John Mauldin – The Real End Game, We’re Coming To The End
June 19, 2012
On the heels of China and Brazil nearly doubling the IMF’s lending capacity to $456 billion, and with renewed fears of Europe becoming a systemic risk to the global financial system, today King World News interviewed John Mauldin, President of Millennium Wave Securities. Mauldin told KWN, “What we’re seeing is the real end game” and “it is coming to an end.” Here is what Mauldin had to say about the crisis in Europe: “Everything changed and nothing changed. Greece isn’t solving its problems. It’s fundamental problem is its trade imbalance. They can sit and posture all they want to, but until they solve that problem, nothing is going to happen.”
John Mauldin continues:
“So they are going to have another period of frustrating non-recovery and continued recession. Then the voters will get upset and probably elect a new group of people to get frustrated with, until they finally leave the euro.
Spain has lost access to the bond market. They can’t fund themselves. So Europe, through some mechanism, will tap the central bank because that’s the only place where there’s any real money in the size that is needed for Spain.
Whether they make the ESM a bank, whether they declare the ESFS available to fund and guarantee other money on a leveraged basis — All of the things I just suggested are against the rules, and they (European central planners) don’t care….