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Citigroup send notes to clients: Eurozone is "Doomed" to Fall Apart

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posted on Apr, 21 2010 @ 09:54 AM
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The financial services firm, the largest in the world and one of America's big four banks, says that if such integration is not on the cards, the euro area is "doomed" even if the current Greek crisis is resolved.


Citi sent a notice to all it's clients that the EU is doomed to fail unless the European Union's member states fuse both on the fiscal and political level.



"Europe needs to stand up and decide if it is going to be a ‘United States of Europe' or a ‘patchwork quilt' of independent states," reads a note by Tom Fitzpatrick, chief technical analyst at Citigroup in New York, first seen by Bloomberg.


WOW, the United States of Europe... will we see the day. I doubt it, and it looks like the only other alternative is that the eurozone will fall apart. For Citi to be sending notices to clients that must mean they know something is terribly wrong.
Here is Citi's analysis of the situation:



"A makeshift assistance should be enough for Greece, but that leaves Spain, Italy, Portugal and Ireland. Together they constitute too large of a portion of the Euroland to he helped in this way…The survival of Greece would still leave the future of the Euro in question," he told the Financial Times.

"The construction is patently flawed. A fully fledged currency requires both a central bank and a treasury. The treasury need not be used to tax citizens on an everyday basis, but it needs to be available in times of crisis," he said. "When the financial system is in danger of collapsing, the central bank can provide liquidity, but only a treasury can deal with problems of solvency."


In other words the system does not have a fail safe. There is no one to step in and regulate and bail out the countries that are failing. Not only that but without centralizing there monitary system there is wide spread minipulation of the system.

For instance some of the countries hide there true debt in "military spending" which for security reasons does not have to be disclosed to the other member countries. There are too many loopholes in the system and if it is not regulated in will fail...

Well according to the worlds largest financial services firm anyway...

Source: euobserver.com...




[edit on 21-4-2010 by trueperspective]




posted on Apr, 21 2010 @ 10:10 AM
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Should be looked at with skepticism. Citi undoubtedly has other motives at work which are designed to increase it's profits. They want to profit on the failure of the Greek banking disaster.

Haven't we learned by now that we can't trust what the big banks in America say? They did just screw us.



posted on Apr, 21 2010 @ 10:13 AM
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Originally posted by trueperspective
WOW, the United States of Europe... will we see the day. I doubt it, and it looks like the only other alternative is that the eurozone will fall apart. For Citi to be sending notices to clients that must mean they know something is terribly wrong.


Doubtful. I think it's more likely they've hedged their bets and stand to profit from bad press. Sure the EU is doomed by why would Citi care?



posted on Apr, 21 2010 @ 10:15 AM
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reply to post by belial259
 


I don't know, but the letter was to there clients. Maybe they are warning to jump ship. I don't think this is just talk.



posted on Apr, 21 2010 @ 10:38 AM
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Billionaire financier George Soros thinks the euro and the European Union itself are at risk of breaking up if Germany refuses to play its traditional role and make concessions, he told a newspaper.


Money News

They want more money from Germany. Honestly that might be the reason they even made the EU in the first place. The UK spent years wrecking the common markets before it became the EU. And today City of London is still the financial capital of the world.



posted on Apr, 21 2010 @ 10:46 AM
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After all the rigged market maneuvers we have seen the big banks pull off, this reeks of another such move. Telling their clients one thing while behind the scenes they are doing the opposite. I can't wait to hear what Max Keiser thinks of this.



posted on Apr, 21 2010 @ 10:47 AM
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Ok, the general consensus is that this is just talk... My question is, what is the end game?

Citi sends out letters to their clients that the EU is in shambles and that helps out Citi how???

What source does this info need to come from before it will be taken seriously?



posted on Apr, 21 2010 @ 10:50 AM
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The EUROZONE will lock together in a fiscal sense similar to that of the US but still with slight sovereignty for member states..

It is almost unstoppable.. Especially with the new constitution.. But that is only 14 nations.. Not the Entire EU.. And it won't be like a United States of Europe.. It won't be all that much different from what it is now.. It will be the CORE EUROPE that Italy, France, Spain and Germany are always talking about..

The main players are fighting it out bit by bit but the only ones that seem to have any say at the moment are France and Germany.. Once they have an agreement on fiscal policy, strategy and Treasury policy, its going to be done..

But the EURO needs a couple of more pretty serious "Cliffhanger" moments before they will all agree that it must be settled to calm the markets and voila.. Fiscal Union..

ETA 3 years IMO.



Either that or Germany will crash the whole thing but I can't see that happening.. It will move forward at pace once the German elections are done..



posted on Apr, 21 2010 @ 10:53 AM
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Originally posted by trueperspective
What source does this info need to come from before it will be taken seriously?


Someone in the EU that isn't a rogue billionaire investor on the prowl. Or one of his many media outlets.

Greece doesn't actually have an LTD after it's name so it and every government in the EU or even the individual states and towns inside the US are fair game because they actually have unlimited liability.

Wiping out the entire GDP of small African and European countries probably got boring for Soros years ago.



posted on Apr, 21 2010 @ 10:54 AM
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reply to post by Dermo
 


So could this lead to the true rise of Rome. Maybe the EU was just a precursor for the real thing? Maybe they needed all of the other countries to get started, but now they are ready to shake them off and become the dominant World power.



posted on Apr, 21 2010 @ 10:57 AM
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reply to post by trueperspective
 


This is no big deal. All of these firms publish opinion pieces and distribute them to clients on a monthly or quarterly basis. It is just that, an opinion. For clients who have a like mind, they may call their brokers and talk about investment strategies such as envisioning national entities that will need to grow in the event of an EU break-up or sectors of the European market that will benefit from such an action. For example, you may go long with German companys since as the strongest economy in Europe, Germany may get a boost not having to prop up failed states like Greece. There may also be non-European countries that will benefit as current member states will be free to trade more openly with non-EU members.

I don't think its anything more than that. These firms also want to be in a position of being able to tell clients that they were informed of their position on the EU and to the extent that the client's portfolio gets hammered they can point to the article and say "see, I told you so". If it does not happen, they will simply have another egg-head write another piece telling clients how the "bold action by the European leaders saved the EU" or some such bs



posted on Apr, 21 2010 @ 11:04 AM
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Originally posted by Dermo
It is almost unstoppable.. Especially with the new constitution..


But it's got a single currency and it's laws make it very vulnerable to speculators from outside trying to blow it up.

Look at them. They're too paralysed to do anything collectively without stabbing eachother in the back. It's taken them ages to make a bailout the Fed could have printed in seconds. And so far all they've actually issued was a statement which hasn't had any effect.


[edit on 21-4-2010 by belial259]



posted on Apr, 21 2010 @ 11:09 AM
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reply to post by dolphinfan
 


Seems like some pretty harsh words for just a quaterly outlook. Do you think that these type of notes to clients are self fulfilling prophecy?

They send out the notes and everyone pulls out and the system fails?



posted on Apr, 21 2010 @ 11:22 AM
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I think if the EU really wants to survive it needs to become more global and have a global reach.

Sure they can effect change in their own internal market but they're bound by the WTO and in a global world. They can't regulate what everyone else is doing.

The certainly can't take care of regulatory issues in America with primarily American banks using American deregulation.



posted on Apr, 21 2010 @ 11:33 AM
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Originally posted by trueperspective
So could this lead to the true rise of Rome. Maybe the EU was just a precursor for the real thing? Maybe they needed all of the other countries to get started, but now they are ready to shake them off and become the dominant World power.


Rise of Rome?

I don't really read into the Prophesies and that mumbo jumbo mate, explain lol

European integration is exactly what it says on the tin.. Its there to create an EU nation of sorts and keeps moving towards that.. Everyone on the continent is pushing for it. If it plays into the 'Rise of Rome', then maybe so but I thought Rome had risen and fallen numerous times in the past three millennia..

And the EU isn't controlled from Rome, its from Brussels..

?



Originally posted by belial259
Look at them. They're too paralysed to do anything collectively without stabbing eachother in the back. It's taken them ages to make a bailout the Fed could have printed in seconds. And so far all they've actually issued was a statement which hasn't had any effect.


So what are you saying exactly? That they will just give up using the EURO?

Tthe issue with Greece was over exaggerated by the US and Brit media.. Also Goldman Sachs was betting against it and using its press releases to play games in the markets with it.. Noone in the EU thought Greece were going to collapse.. Countries just don't collapse overnight.. Especially rich states that are a part of the EU.. There is a big game being played by all parties and the political Games inside the EU are on levels that are incomprehensibly intricate to most.

You're also looking at this as if its a rigid object.. The main reason for this problem is because it had never happened before so there was no policy in place for a pan EU reaction.. Now there is a makeshift one.. Soon there will be a standardized one that can come into effect in days..

Also, they were only paralyzed to that point because the German elections are coming up.. The German Chancellor has made her point and is now moving forward.. Most of the issue was over the argument between Germany and the EU, Germany and Greece and Germany and France.. Thats all done and dusted..

Because of the problems that arose over the Greek issue, the EU commission will push through legislation creating a Fiscal policy.. This will be signed off by member states.. Germany will be the problem as it has the most to lose and must secure the interests it needs because it is a gigantic economy.

Its easy to see it the way you have but when you look closely there is a massive game being played.. What will happen is when the EURO is ACTUALLY threatened by the markets, the states that are using it will have a choice..

Either collapse the currency and start again with new currencies therefore setting themselves back 20 years in wealth and progress or Join up in a fiscal union.. Its that simple.

What do you think they are going to do? Collapse it?

Common sense dictates that they won't..


[edit on 21/4/10 by Dermo]



posted on Apr, 21 2010 @ 12:30 PM
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reply to post by trueperspective
 


I get these kind of things in the mail on a quarterly basis and the tone of this one is not atypical. They probably have a couple of investments that they honestly belive are prudent at the current time and are looking for folks to move assets.



posted on Apr, 21 2010 @ 12:51 PM
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All conspiracy theorists rejoice. You are almost ready to be validated officialy.The NWO is trying to give birth to itself in Europe.
Pretty fascinating if you think of how the simple the mechanism worked so far. From now on is pretty predictable.

First they corrupted the gouvernments ( no biggy, easy task) and bankrupted them financially.

Then they come out with innuendos stating the end of the world as we know it if contries don't give up their sovereignty and be assimilated into one big gouvernment.

The rest is just working itself out. Put pressure on smaller European countries,call them the paria of the group and make them work twice as hard just to be part of the union.

And someone above was asking how this type of rumor helps Citi ? Not right now it doesn't,but they are not looking for today. The "right" idea needs to be planted and people conditioned to it in advance...then,they'll see it normal, and maybe aks for it themselves


And I am NOT a NWO adept.



posted on Apr, 21 2010 @ 01:10 PM
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1. This is just Citi using it's massive influence to manipulate markets.
2. Have you been to Europe? They are fairly strong but they are no way about to become the number 1 world power. You can learn a lot just from visiting somewhere.
3. Western Europe is a really nice place. They are somewhat less draconian than our own government.
4. I'd be more concerned about the re-emergence of Russia. They are in expansion mode, and acting very aggressively. (note the Polish "accident", as well as armed insurrections in former Soviet states)
5. The stronger Europe is, the better for us. We can't do everything, and though far from perfect, I still prefer Western Civilization to what else is out there.



posted on Apr, 21 2010 @ 02:50 PM
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reply to post by trueperspective
 




For Citi to be sending notices to clients that must mean they know something is terribly wrong.


Or.....
It's a move by Citigroup to try to consolidate the EU.
It's much easier to manipulate a sigle entity than many individual entities.



posted on Apr, 21 2010 @ 02:53 PM
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Originally posted by trueperspective

What source does this info need to come from before it will be taken seriously?


A source other than Citigroup.
Citigroup is not a source,
it is a



financial services firm, the largest in the world and one of America's big four banks



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