Posted May 31, 2013 by Martin Armstrong
The freedom to travel in the European Union that was to be the cornerstone of the whole issue behind the Euro is now being shut-down. The EU Member States are now allowed to reintroduce border controls at will. This is all the result of what I have reported that apartments in Germany were almost all sold out as Spanish headed to Germany for relief payments. Again, because there was no consolidation of the debt the Eurozone is crumbling. They claim this will increase the security and stability, largely because they fear rising civil unrest this summer.
This is what a Sovereign Debt Crisis is all about. We lose all our rights and government clings to power becoming more draconian day by day. They are strangling the world economy beyond belief. Without major structural reform there will be nothing left. We have to blink – we just have to.
The Cyprus Crisis evolved into permanent currency controls. You can still only take out 300 euros. Any purchases need approval and verification of invoices. Businesses in Cyprus are now opening accounts in Switzerland, Luxembourg, and Lichtenstein diverting foreign payments themselves. The banking industry was destroyed. All that was left is tourism and Russians stopped going there. Tourism so far is off by about 40%. If they lose that, Cyprus has absolutely nothing left. Just for the record – Cyprus collapsed NOT because of its own problems, derivatives, or debt. Their banks were defaulted on by the Greek Sovereign Debt default. That was the problem with the failure to create a single debt. All state members debt became reserves. The EU promised there would be no defaults. They lied. That wiped out the banks and hence the depositors.
There are still diehard Euro fans that just hate the dollar. So as long as they exist, there is hope for a major crisis and we see the collapse that will spark a dollar rally, upset the US economy turning it down, and then perhaps we will get real political reform when there is enough blood in the streets. Not exactly sure how the Euro is the greatest advance in monetary systems other than being the catalyst to create the economic collapse of Marxism. But hey – to each his own.
“You don’t see what I see. The Euro is a better currency for being seperated from the states, finally governments are responsible for their own debts, no central bank to bail them out. What will that lead to? Smaller government of course (the ECB continually says they will not support government deficits, nor insolvent banks, and their actions prove this). You recently bemoaned the way the Fed has gone, yet you cannot see that the Euro and the dollar, the Fed and the ECB, they are polar opposites.
You are welcome to ask me questions, no man knows it all, but time will prove the Euro is the biggest advance in mankind’s development since the industrial revolution, as big as the internet. One day all currencies will be built this way, and the world will be a better place.”