"There's No Way To Make This Work" Martenson Warns "A Big Reset Is Locked In"

Via Greg Hunter’s USAWatchdog.com,

Futurist and economic researcher Chris Martenson says we are not at the end of a business cycle but “. . . at the end of a credit cycle.”

Martenson warns, “Here’s why people need to be concerned. Credit cycles, when they blow up, are really, really destructive..."

"2008 to 2009 was very destructive. Instead of realizing the error of their ways, they went for a third. This is the most comprehensive credit cycle that we have seen. Remember, bubbles have two things that they need. Number one, a good story that people can believe in and, of course, it’s a false story. Number two, ample credit. That’s what the Fed and central banks of Japan and Europe have done. They just flooded the world with credit. Now, we have bubbles everywhere. When these burst, it will be the worst bursting in anybody’s lifetime because we have never seen anything like this.”

Martenson says a debt reset is locked in, and somebody is going to pay. 

When you have as much debt that the United States has... the overall debt level in the United States, including auto loans, mortgages, consumer debt, student loans and corporate debt and whatever, we’re sitting at about $60 trillion right now. It’s a huge number, and when you get to this level of indebtedness, plus those unfunded or underfunded liabilities...when you get to this level of indebtedness, there is really only one question left to be resolved, and that is who is going to eat the losses. That’s it.

So, when you start asking that question, the banks and people writing the laws are pretty sure they are not going to take the losses. The person relying on the pension is the person that is going to eat the losses. . . . There is no way to make this work. Here’s where the social tension comes in. Even as ordinary middle class people are being destroyed in this process, the rich are taking more and more out of the system. That is courtesy of the policies of the Federal Reserve...

But the big risk is when these printing sprees, these credit cycles finally burst. They are wildly destructive. They are fast. They are hard. They are sharp and they hurt.

Martenson says people can protect themselves with real assets as opposed to paper assets. Martenson says,

“Real assets are the place you need to be if and when a paper tower comes crumbling down. I am diversified myself. I believe in land. I believe in real estate. I believe in gold. I believe in silver. I believe in other metals. I believe in these hard assets because this is where we are going to have to hide out because if you held hard assets in Turkey, in Venezuela, in Argentina and in places where the currency collapsed and declined, these would have been great places to be hiding out...

When this worm turns, it’s going to be a lot faster than it has in the past. There is no free lunch, and if you can see that, there is a wealth transfer coming. The wealth transfer is going to have a bright red line, and people are going to get trapped on the side where they hold paper claims, and the people that are going to preserve their wealth are going to be on the other side of the line with their wealth tied up in real things. That’s the period of history that is about to unfold.”

Chris Martenson added this ominous statement: “We are one sinking of an aircraft carrier away from the U.S. dollar being revealed as a fraud.”

Join Greg Hunter as he goes One-on-One with Chris Martenson of PeakProsperity.com.

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Comments

Free This JRobby Sat, 07/28/2018 - 15:23 Permalink

A reset? It could be the mother of all fuckups!

This powder keg is ready to blow, even with 4.1 GDP print, the debt and malfeasance are overwhelming, meanwhile the little guy and gal gets the vice!

The WORLD will be plunged into chaos! All by design to usher in the savior called Global Marxism, and people will beg for it, unless we come up with another way to do things, we are doomed!

usdebtclock.org

Just one spark - geopolitical, economic or national civilizations are gonna go berserk!

I sure as hell don't have any answers, I've posted one thing, but I feel it is bullshit too, sigh!

I refuse to bend over and kiss my own ass goodbye tho!

In reply to by JRobby

Herd Redirecti… NidStyles Sat, 07/28/2018 - 16:18 Permalink

Debt jubilee.

End the Fed.

Ban usury, fractional reserve banking, and fiat currency.

Who isn't going to like this plan?  Banksters, billionaires.    All the more reason to do it like this!  Of course people will say "but if there is a jubilee no one will lend money ever again!"  Well, you could say it can occur at most every 49/50 years, as it was done historically.  We always try to innovate, when sometimes the solution exists, in the past.

In reply to by NidStyles

Klassenfeind Free This Sat, 07/28/2018 - 16:23 Permalink

Lather, rinse, repeat. The same old Doomporn we've been hearing for ±1 decade.

What does Martenson know anyway? Has he studied finance? Has he studied history? Has he studied geopolitics? Does he have any relevant work experience in the aforementioned fields?

The only thing Chris Martenson does is make a living of recycling the same old doomporn stories...

No doomporn => no subscribers => no income

In reply to by Free This

brushhog powow Sat, 07/28/2018 - 19:29 Permalink

They said the same thing when the debt hit 1 trillion back in the early eighties. I am old enough to remember. I was in grammar school at the time and everyone was talking about it "how is it possible?" and "There will be hell to pay" "it cant get much bigger before it tumbles down". etc, etc, etc

It could go to a quadrillion, a hundred quadrillion, who the fuck knows. Its all made up anyway, if there was anything real about it would have collapsed a long time ago. At some point they probably wont even count it anymore, some bean counter in the treasury might know the number but it will be beyond anyone's concern.

In reply to by powow

spasquier brushhog Sat, 07/28/2018 - 20:46 Permalink

You are so right, debts don't need to be repaid when interests rates are low. You just roll the debt over. Rates are now the lowest since WW2, and will remain that way for decades. It's called the Japanesation of the World. Japan has been in this situation since the 80's now. And they are still doing very well 40 years later....

In reply to by brushhog

Yellow_Snow alurker Sat, 07/28/2018 - 17:53 Permalink

These 'doom-peddler' experts now talking about the big 'RESET' coming...  any day now...

There will NOT be a 'Jim Willie' Reset (he started the reset talk)

The Central Bankers will keep on doing what they are already doing...  QE infinity

Faced with economic disaster...  What will they do ???

    A 'Jim Willie' RESET or print moar money ???  (you know the answer)

It ends in slow miserable stagflation...   Japan style

    - rampant inflation - already happening - not reported

    - worsening quality-of-life and societal breakdown - already happening

In reply to by alurker

EddieLomax Yellow_Snow Sat, 07/28/2018 - 18:09 Permalink

Yep, when you know that a debt implosion will kill the world economy then its obvious they'll just print.

The only real unexpected threat would be if the dollar lost its value as a currency, if that happened then no amount of printing would help and we'd have a real crises, until then all the fiat currencies can paper over the cracks.

In reply to by Yellow_Snow

Scipio Africanuz EddieLomax Sat, 07/28/2018 - 22:42 Permalink

Perhaps you misunderstand, the analogy to apply in this situation, is that of driving and gas availability. Consider what happens when you run out of gas in a city, assuming you have money, you simply stop by a gas station with the car, or take a container to go buy gas, assuming you can pay for it.

What if you can't pay?

Now, consider if you ran out of gas in the middle of nowhere? Well, you might hitch a ride to the nearest gas station, to buy the gas, again, assuming you can pay for it and if you can't? Then what?

Now, consider it was in the middle of nowhere, and you're trying to hitch a ride, but have developed the reputation of being a murderous psychopath, who's gonna stop to give you a ride, considering you might rob, and kill them?

Now, consider the event happened in the city, and you have that same nasty reputation, what do you think gas stations will do, on sighting your approach?

Now, consider that while you may have run out of gas, other drivers are similarly close to running out of gas, wouldn't there be a stampede to lock down available supplies of gas, to prevent running out of gas? In such a situation, what might happen?

Now, consider the situation from the perspective of gas stations, or gas suppliers. Knowing there's a looming gas shortage, and knowing dangerous psychopaths, thirsting for gas are on the loose, what do you think might happen to the availability of gas, and in case some suppliers are brave enough to supply it, the price of gas?

Now, consider things from the perspective of passengers in the vehicles, who paid the drivers to convey them, what might they do, if drivers where to inform them, sorry, we're out of gas, can't go any further?

Now, consider the situation soberly, if the expectant loved ones of the passengers don't see their loved ones, as at when due, what might then happen?

Finally, consider what might set off this non-linear sequence of events, and realise soberly, and fearfully, why global cooperation, and stability, is absolutely necessary, to prevent existential apocalypse, and then understand why ideologues, deluded power mongers, and sabre rattlers have to be cautioned strongly, to quit the shenanigans!

They're playing with unquenchable fires!...

In reply to by EddieLomax

Is-Be Yellow_Snow Sat, 07/28/2018 - 18:26 Permalink

Japan is doing just fine, thank you.

What are they doing right?

  • Their population is shrinking
  • They've abandon the "Growth at all costs" mantra
  • The spend less than 1% of their GDP on military trash
  • They refuse to enjoy the raptures of "diversification"
  • Their population shares common values of cleanliness and civility, while tolerating their own brand of quirkiness
  • And lastly, and this is the Biggie, they are only notionally Monotheistic. 

In reply to by Yellow_Snow

GooseShtepping Moron Herd Redirecti… Sat, 07/28/2018 - 22:22 Permalink

Debt jubilees are absolutely pointless and ridiculous. There is no conceptual difference between a jubilee and QE. A debt jubilee would just monetize all outstanding debt in one brilliant moment rather the slow drip of money printing by the central banks. It's unbelievable to me that there are people here who despise the one while praising the other to the hilts when they are essentially the same thing.

The problem with the debt is NOT the nominal number of trillions outstanding. That is confusing the debt print with the debt itself. The problem with the debt is the fact that it represents consumption already pulled forward, resources already used, wealth already dissipated. Writing down the debt print, which is essentially all a jubilee is, does nothing to replace that lost wealth. Neither does QE or any other accounting gimmick.

The only thing that can actually liquidate the debt is a whole bunch of hard work and savings. No matter what else happens, Say's Law remains in effect. You cannot get something for nothing and you cannot consume what hasn't been produced.

In reply to by Herd Redirecti…

Endgame Napoleon TRN Sat, 07/28/2018 - 15:51 Permalink

Politicians are going to protect the top 20% because that is where most of them, most of their cronies, most of their progeny and a large portion of the likely voters reside. They will try to dump as much of the pain on citizens who do not have children as they can, giving individual citizens far fewer .gov blankets. They would like to burden mostly the non voters who do not control their career longevity, but since most of the non voters have so little to lose, they will mostly be hurt by the fallout from inflation and an even worse job market for the citizens whose wages are not buttressed by layers of monthly welfare and progressive-tax-code pay boosters up to $6,431 from the US Treasury Department that reward the womb-productive sex of some citizens and noncitizens. 

In reply to by TRN

Ham-bone Free This Sat, 07/28/2018 - 17:50 Permalink

Chris is trying...but he just doesn't see how big this is.  Not just a business or credit cycle but a 180 degree turning point for mankind.  How this plays out is simply unknown as we have never gone through something like this.

In reply to by Free This

silverer Free This Sat, 07/28/2018 - 18:53 Permalink

The banks and the credit system, a product of abuse for many years, is now going to take it all down. I watched a good video of a math prof showing why the system had to come down. To prop it up and dig out of the 21 trillion dollar hole, it would require 16 years straight of 8% annual GDP. Guess what? Ain't gonna happen.

In reply to by Free This