It's an open secret. Everybody seems to know by now: A massive fraud--sophisticated Ponzi scheme--caused the 2008 financial system panic and subsequent Great Recession, and the failure by governments to properly address the situation, make it almost certain that another financial collapse will happen in very short order. And this one has the potential of being much more worst that 2008, as it will be caused by trillions of dollars in "toxic assets" that are still "infecting" the entire financial system.
In reality, describing the situation as a "failure by government" is a kind misnomer. The actual reason is that the entire political system has been corrupted to the core, which explains the reasons why they are acting as lackeys to the international criminal financial system. So unfortunately, this time around, the systemic failure that we are about to experience of the entire financial system, coincides with the complete collapse of the political and governmental system.
Today, Business Insider published an article by Charles Hugh Smith (There Is No Way To Stop Europe's First Domino From Falling), where he explains why he believes that the Euro (and Eurozone) is doomed:
Once the banks and bondholders accept a 50%–75% writedown in Greek debt, then the other debtor nations will be justified in demanding the same writedown in their crushing debts. This dynamic leads to estimates that 3 trillion euros will be needed to bail all the players out. Alternatively, total losses will equal 3 trillion euros, wiping out banks and bondholders of sovereign debt.
But the domino effect will not end in Europe. The Zombie banks that caused this mess, are all inter-connected, and they all have trillions of dollars of toxic assets in their books (worthless collaterilized mortgage obligations-backed securities, credit default swaps, derivatives, etc.).
As Kurt Brouwer writes in MarketWatch:
Right now, the central bankers of the world such as the Federal Reserve and the European Central Bank are pumping liquidity into near-dead or financial institutions that are, essentially zombie banks. The goal of the liquidity injections is to get normal credit market conditions back on track. Those efforts are likely to be in vain because banks all over the world are trying to hold on to their cash and get rid of toxic assets...
Let's be clear... We need to understand that the utter failure by governments to take responsible actions, given the current realities of the financial system, is caused by a complete breakdown of the democratic process whereas the entire political system has been bought off by international criminal financial cartels.
Everybody knows what needs to happen: The Zombie Banks need to be liquidated, nationalized. Kurt Brouwer reminds us about how government reacted to previous crisis (the emphasis is mine):
Sweden went through a nasty financial crisis in the early 1990s and it dealt with the problem by taking over failing banks and wiping out shareholders and even bondholders in many cases. We did the right thing during the Savings & Loan crisis in the 1980s and early 1990s. Our government dealt with that problem quite well by letting banks and savings & loan go under with hideous losses to shareholders of those institutions. So we knew what to do back in the 1980s. Unfortunately, this time around we have forgotten what we learned from the S&L crisis. We now are letting smaller banks fail, but we have allowed big banks to dictate policy such that they have evolved into a new breed of zombie institutions considered to be too big to fail. This is a mistake that both Europe and the U.S. are making.
I would disagree with Mr. Brouwer in that I don't think "we have forgotten what we learned." Influence peddling and the wholesale takeover of our government by these financial industry criminals have rendered our government incapable of properly handling the situation.
I know that my take on these events is highly speculative, but I suspect that we really don't have a clear picture of the dynamics that are leading us to the next financial panic, and that it is very likely that the net result of a cataclysmic economic collapse would be further consolidation of power by this criminal international cabal.
Entire populations would be shocked with massive unemployment, disruption of the flow of goods, and food, and draconian austerity measures... Governments would have been rendered dysfunctional and ineffective, and the ruling elite would take advantage of the situation by taking control of the security (and police) apparatus, including the massive surveillance infrastructure.
Even if readers don't agree with my conclusions, I think it is extremely important to have a clear understanding that the way these governments (U.S. and Europe) are dealing with the unfolding financial/economic system collapse is highly suspect.
These banks are insolvent. They are zombie banks. Our economies need to be fully decoupled from them. Liquidate. Nationalize. Start off the printing presses.
There Is No Way To Stop Europe's First Domino From Falling