- Desperate times call for desperate measures, especially
for troubled Eurozone economies.
- Trapped under euro straightjacket rules, everything tried
so far failed, despite hooplas announcing each new plan.
- On December 21, the big overnight news highlighted demand
for long-dated European Central Banks (ECB) loans drawing 489 billion euros,
more than expected. A total of 523 banks borrowed money. In response, Capital
Economics' chief European economist Jonathan Loynes said:
- "While this might help to address recent signs of
renewed tensions in credit markets and support bank lending, we remain
skeptical of the idea that the operation will ease the sovereign debt crisis
as banks use the funds to purchase large volumes of peripheral government
- "Does it solve problems? Clearly not. Italy and
Spain have serious deficits," said Rathbone Brothers fund manager
- FXPro Group's chief economist Simon Smith said "(m)ore
important than the size of the (injection) is what banks do with this cash."
Don't expect added lending to follow or other actions to ease crisis conditions.
- According to Royal Bank of Scotland's chief economist
Jazques Cailloux, "it's not going to bring about a turning point in
this crisis." Societe Generale's Sebastien Galy agreed in a statement
highlighting Europe's unresolved "deep-seated" problems.
- In fact, overnight ECB loans show tight interbank lending
problems. They also reveal how banks are pressured to buy sovereign government
bonds in an attempt to lower rates at a time their own solvency is shaky.
- Injecting more liquidity instead of addressing problems
responsibly does little more than provide a short-lived holiday season
sugar rush. It won't last as major problems are unresolved and worsening.
- Most of all, European banking is in crisis at a time
six or more troubled Eurozone countries teeter on collapse.
- So far, yields in Italy and Spain are up, not down. Moreover,
banks are deleveraging to reduce, not expand, their balance sheets. Given
how much remains unresolved, another EU summit is planned for January 30,
despite 19 previous failed plans.
- In these troubled times, S&P rates only 17 countries
AAA out of 127 they cover. Of these, six are on negative credit watch so
only 11, in fact, are AAA. It's the lowest read since 1994.
- Moreover, since the mid-1970s, never have so many AAA
countries been viewed negatively. It suggests others joining them
in 2012 given the fragility of global economies.
- Thinking outside the box, Progressive Radio News Hour
regular/longtime market insider Bob Chapman stays way ahead of key economic
and financial breaking news. He also reports major market insights media
scoundrels and politicians never discuss.
- For years, he warned of impending trouble. It's unfolding
unresolved in real time. "Behind the scenes," he says, "elitists
are plotting and planning on how to extricate themselves from (today's)
- Six troubled Eurozone countries need help, but "from
whom?" In addition, France faces "a possible two level"
debt rating lowering, and Germany's not as healthy as thought. "Could
it be that (both countries can't) repay their debts?"
- Eurozone policies have been wrongheaded for years. Bailing
out six sovereigns can't be done. Their only option is defaulting, exiting
Eurozone rules, and regaining their ability to conduct monetary and fiscal
- Market manipulation alone kept world markets from cratering.
It can only continue so long. Throwing good money after bad corrupts it
all. Much of world faces recession and depression.
- Eurozone countries are deep into worsening recessions.
"What we have is a European standoff and the possibility that Germany
may go its own way." Daily, it grows more likely.
- "Germany is sick and tired of getting" short-changed,
and around two-thirds of Germans "want out, and that may very well
happen though few see that possibility."
- At the same time, rules are being circumvented for a
new IMF bailout program, outside its mandate. At issue, saving a continent,
not individual nations.
- The main question is who'll bail out America? No one
once debt levels exceed reckless Fed money creating tolerance or Congress
intervenes directly or indirectly to stop it.
- It's why Chapman sees nations agreeing to "revalue
and devalue all currencies against one another and have a multinational
default and debt settlement. That means everyone" gets a haircut except
gold and silver investors.
- Elitists know they can only monetize debt so long before
risking hyperinflation. That's why "there will be an end game."
Unlimited money and credit expansion assures collapse. Purging today's
excesses is crucial. Money manipulators won't do it. Controlling it empowers
- At the same time, dangerously high debt levels threaten
economies with collapse. Troubled Greece may go first. Other Eurozone countries
may follow. Nearly $1 trillion of unsecured bank debt must be rolled over
next year. As a result, hoarding cash will be a priority for it.
- France, Germany, Ireland, Spain and Italy have one-third
to one-half of their debt to refinance.
- Enormous amounts are involved. On average, eight major
European countries have 19% of their debt to roll over. Unfunded liabilities
are excluded. These countries "cannot raise this kind of money so
we expect to see perhaps as many as six leave the euro."
- If so, the currency may be history. "In fact, in
chain reaction all Europe could financially collapse...." If so, America,
China, Japan, and others will follow.
- Festering debt isn't being relieved. European interest
rates are rising. With them come new problems, including public anger getting
- Government crackdowns and internment camps await dissenters
challenging the system. Blackwater and other paramilitaries may patrol
city streets. Grim holiday season tidings may precede far greater trouble
- Gerald Celente predicts it.
- Celente's Top 12 Trends in 2012
- With deep trouble festering, Celente warns of worse next
year, including his top megatrend prediction:
- (1) Major central banks and world governments have economic
martial law plans drawn. Military martial law may follow.
- (2) By authorizing indefinite military detentions of
US citizens and giving presidents power to be judge, jury and executioner,
Congress enacted "Battlefield America."
- (3) In his Trends 2000 book, Celente predicted Wall Street
protests would erupt and spread nationwide early in the new millennium.
"The 'Occtupy' is now upon us, and it is like nothing history has
- (4) Festering socio-economic/financial/geopolitical trends
will climax next year. "Some will arrive with a big bang and others
less dramatically....but no less consequentially."
- (5) "Democracy is dead." Technocrats are taking
over. Bankers are replacing elected officials. Media scoundrels won't explain
this "merger of state and corporate powers" or call it by its
proper name: "Fascism."
- (6) Financial scoundrels allied with corrupt politicians
established globalization rules. Committed citizens must "un-sell"
it. " 'Repatriate! Repatriate!' will pit the creative instincts of
(ordinary people) against the repressive monopoly of the multinationals."
- (7) "Winds of political change" provide previously
unimaginable political options globally, including: "radical decentralization,
Internet-based direct democracy, secession," nonviolent balkanizations,
and possible "new world 'disorder.' "
- (8) In times of socio-economic collapse, "New Millennium
survivalists are, or will be, thinking about" ways to escape what's
coming. Celente highlights his "3 G's: Gold, Guns and a Getaway plan."
- (9) In 2012, Internet freedom will erode. Governments
will propose " 'authentication technology,' requiring Internet users
to present the equivalent of a driver's license and/or bill of health to
navigate cyberspace." Government control will end another freedom
en route to shutting them all down.
- (10) People everywhere are "disgusted with 'politics
as usual.' " They want workable alternative change. Representative
democracy never worked. Politicians serve monied, not popular interests.
Instituting direct democracy is vital. It's the "only viable"
way to replace back room deal making with popular referenda people power.
- Victor Hugo said, "There is one thing stronger than
all the armies in the world, and that is an idea whose time has come."
- The time is now. The name of the game is changing what
never worked and won't now. Saving humanity depends on it.
- (11) Dozens of projects are underway, exploring safer,
cleaner alternative energy sources, including "competitively priced
liquid fuels distilled from natural sources. Plan to start saying goodbye
to conventional liquid fuels."
- (12) " 'Affordable sophistication'....old time quality....will
inspire products, fashion, music, the fine arts and entertainment at all
- In 2012, expect China's "May you live in interesting
times" curse to replace earlier Goldilocks days. Forewarned is forearmed.
- Stephen Lendman lives in Chicago and can be reached at
- Also visit his blog site at sjlendman.blogspot.com and
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Radio News Hour on the Progressive Radio Network Thursdays at 10AM US Central
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