Graham Summers: COLLAPSE Of EUROPE Is GUARANTEED ! Here’s Why ..

Fact #1: EU Banks, as a whole, are leveraged at 26 to1

This is, of course, is based on the assets the banks are reporting. According to independent sources, the leverage levels are in fact far, far, greater than this – although 26 to 1 is already bordering on Lehman Brothers’ leverage levels

Fact #2: One Quarter of the ECB’s balance sheet is PIIGS debt
As part of its moves to save the system the ECB has gorged on PIIGS debt. Today, one quarter of the ECB’s balance sheet is PIIGS debt. Care to take a guess at what these assets are valued at? I guarantee it’s nothing near their real market values.

Fact #3: Even after all of its interventions and purchases, the ECB is far too small to contain this mess (ditto for the Fed)
Have a look at the following chart and tell me that the ECB or Fed could contain this mess.


If the Fed chooses to monetize everything to hold things up, then the U.S. Dollar collapses, inflation erupts creating civil unrest, interest rates rise killing the banks, U.S. corporations and the U.S. economy… all during an election year. Good luck with that.
Remember, the Fed’s QE 2 program which was a mere $600 billion (to bail out Europe the Fed would need at the minimum $2 trillion) pushed food prices to all time highs and kicked off riots and revolutions around the globe. Imagine what $2+ trillion would do.
Again, Europe cannot be saved. It’s too big and too leveraged. End of story. The collapse will come and when it does the Central Banks will not be able to contain it. If you’re not already taking steps to prepare for the coming collapse, you need to do so now.




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