MaranathaMRC.com
Home Site Map   Don's Page Contact Us

 

Maranatha Revival Crusade, PO Box 218, APPLECROSS, Western Australia   6953       

       

Main Menu

Home

MRC
Contact Us
Don's Page
Links
Site Map
 

New Postings

Headlines

Publications
MRC Articles
Books
Millennium Alert
Maranatha! Hope of Glory

Our World

Preparations for War
The New World Order
International Economic Order
Israel & US

God's Word

Prayer/Praise
Prophecy

 

 

 

FAILURE TO SAVE EAST EUROPE WILL LEAD TO WORLDWIDE MELTDOWN

Feb 15/09. The unfolding debt drama in Russia, Ukraine, and the EU states of Eastern Europe has reached acute danger point.

If mishandled by the world policy establishment, this debacle is big enough to shatter the fragile banking systems of Western Europe and set off round two of our financial Götterdämmerung.

 Austria's finance minister Josef Pröll made frantic efforts last week to put together a 150bn rescue for the ex-Soviet bloc. Well he might. His banks have lent 230bn to the region, equal to 70pc of Austria's GDP.

"A failure rate of 10pc would lead to the collapse of the Austrian financial sector," reported Der Standard in Vienna. Unfortunately, that is about to happen.

Stephen Jen, currency chief at Morgan Stanley, said Eastern Europe has borrowed $1.7 trillion abroad, much on short-term maturities. It must repay – or roll over – $400bn this year, equal to a third of the region's GDP. Good luck. The credit window has slammed shut.

Not even Russia can easily cover the $500bn dollar debts of its oligarchs while oil remains near $33 a barrel. The budget is based on Urals crude at $95. Russia has bled 36pc of its foreign reserves since August defending the rouble.

"This is the largest run on a currency in history," said Mr Jen.

Spain is up to its neck in Latin America, which has belatedly joined the slump (Mexico's car output fell 51pc in January, and Brazil lost 650,000 jobs in one month). Britain and Switzerland are up to their necks in Asia.

FULL ARTICLE>

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/4623525/Failure-to-save-East-Europe-will-lead-to-worldwide-meltdown.html

 

Expression Web Templates

The One who is coming will come, He will not delay