Posted on 06/01/2012 7:53:15 PM PDT by TigerLikesRooster
'Beware a rerun of the Great Panic of 2008': Head of World Bank warns Europe is heading for 'danger zone' as world markets suffer bleakest day of the year so far
Robert Zoellick: 'Far from clear leaders ready for impending catastrophe'
Raft of dismal news from around world wreaked havoc on market
Manufacturing output crashed in Britain, jobless up in Europe and U.S.
Fast-emerging economies such as Brazil and China running out of steam
By Hugo Duncan
PUBLISHED: 15:49 GMT, 1 June 2012 | UPDATED: 22:52 GMT, 1 June 2012
The head of the World Bank yesterday warned that financial markets face a rerun of the Great Panic of 2008.
On the bleakest day for the global economy this year, Robert Zoellick said crisis-torn Europe was heading for the ‘danger zone’.
Mr Zoellick, who stands down at the end of the month after five years in charge of the watchdog, said it was ‘far from clear that eurozone leaders have steeled themselves’ for the looming catastrophe amid fears of a Greek exit from the single currency and meltdown in Spain.
The flow of money into so-called ‘safe havens’ such as UK, German and US government debt turned into a stampede yesterday.
In Berlin the two-year government bond yield fell below zero for the first time, with the bizarre result that jittery international investors are now paying – rather than being paid – for lending to Germany.
There was a raft of dismal economic news from around the world, with manufacturing output falling in Britain and Europe, unemployment jumping in the eurozone and America, and fast-emerging economies such as Brazil and China showing signs of running out of steam.
(Excerpt) Read more at dailymail.co.uk ...
Freeze dried soup? Got a link?
Trouble with Switzerland is that we Yanks cannot get in to stay. They are very tough on immigration. And it’s expensive as hell.
I’m just not that enamored with the idea of fleeing, unless circumstance literally forced it. It’s a semirural area just outside a midsize sourhern metro area here, farmers abound, most grow a garden and I’m related to half the county. So, I’ll stay put.
Family’s been here going on 300 years and Virginia before that, through oppression of religious dissenters, the frontier era, indian attacks, the Revolution, the Civil War, Reconstruction and the Great Depression. We’ll survive this, if indeed a catastrophic economic collapse is as baked into the pie as it appears to be.
If I were less situated, less certain or less attached, I’d be wary of making myself obviously “other,” as far as evaluating a potential refuge. Breakdowns aren’t pretty, and all manner of barbarity rears its head, I know I’ve heard enough old family stories to understand that.
Seek to blend in wherever you end up going, if you do. The scapegoaters won’t have you top of mind if and when it hits the fan.
What makes you say that? Germany is currently the only thing that’s keeping E.U. together at this moment.....
... because they’re EU.
Salve
If people think there is safe place to hide, they are wrong, only safe place is with God. In WWII at least were some safe places, like North and South American continents, now is no longer available. Unless you are somewhere deep in the ocean of UFO super secret base :}}}}}}}}
I don’t like wars, I hate them, but if doodu hits big fan, we are all in big trouble, no matter where you are.
Home is here temporarily anyway, but family and those you love is different story.
Merci.
In a liquidity crisis it’s the exact right response to avoid deflation.
Salve
Now wrealy, situation is getting out of control.
European countries are waking up to reality of nonsense giving to them for so long, as well nationalism is on the rise and old wounds are being open, which is very dangerous.
It is happening all around the world, something is just not in sync.
War is coming, either people like or not, it is. Humanity has reduced itself to slavery of nothingness and replace God with their idols.
Merci.
Trouble is, the liquidity is flowing into those few commodities with reliable demand and the rest is deflating anyway. Adding pain to misfortune, salt on the wound, insult to injury is how it appears from this vantage point.
I suppose an argument could be made that price uncertainty and supply constraint due to price in certain areas prevents the full blown onset of a deflationary mindset.
But food? That’s just evil.
If Obama is re-elected, all bets are off. It will not be pretty. I’m thinking of starting a “rat line” for refugee freepers.
“Actually, the thought of a vicious drug cartel rising up in Costa Rica among the native population is laughable. They are much too passive and laid back for that !!”
Interesting observation! I had no idea.
Food price increases are due to supply and demand unbalances not monetary policy.
From John Mauldin:
“Absent some new piece of data that I can’t see now, we are in for lower bond yields in the US. Rates are going lower and are going to stay low for longer than any of us can imagine.
I think the Fed will respond to the government acting in a fiscally responsible manner, which is inherently deflationary, by fighting that deflation with the only tool it has left; and that is outright monetization of debt. They will call it something else, of course, but that will be the actual outcome.
And they will be able to monetize more than you think they can without causing a repeat of the 1970s. Eventually it will catch up to us, as there is no free lunch, but they are betting they will be able to reduce some of the threat of actual inflation by cutting back on the money supply and raising rates. But we are years off from that. So, yes, at some point inflation will be back.
Anybody who says they know the timing is a lot more confident in his/her crystal ball than I am. Mine is rather cloudy on this topic. But I think I can see out a year or so, and it looks like continued low rates and deflation. By the way, just to appease the gold bugs among my readers, given my deflationary call, I will note in passing that solid gold stocks were up hugely during the deflationary Great Depression of the ‘30s. Even with the dollar on the gold standard. Just saying.”
Saw your question.
I just love these guys: www.waltonfeed.com
I have a mill and grain from them along with rice, beans, etc. My multi-grain bread is awesome.
They sell cans and buckets of food that will keep for over 20 years.
I bought most of my bulk supplies from Walton Feed, I love them!
Hans. Very tempting.
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