Breaking News * Urgent * Telegraph: EU On Verge of Systemic Economic Collapse

Are we at that part of the titanic movie where Jack tells Rose to hold her breath?

But first a major natural disaster will occur first thus nailing the coffin for good on the economy.

'...Europe's leaders have finally run out of time. If they fail to agree on some form of debt pooling and shared fiscal destiny at Thursday's emergency summit, they risk a full-fledged run on South Europe's bond markets and a disorderly collapse of monetary union...'

AEP knows full well the "shared fiscal destiny" will not be forced down the throats of the population.

Sure, the politicians will jaw jaw about it, but imagine the situation where your countries whole fiscal independence were to be removed, because that is what they are talking about.

This WILL force people into direct confrontation with their governments.

Bring it on.

Soooo glad we didn't get into that EU-stupidity ...well mostly anyway.

I took yesterday off work and we moved our money to a safe place. Whew! That was close!

'...Europe's leaders have finally run out of time. If they fail to agree on some form of debt pooling and shared fiscal destiny at Thursday's emergency summit, they risk a full-fledged run on South Europe's bond markets and a disorderly collapse of monetary union...'

AEP knows full well the "shared fiscal destiny" will not be forced down the throats of the population.

Sure, the politicians will jaw jaw about it, but imagine the situation where your countries whole fiscal independence were to be removed, because that is what they are talking about.

This WILL force people into direct confrontation with their governments.

Bring it on.

Really...

I only wish we had followed your example and done the same, though we did manage to stay out of the Euro, which is somethin'. However, can't help feeling it will do us no good what so ever....

Are we at that part of the titanic movie where Jack tells Rose to hold her breath?

Really...

No, it will not happen, never. That would mean collapse of the rest of the world's currencies as well and if that were the case, China would be on it and it is not happening. USA will once again as a mass of pussies invalidate their debt ceiling and cry to the world everyone else is wrong. Uh. Why do yon not see it are you all blind it is obvius. For god sake as you lll say.

Pin this! The Telegraph is probably the most serious, straight-laced and respected newspaper in the world. For the Telegraph to be running this story shows how bad it really is.

This isn't the usual fear-mongering; this is it I think. We truly are staring into oblivion.

Europe is on the edge of meltdown and the US is looking like it may default. Welcome to the end of the west as we know it.

Yet the Dow is up up and a away!

Looks like this is it, folks. Full-scale systemic economic collapse may have just started. I would very much appreciate it if this thread was kept open for serious discussion.

Just out, 45 minutes ago, From Ambrose Evans Pritchard of the London Daily Telegraph, (Ambrose Evans-Pritchard is International Business Editor of The Daily Telegraph. He has covered world politics and economics for 30 years, based in Europe, the US, and Latin America. He joined the Telegraph in 1991, serving as Washington correspondent and later Europe correspondent in Brussels).

[link to www.telegraph.co.uk]

Only Germany can save EMU as contagion turns systemic

'...Europe's leaders have finally run out of time. If they fail to agree on some form of debt pooling and shared fiscal destiny at Thursday's emergency summit, they risk a full-fledged run on South Europe's bond markets and a disorderly collapse of monetary union...'

'...The International Monetary Fund said there is now "serious risk" of eurozone contagion with "large" potential knock-on effects worldwide. "Market participants remain unconvinced that a sustainable solution is at hand," it said.

Suki Mann from Societe Generale caught the mood in a note to clients, asking whether it is "all over". "Eurozone politicians don't – or don't want to – understand that the eurozone as we know it is on the precipice. Greece appears beyond repair, Italy is on the brink, and the chances are that the euro might be no more very soon," he said.

RBS fears that Europe is on the cusp of "system-wide convulsion" after yields on Spanish 10-year bonds reached post-EMU records of 6.34pc this week, and Italian yields topped 6pc. "We believe that Spain has entered the danger zone for yield levels," said Harvender Sian, the bank's credit strategist, who fears the "point-of-no-return" may be 6.5pc. "Given that Spain [and likely soon Italy] has entered this territory, there is a growing risk that a large systemic risk event is plausible in the near term and if not then in a matter of weeks."

The bank has called for a bail-out fund with €2 trillion of full lending power to stabilise the system, even if this risks pushing German debt levels above 110pc of GDP and causing apoplexy in the Bundestag.

The bond fund Pimco has its own idea: throwing Greece, Ireland and Portugal to the wolves, and concentrating €1 trillion in "overwhelming force" to defend Spain and Italy. That major players should utter such thoughts shows how fast events are moving.

For 18 months the EU has treated the serial crises on the EMU margins as liquidity headaches. It hoped that time would slowly lift the distressed debtors off the reefs, while the penal terms of "Ultima Ratio" attached to bailout loans would deter other EMU states from seeking help. "Shock and Awe" rhetoric would do the rest.

The strategy has failed because it did not acknowledge that the deeper crisis is a North-South structural gap that has left half the eurozone with variants of 1930s debt-deflation, a condition that cannot be solved by austerity measures or by any one country alone.

"We are approaching the endgame for this part of the European sovereign crises: the number of cans that now need kicking down the road would challenge the left foot of Lionel Messi," said Gary Jenkins from Evolution Securities. "The chances are that the EU will only take the step of fiscal union or common bond issuance at one minute to midnight on a weekend when it is clear that the system is close to collapse." ...'

For more, see link above

If you're in Europe, I recommend you get your savings somewhere safe right now.

Soooo glad we didn't get into that EU-stupidity ...well mostly anyway.

Nice sentiments bro but they have already proven their power in the preliminaries. The Irish, godbless 'em, probably the strongest nation mentally on the planet, were steam-rollered into a punitive re-payment system with hardly a arm raised in anger. And these guys took the Monarchy on for 50+ years with a willingness to die for a cause.
all washed out now by game shows and euro cash

All we have to do is force the oligarchs to return the stolen loot. Were talking 28 trillion from America alone.

The perfect storm is brewing: the disintegration of the Euro coinciding with a US default.

Likely outcome: widespread civil conflicts.

Germany will rise again