munKNEE.com Your Key to Making Money
Europe is on the verge of a collapse, and unless something gets done relatively soon, (perhaps as soon as the next few weeks), Europe is likely to experience their own 2008 scenario. The U.S. and Chinese economies are heavily dependent on exporting goods to Europe, and with Eurozone growth slowing as a result of the potential default in Greece, and then on to the rest of the PIIGS, a “Great Depression-like scenario” could very well play out. [In fact,] George Soros thinks we are headed towards another Great Depression and, you know what, he’s right! What do you think? Is George Soros right? Are we headed for another depression? Words: 530
So asks Jonathan Chen (www.benzinga.com), a Benzinga staff writer, in an article* which Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has further edited ([ ]), abridged (…) and reformatted below for the sake of clarity and brevity to ensure a fast and easy read. The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.
Chen goes on to relate and comment on what Soros had to say, in part, as follows:
Soros lists the actions that need to be taken [which,] according to him, are three-fold:
- the governments of the eurozone must agree in principle on a new treaty creating a common treasury for the eurozone.
- in the meantime, the major banks must be put under the direction of the European Central Bank in exchange for a temporary guarantee and permanent recapitalization.
- the ECB would enable countries such as Italy and Spain temporarily to refinance their debt at a very low cost.
He said that by the European Union, and the European Central Bank taking these actions, it would provide some time to help the governments of Europe come up with a solution. Unfortunately, there is no solution to a balance sheet recession other than time. That is something that the markets are not willing to give Europe, time. It is abundantly clear the business cycle has sped up, and that time is not going to be afforded as it once was.
We are lacking confidence around the world, and the fact that our political leaders can not come to a consensus on how to fix the problems around the world only makes things worse. Markets can live with good news, bad news, or no news. What they can not live with is uncertainty about the future, and that is the reason that equities, commodities, and other risky assets have sold off sharply, and why there is a rush into safe havens, such as U.S. government debt and the U.S. dollar.
As Europe tries to figure out what to do with the European Financial Stabilization Facility, the market is growing increasingly tired of waiting for an answer, and like a petulant child, is stomping its feet. It will either get what it wants (an increase in the EFSF used to recapitalize the banks and help the ECB buy bonds of weak European countries), or as Soros so succinctly puts it, we are headed for another depression…
*http://www.benzinga.com/markets/bonds/11/09/1954406/george-soros-thinks-were-headed-towards-another-depression
Related Articles:
1. Nouriel Roubini: Bold and Aggressive Policy Actions Necessary to Prevent a Depression
The latest economic data suggests that recession is returning to most advanced economies, with financial markets now reaching levels of stress unseen since the collapse of Lehman Brothers in 2008. The risks of an economic and financial crisis even worse than the previous one – now involving not just the private sector, but also near-insolvent sovereigns – are significant. So, what can be done to minimize the fallout of another economic contraction and prevent a deeper depression and financial meltdown? [Below I recommend 8 ways that would do just that.] Words: 1641
2. Goldman Sachs Privately Telling Clients to Bet on Upcoming Economic Collapse!
The debt crisis in the United States is unsustainable, and the debt crisis in Europe is unsustainable. As such, we are facing a global debt meltdown and are heading for an economic collapse. You aren’t going to hear that truth from the media or from our politicians, however, because keeping people calm is much more of a priority to them than is telling the truth – and right now we are in the calm before the storm. Nobody knows exactly when the storm is going to strike (i.e. when the collapse is going to happen) – but it is definitely on the way — and now even Goldman Sachs is admitting [that that is most likely the outcome of the present situation. Here is what they had to say recently in a “secret” document that has just now been made public.] Words: 1147
3. Jim Rogers: Situation to Worsen in U.S. and Lead to Social Unrest
You think the problems are bad now? You wait until we don’t have any more credit. You wait until the currency is collapsing. You wait until interest rates are going through the roof and inflation is going through the roof. It’s not going to be a pretty picture. There will be social unrest. [See below for the link to the interview.] Words: 477
4. Jim Sinclair Sees an Economic Train Wreck Coming – Slowly but Surely!
James Turk, Director of The GoldMoney Foundation, interviewed Jim Sinclair recently at the GATA conference in London about his successful gold price predictions, the U.S. debt problems, how to ride the second phase of the gold bull and the gear change from arithmetic to exponential growth as public perceptions about the safety of the US dollar changes. Below is a heavily edited and paraphrased version of the interview to provide you with a fast and easy understanding of its contents. Words: 1318