Another Shocker: Hungarian Debt Slaves Revolting against their Austrian Bankster Masters

By John Galt
December 13, 2011 – 23:00 ET

In June of this year I warned about an upcoming debt crisis which would add to the pain the European banking system was deeply concerned about:

The Other European Housing Crash that has the ECB worried

Tonight, Bloomberg-Business Week broke the story into the main stream as now the Hungarians are in revolt against their debt masters:

Austrian Banks Facing Payback as Hungary's Debt Slaves Revolt

The piece I penned back in June dovetails nicely into the article above which highlights the evolution of the coming crisis in this statement from the piece by Boris Groendahl and Edith Balazs (from the article):

Three years later, Bod and about one million compatriots who took mortgages in francs are faced with at a debt pile that has swelled to 4.9 trillion forint ($22 billion). The currency's 40 percent slump against the franc has raised repayment costs, pushing mortgage arrears to a two-decade high and prompting Prime Minister Viktor Orban's government to brand the loans “debt slavery.”

To help homeowners, Orban imposed currency losses on banks including Erste Group Bank AG and Raiffeisen Bank International AG that may total 900 million euros ($1.2 billion). Faced with the risk Orban would impose further measures, lenders have offered to accept $2.2 billion of additional losses if the government promised to take no further action. If it doesn't, banks are threatening they may withdraw from the country.

The battle between sovereignty, unified economic systems without fiscal unification, and the ability to create a banking system within Continental Europe without cross border oversight has allowed this situation to evolve to the point where nationalism might indeed trump the desire for international mega-banks to establish residence within a country's borders. In fact the situation has deteriorated to the point where some Hungarians prefer the rule of the old communist system over having to deal with the foreign bankers who are often seen as exploiting the situation after the fall of the U.S.S.R.

The fallacy of the Western banks behavior in Eastern Europe is best summed up in this extract from the article, which illustrates just how screwed Austria, Switzerland and other nations just might be:

Moody's Investors Service last week said that Austrian banks' exposure to the central and eastern European region is “the single biggest event risk for the sovereign.” Austrian banks are also the biggest lenders in the broader eastern European region. Standard & Poor's said Dec. 5 it may downgrade Austria, one of the six remaining euro area countries rated AAA, because it may have to inject capital into its banks.

Will the last Western bankster to exit Eastern Europe please print up some Deutschmarks so the new new world order will have a replacement currency for the new old disaster known as Europe.