The smell of rot is in the air. European bank problems have become so bad that the media are actually covering it. There is usually a law of inverse proportion between the direness of the situation and the triviality of the media news.
Maybe that is justified by the reality that the closer that the world approaches Armageddon, the more weirdly trivial the preoccupations of the general public are becoming. Which public lavatory should he, she or ‘ze’ use? Really?
And it’s not just European banks. According to Wang Jianling, the richest man in China (he made Au$37billion in Chinese real estate), Chinese banks have an Au$4.6 TRILLION exposure to real estate loans.
The unravelling of the fiat money system has sped up.
Sovereign nations are fracturing. The powers that be attempted to unite Europe into one cohesive whole. As is par for the course with governments, they achieved the opposite. The continent is breaking back down into its constituent tribal parts. The Northern Irish and Scottish component of the UK are in doubt. Catalan is pushing ahead with a referendum to separate out from Spain; Basque independence will resurface. Belgium is fractured into Walloons and Flemish.
“Everything that the government touches turns to shit.” Ringo Starr (best quote of the 20th century)
Watch a wonderful visual representation of the way that Europe’s boundaries have changed over the last 250 years or so…
The idea that the currencies of some countries will be okay because they are backed by increasing quantities of government-owned Gold is wrong. It misunderstands the interconnected nature of the global paper debt system. When one major currency goes, then all will go, and at speed.
Government ownership of Gold helps neither the economy, nor the system of fiat debt notes. The Gold is locked away in vaults – uselessly unproductive.
One day the global economy will hit the wall and the world will come to a halt in stunned silence. That will include all those who saw it coming and were prepared – including me. The scale of the disaster will dwarf all powers of prediction.
There is no monetary solution that is palatable to the powers that be – yet, so the usual historical ploy will be resorted to – war. The finger of blame will be pointed at foreigners. China, Russia, Japan, North Korea, India and Pakistan are all rattling their sabres. The US is strangely quiet, maybe it is their preoccupation with the presidential election, maybe they are sick to death of foreign entanglements. That will all change if Clinton is elected as is currently seeming likely.
With the Merkel created Muslim disaster in Europe set to explode into the open at any time, the potential for bloody disaster in the world is grim and seemingly on the verge of being realised.