Nomi Prins Warns Financial Crash From Epic Debt, Asset Bubbles "Possible In Last Quarter 2017"

Tyler Durden's picture

Submitted by Mac Slavo via,

Could there be a crash coming in 2017? Will increasing interest rates at the Federal Reserve trigger the beginning of the end?

It is possible, but not certain.

It will fall, perhaps, after a new sense of normal sets in, and some become comfortable with the change in leadership, and accustomed to drowning out the opposition yelling noisily from the other side. Expectations have been set for a growing economy, fresh infrastructure and new hopes for the average worker.

But getting too comfortable would be a huge mistake. All that could prove to be a mirage. And things could come crashing down.

Now that Donald Trump has been inaugurated as the 45th President, all eyes will be on his first 100 days as he demonstrates what kind of president he will be, and his cabinet takes action. But even with the best intentions and carefully laid plans, there is no telling at this point how firmly he will be tested, and what kind of crisis America will have to endure during his first term. Wars, terror attacks, civil unrest, debt crisis and financial collapse all loom overhead.

Many have seen dark signals about the immediate future, but no one can claim to know the timing.

However, former Wall Street banker and now best selling critic of the predatory financial system Nomi Prins sees the pattern unfolding, and fears that the end of 2017 may be the time that everyone has been watching for. At the center of it is the whiplash effect of Federal Reserve stimulus-withdrawal (i.e. rate hikes and the contraction of easy money).

Greg Hunter of USAWatchdog interviewed Nomi Prins:

Former top Wall Street banker and best-selling author Nomi Prins correctly predicted no financial crash for 2016. Prins’ upcoming book is titled “Artisans of Money.” It is all about central bank money creation. What does Prins say about this year? Prins predicts, “In 2016, I pegged the non-crash. . . . Central bankers were finding new ways to extend their money creation policies. That is what kept the markets up.


There was a separate bid on the markets after Trump was elected. It was on the expectation that he would be good for growth, that he would be good for infrastructure and that he would create jobs. I do think there is a little juice in the central banks. I keep thinking there shouldn’t be, but they keep surprising all of us with their ability to boost the markets. They have artificially stimulated so many different asset bubbles, whether it’s debt, which is epic, or stock markets, many of which are at historic highs. If we have a crash, it will be in the second half of 2017. The promises, the rate hikes, the dollar being high could collapse into the realities of the stability and this artificialness. I am not sure about a crash this year, but if we see a big decline, it will be in the last quarter.”

Prins foresees gold prices surging during this last quarter period of instability. Those who’ve been eating sinking gold prices may find some relief once again, but the larger economic system is in danger of crashing and burning, and the possibility that the dollar will lose out:

“I think with the expectation of things going well, the dollar will be keeping a bit of a bid. It will be within a range but staying fairly up. I think the dollar will turn around and weaken in the second half of the year. . . .That’s why, in the last half of the year, gold will catch more of a bid.”

Prins discussed the alliance between Russia and China and what is about to unfold geopolitically.

“Because Russia, Putin’s very smart. He’s not just waiting to see what happens with Trump and the U.S. You know, there’s been very favorable rhetoric so far, but, you know, that could be a wild card. Things could be changed.


Someone could get annoyed at someone else. So what he’s been doing, he’s been fortifying his relationship with Eastern Europe, his relationships with the UK, with Japan and particularly his relationship with China and the non-Russia BRICS countries. So all of this will be in flux…”

According to Nomi Prins, the crash wouldn’t be so much an immediate headline flashing-event, as it would be a steady decline and gradual sinking to the bottom.

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ClownBaby's picture

We've been hearing this for years now. One of these days the market will go down because that's what markets do. The longer we go without it going down, the more likely it is to go down.

BaBaBouy's picture

Be Prepared, Be In Phys GOLD ~

"That’s why, in the last half of the year, gold will catch more of a bid.”"

bwh1214's picture

This video series is the best explanation of our failed monetary system.

FX223's picture

In MSM this is known as EPIC BTFD opportunity in Q4.


I don't always stack, but when I do I prefer dos metals.

Keep stacking and stashing friends.

The Saint's picture
The Saint (not verified) FX223 Jan 22, 2017 10:20 AM

The crash is probably coming but I wouldn't hold my breath waiting for it.  It will out live you, as usual.

It's like waiting for the San Fran earthquake.  It's coming and you can prepare long term for it but you can't say when it's coming or base your life around it.  The waiting will bury you.


Haus-Targaryen's picture

I am so sick of these "the crash is coming in this quarter" nonsense.  

The crash will happen when the powers that be think that crashing the system will give them their biggest advantage when building the new one.  Not a moment before hand. 

Truther's picture

Even yesterday on ZH Doug Casey said within the first 100 days. It's all bull shit. They will pull the plug only when they're ready.

MalteseFalcon's picture

Let's see:

o a president that some want to be a scapegoat

o  country is encumbered with record debt

o  interest rates held artificially low for 8 years to accommodate the debt

o  now the FED that decides to start raising rates, just because

I don't see any changes here.

Just more doom porn.


Steady as she goes.


eatthebanksters's picture

If Trump can ramp up our economy to 4% growth then we will be fine.  He's going to cut government, save money and start paying down the debt.  And if th Fed fucks with him then he'll get Congress to fuck with the Fed and change things up...the survival of their power depends on the Fed playing along.

WernerHeisenberg's picture

Anyone notice that Ms Prins, formerly of the GS vampire squid, uses a profile photo which almost looks like a coy "one eye" signal

Praetorian Guard's picture

I disagree. Now you are implying that they control 100%, 100% of all aspects of the financial world, including the movement and self will of people. I am still not buying it. Do they control aspects of the financials? Absolutely. They, however, are still vulnerable. They cannot control the mindset of people, nor the ever moving tide of economic vacillation. They can influence it, but they cannot control it 100%.


It will crash, they can try to prevent it, bu they will not be able to. We are definately in the last inning...

Perimetr's picture

Black swan event coming soon

I'm waiting for the big EMP in the sky

Will be interesting to see how well Americans can do without electricity

hard to pump water, gas, drive cars, run refrigerators, when the power goes off and stays off,

and after that a couple dozen nuclear power plants

will all be melting down at the same time

Xena fobe's picture

I agree.  Then given that assumption, we should be able to time the next crash by the percent of hard assets that have been aquired by the elite.   

invest-in-bullion's picture
invest-in-bullion (not verified) The Saint Jan 22, 2017 11:46 AM

If everyone just stays calm and convert all their money to Gold, everything will be OK

Escrava Isaura's picture

How did we get into this mess?

You don’t need video for that. Here’s your answer: The idea that somehow the marketplace should determine human behavior and guide human activity. Self-help gurus, Oprah and the Christian Right, that if we dig deep enough within ourselves, focus on happiness, find our inner strength, or believe in miracles, we can have everything we desire.


GGuy's picture

Stacking and PACKING

Escrava Isaura's picture

Gold will help “some” post collapse, but most will be disappointed. Your best bet is to be in a self-reliant community. Heavily armed. And away from large centers and the coasts.


Snípéir_Ag_Obair's picture

You are a fascinating mix of eminently sensible, and batshit crazy posts.

I like it.

Not My Real Name's picture

If by "mix" you mean 5% sensible, 95% batshit crazy, then I'm with you.

krispkritter's picture

I think this may be the first one of his posts I've a-greened with...

MalteseFalcon's picture

The financial markets will crash, but the rest of it will be a continued, slow slide, until the effect of Trump's good work kicks in.

It'll be like Argentina for a while, not 'Lord of the Flies'.

But unlike Argentina, America has the means and will to recover.

Economically, will be be like "free money, crazy fun time"?


Economically we'll fall back a generation, but people actually lived happy lives with the material goods available in the 60s.

We'll need a cultural adjustment to offset the economic change.

I'm thinking the 1960s without the Viet Nam war and the "revolution".

That's why the MSM must be obliterated.


deja's picture

Stack gold, lead, and toilet paper.

Creative_Destruct's picture

Natural dynamics between people is the market place and is human behavior. Just as many, if not more, problems occur when over regulation occurs that distorts the flow of real supply-demand info in the system. Artificially amping up markets with excess money printing has predominated the last 30 years or so. This artificial and unsustainable amplification by Central Banks is the root cause of "this mess", because it has unleashed the foolish vain desires of human nature you correctly describe. Without this, the vanity of human nature would have been (more or less, with some exceptions) restricted and restrained  by the natural scarcity signals to the point that "this mess" would not exist to the egregious extent that it currently does.

The notion that a "liberal class" Hitches describes exists that somehow has "the" preconceivable and pre-planned answers that would solve the problems exclusive of human action reflecting peoples own preference, needs, and desires, is an arrogant vanity. But our own foolish tendencies, which you correctly point out, need to be restricted and can be restricted by the natural feedback of a system with REAL money that reflects the natural supply demand dynamics.

This "liberal class" and their well intentioned but misguided tendency to want all injustices and problems solved by government planning, which requires massive fiat money printing, is just as responsible for the artificial distortions of the economic system as the wealthy financial class that has captured and rigged the system in their favor.

Consuelo's picture



"The notion that a "liberal class" Hitches describes exists that somehow has "the" preconceivable and pre-planned answers that would solve the problems exclusive of human action reflecting peoples own preference, needs, and desires, is an arrogant vanity.'



Allow me to distill that down to a simple drink between gentelmen:


"My worldview is morally superior to yours, but that's not enough.  I will employ a proxy (Government Force) to ensure that you bow to that worldview"

Doug's picture

Great article.  Thanks.  Don't understand why you got so many down votes.

tenpanhandle's picture

Because its Escrava Isaura.


note to Escrava Isaura: Bad publicity is still publicity. Trump capitalized on that.

bania's picture

The longer the Big Fat Ugly Bubble continues, the lower the chance of Trump's re election in 4 years. He knows this.

Escrava Isaura's picture

Financial crash in the US in 2017?

Ain’t gonna happen. And if deregulation jump start shale production back to over 4 million barrels we might not even have a correction of these bubbles.

Now, next decade is a different story.


Winston Churchill's picture

At a 4:1 return on energy invested increasing shale production merely hastens the end.we

need a minimum 30:1 to even maintain the statur quo.

Manipulating fiat just obscures the lawas of physics,not annuls them, but they still apply.

Snípéir_Ag_Obair's picture

so, off topic but not entirely:

this is yuuuge, in a couple ways at least...

basically Russia's high court told the AngloZionist controlled ECHR to go fuck themselves over the absurd Yukos verdict in which thry had claimed that a handful of jews who basically stole everything not nailed down under Yeltsin were owed tens of billions because they stole it fair and square.

keep and eye on nyt wapo cnn etc coverage.

background on how the Harvard Mafia helped. Note the names.

Snípéir_Ag_Obair's picture

also: Russia is bombing the fuck out of ISIS around Deir Ezzor (site of that 'accidental' us attack on Syrian troops which preceded an isis assault

Is CIA conducting its own war with ISRAEL, SAUDI ARABIA, AND ISIS?

You bet they are. In Obama's waning days the US, **without any doubt** continued to do prep and support work for their proxies.

Time to unleash hunter killer teams and mop up the spooks...

OverTheHedge's picture

Deir Ezzor is surrounded, besieged, and likely to fall any day. At least, I think that might be the position, but it is hard to say as the MSM apparently have never heard of it. Of course, this might just be because it is besieged by ISIS, so not worth mentioning. If Assad was doing the beseiging, we would need huge condemnation and action to stop him, but as it is the irrelevant "so-called" ISIS, who are just a bunch of rowdy, misunderstood villagers, it is not worth mentioning. Got to love the media.

Cynicles's picture

not so easy for most people as most people are in debt in this nation - unless you support more debt to buy gold 

curbjob's picture

"We've been hearing this for years now."


True, but with a real fucking moron at the helm chances are good that this time it will be different. 

This is why I voted for Trump, he's our best bet at rediscovering gravity.

StagStopa's picture

No way, not gonna happen. Cheetos-face fuhrer will make everything great. Cult of personality always starts with a lot of momentum.

Hail Trump

Hail Victory



indygo55's picture

Years ago I owned a bar that served lunch and dinner. Had a sign on the wall, "Free Lunch - Tomorrow". Old sign. Same old story. 

Truther's picture

I had a sign that read:

"I shoot every third salesman, and the second one just left."

Lordflin's picture

Given Yellen's promise to end hot money now that Trump is president I suspect this forecast is accurate.

tenpanhandle's picture

Trump's team of Krugmans will be dealing with that.


Lordflin's picture

Sorry for the double post. I haven't done that in awhile.

OverTheHedge's picture

It's ok, we're all getting twitchy....

emersonreturn's picture

lordflin, always good to hear from you.

WillyGroper's picture

she didn't warn us of her contributions to hiliary.

Jeffersonian Liberal's picture

Are you serious? Did she really vote for the fascist? For the global socialist who agrees with the big-government economic policies that are causing this shitstorm?

I'm so fucking tired of these hypocritical leftist assholes.