Ouch, that hurt, no don’t cut that, oh can you stop that please it is starting to hurt bad. Like the TV show on Spike that provides details on a thousand ways that a human can die, today the economy of America and the world are dying a slow death by a thousand cuts. It is hard to imagine a more slow and painful way to die, lingering for years, while you are slowly cut to death, a few slices here and there, some infections start, every-time you get one cut to heal, another happens, then several on top of the scar tissues from others. Finally after years of grueling pain your body gives out and you bleed out, dead.
I believe this is the best example today of what is happening right before our eyes to our economy. I could go back to 1913 and the formation of the Federal Reserve as the first large gash, followed by the written plan of a debt based economy, fractional banking, all the way up to 2008 with the trillion dollar banker bailouts, the housing bubble, and let us not forget those wonderful stimulus plans with the signs on the highway’s across America that are still up today to remind us what idiots we have in power. However remember, we have no one to blame but ourself’s, our parents, our grandparents, and our great-grandparent’s. The question is now are your children going to be screaming at you for doing nothing today?
I want to take a moment and summarize some statements coming from banking and political leaders in the Unites States and the World over the past week. That is right all the comments listed below have taken place in the last week. I imagine that most of F&S readers have heard at least some of them, but all of those whom still rely on the main stream media are 100% unaware of these incredible warning signs that are being given today, RIGHT NOW! I understand, you have been telling people about what is coming, and they just roll their eyes, they laugh at you, mock you, and tell you what a conspiracy nut you are. TELL THEM AGAIN, please, keep telling them, show them this article, pull up other facts, keep trying, just keep trying. While the cuts are happening, it is not just to you and me it is happening to all of us, and while you can feel them and see them, others can not. Unfortunately it will be the thousand cuts that kills us all.
In an absolutely startling report, the World Bank revised GDP growth estimates for 2012 downward very sharply, warned that Europe could be on the verge of a devastating financial crisis, and declared that the rest of the world better “prepare for the worst.”. Obviously things have gotten bad enough that nobody is even really trying to deny it anymore. Andrew Burns, the lead author of the report, said that if the sovereign debt crisis gets even worse we could be looking at an economic crisis that could be even worse than the last one: “An escalation of the crisis would spare no-one. Developed- and developing-country growth rates could fall by as much or more than in 2008/09.” Burns also stated that the “importance of contingency planning cannot be stressed enough.” In other words, Burns is saying that it is time to prepare for the worst.
Well known economist, trend forecaster and Gloom, Boom and Doom Report publisher Dr. Marc Faber joined some of the world’s leading investment minds at the Barron’s 2012 Roundtable to discuss what’s in store for 2012 and beyond with respect to the economy, inflation, political stability and a host of other issues.
As is generally the case, Dr. Faber doesn’t mince words and warns that, despite what happens in the near term, the end game is global conflict.
Marc Faber: On another optimistic note, World War III will occur in the next five years. That means the Middle East will blow up. New regimes there will be less Western-friendly. The West has also figured out it can’t contain China, which is rising rapidly and will have more military and naval power in Southeast Asia. The only way for the West to contain China is to control the oil tap in the Middle East.
Bill Gross (Founder, Pimco): How does your World War III hypothesis affect the financial markets? Is it positive for stocks?
Marc Faber: It is very positive for stocks and negative for bonds, because debt will grow dramatically. There will be massive monetization of debt. When the U.S. entered World War II total credit equaled 140% of GDP, and there were no unfunded liabilities. Now total credit-market debt is 380% of GDP, and unfunded liabilities make that 800%.
Brian Rogers (Chairman, T. Rowe Price): How is World War III good for stocks?
Felix Zulauf (Zulauf Asset Management): Unused capacity in an economy can be directed to the defense and war industry. That will be paid for by new government debt, and that keeps the economy growing.
Scott Black (President, Delphi): Marc, if Israel strikes Iran’s nuclear facilities, they will use air power. They aren’t going to commit ground troops. It won’t be the kind of conflagration you’re thinking.
Bill Gross: War takes place today in cyberspace and in terrorist space. Whether or not there will be a land war isn’t the question.
Dr. Faber has also expressed his views on prior occasions, suggesting that World War III is an inevitable outcome when nations begin to default on trillions of dollars worth of debt (whether by refusing to pay or simply easing their monetary supply).
-John Mauldin, president of Millennium Wave Advisors: “We’ve got a cancer. That cancer is debt”
-Mark Spitznagel of Universa Investments: “Too much malinvestment has been kept alive, and history shows an inevitable wipeout, which started in 2000.”
-Michael Panzner of Financial Armageddon: “The fundamental outlook is even worse now than it was a few weeks ago, given (the lack of positive) developments in Europe and growing evidence that the economies of major countries around the world are deteriorating fast.”
At this point, almost everyone in the financial world is anticipating a Greek default of one form or another….
-Edward Parker, the managing director for Fitch’s sovereign and supranational group in Europe, the Middle East and Africa, recently declared that a Greek default is inevitable….
“It is going to happen. Greece is insolvent so it will default.”
-Moritz Kraemer, the head of S&P’s European sovereign ratings unit, made the following statement on Bloomberg Television on Monday:
“Greece will default very shortly. Whether there will be a solution at the end of the current rocky negotiations I cannot say.”
-Richard McGuire, a strategist at Dutch bank Rabobank, was recently quoted by CNBC as saying the following….
“People often ask if Greece is going to default which … is a misnomer because Greece is (already) defaulting”
-Diane Swonk, the chief economist at Mesirow Financial in Chicago, says that the default by Greece will probably be an “orderly” one but that the situationcould change at any moment….
“It appears at the moment that the market is accepting a Greek default as inevitable, and it will be an orderly default. But that can change on a dime.”
Need I remind you that on top of all this our President just said he would raise the debt ceiling to $16.4 trillion dollars, which our congress granted him the power to do so back in September 2011, (so much for the tea party revolution). Who could forget the “Super Committee” would figure out how to cut 1 trillion dollars in debt. Just in case you missed their press conference one day before thanksgiving it went something like this, ” we can not agree on what to cut so we are not going to cut anything, enjoy your holidays, the committee’s work is done”.
With all of the above lets us not forget MF Global, and there $500 billion dollar bankruptcy in which they stole money directly from over 100,000 clients personal accounts. When the true rush for the exits comes do you think your accounts are safe? Oh yes, of course you do because every time you walk into your local bank branch you see that reassuring sign of FDIC insured to $100,000.00. Psst, the government has no money in that insurance account, none, zero, it went dry in 2008 and has not been re-funded.
How many cuts are we at now? I would say we are writhing in pain at about 950, with the most painful 50 to go. It could be a psyco like slicing from the likes of hollywoood actor PIN -HEAD that finally does us in, or we could just be slowly cut for another year, or two or five by a rusty box cutter, but I guarantee you those final 50 cuts are coming.
- Marc Faber: US Credit Ratings Should Be Lower (wallstreetpit.com)
- Warning Signs That We Should Prepare For The Worst (whitelocust.wordpress.com)
- Marc Faber’s 2012 Predictions (lewrockwell.com)
- Is World War III on the Verge of Breaking Out? (mercuryreliance.wordpress.com)
- Marc Faber: 2012 could see a major low in emerging markets (investmentpostcards.com)
- How Long Can the Endgame Be Postponed? (lewrockwell.com)
- World War III and economic disaster! Oh what fun…. (disclose.tv)
- World Bank: grim and grimmer (3eintelligence.wordpress.com)
- World Bank warns of more global economic turmoil ahead..IMF running out money (seeker401.wordpress.com)
- World Bank Warns Developing Nations of Slowing Growth – New York Times (nytimes.com)
- World Bank: We’re on the edge of a new GFC (petermartin.com.au)
- Developing world warned of shocks (bbc.co.uk)
- World Bank crisis alert (theage.com.au)
- World Bank Wednesday – Another Trillion Isn’t Enough? (philstockworld.com)
- World Bank warns of global recession (guardian.co.uk)
- Coming: Our Greek Moment (lewrockwell.com)
- As the Debt Based Economy Collapses a Real Economy Needs to Emerge (ibtimes.com)
- ‘Real risk’ of another crisis, World Bank warns (business.financialpost.com)
- IMF Says 2 Year “Funding Gap” Hits $1 Trillion (zerohedge.com)
- US Economy “on the Brink of Collapse” (whitelocust.wordpress.com)
- Bud Conrad: U.S. Collapse Predicted (citizeneconomists.com)
- David Wilcock – FINANCIAL TYRANNY: Defeating The Greatest Cover-Up Of All Time – Section Four: The Occult Economy – 16 January 2012 (lucas2012infos.wordpress.com)
- 2012 United States/World Economic Predictions (yeyoungeconomist.wordpress.com)
Filed under: Economic Collapse, National Blog · Tags: armageddon, cnbc, congress, debt ceiling, economic collapse, economic predictions, faithandsurvival, federal reserve, marc faber, mf global, obama, president obama, S&P, stimulus plan, super committee, world bank