Greek to German spreads reach record as the Brussels bailout has officially failed

European Contagion is alive and well as the IMF/Brussels bailout did not reduce the risk of default.  Apparently, markets assume, that Greek bonds will be defaulting as the spread of German bonds to Greek bonds is at a record 9.52 bps. 

This just goes to show that not only does it not make sense to bailout the world, it also does not work in the long run.  It is putting in danger the Euro, as well as all countries which use it. 

It not only has failed to limit contagion, as Ireland and soon Portugal will attest, but it also will almost certainly fail to stop Greece from defaulting. 

Source Bloomberg

Comments

  1. I believe that before Greece defaults, that a catastrophe will come as a result of rising European sovereign debt interest rates, and failed sovereign debt auctions, and plummeting bank stock values as well out of further global competitive currency devaluations at the hands of the currency traders, resulting in a financial market place implosion.

    Soon, the European Financial Institutions, EUFN, will fall quickly falling in value, taking the entire global financial system down, resulting in Götterdämmerung, an investment flame out, bringing forth a new age.

    The Apostle John had a vision of the days of which we are now living in and wrote of it in bible prophecy of Revelation 13:1-4, where he saw a beast system rising to be sovereign from the sea of humanity integrating mankind’s seven institutions and ruling over ten world-wide regions, these being the ten regions of global governance called for by the Club of Rome in 1974. I foresee national sovereignty passing away throughout the world, as Leaders’ Framework Agreements establish ten regions of global governance as called for by the Club of Rome in 1974; hence people will no longer be citizens of sovereign nation states, rather residents living in a region of global government.

    Out of the soon economic, economic implosion, bible prophecy foretells in Revelation 13:5-10, that a Chancellor, that is a Sovereign, will rise to rule. It might be Herman van Rompuy, Angela Merkel or John Redwood or Tony Blair, who will come to rise to be the EU political leader.

    And Revelation, 13:11-17, foretells a Banker, a Seignior, such as Wolfgang Schäuble, or Olli Rehn, or Jean-Claude Trichet, or Gordon Brown or Jose Manuel Barroso, will rise to provide credit.

    The Seignior will likely have fiscal sovereignty to control deficit spending, enforce internal country devaluations, provide a common EU Treasury for both taxation and transfer payments, assure mutual guarantees of the EU debt, and as Timothy Geithner called for, implement unified regulation of banking globally. All seigniorage, both credit and fiscal will come and go through the Seignior, who will make decisions on where money is spent. The Seignior will coordinate all aspects of economic policy, includes taxes, wages.

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  2. Thanks for your comments. I never really think of foreign policy in terms of the Bible.

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