So basically if this does not change with some revolutionary move or magic. We will eventually plummet ourselves into a deep abyss of financial uncertainty. If we are already not standing right in the middle of one. The question is not “If this crisis will hit us?”, the right question is “When will it hit us?”
“This could mean triggering Article 50, a referendum in other European nations leading to a break-up of the euro or sterling hitting below $1.20 or lower. The banks are ready for anything now,” the source in the bank told the broadcaster.
After the United Kingdom voted to leave the European Union in June.
France, Greece, Italy, Sweden, Netherlands Spain and Portugal can soon follow the UK example to. Many more can be waiting in that line. People of those countries are not so happy with EU and its affair’s especially Greece. Look what had happened to Greece, debt crisis and austerity measures. Greece is exhausted by them. Greek people do consider themselves as part of Europe. De facto they are part of Europe. But as each day passes by they less consider themselves as a part of European Union. Who can blame them?
If Greece and others do not leave EU now then it will happen at the first next major global crisis. In that situation EU will crumble. There will be no one left in a position to bail others out of crisis. Everyone will try to bail them selves out . Germany as the financially most stable member of EU is not so financially strong to take a weight of entire EU on its back. If Germany does that, then the Germany will fall to.
Shares in the biggest banks have been plummeting. Deutsche Bank has lost almost 45 percent, Credit Suisse has lost 41 percent and the Royal Bank of Scotland went down 35 percent in 2016. Uncertainty and volatility has been spotted in all areas of the economy from mining to car production.
The Oligarchs’ government lies to us about everything, including economic statistics. For example, we are told that we have been enjoying an economic recovery since June, 2009, that we are more or less at full employment with an unemployment rate of 5% or less, and that there is no inflation. We are told this despite the facts that the “recovery” is based on the under-reporting of the inflation rate, the unemployment rate is 23%, and inflation is high.
GDP is measured in current prices. If GDP rises 3% this year over last year, the output of real goods and services might have risen 3% or prices might have gone up by 3% or real output might have dropped but is masked by price increases.
The same thing happens to the measure of unemployment. Unemployment simply isn’t counted by the reported unemployment rate. No matter how long and hard an unemployed person has looked for a job, if that person hasn’t job hunted in the past four weeks the person is not considered to be unemployed. This is how the unemployment rate is said to be 5% when the labor-force participation rate has collapsed, half of American 25-year-olds live with their parents, and more Americans age 24-34 live with parents than independently.
Lets not forget what Jacob Rothschild have told just couple of days ago:
“The six months under review have seen central bankers continuing what is surely the greatest experiment in monetary policy in the history of the world. We are therefore in uncharted waters and it is impossible to predict the unintended consequences of very low interest rates, with some 30 percent of global government debt at negative yields, combined with quantitative easing on a massive scale,”
We should all be prepared properly for what is to come. If we can!
Sources already named
Editor Zeljko Mihajlovic