This piece was reprinted by OpEd News with permission or license. It may not be reproduced in any form without permission or license from the source.
S&P suggested potentially devastating downgrades for France, other Eurozone countries, and possibly Germany. Moreover, the IMF warned of conditions "reminiscent of the 1930s depression," saying dramatic action is needed.
"The risks of inaction include protectionism, isolation and other (destructive 1930s) elements. This is exactly (what) happened....and what followed is not something we are looking forward to."
However, everything tried so far failed. Debt levels keep rising. Austerity means less spending, fewer jobs, and greater public anger than today's high levels.
Insolvent sovereigns and banks are spreading contagion globally. At the same time, "(t)he more that governments cut their budgets, the more they sink their economies, and the bigger their bank losses. (Moreover), the more that banks seek to build their capital, the more they have to (cut) lending - a key factor driving the global economy into a tailspin."
An early 2012 Martin Weiss study will show 16 of the world's largest banks weak and vulnerable. They control $26 trillion of global banking assets, far more than all US commercial banks combined.
On December 16, Moody's downgraded Belgium two notches and warmed of others in all 17 Eurozone countries.
As a result, Weiss believes 2012 will be worse than 2008. At yearend, large global banks have far less capital now than then, and governments have less bailout power to help.
However, publicly, governments, bankers and media scoundrels are in denial. Weiss quoted Emil Zola a century ago, saying:
"If you silence the truth and bury it underground, it will grow and gather such explosive power that the day it bursts through it will blow up everything in its way."
(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).
