Deepening Debt Contagion - by Stephen Lendman
Global economic Depression worsening.
With pressure building on Europe and America, something's got to give. Progressive Radio News Hour regular Bob Chapman says Germany's Angela Merkel and France's Nicolas Sarkozy search for solutions that don't exist.
Nothing's agreed on to be implemented. Austerity weakens failing Eurozone economies. French and other banks are selling bonds. Yields are rising. So isn't economic, financial and political uncertainty.
Europe's in disarray. Germany printed Deutsch Marks just in case. It "has to come to terms with cutting loose six loser countries. That means leaving the euro and perhaps the EU. We see no other choice in this unnatural" union.
"The future of the euro zone is sealed." By fall 2012, "there will be six less participants." Europe's economy will have negative growth, worsening in 2013. Other Eurozone countries will be forced out. In two years or less, "the euro is history." No one knows how bad things will get. They do know today's crisis won't end soon.
New Greek and Italian governments can't resolve intractable issues. Of concern is how much more austerity can people take before exploding.
At the same time, Eurozone and US leaders are whistling past the graveyard. Perhaps they didn't notice bond market contagion affecting highly-rated countries like Austria, the Netherlands and Finland, indicating worsening crisis conditions.
A recent Bank of England quarterly Inflation Report also was downbeat, saying: