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Banksters Postpone European Market Collapse

June 16, 2012

To avoid panic, the news media hasn't announced the inevitable - the complete collapse of the European market. It is an engineered collapse of Greece, Ireland, Portugal and now Italy and Spain...and it's been postponed. Who is the supervising engineer? German Chancellor Angela Merkel.

Merkel finds herself isolated from the leaders of Spain, Italy and France, who want the 17 countries in the euro currency union to move quickly to bind their governments' finances and debt.

 

MERKEL AND THE FINANCIAL TERRORISTS

Who are the financial terrorists? Angela Merkel, Goldman Sachs, Zionist European Banksters and Moody's Ratings Agency. They're all in on it. Their weapons? Austerity, liquidation, more unpayable bailout debt, downgrading, loan refusals, integration.

Merkel's solution to the engineered European market collapse is a centralized banking authority...and guess who that authority will be? Goldman Sachs and the New World Order one-world-government banksters.

Merkel has stated that Germany is open to wide-ranging reforms - such as "a centralized banking authority" with the power to bail out banks. Bankster market experts are saying that European nations must act to "integrate" their finances and debt in order to boost confidence in the eurozone.

Any major steps to repair Europe's debt collapse must meet Berlin's approval. So far, Merkel has balked at anything that might heavily expose Germany to the financial pain of other European countries.

Merkel has, of course, long favored austerity as the best way for European governments to heal their public finances. But that stance is under fire since Spain, Italy and Greece cannot manage their debts if Germany refuses to shoulder some of it.

The debt collapse can also be blamed on the refusal of European banks to lend to each other which is necessary for a stable banking system.

"The European banking system is paralyzed," said Nicolas Veron, senior fellow at the Bruegel think tank in Brussels. "So many banks hold massive amounts of Spanish and Italian government bonds that are losing value. We no longer have a functioning interbank (lending) market in the eurozone."

They note how fast fears about Spain have spread to Italy. Matters could worsen this weekend, when Greece will hold elections that could determine whether that country sticks to the terms of its bailout.

Abandoning the bailout deal means Greece will leave the currency union and others will follow - bringing consequences of a depression not only for Europe but for the global economy.

"We're at a tipping point," said Michael Hewson, a senior analyst at CMC Markets. "You either have to deliver or disband."

ITALY

A European deal to save Spain's banks has failed this week to defuse worries about Spanish debt. "They mucked up Spain so badly that now it's impacted Italy," said Gary Jenkins of Swordfish Research, a bond research consultancy. "There's a lot of fragility there."

Italy has the eurozone's third-largest economy. With the economy in a deep recession, the debt is expected to keep rising. The latest figures released Thursday showed it hit a new high of (euro) 1.95 trillion ($2.4 trillion) in April.

A resolution can't happen because bond investors keep pushing up Italy's borrowing rates over concern about the eurozone's collapse.

SPAIN

Spain's troubles keep growing. A (euro) 100 billion European rescue loan for its banks was meant to help...but, the government, which is ultimately liable for the money, can't repay it. The Moody's ratings agency has now downgraded Spain's sovereign debt three notches because of that.

As a result, Spain's key borrowing rate hit a fresh new high. The interest rate -- or yield -- on the country's benchmark 10-year bonds rose to a record 6.96 percent in early trading, close to the level which many analysts say is unsustainable in the long run and the rate that forced Greece, Ireland and Portugal to seek bailouts.

Spain is scheduled to auction its debt. "The clock is definitely ticking," said Michael Hewson, an analyst with CMC Markets. European officials are considering liquidation -- selling a bank's assets -- as part of the plan to bolster Spain's banks, a spokesman for Competition Commissioner Joaquin Almunia said. "We prefer to liquidate when it's cheaper for the taxpayer," said Antoine Colombani.

GREECE

Greece's left-wing Syriza party, which finished second in the first round of voting in May, wants to abandon the country's international bailout terms. As a result, Greece would be cut off from loans, face bankruptcy and leave the euro.

A Greek exit from the euro would fuel fear that other countries like Portugal might leave as well, threatening to create a domino effect. Because Europe, as a whole, is the largest economy in the world, a Greek exit would tumble global financial markets.

The rise of Italian and Spanish borrowing costs to alarming levels caused the debt crisis to engulf Europe's largest countries...and no grand solution appears imminent. Why? Because the engineers of the European Financial collapse want the collapse. It's the problem-reaction-solution formula. Create the problem (financial collapse). Cause a reaction (help!). Offer a solution (a centralized New World Order one-world-government banking authority).

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