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.
bfl
I bought a 16” solid 14k gold rope chain, diamond cut, in 1979 for $210. I’ve seen similiar chains from American sellers going for about the same on Ebay tonight.
For the past four years I’ve been buying 14k and 18k yellow gold vintage charms and bracelets in anticipation of the coming economic collapse.
I’m now having to sell to pay bills. So far I’ve been selling for more than I paid originally, but I don’t know how much longer that can last.
Haha, I calls ‘em as I sees ‘em, we live in hyperbolic times! ;-)
I agree. I went on a trip last year, and bought my airline tickets with a credit card. The purchase went fine, and I received no call. Fortunately, it was just a weekend trip, and I was travelling with friends, AND we brought cash with us, because they had shut off my credit card, without even calling and telling me. I went into my bank (local Credit union, actually) about a week or two after I got home and they let me know why they shut off my account (because I had purchased the airline tickets with the credit card, over the internet). One of my friends uses the same credit union, and they did not shut off his DEBIT card used on the same trip (mostly used to buy our outrageously priced meals on the long airplane trips, and for the public transportation tickets at our destination, so no pin number was used), just my credit card used to buy our tickets. That seemed odd to me. (But I have heard that debit cards don’t have the same fraud liabilities, so maynbe they didn’t care as much?)
“which for them we have “white” gold which looks like silver...keeps them happy.”
And it doesn’t have to be polished as often!
bfl
Because the German Parliament attached conditions and laws to the increase in funding that effectively mean this is the last trip to the well. Merkel won’t be able to engage in many other “stabilization” schemes without a vote from either the parliament or a general vote of the people.
Remember, the German people were never given a vote on the Euro or integration into Maastrict. It was just shoved down their throats. Other nations got a vote.
Now that bit of political high-handedness is coming back to bite the Euro project in the buttocks.
1 of 3 - Must hear Ann Barnhardt interview - http://www.barnhardt.biz (link in info bar)
They didn’t ‘reach into’ your terminal. They didn’t return an authorization code which the terminal was waiting for.
That said, the banks and now the govt do have real time access into our accounts. Unless you pay cash they can watch your account and see where you spend your money.
I'm a bit more worried that #1 is Soros.
Who's selling? With high prices, the supply and demand would show supply is smaller than demand which means they're holding on to it. Certainly, it's sell high and buy low but these days you need to keep a larger cushion. It's probably the little non-prepper guy cashing his in more so than the big guys. The big guys might be portioning out a small percent of their holdings for investment purposes but are holding the majority.
I think you nailed it. If it's debit and someone gets the number and wipes out your account, you're the loser, the bank is not responsible.
What's alarming is the amount of control they have and how easily and quickly they can implement it.
If they can do it......
My kids are in some respects, children of technology. They use their debit cards without hesitation. I don't have one. I encourage them to use only cash but they just roll their eyes and make excuses.
Besides, when you see the cash leave your hand, it's going to put a bigger brake on the spending than constantly debiting everything.
OR,
Convert them to nickels:
I have a check card from my bank. I never use it as a debit card, I only process it as a credit card via Visa. It’s still debited from my checking account, but Visa processes it and that gives me the same fraud protections as a regular credit card.
I see, so then our company terminal is set up to freeze the transaction should their be a denial...not their bank.
I agree things are pretty much set for the Anti-Christ to control internet transactions when his time comes. The Nations are certainly in motion on the World Stage for his arrival. But I also consider we learn about happenings at a much faster pace then years ago so events appear to be occcurring at a faster pace. Even so, it is an interesting time to observe how true to Gods word things are developing.
Our company tracks your purchases anytime a credit card is used...and many companies do that as well.
Bookmark
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.