide is dissatisfied in ways that as a society they don’t really comprehend but as individuals they feel either instinctively or rationally. And where that is leading us is to world wide societal disruption. That may be War between nations but far more likely it will be civil war.
I see this happening in the Mid-east currently. Some of it is fomented internally some is externally but once that ball gets rolling it won’t stop until the participant or the people as a whole say so. And that traditionally will not happen until the pain has become to much to bear.
The elements are there world wide though and I feel it will happen and soon. The interesting thing to me is that I felt these same tensions ramping up in the 1970’s. I think that Ronald Reagan’s presidency caused those tensions to be released. How, I’m not really sure but I did feel it.
Now we are on the Cusp of it occurring again and the Presidential election is still a year out. I feel that this time the tensions will not have a chance to release and the Euro collapsing or something else just as big like a full-blown Mid-east War will be the trigger that causes the whole world to collapse in violence.
Personally I want to be wrong about this, but my honest and ethical side forces me to point it out.
To answer my own question, the Euro is at $1.3239 as of close on Friday, a seven week low. So, trending downward but nothing all that indicative of currency collapse thus far, as exchange rate.
All countries using the Euro still maintain a valuation against their previous currency valuation, even though none of the money is in circulation. I beleive that EUropean countries can very easily switch to Francs, Gilders, Marks, Lira, etc., and that when doing this they already have a market value assigned on a daily basis at which point to make the conversion.
comments on the article are a real eye opener. The storm is close.
I expect blood in the streets within a year.
If our economy/dollar collapses, rather than civil war, we would be wise to split the nation in two: one free and independent and one global and socialist.
The tension in the US can not be reconciled because if we are socialist, freedom is dead and if we are free, socialism is dead. The mixture of the two has led to the collapse of the economy, society and the constitution. It has led our people into hate filled tribalism.
As I see, the Federal government has already named it’s enemy in the civil war by which citizens it classifies as “domestic terrorists.” That would be the American-Americans.
Worth repeating.
More propaganda from a suck-up for globalism. In the USA, we have plenty of natural resources for rising from the contemporary wrongness and idiocy, when we’re willing to do some real work (manufacturing). Ignore Europe. Starve the beast. Bring it on.
If our economy/dollar collapses, rather than civil war, we would be wise to split the nation in two: one free and independent and one global and socialist.
As an idea it’s not a bad one. Implementation would be impossible. Both types of people are pretty much intermingled with a broad dividing line of Urban vs Suburban/rural.
Don't forget the welfare-clients are armed too. - tom
“If our economy/dollar collapses, rather than civil war, we would be wise to split the nation in two: one free and independent and one global and socialist.”
The problem is this was the original idea. Federal govern with very specific powers and a charge to protect the nation, then the rest was 13 individual nations left to their own accord for the most part and we see how this turned out, Why not just return to the founding principles?
I would modify those last few words to this: "it would be impossible to accomplish." I say this because the American people are largely composed of patriots who would not surrender to a dictator, and they are--as you point out, armed--and there are many men who have military experience, unlike the Europeans. They would readily set up guerrila outfits and fight. And win.
Why not just return to the founding principles?
Because we have half a nation of communists and socialists who want a strong, all powerful centralized government that redistributes wealth and centrally controls the economy. And we have half who want a sovereign nation that is for American freedom. There is nothing but the roadkill of a collapsed economy and tribalism in the middle.
There is no reconciling the two ideals - constitutional freedom and Marxism and we should stop pretending we can compromise in between. Marxists have “progressively” killed the constitution and the economy and the Marxists will continue wrecking the people and nation they despise until it totally collapses and they feed their blood lust in a purge.
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