Saturday, November 27, 2010

Empty the Piggy Bank

Greece then Ireland, Portugal then Spain? How many countries in the Eurozone will need a bail out? Can the Eurozone start massive money printing (quantitative easing) like the USA has to "pay" for all these bailouts? As of now it sounds like the Eurozone has a "piggy bank" with some actual saved money in it to bail out some of the tinier countries....but if Spain goes....the piggy bank may get totally shattered. Then what?

Portugal has been told to apply for a rescue from the EU bail-out fund lest Spain be sucked into the vortex, according to reports in German media.

The European Central Bank and a majority of member states in the eurozone are laying heavy pressure on the narrow Iberian nation to be the third country to tap the European Financial Stability Facility, according to a report based on unnamed sources in the Financial Times Deutschland.

European leaders and a number of analysts fear that should Portugal default, Spain too would be dragged down. While the debts of Greece, Ireland and Portugal are thought to so far be manageable, Spain would empty the eurozone's emergency piggy bank.

See it here; http://euobserver.com/9/31362

So....if the USA has no REAL money and is printing it for our daily bills....and the Eurozone ends up with a broken piggy bank and has no real money left to pay its daily bills....what will the outcome be?

It sure seems possible the entire Western world may soon need a bailout from the lender of last resort...THE INTERNATIONAL MONETARY FUND.

Wow! That sure sounds like it could be the start of a one-world-currency...doesn't it?

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