Why Europe's Crisis Bailout Will Fail & Take The U.S. With It!
posted with permission from
http://sane-ramblings.blogspot.com/27 European nations and the International Monetary Fund (IMF) "pledged" 750 billion Euros ($955 billion) to bailout Euro countries in dire need. As a result, the European financial crisis is supposedly contained and global stock markets are surging.
But when market makers realize how little substance is behind that pledge, stock markets will sell-off again because this is really a global financial crisis and it will hit the U.S. hard.
Of the 27 European nations making this pledge, many such as Portugal, Ireland, Italy, Greece, Spain and Great Britain are broke. It is essentially a German pledge and the German people don't support it. For the money to be committed, the Parliaments of each nation must approve spending the funds, and that is no sure thing.
Meanwhile, the IMF is dominated by the U.S., so its pledge is largely an American pledge. But the U.S. is the world's biggest debtor nation and it too is broke. Instead of helping the cause, it is actually desperate to borrow European money and it too is in dire need of a bailout, although ironically it doesn't yet acknowledge it.
What this really is, is a bailout of global banks and other giant financial institutions with vast exposure to an economic collapse. The intent is to build confidence in the global financial markets so they can function, through the deception of an international government bailout, but it will fail as events spin out of control.
If you are an American, brace yourself. But as in the Great Depression, people will come together to help one-another get through it. Eventually, out of the ashes of an economy that was built on a military empire and huge government deficit spending will rise a more prosperous, stronger nation with entrepreneurial Silicon Valley type enterprises at its core.
If ever you doubt that premise, just look at firms such as Apple Computer, Cisco Systems, E-Bay, Facebook, Google, Hewlett-Packard, Intel, Oracle software and the list of these highly successful, employment providing, taxpaying firms goes on and on, and there will be more to come.