Ein (gekürzter) Beitrag aus Martin Armstrongs Blog für Abonnenten:
What Should Europeans Do
QUESTION: Marty, in the private blog you are warning about possible distortions with the epicenter in Europe. You are warning to get out of funds with exposures in Europe. What should we Europeans do with the money in our bank accounts? Change some Euros in USD? Perhaps even Czech Crowns would be better than Euro in the account. I am fully aware that you do not want to set off a bank run but imagine so you can delete some parts of my question or answer without posting my question. Please imagine all the suffering when Brussel closes the banks or when the Euro loses badly. Although we already changed a lot of Euros into USD we still have some money left on the bank accounts. Please give us some hint what this could mean for us Europeans too and do not warn only the non-EU folks. How can and should people prepare who just own money on accounts. I really hope you can give at least a hint which is understandable. Many thanks anyway for stepping up to the fireline and risk your safety!
ANSWER: Those who are not in the Eurozone are really outside the crisis epic center. The threat that Europe poses to the world is this clash in policies that they maintain only bail-ins and no bailout because the latter would mean that capital from one country would flow to another to bailout a bank. This is the problem with the structural design of the Euro. It is NOT a real currency for Brussels is trying to control the budgets of each state. Then take the problem of negative interest rates. We have offices around the world so we have to deal with clients on every continent and these various governments along with central banks. I can tell you that central banks DO NOT want to hold Euros because of negative interest rates which means it is still a tax on Euros held outside the Eurozone. The Euro cannot compete with the dollar on any level. Its value is being held up by propaganda and ECB threats.
Part of the Repo Crisis is simply the concern that banks do not want to lend to banks, particularly European, because if a bank goes down and there is no bailout, then that means any other banks around the world would simply lose 100% of any European holding. This crisis is being caused by politicians who have ZERO understanding of how markets trade or the world economy. We are all connected and that means that governments cannot simply make decisions based upon domestic policy objectives ignoring international implications.
This is just a small part of the Repo Crisis, which can lead to a massive global contagion. I believe that there will be such an uprising politically against Europe on a global scale that a rational response will be to reverse this no-bailout policy. But that was the demand of Germany to join the Euro. It will require Germany to capitulate in their entire Austerity philosophy. Thus, the question becomes, who long will it take Europe to reverse this policy if at all, or do we go into a global meltdown and then with everyone pointing their finger at everybody else.
If you are within the Eurozone, you can open an account in the USA which is NOT part of the CRS reporting scheme. You must realize that Brussels will most likely impose capital controls to prevent capital flight. So it is best to have an account in the USA before it is too late.
European states that are NOT in the Eurozone, will generally not come under the problems imposed by Brussels. They could see themselves with a strong flight of capital into their economies.