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Ministers And Officials Have Got The Picture. They Are Facing A Breakdown Of Europe's Economy.


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I was just re-reading an article from 20 Feb 2009...

The Looming Collapse of European Banking

Here are some snippets......

"Ministers and officials have got the picture. They are facing a breakdown of Europe's economy."

"The Germans will revolt. They could demand an end to the ECB, which will have become a welfare agency for the Mediterranean governments. That would end the euro."

"Whether it takes months, or just weeks, the world is going to discover that Europe's financial system is sunk, and that there is no EU Federal Reserve yet ready to act as a lender of last resort or to flood the markets with emergency stimulus. "

"The West's economy really is at the edge of a leveraged disaster. The politicians know only one answer: deficit spending. The central bankers have only on significant tool: monetary inflation. The speed of events is increasing. "

My thoughts: Oh dear, it's all coming true.

Comments?

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I was just re-reading an article from 20 Feb 2009...

The Looming Collapse of European Banking

Here are some snippets......

"Ministers and officials have got the picture. They are facing a breakdown of Europe's economy."

"The Germans will revolt. They could demand an end to the ECB, which will have become a welfare agency for the Mediterranean governments. That would end the euro."

"Whether it takes months, or just weeks, the world is going to discover that Europe's financial system is sunk, and that there is no EU Federal Reserve yet ready to act as a lender of last resort or to flood the markets with emergency stimulus. "

"The West's economy really is at the edge of a leveraged disaster. The politicians know only one answer: deficit spending. The central bankers have only on significant tool: monetary inflation. The speed of events is increasing. "

My thoughts: Oh dear, it's all coming true.

Comments?

Tis nearly a year old that article.

The ECB has opened its spigots and is lending lots of money to Ireland. Maybe if they dont tell the German people, then they will do the same with the rest of the PIGS.

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Tis nearly a year old that article.

The ECB has opened its spigots and is lending lots of money to Ireland. Maybe if they dont tell the German people, then they will do the same with the rest of the PIGS.

That was the OP's point, the article is a year old and predicted the current situation quite well.

Re the spigot comment, can you provide a link as l thought the whole point of the article and my understanding at any rate was that thr ECB cannot act as lender as last resort (unlike the Fed) so l don't see the basis for your response.

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