On August 15th, I wrote “PONZI WITHIN A PONZI” to describe the blatantly transparent FRAUD occurring within Italy’s hopelessly insolvent banking system. Italy remains a “dark horse” in the race to catalyze the “the Big One” – i.e., Global Meltdown III. As the world’s fourth most indebted nation – with a political tinderbox on the verge of exploding – it is entirely possible we’ll shortly awaken to collapsing Italian stocks and bonds; in turn, spreading like financial Ebola across the decaying European economic landscape.
In a nutshell, Italy’s third largest bank – Monte Paschi – has been bailed out a whopping three times in the past four years; with a fourth such bailout all but inevitable. As it turns out, such action is now as imminent as it is inevitable; as this weekend, Monte Paschi announced a doubling of its anticipated 12-month capital requirements – to more than €2.5 BILLION. Last month, I noted that not only did such “bailouts” accomplish little more than buying time, but the majority of such ECB PRINTED funds were plowed right back into the bigger Ponzi scheme of Italian national debt. In actuality, such a scheme is no different than what TARP, TALF, ZIRP, and other U.S. government MONEY PRINTING programs have accomplished over the past five years; i.e, funneling free money into insolvent banks – in turn, utilized to fund the bankrupt U.S. Treasury.
However, on a weekend when the Polish government announced it is confiscating HALF of all privately-administered pension funds, a new “wrinkle” to the Monte Paschi story is rearing its ugly head; yet again, screaming of the validity of Jim Sinclair’s “GOTS” advice – i.e, GET OUT OF THE SYSTEM! Apparently, Monte Paschi’s financial structure lends to the likelihood that a Cyprus-style “bail-in” may be utilized to “compensate” the Italian government – i.e., ALL European citizens, given Italy’s participation in the ECB – for the “bailout” funds. In other words, the question of if Monte Paschi will be recapitalized is no longer in doubt; but instead, how it will be done – via bail in or bail out…
Each day, I question the sanity of the human condition; as across most of the Western hemisphere, the “sheeple” watch such announcements day after day; yet, do NOTHING to protect themselves from what’s coming. Just as Obama screams of his intention to bomb Syria – and potentially, catalyze World War III – the banks blare warning sirens of impending collapse. Whether via bail-in, bailout, or other such citizen-destroying mechanisms not yet invented, they WILL come for any funds you leave in the system – in some way, shape, or form. I have long-discussed my views on such global cognitive dissonance; via multiple articles regarding the flaws, and defense mechanisms, of the human psyche. However, at some point, anyone with assets left to protect must experience the “fight or flight” survival instinct; and I have little doubt that time is coming soon. And when it does, you can be sure the public’s first actions – cumulatively – will be to flock to the ONLY assets that have historically protected purchasing power throughout the centuries; i.e., PHYSICAL gold and silver.