2013 Eurozone Forecast: Why A Eurozone Breakup Is Now More Likely Than Ever

[Editor's Note: Starting with his prescient observations about the French elections, Martin has provided insightful coverage of the Eurozone all year. Below he explains why Europe is not out of the woods yet.]

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To the complete shock of several analysts, the Eurozone managed to make it through 2012 without breaking up. However, 2013 is another story.

Now that Italy's Prime Minister Mario Monti has resigned, there's a good chance that Italy will be in the forefront of a new Eurozone crisis.

That means 2013 doesn't look to be a good year for the euro, either-especially with new Italian elections likely to take place in February.

Of course, the EU establishment hopes that Monti can remain in office, but with four very different candidates now jockeying for position, Italy is one of the continent's great question marks.

Here's why…

The leading candidates in this crucial contest include:

  • Silvio Berlusconi, leading the remnants of his former rightist coalition,
  • Monti himself, currently in negotiations with several centrist parties,
  • Luigi Bersani, leading the left-wing Democrats, currently regarded as most likely to win
  • And comedian Beppe Grillo, whose Five Star Movement is leftist and anti-authoritarian.

Of these four, only Monti and Bersani would represent the continuation of the status quo.

Meanwhile, the return of Berlusconi, whom the establishment forced out in 2011, would be a nightmare for the euro. That goes for the ascension of Grillo as well.

In the balance of this pivotal contest could be the fate of the Eurozone itself.

At the extreme, Berlusconi or Grillo (or a coalition between the two) would almost certainly take Italy out of the euro, since Italy is capable of surviving independently. After all, its current account deficit is only 1.4% of GDP.

What's more, any move toward independence by these two would allow Italy to throw off the EU-imposed "austerity" policies that have inevitably proved both unpopular and recession-causing.

At the other end of the spectrum, a Monti government (if one could be formed) would continue austerity and allow the euro to survive – at least until some other country such as France or Spain blew it up.

In the same vein, Bersani would attempt to keep Italy in the euro but would reject public spending cuts and demand even more handouts.

Judging by what Greece has been allowed to get away with, this might well work for a time, but one has to have real sympathy with the German, Finnish, Dutch and Estonian taxpayers who will be made to pay for all this.

2013 Eurozone Forecast: There's More To It Than Italy

And there's the sleeper problem, France. Even if Italy doesn't blow up the euro there's a good chance France will.

Don't be fooled by those bond yields, either. French 10-year government bonds currently yield only 1.97%, far below the 5-6% yields of equivalent Spanish and Italian government bonds – but that only proves that bond dealers can't recognize a crisis until it hits them in the face.

In 2006, after all, they were trading Greek bonds at less than 0.5% yield above German bonds. So much for rational markets.

What's also worrisome are the disappearing French millionaires. They are leaving the country in droves because of President Francois Hollande's ridiculous new tax policies.

It started when Bernard Arnault, France's richest man, made headlines when he renounced his French citizenship for Belgium in October.

However, this flight of wealth is not limited to the hyper-rich like Arnault. Last week it was revealed that French film star Gerard Depardieu had also moved to Belgium. Since Depardieu is a chevalier of the Legion d'honneur and of the Ordre national de Merite, it's not as if he doesn't have substantial ties to his homeland.

Anecdotally, many other wealthy Frenchmen, less well-known than Arnault and Depardieu, are making the same decision. It is tough to live in a country which not only taxes your income at 75%, but then adds an annual wealth tax of up to 2% on your capital.

Meanwhile, France currently has a budget deficit of only 4.5% of GDP, but that will go up, especially as the country is expected by the Economist team of forecasters to have only 0.1% economic growth in 2012 and none at all in 2013 – and given the exit of millionaires, the latter estimate is almost certainly too optimistic.

A Myriad of Reasons the End Is Near

If you want other reasons why the euro might break up in 2013, there is a laundry list of reasons why the end is near.

You can try Greece (even the Germans may someday get fed up of exorbitant Greek bailout demands.) Then there's Spain, which is pretty rickety but no more than that, provided its richest province, Catalonia, doesn't try to secede.

Or Cyprus, which is bust, but most likely to get a bailout from the Russian Mafia who dominate its economy. Or there's Portugal, which everyone's forgotten about and is trying manfully to solve its problems, but is expected to suffer 3% declines in GDP both this year and next – EU-imposed austerity is yet again proving very painful.

Then there's Slovenia, which ought to be rich and solvent, but through mismanagement has managed not to be solvent. And Ireland, which has got part way to solving its problems but isn't out of the woods yet.

You get the picture.

What's more, Germany has an election in September/October 2013.

Currently the Germans appear docile, likely to re-elect Angela Merkel, or possibly her Social Democrat opponents, who are committed to the euro and bailouts.

But if the road between now and then has been too rocky, even German voters may decide giving the government a blank check for four more years of bailouts isn't too smart.

In that case, they will doubtless find a German equivalent of Beppe Grillo and throw the EU into even more confusion.

It's possible that the euro will survive in its current form until next December. But I wouldn't put much money on it.

However, the eurozone's troubles and the United States' apparent strength should make it an excellent year for a European vacation!

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  1. Peter | December 20, 2012

    Please, note how tough the Estonians are. Their average monthly salary is under 1000 euro, and they are taking part in bailing out much richer countries. They have been through worse, they say….

  2. Andre | December 20, 2012

    BS!

  3. Paolo Padovani | December 20, 2012

    It's highly unlikely that either Berlusconi or Grillo will take the majority of the votes in the Italian elections and a coalition between the two is totally out of the question. With Monti deciding to participate, the situation gets complicated as he will subtract votes from the centre/right, which means
    partly from possible Bersani's and Berlusconi's supporters. But Italian people are exhausted by Monti's tax policies, which means he is also unlikely to get a majority. So a possible outcome could be Bersani
    winning but having to deal with Monti to be able to govern.

  4. lorenzo | December 20, 2012

    "Pier Luigi Bersani, leading the left-wing Democrats, currently regarded as most likely to win"
    he is a commie and PD (left-wing Democrats) has the same program ideas about government of Hollande.

    "And comedian Beppe Grillo, whose Five Star Movement is leftist and anti-authoritarian."
    ok we are out not only from EU but from everything

    in both of the victories of the names listed above will be dead men walking.

    Hope Monti, and then a small political party but is growing liberal area, with members who do not come from the current policy framework, the mome? Fermare Il Declino (Stop The Decline)

    Lorenzo (Italy)

  5. walt iwaniw | December 20, 2012

    WHICH IS WORSE EURO OR USA $ BOTH ARE PAPER BACKED AND EXISTING POLICY OF RESTRICTED LOW INTEREST RATES WITH DIVIDENDS PAYING HIGHER RESULTS IN ANOTHER LATE 1970S DOUBLE DIGIT FINANCIAL DISASTER. THE CORRUPTION AND GREED OF GOVTS. JEWISH BANKERS,TOO BIG TO FAIL CORPS BEING BREAST FED TO THE ELITE HOPING CRUMBS FALL TO THE NO SALARY INCREASED JOE VOTER WITH INVESTMENT RECOVERY IN RESIDENTIAL GROWTH PAYING OFF THE HEAVY DEBT BUT WILL THIS POLICY INCREASE THE DEMAND FOR GOODS AND SERVICES BY THE JOE VOTER CONSUMER WHEN THEY HAVE HAD NO WAGE INCREASES TO BUY GOODS BUT USE CREDIT WITH A 3.7 SAVING RATIO AND NOW THE STOCK MARKET AND METALS BECOME INVESTMENTS OR SAVINGS. REMEMBER BABY BOOMERS TURNING 65 THROUGH OUT THE WORLD THAT THESE ELDERLY PERSONS HAVE A DIFFERENT DEMAND FOR GOODS AND SERVICES COMPARED TO THE YOUTH FOR FUTURE ECONOMIC GROWTH

    • Anthony | December 21, 2012

      completely agree with you walt. the tide of baby boomers is something not previously experienced, nor properly imagined. depending on how tax regimes respond over the next decade (thinking inheritance and property taxes) what will be the Generation Y broad move be? me thinks very low growth, neither deflation or inflation, more subsistence style living experiences – eat, read, surf

  6. SL | December 20, 2012

    Greece,Spain,Italy,Cyprus,Portugal,Ireland,possibly France…is every country mismanaging or just might be a structural problem of the eurozone,with monetary union but no fiscal and economic union?
    Could you imagine brutal deflation,overtaxment of property with successive wage reductions being imposed to California as a precondition of Texas contributing to its fiscal problems?

  7. Joshua Lee | December 20, 2012

    Its well argued Martin but the Euro will survive. The region grew far too quickly and let in too many small fish that make very little, this is true. Relying on the tourist industry alone Spain et al is a weak reason to be allowed to join the Euro experiment. These will feel the pain for years to come but it must not fail otherwise the pyrimad scheme created by the West will come crashing down!

    • Anthony | December 21, 2012

      and, Joshua, not to forget China. They have been well and truly snookered with their US holdings. Alternatives, of sufficient market liquid size, are few. Holding Euro is about the only politically digestable transfer mechanism of savings from creditor to debtor. Direct ownership runs into xenophobia

  8. lorenzo | December 20, 2012

    P.S.
    errata corrige
    in both of the victories of the names listed above will be dead men walking.
    I mean
    in both of the victories of the names listed above, all the italians will be dead men walking.

  9. mario venazzi | December 20, 2012

    as 2012 has shown there is no political will for Euro break up and economically the worse has passed. your analysis is so wrong that it is not even borne out by the markets which show an ever weaker dollar agsinst the Euro the past two monthd.

    • J roberts | March 19, 2013

      shows what you know look at Cyprus know and the euro is laughing stock raiding the peoples piggy banks

  10. SL | December 20, 2012

    My native Greece was sailing straight to the rocks for quite some time,but those of us that voiced objections were considered " picturesque" and " killjoys".Now,after 3 years of brutal recession policies,with GDP 20% lower than 2009 and more than 3000 suicides from despair,nothing can flourish under the burden of insane taxation,uncertainty and unpleasant surprises from laws with retrograde power,so the recession willonly deepen.Jobs are notoriously scarce,and self employed people find themselves also drawn towards the " no money" hole,so myriads of people stand idle,although they want to work…The Germans are paving the way for a defeated populace,who would beg for a 300 euro salary,when they will have annihilated all local competiition and they open up the spigots of capital flow. You have to delve a little deeper to discover the truth…

    • Anthony | December 21, 2012

      The "insane taxation" about which you moan is nothing more than a "tax in arrears" payment – an equitable way back to stasis

      • SL | December 21, 2012

        Sorry,I don' t quite get what you mean…Having first hand experience though,let me tell you now that most Greeks can' t afford to heat their homes because heating oil has reached 1.5 euro/lt.Gas is 1,70€/lt in a country that the basic salary has been reduced to 500€.In everything you buy,you pay VAT 23%,and all these,for the joy of being a citizen of a failed State. Access to hospitals and doctors has been drastically curtailed and new taxes are being imposed every2 months sucking whatever "blood" was left at the economy.

  11. Thomas Hegarty | December 20, 2012

    Where to begin?
    The peoples of Europe were lied to from day one, Common Market was the spectacular carrot, free trade ! Who would argue against that?
    All along, it was a Trojan Horse on the road to a single European state ruled by an UNELECTED 'elite.'
    (When you delve into the bacgrounds of this "elite" of failed politicians and others with no real life work experience, like Van Rompuy, it makes you shudder !)
    This market that was to enrich everyone has caused untold devastation in particular, Spain, Greece ( A total tragedy to a very friendly and open people.) and Portugal, just starting to rotate round the plug hole of 'one speed europe.'
    None of these people want to lose their cultural and national identity. Which is why you are seeing break away attempts in Catalonia and others thinking about it. These people have no jobs no prospects of jobs and their young no hope at all, unless they flee their homeland.
    After Spain, Italy, the political madhouse that that is.
    The Germans !
    What scares them more than a loony like Van Rompuy ? INFLATION.
    As long as German Banks are more or less solid and in control, there is a slim hope of a controlled crash! But wait !
    The European Central Bank, the IMF and others are trying to get control of the whole banking system (Conspiracy theorists, now is the time !) Germany is starting to think they might be better off OUT of the European Union before they lose control of the situation and are left holding the
    financially broke baby ! WOW They could beat the United Kingdom to it !!
    If only the USA would give back their gold, as they requested (request DENIED !) they would have the wherewithall to back the new Deutchmark.
    Fantasy ?
    Wait and see.

    • Lynn | December 20, 2012

      Re USA giving back the gold to Germany so they could back the D-mark. It is not a case of the USA denying the request it is the Federal Reserve who is denying it, and telling our treasury dept what to say (remember..those who control the money control the nation). And the Federal is not a part of the US government it is a privately owned, and controlled institution with a profit motive. Even our own elected politicians are not allowed to see all the gold that is supposed to be in the Feds storage. They (the FED)control our currency, rate of interest, etc. Same as with all other "central banks" although they make it seem like they are controlled by the government but in reality they are not… but this is for another discussion on another day.
      Therefore don't blame the USA for not giving the gold back…look to who owns the Federal Reserve Bank/all "Central Banks" and there you will find out who to blame. However back to the discussion at hand I agree that if the Germans could get their gold back they just might leave the EURO/Union and go it with the Mark.

  12. Martin | December 20, 2012

    I agree, the Euro won't last, can't last. But "get fed up of exorbitant Greek bailout demands" UGHHH!!! Fed up WITH, PERLEEEEEASE!!

  13. Werner | December 20, 2012

    Martin, you are like most Anglo-Saxons, wishing for the Euro to break up. It may indeed, and in my opinion your reference to France is well placed. But beware, the USDollar's situation is no better. Whilst it cannot break up, capital inflows – necessary to the US survival might dry up and that will spend the end of the US dominance as we know it now. All bubbles are called to burst, and it will be an ugly contest for the run to zero.

  14. Pete | December 20, 2012

    EU survive in some smaller dimension finally. The benefits from common market and currency and trade policy outwards are obvious. The northern states of EU have no problems with budget deficits, so these states have the best reasons to remain in the some smaller EU. The southern states will mostly fall off, but maybe some of them manage to introduce monetary discipline and make it too.
    IMHO, the biggest problem of the EU is France, extremely ambitious state, willing to rule EU – her child, absolutely no willing to admit some recomendations from abroad but rather with southern monetary discipline.

  15. Psde | December 20, 2012

    Sorry but this article is pure BS.

    The PSDE team

  16. Curtis Edmark | December 20, 2012

    From a purely nostalgic standpoint, I was disappointed when the Euro came into effect. I always thought Europe was culturally more interesting with the each country having their own currency: the French franc, the Greek drachma, the Italian lira, etc. The theory behind the Euro makes sense. Practically, I don't think it has helped as much as they thought it would.

  17. Kevin Donnelly | December 20, 2012

    Martin is not insightful. Nothing he says is prophetic. It is reflective of Conservative thinking, which to say we want the market benefits, not economic unity in Europe.

  18. DD | December 20, 2012

    I would like to see the people of Greece make Goldman Sachs accountable for its part in Greece's demise, but of course they won't being nothing but a scared puppet country to the US and that's a shame.

    I will marvel (but not really) at the day when the US finally takes on its debt head on, then people here will know what these EU coutries are going through, only it will be much worse here since the debt is so much greater and still, there so many people in total and utter denial about this fact.

  19. JOHN GUDGEON | December 20, 2012

    As Mr Haggety said, where to begin. The whole scenario, the economic malaise, from Germany throughout Europe, the U.S.A. and even Japan, are all under the control of the central bankers, money elite, money 'masters' or whatever you want to call them. And, the whole thing follows a master plan over 200 years old. Depending on your knowledge or personal education, as you will not get any kind of truthful history of the western world public education system (where I have one masters degree), one can follow the people and methods of the bankers plunder of nations all the way back to Roman times.
    But, most relevant to this conversation, is from the middle 19th century, when and where Mayor Rothschild in Germany controlled an estimated 50% of the world's wealth. He had 5 sons, where they were sent out like a deadly virus to take over and/or establish the central banks of Europe, including the Bank of England, and eventually the U.S., with as I understand it, J. P. Morgan acting as his lieutenant. After several attempts in the 19th century, finally after creating the financial crisis of 1907, and murdering the last of a central bank opposition, chief among them, John Jacob Astor and 2 others on the Titanic (actually the Olympic, 2 of the 3 sister ships built and owned by Morgan's White Line of Ireland) in April 1912, was able to get the Federal Reserve act passed in 1913.
    As all the central banks in the Western world are private, foreign owned and for-profit organizations, with a government mandate in complete conflict with their private agenda, what we get is a two-faced monster that most of our forefathers warned us about: slaves and/or indentured servants, and with a U.S. national total debt of over $200 trillion, likely 5 generations going forward.
    So, understand the agenda of these 14 banking families; it is a managed "crisis/collapse" and plunder or wealth transfer of, primarily, the baby boomer generation's lifetime of production, savings, pensions or retirement accounts and investments. The real estate of this generation was the first target of this century and the next is their retirement/pension accounts. Those accounts are estimated to be between $16-19 TRILLION, just 'coincidentally' equal to the the U.S. national debt. Again, this has been strategised for many decades, just as the bankruptcy of GM to wipe out $50 billion in pension obligations.
    Understanding the AGENDA of the money elite is imperative to understanding the state of the economies of Europe and the U.S., and the next 5-9 years.
    There will be blood on the streets and "they" are prepared for it. This is why "they" must do everything they can to take American's guns away. If one doesn't think there are relationships between events such as 9/11 and the recent shootings of children in Connecticut, think real hard again.
    Time To Wake Up
    JEG

  20. robert kuczera | December 20, 2012

    dear friends,
    in november 2011 an article in the wall street journal stated that B of A had transferred $75 TRILLION in "insurance guarentees on euro bonds" from their brokerage side to their "banking side" .
    this meant that FDIC now insures the $75 TRILLION in euro bond guarentees written by B ofA [ fees collected by BofA ].
    the same article stated that JP MORGAN / CHASE had transferred liability for $79 TRILLION in "euro bond guarentees" from their brokerage to coverage on their bank side which is covered by FDIC insurance.
    the $154 TRILLION is now covered under the FDIC "umbrella".
    how many other financial institutions "dumped" their euro bond guarentees on to the FDIC [ spelled taxpayer ]
    why is there no reporting by the press ?

  21. Malcolm Rawlingson | December 20, 2012

    The Common Market was a dupe. It has provided no benefits to any country that joined and has sucked money out of all of them to fund the elitist unelected gang that runs it. The intent always was to create a single nation by stealth instead of by war. But it was doomed from the start and cannot survive. Germany has done very well out of Europe – it was quite happy to provide the Greeks with their BMW's when any one with half an ounce of sense knew that the money could never be repaid.

  22. Nick Egrotes | December 21, 2012

    i give you a sure bet; Cyprus will be the first country to leave eurozone. Not because of their will,but because Troika will refuse to support Russian capitalists who created a hidden mafia paradise in the island. Cyprus is is a terrible mess, Banking system is in enormus hole of tens of billions euros, place your bets on CYPRUS FIRST TO LEAVE EUROZONE i guarantee your profits! thnx Nick

  23. ernie | December 21, 2012

    Take it easy..Italy is rich and quiet.10.5 Trillion $ of private wealth.In the next general elections Berlusconi has NO chance to win.Eurobonds in the future will calm everything.Bye.

  24. Elena Stavrova | December 21, 2012

    Indeed The Old Lady – Europe is experiencing hard times. On the verge of bankruptcy are major European economies – Greece, Portugal, Italy, Iceland, Spain … And the situation will continue to become more and more difficult until these countries are left liable for its fiscal gap finance. Instead of continuously infused new typing notes in EUR, for which no real stand-produced goods and services to implement a system of consolidation and rescheduling of the huge debt of these countries. This will allow those economies to take a breather to focus and national capacity and launch themselves to service their debts.

  25. PATRICK | December 21, 2012

    BUY GOLD & SILVER !

  26. JR | December 22, 2012

    So here's the 64 million dollar question (at least to me) – why, when it seems that a majority of citizens on both sides of the Atlantic know that the central banks, and more importantly the shareholders of these banks, are the root cause of the economic malaise sweeping the globe is nothing done to stop them? Whether you are a person who believes in conspiracies or not, clearly it is difficult to argue against the idea that something is going on behind the scenes. Why, for instance, would the US President and Congress fail to reach an agreement on the 'fiscal cliff' unless they benefit in some way? Look at Greece – political turmoil, multiple elections in which the opposing parties switch seats and opinions about their stance for and against austerity only to implement it with gusto knowing full well that it will do nothing to alleviate the suffering of their electorate while they and their masters – the wealthy business and ship owners – continue to pay no taxes and live like royalty in a country where people are literally starving and dying because they have no money for food or access to health care. So to be blunt – we know who these bankers are, we know where they live and work – when are we going to hold them accountable?

  27. laurence | December 22, 2012

    ernie i beg to differ , i am an australian who has lived and worked in italy for the last decade .italy is not rich and quiet. yes quiet in the sense it takes forever to get something done, for example its taken my builder 2 years to complete my house that measures just 110sqmetres. In addition to this i have travelled extensively throughout the peninsula in nearly every major city people ask you for money or your see pinned on community notice boards the phrase (signora italiana cerca lavoro come pulizie) WOMAN LOOKING FOR WORK. Most people over 50 dont work and are on full pensions and dont even know how to switch on a computer ,inflexlble labor force and a proliferation of gold and silver pawn shops (people swapping their jewellery for euros which are losing their purchasing power). No one wants to work on weekends. Who has the 10 trillion in private wealth Just Berlusconi?

  28. Margaret Thatcher | December 28, 2012

    Nothing,whatsoever, will change the minds of the dictators in Central Europe. Crises will continue to plague the EU monster, but it will simply refuse to die being on life support systems designed and put in place by Germany et al. The eternal response from Angela Merkel echoes the alleged remark made by the British Prime Minister James Callahan, during the economic crisis of the time, on his return from his overseas trip in 1976, to wit: "CRISIS, WHAT CRISIS ?!" There are none as so blind as those
    t hat will not see.

  29. pat | December 31, 2012

    Europe is a joke,set up to prevent wars within its borders,well I predict it will eventually be the cause of a big war. The euro is hugely overpriced because the Americans can't afford a strong usd anymore,the euro and European policies is the cause of massive poverty creation in many different counties in Europe,not only in Greece or other southern countries,in Belgium since the euro came basic houses wentup 200%,reaching a level where many new buyers are in problems to pay of their mortgages even when they have a job,the rubber is streched too far and ready to snap. When house prices went up a 200%over10 years that's an inflation rate of 20%,while intrest rates are almost nothing,the Belgian elite ,because real estatetax loopholes ,misused the euro to create this huge imbalance induced by parasite politic kaste wich distorts the so called free markets.
    It's time for new generations,who are the biggest victem of this scam,to confront it and force the elite to set up new systems of governing as a properly set up open automised political system to get rid of these monkeys who dont contribute anything positive to society but distortion and decay,altough I assume war is going to be necessary for people to wake up out of their complacency.

  30. david tarbuck | January 1, 2013

    I use the term "fictitious capital" to describe what the Big Bankers, public and private, are attempting to inflict on the ordinary 99% people who through their entrepreneur led labour create ALL REAL value, capital included.
    In the middle of the 19th century Karl Marx coined this term to describe the notes and loans that governments and gentry used to finance wars, luxuries, estates and otherwise living beyond their REAL means.
    At that time such paper would accrue during "Boom" times as the economy expanded and would usually max out at around 10-12% of a countries GDP. As long as the good times rolled on it was not a problem, but came a crisis of over production (of all the wrong things) there would be the day of reckoning. Ergo, the bill collectors came and cash not paper promises was the order of the day. This resulted in a variety of ways to settle; some were paid in part or in full but more often bankruptcies and swindles resulted. Then the stage was set for the next cycle – boom bust.
    Today though the situation with 'fictitious' or 'counterfeit capital is vastly different.
    100 years of pumped up growth for growths sake first based on the now discredited ideas of John Maynard Keynes has produced a situation where some 20 times the worlds gross product exists as fictitious capital, a counterfeit collection of deficits, bills, bonds, exchanges, derivatives, swaps and the latest fraud, "quantitive easing". (Le Monde Diplomatique puts it at 50 times)
    $$Dollars, ??uros, Rubles, ??, &?…all the same!!
    To grasp the idiocy inherent in these figures imagine approaching your friendly personal banker for a loan, line of credit or mortgage some 20 times your net collateral worth; how far do you suppose that might fly?
    Yet with the above listed gimmicks, that is precisely what members of the bankster clique do amongst themselves.
    Every day we read of new Central and private bank meetings, "Increasing capital base" is their current fad.
    OFF THE WALL! There is not a farthing of REAL capital in all of this rat-bag of lies, swindles and manipulations.
    REAL capital is ONLY accumulated labour dedicated to enhancing future production. Ergo entrepreneur led LABOUR (of the 99%) is the only source that can augment existing capital or create new.
    The banksters, led by the IMF, USA FED, and British "financial services" are well aware of this fact but that will not stop them from attempting to download this fraud onto the REAL product of Labour in the form of "bailouts" of "sovereign" debts, to be serviced by taxes on the REAL producers.
    The 99% will be robbed of (much prepaid) social services and benefits to service "debts". “Austerity” it is called when those who had NO hand in running up this fraud are required to pay interest that will amount to 40-60% of the future product of their labour. Gone will be pensions, good schools, decent medical care, infrastructure (e.g. utilities that work reliably), environmental protection; even adequate diets will be history.

    "Let them eat cake!" exclaimed La Royale Marie Antoinette.
    Let them eat (genetically modified) garbage, implies La Grande Dame Christine La Garde, of the International Monetary Fascists(IMF)
    So Greece, you are the front line today, Italy and Spain may be next, but do not think that any country, including the relatively well off Germany or the resource rich Canada and Australia will be forever exempt. Ms Merkel, beware!
    The "poor little ones" are but appetizers; they will whet the appetites of these financial service vultures and jackals. For certain, like buzzards flocking to road kill. if they succeed in the beginning the taste of financial carrion will make them hunger for more, and they will finish only when the 99% of humanity is subject as debtors to enslavement by the 1%.
    But this does not have to be!
    Greece you can repudiate the fraud! Lead the way! DEFAULT is the way to go!
    99%; be inclusive! Support Greece today, Italy Spain, …, &c. tomorrow and…/?/ the world in future.
    Hold on to your souls! Hang tough!
    You have a WORLD to WIN!!
    Churchill’s advice immediately springs to mind:
    “When you have an important point to make, don’t try to be subtle or clever. Use a pile-driver. Hit the point once. Then come back and hit it again. Then hit it a third time – a tremendous whack!!

  31. vicktor | February 11, 2013

    Why oh why, way back in 1946-1947, didn't President Truman leave Italy to the Soviet Union! They were all communists in Italy anyway, even given the fact that they were saved by Truman with the Marshall Plan and $100 Million loans on top of that. Today, Italy would be a pain on Russia and not the rest of Europe. Even the USA screws up badly..The U.K. paid all loans back but Italy still pretends they have to pay the cost of the war win Eritrea and hasn't paid back 10 cents back to America.
    What a pain, chaos

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