Posted on 10/02/2011 4:30:15 PM PDT by blam
Prophets Of Doom: 12 Shocking Quotes From Insiders About The Horrific Economic Crisis That Is Almost Here
October 1, 2011
We are getting so close to a financial collapse in Europe that you can almost hear the debt bubbles popping. All across the western world, governments and major banks are rapidly becoming insolvent. So far, the powers that be are keeping all of the balls in the air by throwing around lots of bailout money. But now the political will for more bailouts is drying up and the number of troubled entities seems to grow by the day. Right now the western world is facing a debt crisis that is absolutely unprecedented in world history. Europe has had a tremendously difficult time just trying to keep Greece afloat, and several much larger European countries are now on the verge of a major financial crisis.
In addition, there is a growing number of very large financial institutions all over the western world that are also rapidly approaching a day of reckoning. The global financial system is a sea or red ink, and when we get to the point where there are hundreds of ships going under how is it going to be possible to bail all of them out? The quotes that you are about to read show that quite a few top financial and political insiders know that things cannot hold together much longer and that a horrific economic crisis is coming. We built the global financial system on a foundation of debt, leverage and risk and now this house of cards that we have created is about to come tumbling down.
A lot of people in politics and in the financial world know what is about to happen. Once in a while they will even be quite candid about it with the media.
As I have written about previously, Europe is on the verge of a financial collapse. If things go really badly, things could totally fall apart in a few weeks. But more likely it will be a few more months until the juggling act ends.
Right now, the banking system in Europe is coming apart at the seams. Because the global financial system is so interconnected today, when major European banks start to fail it is going to have a cascading effect across the United States and Asia as well.
The financial crisis of 2008 plunged us into the deepest recession since the Great Depression.
The next financial crisis could potentially hit the world even harder.
The following are 12 shocking quotes from insiders that are warning about the horrific economic crisis that is almost here....
#1 George Soros: "Financial markets are driving the world towards another Great Depression with incalculable political consequences. The authorities, particularly in Europe, have lost control of the situation."
#2 PIMCO CEO Mohammed El-Erian: "These are all signs of an institutional run on French banks. If it persists, the banks would have no choice but to delever their balance sheets in a very drastic and disorderly fashion. Retail depositors would get edgy and be tempted to follow trading and institutional clients through the exit doors. Europe would thus be thrown into a full-blown banking crisis that aggravates the sovereign debt trap, renders certain another economic recession, and significantly worsens the outlook for the global economy."
#3 Attila Szalay-Berzeviczy, global head of securities services at UniCredit SpA (Italy's largest bank): "The only remaining question is how many days the hopeless rearguard action of European governments and the European Central Bank can keep up Greece’s spirits."
#4 Stefan Homburg, the head of Germany's Institute for Public Finance: "The euro is nearing its ugly end. A collapse of monetary union now appears unavoidable."
#5 EU Parliament Member Nigel Farage: "I think the worst in the financial system is yet to come, a possible cataclysm and if that happens the gold price could go (higher) to a number that we simply cannot, at this moment, even imagine."
#6 Carl Weinberg, the chief economist at High Frequency Economics: "At this point, our base case is that Greece will default within weeks."
#7 Goldman Sachs strategist Alan Brazil: "Solving a debt problem with more debt has not solved the underlying problem. In the US, Treasury debt growth financed the US consumer but has not had enough of an impact on job growth. Can the US continue to depreciate the world’s base currency?"
#8 International Labour Organization director general Juan Somavia recently stated that total unemployment could "increase by some 20m to a total of 40m in G20 countries" by the end of 2012.
#9 Deutsche Bank CEO Josef Ackerman: "It is an open secret that numerous European banks would not survive having to revalue sovereign debt held on the banking book at market levels."
#10 Alastair Newton, a strategist for Nomura Securities in London: "We believe that we are just about to enter a critical period for the eurozone and that the threat of some sort of break-up between now and year-end is greater than it has been at any time since the start of the crisis"
#11 Ann Barnhardt, head of Barnhardt Capital Management, Inc.: "It's over. There is no coming back from this. The only thing that can happen is a total and complete collapse of EVERYTHING we now know, and humanity starts from scratch. And if you think that this collapse is going to play out without one hell of a big hot war, you are sadly, sadly mistaken."
#12 Lakshman Achuthan of ECRI: "When I call a recession...that means that process is starting to feed on itself, which means that you can yell and scream and you can write a big check, but it's not going to stop."
*****
In my opinion, the epicenter of the "next wave" of the financial collapse is going to be in Europe. But that does not mean that the United States is going to be okay. The reality is that the United States never recovered from the last recession and there are already a lot of signs that we are getting ready to enter another major recession. A major financial collapse in Europe would just accelerate our plunge into a new economic crisis.
If you want to read something that will really freak you out, you should check out what Dr. Philippa Malmgren is saying. Dr. Philippa Malmgren is the President and founder of Principalis Asset Management. She is also a former member of the Bush economic team. You can find her bio right here.
Malmgren is claiming that Germany is seriously considering bringing back the Deutschmark. In fact, she claims that Germany is very busy printing new currency up. In a list of things that we could see happen over the next few months, she included the following....
"The Germans announce they are re-introducing the Deutschmark. They have already ordered the new currency and asked that the printers hurry up." This is quite a claim for someone to be making. You would think that someone that used to work in the White House would not make such a claim unless it was based on something solid.
If Germany did decide to leave the euro, you would see an implosion of the euro that would be truly historic.
But as I have written about previously, it should not surprise anyone that the end of the euro is being talked about because the euro simply does not work.
The only way that the euro would have had a chance of working is if all of the governments using the euro would have kept debt levels very low.
Unfortunately, the financial systems of the western world are designed to push governments into high levels of debt.
The truth is that the euro was doomed from the very beginning.
Now we are approaching a day of reckoning. We have been living in the greatest debt bubble in the history of the world, but the bubble is ending. There are several ways that the powers that be could handle this, but all of them will lead to greater financial instability.
In the end, we will see that the debt-fueled prosperity that the western world has been enjoying for decades was just an illusion.
Debt is a very cruel master. It will almost always bring more pain and suffering than you anticipated.
It is easy to get into debt, but it can be very difficult to get out of debt.
There is no way that the western world can unwind this debt spiral easily.
The only way that another massive economic crisis can be put off for even a little while would be for the powers that be to "kick the can down the road" a little farther by creating even more debt.
But in the end, you can never solve a debt problem with more debt.
The next several years are going to be an incredibly clear illustration of why debt is bad.
When the dominoes start to fall, we are going to witness a financial avalanche which is going to destroy the finances of millions of people.
You might want to try to get out of the way while you still can.
Awesome, Blam. I find her looks and her writing extremely attractive!
In WWII, the Japanese hoarded gold so they could afford what they needed when SHTF. When it did, there was nothing to buy.
Gold is for bridging value across an economic crash, not buying staples during it.
But... but... Bernanke said he would FIGHT deflation!
Thanks for giving it to us straight.
I think that option is at least 20 years years too late. (see above)
To remind others here, there’s no one, big, single crash in a terrible decline, although cursory history lessons appear to indicate that. There are fluctuations, and it’s doubtful that we’ll see the dates of the biggest ones in advance with any accuracy. With machines and so many groups playing the short game, it’s harder to tell than ever before without inside information from members of those groups (also favored constituents of politicians and very globally oriented). And they lie. It’s part of how they make money.
And that’s why some of the broad behaviors in the market seem to make little or no sense. For example, downgrade the our currency with good reason (crazy debt regime), and our currency goes up. Another: the Fed makes an extremely desperate bond-swap move, and our currency goes up, further crushing US manufacturing and exports.
In short, we’re ruled by tyrants engaged in orchestrated insanities for their own personal interests, and they’re not really contributing to western production or prosperity. Extreme decline is imminent. They’ll either continue squeezing the dollar up to hasten the decline, as the debt regime has already gone too far. Or they’ll put it off a short while longer by devaluing the dollar.
And BTW, the stuff about China’s immediate decline is propaganda for placating the western masses that are about to erupt. The latest effort to hike the dollar unnaturally and internationally, and to crush oil prices, is an effort to try to continue the import regime (lowering freight fuel, Chinese prices, etc.). Watch for new floods of American unemployed. It’s the end of 2007 and beginning of 2008 all over again, but far worse.
Hold on to your pennies. Don’t buy anything.
I would assume that Ann’s stalker has not showed his face yet as her web site is still up and running. I just could imagine her taking a trophy photo with him hanging upside down from a tree limb.
I work in the Fine Jewelry sector...people still are buying but being very cautious about what they buy....I see many walking away from gold purchases...stunned at the price of a simple gold chain.
Further gold pieces are far less weighty than even a year ago...some pieces so light they are more like the weight of hallow gold...customers are not happy...and a rude awakening to many.
We have price increases at pace I haven’t seen before.
I had to have a clasp repaired last week and was stunned at the price of gold charms.
Astonishing.
Is sterling silver still about the same?
I knoe.
But it’s still the only option. It’s just going to hurt more. :(
I know.
But it’s still the only option. It’s just going to hurt more. :(
is my money in my roths and 401 worth anything?....I’m not old enough to take it out without a penalty and taxation and then again, what would you do with it anyway.
Had an interesting occurance this week... a businessman using his American Express for four purchasing transactions on our company terminal, each amounting to about $300-$400 dollars. During the third transaction his bank ‘stopped’ the transaction “at the terminal”...I could go no further even though it was our companies terminal...not his banks.
Though American Express called him on his cell phone in minutes to of course qualify it was he making those large purchases,.... what was astounding is that this mans bank had access to ‘our companies terminal’ to hault the transaction physically at the terminal site itself.
I could not continue the transaction until his bank released the “screen”..which they basically froze...
Of course they did release it once confirmed he was the card holder making the purchases....but the idea is that a bank could somehow stop this on our companies terminal.
It will be no wonder then that a One World Currency and Economic System could indeed monitor and ‘control purchases’ of any kind, at any companies terminal, and anywhere in the world.
Thanks.
I just studied it and I think I understand it. :-)
100 oz. bars flying off the shelves.
No...silver has risen as well...two or three weeks ago a claw clasp, used to connect a bracelet, would cost you $125. to repair! An earring back was at $75. Now that cost has dropped but it’ll likely go up again.
Our clearance items are selling like hotcakes...most pieces 50-80% off.....we’ve noticed an increase in gold buyers making large purchases.
That would be a gold clasp not a silver one. Just for clarity.
That would be a gold clasp not a silver one. Just for clarity.
I just wanted to say, that your post is right on, and I’m thankful for the ones I occassionally see from you. Thanks!
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