Posted on 02/14/2014 7:46:25 PM PST by Tolerance Sucks Rocks
If you have been waiting for the "global economic crisis" to begin, just open up your eyes and look around. I know that most Americans tend to ignore what happens in the rest of the world because they consider it to be "irrelevant" to their daily lives, but the truth is that the massive economic problems that are currently sweeping across Europe, Asia and South America are going to be affecting all of us here in the U.S. very soon. Sadly, most of the big news organizations in this country seem to be more concerned about the fate of Justin Bieber's wax statue in Times Square than about the horrible financial nightmare that is gripping emerging markets all over the planet. After a brief period of relative calm, we are beginning to see signs of global financial instability that are unlike anything that we have witnessed since the financial crisis of 2008. As you will see below, the problems are not just isolated to a few countries. This is truly a global phenomenon.
Over the past few years, the Federal Reserve and other global central banks have inflated an unprecedented financial bubble with their reckless money printing. Much of this "hot money" poured into emerging markets all over the world. But now that the Federal Reserve has begun "tapering" quantitative easing, investors are taking this as a sign that the party is ending. Money is being pulled out of emerging markets all over the globe at a staggering pace and this is creating a tremendous amount of financial instability. In addition, the economic problems that have been steadily growing over the past few years in established economies throughout Europe and Asia just continue to escalate. The following are 20 signs that the global economic crisis is starting to catch fire...
#1 The unemployment rate in Greece has hit a brand new record high of 28 percent.
#2 The youth unemployment rate in Greece has hit a brand new record high of 64.1 percent.
#3 The percentage of bad loans in Italy is at an all-time record high.
#4 Italian industrial output declined again in December, and the Italian government is on the verge of collapse.
#5 The number of jobseekers in France has risen for 30 of the last 32 months, and at this point it has climbed to a new all-time record high.
#6 The total number of business failures in France in 2013 was even higher than in any year during the last financial crisis.
#7 It is being projected that housing prices in Spain will fall another 10 to 15 percent as their economic depression deepens.
#8 The economic and political turmoil in Turkey is spinning out of control. The government has resorted to blasting protesters with pepper spray and water cannons in a desperate attempt to restore order.
#9 It is being estimated that the inflation rate in Argentina is now over 40 percent, and the peso is absolutely collapsing.
#10 Gangs of armed bandits are roaming the streets in Venezuela as the economic chaos in that troubled nation continues to escalate.
#11 China appears to be very serious about deleveraging. The deflationary effects of this are going to be felt all over the planet. The following is an excerpt from Ambrose Evans-Pritchard's recent article entitled "World asleep as China tightens deflationary vice"...
China's Xi Jinping has cast the die. After weighing up the unappetising choice before him for a year, he has picked the lesser of two poisons.
The balance of evidence is that most powerful Chinese leader since Mao Zedong aims to prick China's $24 trillion credit bubble early in his 10-year term, rather than putting off the day of reckoning for yet another cycle.
This may be well-advised for China, but the rest of the world seems remarkably nonchalant over the implications.
#12 There was a significant debt default by a coal company in China last Friday...
A high-yield investment product backed by a loan to a debt-ridden coal company failed to repay investors when it matured last Friday, state media reported on Wednesday, in the latest sign of financial stress in China's shadow bank sector.
#13 Japan's Nikkei stock index has already fallen by 14 percent so far in 2014. That is a massive decline in just a month and a half.
#14 Ukraine continues to fall apart financially...
The worsening political and economic circumstances in Ukraine has prompted the Fitch Ratings agency to downgrade Ukrainian debt from B to a pre–default level CCC. This is lower than Greece, and Fitch warns of future financial instability.
#15 The unemployment rate in Australia has risen to the highest level in more than 10 years.
#16 The central bank of India is in a panic over the way that Federal Reserve tapering is effecting their financial system.
#17 The effects of Federal Reserve tapering are also being felt in Thailand...
In the wake of the US Federal Reserve tapering, emerging economies with deteriorating macroeconomic figures or visible political instability are being punished by skittish markets. Thailand is drifting towards both these tendencies.
#18 One of Ghana's most prominent economists says that the economy of Ghana will crash by June if something dramatic is not done.
#19 Yet another banker has mysteriously died during the prime years of his life. That makes five "suspicious banker deaths" in just the past two weeks alone.
#20 The behavior of the U.S. stock market continues to parallel the behavior of the U.S. stock market in 1929.
Yes, things don't look good right now, but it is important to keep in mind that this is just the beginning.
This is just the leading edge of the next great financial storm.
The next two years (2014 and 2015) are going to represent a major "turning point" for the global economy. By the end of 2015, things are going to look far different than they do today.
None of the problems that caused the last financial crisis have been fixed. Global debt levels have grown by 30 percent since the last financial crisis, and the too big to fail banks in the United States are 37 percent larger than they were back then and their behavior has become even more reckless than before.
As a result, we are going to get to go through another "2008-style crisis", but I believe that this next wave is going to be even worse than the previous one.
So hold on tight and get ready. We are going to be in for quite a bumpy ride.
Get my new book about the future of America: The Beginning of the End.
OH, SH*T!
/johnny
It’s interesting that the state department has said NOTHING on the complete overthrow of democracy in Venezuela. Maduro has ordered all his opposition arrested and appointed himself dictator. Obama silent because he’s a fellow Marxist.
Anybody else feel a nice big war coming? Last time this happened was the Depression, took a few years for it to start but now in a world run by machines it could come much faster. Time honored cure all for the problems caused by corrupt bankers and governments, wipe the slate clean and get a few tens of millions killed, just part of doing corrupt business.
It’s only SHTF for developed nations, and those emerging markets that rely on investment rather than production to fuel growth.
China is fine. Russia is fine. Chile and Uruguay are probably OK. Mexico is on the upswing. Iceland has exited the Bankstersphere and is doing well.
The Anglosphere is FUBAR. The EEU is FUBAR. Everywhere in South and Central America outside of Chile and Uruguay is FUBAR. India might be FUBAR. South Africa is FUBAR. The rest of Africa has been FUBAR since before Strom Thurmond took office, but parts of it might be looking up. The middle-east has always been, and will always be a special brand of FUBAR.
Did I miss anyone?
“Last time this happened was the Depression”
Pretty much the same causes now. 1/2 of the labor force was rendered obsolete. If history has taught us anything, it should be that large masses of people with nothing but time on their hands tend to cause problems.
Those banker deaths are fascinating.
So your new book will solve everything, or you just want to make some money before the world economy collapses?
Well, hell. Before I read this I was only slightly depressed.
Will we be living in a situation where we're getting economic growth from 2020 on under the shadow of 35-40% of the human race wiped out by world war?
Those 20 items are minor events.
Looks like the investment opportunity of the future might be in hazmat clean up. Anybody think this saber rattling is not a concerted effort by the corrupt that have put us in this situation to clean the slate with war? Anybody think these people are not capable of it?
I would be careful, because there are off shore banking, swaps, derivatives and etc etc that is not on the books. Experts estimate the world has about $ 1.500 quadrillion (1000 trillions) of these invisible interlocking debts. If it implodes because other economies are imploding or US interest rates are increasing (rumor has it that the Feds must find a way to prevent the 10 year T bond yields to exceed 3 percent or it will unhinge the interest rate swaps that the US has with other banks in the world. Just to give you an idea of scale, the US economy is 17 trillion, add the world economy to the US economy it becomes 65 trillion. The US debt is 16 trillion, plus 70 trillion in unfunded liabilities plus 30 trillion in unseen deals made by the Fed Reserve with foreign banks, deals backed by the US Treasury (ala US taxpayers). Worst case US debt is about equal to the entire global GDP times 2. Off shore derivatives and other exotic vehicles is $ 1500 trillion. IMHO when the world interlocking scheme and attempt to preserve the world reserve currency (US dollar) falls apart the nations of the world will come up with a new world currency backed by a basket of hard assets. This is why China and Russia is buying gold even when the price of gold drops in US dollars. China is hedging her bets to cover potential loss in the $ 1 trillion worth of US T bonds she had invested in. China cannot dump the US T bills without injuring her economy, but she cannot sit by as the US gov keeps piling debt on debt till the dollar implodes. China and Russia has a plan, do we FR and Tea Party members have a plan for self and family when banks are closed and the Fed Gov is forced to reset the US dollar.
China just outpaced India as the world’s largest buyer of gold. Oil just busted thru 100/bucks again. Iran has decided to help patrol our coastal waters. Don’t worry about the small stuff and its all small stuff, you think?
“OH, SH*T!”
Don’t get upset, buy another bag of died bean soup mix and a box of instant rice - repeat every time you go to the grocery. If you don’t have a Big Berky water purifier, get one. Then, don’t worry, be happy :o).
I’d have to spend a year breaking up all the rocks in my soil just to grow one.
In a what-did-they-know-that-we-don’t sort of way.
I only posted the article; I did not write it.
bkmk
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