View Full Version : Global systemic crisis Alert - Summer 2009: The US government defaults on its debt

mick silver
24th October 2008, 11:39
In this 28th edition of the GEAB, LEAP/E2020 has decided to launch a new global systemic crisis alert. Indeed our researchers anticipate that, before next summer 2009, the US government will default and be prevented to pay back its creditors (holders of US Treasury Bonds, of Fanny May and Freddy Mac shares, etc.). Of course such a bankruptcy will provoke some very negative outcome for all USD-denominated asset holders. According to our team, the period that will then begin should be conducive to the setting up of a « new Dollar » to remedy the problem of default and of induced massive capital drain from the US. The process will result from the following five factors studied in detail further in this GEAB http://www.europe2020.org/spip.php?article565&lang=en

Pax Awalup
24th October 2008, 13:23
LEAP/E2020 hopes that the September shock has “educated” the world’s political, economic and financial policy-makers and made them understand that it is easier to act by anticipation than in a panic. It would be a pity if Euroland, Asia and oil-producing countries, as well as US citizens of course, discover one morning of summer 2009 that, after a long-week-end or bank-holiday in the US, their US T-Bonds and Dollars are only worth 10 percent of their value because a « new Dollar » has just been imposed.

hmmm... can you say Amero?

24th October 2008, 14:26
Summer of '09 is way too soon unless the dollar collapses and I don't see that happening soon either. It will take another year of falling tax revenues plus a dramatic rise in treasury yeilds and interest rates. Be at least 1Q 2010 before that happens. Also depends on how much more debt the gummint accumulates. But keep in mind that it takes time for reality to catch up.

24th October 2008, 14:48
(from the article) 2. "Thanks to its recent « political baptism », the Euro becomes a credible « safe haven » value and therefore provides a « crisis » alternative to the US dollar…

…"Financially speaking, Iceland thought of itself as UK [1], in the same way as, financially speaking, UK thought of itself as the US and the US thought of themselves as the entire world. It is therefore quite useful to study the case of Iceland [2] in order to understand the course of events that London and Washington will follow in the next 12 months."…

…on the other hand, a growing number of global players are beginning to act on their own, in reaction to the ineffectiveness of the measures advocated or implemented by the US though they are the centre of this global financial system. What happened with this first Euroland (or Eurozone) summit which took place on Sunday, October 12, 2008, and whose decisions, by their scope (close to 1,700-billion EUR) and their nature [4], resulted in a regain of confidence on financial markets from all over the world, is typical of the « post-September 2008 world…"

Hmmmm, this certainly seems to be typical of any number of self-serving Euroland articles coming from the same folks who obviously intended from the beginning to take over and circumvent the dollar's role as the worlds' Reserve Currency. The Euro was still wet off the printing presses when France specifically went to Saddam Hussein and talked him into trading Iraq's oil in Euro's rather than dollars. It's not like France was unaware that this wouldn't drive the Bush regime into a dangerous fear and panic mode, particularly since they engaged in this deceit directly after 9-11. Today the EU regularly presents themselves as "the ever so innocent bystander" who regularly points their accusing fingers at America. In truth, had the EU not enlisted Saddam as their patsy to fight their economic war games for them, it's rather doubtful that Bush would have felt justified in going to war.

And let us not forget that the other EU leader, Germany, had the unmitigated gall to bait Bush further by spreading blatant disinformation to the CIA saying that Iraq had weapons of mass destruction. With the deft slight of hand of an equally manipulative regime, the European Union suckered Bush into a war they knew he would be just stupid and maniacal enough to go for. Their press regularly denounces America as "warmongers" and repeatedly names all the various fallacies of our admittedly questionable financial system. But the EU never admits that they purposefully suckered Bush into going to war with Iraq nor do they ever admit that European Union banks also write adjustable rate mortgages, mountains of derivatives and also play the credit default swap game. Their Central Banks play exactly the same games the Federal Reserve banks play, but they have no problem blaming their economic problems on America.

Both Germany and France played a covert role that amounted to baiting the Bush Administration into starting one of the most costly and unpopular wars in all of history, but you never see the EU issuing a single press release that admits to anyone their own despicable role in the present ghastly state of affairs.

This EU article reflects exactly the same kind of self-serving hyperbole one has grown to expect from the American media.

Basically, it amounts to the pot calling the kettle black.

24th October 2008, 15:13
Wouldn't surprise me if the monetary union breaks down.