http://albertpeia.com/spainswarningofsystemcollapse.htm
‘At this point it is clear that Europe is totally finished. The
house is burning. It’s just a matter of time before it collapses.
Indeed, we get a clear signal of this from Spanish Prime Minister
Mariano Rajoy, who just announced the following: “It is not enough, there
are no green shoots, there is no spring.”
To understand the significance of this statement, you need to know
a bit more about Rajoy and European politics in general.
Rajoy is the same political leader who, throughout 2012, stated
time and again that the Spanish banking system was in great shape. Indeed, he
was still claiming, “there will be no rescue of the Spanish banking sector,” a
mere week before Spain’s entire banking system collapsed.
Rajoy then demanded a €100 billion bailout from the EU
(Spain’s entire banking market cap is just a little over this). It was only
then that he admitted that 2012 would be a “bad year.” Of course, he also
claimed that the bailout was a “triumph” and celebrated by hopping a plane to
watch Spain’s soccer team play Poland, but that’s a story for another time.
Given that Rajoy has only admitted Spain is screwed at times when
the entire system is going under, we have to ask ourselves… How BAD are things
that he just admitted, “there are no green shoots, there is no spring”?
The short answer: HORRIFIC.
Spain only just squeaked through 2012 by using 90% of its social
security fund to buy Spanish debt. The country now has over €200 billion in new
debt to issue in 2013.
Where on earth Spain will get this money from remains to be seen,
given that even Spanish banks became net sellers of Spanish debt last year as
they sold assets to return money to fleeing depositors.
Indeed, the country now is attempting to find idiots, I mean
investors, in the US, by offering a Dollar-denominated bond. After all, who wouldn’t
want to invest in a country where the formal bailout fund is tapped dry, social
security is tapped dry, and banks still have negative value?
At the end of the day, we all know how this mess will end: Spain
will default which will suck several hundred billion Euros worth of collateral
out of the system at which point we’ll experience a Lehman-type event times
ten.
What happens between then and now is anyone’s guess. But the fact
that Rajoy is admitting “there are no green shoots, there is no spring”
indicates that things are likely about to get very ugly once again.
You can choose to ignore this and believe that Europe’s Crisis is
fixed just as EU political leaders claim. But Europe in general is out of options
in terms of solving its debt crisis. The only thing that held things together
in 2012 was the promise of unlimited bond buying by ECB President Mario Draghi…
but then again this “buying” would only come with a formal request for a
bailout, rampant austerity measures, and a look at the books for any country
requesting it
Trust me, Spain doesn’t want ANYONE taking a closer look at its
books.
So if you have not already taken steps to prepare for systemic
failure, you NEED to do so NOW. We’re literally at most a few months, and very
likely just a few weeks from Europe’s banks imploding, potentially taking down
the financial system with them. Think I’m joking? The Fed is pumping hundreds
of BILLIONS of dollars into EU banks right now trying to stop this from
happening.
I’ve already alerted Private Wealth Advisory subscribers to 6 trades that will all produce HUGE profits as this
mess collapses.
We’ve also taken steps to prepare our loved ones and personal
finances for systemic risk with my Protect Your Family, Protect Your Savings, and Protect Your Portfolio
Special Reports.
With a total of 20 pages, these reports outline:
1) how to prepare for bank holidays
2) which banks to avoid
3) how much bullion to own
4) how much cash is needed to get through systemic
crises
5) how much food to stockpile, what kind to get,
and where to get it
And more…
I can do the same for you. All you need to do is take out a
subscription to my Private Wealth Advisory newsletter.
You’ll immediate be given access to the Private Wealth Advisory archives, including my Protect Your Family,Protect Your Savings, and Protect Your Portfolio
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You’ll also join my private client list in receive my bi-weekly
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To take out an annual subscription to Private
Wealth Advisory now and start
taking steps to insure your loved ones and personal finances move through the
coming storm safely…’
Best Regards,
Graham Summers