Greece, Ireland, Portugal, Spain, what is wrong

The Euro is a way for the 'richer' countries to extract value from the poorer countries.
It isn't a normal fiat currency.

Nigel Farage gives a nice speech to describe the situation that has been created.

A journalist FINALLY gets tough

There are so few examples of journalists being tenacious with politicians and other people in positions to ask the tough questions to protect the interest of it's citizens.

The  Irish journalist Vincent Browne is tenacious and shrewd.  He  was able to avoid the tactic of microphone change once his question was asked.  The problem is there should be an army of journalists asking tough questions.  But of course, I see so rare an occasion of tough journalism, that over the years I have only a handful of examples.

Vincent Browne has a hard hitting show on TV3, well worth a watch.

I have posted how the Irish government sold it's citizens into decades of debt slaves, when smarter countries, like Iceland avoided that fate.

A great video to watch, how the law is continually perverted by governments extending payments to un-guaranteed gambling (investing?) debts at the cost of the citizens.

Vincent Browne, thank you for doing your job.

European Crisis ahead

I am continually amazed at how incredibly irresponsible people are at their jobs and responsibilities.  The European situation was obvious to me and many other bloggers years ago that they where sitting on a pile of lies.  A pile that makes the USA lies look not that bad.

And here we are, day after day, month after month of the European political drama of denial and patchwork promises to stabilize the union.   What have Europeans gotten for all this effort? Their (and US) tax dollars thrown at bankrupt countries, banks, and other financial institution with NOTHING done to address the root cause, excessive debt, lack of transparency, and mark to fantasy accounting.

Greece's bond rates I have published before soared.  Now its spreading to Italy, Spain, Portugal, Ireland, Belgium and even France!

The leader for being the next Greece fiasco is Portugal, with soon to follow Ireland, Spain, or Italy.
Once one of these countries become the next Greece, I predict we won't have a 3rd, but a 3rd, 4th, 5th, and 6th at the same time.

Prediction: Europe is incapable of doing the right thing, as America has proven it isn't either.  So we must have a European crisis.  And Germany WILL buckle and print the euro just like America.

Next its a coin toss on who goes down next, China, US, or a long list of other countries.
But for those who think the US is untouchable, your just like most Europeans 1 year ago.

Once those countries buckles, then its time for the global currency crisis.  I still think 2013-2018.  It takes quite a while for this to play out.

Greece, Spain, Portugal, Italy, Ireland

Greece, Spain, Portugal, Italy, Ireland are at risk of outright failure, unless Germany backs all their debt.  Time will tell.  Some nice video debate.  Nigel Farage is my European Parliament hero.

Taxing Irish citizens for 20 years for bank losses

Interesting video about Ireland Banking failure, and resulting debt placed on Irish Citizens.

Ireland is bankrupt, its only a matter of time that they will return to economic wasteland once again.

It is very unfortunate, the answer was simple. Let the banks that gambled take the losses and free Ireland from gambling debts of banks.

That of course is not what has happened.

Also the bankruptcy laws in Ireland are draconian. That country needs same laws as America, if underwater, opt to give the house back to the banks. Instead citizens can be put into jail.

SNL skit on Europe woes

I found this skit pretty funny, covering problems of Ireland, Greece, Spain, Portugal, and the IMF chief caught trying to rape a cleaning girl at the hotel.

Last Saturday had Justin Timberlake, who I find very funny on SNL, couple of skits I liked can be found here and here.

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Syrian government dismantled, Libya mis-information everywhere

Syria

Tens of thousands of Syrians demonstrated in favor of the government amid reports the cabinet and prime minister planned to resign, officials said.

Syria's daily al-Watan newspaper said the Cabinet was expected to resign during its weekly meeting Tuesday, adding the resignations will not affect President Bashar Assad. - As reported by upi.com

What I don't understand is how the Syrian government can be dismantled, but keep the leader? I don't see how true change can occur. My prediction is Syria will have another crisis in years to come.

Libya

I saw flash on the news today that Gaddafi is planning for his own exit......when I search the internet I find nothing about such an action. I see news about other governments PLANNING on what to do once Gaddafi is gone. Perhaps the internet is behind the TV? I doubt it.

It does seem that the rebel forces are not making as much progress as the media is touting. Perhaps the way Gadaffi eventually falls is when he can't pay his mercenary army money.

In any event, Libya won't ever be the same, whether Gaddafi recognizes this or not, its only a matter of time, money, and lives lost.

Once this comes to pass, the world can resume focusing on Portugal, Greece, and Ireland as next to possibly fall.

Zero Hedge Roundup

The blog Zero Hedge can sometimes be a bit....extreme in some of its posts.

But I found a few good articles recently worth sharing.

Citi Recommends Buying Irish CDS In Advance Of "Nightmare On Kildare Street" - Basically Irish debt is going parabolic which equals, another government collapse. We'll see what Europe does.

Chris Martenson Straight Talk With John Rubino: The Damage Is Already Done - I don't highlight Mr. Martenson much on the blog, but I do feature in my "new reader" link his videos and link to his web site. Interesting read, highly recommend it.

JPMorgan: "The Likelihood That The Portuguese Government Will Fall This Week Looks High" - Hopefully if we have enough governments collapse, eventually the USD will reverse and gain value! Come on Libya, Ireland. Portugal, Greece, and a dozen more. Get busy failing!. The question is, once all the small players fail.....what then for the USD?

US Inflation On Track To Hit 8.3% In 2011 - To all retire's, fat chance you'll see an increase in your social security check to adjust standard of living. Get used to it.

OPEC Says Perfectly Happy With $120 Oil, Does Not Think It Will Impair Growth - Funny how 120 dollar oil was panic time in 2008...but now, eh, its fine! What has changed? Are global citizens more wealthy can can spend more for fuel (and all things that need fuel)? Or maybe...just maybe...Peak oil is real. Nah, common folk are clearly richer than spring 2008, so 5 bucks a gallon gas here we come. Alternately, maybe this is the first crack of OPEC with using USD as a benchmark, and expects US to continue to pay higher prices.

How Ireland can regain control of its economy

UPDATE:

Added Vanity Fair article on Ireland, how Ireland arrived at fiscal collapse.

Fantastic on the point video on how Ireland can regain control of it's debt.

If Ireland doesn't follow bill Still's advice, the citizens will be debt slaves.

Europe proves they are more reckless than USA

The US dollar will keep enjoying some strength, as it proves itself to be not as bad as others. The Federal Reserve Bank has come close to raw printing of money. All money in the USA to-date has been created on the backs of selling US bonds. In effect, every dollar created has an interest rate attached to it, and therefore every dollar created creates a long term drag on US debt.

However, this arrangement is considered a sounder approach than just simply creating money, with no marketplace to counter such actions. The bond market in effect is the counter to the US over-doing money creation, as rates will rise if perception is the US shouldn't be creating more dollars.

The European Central Bank has decided it is OK for Ireland to simply create Euros, without going through the European union to do so. This is in direct violation of the European Union law, and will likely be the doom of the Euro if this opening volley continues unabated in the year to come.

For currency is based upon faith that the currency itself will retain value. By allowing Ireland to circumvent the established process of the European Union itself to create money, they are showing wrecklessness beyond America.

How far the Europeans have fallen, since 2008 when they criticized America for it's "quantitative easing" and other acts that are also a challenge to the US dollar valuation.

It looks like the European union has just lowered the bar to the next level. If the Euro can withstand continued raw printing of currency without a crisis in the years to come, I'd expect more countries to follow.

After all, raw printing of money vs money backed by bonds vs money back by gold vs money backed by sea-shells is all a construct. No one really knows the effect these actions will have on the Euro.

One thing is for sure, it is an indicator that a full out European crisis is a brewing to allow these actions.

I highly recommend reading Mish's summary by clicking here.

I put this on my Financial Ground Zero events. Even if this isn't a direct American crisis act, it is an important moment in world currency.

Notice that this event will get zero press in the mass media. It is amazing how when governments publicly violate their own laws, it doesn't even get a mention.

Ireland choosing debt bondage for its citizens

In a fair game, there are winners and losers. The people who are winners and losers are the participants of that game. For example, in a game of chess, the two people playing CHOOSE to participate in the game, and therefore expect one will be a winner and one will be a loser. What makes it competitive is both go in expecting to win. When the game resolves, there can only be one winner.

When bond holders and investors decided to participate in investment "game", all participants I am sure expected to make money. Historically, companies may go bankrupt or undergo other unforeseen financial stress, resulting in those investors either meeting their expectations of a win or a loss.

What Ireland has decided to do, is to pick a third party to be a loser. The market participants where facing a catestrophic loss as over-leveraged private banks where on the path for default. Ireland has decided to have a sector not directly choosing to invest in the banks, the Irish citizens, to take the loss. The result is, those who invested in banks, win, there is no loser. The meta message is, there will never be a loser for market participants. The Irish citizens, many who cannot afford to make investments in bank securities, now must pay for the losses.

The result will be decades of debt bondage for all Irish citizens who decide to remain in Ireland. This diminishes their freedom, and is a blow to democracy. America has been taking similar steps to make the US citizens pay for private bank losses. Already trillion(s) have gone to private institutions through Fannie Mae and Freddie Mac, and FDIC insured losses, as well as Federal Reserve Bank purchases, and direct government subsidies. As a percent of GDP however, Ireland is in a completely different position than the USA. My prediction, assuming the Irish decide to pay this private debt of in the decades to come, is a return to the old Ireland, with high unemployment, and being regarded as the third world country of old Europe.

And if the citizens don't stand up for their interests, then this is exactly what they deserve, debt bondage.

A good video of Parliamentary member talking about the European union is a failure, and countries like Ireland is only the tip of the iceberg. The Euro is not better off than America, and the world is just discovering this. This blog stated in January 2010 would be the year nation destabilization begins, and re-iterated the European Union is headed for failure in May, when Europe decided to make private losses part of public debt. As a tribute to my friend Conrad "I'll wait for the world to catch up" to reality.