bobbyw24
10-16-2009, 05:06 AM
Next Wave of Banking Crisis to come from Eastern Europe
F. William Engdahl
One day soon before you even have your morning orange juice you'll find Gold up $150 and Silver $3 up in one day. There are no safe haven paper monies to which you can hide. Physical gold and silver are the only monies with no counter-party risk. Beware the ETFs. Like the COMEX, and "pooled" storage accounts they are paper pyramids. Now, there is  widespread disbelief that the US Treasury still owns the Gold Treasury stock it says it does. US Dollar perched just above 75, and a drop to below 72 will trigger a panic OUT of the dollar. People will demand in-hand gold and silver at any price. Coordinated government currency interference will be a short-term fix, but unable to stem the tide. America cannot withstand another two years of domestic defeats, so this congress must go in 2010. No leadership can be this ignorant of economic matters, consequently our economic and sovereign peril must be deliberate.
European banks face an entirely new wave of losses in coming months not yet calculated in any government bank rescue aid to date. Unlike the losses of US banks which derive initially from their exposures to low-quality sub-prime real estate and other securitized lending, the problems of western European banks, most especially in Austria , Sweden and perhaps Switzerland arise from the massive volumes of loans they made during the 2002-2007 period of extreme low international interest rates to clients in eastern European countries.
The problems in Eastern Europe which are just now emerging with full force are, if you will, an indirect consequence of the libertine monetary policies of the Greenspan Fed from 2002 until 2006, the period where Wall Street's asset backed securitization Ponzi Scheme took off.
The riskiness of these eastern European loans is now coming to light as the global economic recession in both east and west Europe is forcing western banks to pull back, refusing to renew loans or 'rollover' the credits, leaving thousands of borrowers with unpayable loan debts. The dimension of the eastern European emerging loan crisis pales anything yet realized. It will force a radical new look at the entire question of bank nationalizations in coming weeks regardless what nice hopes politicians in any party entertain.
Moody's Rating Service has just announced it 'might' downgrade a number of western European banks with large exposures to eastern Europe. On the report, the Euro fell to 2 and a half month lows against the dollar.
The Moodys report mentioned especially banks in eastern Europe
http://www.silverbearcafe.com/private/10.09/nextwave.html
F. William Engdahl
One day soon before you even have your morning orange juice you'll find Gold up $150 and Silver $3 up in one day. There are no safe haven paper monies to which you can hide. Physical gold and silver are the only monies with no counter-party risk. Beware the ETFs. Like the COMEX, and "pooled" storage accounts they are paper pyramids. Now, there is  widespread disbelief that the US Treasury still owns the Gold Treasury stock it says it does. US Dollar perched just above 75, and a drop to below 72 will trigger a panic OUT of the dollar. People will demand in-hand gold and silver at any price. Coordinated government currency interference will be a short-term fix, but unable to stem the tide. America cannot withstand another two years of domestic defeats, so this congress must go in 2010. No leadership can be this ignorant of economic matters, consequently our economic and sovereign peril must be deliberate.
European banks face an entirely new wave of losses in coming months not yet calculated in any government bank rescue aid to date. Unlike the losses of US banks which derive initially from their exposures to low-quality sub-prime real estate and other securitized lending, the problems of western European banks, most especially in Austria , Sweden and perhaps Switzerland arise from the massive volumes of loans they made during the 2002-2007 period of extreme low international interest rates to clients in eastern European countries.
The problems in Eastern Europe which are just now emerging with full force are, if you will, an indirect consequence of the libertine monetary policies of the Greenspan Fed from 2002 until 2006, the period where Wall Street's asset backed securitization Ponzi Scheme took off.
The riskiness of these eastern European loans is now coming to light as the global economic recession in both east and west Europe is forcing western banks to pull back, refusing to renew loans or 'rollover' the credits, leaving thousands of borrowers with unpayable loan debts. The dimension of the eastern European emerging loan crisis pales anything yet realized. It will force a radical new look at the entire question of bank nationalizations in coming weeks regardless what nice hopes politicians in any party entertain.
Moody's Rating Service has just announced it 'might' downgrade a number of western European banks with large exposures to eastern Europe. On the report, the Euro fell to 2 and a half month lows against the dollar.
The Moodys report mentioned especially banks in eastern Europe
http://www.silverbearcafe.com/private/10.09/nextwave.html