Using the same fear-mongering tactics used in the United States during the last few years of banking and corporate crises, the IMF adviser Robert Shapiro is warning the European Union that unless the EU is “saved” (aka ‘bailed out’ / aka ‘re-capitalized’), the Global Economy will go into a downward collapse within weeks.
IMF adviser: The global economy could collapse ‘in two to three weeks’
In an interview on BBC yesterday, International Monetary Fund (IMF) adviser Robert Shapiro said something quite alarming: without a plan to save the Euro, the global economy will collapse “in two to three weeks.”
Speaking about European leaders, Shapiro said: “If they can not address [the financial crisis] in a credible way I believe within perhaps two to three weeks we will have a meltdown in sovereign debt which will produce a meltdown across the European banking system.
“We are not just talking about a relatively small Belgian bank, we are talking about the largest banks in the world, the largest banks in Germany, the largest banks in France, that will spread to the United Kingdom, it will spread everywhere because the global financial system is so interconnected. All those banks are counterparties to every significant bank in the United States, and in Britain, and in Japan, and around the world.
“This would be a crisis that would be in my view more serious than the crisis in 2008…. What we don’t know the state of credit default swaps held by banks against sovereign debt and against European banks, nor do we know the state of CDS held by British banks, nor are we certain of how certain the exposure of British banks is to the Ireland sovereign debt problems.”
The core of Europe’s problems stems from a possible Greek debt default, which could cause a cascading wave of bank failures, leading experts to begin calling the problem a “contagion.” The IMF has been warning European leaders that they must re-capitalize the continent’s largest banks or face a crisis that may be even worse than the crash of 2008.
This, of course, is all a bullshit line used to soften opposition to the world banking cartels demands – psychological extortion. Could a collapse really occur? Of course – especially since these very same bank-pirates control the markets upward and downward movement at their will. Many are already saying that this is the worst recession/depression we’ll see in a lifetime and even charting the current trajectory, it’s getting worse either way. They seek to plunder the nations and economies of the world through their banks and then have the people of these nations go into greater personal debt when a project needs to go on life support. After seeing how little resuscitation helped here in the United States during the last go-round, I say pull the plug and let ’em all die.
A week after the BBC exploded Alessio Rastani to the stage, it has just done it all over again. In an interview with IMF advisor Robert Shapiro, the bailout expert has pretty much said what, once again, is on everyone’s mind:
This video is from the BBC, broadcast Thursday, Oct. 6, 2011.