Perfect Storm the Most Likely Scenario; Is Europe Set to Declare a Chapter 11 in Early 2012?

Prophecy Sign:  The collapse of the EuroZone and world markets

The Eurozone is ready to fall, and when it does it will take the rest of the world with it.  This will be the event that will cause the world to come together to create a new way of conducting global commerce.  The collapse of the EuroZone will also be the catalyst needed to begin the creation of the European SuperState, (the revived Roman Empire).

Finally, there will be a fourth kingdom, strong as iron—for iron breaks and smashes everything—and as iron breaks things to pieces, so it will crush and break all the others.  Just as you saw that the feet and toes were partly of baked clay and partly of iron, so this will be a divided kingdom; yet it will have some of the strength of iron in it, even as you saw iron mixed with clay. As the toes were partly iron and partly clay, so this kingdom will be partly strong and partly brittle. Daniel 2:40-42 NIV

 

From the article:

Panic is spreading says Steen Jakobsen, chief economist at Saxo Bank. Steen eyes the perfect storm including a potential "Chapter 11" call for European banks.  (The following is from Jakobsen's blog)

So what form might a Chapter 11 for the Euro Zone take? It is increasingly likely that some kind of total “bank holiday” is enforced to put a stop to market pressures – and then to reinforce and relaunch a stricter EU Growth and Stability Pact as a price for cranking up the ECB printing presses to full speed

In short, the main issues are the following (in no particular order of prioritization):

·                       Time is up – the market needs solutions, not plans for plans. The timeline for Political Europe is way too slow for market comfort.

·                       Interbank funding is starting to freeze over. Every day sees risk factors pointing higher and a systemic liquidity crisis could develop at any time.

·                       Financing gap. EFSF has 440 EUR 440 billion (though it has never been funded). Some estimate that Italy and Spain need EUR 400-500 billion per year to refinance and recapitalize its banks – per year! Talk about mismatch of supply and demand.

·                       Lack of constitutional frame-work to establish or enact changes.

·                       Democratic and constitutional rights are close to being violated, if not in the letter of the law, then certainly in the eyes of the voters.

As we head into 2012, I am increasingly convinced that we have an almost perfect economic and political storm brewing on the horizon.
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The European Union's crisis of confidence has reached the distant shores of the local dollar debt market as once-unimpeachable EU institutions suffer huge rises in borrowing costs. The last few days have seen a dramatic deterioration in the market for even the highest-rated EU sellers of kangaroo bonds, paper denominated in Australian dollars and sold in Australiaby foreign firms.

Perfect Storm the Most Likely Scenario; Is Europe Set to Declare a Chapter 11 in Early 2012? 

http://globaleconomicanalysis.blogspot.com/2011/11/perfect-storm-most-likely-scenario-is.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+MishsGlobalEconomicTrendAnalysis+%28Mish%27s+Global+Economic+Trend+Analysis%29#ixzz1eRukN4O7

Yields on kangaroo bonds blow out

http://www.smh.com.au/business/markets/yields-on-kangaroo-bonds-blow-out-20111122-1nsaz.html