With the recent gains of the Socialist parties, Communist parties and Nazi parties in France and Greece the EU as it is now is toast, it's done, stick a fork in it. It may reorganize around a Germany lead effort consisting of the Northern European countries to create a much smaller union. I doubt England or Ireland will take part and I doubt that Spain, Italy or Portugal will even be asked to join.
What is going to happen in France and Greece is going to be extremely ugly and will most likely spread to Spain, Italy and England as their economies are closely linked. It will spread here afterwards as financial institutions take a European hit and require more bailouts and a Q3. That will require the printing presses to be switched to high gear. Which will cause everything to get even more expensive and put additional drain on the economy.
Where it ends is anyone's guess but I'll keep my opinions on it to myself as I don't want to be thought of as a doomer.
On a brighter note a Chinese sovereign bank has been allowed for the first time to purchase banks they will directly own in the U.S. This was right after Timmy G's and Hillary's visit to China last week. The Fed Reserve says it's of little concern because the banks they are purchasing only amount to 1% of deposits nationwide. The banks are expected to make loans for residential and business purposes.
Fed approves Chinese bank purchase of US bankhttp://www.cbsnews.com/8301-505245_162-57431121/fed-approves-chinese-bank-purchase-of-us-bank/ So, if these banks start making loans that other banks won't make and things go even farther in the shitter. Who will own the assets that are pledged against these loans? hmmm. When someone says they want to do me a favor by applying Vaseline to my chapped ass a red flag goes off in my mind that they might be planning on fucking me.
Add to this that for the first time the Chinese have been approved to build a city complex in Milan, Michigan which will sell residential real estate to Chinese businessmen that want to start business in the U.S.
Michigan town near Ohio could become ?China City? http://www.daytondailynews.com/business/michigan-town-near-ohio-could-become-china-city-1370999.html
