Jubilee Disasters Are Sinking Europe Fast As Italy Unravels And Deutsche Bank Collapses
- Jubilee Disasters Are Sinking Europe Fast As Italy Unravels And Deutsche Bank Collapses
by There is much going on in Europe and most of it very bad. When we add what’s going on in Europe to what’s happening in Britain, the US and China, we end up with a comprehensive portrait of a world plunging off a precipice.
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Of course if you’ve been visiting us regularly, you’re quite aware of the disasters of 2016. They are a continuation of 2015. We’ve been warning about it tirelessly for over a year now.
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I first realized what was on the way when I began researching Shemitah. There was a pattern of crashes and panics associated with Shemitah years going back for decades. And the same thing has occurred with Jubilee. We’re more than halfway through Jubilee 2016 now and anyone with eyes to see can tell that this is an unusually chaotic and volatile year – just as we predicted.
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In this article, we’ll focus on Europe’s challenges – and disasters. A lot of the unraveling is being triggered by problems in Italy and Germany.
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The country’s economic system is about to collapse along with its failed banking system which is so overloaded with debt that it can’t survive without a huge government bail out. Italy’s non-performing bank loans are over 20% of GDP. The country’s public debt is above 130% of GDP. An EU-approved plan earlier this year to restructure the banks has stalled.
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There’s talk now of balancing the budget with corporate tax hikes and also of setting up a “bad bank” that can remove the worst investments from the rest of the banking sector. But these actions need to be done quickly.
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They are considerably complicated by the EU’s authority over Italy and, not to mention, will not actually fix the problem. An increase in corporate tax hikes would further destroy the economy and major businesses would see decreases in sales and/or move out of the area. And a “bad bank” is essentially just an accounting gimmick to make things appear better but fixes nothing.
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The Italian government would like to provide funds to the banks without having investors share losses. But the EU now has bail-in rules that mandate investors take part of the losses. The EU’s presence while Italy struggles to salvage its sinking banks is reminiscent of the iceberg blocking the forward progression of the Titanic. If Italy doesn’t actually hit the iceberg, it may simply sink, and take the EU down with it. What Brexit hasn’t entirely accomplished yet (the ruination of the EU), Italy could.
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read more.
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