As luck would have it, Americans do not have to guess what will happen if they follow President Obama into the economic abyss that is his socialist agenda and accompanying budget. No, this time we are blessed with a crystal ball to look into. With it, we can see exactly what we might expect. That crystal ball is Europe, and America would do well to pay attention to what it is showing us.
For the last several decades Europe has aggressively pursued the socialist agenda that our President would now like to foist on America. And where has the pursuit of the that agenda taken Europe, what does the crystal ball tell us to expect if we continue down this path?
- British Prime Minister has spent the country “out of money” :
- Bosnia’s unemployment at 43% and rising!
- Czech government collapses
- Iceland’s government collapses
- The European Union’s President says the Obama Administration’s budget is “The road to hell!“
For even more prognostication of our impending future, check out excerpts from this article.
Stephen Jen, currency chief at Morgan Stanley, said Eastern Europe has borrowed $1.7 trillion abroad, much on short-term maturities. It must repay – or roll over – $400 Billion this year, equal to a third of the region’s GDP. Good luck! The credit window has slammed shut.
Not even Russia can easily cover the $500bn dollar debts of its oligarchs while oil remains near $33 a barrel. The budget is based on Urals crude at $95. Russia has bled 36% of its foreign reserves since August defending the rouble. “This is the largest run on a currency in history,” said Mr Jen.
Almost all East bloc debts are owed to West Europe, especially Austrian, Swedish, Greek, Italian, and Belgian banks. Europeans account for an astonishing 74% of the entire $4.9 trillion portfolio of loans to emerging markets. They are five times more exposed to this latest bust than American or Japanese banks, and they are 50% more leveraged (IMF data).
Spain is up to its neck in Latin America, which has belatedly joined the slump (Mexico’s car output fell 51% in January, and Brazil lost 650,000 jobs in one month). Britain and Switzerland are up to their necks in Asia.
Whether it takes months, or just weeks, the world is going to discover that Europe’s financial system is sunk!
For what earthly reason would we pursue the agenda that has led Europe to the brink of financial ruin? Why would our government look across the Atlantic, see economic turmoil, failing healthcare systems, crippling debt and the resulting civil unrest and come to the conclusion that pursuit of a similar course will somehow turn out differently for the United States? The crystal ball is telling us what to expect, the future is clear – the only question is will we listen.