UK Foreign Minister - Brace for riots and collapse.

[Soul Crusher]

http://www.telegraph.co.uk/news/politics/8917077/Prepare-for-riots-in-euro-collapse-Foreign-Office-warns.html

[howardroark]

A German Pope and an Italian central banker... what has this world come to?

[Soul Crusher]

A German Pope and an Italian central banker... what has this world come to?

   Three Card Monti!   

[Fury]

They could always sell their Navy, oh wait, they did. Maybe they could sell some of their landmarks….they did sell a few of them already. Maybe export their natural resources…oh, they don’t have very many. Well, its not too late to surrender to the Germans.

Fuck Europe. Bringing the entire fucking planet down with their fucking lazy, deadbeat, socialist asses. We've subsidized the defense AND healthcare costs of these cocksuckers for decades now and yet they're still bankrupt.

THE SOCIAL WELFARE STATE DOES NOT WORK. Scandinavia = anomaly.

Only a matter of time before they're killing each other in the streets again. Only reason it has been so peaceful is because we swing the biggest stick on that continent.

[Soul Crusher]

They could always sell their Navy, oh wait, they did. Maybe they could sell some of their landmarks….they did sell a few of them already. Maybe export their natural resources…oh, they don’t have very many. Well, its not too late to surrender to the Germans.

Fuck Europe. Bringing the entire fucking planet down with their fucking lazy, deadbeat, socialist asses. We've subsidized the defense AND healthcare costs of these cocksuckers for decades now and yet they're still bankrupt.

THE SOCIAL WELFARE STATE DOES NOT WORK. Scandinavia = anomaly.

This is just the appetizer until the main course hits on our debt issues.   

[Fury]

This is just the appetizer until the main course hits on our debt issues.   

I wish they would get it over with already. Doing so would force us to actually address our problems instead of perpetuating them into infinity.

[Soul Crusher]

    

[Soul Crusher]

Italy Is Closer To Collapse Than Anyone Realized, And So Is The World
Bruce Krasting, My Take On Financial Events | Nov. 27, 2011, 1:29 PM | 6,830 | 33




Some stories in European press (La Stampa - Zero Hedge link) suggest that Italy is working on a very big loan package from the IMF. I have no doubt that there are ongoing discussions. There has to be. Either someone puts a finger in the dike or Italy goes tapioca.

That thought is difficult for me to fathom. How could we be so close to the brink? At this point there is zero possibility that Italy can refinance any portion of its $300b of 2012 maturing debt. If there is anyone at the table who still still thinks that Italy can pull off a miracle, they are wrong. I’m certain that the finance guys at the ECB and Italian CB understand this. I repeat, there is a zero chance for a market solution for Italy. Either the ECB (aka Germany) steps in and underwrites the debt with some form of Euro bonds or the IMF (aka the USA) steps in with some very serious money.

I have acknowledged in recent articles that I misread the Italian story. I didn't see this coming at the pace that it has. Italian bond yields more than doubled in a month. I was not alone in this very big misread. I believe it has caught everyone flatfooted. Central bankers and finance officials all over the globe are crapping in their pants.

I think the Italian story is make or break. Either this gets fixed or Italy defaults in less than six months. The default option is not really an option that policy makers would consider. If Italy can’t make it, then there will be a very big crashing sound. It would end up taking out most of the global lenders, a fair number of countries would follow into Italy’s vortex. In my opinion a default by Italy is certain to bring a global depression; one that would take many years to crawl out of. The policy makers are aware of this too.

So I say something is brewing. And yes, if there is a plan in the works it must involve the IMF. And yes, it’s going to be big.

Please do not read this and conclude that some headline is coming that will make us all feel happy again. I think headlines are coming. But those headlines are likely to scare the crap out of the markets once the implications are understood.

In the real world of global finance the reality is that any country that is forced to accept an IMF bailout is also blocked from issuing debt in the public markets. IMF (or other supranational debt) is ALWAYS senior to other indebtedness of the country. That’s just the way it works. When Italy borrows money from the IMF it automatically subordinates the existing creditors. Lenders hate this. They will vote with their feet and take a pass at Italian new debt issuance for a long time to come. Once the process starts, it will not end. There will be a snow ball of other creditors. That's exactly what happened in the 80's when Mexico failed; within a year two dozen other countries were forced to their debt knees. (I had a front row seat.)

I don’t see a way out of this box. The liquidity crisis in Italy is scaring us to death, the solution will almost certainly kill us.

Note:
The news announced last week where the IMF is providing EU countries a new "crisis" lending facility equal to 5Xs their IMF quota is a joke. What has been offered is a drop in the bucket against what is required. The La Stampa story today and this discussion are about something separate and distinct. What would be required is a step without precedent. It would dwarf what the IMF put forward just a few days ago.

Please follow Money Game on Twitter and Facebook.



Read more: http://brucekrasting.blogspot.com/2011/11/italy-next-week.html#ixzz1ewboJj7Q

[Soul Crusher]

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Germany, France examine radical push for eurozone integration (possible *10* core nations)
Reuters ^ | Sun Nov 27, 2011 5:58pm EST | Luke Baker and Julien Toyer
Posted on November 27, 2011 6:37:01 PM EST by Olog-hai

Germany and France are exploring radical methods of securing deeper and more rapid fiscal integration among eurozone countries, aware that getting broad backing for the necessary treaty changes may not be possible, officials say.

Germany's original plan was to try to secure agreement among all 27 EU countries for a limited treaty change by the end of 2012, making it possible to impose much tighter budget controls over the 17 eurozone countries—a way of shoring up the region's defenses against the debt crisis. But in meetings with EU leaders in recent weeks, it has become clear to both German Chancellor Angela Merkel and French President Nicolas Sarkozy that it may not be possible to get all 27 countries on board, EU sources say. …

"The goal is for the member states of the common currency to create their own Stability Union and to concentrate on that," German Finance Minister Wolfgang Schäuble told ARD television on Sunday.

Another option being explored is a separate agreement outside the EU treaty that could involve a core of around 8-10 eurozone countries, officials say. …

By threatening that some countries could be left behind if they don't sign up to deeper integration, it may be impossible for a country to say no, fearing that doing so could leave it even more exposed to market pressures. …

(Excerpt) Read more at reuters.com ...

TOPICS: Business/Economy; Crime/Corruption; Foreign Affairs; Germany; Click to Add Topic

[Soul Crusher]

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Should the Fed save Europe from disaster?
The Telegraph ^ | 11/27/2011 | Ambrose Evans-Pritchard
Posted on November 27, 2011 7:09:05 PM EST by bruinbirdman

The dam is breaking in Europe. Interbank lending has seized up. Much of the financial system is paralysed, setting off a credit crunch just as Euroland slides back into slump.



The Euribor/OIS spread or`fear gauge’ is flashing red warning signals. Dollar funding costs in Europe have spiked to Lehman-crisis levels, leaving lenders struggling frantically to cover their $2 trillion (£1.3 trillion) funding gap.

America’s money markets are no longer willing to lend to over-leveraged Euroland banks, or only on drastically short maturities below seven days. Exposure to French banks has been slashed by 69pc since May.

Italy faces a “sudden stop” in funding, forced to pay 6.5pc on Friday for six-month money, despite the technocrat take-over in Rome.

German Bund yields have risen to 59 basis points above Swedish bonds since Wednesday’s failed auction. German debt has been relegated suddenly against Swiss, Nordic, Japanese, and US debt. As the Telegraph reported two weeks ago, Asian central banks and sovereign wealth funds are spurning all EMU bonds because they have lost confidence in a monetary system with no lender of last resort, coherent form of government, or respect for the rule of law.

Even if EU leaders could agree on fiscal union and joint debt issuance – which they can’t – such long-range changes cannot solve the immediate crisis at hand. The push for treaty changes has become a vast distraction

(Excerpt) Read more at telegraph.co.uk ...

[Soul Crusher]

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Banks Build Contingency for Breakup of the Euro
NY Times ^ | November 25, 2011 | By LIZ ALDERMAN
Posted on November 27, 2011 12:58:19 AM EST by DeaconBenjamin

For the growing chorus of observers who fear that a breakup of the euro zone might be at hand, Chancellor Angela Merkel of Germany has a pointed rebuke: It’s never going to happen.

But some banks are no longer so sure, especially as the sovereign debt crisis threatened to ensnare Germany itself this week, when investors began to question the nation’s stature as Europe’s main pillar of stability.

On Friday, Standard & Poor’s downgraded Belgium’s credit standing to AA from AA+, saying it might not be able to cut its towering debt load any time soon. Ratings agencies this week cautioned that France could lose its AAA rating if the crisis grew. On Thursday, agencies lowered the ratings of Portugal and Hungary to junk.

While European leaders still say there is no need to draw up a Plan B, some of the world’s biggest banks, and their supervisors, are doing just that.

“We cannot be, and are not, complacent on this front,” Andrew Bailey, a regulator at Britain’s Financial Services Authority, said this week. “We must not ignore the prospect of a disorderly departure of some countries from the euro zone,” he said.

Banks including Merrill Lynch, Barclays Capital and Nomura issued a cascade of reports this week examining the likelihood of a breakup of the euro zone. “The euro zone financial crisis has entered a far more dangerous phase,” analysts at Nomura wrote on Friday. Unless the European Central Bank steps in to help where politicians have failed, “a euro breakup now appears probable rather than possible,” the bank said.

(Excerpt) Read more at nytimes.com ...

[Soul Crusher]

http://www.shtfplan.com/headline-news/governments-request-contingency-planning-for-extreme-scenarios-including-rioting-and-social-unrest_11272011




Prepare.   Just gave my buddy three of my guns to sell to trade for a Socom 16.   Better quality over quantity. 

[JBGRAY]

Nothing like a nice enema to clean those Muzzies and other undesirables out.

[tu_holmes]

They could always sell their Navy, oh wait, they did. Maybe they could sell some of their landmarks….they did sell a few of them already. Maybe export their natural resources…oh, they don’t have very many. Well, its not too late to surrender to the Germans.

Fuck Europe. Bringing the entire fucking planet down with their fucking lazy, deadbeat, socialist asses. We've subsidized the defense AND healthcare costs of these cocksuckers for decades now and yet they're still bankrupt.

THE SOCIAL WELFARE STATE DOES NOT WORK. Scandinavia = anomaly.

Only a matter of time before they're killing each other in the streets again. Only reason it has been so peaceful is because we swing the biggest stick on that continent.

Scandinavia actually has some resources, low populations, and they don't go around chucking wasteful money at wars and shit.

That's why they are still solvent.