Home > Nobel Laureate Says Globe Headed For Financial “Breakdown” and “Radicalism” (EWG, FXE, VGK, EUO, VWO)

Nobel Laureate Says Globe Headed For Financial “Breakdown” and “Radicalism” (EWG, FXE, VGK, EUO, VWO)

Dominique de Kevelioc de Bailleul: The world is in the midst of a complete global economic “breakdown,” according to Nobel Laureate economist Paul Krugman, with the implications of political “radicalism” quickly brewing in Europe and the United States.

“We are living through a time where we face an enormous economic challenge,” Krugman told Russia Today (RT). “We are facing — obviously — the worst challenge in 80 years and we are totally mucking up the response.”

Traders of German Bunds and U.S. Treasuries agree and have sold PIIGS paper for other paper higher up on the food chain.

As a result, rates on Bunds and Treasuries have reached record-low levels Wednesday of 1.59 and 1.23 percent, respectively—levels that Dan Norcini of Jim Sinclair’s JSMineset.com said signals a Lehman-times-10 event around the corner.  With Spain’s 10-year note spread higher by 520 basis points more than the yield on 10-year Bunds, a near-record level as well as depositors decidedly motioning into a trotting bank run on Spanish banks, Europe is again on the slippery slope to doom.

Krugman blames policymakers for the impending crash, fearing a replay of Nazi Germany as a result of a radical drop in standards of living on both sides of the Atlantic due to Germany’s (NYSEARCA:EWG) refusal to inflate the euro (NYSEARCA:FXE).

“We’re doing a terrible job. We’re failing to deal with it,” Krugman added.  “All of the people, the respectable people, the serious people, have made a total hash of this. That is a recipe for radicalism. It is a recipe for breakdown.”

Forcing nations to swallow austerity contributed greatly to the rise of the Third Reich following severe reparations exacted upon Germany post-WWI—a mistake Krugman doesn’t forthrightly say in the RT interview, but may be inferred by his Jewishness, gleaned through numerous posts on his NYTimes Web blog and attributed to his notorious allegiance to a failed monetary system under intense fire from people of all nations affected by the crisis.

For the first time since the creation of the Fed, for example, the majority of Americans now understand that the Fed is not a public institution, but an independent one.  “End the Fed” is almost as common a slogan today as “End the War in Vietnam” was during the presidency of Richard Nixon (1969-1975).

In Europe (NYSEARCA:VGK), at the tip of the spear between the Brussels globalists (by the American proxy, the Fed) and the people of Europe is Germany, where the political heat of rising nationalism and scapegoating of Arab and Turk immigrants, in particular, has emerged and reported by international press.

“No other religion in Europe makes so many demands. No immigrant group other than Muslims is so strongly connected with claims on the welfare state and crime,” best-selling author, former German politician and Bundesbank board member, Thilo Sarrazin, stated in German cultural quarterly Lettre Internationat of Sept. 2009.  “No group emphasizes their differences so strongly in public, especially through women’s clothing. In no other religion is the transition to violence, dictatorship and terrorism so fluid.”

And, May 21, 2012, Israel Business published a Reuters article about Sarrazin’s newly released book, Europe Doesn’t Need the Euro, within which, he argued that Germany is being blackmailed by the EU to bailout the PIIGS to make further reparations for WWII.

Germany’s globalists “are driven by that very German reflex, that we can only finally atone for the Holocaust and World War II when we have put all our interests and money into European hands,” he stated in his book.

Germany’s initial bailout of Greece shows Germany’s “susceptibility to blackmail”, Sarrazin wrote, suggesting that crimes committed by the Nazi Party will be asked to be repeatedly atoned.

“This politics is turning Germany into a hostage of all those in the euro zone who may in the future, for whatever reason, need help,” he stated.

Krugman believes the West may have reached a tipping point, not only in the sovereign debt crisis, but in the social order, as well.

“There are a lot of ugly forces being unleashed in our societies on both sides of the Atlantic because our economic policy has been such a dismal failure, because we are refusing to listen to the lessons of history,” he told RT.  “We may look back at this thirty years from now and say, ‘That is when it all fell apart.’ And by all, I don’t just mean the economy.”

Related: Vanguard European ETF (NYSEARCA:VGK), ProShares UltraShort Euro ETF (NYSEARCA:EUO), CurrencyShares Euro Trust (NYSEARCA:FXE), Vanguard MSCI Emerging Markets ETF(NYSEARCA:VWO), iShares MSCI Germany Index (NYSEARCA:EWG).

By Dominique de Kevelioc de Bailleul From Beacon Equity Research

BeaconEquity.com is committed to producing the highest-quality insight and analysis of small-cap  stocks, emerging technology stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily OTC stocks in the stock market today, which have traditionally been shunned by Wall Street.  We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.



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  1. John Galt
    June 8th, 2012 at 09:30 | #1

    Like Nickolai Chernyshevsky (an early Leninist) said, “The worse, the better.” Meaning that the worse the conditions for working people, the better for the cause of revolution. There is no doubt in my mind that this is the governing philosophy of at least some of the key leaders on both sides of the pond… especially the current resident of America’s White House, Barry O’Blamer. Many them suffer… this will bring on the socialist revolution that so many of them desperately want.

    And I am sure that Maxist Chavitza is being sarcastic, but if not, I would really like to understand the mentality (or lack thereof). Capitalism kills? What about the alternative that you espouse, the dictatorship of the prolitariat… no history of killing there, eh? Estimates are that more the 100 MILLION people worldwide were killed by communist governments in the last century.

  2. mark t
    June 5th, 2012 at 19:58 | #2

    Krugman has stood up and supported the Keynsian policy of Obama all along. He is an establishment player, a useful idiot of the nwo. His views should always be weighed with this understanding. The corrupt and subverted government has been working toward this moment for decades. They sold us out when they gave up control of our monetary system in 1913. Then they started the UN. Then they wrote up “Freedom from war”. The plan to disarm the world and their military’s as they build up the UN peacekeeping force as they hand over America’s sovereignty to international law. In other words, it is treasonous that our government has dismantled the nations manufacturing base as well as the capitalist system through insane laws and regulations designed to overthrow the system. This is the simple and true reality of a soviet plan that Krsuschev and Stalin eluded to when they said America would fall without firing a shot…..today we are in the end game. God, guns n grub, guys n gals. The new 5G network. Educate others and prepare on an individual basis for the coming clash. Freedom verses slavery, heaven verses hell.

  3. Ron Fontaine
    June 3rd, 2012 at 17:49 | #3

    Anyone who thinks the USA is a capitalist system is either a fool or a tool of the state. It is obviously as socialist system fast becoming Marxist

  4. WTH
    June 3rd, 2012 at 01:43 | #4

    “We’re doing a terrible job. We’re failing to deal with it,” Krugman added. “All of the people, the respectable people, the serious people, have made a total hash of this. That is a recipe for radicalism. It is a recipe for breakdown.”

    Done on purpose, no doubt… “order out of chaos” anyone?

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