Ron Paul predicts dollar crash, Germany abandoning Italy, too big to save?

After bloodbath, Ron Paul warns of 'next bubble burst' / Texas congressman assesses damage in wake of market plunge

After the collapse of the tech, housing and financial bubbles, Paul said, the "dollar bubble" will be next. "That's going to be the big one," the Texas congressman said on the heels of yesterday's worldwide market plummet, which saw the Dow lose more than 500 points.

In response to the market bloodbath, Paul noted, investors are pouring money into treasury bills and dollars, "but that is a bubble, too."  "When the panic comes, and they leave the dollar and go into real assets, that's when the whole world knows that a new monetary system is on the horizon, because this one will not last," Paul warned.

Days like yesterday, he said, "are warning signs that that big crash is coming for the dollar." 

• WHEN THE PANIC COMES!
• BIG CRASH IS COMING FOR THE DOLLAR

No speculation here; just matter of fact conclusions that I cannot dispute, even if I wanted to do so.

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ZERO HEDGE: It Just Went From Bad To Far, Far Worse As Germany Says Italy Is Too Big For EFSF To Save, Refuses To Carry Euro Bailout Burden

Remember when we said (yesterday) that Germany will soon balk over the fact that it is pledging its entire economy to bail out an insolvent Europe? Well, that moment has come.

Dow Jones just hitting the tape referencing Spiegel

• ·         German Govt: Italy Too Big For EFSF To Save - Spiegel
• ·         German Govt: Doubts Whether Tripling EFSF Would Help It Save Italy
• ·         German Govt: Italy Must Make Savings, Reforms To Exit Crisis - Spiegel
• ·         Italy Debt Guarantee Could Raise Doubts Over Germany's Finances - Spiegel
• ·         German Govt: EFSF Should Only Help Small, Mid-Size Countries - Spiegel

As a reminder, yesterday's stopgap announcement by the ECB to expand its SMP purchases of secondary market Italian and Spanish bonds was merely as a precursor to full EFSF monetization until its comes fully online in September (or sooner) in a vastly expanded format (between €1.5 and €3.5 trillion).

If Germany is now against this, which appears to be the case, it pretty much means, well, game over.

As for those saying China will gladly step in and fund a $5 trillion EFSF shortfall, they may want to read the following article from Reuters:

Italian Economy Minister Giulio Tremonti said on Thursday that Asian investors are reluctant to buy Italian bonds because it sees they are not being bought by the European Central Bank.  Speaking at a news conference, Tremonti also said it would be desirable for the central bank to follow the lead of the Japanese and Swiss central banks in taking expansionary steps to tackly the euro zone's crisis. "I note that the Bank of Japan today launched quantitative easing and the Swiss cen bank cut rates to zero, we are waiting for decisions if possible, but desirable (from the ECB)," Tremonti said. When you talk to Asia they say: "We don't understand what Europe is," he continued. "The second point is that they say 'if your central bank doesn't buy your bonds, why should we buy them"?

I have said repeatedly that the Economic problems that are facing the world will never be fixed, for if the Powers that be intended to fix them, they would never have allowed the problems to arise in the first place. The game has always been to destroy the world Economy to bring in a totalitarian one world government. This is the real reason why the CRISIS keeps on escalating from one big problem to an even bigger one that no one in power seems to foresee. Yet people go about their merry way, chewing gum, spitting tobacco and slinging beers; the time of bitter tears is at hand yet people make merry!

Isaiah 22:12 And in that day did the Lord GOD of hosts call to weeping, and to mourning, and to baldness, and to girding with sackcloth: 13 And behold joy and gladness, slaying oxen, and killing sheep, eating flesh, and drinking wine: let us eat and drink; for tomorrow we shall die.