A Continent In Trouble

Submitted by Tyler Durden on 04/17/2013 08:44 -0400

Via Mark J. Grant, author of Out of the Box,

Europe is in trouble.

The levitation that takes place in the early morning hours in the Euro, the incorrect counting of both assets and liabilities, massive losses hidden in securitizations at many central banks including the ECB and the riskiest of assets lined up and labeled "Risk Free" and the bells of St. Rimney's begin to chime. Unemployment at record levels, countries such as Greece, Portugal, and Cyprus that can't pay their bills without Divine intervention and economies that are rapidly shrinking even with the help of Europe's falsified accounting practices.

Ireland is no better, France, Belgium and the Netherlands are in decline and the money created by the ECB is all that separates the Continent from Depression. The problem is, the glue is cracking, stitches are coming apart at the seams and the fantasy that has been created is now day-after-day being shown to be what it actually is; a tragedy of the first order. Every reasonable game that could be played is now an historical footnote. The new games, such as seizing depositors' money in Cyprus, aren't much fun to play.

Spain is an example here; more than 95% of their pension funds are invested in Spanish sovereign debt but 100% is encroaching and the end is nigh. Ireland is running out of cash again. Portugal is out of cash. Cyprus needs about twice as much in loans as admitted. Greece has run up a bill where every new loan pays back the European banks, pays the interest on their debt while the country sinks slowly into the Mediterranean.

The IMF, once thought to be a stalwart institution, has helped to create the fantasy and they have lied and perjured themselves in a shameless fashion. Not one, not one projection for Europe has been anywhere close to the truth and yet they continue to minimize the damage. The IMF has partnered with the Europe and not only turns a blind eye but admits none of their own deceit and so is an accessory to the larceny both before and after the fact.

The investment of money in Europe is now a risk far greater than present yields can justify. Senior debt, subordinated debt, deposits; anything can now be taxed, confiscated or impounded at the direction of Brussels/Berlin. Nothing is safe!

Every scheme in Europe than can be rigged has been or is being rigged and, in the end, it will only be the fools that are left in this game. It is not the greater fools either but the mandated fools who take directions from Brussels who takes their directions from Berlin.

I cannot emphasize enough the great risk that anyone takes now by investing in anything in Europe. You can ignore liabilities, you can play pretend and not count liabilities but in the end they are still there and the losses must be finally acknowledged.

Gold gave you a head's up. The margin calls in gold quickly infected the equity markets and the margin calls in stocks gave you a second head's up. The playing field is shifting and the days of wine and roses are giving way to the days of vinegar and poison ivy.

You got the warning now please try to retain your head before the guillotine of Europe removes it from your neck.