June 6, 2012 By gpc1981
http://albertpeia.com/eufinished.htm
{ The following
is an excerpt from my (Summers’) latest issue of Private
Wealth Advisory. In it I outline
two key developments in Europe
which virtually NO ONE is talking about: the creation of border controls and
capital controls. The political elite are doing this for only one reason: they
know it’s GAME OVER in the EU. To learn more about Private
Wealth Advisory and
how it can help you make money in any market… Click
Here Now! }
‘The EU in its current form is finished. Done. Game Over. I’ve been saying this for months. But it’s
a fact. Europe has literally run out of money.
Indeed, the ECB’s interventions are now not only
toxic for those participating in them (those banks taking money via the LTRO
have been crushed in the credit market) but are losing their impact (LTRO
bought only one month of market gains).
Again, the EU is finished. And the powers that be
know this. Indeed, the following should give you an idea of how serious things are getting:
A Vote of
No Confidence in Europe
Germany and France’s
joint proposal to allow Schengen-zone countries to
temporarily reintroduce border controls as a means of last resort might sound
harmless. But doing so would damage one of the strongest symbols of European
unity and perhaps even contribute to the EU’s demise.
Germany and France
are serious this time. During next week’s meeting of European Union interior
ministers, the two countries plan to start a discussion about reintroducing
national border controls within the Schengen zone. According to the German daily Süddeutsche
Zeitung, German Interior Minister Hans-Peter
Friedrich and his French counterpart, Claude Guéant,
have formulated a letter to their colleagues in which they call for governments
to once again be allowed to control their borders as “an ultima
ratio” — that is, measure of last resort — “and for a limited period of time.”
They reportedly go on to recommend 30-days for the period.
http://www.spiegel.de/international/europe/german-and-french-proposal-for-border-controls-endangers-european-unity-a-828815.html
This story has been almost completely ignored by the mainstream media. Let me
ask you this… do you think Germany
and others are really concerned
about an influx of migrants? Of course not, the whole idea is ridiculous. Italy was supposedly upset
about 25,000 migrants from North
Africa… Italy has a population of 65
MILLION!
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 Spain and Greece
and know that when the big Crash comes similar runs will occur throughout the
EU.
Consider the following story and you’ll see what I mean:
Swiss eye
capital controls if Greece
goes
The Swiss
National Bank is considering imposing capital controls on foreign deposits if Greece leaves the euro, as
the franc comes under heavy demand from investors seeking a haven in Europe.
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
Potential border controls in the EU and capital
controls in safe haven Switzerland
to stop inflows of funds? If that doesn’t tell you point blank that the
political elite in the EU are scared stiff, nothing will.
Indeed, Germany has made a massive
power grab to control most of Europe’s
finances… but under one condition: it be given access to other members’ gold reserves as collateral.
Europe’s
debtors must pawn their gold for Eurobond Redemption
Southern
Europe’s debtor states must pledge their gold reserves and national treasure as
collateral under a €2.3 trillion stabilisation plan
gaining momentum in Germany.
The German scheme — known as the European Redemption
Pact — offers a form of “Eurobonds Lite” that can be
squared with the German constitution and breaks the political logjam. It is a
highly creative way out of the debt crisis, but is not a soft option for Italy, Spain, Portugal,
and other states in trouble.
The plan is drafted by the German Council of Economic
Experts and inspired by Alexander Hamilton’s Sinking Fund in the United States
— created in 1790 to clean up the morass of debts left by the Revolutionary
War. Flourishing Virginia
was comparable to Germany
today…
The plan splits the public debts of EMU states.
Anything up to the Maastricht
limit of 60pc of GDP would remain sovereign. Anything over 60pc would be transfered gradually into the redemption fund. This would be covered by joint bonds.
Italy would
switch €958bn, Germany
€578bn, France
€498bn, and so forth. The total was €2.326 trillion as of November but is
rising fast as Europe’s slump corrupts debt
dynamics. The sinking fund would slowly retire debt over twenty years, using
designated tithes akin to Germany’s
“Solidarity Surcharge”.
In
effect, Germany
would share its credit card to slash debt costs for Italy, Spain
and others. Yet it is the exact opposition of fiscal union.
While eurobonds are a federalising
catalyst, the fund would be temporary and self-extinguishing. “The fund is a
return to the discipline of Maastricht
with sovereign control over budgets,” said Dr Benjamin Weigert,
the Council of Experts’s general-secretary…
The fund implies a big sacrifice for Germany.
Its interest costs on joint debt would be much higher than today’s safe-haven
rate of 1.37pc on 10-year Bunds. Jefferies Fixed Income says it would cost
0.6pc of German GDP annually. The Council of Experts — or `Five Wise Men’ —
argue that this would be modest compared to the growth adrenaline of rescusitating monetary union.
Yet it is not charity either. One official said a key
motive is to relieve the European Central Bank of its duties as chief
fire-fighter. “We have got to get the
ECB out of the game of distributing money, and separate fiscal and monetary
policy. Germany has only two votes on the ECB Council and has no way to control
consolidation,” he said.
Germany
would have a lockhold over the fund, able to enforce
discipline. Each state would have to pledge 20pc of their debt as collateral.
“The assets could be taken from the country’s currency and gold reserves. The
collateral nominated would only be used in the event that a country does not
meet its payment obligations,” said the proposal.
http://www.telegraph.co.uk/finance/financialcrisis/9298180/Europes-debtors-must-pawn-their-gold-for-Eurobond-Redemption.html
Folks, the EU End Game is now officially in play. Germany
has played its hand: if you want us to foot the bill we want your Gold. This
tells us:
1) Germany is aware that most
EU Sovereign bonds and paper are garbage (this is confirmed by the fact that Germany
has passed legislation allowing its own banks to dump EU Sovereign bonds into a
bailout fund during a Crisis).
2) Germany
will only put up more money if it’s granted fiscal control of the EU and Gold bullion as collateral.
3) Germany is the REAL
monetary power in Europe
(not the ECB).
I believe this is Germany’s
final push for EU control. If this fails and Germany ceases to offer additional
bailout funds in some form then the EU will collapse (as noted earlier, the
ECB, IMF, and US Fed cannot prop the EU up nor will the ESM mega bailout fund
work). Spain’s literally on the verge of seeing a bank
holiday. Germany
is the only one who might have
the funds to prop it up. And Germany
wants gold.
In plain terms, the EU will likely not last through
the summer. It’s literally GAME OVER time. Various proposals will crop up (such
as Germany’s “cash for Gold”
program), but no one (not even Germany)
actually has the funds to support the avalanche of banking failures that is
coming.
THIS is why various countries are moving to put
border and capital controls in place. They know the game is up. It’s now just a
matter of time before things go from ugly to truly disastrous.
With that in mind, I’m already positioning
subscribers of Private Wealth Advisory for the upcoming EU collapse.
Already we’ve seen gains of 6%,
9%, 10%, even 12% in less than two weeks by placing
well-targeted shorts on a number of European financials.And
we’re just getting started. Indeed, we just closed our 63rd straight winner
last week: an 8% gain.So if you’re looking for the means
of profiting from what’s coming, I highly suggest you consider a subscription
to Private Wealth Advisory. We’ve locked in 63 straight
winning trades since late July (thanks to the timing of our trades), and
haven’t closed a single losing trade since that time.To
learn more about Private Wealth Advisory and how it
can help you make money in any market…Click
Here Now!!!Best Regards,Graham Summers,Chief
Market Strategist,Phoenix
Capital Research’