IMF warns of potential Euro currency collapse

The eurozone could break up and trigger a global economic slump to rival the Great Depression, the IMF warned last night.

In its World Economic Outlook report, the International Monetary Fund said the collapse of the crisis-torn single currency could not be ruled out.

It was the first time the Washington-based institution has accepted the prospect of the eurozone splitting up and follows fears over the health of the Spanish economy.
...

Click to expand...

...
Nigel Farage continues:

“Suddenly, a big shot from the IMF says, ‘There is a problem here, and there may be a breakup of the eurozone. It could come sooner than you think.’ I see that as a bit of a crack in the dam. They’ve always used the argument that the euro was inevitable and it was here to stay, and an individual from the IMF has just completely blown that out of the water.

(The breakup could be disorderly) because there have been no contingency plans. This is what makes me so angry. I’ve been saying to Barroso and that little Van Rumpuy character, ‘Come on, let’s have a Plan B.’ Let’s actually get ourselves ready in case it goes the other way.’ The point the IMF official made is that there have been no contingency plans whatsoever....

Therefore, what is likely, is that at some point, the markets will just overwhelm and engulf the whole thing and short-term, that will lead to chaos. The whole central banking, International Monetary Fund banking system, I mean it just begins to look more and more like the biggest Ponzi scheme we’ve ever seen on earth.

There are going to be some serious banking collapses and the impact of that on some sovereign states, will be serious. I’m afraid we’ve gotten to a point where we really can’t stop this now. We’re beginning to reach a stage where however much false money you create, the problem becomes bigger than the people trying to solve it. We are very close to that point.
...

Click to expand...

ancona said:

DC,
The elections across Europe will tell the tale. Germany is sure to rid herself of Merkel, after giving in to the EU against the will of her people. Sarkozy is now poised to get his nuts crushed, again, by voters who see him as ceding France's sovereignty among other things. Ireland will definitely cause a problem after their elections, because the people are sick and fucking tired of paying for the bad bets made by bankers who may or may not even be from Ireland. Italy, Portugal, etc. etc. I think the collapse of the union comes sooner than later, but that's just me.

Click to expand...

DCFusor said:

It's not just you. Seen those pictures of rocks precariously perched on tips of mountains? Sometimes you just know they're gonna fall, but it's pretty hard to say just when.

In the prediction lottery, guys just take a stance hoping they'll get lucky, I think.

Click to expand...

Let's try a thought experiment. Imagine you walked into the bank, told them you were going to be taking pay cuts for the next few years, and then asked for a loan. You'd be laughed out of the office or else pay an interest rate so high that "usurious" wouldn't do it justice. The logic is simple: If you're in debt and your income is shrinking, it's mighty hard to pay back what you already owe.

It's not any different when it comes to countries that can't print their own money. That brings us to Spain.
...

Click to expand...

PMBug said:

That reminds me of a funny video I saw a while back of a guy applying for loan with no job/collateral. I can't seem to find it now.

Click to expand...

IMF working paper
The Case Against Harry Dexter White: Still Not Proven

Author/Editor: Boughton, James M.
Authorized for Distribution: August 1, 2000

Click to expand...