Empower Network

I Found This Great Visualization Of The European Debt Problem -  Today’s Economy In Europe Simply Explained

Today’s economy sure is in a topsy turby place. Throughout history the banks have loved lending governments money. For centuries banks have loaned countries money to go to war  with their neighbors (the most expensive endeavor) and then secretly go and loan the opponents money to defend themselves so no decisive victory would occur – and the banks could do it all over again in a few years. Ingenious really. It was really a system for the bankers to tax the peasants of the world and let the governments take the blame. The governments only had two options – default and never get another loan and get conquered by a neighbor. Or tax the peasants and pay up. They either taxed the people directly or create more currency causing inflation (the hidden tax). The peasants paid either way either directly out of their pockets or through higher prices for everything.

With gold and silver as the main type of money for most of the world for most of history, it tended to act as a brake and put a cap on the bankers greed to lend money. But in 1972 something changed. Nixon removed the gold backing of the US dollar. Since that date the virtually the whole world went on a fiat currency system, because the US dollar was the currency of foreign exchange. From that point on there has been no limit on the amount of  currency governments could borrow or print.

But it can’t go on for ever. The end game is being played out before our eyes right now in today’s economy. Today some countries can’t tax their citizens enough to even pay the interest on their debt, even at the current low interest rates. In Europe individual countries can’t do the standard solution of printing their way out of debt, causing hyperinflation, having their government and financial system collapse and starting out afresh. The only way out is default and that would set the dominions a tumbling, with the world wide banking system collapsing due to all the intertwined derivative that have been created. And once one country defaults there is no stopping a second or third from doing the same. Today’s economy has the banking system in panic mode.

The greatest wealth transfer in history is happening right now in front of your eyes. The only question you need to know is which side you will be on.

Here is a great graphic I found giving you as insight on European debt.

Submitted by Michael Victory on 01/31/2012 10:11 -0500 http://www.zerohedge.com

This info-graphic shows how much banks loaned to Portugal, Ireland, Italy, Greece & Spain. Today’s economy in Europe is in deep crisis. The following images illustrate how much must be repaid.

Source

My mentor Mike Dillard has been interviewing the experts regarding today’s economy  to allow him and others to be on the right side of the greatest wealth transfer in history. Click Here If You Would Like To Listen In and learn more about the Elevation Group

Here’s another blog post that might interest you – The Indispensable Metal – What Is The Value Of Silver

Your comments are always welcome.

Today’s economy demands that you get educated so you will be on the right side of the wealth transfer