Zero Hedge: Under “Whatever it takes” Mario Draghi, the ECB used every trick to cover over the cracks of a failing Eurozone. At the heart of the trickery was bad debt being concealed within the TARGET2 settlement system. It is only by this subterfuge that major banks have been prevented from failing.
The Eurozone’s largest banks are over-leveraged, and their share prices question their survival. Furthermore, these banks will have to contract their balance sheets to comply with the new Basel 4 regulations covering risk weighted assets, due to be introduced in January 2023.
And lastly, we should consider the political and economic consequences of a collapse of the Eurosystem. It is likely to be triggered by US dollar interest rates rising, causing a global bear market in financial assets. The financial position of highly indebted Eurozone members will become rapidly untenable and the very existence of the euro, the glue that holds it all together, will be threatened. Read More
Opinion: Hold on a minute and back up to the TARGET2 settlement system that has prevented major banks from failing.
From the Article: “But since the Lehman crisis, the EU has stagnated relative to the US”.
It was the Lehman crisis that began in 2008 that led to the Federal Reserve money printing scheme called quantitative easing (QE) that began in 2009 and continued until a brief pause in 2014.
It is that mortgage crisis that I believe marked the end of the US economy. The proof is that money printing never really stopped, it continued under innocuous names like “Twist” and “Repos” until the 2020 financial collapse caused by the Covid -19 crisis. In March 2020, the Federal Reserve whipped up another $6.8 trillion in printed money and the bull market resumed. Everybody was happy with printed money.
Since then, the Fed has added $120 billion per month to keep the bull market charging, while then European Central Bank Chief, Mario Draghi (dragon), started the Euro printing press:
From the Article: “Under ‘Whatever it takes’ Mario Draghi, the ECB used every trick to cover over the cracks of a failing Eurozone. At the heart of the trickery was bad debt being concealed within the TARGET2 settlement system. It is only by this subterfuge that major banks have been prevented from failing.”
So as we have tried to guess in numerous posts since 2008, which comes first, the crashing dollar or plunging euro? Actually, it doesn’t really matter, the 1st and 2nd largest economies are joined at the hip.
We know from history that the Roman Empire was never conquered, and we learn from Daniel 2:32-33, 7:19, 9:26, that the 4th beast is revived Rome, and that out of the 10 kings (presidents) of the coming empire, an 11th king will rise who will be different from all other kings who came before him.
He is Satan’s man, Antichrist, and he is likely watching from the wings today.
(see our post “Gundlach Warns U.S. Is On A “Roadmap To Losing Global Reserve Currency Status” HERE)