- Let me assure you that the FedRes and other Illuminist central banks (and their politician puppets) will create a massive amount of money out of thin air to bail out all their Illuminist banks. It will be QE to infinity! This financial/banking collapse is intentional. It allows Illuminist banksters to consolidate the banking system into fewer but larger Illuminist banks! It is a controlled demolition, accumulation / centralization of power, review situation, repeat process … until finally the plug will be pulled.
- The whole system is coming down. It will start in the PIIGS, radiate across Europe, UK, Japan … and finally USA. All fiat currencies are scheduled for destruction. How do you get countries all over the world to abandon their national currencies and accept the coming One World Currency? By destroying all fiat currencies via hyper-inflation! (emphasis mine)
WHAT THE EURO CRISIS MEANS FOR TAXPAYERS AND THE U.S. ECONOMY
by Anthony B. Sanders
Distinguished Professor of Real Estate Finance, George Mason University, and Senior Scholar, Mercatus Center at George Mason University
United States House Committee on Oversight and Government Reform Subcommittee on TARP, Financial Services and Bailouts of Public and Private Programs
THE EURO CRISIS
The Eurozone is teetering on collapse, and this has been decades in the making. The cause of their problems is
1) excessive government spending leading to
2) excessive government debt coupled with
3) slow GDP growth.
The core European Union countries (i.e., Germany, France, Italy, Spain, the Netherlands, Belgium, Austria, Greece, and Portugal) are expected to have real GDP growth of 1.3% for 2012 and unemployment in 2012 of 9.9% (see Figures 1 and 2). The IMF also produced a longer term real GDP forecast. I have outlined growth for France, Germany, Italy and Spain, and they are all projected to have real GDP growth in 2016 of less than 2% (actually, France is forecast to barely break 2%).
At the same time, the European core countries have excessively high government debt-to-GDP ratios (see Figure 3), with Greece at 145% and Italy at 118.4% government debt-to-GDP. The other Eurozone nations have government debt-to-GDP ratios in excess of 80%.
If we look at household and financial debt in addition to government debt, the United Kingdom’s (U.K.) debt-to-GDP ratio exceeds 900%. Japan is over 600% and Europe has almost 500% debt-to-GDP. The U.S. is over 300%. In summary, Europe, Japan, and the U.S. are drowning in debt. And a recent article from economists at the European Central Bank (ECB) finds:
“…we analyse a wide set of 108 countries composed of both developed and emerging and developing countries, using a long time span running from 1970-2008, and employing different proxies for government size… Our results show a significant negative effect of the size of government on growth. …Interestingly, government consumption is consistently detrimental to output growth irrespective of the country sample considered (OECD, emerging and developing countries).”
The European Union will unify, break up, or downsize. But regardless of what option they choose, they still have too much spending and debt relative to their ability to pay for it: GDP growth. But additional debt is not the answer. It is the problem.
… for more on this click here!