The chart of greek debt is whispering "get out".... [GREK]

The crash of 2007 through early 2009 was marked by the collapse of the value of debt issued by deadbeat borrowers in the EU.  Part of what was done in order to stop the collapse from happening at that time was to issue more guarantees and to lend more money to those who already couldn't repay what they owed.  It produced the appearance of normalcy while simply making the coming collapse even bigger than the one that was not allowed to play out before.  The big banks are now bigger.  The OTC (Over The Counter AKA "unregulated") derivative pile is bigger.

The federal reserve is up to its neck in bad debt and has little room to take on more because the garbage which it already took onto its balance sheet has gasoline costing nearly $4 a gallon in the US.  As a result, fast food workers are up in arms about not being able to make a living wage and they are not the only ones.  Several states are talking about making the minimum wage $15 an hour.  This is exactly what Jim Sinclair warns us about with "cost push inflation".  In other words, everyone will begin to notice that the buying power of the greenbacks that they are accepting in exchange for their goods and services just isn't cutting it anymore and so they will demand more.  This is historically what happens when central banks dramatically increase the money supply in order to avoid the collapse of problems of their own making.  They cannot just continue to print forever because sooner or later the cries of "unfair" and "we need more" turn into "you bastards deserve to die and we have nothing to lose by killing you".  Again, I don't advocate violence but this  is the lesson of history.  It can be communicated plainly or it can be left unsaid but it cannot be changed.

The actions taken over the past 5 years to sweep the problems under the rug have fixed nothing.  They have just created bigger problems.  This is now being seen in the chart of Greek debt which the ETF GREK is used as a proxy for in the chart below which shows the corrective, a-b-c recovery of Greek bonds since the 2012 low.

My model says that the chart has already broken down and has finished wave 1 of 3 down.  It is very nearly finished with 2 of 3.  I expect a dramatic downturn soon that will take a lot of sleepy, complacent people by surprise even though there is no mathematical or historical reason not to be fearful about what has been happening in the global economy.  
 

Here is a zoom in of just wave 1 and 2 down.  This model suggests that wave 2 will peak within a week or two.  If it turns out to be correct, expect news to begin showing up about a new and growing loss of confidence in Euro debt.  The European Central Bank cannot handle another bailout and everyone who follows this stuff knows it even if the main stream media seems blissfully unaware.  Face it folks, if aliens landed for real, government would not tell you about it even if there were real risks in it for you.  Check that.  The more real risk in it for you, the less likely they would be to tell you about it.  Why?  Because of their fear of losing control over you in a stampede.  They would say it is for your good that they don't give you warning to protect yourself but that is complete BS.  They would withhold the information because they want to protect themselves as long as possible.  You would only be told after it was impossible to cover up any further.  The collapse of the global debt Ponzi will be no different.