GEAB 59: Global Systemic Crisis: 30 Trillions USD Will Disappear By 2013

Here are the highlights of GEAB 59 (November 2011) entitled "Global systemic crisis: 30,000 billion US dollars in ghost assets will disappear by early 2013 / The crisis enters a phase of widespread discounting of Western public debt ":

• Global systemic crisis: 30,000 billion US dollars in ghost assets will disappear by early 2013 / The crisis enters a phase of widespread discounting of Western public debt

As we come to the end of the second half of 2011, it is evident that 15,000 billion in ghost assets have gone up in smoke since last July, just as was anticipated by LEAP/E2020 (GEAB N°56). And, according to our team, this process figures to continue at the same rate throughout the year to come. Indeed we estimate that, with the introduction of a 50% discount on Greek government debt, the global systemic crisis has entered a new phase: that of the generalized discount on Western public debt and its corollary, the fragmentation of the global financial markets… Read public announcement

• An on average 30% discount of Western debt between now and early 2013 ... without activation of sovereign CDSs, which appear a vast scam

According to LEAP/E2020, from now through the first quarter of 2013, Western public debt will be affected by a discount of 30% on average. This includes European debts (Euroland, the United Kingdom, the countries of Central and Eastern Europe) as well as the United States and Japan. Of an approximate $45,000 billion, this will mean an extra $15,000 billion that will be transformed into “ghost assets”, leading to a new shock for the global financial system, and contributing in particular to the decimation of Western banks — as anticipated in the GEAB N°58 — and to the loss of an additional $15,000 billion…

• 2017 – End of the transatlantic relationship formed after 1945: The last US soldier leaves European soil

The same cause can produce totally inverse effects, depending on the original state of the systems under consideration. Thus we see that the current debt crisis in the Western world, in particular with regard to sovereign debts, will generate two inverse evolutions when it comes to the politics of defense, one playing out in the United States, another in Euroland...

• Strategic and operational recommendations

. Financial sector (banks, insurance, pension funds, hedge funds): The trend is confirmed!
. Gold: Stay on course!
. Stock Market: Restrictions grow tighter!
. Commodities: Warning, danger!
. Currencies: Lurch ahead!

• The GlobalEurometre - Results & Analyses

A major change can be observed in the emergence of a strong majority of respondents indicating that we are witnessing the establishment of Euroland governance (68%, as opposed to 48% the previous month)…

The full GEAB 59 (PDF format) is available to subscribers for 200 Euros per year (10 + 6 issues).