Martin D. Weiss: New Danger of a Systemic Collapse!

• Get out of fiat currencies, paper assets (except for gold/silver mining shares) and buy physical gold/silver. Ignore all the bullion bankster manipulations on the Crimex. The system is coming down in 2012 !
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  New Danger of a Systemic Collapse!
  by Martin D. Weiss, http://www.moneyandmarkets.com/ 
  … Just this year alone,  European authorities have held 19 high-level emergency meetings … proposed  dozens of rescue packages … and delivered an endless stream of promises. Since the crisis began, we’ve  seen four PIIGS bailouts (Greece twice, Ireland and Portugal) … the creation  of two European bailout funds (ESFS and ESM) … plus countless central bank interventions  to buy sinking PIIGS bonds. What have they gained  from all this? Nothing! In fact …
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  The Danger  of Systemic Collapse Is Far Greater Today Than at Almost Any Time Since the Debt Crisis Began
  The European Union is the biggest economy  in the world — close to $15 trillion in GDP. When it sinks, so does the U.S.  and much of the world. European banks are roughly THREE times  larger than U.S. banks. When they’re forced to cut their lending drastically,  global capital shortages hit hard.
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  Most frightening of all, the U.S. has  committed most of the same mistakes as Europe — the same kind of massive debts,  deficits, and failed bailouts. And now the European Union is crumbling, threatening a systemic collapse far larger than the near meltdown witnessed in the wake of the Lehman Brothers collapse in 2008.
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  My Debt  Danger Index
  How do I know a  dangerous new meltdown is so likely? Because that’s what the  objective data proves. In fact, to measure and track this danger as accurately  as possible, I’ve created a new barometer — my Debt Danger Index for Europe. This index is based on the total cost of insuring against sovereign debt defaults in each of five key countries — Belgium, France, Germany, Italy, and Spain.
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  So it directly reflects  the danger of European debt disasters, regardless of the sentiment in the stock  market. Reason: Unlike stock  market investors, sellers of these specialized insurance contracts see through  the hype and hoopla of government bailouts and rescues.
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  If the danger of debt  default is rising, they charge a higher premium for the insurance and my index goes up.  If the danger of default is subsiding, they charge a lower premium and the index goes down.
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  Now, just look at how my  Debt Danger Index has surged: (see top of post)
  Four years ago, before  the U.S. housing bust and the Greek debt crisis, the sovereign debts of large  European countries were considered beyond reproach. Default was unthinkable.
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  And any talk of  wholesale collapse was considered science fiction. So the cost of insuring against  default was a pittance:
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  To insure  a $50-million portfolio — allocated equally among sovereign bonds of Belgium,  France, Germany, Italy, and Spain — the total cost was a meager $28,649 per  year.
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  Care to venture a guess as  to how much it costs now?
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  The cost  of insuring the same $50-million portfolio today is a whopping $2,258,200 per year, or 78.8 times  more!
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  In other words, based on  the market for these insurance contracts, the danger of a wholesale European  debt disaster — with the potential to melt down the global banking system — is  now nearly 79 times greater today than it was four years ago.
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  … for more click here!

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