Back in 2012, Mario Draghi,
President of the European Central Bank,
pledged to do "whatever it takes"
to protect the eurozone from collapse,
infamous words I'm sure
he has come to regret.
Mario Draghi's speech at an investment conference in London boosted markets at the time and forced down Spain and Italy's borrowing costs after saying;
The markets responded because they were effectively being manipulated.
Known as "Outright Monetary Transactions" the scheme was to have been deployed alongside a QE program from March 2015, itself racking up ¢80billion a month.
Several trillion Euros later and the EU looks as precarious as ever with growth a distant memory.
In Italy, yields on bonds dropped from 6.3 per cent to 1.2 per cent after that famous speech and all seemed good - on the face of it. But deep down, it was not as we had been led to believe. Italy's government debt grew and is now equal to 133 per cent of GDP.
When Ireland imploded and had to be fully bailed out by the ECB, it's debt pile was 132.2% of GDP.
With all this intervention, the ECB's balance sheet ballooned - set to overtake the U.S. Fed Reserve and has now reached over $3 trillion according to Bank of America Merrill Lynch (not to be confused with national debt).
Then, totally off the mainstream media radar came news that another Italian bank had disintegrated.
And while attention was focused on the rescue of Banca Monte dei Paschi di Siena, which is still not fully finalized, news came that Banca Etruria, has quietly slipped into bankruptcy.
Next up and out of the blue comes UniCredit, the country's largest bank.
It is seeking to raise €13bn of desperately needed capital but large as though this is, the biggest problems, according to the FT is that the smaller banks, like Banca Etruria, are now in a perilous position and on the verge of falling over the cliff edge.
Italy has banks on every street corner, with more branches per capita than any other OECD country.
The lack of growth (occurred since it joined the Euro), has suppressed much needed profits on the one hand whilst seeing poor wage growth on the other, causing drastically increased non-performing loans that now add up to an eye-watering €360billion.
The FT reports that Italian banks,
The FT is suggesting that a full bail-in is on the cards. It is.
Truepublica reported back in September that banks throughout the EU would simply steal depositors money if any of them failed now that new bail-in rules had been implemented. And that is exactly what is happening.
The result of all this is that Mario Draghi, clearly feeling the strain, has finally admitted defeat and said that there is a strong possibility of the EU falling apart.
This time the tactic to keep unity was to threaten every country in the EU by stating that leaving the Eurozone would cost dearly and would require any member country to settle its claims or debts with the bloc's payments system before severing ties.
There's nothing to stop a desperate member country from leaving and simply defaulting.
According to ArmstrongEconomics,
Martin Armstrong himself says,
German Minister for Economic Affairs Sigmar Gabriel, the most senior Social Democrat in Angela Merkel's government, also warned just last week that the EU could fall apart if populists in France and the Netherlands win national elections later this year.
So convinced are aides to US President Donald Trump that the EU is on the verge of a breakup that they recently asked EU officials over the phone which countries will be next to leave the bloc after Britain.
In the meantime, the man tipped to be Donald Trump's ambassador to the European Union has told the BBC the single currency "could collapse" in the next 18 months.
Even the creator of the Euro professor Otmar Issing has predicted that Brussels' dream of a European superstate will finally be buried amongst the rubble of the crumbling single currency he designed accusing eurocrats and German leader Angela Merkel, of,
Economists, commentators, experts and pundits are now divided when it comes to the survival prospects of the Euro in the near term and even that fact alone has considerably worsened since last year.
With the head of the ECB (European Central Bank) Mario Draghi admitting an eventual break-up is a possibility, probability is that much higher than previously ever imagined...