Euro Zone: The Euro ‘Event’ Will Cause Depression: HSBC – CNBC

First an important note about protecting yourself from the effects of a dollar crash…                  

There are things you can do to protect the paper wealth you have accumulated (no matter how small or large it is) from the debasing monetary policies of our government and Federal Reserve. Our currency (dollar) is losing value and will continue to do so as long as the FED and Federal government continue to believe that printing more money is a good way to pay their debts and to stimulate the economy. This is the typical debasement policy of any fiat currency that has ever been in existence. This is why the longest any fiat (paper currency) has lasted is about 40 years. Our current dollar is about that age now. As the government prints more and more dollars to pay their debts (because they can) your buying power will decrease. Remember, prices are not going up, the buying power of your dollar has been stolen from you. So you see the symptom of your dollar purchasing less and less, is sky rocketing prices.                                      

You can preserve your wealth here.                          


You can purchase food storage now (before prices sky-rocket) to feed your family for as long as it takes for a new currency to be established in the event of a currency collapse, or for any other emergency that could tie up food supplies.

Not a bad idea for a possible unemployment crisis if it were to happen to you as well. Shop for food storage here.




Published: Monday, 7 Nov 2011 | 1:10 AM ET 

By: Patrick Allen

CNBC EMEA Head of News

With no end in sight to the euro zone debt crisis, events in Athens and Rome are likely to dominate investor sentiment over the coming days.

Whether it is Berlusconi hanging onto power or the talks over forming a new government in Greece, it will be impossible to ignore the euro zone debt crisis.

Analysts at HSBC have been looking at what they call the “risk on – risk off paradigm” which they believe has been the dominant feature of the market since the start of the financial crisis back in 2007. Their analysis does not make good reading, unless you are betting on risk off.

“The recent events in the euro zone have caused the risk on – risk off paradigm to strengthen even further. Over the last week it has almost become a caricature of itself: we saw extreme euphoria on the back of a purported bailout package followed days later by intense despair induced by the prospect of a Greek referendum,” said David Bloom, Global Head of FX Strategy at HSBC in a research note.

“These dramatic shifts in sentiment led to rollercoaster moves in risk asset prices,” Bloom said.

With cross-asset correlations at an all-time high according to HSBC, Bloom says market participants are comparing the current Greek crisis to Lehman Brothers and has this warning for investors: “Market stresses are currently far worse than after Lehman and the event which people are worried about has not even happened yet!”

“Despite this, perceptions about the possibility of the event are already driving markets to an unheard of level,” said Bloom.

When the event, whatever it is, does actually happen it will be very bad news for the global economy according to Bloom.

“Were the event to actually occur it would lead to the great depression Mark II,” said Bloom.

Original Source