Should I be happy or sad?

As the author of a numerous anti-EU articles issued over the past decade, it has warmed my heart to watch the level of EU criticism “take-off” during recent months.

Moreover, seeing protesters from all over Europe converge on Brussels is something of which our nations politicians should take note.

What so sad?

This is because the collapse of the EU will now occur, with massive European sovereign and house-hold debt, which means, by the time the “monster” is laid to rest, over 350 million people living in Europe will be living close to, or on, the bread-line.

But that is not the end of it, the fall-out of the EU and American debt, will be that almost every person on the planet will see their standard of living drop massively.

America, with its 300 million people will possibly collapse before Europe does, because against popular understanding Quantitative easing will not work. Once an inflationary spiral gets going, it is really difficult to stop. Just ask anyone who lived through the Weimar Republic or anyone who lives in Zimbabwe today – So all QE is doing is slowing the speed at which America and American business reaches a collapse, it is not going to stop it.

Therefore, the belief by Americans that QE will help “export” debt and inflation is going to prove disastrously false.

Oil and other commodities are only priced in dollars, because they were the planets “Head Honcho’s”. But, the word to note is “were”. America no longer runs the planet, and there are many countries around the globe, who are already discussing creating an alternative global currency to the dollar. Hell it has even got a name – Bancor!

But Bancor is not new, it is a concept created in the 1940’s by John Maynard Keynes, which has resurfaced; following support of the idea by the Governor of the Peoples Bank of China, along with Russia, Japan, India, the Gulf States, the IMF and, perhaps not so surprisingly, the French.

It’s resurfaced because of the current fear of something called the “Triffin” Dilemma or paradox; which is when a national currency also serves as an international reserve currency – There could be conflicts of interest between short-term domestic and long-term international economic objectives.

The collapse of America, along with the restructuring of Europe, will bring the remaining remnants of our consumer-lead lifestyles to a rapid conclusion.

Job-losses will continue to escalate and the risk of civil disorder will intensify.

I know people do not like my long term prognoses, but what is happening today I wrote about in July 2008 (see report) and I have been writing about the collapse of the Euro and the problems of the EU since the 1990’s.

The thing we need to understand, and indeed should have learned by now, is that big is no longer beautiful, nor sustainable. We should downsize and prepare.

I do not write to make people miserable, I write to help people prepare. I really hope that my views are misplaced, but I am not going to be blinded by the political spin about the potential problems.

As Helen Keller once said, “Being blind is a problem, but it is a lot better than having sight and not being able to see what’s ahead of you”.

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