Financial Professionals Sounding The Alarm, Economic Disaster Is Coming
November 28, 2011, Submitted by: Ken Tweet
You don’t have to search very far beyond the main stream to find lots of meaty articles about the dire economic straits we’re in – a world sinking in enormous debt of fiat currencies. A corrupt banking system swimming in 600 trillion of unregulated derivatives, an unimaginable staggering sum.
The reality is that we are getting much closer to a trigger event of an economic disaster, a domino effect of toppling systems, while at the same time we hope for miraculous resolutions.
This thing will begin in Europe.
British ministers privately warned that the break-up of the euro, once almost unthinkable, is now increasingly plausible.
Diplomats are preparing to help Britons abroad through a banking collapse and even riots arising from the debt crisis.
Diplomats have also been told to prepare to help tens of thousands of British citizens in eurozone countries with the consequences of a financial collapse that would leave them unable to access bank accounts or even withdraw cash.
Source: The Telegraph
With fiscal time bombs ticking in both Europe and the United States, the pertinent question for now seems to be which will explode first.
the U.S. is crystal clear in its intention to ignore its debt problems. With the failure of the Super Committee this week it actually became official. American politicians will not, under any circumstances willingly confront our underlying debt crisis.
Source: Financial Sense, Peter Schiff – Who’s Fuse is Shorter?
Is the world on the verge of another massive global financial collapse? Yes. The western world is drowning in an ocean of debt unlike anything the world has ever seen before, and our financial markets are gigantic casinos that are dependent on huge mountains of risk and leverage remaining very stable. In the end, this house of cards that has been built on a foundation of sand is going to come crashing down in a horrifying manner.
Most people out there are working hard and are busy preparing for the holidays and they are hopeful that the economy will turn around soon. But that is not going to happen. We are heading for another major global financial collapse, and when it happens the U.S. economy is going to get even worse.
The epicenter for the coming global financial collapse is almost certainly going to be in Europe. As you will see below, financial professionals all over the world are sounding the alarm about Europe. It is a disaster that everyone can see coming but that nobody seems to be able to prevent.
Source: The Economic Collapse – 17 Quotes About The Coming Global Financial Collapse That Will Make Your Hair Stand Up
Alf Field: I have come out of retirement for this one off, once only, speech to warn that the good ship “Life As We Know It” is sinking. You have the choice of getting into a life boat now or going down with the ship.
The following are the brutal truths that the modern generation will have to face as the U.S. and the rest of the world deals with the ongoing global financial crisis:
- The slate needs to be wiped clean and a new sound monetary system introduced.
- That will require the elimination of all debt, deficits, unfunded social entitlements, the US Dollar as Reserve currency, and the big one, the $600 trillion of derivatives.
- To eliminate these problems by default and deflation will cause a banking collapse and untold economic pain, leading to riots and political change.
- Politicians are appointed for relatively short terms and opt for the easy solutions.
- While politicians continue to have the ability to create new money at will, they will do so in order to prevent a melt down on their watch.
- Consequently the odds point to governments wiping the slate clean by generating enough new money to eventually destroy their currencies.
- The new international monetary system is likely to involve precious metals. It will have to be money that people trust and that governments cannot create at will.
Every experiment with government issued fiat money has ended with the destruction of that money. There is no reason to believe that it will be different this time. The world’s 40 year experiment with floating ‘I owe you nothing’ fiat currencies is coming to an end.”
Source: Financial Sense – Alf Field is Back
Eighteen months into a sovereign debt crisis — and after many futile efforts to resolve it — the endgame appears to be fast approaching for Europe.
While its leaders may well hold to the current path of offering piecemeal solutions, nervous investors are fleeing European countries and banks.
American financial institutions are also at risk [to European crisis]. According to the Institute of International Finance, they have $767 billion worth of exposure through bonds, credit derivatives and other guarantees to private and public sector borrowers in the euro zone’s weakest economies.
Source: The New York Times – Time Runs Short for Europe to Resolve Debt Crisis.
What can you, Joe Citizen, do about it? Get your money out of banks that may implode. Consider a credit union, or at least check the strength of your bank (there are a number of online resources for this). Keep an amount of cash at home. Be ready to survive a ‘bank holiday’, a period of time when the banks are closed and you cannot withdraw money. Be prepared for events of social unrest should a collapse occur.
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@ Ken, You Go! Cutting edge; on the curve or ahead of it… My it’s hard it get folks to see what is so in their face. Look at the changes around the world… Look @ a Minion like MF Global… The wide open economics ( which I miss as far as the recent lack of usd, djia, gold, & silver Quotes. I did bookmark so not to worry… ) Oh, I just looked @ the recent posts and without reading the complete statement I see you are Fired Up. Looking for the next auspicious timing for the 2,000,000 hits mark… Thanks for keeping the count posted… Best to you & yours… Survive-as always…”O”…
Look at what is in this article, 600 trillion in derivatives, that is more than 1/2 quadrillion dollars. That is that in the trillion mark, this is a number that people do not even comprehend at all, its very name (quadrillion) is something that seldom is spoken about because it is so ridiculous high. 600 trillion miles for example is almost 100 light years. Think about that for a second. 600 trillion miles will take light 100 years, a whole century to travel. This is how absurd 600 trillion is.
Derivative is defined as items reflecting the rate of change of a function. This in itself is frightening as other names for derivative is tangent, slope, differential, gradient. In other words that little 600 trillion could balloon into the quadrillion range because there is really nothing to prevent it from doing so. Slope right down to total collapse of the western civilization. Money that has absolutely nothing to back it, Monopoly money, toilet paper.
You watch one of these Christmas specials with stop and go animation and puppets called Jack Frost in which the town’s people waited each year for the land to freeze over so they could create ice currency. For a long time I thought this was insultive to the mentality of young children, but when I see the present day debacle of today’s finances I question even that now. Literally it might be better if individual cities or counties started to print their own currency to be used within the confounds of an area to engage in transactions. I know this is illegal, but it might work a lot better than what is going on now.
When Ken posts these new articles it shows everyone that the end of something is coming, this cannot continue before imploding. It reminds me of this Twilight Zone episode in which these idiots in a town started selling and buying real estate back and forth like tokens being exchanged. The prices went higher and higher until everyone THOUGHT they had made a fortune until the county tax bills came and everyone went bankrupt. The whole world markets are being played like some casino game and evnetually the fiddler will come to be paid and then look out.
Your only real asset if and when it collapses will be real tangible goods like food, fuel, firearms, ammunition, maybe precious metals if the fall is not into a Jericho TV series type, and other supplies that people can actually use. Everyone’s plastic credit cards and all this ghost money will be totally worthless. Ken is so correct when he says be ready, because it is coming, hard times are on the way.
Find your problem banks here:
Just because this list shrinks in number does not mean that there are less…in fact there are many, many more.
http://www.calculatedriskblog.com/2011/11/unofficial-problem-bank-list-increases.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+CalculatedRisk+%28Calculated+Risk%29
Stay away from ANY bank. Use a credit union, or better yet: Cold Hard Cash.
And buy gold if you want to keep any sort of standard of living. The financial ponzi fiat collapse is underway. There is simply too much debt, unsustainable, no way out.
@Travis, Thanks for the ‘problem bank’ list. Your other statements are right on…
The economy is on a double edged sword right now. With the stock market soaring today on the after Thanksgiving Day sales, there is a dire indication of what is to come. A bleak sales report would have indicated that reatilers are in deep trouble, didn’t happen. A bumper crop of sales means that people went out and spent money that they probably did not have, using you guessed it, CREDIT CARDS. Old habits never die, and the cycle and pattern begins, again. IF people went out and spent cash money, or checks, debit cards, money that started out in the black positive note, then I would say this is good news about black Friday sales.
When people spend money they don’t have this all adds to the debt ceiling soon to be breached. People go out and attempt to get good deals, and unless they pay off the money charged to their credit accounts, that good deal drops in value each interest owed monthly debt payment. You save 50% on merchandize, but lose a percentage each month of that 50% that you fail to pay off the debt with the compounding interest. Eventually that super deal becomes more expensive, because of unpaid principle and interest on a credit card, than the original price.
Those that took advantage of super deals to purchase items with money you actually had, and items that have practical use, two thumbs up! Those that actually took to the stores and got super deals on survival items like Ken has suggested on the site, you have made Ken proud, and deserves a double thumbs up.
This would be interesting to those out there. Did anyone get some super deals on survival items with the weekend sales? This would be a positive bit of news as opposed to the awful shape of the world and U.S. economy.
The economy is going to collapse. It could be a slow motion collapse with new bad news every day for weeks/months or you could wake up one day over a long weekend to the news that the government has declared a bank holiday and find out on Tuesday that the entire world has changed and your money was devalued and when the banks do finally open all the rules have changed and the new rules really suck. We may see this in Europe first but who knows.
I agree. This collapse may continue in slow motion as it is now. I hope so, because that provides more time to be prepared. On the other hand, given today’s speed-of-light worldwide spider-web of economic dependencies, I am concerned that it could also happen rapidly. As we saw today, the FED working with other world money suppliers, will continue to pump digital money into the system to keep the world banksters (and the bankster system) afloat – so at least that in itself will keep the train wreck in slow motion for awhile longer, while our currencies devalue further and further.
It’s almost laughable that the market goes up 800 points in two days because they “fixed” the European problem. They just keep kicking the can down the road. We’re in worse shape than Greece and people are concerned about Europe, LOL!!!!!! I see the ride coming to a screaming end early in 2012. We will muddle through the holidays hoping for the best as indicated above but when the euphoria of Christmas is over the grim reality will be so obviously apparent that it will not and cannot be denied and no country will be spared. I see it (the economy) unrolling slowly, as it has been, and then by mid spring gaining speed and a significant financial crisis fomenting (if not an out and out collapse) by mid summer. If there are riots in the streets would BHO have the audacity to declare martial law to “cling to power” that he will not be able to legitimately hold onto if the election takes place? What social and moral equivalency would he use to justify taking over the nation. Just saying!! Got no crystal ball but there are a myriad of potential social problems that a financial crisis or collapse could cause. You should have all that BI said, plus you should have some thousands of dollars (if you have it) in 10s, 5s, 1s, and lots of change. Not to be contrary for the sake of it but I would also make sure that I had PMs of some sort. You should at least have some “junk silver” (pre 1965 dimes, quarters, halves and dollars). I would recommend at least a few hundred dollars, “face value” of junk silver (rolls of dimes and quarters seem best). I hear people say that you can’t eat gold and silver, what good is it? Well, you can’t eat FRNs, ammo, guns, etc. But you can use those things to get food, and the discriminating barterer will be looking for silver and gold. I have a lot to barter and anyone with sterling silver (90%), silver eagles and gold move to the head of the line. I would have to say that if the flag drops fast or slow that the sporting goods store will be out of everything and that the NG troops would have already stripped the armories clean if that is the case. Not that I wouldn’t look, just in case, but I wouldn’t waste a lot of energy on it. The medical supplies and aligning yourself with a Vet., MD, nurse practitioner, PA, etc. would be/should be a priority relationship to develop. Fortunately the wife mate is an OR nurse. Not to be a doomsdayer, but 2012 looks like the year for TSHTF. On a positive note, it will pass, but how well it passes and how well you come through it will depend on your planning and preps. Good luck to all.