June 27, 2012 By gpc1981
‘I’ve often been labeled as “Gloom and
Doom” in the past, but the situation in
I realize some of this may sound overly dramatic. But the
following should give you an idea of how serious
things are getting:
A Vote of No Confidence
in
Granted, the Schengen system is not
perfect. With the EU’s eastward expansion, its external borders have become
more porous. The problem areas are well-known:
The above story have been almost completely ignored by the
mainstream media. Let me ask you this… do you think
No, the move to create border controls is about one thing only: stopping people from fleeing with their money when
the collapse comes. The political elite in Europe are watching the bank runs in
Consider the following, more recent stories and you’ll see what I
mean:
Exclusive: EU floats
worst-case plans for Greek euro exit: sources
European finance
officials have discussed as a worst-case scenario limiting the size of
withdrawals from ATM machines, imposing border checks and introducing capital
controls in at least Greece should Athens decide to leave the euro…
As well as limiting cash
withdrawals and imposing capital controls, they have discussed the possibility
of suspending the Schengen agreement, which allows
for visa-free travel among 26 countries, including most of the European Union.
http://money.msn.com/business-news/article.aspx?feed=OBR&date=20120611&id=15208663
Swiss eye capital
controls if
The Swiss National Bank
is considering imposing capital controls on foreign deposits if
Speaking to Swiss media, Thomas Jordan, head of the Swiss central
bank, said the Swiss government and the
SNB were looking at ways of dealing with an expected flood of foreign money
into the country in the event of a Greek exit from the eurozone.
http://www.ft.com/cms/s/0/d7678676-a810-11e1-8fbb-00144feabdc0.html#axzz1wNKR2leW
This is not Gloom and Doom. This is reality. Talks are already underway of suspending the Schengen agreement and implementing border and capital
controls. The Schengen agreement and
freedom across borders was at the very basis of the Eurozone.
And now the political elite want to suspend this?
Moreover, the fact that these stories are even making it to the media tells us point
blank that the political leaders In
Indeed, the
Speaking of which, here’s another story the media has been
downplaying:
Natwest glitch: RBS chief Stephen Hester faces
pressure to explain fault to public
Stephen Hester, the chief executive of Natwest
owner the Royal Bank of Scotland, was under pressure last night to give a
public account of the breakdown of the bank’s computer systems as politicians
and small businesses attacked the bank’s failures and the crisis entered its
sixth day.
Mr Hester admitted yesterday
in an email to staff that RBS was not “out of the woods” with the bank drafting
in thousands of staff over the weekend to try to deal with the issue. It now
looks likely that the cost of the bank’s technical problems will run into tens
of millions of pounds.
In his first public statement over the disruption to 12 million
business and personal customer accounts of both RBS and its subsidiary,
NatWest, which began on Tuesday night, Mr Hester told
the bank’s staff that there was “more hard work ahead”.
In a confidential message sent to those working this weekend, a
copy of which was seen by The Sunday Telegraph, Mr
Hester said: “Behind the scenes, we are making progress on our task to clear
the backlog of payments.”
That is correct, 12 million RBS customers
have been shut out of their accounts and ATM withdrawals for SIX days due to a “glitch.”
REALLY?
Let’s be blunt, the EU banking system is a $46 trillion toxic
sewer filled with PIIGS debt. Even the ECB’s is not
immune to this mess: over a quarter of its balance sheet is comprised of this garbage.
This is why the ECB freaked out and pumped so
much money into the EU banking system. You don’t spend over $1 trillion in nine
months unless something very very bad is coming down
the pike. The fact countries are now actively putting together contingency
plans to get their citizens out
of EU should give you an idea of how fragile the entire system is over there.
Yes, they political leaders will try to float various ideas on how they’ll “solve”
the problems, but the reality is that there simply isn’t enough capital
available to prop up the system. And the market is starting to realize this
(see the yields on Italian and Spanish bonds as well as those countries
respective CDS).
So if you’re not already taking steps to prepare for the coming
collapse of the EU, you need to do so now. We have at most a few months and
possibly just a few weeks before the EU Crisis comes to a head.
With that in mind, I’ve begun positioning subscribers of my Private Wealth
Advisory for this very possibility. We’ve already
locked in over 30 winning trades this year by finding “out of the way”
investments few investors know about and timing our positions to benefit from
the various developments in
