The following reports prove that the Global Financial System is quickly unraveling and though most people think that what is happening in Greece and Europe or India and China has no bearing on their lives, nothing could be further from the truth. The death of the present Global Financial and Economic Systems will devastate nations across the Globe, and it will be especially painful for those in developed countries who have become accustomed to modern life with all its conveniences and cheap food, energy and all the comforts of modern life. In many cases it will literally mean a throw back to the Dark Ages as this catastrophe plays out. Those who are watching and are aware of what's going must make self - sufficiency a very high priority in their lives. The sheer magnitude of the Debt parasite that is stalking the Global Economy is so huge that there is no possible way to keep this beast fed; what the beast feeds on is more debt and more debt which in turn kills the host, which are , corporations and nations. So rather than have the parasite (The Banking System) destroy the host, the Banking System itself should be killed and the host saved. That is unlikely to happen, so how dramatically the world will change for us will become apparent in coming days and months, not years. However the repercussions will be felt for years and generations.
Published: Monday, 12 Sep 2011 | 5:21 AM ET/ By: Patrick Allen - CNBC EMEA Head of News
Carl Weinberg, the chief economist at High Frequency Economics is very worried about Europe. His central forecast is that the debt crisis will lead Europe into a depression that will mean soaring unemployment, deflation and zero interest rates for the foreseeable future.
After months of inaction, Weinberg believes the time to stop a Greek default has now passed. He believes that once it becomes clear that Greece has defaulted, the market will quickly come to the realization that other euro zone members like Portugal, Ireland, Spain and Italy will be allowed to fail as well.
German minister raises ‘orderly default’ for Greece
Germany has stepped up its rhetoric against Greece, warning that the debt-laden country could default on its debts in a move that highlights the growing divisions at the heart of Europe.
Philipp Roesler, Germany’s economy minister, said an “orderly default” for Greece could no longer be ruled out and branded the country’s deficit-reduction measures “insufficient”.
The warning is likely to spook financial markets further and comes despite Greece yesterday announcing a fresh €2bn (£1.7bn) of budget cuts and the introduction of a country-wide real estate tax.
Evangelos Venizelos, the finance minister, said the cuts and tax measure were necessary to allow Greece to meet obligations demanded by the European Union and IMF in exchange for bail-out funds.
Writing in the Die Welt newspaper, Mr Roesler said: “To stabilise the euro, we must not take anything off the table in the short run. That includes as a worst-case scenario an orderly default for Greece if the necessary instruments for it are available.”
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Global Stock Selloff to Continue on EU Debt Crisis: Experts
Published: Monday, 12 Sep 2011 | 4:16 AM ET By: Deepanshu Bagchee
Supervising Digital Editor, CNBC Asia
Supervising Digital Editor, CNBC Asia
Major Asian stock markets dropped between 2 and 4 percent on Monday after the resignation of European Central Bank’s de facto chief economist Juergen Stark heightened uncertainty for investors. A number of analysts and investors told CNBC they forecast a further global selloff given a lack of clear policy solutions from Europe.
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