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The World Debt Situation Worsens

by Jim ONeil on July 4, 2011

in uk banks

The global debt crisis continues, with many countries seemingly going broke. Speculators are placing bets on the order in which national financial systems will collapse. Central Banks have done what they can are now falling behind.

We took a brief break from the financial crashes but we now seem to be headed back down this path again.

Media outlets spin things so consumers think everything is fine. In reality, markets are collapsing and many are highly leveraged. Except those for oil and gold, which seem to be relatively steady.

In the credit default swapping market, the bets surround who will go bankrupt and this wagering pertains to entire countries, not individual businesses.

The weakest countries will collapse first and the largest downfall will be the U.S. dollar. The U.S. is in no position to do another multi-million dollar bailout. Looking closer to home, we are edging closer to another Euro crisis.

Greece has put France and Germany in an uncomfortable position. If every country that finds itself in trouble does not receive a bailout, credit default swaps drag down banks worldwide.

Banks in France, Germany, and the U.S. will falter if either Spain or Greece default. Many predict that within two years, both the U.S. dollar and the euro will go into crisis mode. Some even anticipate the development of a global monetary system.

The final bailout may come from the tax deferred savings of consumers in Western countries.

The EU, Greece, and the euro are all hostages in this ongoing financial crisis. Without the ability to get loans, debt continues to mount for Greece. Many wonder whether the euro can survive through the summer.

If Greece or Spain are not successfully bailed out, the situation may reach red-alert status and there will be no countries able to provide loans to those with even greater need.

RayHere

Restall the Chinese Exclusion Act

Tax all Chinese imports at 90%

Surround China with our NAVY fleet

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