“The sell-off in the equity markets is bad, but the implied forward view looking at high yield credit is far worse, and that looking at credit-default spreads is even worse than that. The latter on a number of institutions are showing the sorts of numbers that immediately preceded Lehman’s failure, implying the potential for a “no-notice” liquidity seizure.
If it happens, and if it does it is likely to come almost without warning if not literally without warning, Germany would find it very expedient to leave the Euro.
… the treaties that formed the Euro left no means to expel a misbehaving “member.” But there’s no way to restrain a nation from deciding to quit as opposed to being expelled.”
“Apparently, the Europeans are warning the US to come up with a plan to nationalize Bank of America given that it is already in a precarious position, despite the injection of capital from Warren Buffet. The multiple lawsuits against BofA and other banks alone will render the US banking system vulnerable to any dramatic announcement out of Europe. But, no doubt US banks have immense exposures to European institutions and some may even have sovereign credit risk directly on their balance sheets.”
“Adam Lebor reveals how he uncovered US Military Intelligence report EW-Pa 128, also known as The Red House Report, which details how top Nazis secretly met at the Maison Rouge Hotel in Strasbourg on August 10, 1944 and, knowing Germany was on the brink of military defeat, conspired to create a Fourth Reich – a pan-European economic empire based around a European common market.
“The Third Reich was defeated militarily, but powerful Nazi-era bankers, industrialists and civil servants, reborn as democrats, soon prospered in the new West Germany. There they worked for a new cause: European economic and political integration,” writes Lebor.
• Europaische Wirtshaftsgemeinschaft (European Economic Community)
• European Economic Community
• European Currency System
• European Central Bank (Frankfurt)
• European Regional Principle
• Committee of the Regions
• Common Labour Policy
• Economic and Trading Agreements
• Single Market
“The fact that the EU was a brainchild of top Nazi economists and industrialists, formulated as a means of preserving dictatorial power and then implemented by a former Nazi working under the auspices of the Bilderberg Group in 1955, proves that the entire European Union system is poisoned with a legacy and a raison d’être of totalitarianism.”