Economy, Q4, 2011, A Wild and Wooly Affair

the-collapsing-eurozone-could-brind-down-the-house-of-cards

September and the final quarter of 2011 is going to be a wild and wooly affair…You have no idea how really wild this is going to get.

That was a quote from a very clear and well written article by Bob Chapman of the International Forecaster who succinctly summed up the present economic situation that most of us are facing today. The following are additional excerpts from the article.

 

The inflationary depression is still with us and has been for 31 months and it is going to get worse in the month’s ahead.

Many nations have terrible problems. The euro zone could soon collapse because German citizens refuse to do any more bailouts.

Politicians are being blamed for the problems, but that is only partially true. The bankers caused these problems. Both have been irresponsible. The politicians having no problem taking orders from the bankers due to the juicy payoffs. No one wants to cut spending because the EU economy might collapse.

As the Fed and the ECB create trillions out of thin air gold is being again thought of as a world reserve currency. The ECB has violated the EU Treaty by buying billions of dollars of Spanish and Italian bonds. On September 9th or 15th a judicial ruling will come from the Federal Constitutional Court of Germany in Karlsruhe. We will find out if it is legal for the ECB to bail out member nations.

This decision has been blocked out in the media almost totally. When we mention it on radio no one knows what we are talking about. We believe their decision will be that the ECB cannot act unilaterally in buying such debt. That means unless the sovereigns bail out the six problem countries they will be forced into bankruptcy, which three of them should have done already.

In Europe as we have mentioned before, we have the catalyst for the bursting of the global debt bubble, as the six insolvent nations find they cannot find refinancing or financing at a reasonable cost.

Once the dominoes begin to fall the options and derivatives will fall and fail as well and that will bring the whole house of cards down.

 

The author believes that the collapse will not be immediate, because “a great deterioration of debt is taking place worldwide, and continues to be delayed by the creation of money and credit from central banks.” A result, he believes, “We could see gold shortly at $2,000 to $2,200 with silver at $60 to $70. By March gold could be $3,000 to $3,200 and silver $100.00.”

The entire article can be read here, Fearing An Even Worse Inflationary Depression Ahead.

 

As the saying goes, ‘You better get your ducks in a row…’

 

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