4 reasons why Europe is ready to implode…

May 31, 2012


Europe collapse imminent..soon

If you’re following what’s been happening in Europe, you have probably invested in some form of financial education for yourself. I read recently that some put the EU collapse in May-June. That prediction appears to be right on track according to market strategist Graham Summers, and no one will be able to stop it.


Europe collapse…Here’s his reasons why:

1) According to the IMF, European banks as a whole are leveraged at 26 to 1 (this data point is based on reported loans… the real leverage levels are much, much higher.) These are a Lehman Brothers leverage levels.

2) The European Banking system is over $46 trillion in size (nearly 3X total EU GDP).

3) The European Central Bank’s (ECB) balance sheet is now nearly $4 trillion in size (larger than Germany’s economy and roughly 1/3 the size of the ENTIRE EU’s GDP). Aside from the inflationary and systemic risks this poses (the ECB is now leveraged at over 36 to 1).

4) Over a quarter of the ECB’s balance sheet is PIIGS’ debt which the ECB will dump any and all losses from onto national Central Banks (read: Germany)

So we’re talking about a banking system that is nearly four times that of the US ($46 trillion vs. $12 trillion) with at least twice the amount of leverage (26 to 1 for the EU vs. 13 to 1 for the US), and a Central Bank that has stuffed its balance sheet with loads of garbage debts, giving it a leverage level of 36 to 1.

And all of this is occurring in a region of 17 different countries none of which have a great history of getting along… at a time when old political tensions are rapidly heating up (see Germany and France’s recent butting of heads over fiscal policy).

So, as far as Europe is concerned…

I reckon Graham is pretty on the money, so if you haven’t already been preparing for this, I’d suggest you need to do something about it NOW.

No one will escape unscathed, as the global banking system is too interconnected.

If you have no idea where to start, I can recommend this link here.


It’s where I started to take responsibility for my own financial education. See you on the other side of this upcoming wealth transfer.


If you want a copy of Graham’s free report see www.gainspainscapital.com

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