US Action News

When there are more losses, and there will be, the only way to guarantee banks do not take them, is to have someone else take them, namely taxpayers.

The euro’s time is almost up – so says one of the big three credit rating agencies as it prepares for a mass eurozone debt downgrade. S&P’s announcement shook international markets, with investors cutting and running on European holdings.

While Obama pushes the US toward socialism the Europeans face the reality of having run out of other people’s money.

With the situation in Europe deteriorating and the increasing recognition that there is no solution, capital will leave these banking systems as well as flee the countries involved. If you fear bank failure, you take your cash out. If you fear currency failure, you put your money into safer currencies, preferably outside of the country.

Until there’s a fundamental and structural change of how government is held accountable for running and managing a nation’s resources, there could be more crises similar to the one in the Euro Zone popping up to the point of one Scary Grandioso–No more spare bailout capacity.

Inflation will destroy US savings and purchasing power but the Fed and Obama have decided that is a an ok price to pay to bail out Europeans. Obama is desperate to keep the economy from tanking any further before the 2012 election.

This incredibly contractionary monetary “policy” began sometime earlier this year and is continuing to accelerate. I put policy in scare quotes because there is no policy as such there is simply contraction.

[A] top official said the region had just days to take decisive action to resolve the crisis. – BBC

For the eurozone, the OECD’s predictions are -1% this quarter, and -0.4% next. The group also revised down its forecast for global economic growth to 3.8% this year and 3.4% next year. – BBC

[S]ome economists believe that the outright collapse of the Euro could reduce GDP in its member-states by up to half and trigger mass unemployment, which could lead to widespread civil unrest and property losses. In that scenario, a recession/depression in Europe and the world would be closer to a probability of 100%.