From The Slog, a non ideological aligned blog. Cyprus has turned out, against all the odds, to be the first domino to head towards the second domino. That Number Two will be the eurozone bond market going from sick to dead. Only events can dictate the exact order of dominoes after that one. But there follows a sensible attempt to suggest one.
Play your favorite sinister music.The third will be the release (Or leak) of official capital flight figures from Brussels. The fourth will be a consequent acceleration of capital flight. The fifth will be the release of Q3 eurozone economic data.The sixth will be a Chinese export slowdown. Few people grasp this, but the EU represents 16% of all Beijing’s exports – just one percentage point behind the US.The seventh will be Berlin backing away from further involvement, while maintaining a vice-like grip over Cyprus. The eighth a Greek default alongside Italian political stalemate. The ninth a chaotic German election. The tenth a major French banking collapse. The eleventh a banking sell-off on Wall Street, and the Dow starting to slide as the White House mirage fades. The twelfth….the hyper-acceleration of a gold rush as global stockmarket confidence implodes.
That's pretty much it. And the picture isn't pretty at all. The euro family is acting like investors are gung ho for haircuts and theft. The Chinese, sinking their money in pharaonic, white-elephant grade infrastructure. The North Koreans, way too happy with their war-like diarrhea of the mouth. In the meanwhile, the Fed and the Dems are sinking themselves in debt and printing funny paper like there is no tomorrow. But the day of reckoning is almost here. I'm afraid, since there is jack s**t we can do about the impending global disaster. Gird your loins, everybody.