Great Depression Online Archive Issue:

Faster than a New York Minute

Great Depression Online
Long Beach, CA
December 07, 2010

Inside This Issue You Will Discover…

*** Bailing Out Europe
*** Bailing Out Europe Again
*** Faster than a New York Minute
*** And More

Bailing Out Europe

Ben Bernanke’s a total madman.  He’s certifiably insane.  Yet it’s this very reason that the stock market loves him.  For he’s nuts about giving the financial system exactly what it wants – unlimited liquidity.

He’s a central banker par excellence, you see.  He helps the nation ruin itself with reckless abandon.  But Bernanke’s not just the central banker for the United States…he’s the central banker for Europe too. 

Last week we learned that not only did Bernanke bailout the busted banks of the New World during the 2008-09 financial crisis, he also bailed-out the busted banks of the Old World… 

The revelation surfaced on Wednesday as part of a Federal Reserve requirement of the new Dodd-Frank financial oversight law to disclose information on its $3.3 trillion of crisis lending.  Specifically, the Federal Reserve loaned no less than $274.5 billion to six European banks during the 2008-09 credit crisis.

~~~~~~Credit Crisis in Europe~~~~~~

Europe’s debt crisis began in Greece then leaked into Ireland -- but it won’t stop there, warns a new report from Elliott Wave International’s European analyst Brian Whitmer.  

Whitmer first alerted his subscribers to the still-developing European crisis back in December 2009, when he warned that a set of troubling events across Europe were signaling the entire continent was on edge.  Then in February, when the modern-day Greek tragedy appeared to be contained by all media accounts, our friends at EWI anticipated yet another wave of debt woes across Europe. Here's what Whitmer wrote on Feb. 26: “Greece’s woes aren’t over, and neither are its neighbors, meaning that more surprises are sure to come.”

Whitmer has been anticipating and tracking the growing debt crisis in Greece, Ireland Spain, Portugal and other European nations.  His analysis is so valuable and so timely right now that EWI has decided to give you their latest paid analysis on Europe in a new free report, “Credit Crisis in Europe: How the Stability of an Entire Region is Teetering on the Edge of a Major Collapse.”

Complimentary Report 

~~~~~~~~~~~~~~~~~~~~~~~~~

“Foreign banks were among the biggest beneficiaries of the $3,300bn in emergency credit provided by the Federal Reserve during the crisis,” reported the Financial Times.

“The revelation of the scale of overseas lenders’ borrowing underlines the global nature of the turmoil and the crucial role of the Fed as the lender of last resort for the world’s banking sector.”

Bailing Out Europe Again?

You’d think such a revelation would be cause for Bernanke to be tarred-and-feathered and paraded around town.  But in the baffling world of 21st century economics it’s cause for a stock market celebration.  What’s more, according to the IMF, Bernanke may do it again…

“Here’s an idea,” begins David Callaway at MarketWatch.  “Let’s bail out Europe.

“On a day when a presidential commission recommended $4 trillion in U.S. spending cuts that are so severe even some of the commission’s members found it hard to stand behind them, the markets rallied on speculation the International Monetary Fund would kick in more U.S. billions to save Portugal, Spain, Italy and the rest of the European Union from breaking apart like a holiday pinata.

“For pure spectacle, the rally sparked by the report of new IMF money – and later denied – was a welcome sight after a lousy November in the markets.  Stocks surged around the world, even in Spain, where shares were up more than 5% at one point.”

If you’re an American taxpayer you may be asking: What gives?  Isn’t the nation broke?  Why’s Bernanke handing out money that people don’t have to people who can’t afford to pay it back?

It’s pure lunacy.  And it won’t end well. 

Faster than a New York Minute

Texas Congressman Ron Paul recently called the United States “…the biggest counterfeit machine in the history of the world.”

Regardless of what you think of Paul’s politics, or his bluster, you have to admit he’s right.  The United States, with Bernanke pulling the levers, is counterfeiting money like never before.  The operation, nonetheless, is so simple it would make a check washer blush…

With a couple clicks of a button debt’s turned into money.  Then, do you know what happens next?  The government spends it.

Such a racket can only go on for so long.  “One day people will wake up and say ‘Why are we trusting this counterfeit machine?’  That realization would trigger a collapse in the dollar and could quickly lead to hyperinflation.”

We think Paul’s on to something.  No doubt, when the debt upon debt pyramid of paper money begins cascading down in earnest, the accumulated wealth of three generations will be vaporized faster than a New York minute.

Sincerely,

M.N. Gordon
Great Depression Online

P.S.  Even if you don’t invest in Europe, developments in these European countries can have a big impact on your portfolio. This explosive 6-page report helps you prepare for the crisis in Europe, and it’s jam-packed with forecasts and analysis originally published for EWI’s paying subscribers.  For the REAL story on Europe -- independent from media assumptions and conjecture -- read this prescient new report from EWI.

Download it here

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