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Since the current, terminally cancerous European crisis commenced in 2010, we have lived with a daily bombardment of “horrible headlines” from the so-called PIIGS economies of Portugal, Ireland, Italy, Greece, and Spain.  It’s a bit of a “misnomer” to focus on these five specifically; as in reality, countless Euro Zone nations are experiencing the same, untenable financial conditions.  However, these five are the largest; particularly Italy and Spain, the Euro Zone’s fourth and fifth largest economies, respectively – combined, holding an astonishing $5 TRILLION of debt.  Frankly, I have been utilizing the term “PIFIGS” for the past two years; as in my mind, Europe’s third largest economy – France, with $2.5 TRILLION of debt itself – is in equally dire condition, particularly given its banks’ collective exposure to PIIGS debt.

Since the initial Greek “bailout” in May 2010, average PIIGS unemployment has surged from an already depression-like 14% to catastrophic levels above 20%; whilst debts have soared and social unrest significantly expanded.  Frankly, it is beyond comical to see PROPAGANDA of a “SO-CALLED RECOVERY” when REAL data like employment continues to accelerate downward – with no end in sight.  In my mind, there is a 100% CERTAINTY of default among these nations; most likely, with Greece going first.  Frankly, I expect the Greek implosion to occur from within – via political and social upheaval – as opposed to some arbitrary decision by a bunch of cold-blooded, sociopath bureaucrats in Brussels.  In fact, the PIIGS economic situation has become so dire, and so helpless; that the very term itself has become generic for a hopeless economic situation that MUST end in disaster.  Anyhow, the key point is that the “PIIGS” have indeed lived up to their hype; and thus, we all watch and wait for inevitable disaster – like spectators at a NASCAR race in the rain at Talladega.

Sadly, I believe the PIIGS may themselves be shortly usurped in their roles as basket case poster children; as indeed, the “Fragile Five” have come to town.  I looked long and hard to find who coined the term “PIIGS” – but couldn’t find a definitive answer.  However, the “honor” of naming the Fragile Five goes to none other than the bloodsuckers at Morgan Stanley; although in their defense, they couldn’t have better nailed this description of the CATASTROPHIC fates headed for vaunted “BRICS” of Brazil, India, and South Africa; plus two of the world’s other major population centers, Indonesia, and Turkey.  In fact, per yesterday’s piece – “THE MOST IMPORTANT ARTICLE I’VE EVER WRITTEN” – the combined population of these soon-to-be HYPERINFLATED five nations is 1.8 billion, representing more than a quarter of the world’s total.

Anyhow, the Fragile Five came into international consciousness late this summer, in reference to the plummeting currencies of these supposedly “strong” nations; yet again, a glaring example of how MSM PROPAGANDA touting “recovery” failed miserably in its quest to deceive the masses. Per the aforementioned piece, EVERY global currency has been victimized by the Fed’s MASSIVE inflation exportation; on average, by 10% in the past six months, and 20% over the past two years.  However, the “Fragile Five” have experienced far greater inflation over this period, per below; i.e, more than 50% greater…

Country Chart

Thus, it should be no surprise that Brazil, Turkey, and South Africa ALL experienced MAJOR civil unrest this summer; and that I recently moved India ahead of Greece in my personal list of “most likely to catalyze the next 2008-style global crisis.”  In fact, I recently postulated that India might be the next Egypt, given the extreme similarities in the populations’ respective spending patterns.  However, even I was shocked when I went back to the chart I utilized to support this belief last month; as apparently, the “Fragile Five” nations are faced with the identical situation.  That is – as I wrote two months ago in “INFLATION AND ARAB SPRING” – the more a nation’s population spends on LIFE NECESSITIES like food, the more prone they are to importing INFLATION from the Fed’s printing presses…

Per Capital Food Spending

Consequently, I am more bearish on America’s near-term economic and financial outlooks than at ANY time in my 24-year career; let alone, its long-term viability as we have known it.  Do not be surprised at ANYTHING the “Fragile Five” governments do to stem the unstoppable collapses of their currencies; which ultimately, will foster social unrest, political revolution, and likely, WAR.  I wrote of such things in “CAPITAL CONTROLS, HERE WE COME” and “BLACK MARKET”; but in the REAL world, things tend to occur MUCH more dramatically than “on paper.”  Thus, it is only a matter of time before the “Big One” hits; and when it does, you had better be prepared with gold, silver, and other life necessities.  Because if you aren’t, it will already be too late.