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Prophets Of Doom: 12 Shocking Quotes From Insiders About The Horrific Economic Crisis That Is Almost Here
Prophets Of Doom: 12 Shocking Quotes From Insiders About The Horrific Economic Crisis That Is Almost Here
Courtesy of Michael Snyder of Economic Collapse
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.
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The idea that any of this drivel is taken seriously just makes you the nigger you were trained to be.
Go do something good for someone and understand how a REAL economy works.
Everything else here is just an episode on a day time soap.
Good to be a slave huh?
When George Soros says out loud a collapse is coming, he has a bet which is going to pay off based on the hoi polloi's reaction to his declaration. He doesn't necessarily want a collapse, nor necessarily a stay on such a collapse; he wants profit regardless of the direction of the economy.
One has to wonder why an 80 yr old Commie bastd like SOROS,that has had his finger in the eye of the USA, screwing us at any turn and chance he can get,would even care if he made one more dime.
He's a fricken multi billionaire now,why continue to act as if your living forever, and screwing up up millions of peoples lives with you money?.
There has never been a Brinks truck following any Hearse I have seen at a funeral,and his time is very short.
Ask Steve Jobs,how all those billions can save you.
Because all he knows how to do is screw people?
Unfortunately people like Soros (or Jobs) have a totally different mental makeup and approach to life. They may have one leg in the grave, but they want to feel and exercise power over millions of other human beings. Like a kid who collects baseball cards all the time, never satisfied with what he has, always wanting the next hot card, these guys cannot live the next moment without screwing up thousands of people's lives and feeling great about it.
I think we all are trying to figure out just how we can do just this, as per last line in the article: "You might want to try to get out of the way while you still can. " I spoke to the owner of website ResumesWinInterviews.com and his clients are not winning out there. This fact bothered him to the point of providing a no-charge ebook to help people get into their own businesses. Still the joblessness pain is deafening out there. So, the more suggestions the better for how to "...get out of the way while you still can."
There is no "getting out of the way".
Just love thy neighbor
Or
Fuck thy neighbor
Thanks for showing us who is fucking who Tyler.
Now who did you love, worship and give to today?
We're broke......now where's my million $ (and intrernational fame) for that sage observation????
I'll remember the names of the people who called me crazy for investing all my savings in PM's when the day comes.
Wow - that sounds like great a great investment.
How do you think they will feel when you get to spew from your rectum "I was right!"
How's if feel jerking off with PM's?
Why sudden? Planning to rub a few noses in it? There will be millions of human beings trekking to feeding stations for their next meal and millions more angry and desperate, and you are going to get in their face and say to them "FUCK YOU?" I was right and you were wrong? Somehow I doubt anyone here is dumb enough not to understand the hostility and hate of the mob. Already they are massing in New York because there is a power of intuitive foreknowledge that the end is very near. If I were working in the financial industry, especially on Wall Street, I think I would call in sick for about two months because sometime in that period I expect you will see a lot of bodies swinging from street lights. When it is realized that something like 6% of people accumulated all the gold and silver outside of the repositories and now hold all of the wealth because nothing else is wealth anymore you will have to deal with more than angry mobs, the government is going to want to tax it, to the tune of 100% likely.
Hide it in a nun church.
Avatar is Farnsworth?
And they'll remember yours. Best to keep a low profile.
Fella I work with made a big show of bragging about how when the millenium changed, the world was going to end, and he was ready. He bought lots of gold, silver, ammo, and MREs (meals, ready to eat) He'd strut around bragging how "he was ready" and asking everyone what THEY plan to do when the SHTF. When he asked me, I said "I'm going to shoot you in the head and take your stuff since you've told me where to find it." I think he got the message and hushed his big mouth.
Four words, three lies.
- Ned
I changed my portfolio to:
80% physical PM
10% guns and ammunition
and 10% food and various supplies
I also have a strategy to prevent acquisition but that's a trade secret.
The poor mans formula:
25% PMs (mostly ASEs)
25% Food storage/ Water filtration
25% Weapons, Ammo, Tools, garden equip/seeds
25% Residence hardening/countermeasures
Your mileage may vary. (depending on locale)
There is widespread confusion concerning the end of THIS world vs. the end of THE world. THIS world WILL end. This world--characterized by excessive indebtedness, imbalance, and few producers but plenty of consumers--will indeed end. It will crash under the weight of its own internal contradictions.
In the end, debts that cannot be carried because of the weight, wont be. It's like trying to tow a 5-ton trailer w/a Toyota Corolla. You might get a little ways down the road, but you wont get far.
THE world, however, will not end. If the inverted debt pyramid were to collapse tomorrow, the bankers and bondholders would be hurt to be sure, and in that sense, their world WILL end. But the physical instruments of production would still be here--they'd just carry different owners and lower prices.
And the most important instrument of production, that small organ between most peoples' ears, would still exist too. And yes, I realize many do not use that vital gray matter, but fortunately, the world does not depend on everyone using their faculties to the fullest. Indeed, the world depends, almost precariously so, on but a relative few being able to exercise their minds and carrying all the rest of us along with them. So long as we don't throttle man's mind, we can re-emerge on the other side, a bit worse for the wear perhaps, but wiser and in a much better place.
"This world--characterized by excessive indebtedness, imbalance, and few producers but plenty of consumers--will indeed end."
The opposite of that is many producers and few consumers. I thought we already had that, with so many Americans working to enrich the few on Wall Street. Do you mean that still more are going to work harder to enrich even fewer who do nothing but consume like there's no tomorrow?
"HE world, however, will not end. If the inverted debt pyramid were to collapse tomorrow, the bankers and bondholders would be hurt to be sure, and in that sense, their world WILL end. But the physical instruments of production would still be here--they'd just carry different owners and lower prices."
Unlikely. Industrial production would collapse along with Financial instruments. Consider that most people have excessive debt levels. Consumers will be forced to makee deep spending cuts, causing much higher unemployment, causing an economic death spiral. Nations with debt an unable to print currency will collapse. Some will break up into smaller nations, other's will become totaliatarian. See The "Great Depression" for the classic example of what happens to the globe when a depression, deleveraging, and deflation happens. First comes deflation, then comes a big hot war. With the collapse of the Euro will come a new era of Fascism to Europe, as Flamboyant politicans make outragious claims of salvation if the public agrees to empower them with near dictatorship authorty and use of nationalism to rally the people to put them in control. This is has been happening since the time of monarchies. This time will NOT be different.
"I realize many do not use that vital gray matter, but fortunately, the world does not depend on everyone using their faculties to the fullest."
Thats a gross understatement. Thats why we are in the mess! The majority of people understand nothing about economists (including most economists) and gov't officials. Fools elect fools. Only fools allow gov't and private debt to soar during periods of ecomomic growth. Credit is like heroin in the sense that it make good times better with an artificial high. Then when the growth spurt ends, Credit withdrawl happens causing a crash and depression. Gov't then try to push Cheap credit (ie Pushers dumping cheap heroin) to get the consumers buying again (fighting addiction with more and cheaper drugs). Eventually the consumer (victum) falls into a crash that can be recovered using more cheap credit and the game is up.
Its very likely that after a short period of deflation, Countries like the US that can print money will do so. I think we will have a brief period of deflation followed by a massive injection of cheap money from money printing, in order to prevent deflation. Any extended period of deflaiton in the US would cause the collapse of the federal gov't as it would be unable to pay its debts and be forced to default. Currently in the US Politics, Both parties thing the problem is solvable. One side, the GOP thinks asterity will fix it, the other Democrats think higher taxes will solve. Both methods are flawed. Asterity will cause a deflation as consumers and business cut back spending to meet demand and income declines, forcing an hard crash. Higher taxes will also have the simlair effect. Both lead to a quick deflationary death sprial.
The bottom line is that the problem is unsolvable. No action can prevent a collapse, merely speed it up or slow it down. Money printing if managed correctly can delay a collapse. So far its manage to postpone severe deflation. That said, I am not an advocate of money printing.
Why do so many like this idea of 'hope'?
Why do so many run from real work?
Why?
You are a bunch of nigger slaves unwilling to make a life full of successes at finding what does and does not work.
You stolkholm syndrome victims of the idea it is just somewhere over the rainbow.
How many lotto tickets you buy this week?
Aren't the air spirits living with you under the freeway overpass calling for your attention yet today?
No. The waves are small today so I figured I would take it out on the niggers of free money on ZH like you.
Today I donated $ from my labor to a local surfer's family who died tragically from a bee sting. Made me feel better.
Wanna help?
http://www.luminous-views.com
What ever you purchase will 100% go to his family.
Now go away and be a good nigger to your $ as that is all you are good at or care about.
WS: You said "...the physical instruments of production would still be here--they'd just carry different owners and lower prices."
But, I say different owners and higher prices. I am sure this might seem a nattering technicality, but the prices will no longer be paid in deeply devalued fiat. For a long time prices were settled with faux money and now in future they will have to be paid in real money of some sort. Another way to look at it is that they have not really been getting paid at all because the transactions were done in debt rather than money, debt that has been degraded and much of what the prices paid was empty promises. When production demands that prices be paid in real money with no gimmick and false promise what is paid will be in real terms a lot higher, after all it was easy to buy when the price was smoke and mirrors.
As to the Toyota, what they have been doing is towing that 5 ton trailer that has been getting a ton heavier every few weeks or so and the Toyota could never have hoped to pull it in the first place, so they simply decreed that they would always tow it downhill, and to their delight not only did the whole smoking contraption roll the trailer actually pushed the Toyota so it got great mileage too, but decrees have a funny way of meeting reality at some point, in this case the bottom of the hill is right in front of us and the momentum of the trailer can't be decreed away, it will run us over.
Boiltherich....I see your point about higher prices, I guess I think in the interim as people look to raise cash, they liquidate what they can. Is it best to own 'things' rather than digits on your bank statement, since the things will be eventually re-priced in some other form, at which point you are still in the game rather than holding a bit of paper?
great comment. If I understand you correctly, there is a re-pricing that goes along with such a big shift in the economy. Not sure how that fits in with inflate/deflate scenario, it just seems logical.
Its all about cycles of history. It takes a couple generations to forget about the previous debt crisis. Kinda sucks that we are the ones facing the crisis now but, you are right, we may actually be the wiser for it ... until our grandchildren make the same mistake.
Sadly, there won't be a difference for many people because these things always end with war. The real big collapses end with wars and then in hindsight everyone calls it the end of an era. The young don't regret the end of the last era, and won't miss us. They will go on to build their own world, hopefully a better one than this.
And while you're pulling that five ton trailer, what is going to happen to that poor little Corolla's engine (says the guy whose first car was a 1981 Corolla).
The engine will be fine until the transmission fails. The tranny will fry first and maybe then seize the engine an instant later. Keep your hand on the tranny and if it gets real hot, stop.
Is that legal?
ride it my pony bitchez
.
http://www.youtube.com/watch?v=SJTnhLv0jvk
Time to implement the modern equivalent of Jubilee debt forgiveness.
Zero GDP Growth seen with strong dollar imo:
"Euro Drops to 8-Month Low Versus Dollar"
By Keith Jenkins and Kristine Aquino
http://www.bloomberg.com/news/2011-10-02...
Here i did some checking on patterns to make some sense in future events predicted by some of my charts:
http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&st=0&sk=t&sd=a&start=580#p34357
By comparing the interesting way DJIA follows Greeces Athens General index with a 1,5 year delay, including current drop ( august/september) . The patterns match almost exactly, and also compare well to my own prediction of DJIA 2011-2013 ( see in the post I referred to).
Briefly: First, have a look at the pictures :
DJIA/Greece comparison April 30, 2011:
DJIA / Greece comparison October 3rd, 2011:
Longest DJIA prediction I have made on April 26th, 2011( not from Greeces graphs, from other patterns I use) :
Since both currencies are pegged ( Greece to EUR, USA to being a world reserve currency) , at the moment where the predicted DJIA stops falling like Greece but becomes stable or even grows due to inflation, the USA DEFAULTS and deflation is replaced by inflation. By looking at Greeces graph that takes a sharp downturn(on Greeces graph, April 2011) into levels DJIA will never reach, and calibrating the time axis of DJIA graph forward, the day of inflection point is Jan 1st, 2015, or roughly, H2 2014. That is the day when USD will be unpegged ( as Greece is still pegged) = meaning the USA will default VERY soon after that or at that time, and USA deflation will change to inflation.
That gives some time for silver stackers, I guess, since as long as USD stays as a reserve currency and deflates, and the price of silver in USD goes up at the time deflation begins, it will allow them to purchase more other things with this silver. This period will last for 2 years-long enough to prepare for what comes next. This crisis is much more stretched out than 1929 crisis.
The question still remains, why at deflation start, silver will move up 3 times while gold only 10-20%. But now its more clear where to look for answers as the scope has been narrowed.
You make a very plausible argument. My initial thought is that the US can't possibly go that far into the future before the collapse. 1/1/15 seems like an awful long time (4+ more years) of can-kicking. Of course, I'm only basing that on a gut feeling, and the truth is we've already kicked the can down the road a lot longer than I had thought possible 4 years ago.
q1 2012 -end of 2014 will be a collapse with recession and deflation and increasing value of USD. The default in 2015 with following inflation will at least give some hope . Political consequences of the USA haircut I do not bring up here.
What?!?
Wrong. See the parable of the Turkey - Nicholas Taleb's Black Swan.
Depending on the continuation of an established pattern can result in an unexpected loss
Of everything. How do you plan to get out of the way of the oncoming shitstorm?
Pop some popcorn, grab a seat on the porch and watch in rapt something or other.
Everything is tied together. It is highly unlikely we will make it to Jan. 2015 before a cascading collapse occurs. Events will accelerate as we near the end. Even though the end is apparent to us, and not so apparant to the many turkeys (CNBC watchers), timing the actual collapse is going to be very difficult. Anyone waiting for a bottom in PM prices to begin stacking physical is playing with fire.
I've been trying to describe what is going on to some of my friends who haven't really looked into this stuff.
The best decription I could come up with was that dollars (euros, yuan, whatever) represented claims on value, and that, through leverage, vastly more claims on value had been generated than there was value to redeem them.
Thus, someone would wind up being disappointed. Would it be the householder who bought his house 20 years ago for $50,000, who thought his house was now worth 10 times as much? The holder of bank bonds? The shareholder of a bank that had helped create this massive expansion of value-tokens in the first place?
Most people realised the easiest way out was for the tokens to all represent less value. When I explained monetary inflation, they got it.
smiddy and jim...agree. I try to reconcile the under appreciated possibility of a swift move and the govt.'s proven ability to change the rules and take dramatic action. When the biggest player in the world markets makes the rules and prints the money....its a wild card. I don't know what action will be taken, but it may actually become convenient to let banks fail, and begin accounting for losses to let the mkt do some of the work sorting it out. At the end of the day, I am interested in protecting what I have, profit would be a nice extra at this point.
I was just doing research on "the lack of gravity in the Hudson Bay" actually. Perfect timing. Imagine for a moment if what killed all the dinosaurs was the loss of gravity--for a few million years. The counter claim of course is that "the earth's mass won't change anytime soon" so "you don't have to worry." Of course 70 percent of the earths surface is water which if turned into a gas by say "an ice sheet so big it puncture's the earth's crust" and, well...let's just say i had a vision of a Brontosaurus being the first living thing to land on the moon. Anywho it's not the end...it never is...this is what Hegel teaches us. It is as the Roman historian Polybius teaches us "yet another chance to cross the Rubicon."
Can I have some of whatever it is you're smoking?
Why not? Jimson weed grows all over the place.
LOL. Smoke that and you will walk many paths before you find your way back.
My reading of Hegel was that the only thing holding the earth together was gravity, and that it would immediately fly apart due to centripital force without it.
Admittedly, I was reading between the lines.
The end of the world is going to happen one day.
Some just start announcing it a lot in advance.
The best is that most of these US citizens think they deserve every single cent they make and come with sheer rationalization on how the very way they fail to make any valuable prediction has to be valuable.
So lets play US citizenish, lets make US style prediction.
All these US citizens are going to die.
Gimme $10 millions for that piece of info. I deserve them under US citizenism standards.
Just why do you hate US citizens so much, AnAnonymous?
Just think... Jimi Hendrix, George W Bush, Charlie Parker, Dick Cheney, John Coltrane, Donald Rumsfeld... you put them all in the same boat, the SS. US Citizen. Why?
(note to reader: just putting Jimi Hendrix and Donald Rumsfeld in the same sentence makes me feel a bit queasy)