Amid the talk of Brexit, there is little discussion of the prospects for the EU remaining intact. The first casualty of the European "project" is likely to be the Euro.

Massive Cascade of Eurozone Defaults Coming Up

  1. No fiscal union: No currency union without a fiscal union has ever survived
  2. Target2
  3. Treaty requires unanimous approval to make anything but a minor change
  4. Single interest rate policy cannot possibly be suitable for countries with varying degrees of productivity

There is no way to fix this mess, and no way to stop the imbalances from growing until it all blows sky high in a massive cascade of defaults (or papered over by the ECB in a treaty violation).

On Thursday last week, Daily Pickings referred to the finance curse; it is vital to understand that banking is a giant Ponzi scheme and contrary to what David Buik claims, regulation is no answer. Bank of England regulation failed to reign in the big banks following the 2008 crisis. The poachers are the gamekeepers.

Once the Euro collapses, the European Union will fall apart as recriminations and the impact of induced mass migration become untenable. There is no salvation in government; we need to organise ourselves to render the current, corrupt political economy irrelevant and thereby insulate ourselves from the coming collapse.

“You never change things by fighting the existing reality.

To change something, build a new model that makes the existing model obsolete.”

― R. Buckminster Fuller


0 #1 James Walter 2017-03-14 06:49
If you do not control your own currency, you are a vassal state. If Greece had left the currency union (not the EU), they would be in good shape today. Somehow the banksters bought off the socialist reformers.
As for the "ponzi scheme", as Dick Eastman points out regularly, the banks want more money back than they lend out - i.e., interest. Therefore the debt increases faster than they lent, requiring more lending. This causes inflation if M3 increases faster than GDP in goods and services.
Inflation targets (2%) are to low to maintain a healthy economy.
However, the fundamental flaw is capitalism which demands forever increasing consumption or a periodic bust.

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