http://albertpeia.com/theresnoengineforglobalgrowth2.htm
[ http://albertpeia.com/moreqesayfraudsonwallstreet.htm
{ Riiiiight! Anything but reality that would thwart their daily fraud,
churn-and-earn national debacle. Actually, I think it’s more for the ‘sell the
sizzle’ part of their ubiquitous fraud; that fraud inducing ‘hopium thing’ that’s
been great for their high frequency algo trade frauds that the rest of the
nation/world pays for. What’s really required is prosecution of these huge
frauds, incarceration of and disgorgement and fines for the perps, without
exception! } ]
‘Yesterday we assessed how China will not longer
be an engine for economic growth going forward. Today we look at Europe.
The world continues to believe that Europe is
somehow savable. The reality is Europe is in worse shape than most people can
imagine. Case in point, Spaniards took €75 billion out of Spanish banks in
July. Why is this a big deal? The entire Spanish banking system’s market cap
is just €114 billion!!!!
Fears Rising, Spaniards Pull Out Their Cash and Get Out of Spain
In July, Spaniards withdrew a record 75
billion euros, or $94 billion, from their banks — an amount equal to 7 percent of the country’s overall
economic output — as doubts grew about the durability of Spain’s financial
system.
The withdrawals accelerated a trend that began
in the middle of last year, and came despite a European commitment to pump up
to 100 billion euros into the Spanish banking system. Analysts will be watching
to see whether the August data, when available, shows an even faster rate of
capital flight.
More disturbing for Spain is that the flight is
starting to include members of its educated and entrepreneurial elite who are
fed up with the lack of job opportunities in a country where the unemployment
rate touches 25 percent.
According to official statistics, 30,000
Spaniards registered to work in Britain in the last year, and analysts say that
this figure would be many multiples higher if workers without documents were
counted. That is a 25 percent increase from a year earlier.
http://www.cnbc.com/id/48889555
As I’ve stated many times before, Spain is an
absolute disaster. The Prime Minister denied needing a bailout for weeks, then
demanded €100 billion in one week, procured the funds and went to see a soccer
match (no joke).
Now he’s openly threatening the ECB. Not a good
idea when your entire banking system is on life support to the tune of €300
billion+ from the ECB.
Spanish PM Rajoy challenges the European
central bank and Germany
Spain will consider seeking extra aid from
Europe on top of a 100 billion Euro rescue of its financial sector but does not
see any need for new conditions, Prime Minister Mariano Rajoy said in an
interview published in European newspapers.
That one paragraph says it all: give me more
money with no conditions.
This is coming from a man who demands €100
billion in bailout funds, threatens to blow up the EU, and then goes to watch
a soccer match once he’s got the money.
However, in some ways you can’t blame Rajoy for
this attitude as it appears to be endemic for Spanish politicians:
Catalonia asks for €5bn bailout from Spain
Spain’s north-eastern region of Catalonia,
which represents around a fifth of the country’s economic output, will tap a
state liquidity facility for just over €5bn, a spokeswoman for the region’s
economy head has said.
We will not accept political conditions
for the aid,” she added. Of
Spain’s 17 regions, Valencia and Murcia have also said they would need recourse
to the fund.
Again, give me more money with no conditions.
Simply incredible.
Meanwhile, pretty much all of Europe is in
recession now, including Germany. True, the ESM bailout fund has been ratified…
but the question remains who
actually has funds to support it (Spain and Italy are meant to supply 30% of
its funding… and they’re the ones who will be requesting a bailout!).
So don’t count on Europe providing an economic
growth to speak of. Which means… all that’s left is the US. And we’ll be
assessing that situation in tomorrow’s article.
In the meantime, I want to alert you to a very
frightening development… that of stagflation: the combination of low or no
economic growth combined with higher inflation.
This is an extremely dangerous combination. And
investors need to prepare for it in advance if they want to maintain their
portfolios.
On that note, I’ve recently detailed four
special inflation investments designed the profit from stagflation. These are
unique investments that will outperform even Gold and Silver as inflation takes
off…
Case in point, two of them are up 8% and 10%
last week alone. And I expect all of them to be much higher in the coming
months.
To find out what they are… and take action to
prepare yourself and your portfolio to face the coming Inflationary Storm, I
highly recommend taking out a subscription to my Private Wealth
Advisory newsletter.
To learn more about Private Wealth
Advisory and find out
more about our Special Inflation Portfolio comprised of extraordinary inflation
hedges that 99% of investors don’t even know about…
Phoenix Capital Research’