Unprecedented Financial Storm of Unknown Scope is Engulfing Us

If you thought the global financial crisis of 2008 was difficult, wait till the sequel comes to your doorstep…An unprecedented financial storm of unknown scope and dimension is upon us…there is a civilization-scale catastrophe taking place and there will be little or no recovery from it for as far as the eye can see into the future. Words: 1450

So says Mark Sircus (http://blog.imva.info/)   in edited excerpts from an article* which Lorimer Wilson, editor of www.munKNEE.com (It’s all about Money!), has further edited ([  ]), abridged (…) and reformatted below  for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement. Sircus goes on to say:

[Below are what a number of other commentators have to say about the world's current economic/financial situation (and particularly that of the U.S.) and what the future holds. Are you sitting down?]

1. John Rubino writes, “For a couple of years now it’s been clear that the world was about to fall apart, with the only question being which local failure turns out to be the catalyst for a systemic breakdown. So many things were on the verge of blowing up… yet none of them did. The world’s governments have engaged in a heroic period of “extend and pretend” that has kept the system together longer than seemed possible but now the game seems to be ending. It’s still not clear which bomb will go off first, but a bunch of fuses have gotten very short indeed.”

2. Bruce Krasting writes in his essay, “Are the credit markets getting unstable? “In the past week the ten-year interest rate increased by 12%. That is a monster change. This equates to 2,000 Dow points or 240 on the S&P.  If that trend continues, the fuse will light the powder and western civilizations financial system will come down hard”...

3. Ron Holland writes, “Today we find the United States and most of Europe in a similar situation. We risk an eruption and collapse of the mountain of unsustainable sovereign debt built up over the last two decades. Frankly, the U.S. dollar and national debt situation is so dire and our means to contain a sovereign debt crisis so limited by multiple wars [that, coupled with] Washington’s debt and political incompetence at home, anything could happen—almost overnight. Even a minor foreign policy or economic event like a Greek default or Middle East crisis could wreak havoc with the precarious interlocking sovereign debt pyramid in the West. American and most European governments and the central banking elites, which created the criminal sovereign debt fiasco, are only trying to buy more time to delay the inevitable. This inaction means the threat of an immediate U.S. dollar collapse cannot be ruled out. Therefore, readers who have not protected themselves certainly have cause to worry because now could be too late.”

4. Tyler Durden reports that, “We are now only 60 days from the need of the United States government to fund half a trillion—467.4 billion to be exact—dollars of debt. This is the amount of debt that matures through August 31 and has to be rolled over or the U.S. is bankrupt… in every sense of the word. Treasury must “roll over” almost $500 billion in debt that matures during August 2011. New debt is issued and the proceeds are used to repay the maturing debt plus interest due. Treasury will require market access throughout August to avoid defaulting on maturing debt. About $380 billion in short-term T-bills maturing, plus $90 billion in long-term securities.”

5. GEAB writes that, “The free market is dead and we have all arrived at a sort of involuntary socialism where the largest banks rape and pillage everyone else. At the start of the second half of 2011, with a global economy in complete disarray, an increasingly unstable global monetary system and financial centers in desperate straits, all this despite the thousands of billions of public money invested to avoid precisely this type of situation. The insolvency of the global financial system, and of the Western financial system in the first place, returns again to the front of the stage after just over a year of political cosmetics aimed at burying this fundamental problem under truckloads of cash.”

 6. Silver Shield says, “The dollar collapse will be the single largest event in human history. This will be the first event that will touch every single living person in the world. All human activity is controlled by money. Our wealth, our work, our food, our government, even our relationships are affected by money. No money in human history has had as much reach in both breadth and depth as the dollar. It is the de facto world currency. All other currency collapses will pale in comparison to this big one. All other currency crises have been regional and there were other currencies for people to grasp on to. This collapse will be global and it will bring down not only the dollar but also all other fiat currencies as they are fundamentally no different. The collapse of currencies will lead to the collapse of ALL paper assets. The repercussions to this will have incredible results worldwide.

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Those areas that have lived highest on the hog in the dollar paradigm will most likely be the worst places to live when the dollar collapses. We will not be as fortunate to muddle through this collapse like we did in 2008 when it was a corporate problem. This time around, it is a national and global problem. The global Ponzi scheme has run out of gas as the demographics decline, as cheap abundant oil declines, as hegemonic power declines.”

7. Peter Yastrow, market strategist for Yastrow Origer, told CNBC, “What we’ve got right now is almost near panic going on with money managers and people who are responsible for money. We’re on the verge of a great, great depression. The Federal Reserve knows it and there is nothing they or anyone can do to stop it.”

8. Jim Sinclair writes,“If you think that the banking system of the western world is strong enough to guarantee the debt of the western world, you’re totally out of your mind. That’s the reason they’ll do everything possible to paper over the Euro crisis to prevent the defaults in order to prevent another crisis in banking that definitively would occur, that absolutely would occur from a default. This fact is ravingly positive for gold. You would have a complete collapse of the western banking system if Greece goes down.”

Conclusion

The world’s financial system is hanging by its teeth and the entire western world is ailing from debt overdosing. What we have been experiencing these past decades is roaring prosperity compared to what is coming down the road. As the economy collapses life is going to get very strange; our problems and the chaos are going to get a lot worse.

*http://blog.imva.info/economics/collapsing-financials

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2. Telling it Like It Is: Monetary Policy, the Federal Reserve, and the National Debt Problem http://www.munknee.com/2011/06/telling-it-like-it-is-monetary-policy-the-federal-reserve-and-the-national-debt-problem/
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Editor’s Note:

• The above article consists of reformatted edited excerpts from the original for the sake of brevity, clarity and to ensure a fast and easy read. The author’s views and conclusions are unaltered.
• Permission to reprint in whole or in part is gladly granted, provided full credit is given as per paragraph 2 above.

Economy

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