US Action News

The vaunted German export machine is sinking into the abyss.

Financial markets all over the globe are very nervous right now because if the Spanish government ends up asking for a full-blown bailout it could spell the end for the eurozone. There simply is not enough money to do the same kind of thing for Spain that is being done for Greece.

Those governments are all bankrupt. But much more serious than financial bankruptcy is their total moral and intellectual bankruptcy. At this point the Europeans are so craven and degraded they deserve to be indentured servants of the Chinese, which they will be.

Farage unleashes a barrage on Europarl leaders who have been attempting to cover the hemorrhaging of the European debt crisis. Every couple of months they announce some supposed fix or bailout which comforts markets while the slide into economic breakdown continues.

Economic downshift in China has generated a long rippling effect on many countries and corporations around the world. .. CBO report estimates that the U.S. public debt could reach 200% GDP in 25 years if current tax and spending policies are extended.

The truth is that the financial crisis in Europe has not been cancelled – it has just been put off for a few weeks or a few months.

Throw in the fact that it seems everybody (governments as well as consumers) is in debt, nobody has any money, credit issues are becoming increasingly burdensome to deficit financing to artificially stimulate growth via the government intervention route, all these factors are forming a perfect storm for the oil market to face some major headwinds for the next 5 years.

Eurozone leaders backed a ten year plan that would give an EU treasury powers over national budgets. The plan uses vague leftist socialist code words that could be interpreted to justify just about any decisions made.

[M]any nations, after the storm of debt/banking crisis, will need to implement various government austerity programs, and households will commence debt deleveraging–a long and painful process.

Ultimately, each country has to spend no more than it’s taking in as income. Staying on its current course, the world eventually could be divided into three camps: bankruptcy (aka bailout), credit counseling (aka government austerity and household deleveraging), and debt renegotiation (aka “haircut”). PIIGS are only the beginning.