THE PREDICTION
In 2019, Germany will exit the Euro and revert to the Deutsche Mark. Creditor nations, like Finland, will follow Germany’s lead and leave the Eurozone as well. For a while thereafter, until 2021 or thereabouts, the Euro will be retained by Latin Europe and other debtor nations in what remains of the Eurozone. France may lead that remnant of a monetary union for a while, until it too realizes its own amassing exposure to foreign debt, and quit, the way Germany did. In 2021 or thereabouts, the Eurozone’s status as an economic power-bloc will finally come to an end. Whether a severely devalued currency still called a euro survives past 2021 in Greece, Portugal, Spain, Italy, Ireland, or elsewhere, remains to be seen.
The euro, as is, will not survive though. The reasons are manifold, but the math alone will tell you why: By early 2017, Germany’s Target-2 claims (for simplicity, think of it as money owed to Germany by Italy, Spain, and other effectively bankrupt debtor nations) was fast approaching one-third of German GDP. In Feb 2017 alone, it rose by €20 billion. On the flip side: In March 2017, Spain’s Target-2 liabilities surged to a record €374 billion. And, flipping even more: In March 2017, Italy’s Target-2 liabilities surged to a record €419 billion. Across the board, across the Eurozone, these numerals — from both the debtor and creditor perspectives — are deteriorating, not ameliorating.
Germany’s Target-2 tangent is the epitome of unsustainable. In 2006, German claims totaled just €5 billion; in 2016, that number rocketed past €700 billion; July 31 2017, per the Deutsche Bundesbank, it’d surpassed €856 billion. It’s political suicide for any politician, be they in the Reich Chancellery or the Deutscher Bundestag, to allow such a tangent for too long. It’s already been too long for the Bundesbank, which is why we hear, through a grapevine we consider reliable, that agents of the Germany’s central bank have drawn up ‘exigent’ ‘contingency’ ‘protocols’ for a sudden and unannounced German exit from the euro and a concurrent German re-entry into the Deutsche Mark, over a long weekend that extends a banking holiday ‘at least 2 days into the workweek’ in a government-mandated ban on cross-border transactional activity.
Back at the White House, President Trump’s own disdain for the EU and contempt for the eurozone are well known and widely reported. There’s no love lost between him and every eurocrat in Brussels.
A twister in all this, is the paradox lost to the Administration, which is that a breakdown in the EU or breakup of the euro spells doom for the European banking system. Doom for the European banking system, spells doom for all of Wall Street. Means taxpayers being held out on a platter again, except this second platter will be way bigger than the first.
Trump gets protested in the streets, and stomped in the press, for as little as misspoken words. Imagine a monumental crash, a multi Trillion dollar bailout, and the start to a deep depression on his watch.
The end to the euro as we know it, will coincide with the beginning of the end of the Trump Administration.
The German exit (in 2019) will crash the € in its exchange rate against the US$. A €-denominated sovereign bond crisis will precede, accompany, and follow the €-crash. Systemic bank interconnectivity, by way of the derivatives daisy chain, will see to it that Wall Street melts down.
The Journal’s reminiscences like Trump Chips Away at Post-Crisis Wall Street Rules, will come back to haunt the Administration. Specific bills that floated around in the House and the Senate, ghostwritten or outright authored by the lawyers and lobbyists of megabanks, will come back to haunt the Wall Street wings of the Republican and Democratic parties in Congress. (Never forget, the Wall Street wing of the Democratic party is what runs the party — ask Chuck Schumer and the delegation of Democrats from New York if you have any doubt about that.)
There will be bailouts of the megabanks, and throngs of protest. Civil unrest — bloodshed — will grind metropolitan centers of high finance, like Manhattan, to a halt. Chaos will reach for an apex by September 2019.
If Donald Trump is still president, hearsay of Mike Pence taking over as caretaker, will exceed rumor and surpass chatter.
With the Republican Party in tatters by 2020, the Democratic Party will think it’s their turn. The Democrats will be sorely disappointed. For that’s when a new generation of political leaders will wrap the worthless dud and pointless fraud, that the Dodd-Frank Act was, around their necks, with Wall Street’s Chuck Schumer and K Street’s Nancy Pelosi tethered to the ends of their decades of legislative malfeasance. The legislative content, ghostwritten/authored by Citigroup, on pages pages 250–251 in Public Law 113–235, will shut down all escape routes from blame for the Democrats.
In the aftermath of the Euro-borne crisis, U.S. national debt will begin an ascent up a new incline, far steeper than anytime in history. In short order, the U.S. Treasury bond market will begin to respond, and the sovereign bond crisis will go global. The fabric of social safety nets, the poor and the elderly depend on, will fray. In the ensuing carnage, governments will fall, new parties will rise.
Meanwhile in America, in search of — and in a final quest for — a “government of the People, by the People, for the People” as Abraham Lincoln envisioned, the nation’s electorate will vote for ACTUAL change like never before.
By Aug 23 2017, ahead of schedule, and in a rush it appears, Germany repatriated 674 tonnes of gold to its central bank headquarters in Frankfurt. (1 tonne or metric ton = 1,000 kg)
The concluded project to re-domicile specific German gold holdings, held abroad, left only 1,236 tonnes stored at the New York Fed and 432 tonnes stored at the Bank of England.
“This closes out the entire gold storage plan — around three years ahead of the time we were aiming for,” said Carl-Ludwig Thiele, a member of the Bundesbank’s Executive Board, in reference to the project first publicized on Jan 16 2013, when officials of the Bundesbank acknowledged that the plan to import German gold was a “preemptive” act to counter the possibility of a “currency crisis” overrunning the European Monetary Union, aka Eurozone.
“…there are no longer any German gold reserves in Paris,” declared the Deutsche Bundesbank’s Aug 23 2017 press release.
Yes, Germany most definitely does not want any of its gold sitting in France especially, were the Eurozone to splinter, which it will.
General Source: http://mainstreetgov.com/
Specific Source: http://mainstreetgov.com/bill/anti-crisis/
