Europe appears to be in paralysis when it comes to dealing with heavy debt. In addition to the turmoil in Greece, now Italy is on the brink, and as Germany’s Der Spiegel puts it, Prime Minister Silvio Berlusconi “refuses to recognize that his country is in trouble.” With Europe facing deep financial problems and the U.S. Treasury Department and Federal Reserve pushing a devalue the dollar strategy, Clem Chambers who is the CEO of ADVFN in Europe warns that things will likely become very bad if the European financial system implodes. He writes in Forbes:
Nominally, there is a lot of money in this world; more money than there ever has been. However, it is being corralled into financial instruments like bonds, which may well be about to be annihilated through inflation, rising interest rates, recession and austerity.
If the cavalry don’t appear in the next few weeks, then this final lap of the credit crunch will begin.
Anyone able to take advantage of bargain basement prices will then be able to buy stock and shares at irresistible levels. It will be at this point that the new cycle will begin-in the rubble of the developed world’s old financial system.
You can read his full article here.
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