De geldpersen zullen in nog een hogere versnelling moeten gaan om het systeem in leven te houden. We beginnen gewoon weer opnieuw bij de Grieken; ze zijn weer toe aan een nieuw pakketje van 50 miljard.
Iedereen met boerenverstand kan begrijpen dat iets wat jarenlang door hebzucht en spilzucht is gegroeid niet opeens met een beetje bezuinigen weggepoetst kan worden. Ook jarenlang bezuinigen niet. Er is gewoon veel te veel met geld gesmeten.
Nog simpeler. Een Griek of een Spanjaard die honderd euro bezuinigd verliest op diezelfde dag 1000 euro aan waarde op zijn huis.
DWN: Neue Finanzlücke wegen immer mehr faulen Krediten
Die faulen Kredite, auf denen griechische Banken im Dezember saßen, machten 24 Prozent in den Bilanzen der Geldinstitute aus. Das entspricht mehr als 50 Milliarden und zeigt, dass, trotzdem die meisten Hilfsgelder ins griechische Finanzsystem geflossen sind, weitere Milliardenhilfen notwendig sind.
Warum sollte das Jahr bei den Helenen anders beginnen als es geeendet hat?
“Look at Spain: The debt crisis has been going on there for quite a few years and the consequences are disastrous. There was a banking reconstruction in Spain about six months ago which saved banks that were on the verge of bankruptcy. Those banks were merged into one new bank, Bankia, which was recapitalized.
Well, Bankia has already eaten up that capital, which was about 4.5 billion euros, and now the balance sheet of this bank is showing a negative value of about 4.5 billion euros. So the bank now has a negative value. Another Spanish bank is showing 10 billion euros of negative value.
So in spite of major injections by the eurozone governments, these banks are collapsing. The same is true in Greece. In Greece, non-performing loans are now exploding, and they were already up 50% in 2012. Non-performing loans are now up to 55 billion euros in Greece.
Well, 55 billion euros is virtually the size of the rescue fund which was meant to recapitalize Greek banks. The rescue fund was 50 billion euros. So Greece has already used all of that money, and now they will need even more. We know that the Greek state is bankrupt, but as I am showing with these figures, the banking system is also bankrupt.
What is the Greek government doing? Well, they have actually stopped paying their bills because they can’t afford to. They don’t have any money. The amount of money owed to Greek debtors is going up continuously, and now totals 110 days. They are paying some bills, but they are taking around four months to pay them. The same thing is happening in Spain and in Italy.
So what we are seeing in Europe, Eric, is a financial system under pressure. The governments which are helping these over-indebted countries survive are now scrutinizing all of the accounts of the governments which are in trouble. When they are scrutinizing these figures, they are finding that virtually all of the assets are over-valued, and the liabilities are undervalued.
This is what always happens in a financial system that is under pressure. The same thing happening in Greece, Spain, and Italy, is also going to happen in other countries, both in Europe and also in the US. As these countries financial systems come under pressure, a lot of these things which are hidden will come to the surface.
This will reveal that assets within the financial system are greatly overvalued. As I’ve said before, countries are allowed to value toxic debt at virtually any value they want. A good example of this is Deutsche Bank. In connection with the crisis in 2008, they did not recognize up to 12 billion euros in losses on CDOs. They took the profits on one side, but they didn’t book the losses on the other side.
There has been an investigation into this and Deutsche Bank’s CFO has admitted they did not book the losing side of the bet, which was a potential liability as great as the outstanding 12 billion euros. He said they didn’t book it because they were acting according to the rules.
Eric, this is the point I’m stressing to investors time and time again, that the financial system is only standing because of false valuations. The $1.1 trillion worth of derivatives outstanding are to a great extent worthless.
Therefore, we have two options: We can see the financial system failing, which is a high risk, or we will see unlimited money printing worldwide. This money printing is what I believe is going to happen, and it will accelerate this year because it’s the only way to mask these losses and keep the financial system from imploding.”