"The key thing is what we've been getting from Europe for some time now, a number of weeks: The best estimate is, and I can qualify that, with certain facts, that the entire, present world financial-monetary system is going down, by about Christmastime....
"The usual profile is this: You have Germany in the background, and Germany has a very big problem in tolerating what's coming down as demands upon it. Then you have the Irish situation, which is very much up in the air, and it's one way or the other, the doom of the British-Irish game is over. Then, while Ireland is still fulminating, you have the situation in Portugal, and Portugal is quite significant, but it is not, as of this moment, the chosen point for breaking the system. What is presumed, is that when the next round comes around to Spain, that the magnitude of the Spanish debt will be a load that will crack the system.
"And the general feeling, which we're getting from informed sources, and a great number of them, in Europe, especially in Germany, originally, is that this system is going to be hanging on your Christmas tree. Which means that all the game-playing which is being done in the United States, is that. And the minute it hits Spain, the expectation is—and there's a very good argument for that—at that point, the Russians will start dumping European currencies, Western European currencies, the system."