The Beginning Of The End
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12 Signs That Spain Is Shifting Gears From Recession To Depression

Where have we seen this before?  Bond yields soar above the 7 percent danger level.  Check.  The stock market crashes to new lows.  Check.  Industrial activity plummets like a rock and the economy contracts.  Check.  The unemployment rate skyrockets to more than 20 percent.  Check.  The bursting of a massive real estate bubble pushes the banking system to the brink of implosion.  Check.  Broke local governments beg the broke national government for bailouts.  Check.  The international community pressures the national government to implement deep austerity measures which will slow down the economy even more and hordes of violent protesters take to the streets.  Check.  All of this happened in Greece, it is happening right now in Spain, and mark my words it will eventually happen in the United States.  Every debt bubble eventually bursts, and right now Spain is experiencing a level of economic pain that very, very few people saw coming.  The recession in Spain is rapidly becoming a full-blown economic depression, and at this point there is no hope and no light at the end of the tunnel.

The bad news for the global economy is that Spain is much larger than Greece.  According to the United Nations, the Greek economy is the 32nd largest economy in the world.  The Spanish economy, on the other hand, is the 4th largest economy in the eurozone and the 12th largest economy on the entire planet.  It is nearly five times the size of the Greek economy.

Financial markets all over the globe are very nervous right now because if the Spanish government ends up asking for a full-blown bailout it could spell the end for the eurozone.  There simply is not enough money to do the same kind of thing for Spain that is being done for Greece.

Of course European officials are going to do their best to keep the eurozone from collapsing, but what they have completely failed to do is to keep these countries from falling into depression.

As I have written about previously, Greece has already been in an economic depression for some time.

I warned that Spain, Italy, Portugal and a bunch of other European nations were going down the exact same path.

Now we are watching a virtual replay of what happened in Greece take place in Spain.

Unfortunately, the global financial system may not be able to handle a complete implosion of the Spanish economy.

The following are 12 signs that Spain is shifting gears from recession to depression....

#1 At one point on Monday, the IBEX stock market index fell to 5,905, which was the lowest level in nearly ten years.  When it hit 5,905 that represented a drop of about 12 percent over just two trading days.  If that happened in the United States, it would be the equivalent of the Dow falling by about 1500 points in 48 hours.

#2 So far this year, the Spanish stock market is down more than 25 percent.  Back in 2008, the IBEX 35 was well over 15,000.  Today it is sitting just above 6,000.

#3 Spain has banned many forms of short selling for 3 months.

#4 The yield on 10 year Spanish bonds is now well above the 7 percent "danger level".

#5 Thanks to the problems in Spain, the euro continues to fall like a rock.  On Monday it hit a new two year low against the U.S. dollar, and it is near a twelve year low against the Japanese yen.

#6 During the first quarter of 2012, the Spanish economy contracted by 0.3 percent.  During the second quarter of 2012, the Spanish economy contracted by 0.4 percent.

#7 Local governments all over Spain are flat broke and need to be bailed out by the broke national government.  The following is from a recent CNBC article....

Adding to Madrid's woes, media reports suggested another half a dozen of Spain's 17 regional authorities, facing an undeclared funding crisis, were ready to follow Valencia in seeking aid from the central government.

#8 The percentage of bad loans on the books of Spanish banks has reached an 18 year high.  European officials have already promised a 100 billion euro bailout for Spain's troubled banking system, but most analysts agree that 100 billion euros will not be nearly enough.

#9 Spanish industrial output declined for the ninth month in a row in May.

#10 The unemployment rate in Spain is up to an astounding 24.6 percent.  The unemployment rate in Spain is already higher than it was in the United States at the peak of the Great Depression of the 1930s.

#11 The youth unemployment rate in Spain is now over 52 percent.

#12 The Spanish government has just announced a whole bunch of new tax increases and spending cuts which will cause the Spanish economy to slow down even more.  In response to these austerity measures, people are taking to the streets all over Spain.  Last week, 100,000 demonstrators poured into the streets to protest in Madrid alone.

Sadly, the nightmare in Spain is just beginning.

If the yield on 10 year Spanish bonds stays above 7 percent, that is going to be a really bad sign.  According to the Wall Street Journal, the 7 percent level is key as far as investor confidence is concerned....

Monday's dramatic market moves suggest Spain may be stuck in a spiral that culminates in a bailout from other euro-zone countries.

"The rise in the 10-year yield well beyond 7% carries a very distinct reminder of events in Greece in April 2010, Ireland in October 2010 and Portugal in February 2011," said analysts at Bank of New York Mellon. "In each case, a decisive move beyond 7% signaled the start of a collapse in investor confidence that, in each case, led to a bailout within weeks," they added.

So keep an eye on that number in the weeks ahead.

Meanwhile, the Spanish economy continues to get worse with each passing month.

So just how bad are things in Spain right now?

Just check out this excerpt from a recent article by Mark Grant....

Recently two noted Spanish economists were interviewed. One was always an optimist and one was always a pessimist. The optimist droned on and on about how bad things were in Spain, the dire situation with the regional debt, the huge problems overtaking the Spanish banks and the imminent collapse of the Spanish economy. In the end he said that the situation was so bad that the Spanish people were going to have to eat manure. The pessimist was shocked by the comments of his colleague who had never heard him speak in such a manner. When it was the pessimist’s turn to speak he said that he agreed with the optimist with one exception; the manure would soon run out.

That may make you laugh, but for those in Europe going through these horrific economic conditions it is no laughing matter.

On Sunday, Greek Prime Minister Antonis Samaras actually told former U.S. president Bill Clinton that Greece is already in a "Great Depression".

Like Spain, the unemployment rate in Greece is well above 20 percent and the youth unemployment rate is above 50 percent.

The only reason the Greek financial system has not totally collapsed is because of outside assistance, but now there are indications that the assistance may soon be cut off.

At this point there are persistent rumors that the IMF does not plan to give any more aid money to Greece unless Greece "shapes up".

Meanwhile, the suffering in Greece just gets worse and worse.

Sadly, most Americans pay very little attention to what is going on in Greece and Spain.

Most Americans just assume that we will always have "the greatest economy on earth" and that we can take prosperity for granted.

Unfortunately, the truth is that the United States already has more government debt per capita than either Greece or Spain does.

Just like Greece and Spain, we are also rapidly traveling down the road to economic oblivion, and depression-like conditions will arrive in this country soon enough.

So enjoy these last months of economic prosperity while you still can.

A whole lot of pain is on the horizon.

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  • Rodster

    The Greek PM yesterday admitted they were in the midst of a Great Depression. This is all going to end very badly for the rest of the world as has been mentioned many times in your articles. ;)

    • Rodster

      Nigel Farage predicted all of this when he told EU President told Jose Barroso and Herman Van Rompuy of the EU Parliment that this was heading their way back in 2010.

      Too bad liberals and socialists are too stupid to understand Nanny States don’t work especially when Unions demands along with government promises choke and kill economies.

      • Rowell

        I love listening to Nigel spout on. He cuts right to the bone, and tells it like it is. Wish we had more people in charge with his insight to the obvious (something most politicians completely lack).

        • Schwarzer Peter

          Nigel is the best! Watch him on YouTube: Nigel Farage, “The Genius of Mutual Indebtedness”

      • sharonsj

        The problem is not that they are “nanny states.” There are plenty of countries that take care of their citizens, like Canada, that aren’t in financial trouble.

        The problem is not taxing the rich and the multinational corporations enough so as to have the money to run the governments. At the same time their banks, in conjunction with our banks, are both insolvent as well as taking part in scams so that the money flows into the pockets of the CEOs. For example, money (credit) lent to Greece and Spain is gobbled up by various fees and interest rates, and not much is actually getting to the citizens of those countries. And then, to top it off, the middle class is on the hook for the debt.

        • Gary2

          Sharon you are exactly correct. Unfortunately the dolts who keep defending the 1% are so blinded by their ideology(and the fact that they are just plain stupid) that can not see the truth.

          We need to tax the rich hard and redistribute the wealth.

          Here is proof there is plenty on money in way too few hands:

          for all you stupid right wingers who say take all the rich money 100% and it will not help—you are wrong as usual

          Shock Report: Super-Rich Holding Up To $32 TRILLION In Offshore Havens

          http://www.huffingtonpost.com/business/

          Tax the rich and spread the wealth now.

          • mike Beale

            Hey Mr Muppet, how much of that offshore money belongs to Soros, hollywood types, and other hypocritical liberals? You mean Huffpo doesn’t go into that kind of detail? Why not?

          • DiscouragedOne

            Dolts? Do you know why Canada is doing so well? Obviously you don’t, they lowered their corporate tax rates, cut their spending and became more *gasp* Capitalistic.

            Ignorance is really not bliss.

          • tak

            gary2 do not believe the huff and puff post

          • Gary2

            tax the rich liberals also.

          • Kent

            How about we get out of the WTO and NAFTA all other free trade policies they are destroying our country. We manufacture all of our own crap instead of the ******* coming out of these third world countries. Tariffs, tariffs and more tariffs on all goods coming into the US. While we are at it get rid of the IRS and go FairTax. We were a far better nation prior to the IRS and the Federal Reserve a damn bank.

        • GSOB

          In response to sharonsj.

          Hello sharonsj,

          To quote you… ‘The problem is not that they are “nanny states.” There are plenty of countries that take care of their citizens….

          That’s total *********************.

      • Gay Veteran

        German unions are strong and the Germany economy was strong.
        Quit blaming the workers for the financial crisis created by the banksters.

        • DiscouragedOne

          I think both deserve blame.

        • Rodster

          Nope and sorry but I will keep blaming the union thugs for crippling the US auto industry. That’s why Asian car companies who now build their cars here in the US want no part of them.

          • LOLa

            “Crippling the US auto industry”? Then why are German car makers doing so well, despite much more unionization and employee benefits than here in ‘merica? No, the US auto industry did ITSELF in by greed, as the rest of US industry does, everyday.

          • Gay Veteran

            hey Rodster, the unions built the cars that MANAGEMENT told them to build

            where do you think the 40 hour work week came from? overtime? employer provided health insurance and pensions? UNIONS

        • OLdFART

          Public sector unions are a big part of the problem in USA. Too many make-work jobs.

  • markthetruth

    GREED GREED AND MORE GREED THEN THE GREEDY TAKE ADVANTAGE OF THE DISTRESSED AND IN THE END GREED WILL “DESTROY THE WORLD” BECAUSE MAN CAN NEVER BE SATISFIED “MARK MY WORDS”
    !!!!!

    THE END.

    • tak

      markthe truth very very well said

  • Pitchfork Ready

    I see the ECB firing up the printing presses and taking a que on QE from the Bernarke.

    This will land at Germany’s door: either suck it up and bail these countries out or have the ECB buy these countries bonds. But this can only forestall and prolong what’s coming.

    • LordRhynn

      Germany will walk first. No way they’re going to get into that QE round robin indefinitely like this bozo running the Federal Reserve is doing. They’ve already got wheels turning for months now set to allow them to roll right on out of the EU. Best thing they could do if they’re willing to embrace some level of Isolationism.

      And anyone wishing to survive this is going to have to. This system is done. A new algorithm for dealing country to country must be devised, and necessity is the mother of invention, so it will only happen after the world’s separate economies have started again from scratch.

  • fedup

    America is headed off the same cliff as Spain and Greece. If you are totally fed up with our government and its refusal to do anything about this, here is some positive action happening from Warren Buffet. Hope it goes viral and the media pick it up:
    You can copy it, and send it in your own email:

    Warren Buffett, in a recent interview with CNBC, offers one of the best quotes about the debt ceiling:

    “I could end the deficit in 5 minutes,” he told CNBC. “You just
    pass a law that says that anytime there is a deficit of more
    than 3% of GDP, all sitting members of Congress are ineligible
    for re-election.

    The 26th amendment (granting the right to vote for 18 year-olds)
    took only 3 months & 8 days to be ratified! Why? Simple!
    The people demanded it. That was in 1971 – before computers, e-mail,
    cell phones, etc.

    Of the 27 amendments to the Constitution, seven (7) took one (1) year
    or less to become the law of the land – all because of public pressure.

    Warren Buffet is asking each addressee to forward this email to
    a minimum of twenty people on their address list; in turn ask
    each of those to do likewise.

    In three days, most people in The United States of America will
    have the message. This is one idea that really should be passed
    around.

    Congressional Reform Act of 2012

    1. No Tenure / No Pension.

    A Congressman/woman collects a salary while in office and receives no
    pay when they’re out of office.

    2. Congress (past, present & future) participates in Social
    Security.

    All funds in the Congressional retirement fund move to the
    Social Security system immediately. All future funds flow into
    the Social Security system, and Congress participates with the
    American people. It may not be used for any other purpose.

    3. Congress can purchase their own retirement plan, just as all
    Americans do.

    4. Congress will no longer vote themselves a pay raise.
    Congressional pay will rise by the lower of CPI or 3%.

    5. Congress loses their current health care system and
    participates in the same health care system as the American people.

    6. Congress must equally abide by all laws they impose on the
    American people.

    7. All contracts with past and present Congressmen/women are void
    effective 12/1/12. The American people did not make this
    contract with Congressmen/women.
    Congress made all these contracts for themselves. Serving in
    Congress is an honor, not a career. The Founding Fathers
    envisioned citizen legislators, so ours should serve their
    term(s), then go home and back to work.

    If each person contacts a minimum of twenty people then it will
    only take three days for most people (in the U.S.) to receive the message. Don’t you think it’s time? THIS IS HOW YOU FIX CONGRESS!

    • EISENKREUTZ

      This is implied when the constitution uses the term “general welfare”. No one above the law. That is a symptom of the banana republic.

    • Paul

      Nice idea, but god will judge them all.

      And he will forgive you, too, if you give them more guns and ammo.

      • LordRhynn

        I believe the quote is “Render unto Ceasar that which is Caesars, and render unto The Lord that which is The Lord’s”

        I interpret that to mean don’t sit around at the line of scrimmage waiting for God to make a play. Get off the snap and plug a gap, because God’s existence is not a line of credit paying bystander apathy forward.

        If he didn’t choke out the San Hedrin for dissing his son over a convicted murderer then I wouldn’t hold my breath waiting for him to fall on Congress like a vulture for doubling down and hitting on 18 with your paycheck on the table.

    • Rowell

      I would vote for that in a New York minute.

    • GSOB

      In reply to fedup,

      Hello fedup,

      To quote you,.. ‘If you are totally fed up with our government and its refusal to do anything about this,…’,.. HEY! WAKE UP you sleeping liberal, it is the federal government that got us into this mess.

      Please, no further intervention from the fed gov is needed.

      As far as your fanatic support and marketing plan to spread Mr. Buffet’s
      7 laws, The Congressional Reform Act 2012 plan, I vote on it this way:

      1 – no or disapproved
      2 – no or disapproved
      3 – approved or yes
      4 – approved or yes
      5 – no or disapproved
      6 – approved or yes
      7 – disapproved or no

      Thank God that we have a representative democracy and not a pure democracy.

      Thanks

      • jayhawk

        No, the mess was already here, at the top, the very top. It was just a matter of time, along with a lot of narcissistic social engineering. This whole thing has been planned for years. It’s supposed to fall. They couldn’t have done it without our ignorance of course.

  • El Pollo de Oro

    Gerald Celente has often said that what we are seeing is a global depression. Greece is in a depression, The Banana Republic of America (formerly Los Estados Unidos) is in a depression, and España is in a depression. When a country has 52% youth unemployment—when 52% of Spanish youths can’t even get a part-time job waiting tables—you’re in a serious depression. And the situation in España is only going to get worse. The widespread social unrest we’re seeing in España is only the tip of the iceberg.

    “There’s a depression in Spain, a depression in Greece, a depression in Italy, a depression in Ireland, a depression in Romania, a depression in Hungary. There’s a depression in the world. American’s in a depression. There are no jobs being created that can give you a living wage. What comes next? Currency wars.”—Gerald Celente

    “If you’ve studied Rome, you know that wealthy nations do collapse into Third World squalor when they allow their currency to be debased.”—Alex Jones

    “There is going to be financial anarchy in Europe, and it is going to cause a slowdown worldwide.”—Jim Cramer

    “I think you can see that there’s quite a large chance that there will be no euro a year from now. ”—Paul Krugman

    “The IMF is the International Mafia Federation. They’re the loansharks of last resort.” —Gerald Celente

    So what does España’s misery mean for the BRA? Nothing good. España is a much larger economy than Greece, and when an economy of that size goes from bad to worse, there will major repercussions in the BRA. Adding to the BRA’s misery will be Italy’s problems; Italia is the third largest economy in Europe. España’s downfall will exacerbate the BRA’s downfall, and if you think the BRA is a violent, bloody, dangerous, unstable Third World hellhole now, just wait—the carnage in the future will be horrific. Between riots and social unrest, domestic terrorism and skyrocketing violent crime rates, the streets of American cities will drown in rivers of blood.

    God help España, God help Italia, God help Greece, and God help the rotting, decaying Banana Republic of America.

    • Nobody

      Damn right!

    • Gay Veteran

      good comments as usual El Pollo. btw, what has happened to Gerald Celente? haven’t heard anything from him since early June

  • lee

    thanks for putting this up.

    believe me, i know how bad spain is and how a failing spain affects the world; but i cant judge the pace of it hitting the US; your site puts that in perspective very good.

    you know, i had a trip to the mountains in august and i was thinking on cancelling it; but after reading this article; i see that if i put that trip off a few months; i may not get a chance to take it. if the US population clues into spain and greece essentially being in depression, the panicking may set off in the US w/ more layoffs and beginning of greece and spain like riots.

    • kenny

      You may want to stay in the mountains once you get there.

  • Cleo

    Our economy as well as the rest of the world’s economy is dying a slow death.

    Best solutions available:
    Flat consumption tax would attract trillions of off shore investment dollars because there is no place to go, and get rid of the IRS.
    Keynesian economics and socialism hasn’t worked so after flat tax is enacted, STOP!
    Get rid of the Depts of Energy and Education. Just big money holes that issue regulations and rules that have never worked.
    Scale back the EPA
    Get rid of Obamacare….it’s all about progressive eugenics.
    Elect officials at all levels who are true constitutionalists.

    There are others, but we all know it won’t happen so get your ass prepared for the onslaught this fall.

    • Gary2

      Like I said–most conservatives are crazy!

    • GSOB

      Our best solution is to have a man, a True Statesman and Doctor of Christ like nature, in this office space to catch us when we fall.

      VOTE FOR RON PAUL
      Agree…, but do realize that auditing the federal reserve will reveal the wizard, like in the oz, to our own demise.

      Question is this..
      Are we willing to suffer now or pass the suffering on.
      Oh… you thought he was out of the picture.
      Sorry.

      RP for President… a voice in the wilderness, we need to repent.., and all Ron Paul’s messages carries that theme, throughout the political stratosphere is a call for repentance and reformation of our federal government.

    • Gay Veteran

      Flat consumption tax would devastate the working poor and middle class because they have to spend so much of their income on the necessities of life

  • Bone idle

    The Spanish banks require something like 350 billion Euro to just survive – not 100 billion.
    The L.T.R.O. lendings by the Euro C.B. have been a poisoned chalice. The banks have invested these funds back into Government bonds. The yields on the bonds has increased so much that the banks are underwater on the deal.
    Next year the Spanish government needs to roll over loans worth nearly 50% of their GDP. Yeah. That’ll happen!

  • http://20SignsThatAllPointToTheSameThing-CanYouGuesWhatThatIs? leo bruski

    this is a great article keep them coming because the main stream media does not tell us squat

  • Paula W

    Well done Michael.
    Appreciate your work.
    I also had been warnign in New Zealand for over 8 yrs, on deaf ears, still very deaf, although one man with a microphone to the nation is listening.
    Glad I found you, your info gets straight to him, and then the nation can listen to whatever informaiton he passes on.
    When I first started reading your blog a few weeks ago, I thought you were saying the exact same as me, but in a more professional manner, of course I was surprised to see you were a committed Chrisitan and THAT explained it.

    • Michael

      Well Paula it is such a joy to know that people are visiting this site from New Zealand and from all around the rest of the world. I never imagined that I would have a platform someday that would enable me to touch every corner of the globe. I consider it to be a great privilege.

      Michael

      • chiller

        clap-clap-clap…BRAVO!

  • http://Theeconomiccollapse Gregge Johnson

    And the manure is being spread all over the US public employees pension funds. According to the PEW Center,pension funds are $757 billion dollars underfunded and $105 billion dollars are in Spainish Bank Bonds . When that manure starts smelling here in US,Plug your nose and hold your breath.

  • mark

    I follow the bond rates each day which lets me know where Europe is heading. Each time a bailout happens the effect is shorter and then the rates creep back up. Now the rates for Spain are not looking very good. When each countries rates go up it takes more energy out of their economy. The Fed can’t keep low rates here forever and then they will climb and we will have more pain.

  • Washington

    Gary Johnson Could Appear in Presidential Debates By ELIZABETH FLOCK July 23, 2012

    http://www.usnews.com/news/blogs/washington-whispers/2012/07/23/gary-johnson-could-appear-in-presidential-debates

  • Buzzy Watts

    Personally I don’t care what really did or did not happen 2000 years ago, or however much faith the intellectual elite have in the modern institutions they depend on–the value system of the New Testament is the only one that hasn’t been exposed by the economic collapse collapse. We don’t really have any alternatives. We may think that we do–in the form of useless material possessions, or in the institutions that promise them–but when the big one hits, we’ll see how much that iPad and 401(k) plan are really worth.

    • GSOB

      Asking Buzzy Watts a question:

      Hello Buzzy Watts,

      To quote you…, “the value system of the New Testament is the only one that hasn’t been exposed by the economic collapse collapse.”

      Would you expand on what you mean by ‘value system’.
      What value system or system of values are you talking about?
      Is it on life and death or tithing or God’s perspective or possesions or what?
      Appreciate it if you would spin this out a little more.

      Thanks

  • tappedops

    Dont panic there will be no A-word here in the usa— they will word-smith a new word which will baffle the masses,… just like the old word did…

    Merriam-Webster’s Dictionary named the word “austerity” as its “Word of the Year” for 2010 because of the number of web searches this word generated that year

    • LordRhynn

      Most dopes probably thought it mean wearing a Tweed jacket and smoking a pipe at dinner.

  • 007

    While it looks bad from these facts, the ECB is inevitably going to print whatever money is needed for these broke governments. The FED has been doing it for decades and getting away with it. They are nowhere as broke as we are. They will come up with fancy shell games to mask what is going on, but that is what will happen.

    Ask yourself, do they have any choice? What is to stop them except hyper inflation. Until that happens, stand clear of the ECB printing press it will be running at maximum speed.

  • sees through lies

    Coming to a fading banana republik near you?

  • David

    The world is getting in a state, that it can only solve problems. By adding new problems.

    I think where in the same situation(s) in 1930…And i got a feeling that world war 3 is getting very close. (Look at the Syrian and Iran crisis as we speak.)

    Good luck in the end.

    Greetings from Holland.

  • FrankenSnarfel

    This doom and gloom has been predicted for the last 7 years. The problem is that this is a slow moving train wreck and it will be another 2-3 years before the dollars is in as bad shape as the Euro. And no one believes the Euro will collapse, even though the Germans are already using Marks again. The hand sritting is on the wall. We are dead men walking. Gold and silver are as valuable as guns and ammo, but Guns and Ammo have secondary uses. Time to invest wisely.

  • Colin

    A story on Huffingtonpost reported that Wall Street and the Super Rich are benefiting from these austerity measures. As states privatize government services, the corporate class reaps profits. The savings accrued from austerity cuts pay for tax cuts for the Super Rich.

    http://www.huffingtonpost.com/2012/07/23/austerity-wall-street_n_1690838.html

    • Gary2

      remember that each time the state privatizes a job formerly done by state workers the private firm can and does give campaign donations (bribes) where as the state can not offer up the bribes. It has been proven time and time that privatizing almost never works.

      Even someone as dumb as conservatives can see this is true so my guess there is a larger agenda.

      • mike Beale

        where as the state can not offer up the bribes.

        You’re joking right? Oh that’s right, campaign donations from SEIU to the Obama campaign are LEGAL bribes. (Forced on union members who may not agree.)My bad.

      • DiscouragedOne

        I have worked in private and public, and it is the public (where there are unions) that is the most corrupt, by miles. Denial is not a river in Egypt.

        • Gary2

          who gives more bribes–the private sector or unions??? The private sector by a long shot.

          Sorry–you are wrong again.

  • Alex

    Communism = legalised jealousy.
    Capitalism = legalised greed.
    This is just plain “cause and effect” rule at work. That is the effect of legalised greed starting to show. The meltdown is inevitable, the question is, what will people choose to do when it will pass. Everything will pass at some point…

    Nigel Farage talking about sinking Euro-Titanic – http://www.youtube.com/watch?v=2-Hz-mrplKU

  • chiller

    This whole collapse thing sure reminds me of Fukashima’s dilapidated #4 reactor building with the pool of spent fuel rods on the 5th floor. One false move and the entire radioactive mess comes tumbling down affecting the entire planet.

  • Jan

    @Michael.
    Paula writes positively about your blog.

    Can i read it, wtats the website ?.

    Best Regards
    Jan

  • Paul

    The suffering in Greece gets worse?

    What does that mean? The tax collector is coming to their house?

  • Mike

    “Just like Greece and Spain, we are also rapidly traveling down the road to economic oblivion, and depression-like conditions will arrive in this country soon enough.

    So enjoy these last months of economic prosperity while you still can.

    A whole lot of pain is on the horizon.”

    Michael, whats your best time line as to when WE will experience these same conditions?

    • Michael

      Mike:

      I don’t like to set dates, and all of this will unfold over time, but let’s just say I am not particularly optimistic about 2013 to 2015.

      Michael

  • http://theeconomiccollapseblog.com/archives/these-12-hellholes-are-examples-of-what-the-rest-of-america-will-look-like-soon BC

    Another fantastic article. Thanks again Bro. We need the truth telling Christians sounding the alarm because the corrupt main stream media aren’t going to do it, their masters wont let them. I just had the most disturbing reply from my sister to an email I sent her. She works for a big bank here in Australia and earns a 6 figure sum, in fact a very large amount of money. She doesn’t want to know anything about the cleptocracy she works for (I don’t call it that to her). I just want her to know the truth and what is coming. The only thing I get from my family and her is that I am some sort of religious crazy with doomsday theories. I just don’t know what to do anymore. Even mainstream people are unaware of the total economic annihilation that is coming our way. It is almost like no one wants their little fantasy parade rained on. I don’t know guys, I just think it’s time to get on with our own awareness and preparations and leave the ones who don’t want to know alone. God Bless

    • GSOB

      In reply to BC

      Hello BC,

      I understand exactly what you feel. If you are Christ’s, we are brothers. Amen

      I read somewhere, perhaps on this site, I can’t remember right now, but
      ….. remember Noah, that idiot building the ark on dry land?

      Comforting.

      • GSOB

        Add to response for BC:

        Hello BC,

        I believe that the following portion of scripture Jesus spoke to his disciples is revealing.
        1. Jesus talks about coming destruction judgement from our Sovereign God, fore God is God of all nations. I believe that the destruction of the temple in AD 70 is what’s most immediate in view, but also it encompasses in principle or ‘like manner’, the final destruction at the end of this world as we know it. So, for us today in 2012 this instruction still applies on how to handle coming destruction.
        He knows that we know, they knew, what was pending, so Jesus is providing an escape plan that emphasizes prayer for the Lord’s leading.

        Jesus tells us that when we see something of this magnetude of destruction, flee to the mountains, basically – no time to prep type for fleeing. Which means that things happen that quick. So, it makes good sense to be prepared, otherwise – His instruction is moot. It’s a natural response to be concerned and prepare when you know that judgement is pending, fore noone hates their own flesh, but nourishes and cherishs it.

        Secondly, Jesus tells us that we should pray that it’s not in winter.
        Praying for this will lead you to prep now for winter survival, the worst conditions I think. Worst than summer. And, finally – men of faith need to think about and include our wives and children in our planning. Fore he who does not provide for his own household has denied the faith.

        That’s how fast things can change and what you are doing BC,
        Jesus instructs his followers to do.

        Here is the passage where Christ instructs his elect what to do in the face of imminent destruction and when everyone is trying to save you from it
        That’s just how bad things can get socially, everywhere – wether you go to church or not:

        The Abomination of Desolation (Matthew Chapter 24)

        15 “So when you see the abomination of desolation spoken of by the prophet Daniel, standing in the holy place ( let the reader understand), 16 then let those who are in Judea flee to the mountains. 17 Let the one who is on the housetop not go down to take what is in his house, 18 and let the one who is in the field not turn back to take his cloak. 19 And alas for women who are pregnant and for those who are nursing infants in those days! 20 Pray that your flight may not be in winter or on a Sabbath. 21 For then there will be great tribulation, such as has not been from the beginning of the world until now, no, and never will be. 22 And if those days had not been cut short, no human being would be saved. But for the sake of the elect those days will be cut short. 23 Then if anyone says to you, ‘Look, here is the Christ!’ or ‘There he is!’ do not believe it. 24 For false christs and false prophets will arise and perform great signs and wonders, so as to lead astray, if possible, even the elect. 25 See, I have told you beforehand. 26 So, if they say to you, ‘Look, he is in the wilderness,’ do not go out. If they say, ‘Look, he is in the inner rooms,’ do not believe it. 27 For as the lightning comes from the east and shines as far as the west, so will be the coming of the Son of Man. 28 Wherever the corpse is, there the vultures will gather.

        So BC, you man of God you, take care and know that it is because of the love God toward the elect, Christ dies for and also instructs them what to do. So prep on.

  • a lot more trouble…

    Great article Michael!
    This is not good news about Spain, especially since Greece which is in worse shape has taken the back seat in the news lately.
    Spain’s woes will carve out more jobs here and everywhere.
    Guess what? more Mass layoffs!
    And it is only going to get much worse.

    Cisco to Lay Off About 1300 Employees‎ Wall Street Journal
    Continuing to trim expenses amid growing competition and the sluggish economy, San Jose networking giant Cisco Systems said Monday it will lay off about …

    Kiwifruit woes lead to orchard layoffs
    ‎The Farming Show – 15 hours ago
    Layoffs have started in the Bay’s orchard spraying companies because of the … on the successful grafting this winter of 2000ha of the more Psa-resistant variety …

    Morgan Stanley to lay off 700 more by year-end
    ‎Westfair Online – 17 hours ago
    The remaining 700 layoffs will be announced by the end of the year. Analysts say a combination of the weak economy, more industry regulation, and difficult …

    Mass layoffs rise in New York
    ‎Upstart – 3 days ago
    The number of mass layoffs across New York increased substantially during the past…

    Lockheed could lay off 10000 workers under budget cuts‎ Upstart
    by the way that is ten thousand layoffs

    Baskin-Robbins Layoffs: Peterborough Ice Cream Plant To Close …
    It’s so bad out there no one is buying Ice cream
    ‎Huffington Post Canada – 5 days ago
    Baskin-Robbins Layoffs: Peterborough

    and NOW do you want to laugh out loud?
    Most companies see no more layoffs in 2012
    ‎msnbc.com – 4 days ago
    If you have a job, good news: A new survey finds that there’s a good likelihood you’re going to keep it. Right Management, a division of staffing firm Manpower …
    Allison Linnby Allison Linn

    Think Allison Linnby is a Media shill?

  • Dave in TN

    With respect to the US, you still need to consider the possibility (I think certainty) or war. Hasn’t nearly every empire facing collapse tried this? But, this time, it will be different: we got nukes and we ain’t afraid to use them !!

    • GSOB

      I agree totally, fore what is war but escalted civil violence at the national level? That’s already happening in this world. We are at war now and have been for quite awhile. The wars you think you know about are not all that are going on.

      The masses are are like horses with limited sight. And there are levels of social groups that are way out of our leagues.

      They know how much money we make and they control us into a sims like enviroment as our reality …anwhere they choose. Practically speaking, our major cities, their local and federal governments, gather, share and use information to their own benefit.

      The cover up is the polite notice you get concerning your credit and information. The information is powerful enough for them to let you know that it’s protected. It is all being done by the economic elite bankers who are milking us for all they can… and our furture has, for decades to come, under these – the powers that be, has already been obligated.

      • GSOB

        That previous reply was in reply to Dave in TN. and now to add to it to add.

        I agree with you…
        War is most certain, and most likely without warning.

  • http://booksbyoliver.com MountainHome

    The question on my mind is if the EU problems will hit America before the November elections.

    If so, we’ll see a new president & a lot of career politicians will be voted out as a protest.

  • K

    Just another step down the road of destruction. We are under judgement for our Greed. Do we turn from the path? No we run all the faster. Even now the rich and powerful, prepare to put their man in office. The man of Greed. A man who throughout his life, has done nothing that did not make him money. His claim to fame. He saved the Olympics. Sure he did. His companies made a great deal of money, by him saving the Olympics. So shake your fist at God, and elect the man of Greed. But before you think this is an Obama ad, I would not vote for him either. The game is rigged. It only continues on, because most of you continue to play. Do you think Obama would get a second term? If millions of people quit the Democratic party. Do you think the man of Greed would be supported by the Republicans? If millions of people quit the Republican party. You seek an enemy? Look in the mirror.

  • Evie

    We have more debt than any other country because of our gov. and banks investing in whatever and the taxpayers picking up the tab.
    When we loose our reserve currency who will pick up now? All counyries are having difficulties .

  • TooLittleTooLate

    Well, I think I read on zerohedge.com that Spain needed to roll over 600b of debt this year…. Well, we can all see that won’t be happening…. nobody wants it… it’s currently in the process of a full implosion which will continue to spread to Italy then others but, when the fire catches in France you can guarantee the SWHTF here if not before then even.

    All of those derivative contracts that our institutions have written on debt will start to get called in… In all honesty, it may happen before we get to seeing pressure on France…. we just don’t know what our own institutions can withstand.

    The most troubling to me is that in all of history, when goods and services stop crossing borders, troops usually start crossing borders…. we already have complete chaos in the middle east…. Israel is rattling it’s sword… Syria is imploding and the world economy is dancing on the head of a pin…. WHAT could go wrong?!?!?!?!?!

    We all know really hard times are coming…. I’ve taken the que and bought a house in the country on 10 acres and am starting a small farm, I have some livestock and laying hens, a pond, security etc. I’m looking into wind and solar but, I fear I won’t have time to get it all put together in time.

    One thing I’ve come to never underestimate is the ability of political figures to keep all the balls in the air but, even so, there will come a day soon when they won’t be able to anymore.

  • http://slimeball-comics.blogspot.com CML

    So sad. #11 The youth unemployment rate in Spain is now over 52 percent. I bet that will be the October surprise. Obama will say, “Hey, at least we don’t have it as bad as SPAIN!!”

  • http://Survive2balive.com GA

    Here’s another one to add to the first 12…the bank runs on Spanish and Greek banks and the subsequent monetary control put into effect.

  • erheault

    At this time it dont matter a whit as to be the president we are in a depression now and it is getting progresably worse, 46 million drawing food stamps and we are having a drought so food prices and shortages are around the corner, about half of the people in the nation drawing some sort of a check from the governments of the states and feds, unemployment in the millions, home and property repossesions in the millions, Bank fraudsters that belong in jail instead they are gettion hundreds of millions in bonuses for defrauding the public,and a senate and house that appearently dont have a clue as to be able to handle anything except their reelection fund raisers,and a president who is in love with Air Force 1 since he is rarely out of it costing whats left of the taxpayers millions of dollars. Yep we are screwed learn to love it.

  • doctor blue

    Like a giant snowball rolling down hill, it grows while it picks up speed and soon this economic “snowball” will roll over us here in America. Everything is accumulating, gaining strength, gaining momentum. Like a giant steam engine train it starts out very slow and chugs loudly but as time goes on, it goes faster, and faster, and faster. Now the course is set, there is NO turning back and no slowing it down and NO STOPPING it.
    You think I am kidding, when I say a year from now we will be sitting around campfires to keep warm, eating the neighbors pet and then rat meat and when the rat meat runs out it will be the neighbors kid.
    Ask the people of Greece – IF I AM KIDDING!!!
    EVERYTHING POINTS TO SEPT. or OCT. 2012 as to when it crashes hard here!
    PREP HARD – PREP FAST – TIME IS VERY SHORT!

    • TooLittleTooLate

      You may be right…. My uncle remembered some of the wwii times and i recorded them so I could remember him and his perspective from a great man… he thought before he passed away that we were in for hard times….

      He said to me, “I’ve seen good times and bad times but, since WWII, we’ve had good times here.”.

      I don’t know where this will go but, I do know that it’s not going to be pretty.

      He also said, “America will always be the best country to be in unless they come for our guns.”

      I’m sure they may try that if things do get bad enough…. they did when Katrina happened…. you know, for our own good and whatnot.

      I just don’t know anymore…. this is not the country I grew up in anymore…. I still proudly fly our flag… and the Texas flag.

      If our current potus gets re-elected, I’ll start flying the flag upside down. ( that’s the flag in distress signal for those that don’t already know that )

      I’d not like to think the very worst could happen here but, I know we’re no different than any other country in history and folks here can’t imagine how evil the world can be. While they’re watching Dancing with the stars and other mind numbing, spirit crushing idiot inspiring thing on T.V.

      Let’s all pray ( on our knees with tears )

      One thing is true… we all should be putting as much food in the pantry as possible… it’s not going to get any cheaper and, you may need it when it may not be cheap or that available.

      What worries me the most is the political climate…. food price increases brought on the arab spring… what will happen next year when corn prices spike everything… ( all the while we’re grinding corn into something we’ll put into our gas tank)?!?!?!?!?!?

      Idiots…. There is so much wrong with our political figures…. They’re so corrupt… so influenced by money from interests. My father in law had a chance to experience this himself firsthand…. They needed a certain thing done for cement plants back when he was in the business… he visited his congressman, he didn’t even get to meet with him… they drafted the legislation and paid into his re-election fund and, it got done…. he said he had such a bad taste in his mouth after that he never wanted to do that again.

      Apparently, this is how our politicians work… public be damned.. money talks while the public suffers… now we get to the place we had to end up in such a morally bankrupt society.

  • Leroy

    Thanks a lot for your work. When I want to have a good description of the economic situation in Europe , I read your blog.

    Be sure that the next country to fall in Europe will be France and the consequences of that will be a nightmare for everyone.

    My english is not good enough to tell you the situation in France but our debt is huge : 1600 Md€, our economy is dead because our industry has vanished, and therefore our situation is very, very worse than in Italy.

    A message from Europe.

    And this time your fantastic country won’t be able to rescue us as in 1944.

    • Michael

      It is great to hear from you – and I completely agree – France is in a whole lot of trouble.

      Michael

  • Old Man

    During the boom years, Spain copied the financial policies of America.

    Borrow and spend.

    It was also the first EU state to fully join America’s war on terror under Bush, sending troops to Iraq. That invited al Qaeda to hit on Madrid’s trains, putting a stop to that expensive venture quickly.

    But nobody stop Spain’s nutty economic policy. It has an economic standard about half of Germany and France. Instead of revamping its aged economic culture and technological skills, it proceeded to borrow vast amount of money from the rich EU states to pump up its economy and standard of living.

    But of course when the bills come, America printed more than $10 trillion dollars to bail itself out. While Spain doesn’t even have the power to print a single Euro. And so the country must now pay for its debt, for real, with unemployment and taxation. What about the billions of Euros it borrowed and invested – hasn’t that yield greater wealth to repay the loan? Sorry, the money went to housing few can afford, and to vacations and good times. All spent, zero returns.

    Let this be the most valuable lesson for Spain. You can’t get rich by just having a good time on borrowed money. In another word, the American Dream is not for Spaniards.

  • BA

    Michael,
    First time posting and I’ve noticed yourself and others mention their christian belief. My question is this; do you believe that this is all supposed to happen for a greater outcome as various bibles of various religions state similarly? (The end of a wicked system)

    • Michael

      BA:

      In my investigation I have not found any evidence that supports the veracity of any other “holy books” other than the Bible.

      I believe that the Bible is true based on the evidence. And yes, I believe that everything that the Bible says is going to happen is actually going to happen.

      However, it is all not going to happen as quickly as many people believe that it will happen. We are living in the last days, and before it is all over we are going to witness the most horrible times in all of human history.

      Michael

    • mike Beale

      BA, I find the following website helpful in linking current events to Bible prophesy.
      http://www.defendproclaimthefaith.org/blog/

      • Susan

        Thanks for a great website!

  • Work.Buy.Consume.Die.

    When ignorance turns to fear……THAT is when americans will realize that their comfortable fake debt-ridden life [to which they are smugly accustomed]is over…

  • mondobeyondo

    Greece first, then Spain, then Italy, then France and Portugal.
    Watch the European economic dominoes as they fall.
    As for the U.S. economy? “The bigger they are, the harder they fall”…

    • GSOB

      Not without a war though mondobeyondo.

  • DiscouragedOne

    Not to nitpick, but unemployment in the U.S.A. hit 24.9% in 1933.

    Let us pray it never happens again, although it certainly is not out of the realm of possibility.

  • http://EconomicCollapse Already Gone

    This is all a part of the vicious circle of life around and around it goes and as to where it stops and when it does nobody knows.

    • GSOB

      Yeah right Already Gone.

      …willfull ignorance is bliss… for a short time anyways.

  • M

    We’re getting so close to the end. Thanks for writing these articles. :D

  • Thomas

    Niether Ireland or Spain should have gotten into the Euro. They both have had real estate bubbles funded by euro loans coming from German, French and British banks. If these banks made bad loans to Irish and Spanish banks, then they should be made pay for their bad investment decisions like anyone else who puts his money into some kind of Ponzi scheme. Banks have governments and everyone else by the throat. Then private debt of banks is then turned into public debt as failed banks are nationalized, which is immoral. Greece is way worse off than Spain. The previous Socialist government in Spain first dendied that there was a crisis for a whole year. Then they applied Kenysian ridiculous public spending stimulus packages, just like Obama did. As for the 52% youth unemployment in Spain, well many are invovled in the black economy which es very large in Spain and Italy.

  • Andrew
  • Eric

    I live in the UK and see one European country after the other going down the toliet. One thing they all have in common is promising benefits that could never be afford. Does this sound familiar? America is doing the exact same thing. Every time the reps try to curb or cut back entitlments the dems go nuts. Social Security, Medicare and Medicade are all headed for insolvency and the politicans stand out in front of the microphone saying the systems are fiscally sound. It’s like watching a comedy in slow motion. Everybody knows the entitlements are going bankrupt but nobody wants to act. Insanity.

    • Gay Veteran

      or the right goes nuts when you want to cut the bloated Pentagon budget

  • ALICE

    Germany and Finland should leave the Eurozone..They are the misfits of the bunch…Don’t they know that beg, borrow, print and steal is the today’s solution to the beg, borrow, print and steal of yesterday?

  • Nicanor

    I’m Spanish. My country is in depression since (at least) the fall of 2010. For obvious reasons, politicians, con economists and talking heads will negate what I just said. But believe me, we the people are suffering a nightmare that has only started, and we have to thank it all to our many and numerous, crooked and socialist politicians. Also, most journalists, eCONomists, businessman, bankers and bishops have helped Spanish governments (nation-wide gov. and local govs.) in the process of destroying capital, savings and general faith in democracy and law, which only punish those who don’t have enough money to receive the “special treatment” judges, fiscals and lawyers give to the very important people.
    We have too much taxation, too much rules, too much contradiction and lies to have a prosperous economy. And Europe wants more taxes, more rules, more hurdles to savings and investment and job creation. This is going to blow up.

    Get ready, you’re next, America!
    Bin Laden’s plan is a total victory!
    Western culture self-destruction via the abolition of liberty. Brilliant. We completely fell in their trap.

  • Paula W

    BUT God has a plan, and even though he has allowed your enemies to
    rule over your lives, he uses these things to redeem you.
    It is through ‘trian and tribulation’ you enter the kingdom of God which is within.
    Now if you imagine that all these things the world offers are really of no value, then when they are destroyed and removed then you find the true treasure.
    Keep your heads up for your redemption is coming closer.
    IF you SEEK him with ALL your heart, you will find him and he will deliver you from the hands of your enemies.
    And you will also KNOW freedom. Temptatioin to the things of THIS world no longer lure you…
    That is freedom.
    All this is the ‘house of cards’ look up.
    There is HOPE.

  • Steve

    Global Depression by Design…Yes citizens..Your not the Top .00001% who will benefit from the collapse. From chaos comes ORDER…”Their Order”. Welcome to the New World Order and a Global Police State.
    These Government leaders with all the potential considerations will fail in their calculations and have such unintended consequences. A Global Depression that will make the U.S.1933 Depression a cake walk. War, crime, riots and famine will be the norm. A lynching of the middle class with nothing left will thrust violence upon the “Elites” and the “Rich” that the world has ever seen. If you can, leave the U.S. and find a 3rd world country where they know how to survive on nothing. You may realize then you will be one of the Blessed lucky ones. For now the growing massive debt is a smoldering volcano is like Mt. Vesuvius, that when it blasts will leave the world looking like Pompeii.
    - Steve 09/11/09

  • http:myfavoritebigfootstories.blogspot.com JungianINTP

    Re “mike Beale” post above, linking to an article about liberalism as a mental disease (a psychiatrist’s evaluation)–study my two post at the bottom of this page, for a deeper understanding of the underlying psychology of politics, which reveals what drove Western economies to ruin:

    http://andrewgavinmarshall.com/contact/#comment-2690

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  • paul hill

    THE COMING FINANCIAL APOCALYPSE.

    I wrote this in response to an interview on Saturday Extra between ABC’s Geraldine Doogue and the ex head of the World Bank. I was horrified at his suggestion of a Marshall Plan as such talk just delays facing the truth as soon as possible as to the ONLY way out, a MASSIVE global redistribution of wealth DOWNWARD in order to reverse the absurd UPWARD redistribution from around 1973. This redistribution would achieve 3 main necessary objectives. Allow lower income people to pay off their debt, create purchasing power in their hands in order to stimulate demand for goods and services and remove the extremely dangerous political polarisation which must eventually spill over into violence and with it hyperinflation and economic collapse. This is the ONLY way to get growth whilst establishing equality and ALL that goes with it, low unemployment, low crime, low hospital admissions, low debt, high productivity etc. This is NOT a left wing perspective, as most people would like to be megarich with least amount of effort involved. Like Chomsky I am a non-violent anarchist.

    Marshall Plan? Where is the money gonna come from? The US? It’s bankrupt and needs a Marshall plan for itself. From the printing presses? It’s already coming from the printing presses and that is inflationary as well as creating more debt. Austerity means worse inequality which is the fundamental problem. Say’s law is immutable. MASSIVE redistribution is the ONLY thing that can possibly work. Time is running out. In 1975 it was New York city that was going to declare bankruptcy and default on $2 billion debenture interest payments due July 1st. Years of feather bedding by city public servant awarding themselves higher and higher pensions, falling city tax revenue due to small businesses leaving the city in response to higher rates, even more leaving etc. drove up city debt to the point where it became a grave crisis.

    The State wouldn’t bail it out as it’s credit rating would have been downgraded, meaning higher interest rates. The Ford admin. refused also because it would have set a precedent for other US cities to follow cap in hand. Debt would have spiralled upward. Then as the deadline got closer the NYSE began to jump around and finally the Ford admin. caved in. Now look at the result today a world DROWNING in debt.

    OVERVIEW OF WORLD ECONOMY FROM 1973
    This is brief overview of the events leading up to the current financial crisis. In 1973 the Yom Kippur war took place in which Soviet backed Egypt and Syria attacked Israel which very narrowly defeated both, in part due to US assistance in supplying weapons to Israel. In retaliation Arab OPEC states slapped an oil embargo on the US and the Netherlands, the result of which sent world oil prices soaring, thus beginning the end of the post WW2 boom. The outcome of this oil price hike was a massive redistribution of wealth from the non-oil producing world to the oil producers, primarily the Persian Gulf states. This huge surplus for the Gulf states went into European banks and became known as petrodollars or Eurodollars. The Gulf states went on a huge spending spree, snapping up prestigious investments like Harrods in London. Looking for somewhere to invest this money stimulated a drastic lowering of house mortgage borrower requirements in the US which resulted in the sub-prime bubble.
    Unfortunately one man’s meat is another’s poison and a surplus for the oil producers meant debt for the non-oil producers having to pay 500% more for their oil than before Yom Kippur. In 1975 the debt crisis, in part resulting from the oil price hike, begins, probably as a result of the New York bailout setting an example to the rest of the world that debt is acceptable and bailouts are now all the go. The gurus decided that the prudence shown in 1929 in raising interest rates straight after the Crash was dreadfully unsophisticated and actually created the Great Depression. Galbraith argued quite correctly that the Great depression was necessary to squeeze the speculative pus out of the system and establish a more equitable basis for recovery
    The Gulf states were very keen to lend their huge surplus of petrodollars and the non oil producers were very keen to borrow it and emulate the success of the Gulf states by just getting stuff out of the ground to make a big quid just as the Arabs have done. Thus from ’75 the ‘resources boom’ begins and soon fails primarily because speculative investment capital going primarily into resource development starved the very users of said resources, the manufacturing sector, whilst unleashing mergers, greenmailing, stagflation, accountancy distortions, a huge range of tax evasion schemes based on no or low capital gains tax. Almost all of this crap takes place in the resource and mining industries because they are more speculative by nature than manufacturing, eg blasting gold flecks into the wall of a gold mine with a shotgun or Psioden issued at 50 cents and rocketing to $198 then collapsing when speculators finally realised that if there was all that nickel in the ground it would glut the market and crash the world nickel price.
    By now the casino had replaced any post WW2 rationale. The Crash of ’87 is the obvious result of all of the speculation unleashed after 1975 and marks the beginning of the housing bubble for a number of reasons, one major reason in Australia being the Hawke govt introducing a capital gains tax in ‘87 which went nowhere near far enough and which exempted the first home. Before the Crash of ’87 analysts were warning of an impending ‘correction’ and advising little investors to get into unlisted property trusts. So, burned by the share market, a capital gains tax now on shares plus double dipping on dividends, drove investors from the share market into housing. However, the later elimination of double dipping, along with a lowering of the capital gains tax by Howard and boosted by the rise of compulsory superannuation reinvigorated the CAPITAL GAINS or speculative emphasis of Australian stock exchanges. I assume it has been much the same scenario for much of the rest of the world.
    Now we see the end result, 90% of which is caused by increasingly regressive taxation policies, primarily a lowering of capital gains taxation over time, thus promoting counterproductive speculation, whilst making up the shortfall in tax revenue by increasing taxation on the means of production, primarily on the little business. As the rich get richer the poor get poorer as a consequence of the rich getting richer and with ever greater concentration of wealth into fewer and fewer hands. Consumer spending drops as a consequence of falling income at the ever more relatively populous lower end of the income spectrum. So credit is liberalised to compensate and debt rises in all sectors of the global economy.

  • http://malaysiandemocracy.wordpress.com/ AgreeToDisagree

    Nonsense. Spain could simply distribute all unused land , and tell the people to grow their own crops and build their own houses, raise their own livestock, make their own leather or fur goods, compost their own sewage, collect their own rainwater or dig their own wells. End of problem, everyone gets a few acres. BTW there is no such thing as money. There is no such thing as economy or collapse. Too bad for the plutocracy or corporatocracy though! Even if education was free now, citizens will return to 1400s settler-era America! Citizens please elect ONLY a President or Governor with the above intent. Executive Order 0 (Zero) for land distribution will be that reset button America needs.

    BTW there is no such thing as poor people, concept of money or a Global Financial System or a recession or depression.

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  • Julie Denner

    The setting may be the setting but this can also happen in our country. We need to be vigilant and keep a close eye on the issue and our economic situation as well.

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