by John Galt
August 16, 2012 19:05 ET
While the American financial media continues its summer bliss of ignorance, failing to understand the reality on the ground in the PIIGS and Eastern European nations whose economies are collapsing, Ambrose Evans-Pritchard spells out a warning in tonight’s commentary from the U.K. Telegraph:
As the Finns have long been skeptical of the bankster bailout plans submitted to keep the Brussels-Berlin axis afloat, this shocking bit of news should be a wake up call for those who continue to think that the Euro currency as it exists now is saved or even can be saved. While the Finnish are preparing for the collapse, so are the miserly banksters of Old Europe, shielding assets, refusing to loan to institutions in the soon to be ejected nations, and cutting special deals with the other central banks of the world to guarantee they do not feel the impact of this seismic event.
Mr. Pritchard hits the point in the cautionary extract from the article linked above:
“We have to face openly the possibility of a euro-break up,” said Erkki Tuomioja, the country’s veteran foreign minister and a member of the Social Democratic Party, one of six that make up the country’s coalition government.
“It is not something that anybody — even the True Finns [eurosceptic party] — are advocating in Finland, let alone the government. But we have to be prepared,” he told The Daily Telegraph.
“Our officials, like everybody else and like every general staff, have some sort of operational plan for any eventuality.”
Mr Tuomioja’s intervention is the bluntest warning to date by a senior eurozone minister. As he discussed the crisis, the minister had a copy of the Economist on his desk. It had a picture of Angela Merkel, the German Chancellor, reading a fictitious report entitled “How to break up the euro”, with a caption: “Tempted, Angela?”
The boldness of this statement by this tiny Nordic nation is a hint as to how severe the undercurrents are within the remaining, relatively healthy economies within the EU. Sadly, that reality has gone over the heads of Wall Street as the Euro currency versus the dollar has provided the impetus for a rally based on another lie from the head of the ECB and a dead cat which has achieved nothing better than a 10% bounce off critical mass on extremely low volume:
Based on the technical damage done to the Euro alone, unless the currency is pumped and dumped above the 1.2640 level, I have one bit of advice for the Finns and the entire West:
Prepare for impact.