The End of the European Union
More Exits from the EU:
If “Brexit” was a severe cold for the cabal, what’s coming in early December will be a chronic, contagious, and incurable virus for them, with corresponding hardship for us. The economic chain reaction will simultaneously affect all of the world’s markets, which is going to result in a more severe crisis than the Great Depression of the 1930s. What will be seen by the unprepared is a massive wealth redistribution to those who saw it coming.
More than $33 trillion in assets are at stake. Not all of that money will change hands, or be lost, but much of it will. People that own stocks, bonds or a retirement account, are running a significant risk in this coming event. It even threatens to affect the value of people’s homes, their savings and the cash they have stashed away. The consequences of what will happen on December 4th will be polarizing. – Sadly, millions of people around the world are likely to suffer. For everyone owning any stocks, bonds, or mutual funds, this day will be critical for their financial future.
A historic day in Italy:
So what happens on December 4th? This is the day of another official referendum – this time decided by Italian voters – that is thought will determine the very fate of the European Union. – If this referendum goes the way the many signs are already indicating, Italians will vote “no.” This will be the first major step in the total destruction of the EU.
The effects of the outcome of this upcoming referendum threaten to be five times graver than Brexit. That’s the reason, in analogy with Brexit, it has been called “Italexit.” It could result in Italy’s exit from the EU. – The shockwaves from Italy’s exit from the EU will almost certainly affect every savings account, stock portfolio, and cash stash. Be assured that all paper will burn.
Social Security, pension funds, and even precious metals are all involved in this game. Don’t think it can be dismissed as insignificant because it is the third largest nation within the EU. For unprepared, savers, investors and retirees across the western world, this economic catastrophe could turn into a disaster of epic proportions.
If everything unfolds as is expected, it could very well set off the biggest economic disaster of this century. In short, dramatic changes are coming and they are coming soon. The world is on the brink of a new era in financial markets.
If Italy is the first domino to fall, the total collapse of the EU will be unstoppable, no matter what politicians and central bankers try to do to stop it. And taking into account all the lessons taught to us by history, the conclusion is that this will be the most important financial crisis to date. Once underway, this one will spare no one who hasn’t seen it coming. The prepared, however, those that have comprehended this situation, will not be concerned about their wealth.
The End of the EU:
Will the fall of the EU be the biggest event in modern financial history? Most likely yes. When the Italian domino does fall, it will unleash a series of unstoppable events that will culminate in the fall of the EU. Most likely the majority of people have no idea how radically this shaking-out process is affecting their prosperity. The entire global economy is suffering a massive transformation. Today’s markets are so interconnected – and information travels so fast – that the effects of any big economic shock are immediately felt across the world. In other words, no one, wherever they may reside on the planet, will be safe just because they don’t live in Europe. Think about what will happen. To better understand the impact, take the following events into consideration.
- Collapse of the stock and bond markets, as they fall off a cliff
- Hundreds of Banks with international exposure could go belly-up
- Thousands of businesses going bust across the world
- Central Bankers could overreact in their response to this crisis by manipulating currency values, interest rates, and by printing massive amounts of paper money of diminishing value to the point of worthlessness. Making the disaster even more damaging.
Refuge migrant crisis sweeping across the EU and the US could increase, leading to more terrorist attacks, and to devastation of the already hazardous living-climate in these regions.
- In the aftermath of such a vast global disaster, the value of your home, your savings, your pension fund, and your investment portfolio could all take a swift and severe beating.
Will this turn out to be a total economic apocalypse for everyone? It can be avoided, especially if you have seen it coming, by taking the necessary steps ahead of time getting prepared by protecting your portfolio, savings, and retirement nest eggs. Then you’ve got the protection position covered. You can even make historic profits on the tremendous wealth transfer that never before has taken place in this magnitude.
Some important specifics about today’s economic situation in Italy. As many on this site have already read about in previous articles; One of Italy’s oldest and most venerable institutions is currently crumbling. It is the World’s Oldest Bank; Monte dei Paschi di Siena, founded in 1472. – Its share price recently collapsed a stunning 99%. More than one third of Monte dei Paschi’s loans have gone sour, and on top of that; the troubled bank holds 47 billion euros in “non-performing” loans.
Furthermore, Italy’s worst recession since World War II has left businesses, individuals, and households struggling to repay loans. Monte dei Paschi has had two bailouts so far. And talks are in progress regarding a third one. What is even more worrisome is the fact that the bank’s bad state of affairs threatens to cause a full-scale bank run in the near future as depositors withdraw their savings in droves. But this ordeal doesn’t stop at Monte dei Paschi, because banks all across Italy are suffering similar crises.
The entire Italian banking system is one step away from a full-blown, potentially deadly catastrophe, financially. This is reminiscent of the banking crisis that swept over America during the subprime mortgage fiasco in 2007/08, but this time five times worse, as the Italian banking system hasn’t recovered from the crisis of 07/08. Unfortunately, it looks like the Italian banking system is doomed, and with that the EU, and the rest of the world’s financial institutions. – What’s most dramatic, unlike the smaller banking crises that smashed Greece, Portugal, and Ireland, Italy is far too big to be saved by a European Central Bank bailout.
Adding to the fiasco:
Italy is too big to bail-out because it accommodates the world’s third largest government bond market, with over 2 trillion euros in outstanding government debt. In other words, that would amount to a bailout of over eight times larger than Greece’s bailout – and this enormous amount of money simply isn’t there.
On top of that:
Italy’s banks hold over 4 trillion euros in assets, including at least 360 billion euros of bad, non-performing loans on their books. They’ve also suffered from hundreds of billions in bad derivative bets. So the situation in Italy is several times worse than in the other struggling European economies.
In short, Italy is too big to be saved and too big to fail. – As economist Ambrose Evans Pritchard wrote in The Telegraph:
“Italy’s banks are the Achilles Heel of the Eurozone financial system.”
The reason, why tens of millions of Italians want to leave the EU:
Sadly, the troubles in the banking sector have spilled over into everyday Italian life.
A recent study published by McKinsey & Co. showed that an astounding 97% of Italians have suffered a loss in wages and income during the period from 2005 to 2014.
This works out to a total of 58.6 million Italians who are in a worse position financially than their parents. – So it’s understandable why so many Italian voters are likely to vote “no” in the coming referendum. After all the present course of action ensures things won’t be getting any better but instead worse for them.
The economic hardships in Italy go even deeper than this, because 100% of all Italians have suffered a loss in disposable income over this same period. Disposable income means income after taxes and transfers – put simply; their take home spending money. – This is total economic destruction of an entire country, in real terms. There’s simply no other way to put it.
This is the reason, why tens of millions of Italians want to leave the EU. In actual fact, this even questions the reality of holding euro’s as opposed to abandoning the euro currency, and returning to the Lire.
The EU experiment has grown into a malignant economic cancer. And like all malignant cancers, this one has spread throughout the entire country, causing great suffering for every single Italian citizen. And that’s why so many Italian voters want to try something – anything – as long as it is something different.
The cost of participating in the EU has been the imposition of austerity and the loss of national sovereignty. Italians have learnt their lesson. They have witnessed how the economy of Greece has been destroyed in order save the private –RKM- banks that lent the money. Money to save these banks that had to be accrued by reducing Greek pensions, cutting education budgets, healthcare and public employment, and by privatizing – bought by the elite on the cheap – public companies, such as municipal water companies resulting in a higher price of water for people whose incomes are falling.
The EU was intentionally built upon a foundation of sand, doomed to fail from the very beginning. The EU is great for the “elites” in Brussels; but definitely not for the average citizen. Meanwhile, there’s a centrifugal force within many other EU countries too. In Spain, the Basques and the Catalans want to split off. In Belgium, the headquarters of the EU, the Flanders are in the process of separating from Wallonia. In Italy 89% of the Venetians voted to separate a couple of years ago. The Italian South Tyrol region, where 70% of the people speak German, has a strong independence movement. The chances are that in the future many EU countries are going to fall apart, as opposed to being compressed together artificially.
In the Italian referendum, voters will decide the fate of the sitting prime minister, Matteo Renzi. It’s impossible to predict whether the vote will go “yes” or “no” of course. But all signs point to the result of “no,” which will be the first step in Italy leaving the EU, ditching the euro as a currency, and regaining economic and political independence.
As The Wall Street Journal recently reported,
“The likely beneficiary if the referendum fails: is the populist Five Star Movement, founded by comic Beppe Grillo, which has surged in the polls and whose politics reflect the breadth of anger among Italians at their political class.”
In short: The First domino to fall was Brexit. The Second domino will be Italexit. End result: Total collapse of the European Union.
World Bank chief economist and Nobel Prize winner Joseph Stieglitz recently said:
“Italy could be the ‘cataclysmic event’ that leads to the fall of the EU”
The danger of these events is that the world economy is completely interconnected – what happens in the EU will instantly plough through the globe’s currency and stock markets.
On the day of the “no” vote, a series of unstoppable events will go into motion. And this chain reaction will eventually result in the end of the EU. As can be seen from the attached map, it’s not just Italy – all of Europe is in bad economic shape, even France.
Add to all of this the growing migrant crisis, the brutal spreading of terrorism across Europe, and it is obvious how the entire EU will disintegrate.
Investor and bestselling author Jim Rogers recently issued this chilling prediction:
“This is going to be worse than any bear market you’ve seen in your lifetime… The EU as we know it will not exist, the euro as we know it will not exist…”
The period of time left until December the 4th is very short. People not yet prepared, should start to do so today. Delaying or postponing the matter could mean financial devastation. Prepare for the worst and hope for the best. Key to preserving wealth is owning physical gold and silver assets. Gold and silver are real assets, and when you own physical metal, it’s no one else’s liability. Own gold, own silver; take delivery and store it privately. It will retain value as central banks fail and currencies reset across the globe in the months and years to come.
The US presidential election:
“Remember, the election system is a rigged”, said candidate Donald Trump over the weekend. Probably not in the way Mr. Trump intended the audience to believe. As the “system” is so rigged that the election results hardly matter. The only response is massive awakening from the electorate. Judge Jeanine Pirro: Puts the right question forward; “Will people have a place in Clinton’s America? It’s time to move on to the issues that really matter, watch this short video, and pass the link of this article on, in the interest of all of us and our children.
October 25, 2016 at 5:52 pm
Wikileaks Shocker: Cheryl Mills Tells Podesta “We Need To Clean This Up – Obama Has Emails From Her”
Recall that in a March 2015 interview with CBS, just after the NYT reported of Hillary’s use of a private email server, president Obama told the American public he had only learned about Hillary’s “unusual” arrangement from the press. Read more: http://www.zerohedge.com/news/2016-10-25/podesta-shocker-cheryl-mills-tells-podesta-we-need-clean-obama-has-emails-her