Systemic risk is coming

Our stock market went wild yesterday. The ostensible reason was the announcement that an agreement had been reached in Europe. Using the word “agreement” is an insult to any reasonable dictionary definition. What was announced was that “there is a sort of thing that most of us like but we haven’t worked out any details yet.” Apparently, based on the fact that neither Merkel or Sarkozy did not murder each other or anyone else in attendance, markets saw great progress.
The reality is that Europe is gone, kaput! There is no way to hold it together. The problems surfacing now are insurmountable. They were not ten years ago, but they are unsolvable today. Bob Chapman describes their plight as follows:

… the system cannot function without perpetual quantitative easing or stimulus. That is because no attempt has been made to solve the problems of the economy and unemployment. In the US, UK and Europe only the financial sectors and governments have been recapitalized.

Graham Summers details why the “solution” is anything but in an article entitled The Greek Deal Accomplishes Nothing… Systemic Risk is Coming
It should be noted that the US faces the same calculus with respect to debt and more of it coming. We are past the point of mathematically solving our problem as well. We have the luxury (or curse) of a government-controlled central bank which makes it easier for us to inflate faster than Europe. We also don’t have competing nationalities vying with each other.
We are similar in the sense that ordinary citizens are being bilked to save the elites, a fact increasingly being recognized on both sides of the pond. Civil unrest is just beginning in both areas. It seems to be the only way that ordinary citizens can be heard.