European Union, Currency Are Headed for Collapse: Gartman

he current European debt crisis likely will not end until the euro collapses as a currency and takes the entire European Union with it, said Dennis Gartman, hedge fund manager and author of "The Gartman Letter."
"I think the whole thing will go down to defeat, the whole thing will eventually unravel," Gartman said in an interview with CNBC.com.

Gartman said he doesn't have a specific timetable for how long it will take for the collapse of the 17-year-old EU, but said, "it doesn't look good."
he debt problems continued to escalate Wednesday as Greek citizens rioted in the streets over proposed austerity measures that would be required for any rescue plan to gain approval.

At the same time, Moody's warned that it might downgrade the debt for Portugal, accelerating worries that Greece's unremitting debt worries could spread across the continent.

The chaos was enough for Gartman to advise US investors to get out of the stock market.

"It means confusion, it means a stronger dollar, it probably means weak commodity prices," Gartman said. "I think they should be out. People should be on the sidelines and out."
A correction of as much as 15 percent in the US market "would be normal," he said. "There's always a chance we could get worse than that."

In his daily letter to investors, Gartman said there is little chance of a peaceful, successful resolution of Greek's troubles.

"The modern Greek culture is so dependent upon government largesse, and is so used to the fact that Greek fiscal irresponsibility will be bailed out by the taxes paid by responsible German workers and businessmen, that we cannot see this being resolved short of Greece being summarily tossed out of the EMU, or removing itself voluntarily," he wrote.

He added that "we are not naive. Rather we are realists, and realists know that little other than chaos and the eventual breaking up of the EUR is the way of the future."

www.cnbc.com...

I wanted to copy and paste the whole article so that if this one too gets removed we have a full copy of it.(also save you guys a few clicks)

It would seem that many of the so called experts the world over have been saying this for weeks;some for months now. But time and again the articles are removed with in hours!
I truly hope that they are going to be proven wrong.The onslaught of downgrades for the general area and those with heavy ties to Greece is just making a bad situation worse in my opinion.

I am finding it really disheartening that banks are "to big to fail".But entire countries are being fed to the dogs. I understand that like the banks they have gotten into some obvious troubles over mismanagement; but these are entire countries full of people we are talking about. Not just one building full of a bunch of overly rich greedy people.

Okay.. So..

This guy thinks the EURO will collapse.. Not now, not in the near future.. But judging by some of his previous predictions, it will be sometime around 2030..

All this is because of the current fiscal policies across the EUROZONE..

Even though there is already talk of changing those policies within the next year..

And seeing as the EU wasn't even there 20 years ago, how does he know what its political landscape will resemble in 20 years time?

Going on what this guy is using to fuel his predictions.. I'd hold more stock in that guy who started that thread yesterday telling people he would tell them their future..

reply to post by xoxo stacie

It would seem that many of the so called experts the world over have been saying this for weeks;some for months now...

Here's an outstanding example, dating from January 13 2009:





Something has got to give. Whether the Euro itself faces major devaluation or certain countries are ousted from the Eurozone by these events, for example, some kind of paradigm shift seems inevitable. And imminent.

The only certainty I foresee is a significant, lasting drop in living standards for a lot of people within the Eurozone. Exactly who will experience this remains to be seen: will the pain be shared, or concentrated?

reply to post by Dermo


I was using this article as an EXAMPLE of what most of the "experts" have been harping on. The point being that yes the EU is in trouble with this mess..BUT why is it taking so long to help an entire country on the brink? When it took far less time to help the "to big to fail banks".
The Greeks country is in utter turmoil and there are sure to be others to follow. Moody's has been on a downgrading spree and other financial institutions are not only joining in but trying to cash in on the crisis at hand.
THIS: What is happening NOW is far more important than what is going to happen "down the road". The road is already here choose which fork to take..

Oh and PS we aren't talking predictions we are talking about what is happening NOW as we speak to people on the other side of the pond!

reply to post by xoxo stacie


Gotcha..

Its an awkward situation and its taking so long because the Germans are so pissed off over how Socialist the Greeks got over the past decade based mainly on their hard work.. German elections are stalling the whole thing.. However, they will be over in a few days and with the new Lisbon treaty passed, things can move very quickly..

Personally I think that France will cave on its pressuring of Germany over specific policies in a new fiscally controlled EUROZONE in order to save it.. Therefore creating a monetary 'United States of Europe' out of the EUROZONE nations, all based on German Economic values.. This will screw Greece and Portugal while hurting Spain and Italy for 5 years or so..

Either that or Greece will collapse, they will take Spain and Portugal with it over the next year, then the Eurozone, followed quickly by Sterling and then the World economy is going to be missing a third of itself.. What happens then? How much money does the US and China have invested in the EUROZONE? Trillions? Good bye US? Good bye China? Complete Global meltdown?

I don't think anyone wants that.. Not even the "New World Order" fans..

I think the plan is to create a one world currency under the IMF, and to create regional governments putting an end to nationalism.

Headlines from old news reports....china "wants a one world currency".


"We shall have World Government, whether or not you like it. The only question is whether World Government will be achieved by conquest or consent." -Paul Warburg (Feb. 17, 1950, to the United States Senate Committee on Foreign Relations)

"The drive of the Rockefellers and their allies is to create a one-world government combining super capitalism and Communism under the same tent, all under their control.... Do I mean conspiracy? Yes I do. I am convinced there is such a plot, international in scope, generations old in planning, and incredibly evil in intent." -Congressman Larry P. McDonald, 1976,

“For more than a century ideological extremists at either end of the political spectrum have seized upon well-publicized incidents such as my encounter with Castro to attack the Rockefeller family for the inordinate influence they claim we wield over American political and economic institutions. Some even believe we are part of a secret cabal working against the best interests of the United States, characterizing my family and me as "internationalists" and of conspiring with others around the world to build a more integrated global political and economic structure - one world, if you will. If that's the charge, I stand guilty, and I am proud of it." - David Rockefeller's (2002) autobiography “Memoirs” page 405.

reply to post by zzombie


A one world government is the evolution of our civilization... Thats simple to understand.. Anyone who doesn't see that has no scope whatsoever..

But the fact is that the EU is the poster boy and main global driver of this endeavor.. Why crash it?

And I know as much as anyone on this site about it so the explanation will have to be unbelievable..

Originally posted by Dermo
reply to post by zzombie

 

A one world government is the evolution of our civilization... Thats simple to understand.. Anyone who doesn't see that has no scope whatsoever..

But the fact is that the EU is the poster boy and main global driver of this endeavor.. Why crash it?

And I know as much as anyone on this site about it so the explanation will have to be unbelievable..

wow what a comment

I think your the one who has no scope of reality,


A one world government is the evolution of our civilization, i think not.


IF you havent noticed all empires have fallen so shall the EU since it to is an empire, EU will collapse.



[edit on 5-5-2010 by Agent_USA_Supporter]

I don't trust anything CNBC says.

Even if they are reporting on something that is widely being reported by everyone else they always have a slant, an agenda. And that agenda is that of their masters. Goldman Sachs.

Originally posted by Agent_USA_Supporter

I think your the one who has no scope of reality,

A one world government is the evolution of our civilization, i think not.

So what you are saying is the the unification of Mankind isn't the evolution of our civilization?

Think about it for a minute.. or even a year.. It makes perfect sense.. Not a government like your government but a unified World system.. Empire? How would it be an empire? We just need to evolve into it as a people..


But you are always the same dude.. You want the world to fail.. You want war.. Every single thread and comment.. You want anarchy.. You want Europe to fail.. You want the US to fail.. Every time I see your posts.. People die horribly in Greece, you laugh about how the system is collapsing..

No offense dude but I have about zero respect for your pattern of thinking..

You really should think it over rationally instead of just being depressive or insulting. If you want everything to fail so much, why don't you go out and do something about it instead of wishing it all the time..

Maybe those suicide bombers have a point eh?

reply to post by xoxo stacie


They said America would collapse in infancy as well... then it straggled on through severe recessions and depressions, culminating in the bloodiest war of it's time, the Civil War. State governments and sovereignty was destroyed, and the most powerful nation in the World arose from it's ashes.

This is the future I see for Europe.. soon there will be no nationalities, just being European ... and it's a shame.. but it's what the Progressives and the Globalist want, and they have the money to make it happen.

Dennis Gartman quote (OP):

"He added that "we are not naive. Rather we are realists, and realists know that little other than chaos and the eventual breaking up of the EUR is the way of the future."

This Gartman summation is right out of Richard Maybury's playbook. Maybury holds the patent on the term Chaostan. Central to his investment thesis is the concept that ultimately, capital flows and market trends are dictated by political power. In 1998 Maybury wrote a forward looking missive regarding the formation the EU.

Worth considering imho.

The Trouble In Europe
29-Apr-10

The trouble in Europe isn’t really about the euro, or about the debts of the governments; it’s about the European Union. The debt crisis and the fall of the euro are just symptoms of what might turn out to be a new war in Europe.

This was explained and predicted twelve years ago in the July 1998 EWR, when the euro was being created. Here is that article, titled “The Euro — Fascism Returns.”

Sincerely,
Richard Maybury - Full Text

reply to post by xoxo stacie


Is it not odd that the countries at risk are all off of the Mediterranean or have very similar cultural backgrounds? Portugal, Spain, and Italy are supposed to enter the crisis next after Greece. I wonder if there is any resonance in this to a historical event?

reply to post by OBE1


Only thing that throws a wrench into that report, and my beliefs.. is that many European countries are nuclear powers. This was once a good thing, now it's a bad thing.. wars being a natural progression of Humanity to ... trim the waste... so to speak, as you would a rose bush, with nuclear weapons war is impossible. Unless by some miracle all nukes disappear, war in Europe is impossible.. If war is impossible, subversive economic warfare would be the only option, but even that cannot be detached from politics, ie, warfare.

Unless... the Western powers descend upon an unsuspecting non-nuclear power? But even as the Iraq war shows, the cost out weighed the benefits and there was no surplus... no, the World economies desperately need a war of epic proportions, I just don't see how it can be done with nuclear weapons being in the way.

Perhaps biological? No war at all, but culling off hundreds of millions of people? That's one possibility the PTB could explore...

reply to post by xoxo stacie

The point being that yes the EU is in trouble with this mess..BUT why is it taking so long to help an entire country on the brink?

Because Europe is not what it appears to be. It is not about bettering the lives of its citizens, it is not about prosperity, it is about greed, power and control.

The ultimate destination of the EU is tyranny. The way they are refusing to devalue the Euro, the way Germany (one country out of 27) is ruling the show, are all hinting at what the EU wishes to become.

Anyone who thinks the EU is great really can not see the lie.

I hope Greece drags the Euro down with it. If it can cause the EU to self-destruct, all the better.

That the EU has recently started to be referred to as "The European Project" in the British media is also scary. By the time the general population wake up to what is going on, it will be too late (it already is for Greece).

I have to say I feel like a sitting duck right now and not sure which way to turn for the best. Stay in Spain and hope for the best or return to Britain and hope for the best? Both have their positives and negatives and I have 3 kids to think of and help plan a future.

Me and my husband have spent the last 18 months watching, waiting and delaying the decision. We'd love to stay in Spain but all our family are back in England and if things get really tough we might need them and them us.

We'll see what happens in Britain after the election tomorrow but my instincts say we should 'go home' - trouble is Spain is my kid's 'home' and my youngest has spent more than half his life here. Next few years look like they could be really tough wherever we choose to live.

Divide and conquor seems to be at play again and I just wish I knew where it was leading.

Originally posted by Dermo


A one world government is the evolution of our civilization... Thats simple to understand.. Anyone who doesn't see that has no scope whatsoever..

I starred your post , and agree with this statement.

You can't say things like this though , on this site.

People see evil behind every corner, every tree.

A 1 world governing body would eliminate wars,hunger , the need to

suspect thus fear your neighbours.

A one world government wouldn't work. You'd just end up with yet more bureaucracy, more taxes, and more people who would turn corrupt.

You would also still have groups trying to take control, and the greater the population they try and control in one go, the harder it is to police it all.

It will go full-circle, and end up that we live in small tribes of about 10 or 12, fighting with the tribe down the road...

Originally posted by xoxo stacie
The point being that yes the EU is in trouble with this mess..BUT why is it taking so long to help an entire country on the brink?

Resentment ?

Greece has received a-lot of help.

Athens has been the recipient of a rolling subsidy ever since Greece joined the EMU (2001 ?). The ECB accepts Greek bonds as collateral for low interest bank loans. This policy created an artificial demand for Greek sovereign debt, which in turn fueled profligate gubmn't spending, and at least initially, helped the country maintain artificially low interest rates and an inflated standard of living. Example: An Italian bank purchases Greek debt yielding 3%, then uses the bonds as collateral to secure an ECB loan @ 1%.

Since new Euros are produced to make these loans, this process represents an effective monetization of Greek bonds by the ECB...a transfer of purchasing power from other EU members on behalf of Greece. The cost of this policy is borne by the entire Eurozone in the form of rising prices.

Late Monday Trichet reaffirmed (emphasis mine):

Trichet May Rewrite ECB Rule Book to Tame Greek Risk

Trichet yesterday diluted rules for the second time in a month to guarantee the ECB will keep taking Greek government bonds as collateral for loans. - Full Text

On cue, the Euro responded with a vicious sell-off. Who in their right mind is gonna hold the currency, when the ECB president announces a game plan of QE to infinity ?

I think the runaway cost of Gold priced in Euros pretty much says it all.

reply to post by Rockpuck

I dunno Rock. I'm not co-signing Maybury's analysis, but a-lot of conventional weaponry rolls-off the conveyor belt each year, and how many regional wars are raging on any given day ? A European nuclear war...doubtful...M.A.D.