Thursday , 13 June 2024

Economic Collapse: The U.S. Could Learn From Europe

“Follow the munKNEE via Facebook or Register to receive articles via our Intelligence Report newsletter (Recipients restricted to only 1,000 active subscribers)

When you get into too much debt, eventually really bad things start to happen.  This10623945-the-word-debt-in-the-american-flag-colors-americans-in-debt is a very painful lesson that southern Europe is learning right now, and it is a lesson that the United States will soon learn as well. 

So writes Michael ( in edited excerpts from his original article* entitled 17 Signs That A Full-Blown Economic Depression Is Raging In Southern Europe – Is The U.S. Next?.

This article is presented compliments of (A site for sore eyes and inquisitive minds) and (Your Key to Making Money!) and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.

Michael goes on to say in further edited excerpts:

It simply is not possible to live way beyond your means forever.  You can do it for a while though, and politicians in the U.S. and in Europe keep trying to kick the can down the road and extend the party, but the truth is that debt is a very cruel master and at some point it inevitably catches up with you and…the results can be absolutely devastating.

Greece, Italy, Spain and Portugal all tried to just slow down the rate at which their government debts were increasing, and look at what happened to their economies.  In each case, GDP is shrinking, unemployment is skyrocketing, credit is freezing up and manufacturing is declining.  And you know what?  None of those countries has even gotten close to a balanced budget yet.  They are all still going into even more debt.  Just imagine what would happen if they actually tried to only spend the money that they brought in?

I have always said that the next wave of the economic collapse would start in Europe and that is exactly what is happening so keep watching Europe.  What is happening to them will eventually happen to us.

Below are some signs that a full-blown economic depression is raging in southern Europe…

  • The unemployment rate:
    • in Greece is 26.4% (and youth unemployment is 57.8%),
    • in Spain is 26%,
    • in Italy is 11.7%….(with youth unemployment at 38.7% and
    • in the eurozone as a whole has reached a new all-time high of 11.9%.
  • The economy (GDP) of:
    • Italy shrank by 28% year-on-year and was down 0.9% in the fourth quarter of last year;
    • Greece…contracted by 5.7% year-on-year and, overall, has contracted by more than 20% since 2008. [In fact,] things have gotten so bad…the Greek government plans to sell off 28 state-owned buildings – including the main police headquarters in Athens.
  • The manufacturing activity – where 50 is the cut-off between growth and decline – is declining just about everywhere in Europe with the following February readings:
    • U.K. at 47.9 (down from 50.5)
    • Spain at 46.8
    • Italy at 45.8
    • France at 43.9
    • Eurozone as a whole at 47.9
    • while Germany was marginally in growth territory at 50.3
  • The Italian economy is in the midst of a horrifying “credit crunch” that is causing thousands of companies to go bankrupt…
    • Italian now have 12.2% in bad loans compared to just 4.5% back in 2007.
    • [Indeed] as Lars Feld, a key economic adviser to German Chancellor Angela Merkel, said [recently], “The sustainability of Italian public finances is in jeopardy. The euro crisis will therefore return shortly with a vengeance.”
  • Bank deposits experienced significant declines all over Europe during the month of January.
  • Private bond default rates are soaring all over southern Europe:
    • Italy has a 9.5% default rate (up from 5.7%) as local banks shut off funding.
    • Spain is at 14.3% which has doubled over the past yearin Spain.
    • France’s default rate rocketed from 0.8% to 8.7%…as the delayed effects of tax rises, fiscal tightening, and the strong euro do their worst.

One of the few politicians in Europe that actually understands what is happening in Europe is Nigel Farage as this video of one of his recent rants conveys.  Farage believes that “the Eurozone has been a complete economic disaster” and that the worst is yet to come.

Who in the world is currently reading this article along with you? Click here

Most people believe that the eurozone has been “saved”, but that is not even close to the truth. In fact, it becomes more likely that we will see the eurozone break up with each passing day….A Reuters article says that there have been rumblings among some German politicians that Greece should be the first to leave…but there is also a chance that Germany could eventually be the first nation…[to go].  In fact, a new political party is forming in Germany that is committed to getting Germany out of the eurozone. A recent article by Ambrose Evans-Pritchard…states that they propose German withdrawl from EMU and return to the D-Mark, or a breakaway currency with the Dutch, Austrians, Finns, and like-minded nations. The French are not among them. The borders run along the ancient line of cleavage dividing Latins from Germanic tribes. However this all plays out, the reality is that things are about to get much more interesting in Europe.

Enjoying this article?
Then stop surfing the net looking for more informative articles.
The best of the best are posted on!
Sign up here to receive them all via our Intelligence Report newsletter.
The mailing is free and restricted to only 1,000 active subscribers.
Act now!


No debt bubble lasts forever.  The Europeans are finding that out right now. The U.S. won’t be too far behind but for the moment most Americans assume that everything is going to be okay because the Dow keeps setting new all-time record highs.

Well, enjoy this little bubble of debt-fueled false prosperity while you can, because it won’t last for long. A massive wake up call is coming, and it will be exceedingly painful for those that are not ready for it.

Editor’s Note: The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.



China Calling!

We can establish your products there – we’ve already done it for others
Chinese market is 4x bigger than those of the U.S. and Canada combined
MAJOR need for:
– pollution treatment/prevention equipment (water & air),
– disease detection/treatments (diabetes & cancers),
– green energy products (heating & power).
Visit Global Linkages and then contact us to discuss opportunities
We’re off to Beijing & Shanghai again this month
Contact us today

Related Articles:

1. Don’t Be Hoodwinked! Unemployment is NOT Declining


The mainstream media is absolutely giddy that the U.S. unemployment rate has hit a “four-year low” of 7.7% but is unemployment in the United States actually going down?…Headlines all over the nation boldly declared that “236,000 jobs” were added to the economy in February, but what they didn’t tell you was that the number of Americans “not in the labor force” rose by 296,000.  That is how they are getting the unemployment rate to go down – by pretending that huge numbers of unemployed Americans don’t want jobs.  Words: 596; Chart: 1; Table: 1

2. So the Dow’s Up: So What?

Investing financial markets

“Do we really have a time machine and have reset to 2007 or have we in fact entered the uncharted territory of unsustainable, runaway trends the likes of which have never been observed in recorded history? Also, just how relevant is the Dow Industrials Index in all of this?”

3. Gov’t Says: “Happy Days Are Here Again For U.S. Economy” – Don’t Believe It! Here’s Why


The government continues to assure us that happy days are here again for the U.S. economy and that we don’t have anything to worry about – but should we trust what the CBO is telling us now? Of course not. Instead, perhaps we should listen to some of the men that successfully warned us about the last financial crisis and here is what they have to say. Words: 800

4. U.S. Gov’t Unemployment Deception Masking the Coming Economic Horror Show


How bad do things have to get before people realize that we are living through a nightmare? Sadly, most Americans still have faith in the system. They are still convinced that our politicians will somehow find a way to turn things around. Most Americans…[don’t realize that] America is literally falling apart all around them. We have been living in the biggest debt bubble in the history of the world, and it is only a matter of time until it bursts. 2008 was just a “hiccup” compared to what is coming.  I hope you’re getting prepared  to survive the economic horror show that is rapidly approaching. Words: 1310

5. America’s Master Class Has Taken the United States By the Throat! Here’s Why

riot police

Thanks to the endless barrage of feel-good propaganda that daily assaults the American mind, best epitomized…by the everything’s-coming-up-roses propaganda touted by Federal Reserve Chairman Bernanke, the citizens have no idea how disastrous the country’s fiscal, monetary and economic problems truly are. Nor do they perceive the rapidly increasing risk of a totalitarian nightmare descending upon the American Republic. Below, we outline America’s troubling and compounding predicament, and urge you to think about how to protect yourself from its consequences, both financially and personally. Words: 3402

6. The Average U.S. Citizen Is Clueless Regarding the Desperate Shape the Country Is In! Are You?


The corrosive nature of politics and government has destroyed the economy and the moral fiber of citizens. These issues are not insurmountable, but they are very close to being so. Their ramifications are potentially existential in nature: the average length of life, the very time span or cycle of a nation has been proven in history to be approximately 250 years.  Since the USA was born in 1776 this says we have about 14 years of life remaining for America. The way things are going we don’t doubt it. [Let me explain.] Words: 768

7. 50 Reasons to Seriously Consider Becoming a Prepper – Financially or Otherwise


[While] I am not a prepper in the traditional sense of stockpiling food, guns and the like, I have always considered myself a financial prepper…For anyone not familiar with how dicey matters are becoming, [however,] I suggest they read the 50 questions below. Words: 1323

8.  Gov’t Intimidation of Rating Agencies Shows How Desperate U.S. Financial Situation Really Is

Standard & Poor's

[The U.S. governments attempt to prevent the rating agencies (and Standard & Poor’s in particular) from following through on their threats to further downgrade the credit worthiness of U. S. government debt] smacks of absolute desperation.  It seems that Washington insiders have come to the conclusion that the stability of the U.S. government and financial system is threatened by the ratings agencies.  In this case, it is threatened by creditors and citizens knowing the truth about the financial condition of the government.

9. Monty Pelerin Cuts Through All The Economic Noise To Tell It Like It Really Is!


I read many hundreds of articles every week looking for writers who have an in-depth understanding of our economy and who are not reticent to tell it like it is. Monty Pelerin (a pseudonym) does just that week after week, year after year. This post includes introductory paragraphs and links to 25 of his most enlightening and current articles. Take a look. There are bound to be several that will grab your interest.