I like to make predictions. I feel comfortable at this time, after reading the latest figures from the PIIGS (Portugal, Italy, Ireland, Greece, Spain) to predict the economic collapse of the Euro and European Union. Here’s the breakdown.
- Portugal will begin to collapse by the summer. A bailout for something like 70 billion euros will likely be handed over but the damage at that point will already be done. The bailout will only temporarily stop the bleeding. Portugal will remain a toxic debt hole. Unfortunately as I am Portuguese.
- Spain will come next, and this is the big one. They will need a bailout. The problem is Spain will need something twice the size of Portugal. The euro will continue to decline. If the bailout is given Europe will feel the shock. These figures and methods are not sustainable. The inflation of the Euro along with the political unrest from citizens who will feel the shock will bring a great instability to the country.
- The European Central Bank will not abandon their fiat money scheme because a commodity based currency will not let them fund their world conquest budgets and social programs. Why? Because you can’t inflate gold and silver. The price of oil will spike beyond anything seen before. Not because oil has become more expensive but because the money they are using to buy the oil is now worth less and less. Imagine trying to buy oil with lint… you would need a lot of lint, haha.
- Europe will have no choice but to eventually abandon the Euro and the European Union will disband. The countries who wish to survive will bring their own money back to existence and attempt to rebuild. The social impact will be intense.
Where I remain unsure is the impact here in the States. While I have called for the dollar collapse for some time I can’t give a time frame. Europe is in a lot of trouble. Right now much more than the US. If Europe does collapse the US will suffer greatly. What I do think will happen is the toxic debt will be sold at discount. That is the point where countries with better economies can and will come in to buy it up.
At this point many countries will in theory own other countries. China could and will theoretically buy up entire countries on paper of course. These actions from an investment standpoint are brilliant. China has its own currency issues but they are nearing gold standard levels of gold reserves. Something like $6B until they have enough gold reserves to cover every yuan? If China turns on a gold standard you might as well kill yourself haha! What good are your weak little slivers of cotton?
Much remains to be seen in terms of the US but Europe is headed for disaster. If Portugal receives the bailout I have no doubt the chain-reaction will pan out close to what I’ve said above. If you are in the Euro for investment get out now!
Greece is already a debt hole, nothing more can be said. It will eventually collapse completely. Same goes for Ireland. Things don’t look good here people. Keep an eye on Europe. Don’t say I didn’t warn you! Hang in there and enjoy the ride.
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