Posted on 05/31/2012 6:25:01 PM PDT by SatinDoll
If Raoul Pal was some doomsday spouting windbag, writing in all caps, arbitrarily pasting together disparate charts to create 200 page slideshows, it would be easy to ignore him. He isn't. The founder of Global Macro Investor "previously co-managed the GLG Global Macro Fund in London for GLG Partners, one of the largest hedge fund groups in the world. Raoul came to GLG from Goldman Sachs where he co-managed the hedge fund sales business in Equities and Equity Derivatives in Europe... Raoul Pal retired from managing client money in 2004 at the age of 36 and now lives on the Valencian coast of Spain, from where he writes." It is his writing we are concerned about, and specifically his latest presentation, which is, for lack of a better word, the most disturbing and scary forecast of the future of the world we have ever seen....
And we see a lot of those.
Consider this:
•We are here...
•We don’t know exactly what is to come, but we can all join the very few dots from where we are now, to the collapse of the first major bank…
•With very limited room for government bailouts, we can very easily join the next dots from the first bank closure to the collapse of the whole European banking system, and then to the bankruptcy of the governments themselves.
•There are almost no brakes in the system to stop this, and almost no one realises the seriousness of the situation.
•The problem is not Government debt per se. The real problem is that the $70 trillion in G10 debt is the collateral for $700 trillion in derivatives…
•Yes, that equates to 1200% of Global GDP and it rests on very, very weak foundations
•From an EU crisis, we only have to join one dot for a UK crisis of equal magnitude.
•And then do you think Japan and China would not be next?
•And then do you think the US would survive unscathed?
•That is the end of the fractional reserve banking system and of fiat money.
•It is the big RESET.
Just a ping — I know you’re expecting this global travesty but couldn’t help but try and elicit a comment or two.
bttt
Ping
ping
God is in control. I am not worried.
Ping.
Lets hope its wrong, though Europe does seem to be having a lot of bank runs lately....
Ping.
Lets hope its wrong, though Europe does seem to be having a lot of bank runs lately....
“•That is the end of the fractional reserve banking system and of fiat money.”
So, explain to us why this is so bad. The fractional reserve banking system is the root of all evil in today’s economies. Fiat Money is not worth the paper on which it is printed.
Direct quote from Noah's next-door neighbor.
How long can you tread water?
This is all gibberish to me. What would this mean to me as a person who does not invest? Price increases? Soaring food prices? Are we talking worse than the Great Depression type fiasco?
“How long can you tread water?”
Bill Crosby performing Noah. I have the album still...
Zero sense hedgehog blog. Typical of their crap.
Interesting, You must read it then, Greece going down, They have been saying this for years now, Spain going down, again predicted: http://www.freerepublic.com/focus/f-news/2890105/posts
Italy is probably one of the next with Portugal and Ireland not far behind. France somewhere in the mix. I guess a little more time will tell.
Disbelieve what you want but for sure do not be surprised when all is said and done.
Silver seems to be a safe invest, but in a reset, nothing but seeds will be secure ........................................ FRegards
“The real problem is that the $70 trillion in G10 debt is the collateral for $700 trillion in derivatives…”
This is total and utter rubbish. Makes the rest of the statements suspect.
A big reset could be an ideal time for the Antichrist to show up on the scene. We would need ssomeone to save us. ;)
“This is all gibberish to me”
Then you’ve understood it completely. It IS gibberish.
Peripheral EU countries have debts they may not be able to repay, that will require deleveraging and re-capitalization.
It’s not the end of the world, any more the Russia 1998 ruble crisis or Argentina’s Bankruptcy were. But it will cause economic pain for those countries and investors.
“What would this mean to me as a person who does not invest? “
You are lucky!
Personally I am 90 percent cash and 10 percent prec metals. No one knows if we will face deflation or inflation, we need to prepare for both. Get out of debt. That is financially. From a prep viewpoint, accumulate 6 month or more in food, have a source for clean water, stockpile toilet paper, meds, etc. Last and not least one firearm with ample supply of ammo for self protection. Most likely scenario is a financial crisis, and a currency reset like Mexico in the 1990’s or recently Argentina. Study what happen with these two nations and what followed. Prepare for bank holidays, limits on ATM, no credit cards, reset of currency.
Except laying up supplies of freeze-dried food, beans and flour - along with enough ammo to hold of horrific mobs, and government troops - about all you can do is watch the implosion with the rest of us.
This is what they want - in order to bring about global government, one world currency, etc. etc.
But, hang on to your hat - that brings on the so called 'end times' - which is the best thing that could possibly happen to these global-government madmen. They lose, we win.
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