By John Galt
October 16, 2011 – 16:45 ET
Tonight’s edition for the October 17 print edition of the UK Telegraph’s latest from Ambrose Evans-Pritchard is about as cold, real, and hardcore as it gets.
The article in full spells out how a “union” in Europe, and I use that term with a smug smile, could well lead to a financial crisis worse than Lehman and Merrill’s collapse combined without ever hinting as to the direct impact on the world economy. The sentence used in the title is only an extract from the full article available at the link below:
So let’s begin to understand this together by reading the tease at the top of the article:
Europe’s banks face a $7 trillion lending contraction to bring their balance sheets in line with the US and Japan, threatening to trap the region in a credit crunch and chronic depression for a decade.
Drastic enough for my readers yet?
If not, try this excerpt from the story:
The risk is “Japanisation” without the benefits of Japan, without a single government, or a trade super-surplus, or 1pc debt costs, or unique social cohesion.
Even today, the jobless rate for youth is near 10pc in Japan. It is already 46pc in Spain, 43pc in Greece, 32pc in Ireland, and 27pc in Italy. We will discover over time what yet more debt deleveraging will do to these societies.
Disaster appears to be the order of the day. The powers that be and their media minions will do everything in their power to insure that the sheeple will believe that the leaders of the G20 and the so-called free world have a clue as to what they are doing.
Reality will dictate otherwise.
Click on the title above to read the entire story from the Telegraph and begin to understand that we are moments away from a nightmare worse than 2008 if we are lucky; days if we are blessed.