Washingtonsblog’s anonymous founder and principal commentator is one of the most deeply knowledgeable writers on current events, and on July 19th he headlined “Governments Worldwide Will Crash the First Week of October … According to 2 Financial Forecasters.” He noted that both Martin Armstrong and Larry Edelson, two of the most respected stock-market predictors, are independently of each other predicting that “virtually all governments worldwide will be hit with a gigantic economic crisis in the first week of October 2015,” due to “a collapse of government solvency” as ricocheting government defaults spiral each other downward; and, because the U.S. won’t be forced to crash as quickly as Europe and Japan, there will then be a temporary worldwide rush into U.S. corporate stocks and bonds, especially stocks, as the short-term safe haven for investors fleeing from sovereign (government) bonds.
The next day, July 20th, Michael Meier’s German Economic News bannered “Clear Signs of Relaxation Between Obama and Putin,” and reported: “The nuclear deal with Iran and the withdrawal of heavy weapons by the rebels in the eastern Ukraine are clear signs of a détente between Russia and the US. The EU now needs to quickly develop their own strategy. Otherwise, the Europeans will have to pay for the chaos in Ukraine.” The article continues, addressing Europeans:
Your countries have to pay an enormous price for the sanctions [against Russia, and, earlier, against Iran]. With regard to a possible new global economic crisis, the loss of the Russian sales market has been devastating. The hope to do business quickly after the nuclear deal with Tehran could prove to be an illusion. Even the lightning-trip by Economy Minister Sigmar Gabriel to Tehran will change little. Unlike Russia, the EU towards Iran continued business with Iran during the sanctions, but was stubborn to pay the extra cost of following U.S. requirements. Meanwhile, Russia has caught up technologically and is now sure to be able to step up its exports to Iran and outside of the arms industry [and thus will be less dependent upon imports from Europe after the anti-Russia sanctions are lifted].
The greatest danger, however, threatening the EU financially is in Ukraine: The EU echoed US policy there [though, unlike the U.S., the EU has lost hugely from U.S. Ukrainian policy]: [This U.S. policy was] Ukraine should join the EU and end all connections with Russia. For the U.S., Ukraine is far away, no real trading-partner [though it might become one after the February 2014 change of government in Ukraine. Not so for Europe: Ukraine is now, in effect, inside Europe.]. …
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1 comment:
Because of debit cards and call centers, the lines have gone underground. I think it is just as bad as the 1930's, but because of technology it is more hidden from public view. I volunteer at my church to help feed the homeless every Tuesday and I can tell you it is busier than it has ever been with people who are starving needing help and food.
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