Read the story here. Advertise at Before It's News here.
Profile image
By Alton Parrish (Reporter)
Contributor profile | More stories
Story Views
Last hour:
Last 24 hours:

Euro Zone Crisis: "This Ends Through War"

% of readers think this story is Fact. Add your two cents.

Posted by   on the Wealth Wire 

The euro zone’s financial gloom has extended into another year.

As European nations like Spain, Portugal, and Greece attempt to fight their way out of the dark, analysts are less than optimistic about the year ahead. The financial crisis is as deep as ever, and slow reform and a lack of direction will continue to exacerbate the situation.

The Euro Zone

Credit: Wikipedia

2012 was filled with predictions of which nation would be the first to break away from the euro – and Greece often had the most votes. But even though every nation struggled to hold onto the currency, it’s still not safe in 2013.

Economist Charles Robertson of London-based Renaissance Capital believes Greece will finally be the first to exit the euro zone this year, but it won’t be the last. Spain might be the next in line, dropping the currency as early as 2014.

But hedge fund manager Kyle Bass is even more pessimistic for the fate of Europe. He believes nothing short of war will solve the problem.

From Reuters:

“This ends through war,” Bass, the founder of Hayman Capital Management in Dallas, said. “I don’t know who’s going to fight who, but I’m fairly certain that in the next few years you will see wars erupt, and not just small ones,” he told a recent conference.

His predictions, of course, are particularly extreme. War would be a last resort situation, and even if the possibility presented itself, the European Union would likely do everything in its power to prevent it.

But it does highlight the depth of the problem in Europe. Spain, for example, has more problems than just its 25% unemployment rate.

The government estimates Spain’s Social Security System has a deficit of €3 billion, or $3.9 billion. With so many people out of work – particularly the younger generations, significantly fewer people are paying into the program. And the government is taking money out.

From ZeroHedge:

As the WSJ notes, Spain has been quietly tapping the country’s richest piggy bank, the Social Security Reserve Fund, as a buyer of last resort for Spanish government bonds – with at least 90% of the €65 billion ($85.7 billion) fund has been invested in increasingly risky Spanish debt.

The government is continuing to draw more funds from the reserve, this November passing the annual legal limit and thus raising the cap.

And it’s leaving many wondering if pension benefits will run out in the very near future.

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover -  Reduces Smart Meter radiation by 96%! (See Video).

Report abuse


    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    Load more ...




    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.