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. Usually in this column I go on and on about why things will soon get much worse. But today I am going to take a bit of a break. Today, I am going to let some of the top financial professionals in the world tell you why things will soon get much worse. Many of the quotes that you are about to read just might make the hair on the back of your neck stand up. Most people out there have no idea what is about to happen. 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.
Of course the failure of the "supercommittee" in the United States certainly is not helping matters. There is already talk that we may soon see another downgrade for U.S. debt. It is hard to even describe how incompetent the U.S. Congress is.
There is a tremendous lack of leadership both in the United States and in Europe right now. The financial world is more interconnected than ever before, and when the financial dominoes start to fall it is going to take a miracle to keep a complete and total disaster from unfolding.
So when the time comes, who is going to step forward and provide that leadership?
That is a really, really good question.
Right now, panic and fear are spreading like wildfire in the financial world and nobody knows for sure what is going to happen next.
But one thing is for certain. Pessimism is growing stronger by the day.
The following are 17 quotes about the coming global financial collapse that will make your hair stand up....
#1 Credit Suisse's Fixed Income Research unit: "We seem to have entered the last days of the euro as we currently know it. That doesn’t make a break-up very likely, but it does mean some extraordinary things will almost certainly need to happen – probably by mid-January – to prevent the progressive closure of all the euro zone sovereign bond markets, potentially accompanied by escalating runs on even the strongest banks."
#2 Willem Buiter, chief economist at Citigroup: "Time is running out fast. I think we have maybe a few months -- it could be weeks, it could be days -- before there is a material risk of a fundamentally unnecessary default by a country like Spain or Italy which would be a financial catastrophe dragging the European banking system and North America with it."
#3 Jim Reid of Deutsche Bank: "If you don't think Merkel's tone will change then our investment advice is to dig a hole in the ground and hide."
#4 David Rosenberg, a senior economist at Gluskin Sheff in Toronto: "Lenders are finding it difficult to finance their day-to-day operations with short-term funding. This is a lot like 2008 but with more twists."
#5 Christian Stracke, the head of credit research for Pimco: "This is just a repeat of what we saw in 2008, when everyone wanted to see toxic assets off the banks’ balance sheets"
#6 Paul Krugman of the New York Times: "At this point I’d guess soaring rates on Italian debt leading to a gigantic bank run, both because of solvency fears about Italian banks given a default and because of fear that Italy will end up leaving the euro. This then leads to emergency bank closing, and once that happens, a decision to drop the euro and install the new lira. Next stop, France."
#7 Paul Hickey of Bespoke Investment Group: "More and more, we are hearing anecdotal comments from individual and professionals that this is the most difficult environment they have ever experienced as the market is like a fish flopping around after being taken out of the water."
#8 Bob Janjuah of Nomura International: "Germany appears to be adamant that full political and fiscal integration over the next decade (nothing substantive will happen over the short term, in my view) is the only option, and ECB monetisation is no longer possible. I really think it is that clear and simple. And if I am wrong, and the ECB does a U-turn and agrees to unlimited monetisation, I will simply wait for the inevitable knee-jerk rally to fade before reloading my short risk positions. Even if Germany and the ECB somehow agree to unlimited monetisation I believe it will do nothing to fix the insolvency and lack of growth in the eurozone. It will just result in a major destruction of the ECB‟s balance sheet which will force an ECB recap. At that point, I think Germany and its northern partners would walk away. Markets always want short, sharp, simple solutions."
#9 Dan Akerson, CEO of General Motors: "The ’08 recession, which was a credit bubble that manifested itself through primarily the real estate market, that was a serious stress....This is much more serious."
#10 Francesco Garzarelli of Goldman Sachs: "Pressures on Euro area sovereign bond markets have progressively intensified and spread like a wildfire."
#11 Jim Rogers: "In 2002 it was bad, in 2008 it was worse and 2012 or 2013 is going to be worse still – be careful"
#12 Dr. Pippa Malmgren, the President and founder of Principalis Asset Management who once worked in the White House as an adviser to President Bush: "Market forces are increasingly determining what the options are and foreclosing on options policymakers thought they had. One option which is now under discussion involves permitting a country to temporarily leave the Euro, return to its native currency, devalue, commit to returning to the Euro at a better debt to GDP ratio, a better exchange rate and a better growth trajectory and yet not sacrifice its EU membership. I would like to say for the record that this is precisely the thought process that I expected to evolve,but when I proposed this possibility back in 2009, and again in September 2010, I had a 100% response from clients and others that this was “impossible” and many felt it was “ridiculous”. They may be right but this is the current state of the discussion. The Handelsblatt in Germany has reported this conversation, but wrongly assumes that the country that will exit is Germany. I think that Germany will have to exit if the Southern European states do not. Germany’s preference is to stay in the Euro and have the others drop out. The problem has been the Germans could not convince the others to walk away. But, now, market pressures are forcing someone to leave. Germany is pushing for that someone to be Italy. They hope that this would be a one off exception, not to be repeated by any other country. Obviously, though, if Italy leaves the Euro and reverts to Lira then the markets will immediately and forcefully attack Spain, Portugal and even whatever is left of the already savaged Greeks. These countries will not be able to compete against a devalued Greece or Italy when it come to tourism or even infrastructure. But, the principal target will be France. The three largest French banks have roughly 450 billion Euros of exposure to Italian debt. So, further sovereign defaults are certainly inevitable, but that is true under any scenario. Growth and austerity will not do the trick, as ZeroHedge rightly points out. Ultimately, I will not be at all surprised to see Europe’s banking system shut for days while the losses and payments issues are worked out. People forget that the term “bank holiday” was invented in the 1930’s when the banks were shut for exactly the same reason."
#13 Daniel Clifton, a policy strategist with Strategas Research Partners on the potential for more downgrades of U.S. debt: "We would expect further downgrades, a first downgrade from Moody’s and Fitch and possibly a second downgrade from S&P."
#14 Warren Buffett on the problems in the eurozone: "The system as presently designed has revealed a major flaw. And that flaw won’t be corrected just by words. Europe will either have to come closer together or there will have to be some other rearrangement because this system is not working"
#15 David Kostin, equity strategist for Goldman Sachs: "The wide range of possible outcomes on both the super committee process and the unstable political economy in Europe drives our view that investors should assume the worst while hoping for the best."
#16 Mark Mobius, the head of the emerging markets desk at Templeton Asset Management: "There is definitely going to be another financial crisis around the corner"
#17 Gerald Celente, founder of The Trends Research Institute: "The whole system is going down. Pull your money out your Fidelity account, your Scwhab accout, and your ETFs."
Are you starting to get the picture?
When so many top financial professionals are freaking out like this, perhaps the rest of us should start paying attention.
They are telling us that "time is running out".
They are telling us that "there is definitely going to be another financial crisis".
They are telling us that this "is going to be worse" than 2008.
They are telling us that "the whole system is going down".
Yes, a devastating financial collapse really is coming. Just like in 2008, it will seem like the "end of the world" while it is happening, but it won't be. It will severely damage our financial system and our economy, but it will not finish us off.
Think of it this way. When you build a sand castle at the beach, it doesn't get totally wiped out by the first wave or the second wave that hits it. Each wave does significant damage, but the destruction of your sand castle is a process.
It is the same thing with the U.S. economy. We once had the most incredible economic machine that the world has ever seen. It is constantly being gutted and the financial crisis of 2008 hit us really hard, but we are still doing okay.
After this next financial crisis we will be in even worse shape. But we will still be breathing.
More "waves" will come after this next financial crisis. If we continue on the road that we are on, our economy will progressively get worse and worse.
Not everyone will agree with this analysis, and that is okay. In the end, time will reveal the truth to all of us.
Right now, we all need to get ready for the next wave that is about to hit us. A lot of people are going to lose their jobs over the next few years. Hopefully you are prepared for that.
It is getting worse, Spanish interest rates are starting to spike. “Too big to fail, and too big to bail out” is failing. The ECB has got to step in and start monetizing this debt or the dominos are going to start to fall.
These bankrupt European countries with their bankrupt banks. It makes perfect sense that our banks would want to invest so heavily invest in them.
Dr. Pippa Malmgren is quoted as saying ‘Ultimately, I will not be at all surprised to see Europe’s banking system shut for days while the losses and payments issues are worked out. People forget that the term “bank holiday” was invented in the 1930’s when the banks were shut for exactly the same reason.’
No, it was not invented then, and if she genuinely thinks that she is remarkably ignorant of the history of banking for someone who is supposed to be an expert.
Bank holidays started in the U.K. as a regular part of the calendar, not an emergency arrangement at all, when banks suspended doing business with the public and outside firms so they could bring their own books up to date. This enforced a holiday for everybody else, and gave rise to the name – long before the 1930s. Other countries may well have followed the practice too, but what happened in the U.S.A. in the 1930s was an emergency arrangement that was deceitfully called a bank holiday so as to make people think of the routine, non-emergency arrangement. The whole point was not to invent a new term at all, but to hide behind an old, comfortable one! These days, of course, the U.S.A. only remembers the emergency arrangement, but if Dr. Malmgren really thinks the term was invented then, she isn’t merely ignorant of its origins, she is ignorant that its origins matter – they provided sheep’s clothing for Roosevelt’s wolf.
[...] Here’s the first bit of Michael’s article: 17 Quotes About The Coming Global Financial Collapse That Will Make Your Hair Stand Up [...]
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Shariah-compliant economy is the way forward. Hope now the Europeans and North-Americans will learn from Islamic economic principles.
Saajid,
Which national economies are Sharia-compliant?
Does Iran have a Shariah-compliant economy?
I don’t think the citizens of Iran are currently pleased with their job opportunities. There is much social unrest in Iran right now and at least part of it hinges on economic conditions.
Sharia law is a joke when it is run by psychopaths who can make arbitrary decisions and are not bound by any rule of law. The old USSR had a constitution that sounded like the US constitution. In practice it was just a bunch pof despots ruling over the little people. Does any country with “sharia law” value liberty, personal property and other basic rights? I think not
“This thing is collapsing. You better get ready for the big crash. It’s coming, and it’s going to wipe out a lot of people. There’s no salvaging this Ponzi scheme.”—Gerald Celente
No, this Ponzi scheme cannot be salvaged. All the bailouts and all the stimulus in the world cannot save this dysfunctional mess of an economy in The Banana Republic of America (formerly Los Estados Unidos). This is a very sick and diseased economy, and when the depression becomes much worse, it will make the Great Depression of the 1930s look like a picnic at the Jersey Shore. The BRA is not in a recession–it is in a DEPRESSION. And a few years down the line, we could easily be looking at 40% or 50% unemployment. That’s how grave the situation is.
These are incredibly dark and perilous times in The Banana Republic of America, formerly the USA. Que dios nos ayude.
God, gold, guns, ground, and grub
Enjoy eating gold. this sounds like the millennium scarey people advice from 12 years ago.
I say screw god, grab the gold, load the guns, go for ground and you can cook the grub tonight.
Where’s the pepper and salt?
Did you remember to bring cutlery?
Bring it on.
God, gold and guns..
GOODs, gold and Guns. “God” can come along if he wants, but he better bring his own…
They’re goat hooves, because we used to throw goats off cliffs as sacrifices and scapegoats, once a year on Yom Kippur, the day of atonement. It essentially amounted to a big, annual party and barbecue–we would have two goats…one to eat and the other to throw off Mount Azazel. The scapegoat carried all the people’s sins down the cliff, and was labeled evil. I’m thinking we used to throw people off the cliffs at one point. Probably a practice way before Christians.
At any rate, the goat and the human became synonymous, probably as a convenience in art to symbolize an evil person. The great scapegoat.
Also this fits in nicely with the fact devils are also pictured with wings, as they could have used them when they got pushed off the cliff. You will remember that we have fallen angels, because they fall off the cliffs. get it? haha
“Fall guy” and “taking the fall” are nice terms for scapegoat, which means fall off the cliff. I’m guessing people were thrown off the cliff whenever they pissed someone off. A devil is just an angel that really pissed someone off so that they have hooves *and* wings. In the end both got murdered though. The wings also were a convenient symbol for people sacrificed and thrown off the cliff.
Nice story, eh?
Azazel
Oh yes, cherubs have wings too. I’m guessing infanticide was a big problem.
Infanticide
We are reaching the low sweat stage of this crisis. People are starting to figure out what a nightmare we face. Reports are comming in of sales spikes in survival food and gear!
http://stlouis.cbslocal.com/2011/11/23/survival-shop-reports-jump-in-sales-to-people-preparing-for-possible-collapse/
The principal reason for Dr. Ron Paul’s present political prominence (and why the old, dying, morally and intellectually and fiscally bankrupt “mainstream” media are determined to ignore him out of the public eye in spite of his popular appeal and polling successes) is that when he got into the nomination race in 2007 he flatly and implacably predicted the U.S. financial melt-down that resulted from the government-induced residential real estate bubble which hammered our country in 2008.
The man looked prescient. He saw it coming, explained it in advance (in spite of all the handwaving and lies of the bureaucrats, the “Boot-On-Your-Neck Party” politicians, the Federal Reserve and Wall Street banksters), and hammered his message home.
While he’s been continuing to do much the same thing in recent months as he’s made his current run for the Red Faction presidential candidacy, he doesn’t seem to be pounding away at the continuing and worsening financial crisis, especially with the fiat fantasy of the Eurozone – a common medium of exchange in that market which is (and has always been) purest counterfeit – biding inexorably to drag down the Obama-wrecked U.S. private sector in a cataclysm that will make all prior financial panics in history look like a college fraternity picnic taken over by the Occupy Wall Street goons.
So why the hell isn’t Dr. Paul beating that drum right now?
With everything we’re seeing in the MSM – in spite of our “Journalistas” desire to disguise and dissemble – it would seem to be a natural appeal to the people of these United States, and a virtual guarantee for Dr. Paul in burying forever our Massachusetts Mamzer, Mitt “the RINO” Romney and every other incompetent whacko in the contest.
The banks got rid of the wrong “Toxic assets” They should have fired the crooked CEO’s and their incompetent and financially ruinous practises a long time ago. Why arent more of these crooks in Jail. There are plenty of laws – but noone seems interested in enforcing them. Just holding their hands out behind their backs for a little graft…
This Christmas time makes a fine time to give each other survival type gear. Among other things my wife is buying me a solar powered cell battery charger with various cell batteries and I am buying her rain barrel for the downspout. I have other things on the list: a Coleman dual fuel stove, some canned food from Augason Farms though Sam’s Club, and General Ecology First Need XL Portable Water Purifier with an extra filter canister. Make this a very practical Christmas.
one rain barrel will not be enough, but is a great start, i have 10-275 gal elevated tanks off my house and shop. i flush one toilet with 3 of the tanks, and use others for garden water, and even that is not enough. get the sawyer water filter for 46 bucks on line as it filters one million gallons.
The answer to what will happen was written thousands of years ago by men called Prophets. I have written about it on my website also. Nuclear War this winter will kill half the USA and 2 Billion of the rest of the world. Shelter, water, food, warmth, will be all that matters. Also Potassium Iodide to help resist the radio-active iodine 131, and 133 in all fallout.
Target maps on my FREE Website. FREE shelter Plans and some of my own Visions of the surprise attack. Google Parowan Prophet, Because I live at 6000 feet high in Southern Utah. Isaiah 2:2 and Micah 4:1 Bless you that can read. Others who can’t will die soon.
While things are bad right now for many, in the next 12 months thing will be bad for all. The economies of the world will collapse and America’s will be worst in history on many levels. When the Entitlement nation’s creditors ( who themselves are in trouble ) quit lending and the game can no longer be prolonged because it can’t be funded, then that thin veil of civility that Michael alluded to in a previous article will rapidly deteriorate as the people become desperate for even the basics of life. This will be a surreal experience to behold. America’s standard of living has been so ridiculously high and easy credit has made it possible for so many, who otherwise would have been forced to live within their means, to attain a standard of living that they will not be willing to let go of without a fight. Yes, your neighbors will turn on you, in the name of survival as entitlement nation implodes. As the money becomes worth less and then eventually worthless, the government will have to implement austerity measures, medicare, medicaid, food stamps, social security and other programs that many in this nation depend on… gone or severly cut almost immediately. Then you will experience hell on earth as the law of the jungle replaces the law of God. I bet on that day, many of you who thought that God’s laws were a joke, a burden, an obsticle in the path of your self serving, hedonistic lifestyles, you will beg to have a society that lived according to biblical principles. But for now, welcome to entitlement nation, where truth has stumbled in the street. Every knee will bow to Jesus Christ, mine does and will because he is the Son of God… yours will also. For all who trust in Christ already, stand firm to the end, and let no man take your crown.
I would recommend reading Brotherhood of Darkness by Dr Stanley Montieth to gain a clear understanding of what is happening to and in America.
Give to ceaser what is his and everything else to God. God is our only hope. Jesus is our salvation. When it all hits the fan, I pray that the rapture will happen and no one who has beleived in Jesus will be here to worry about all this mess the government (saten) has gotten us into. BEEM US UP JESUS, THERE’S NO INTELELLENT LIFE DOWN HERE.
Jane: It is clear that you lack a fraction of the intelligence of your direct genetic ancestors. I should know, I was once in your place reading the likes of ‘The Left Behind’ series. I suggest you begin reading anything by Robert M. Price or any one of the Jesus Seminar fellows to gain a historical perspective on Jesus, whose actual name was heshua (yeshua) bar yoseph (or miriam). From there you should move on to some Carl Sagan or Stephen Hawking. Look in to going back to school. You clearly understand nothing about ancient scripture (I doubt you’ve read much as well) and are an insult to anyone who actually devotes their life to such an endeavor. I know it’s difficult to break down your worldview, but living in an alternate reality is only disabling you from truly living in the Here & Now. You will never be beamed (no, it’s not spelled beem) up to an archetype that may or may not have existed, and Satan (no, it’s not spelled Saten) does not exist either, but I’ll let you take the time to look up its orgin. It is people like you that scare me. It is people that side with irrationality and cower in the face of fear, rather than turn to logic, intelligence, and facts to guide their lives. We’re all coming into knowledge at our own pace, albeit some much more slowly than others, and we’re all walking each other home in this cosmic dance. Please do yourself a favor, wake up, open your eyes, you’ve been stuck it the darkness of ignorance with so many others for so long.
It was around this same time a year ago when I first began to hear such reports of impending economic disaster with shock and disbelief. Yet just about every single prediction has come true, particularly Gerald Calente.
David Icke in the 90′s analysed the casino type world financial system.
Many did / do not take him seriously.
But he predicted all this using logic and common sense.
Read his book ” The truth shall set you free”
Times up for Free Masons.
you don’t play with the binary system (zeros and ones 1,000,000,000,000,000,000,000,000,111,111.1011,)
and get away with it.
While the world crumbles around us our news is filled with who, Dancing With the Stars last night.
Our unemployment is so bad the Government has to fudge the figures and the 9% they claim is really more like 16%.
Our leaders tell us “Don’t Worry – Be Happy” things are turning around and getting better – are they?
More and more business is going OUT of business. See our web site at: http://worldendsat5newsat11.blogspot.com
The time to buy gold & silver is past, now it’s time to buy food, weapons, water filters, firewood, cooking fuel, non GMO seeds, survival supplies as time is very very short…
God Bless & Keep You in his Grace
Tony & Bobbie Lamb
“there is a lack of leadership in the United States and Europe right now.” Well, this is a perfect time for the final leader to come into power. First, we will need some really hard times so that the people will cry, beg, and demand that he take over. Man, I am hoping that the rapture is true. I do not want to be here for the first 3.5 years. Adios
Read the book Brotherhood of Darkness by Dr Stanley Montieth and recommend it to others. Definitely enlightening about who why and how of America and the world’s intentional takedown.
[...] truth, we are looking at a coming global financial collapse with experts from Credit Suisse to the Deutche Bank, the CEO of General Motors to Warren Buffett, [...]
It seems to me that it is now time to start a online peoples credit system to side step most of the finnacial fallout to come
As we approach a very bad time in history for the US I would suggest those who doubt how bad things can get look at the moset recent examples of a countries finiancial collapse. Specifically Argintina in 2001 and Iceland 2008. I think that the US will be far worse then Argintina when the collapse occures with widespread vilolence high unemployment, and empty grocery stores. Best advice is to follow the Boy Scouts Motto and be prepared.
want to subscribe
22-reasons-why-we-could-see-an-economic-collapse-in-europe-in-2012
Maybe yes maybe not.
The economic collapse already started in the US.
This country is rich. Only a bunch of very clever and evil people have ruined this country. The devil has given you doubt and you belive it. Doubt, despair and revolution is what the devil wants and people like obama,soros, pelosi, reid are of that group. Some look kind and gentle in their old age, sometimes even saintly. No, bush not not get off the hook either, fine nafta globalist he was and is. Nobody hears the good and the wise, they are often softspoken and speak the truth like Michelle Bachman, thinking that virtue will win out, champion players left sitting on the bench for they do not boast and may not be so good at selling themselves or often thinking thay do not have to. That good will prevail. Well its obvious good has not been prevailing lately. We tend to think that those in power are mature and looking for the countries own good. My dear friend how would you like a nice cold cup of cool aid?
During the last century a real phophet from Heaven wrote about these times .Actually she just explained in precise language what was written centuries earlier in Revelation .These things indeed are coming to pass . See E.G.White , “The Great Controversey ” . This is from a source , the only real one who can really peer into the future , God , aka Jusus.
[...] the fact that Europe is in a huge amount of trouble and is most likely headed for a very painful financial collapse.One more thing that this latest move by the central banks of the world highlights is the fact that [...]
[...] 17 Quotes About The Coming Global Financial Collapse That Will Make Your Hair Stand Up Jim Reid of Deutsche Bank: “If you don’t think Merkel’s tone will change then our [...]
AT WHAT AGE LIMIT WILL YOUNGER PEOPLE RECEIVE NO SOCIAL SECURITY BENEFEITS AT ALL?
This newsletter reminds me of “the war of the worlds”. I bet this world economies will not come crumbling like pundits have predicted. I am an optimist, and besides, we have experienced worse or similar economic meltdown after the second world war, yet the financial institutions put their acts together and the world’s economy started taking a giant leap. In the face of global innovations and technological advancement, we can only draw a blank to imagine that markets will go down to the dooms.
Jesus said: “He who knows the father and the mother will be called the son of a HARLOT!”
That’s where all the money is going, right inside the big black HOLE.
I know this is much later than the other posts, but came by this and had to say something.
First of all…. I was a better atheist than anyone who posted in this lobby. I was well researched, informative and actually scared many “Christians.” You anti-god people in this lobby are WEAK at best. You don’t really put up an argument, but rather continue your pointless bantering that reminds me of a crying child. Which one of you actually brought a verbal fight to the table??? The remarks are more akin to…. “I need attention, please look at me.” Which one of you bared any resemblance of an augment?
But like I said, I was an atheist… Jesus is lord, undoubtedly. Praise him for loving this loser and coming into my heart. Of course for me it took meta-physical miracles, but he still held the 99 to find the one lost. The ironic part about all of this is that one does not have to look too far in life to witness gods loving miracles.
For my brothers and sisters, why would you build a city on a hill to hide it, or hide a light under a bowl?
Do you remember the story of Elijah surrounded by the Army? Daniel in the lion’s den? The three or four people in the furnace? The king is with us, and will not forsake us. He sees his people though their time of trouble. Righteous are his judgments, forgiving his demeanor, and infinite is his patience.
This collapse is coming and is clearly throughout the bible. So yes prepare…… But more so, chase him will all of your heart.
Do you remember your first love? Remember chasing that person? Remember the fire that burnt for that person? Do you have the same fire burning for I AM THAT I AM? This is personal I understand. But chase him harder, and NEVER deny him, but rather be that shining light in love we are commanded to be.
Praise God of Abraham, Enoch, Isiah, Joseph, Noah, Paul
Future atheist (non-complainers) … Please have a valid argument.
what do we do with our money to prepare