THE ECONOMIC COLLAPSE IN EASTERN
EUROPE IS PRECIPITATING THE DISINTEGRATION
OF THE EUROPEAN UNION

[Much of this information was derived from
the "Socio-Economics History Blog."]

Economist Mike Whitney writes:

"The economic condition in Eastern Europe is far worse than many have thought: EASTERN EUROPEAN ECONOMIES ARE COLLAPSING LIKE DOMINOES AND THEY WILL TAKE WESTERN EUROPE DOWN."

Whitney continues:

"EASTERN EUROPE IS ABOUT TO BLOW ... It's an emergency situation but there are no easy solutions ... The recession is spreading faster than relief efforts can be organized. Finance ministers and central bankers are running in circles trying to put out one fire after another. Its only a matter of time before they are overtaken by events. If one country is allowed to default, the dominoes could begin to tumble through the whole region. This could trigger dramatic changes in the political landscape [of Europe] ...

"Foreign capital is fleeing [Eastern Europe] at an alarming rate; nearly two-thirds gone in a matter of months. Deflation is pushing down asset prices, increasing unemployment, and compounding the debt-burden of financial institutions. It's the same everywhere. The economies are being hollowed out and stripped of capital.

"Ukraine is teetering on the brink of bankruptcy. Poland, Latvia, Lithuania, Hungary have all slipped into ... depression ... Capital is scarce and businesses are being forced to deleverage to avoid default. All of Eastern Europe has gotten a margin call. They need extra funds to cover the falling value of their equity ...

"Stephen Jen, currency chief at Morgan Stanley, said Eastern Europe has borrowed $1.7 trillion abroad, much on short-term maturities. It must repay - or roll over - $400bn this year, equal to a third of the region's GDP. Good luck. The credit window has slammed shut.

"Almost all East bloc debts are owed to West Europe, especially Austrian, Swedish, Greek, Italian, and Belgian banks. Europeans account for an astonishing 74% of the entire $4.9 trillion portfolio of loans to ... [Eastern Europe]. They are five times more exposed to this latest bust than American or Japanese banks, and they are ... more leveraged." (IMF data) 

To get some idea of how much European banks are "leveraged," one has only to examine the following data:

In the United Kingdom, the amount of "bank leverage" is about 55:1.

Think about that for a second: That means that for every $55.00 UK banks have lent out, they possess only $1.00 with which to back their loans if borrowers default - which they are now doing on a massive scale. That means that if there is a "margin call" (as it were) on only 2.5% of the outstanding loans that British banks have made over the years, the banks in Britain will collapse.

In the so-called Euro-zone, the situation is similar: banks there are also "leveraged" at 55:1; again, that means that if there is a "margin call" (as it were) on only 2.5% of the outstanding loans that EU banks have made over the years (especially to Eastern Europe), the banks in the EU will collapse.

And one should bear in mind here that there is no overall Central Bank in Europe similar to the Federal Reserve in the United States - or, for that matter, the Bank of England in the UK which, undoubtedly, the U.S. Federal Reserve would back - that could step in and save the situation.

There is only one nation in the Euro-zone with the financial power to step in to save the banks there: Germany. Unfortunately, Germany does not have the wherewithal to step into every situation; this presents Germany with a nightmarish political conundrum: How does Germany choose between, for example, saving a Spanish bank and not an Austrian bank? Austria's banks have made large loans to Eastern Europe, in euros and Swiss francs, and are going to have large losses, far more than the 2.5% of debt (see above) that it would take to wipe out their capital. And Austria is a small country in the Euro-zone. What if banks in Italy, Spain, Greece, the Netherlands, etc. begin to fail? What happens then? Germany can't save them all.

Germany's GDP is only 22% of U.S. GDP - AND GERMANY CAN'T CREATE "FUNNY-MONEY" THE WAY THE U.S. DOES IN ORDER TO MEET ITS "OBLIGATIONS." Only the U.S. - as the world's economic and military hegemon, and in accordance with IMF rules - can do that! [Please see our DVD, "Greed Is Good;" please also see our article, "Inside the American New World Order System."]

Finally, there is Switzerland (which is not in the Euro-zone), a country with a supposed reputation for prudence; the amount of bank "leverage" there is almost 70:1 - which means that if there is a "margin call" on only 1.5% of the outstanding loans that Swiss banks have made over the years, the banks in Switzerland will fail.

To begin to understand the enormity of the problem, consider this: The banking crisis in the U.S. will eventually demand a "fix" that will amount to twice the U.S. GDP. In the Euro-zone, however, it will take four times its combined GDP to "fix" the banking problem; in Britain, it will take five times its GDP to "fix" the problem; in Switzerland and Ireland it will take seven times their GDP to "fix" the problem. And so it goes.

It's precisely for this reason that Whitney has written:

The collapse of Eastern Europe will set off a chain reaction and bring down Western Europe ... This depression is spreading out of control like the recent wild fire in Australia.

Obviously, then, WE ARE ON THE KNIFE EDGE OF A EUROPEAN COLLAPSE! - AND IF RIOTING ON A MASSIVE SCALE BEGINS THERE, EUROPE'S UNDER-FUNDED, MINISCULE ARMIES AND POLICE FORCES WILL NOT BE ABLE TO HANDLE THE CHAOS.

THERE IS ONLY ONE NATION WITH THE POWER TO STEP IN TO END THE RIOTING AND TRUMOIL: THE UNITED STATES. One should remember here: The most powerful army in Europe is not the German army, or the French army, or the Italian army, but the American army in Europe!!


We urge you all to take advantage of the time you have left! [Please see our article, "He Is Near, at the Door: Here Comes Antichrist."]

WE URGE YOU TO DOWNLOAD THE NEW ANTIPAS PAPERS, PRINT THEM OUT YOURSELF, AND STUDY THEM CAREFULLY; SHARE THEM WITH YOUR FRIENDS - YOU MAY DOWNLOAD THEM FREE!

We need your help to spread the word concerning Antipas Ministries and the eschatological viewpoint it represents; WE NEED YOUR HELP BECAUSE WE DO NOT "LINK" WITH OTHER SO-CALLED "CHRISTIAN" WEBSITES which are, for the most part, "in the tank" insofar as their loyalty to the United States is concerned - a loyalty that has made them partners in the BLOODY trail the American military has left in its TERROR-RIDDEN rampage throughout the world, as well as making them partners in the abject poverty that American corporations have imposed on the peoples and nations the American military machine has ravaged - A BLOODY, TERROR-RIDDEN RAMPAGE THAT HAS TO A LARGE DEGREE BEEN CARRIED OUT IN THE NAME OF THE "PRINCE OF PEACE." [Please see our articles, "The Third World as a Model for the New World Order," Inside the American New World Order System" and "The American Empire: The Corporate / Pentagon / CIA / Missionary Archipelago."]

YOU CAN HELP BY EMAILING THIS ARTICLE TO
YOUR FRIENDS AND NEIGHBORS

PRESS HERE


HOME | ARTICLES | ABOUT US | SUPPORT US | CONTACT US
© Antipas Ministries