Everyone has their predictions of how the global markets will collapse, and I have one for not only the collapse, but what might possibly come of it
as well (barring all-out war, which just flips the whole game board and upends everyone's plans): the rise of the Deutschmark as the new Global
In a nutshell, we have essentially all of the Eurozone funded by Germany with more funding need by most, certainly the PIIGS countries and
with all of its unemployment issues. Much of this is largely due to uncontrolled debt, a fate Germany has avoided by its early adopting
of austerity policies and the strength of its credit (among other things, but let's keep it short). They cannot legally fund Eurobonds by making
open-ended loans to other countries, so they must make a loophole that will allow them to pump more increasingly-worthless Euros into those countries
while the gettin' is still good:
Eurobonds backed by
Countries who have been through currency collapse recently are also stocking up on gold while the US is not:
Gold increasingly important
So where does that leave us in terms of dominoes? My prediction:
1) Spain and Greece exit the Euro, moderate-to-serious banking panic follows in Europe, moderate hits on the US and Asian markets.
2) The remaining countries, especially Italy and France, continue to push for anti-austerity measures and end up hat-in-hand asking Germany to get on
with those Eurobonds, please, and here's 20% of our gold as collateral.
3) Germany is given power over the bond repayment fund as agreed, and all of the money in the world still doesn't save the big-spenders from their
financial woes and the massively over-leveraged financial institutions sucking off their citizens, and they all eventually exit the Euro, giving up
their 20% gold as they leave.
The remaining PIIGS nations hold a reported gold reserve (in-country) as follows:
-Italian Republic 2,451.8
-Portuguese Republic 382.5
-Republic of Ireland 6.0
That's 568.06 tonnes of gold into Germany's coffers----at a hefty Euro price, mind you, but stay with me.
4) France eventually caves to its own
finally leaves the Euro as well, perhaps deciding to take the gold hit in exchange for its freedom back. Their stash of gold? It's the big one:
2,435.4 tonnes. That's an extra 487.08 tonnes of gold for Germany!
5) The US eventually caves to all of its debt woes and the contagion from Europe, its credit downgraded again on inability to cut the deficit and
introduce austerity of its own, and a massive depression of unseen proportions hits.
Lindsey Graham says "um, around
6) Germany returns to the Deutschmark, backed by its new stash injection of 1055.14 tonnes of gold, to bring its grand reported total to 4451.44
tonnes, compared to the US's reported
total of 8,133.5 tonnes. It's still second to the US, but by less now.
7) China's economy continues its tumble
spurred by exports to the US and Europe drastically falling, and when the snowball gets rolling there, it picks up speed exponentially more quickly
because of its enormous population. They are kicked out of the running for any hope of being the new GRC any time soon.
8) The Fed is finally
, right on schedule (thanks to the finally-viral campaigns of Paul et al), and Fort Knox made to give up its secrets: will there be gold,
or won't there?
If there's not........
Welcome to the new Global Reserve Currency. Sprechen sie deutsch?
edit on 2-6-2012 by 00nunya00 because: (no reason
edit on 2-6-2012 by 00nunya00 because: (no reason given)