Euro Crisis and The Coming NWO
by EconMatters
ZeroHedge.com
06/24/2012
Citing “Central banks are being cornered into prolonging monetary stimulus as governments drag their feet and adjustment is delayed”, the BIS (Bank for International Settlements) on Sunday, June 24 endorsed the proposals of forming a single banking union for the Euro Zone to “buy time” in the short term.
After the election of a pro-bailout government in Greece, the markets now have shifted focus towards the two-day European Union (EU) summit later this week on June 28/29. At a meeting in Rome, leaders from Germany, Spain, France and Italy agreed to press for a €130 billion ($163 billion) plan at the summit.
As we previously predicted, the $125-billion ‘Spailout’ did not give markets much comfort. Despite the massive bank bailout, rating agencies are still busy downgrading major global banks. Spain government 10-year bond yield shot up above 7.3%, and Euro-era high, before dropping to 6.4% last Friday on the hopes that European policymakers are moving towards a resolution for the euro sovereign debt crisis.
Italy’s borrowing cost also officially crossed the 6% mark, before settling at around 5.8% on Friday. Typically, economists see anything over 6% as unsustainable in the long term. So now Italy has become a serious euro bailout contender. Italy does not have as bad the spending deficit problem as Greece, and its banks are in a better shape than Spain’s. But the country could have problem serving its €2 trillion of debt (about 109% of GDP) as it has to borrow €35 billion a month. The bottom line remains that there simply isn’t enough money under current bail-out arrangements to rescue Italy when the time comes.
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