The Template For How the Next Crisis Will Unfold

[Chef Ramsay]

Anyone looking to get their head around how the next round of the Crisis will look should consider what’s happening in Europe today.

Europe is ground zero for the whole debt bomb implosion, not because it has the most debt but because it’s politically and economically on the least sound footing. 

Some 19 countries share the currency, all of them in varying degrees of socialism (the public sector accounts for roughly 1 in 3 employees in Germany’s allegedly “free market” economy), and varying shades of broke: even Germany a real Debt to GDP of over 200%.

In this regard, Europe gives the rest of us a front-row seat to learn how things will unfold when the real stuff hits the fan and the political and financial elite are at risk of losing their power and wealth.

We’ve been through this mess multiple times in the last three years. The most notable cases involved Spain and Cyprus. And the formula is as follows:


1)   A problem first emerges.

2)   Various political and financial officials state that the problem is contained and there’s nothing to worry about.

3)   Months later, the market and mainstream media catch on… usually when the problem is already a massive crisis and a bank holiday needs to be declared.

4)   Individual investors lose a LOT of money while the same folks who cause the problem A) are not fired, fined or jailed B) never come clean about the full scope of the problem and C) claim that they can solve the problem and have all the answers.

More...http://www.zerohedge.com/news/2015-02-08/template-how-next-crisis-will-unfold

[cellard]

I just hope when Europe kicks Greece people realize the usefulness of Bitcoin and put their savings there instead of putting them under the bed.

[Lethn]

I just hope when Europe kicks Greece people realize the usefulness of Bitcoin and put their savings there instead of putting them under the bed.

Considering what happened with Cyprus that might very well be a reality, a lot of stuff is going to happen this year.

[CoinCidental]

Anyone looking to get their head around how the next round of the Crisis will look should consider what’s happening in Europe today.

Europe is ground zero for the whole debt bomb implosion, not because it has the most debt but because it’s politically and economically on the least sound footing. 

Some 19 countries share the currency, all of them in varying degrees of socialism (the public sector accounts for roughly 1 in 3 employees in Germany’s allegedly “free market” economy), and varying shades of broke: even Germany a real Debt to GDP of over 200%.

In this regard, Europe gives the rest of us a front-row seat to learn how things will unfold when the real stuff hits the fan and the political and financial elite are at risk of losing their power and wealth.

We’ve been through this mess multiple times in the last three years. The most notable cases involved Spain and Cyprus. And the formula is as follows:


1)   A problem first emerges.

2)   Various political and financial officials state that the problem is contained and there’s nothing to worry about.

3)   Months later, the market and mainstream media catch on… usually when the problem is already a massive crisis and a bank holiday needs to be declared.

4)   Individual investors lose a LOT of money while the same folks who cause the problem A) are not fired, fined or jailed B) never come clean about the full scope of the problem and C) claim that they can solve the problem and have all the answers.

More...http://www.zerohedge.com/news/2015-02-08/template-how-next-crisis-will-unfold

practically every country is "bankrupt" for lack of a better word ........
japan has a debt to GDP ratio of nearly 250% yet nobody is starving there ? how come ?
they are a fine example of how to go deep into the red and not worry about it

54% of total  global foreign investment in thailand is from japan
$1.2 TRILLION of the US national debt is owed to japan
the prime minsiter of thailand is going to  meet the premier of japan to seek investment  funding for a new high speed bullet train from thailand to burma (which will cost a shitload )

if Japan is so broke ,how can they keep lending huge sums of money to other countries that are also broke ?

ironically ,the countries with the least national debt are mainly 3rd world african nations

seems like the entire western world is living on "borrowed credit " but for how long until the music stops ?

[EvilPanda]

practically every country is "bankrupt" for lack of a better word ........

Exactly. I live in Poland, a EU country that still hasn't accepted Euro, simply because the prices would look ridiculous. Typical net wage in Poland is €600, while in Germany or France it's over €2000. You could think people from neighbouring countries would shop here since the disproportion is so big, but no. The country is doing what it can to keep the prices of every article ridiculously high  

Almost every single thing in store has similar price in Poland and Germany, and the prices of houses are beyond reach. Imagine you're earning $400 a month and a small house costs $100 thousand.

[Agestorzrxx]

I have been reading these same predictions since the 1980's. We all underestimate how long the can can be kicked down the road. In the meantime, we all get gradually poorer, but civilization holds together a little longer.

[BitMos]

practically every country is "bankrupt" for lack of a better word ........

Exactly. I live in Poland, a EU country that still hasn't accepted Euro, simply because the prices would look ridiculous. Typical net wage in Poland is €600, while in Germany or France it's over €2000. You could think people from neighbouring countries would shop here since the disproportion is so big, but no. The country is doing what it can to keep the prices of every article ridiculously high  

Almost every single thing in store has similar price in Poland and Germany, and the prices of houses are beyond reach. Imagine you're earning $400 a month and a small house costs $100 thousand.

even a famous boomed agrees about polnish girls... by design...

I have been reading these same predictions since the 1980's. We all underestimate how long the can can be kicked down the road. In the meantime, we all get gradually poorer, but civilization holds together a little longer.

by design, inch by inch closer to prostitution...

unit the thousands of soldier came home and saw, you know how it goes...  .

edit: as if it was a new type of war, ignorants.

[Spendulus]

.....
if Japan is so broke ,how can they keep lending huge sums of money to other countries that are also broke ?
....

  Because they create money from thin air, and make a foreign loan with it, trading it for something "tangible".

Now what could go wrong with that?  Think about it  - .  Print a billion.  Then loan a billion at 5%, start raking in 50M per year without even doing anything at all.    And they pay back the "principal", too.  Now think about the possibilities of doing this with your golfing buddies.

[CoinCidental]

.....
if Japan is so broke ,how can they keep lending huge sums of money to other countries that are also broke ?
....

  Because they create money from thin air, and make a foreign loan with it, trading it for something "tangible".

Now what could go wrong with that?  Think about it  - .  Print a billion.  Then loan a billion at 5%, start raking in 50M per year without even doing anything at all.    And they pay back the "principal", too.  Now think about the possibilities of doing this with your golfing buddies.

if western countries can stay wealthy by printing billions from thin air  ,why would the poor countries not do the same and inflate their own wealth ?

why would america not print the $1.2 Trillion themselves instead of borrowing it from japan with some % of interest

why is there any poverty in the world ? at some point the system breaks and you get another russia or zimbabwa where people are burning paper money to stay warm or it costs a wheelbarrow full of cash to buy a loaf of bread etc ...

i dont know how close we are from that scenario happening to the euro or the usd  but history has proven over and over that the more money you print the more worthless it gets ......