Jump to content
House Price Crash Forum
Scott Sando

The Elite Call For A Extra 100 Trillion

Recommended Posts

Davos: The World needs $100 trillion more credit, says World Economic Forum

January 20th, 2011

Share | By Emma Rowley8:49PM GMT 18 Jan 2011

The world’s expected economic growth will have to be supported by an extra $100 trillion (£63 trillion) in credit over the next decade, according to the World Economic Forum.

This doubling of existing credit levels could be achieved without increasing the risk of a major crisis, said the report from the WEF ahead of its high-profile annual meeting in Davos.

But researchers warned that leaders must be wary of new credit “hotspots”, where too much lending takes place, as the world emerges from a financial catastrophe blamed in large part “to the failure of the financial system to detect and constrain” these areas of unsustainable debt.

“Pockets of credit grew rapidly to excess – and brought the entire financial system to the brink of collapse,” said the report, written in conjunction with consulting firm McKinsey. “Yet, credit is the lifeblood of the economy, and much more of it will be needed to sustain the recovery and enable the developing world to achieve its growth potential.”

The global credit stock has already doubled in recent years, from $57 trillion to $109 trillion between 2000 and 2009, according to the report.

The WEF said the continued demand for credit could be met “responsibly, sustainably – and with fewer crises”. However, it cautioned that to achieve this goal, financial institutions, regulators, and policy makers need more robust indicators of unsustainable lending, risk, and credit shortages.

There you have it, enjoy the inflation and the transfer of your wealth to the elite through inflation, enjoy. My link

Share this post


Link to post
Share on other sites

I thought this was going to be a link to the daily mash, along with this picture.

dr-evil.jpg

Once again, what a few short years ago would have been parody, is now reality.

That by my calculation means they will be able to lend 1000 trillion, but thats if they lend it.

Share this post


Link to post
Share on other sites

Has anyone fallen for the tory propaganda that they are cutting the deficit. They say they are going to cut 6 billion from the debt, well, they borowed 15 Billion in december alone, so our debt is rising. Printy, printy

Share this post


Link to post
Share on other sites

Mckinsey got paid how much to peddle this ? :o

"This doubling of existing credit levels could be achieved without increasing the risk of a major crisis"

Exactly how can you double credit levels and not increase risk ? The only way I can see is if you double what is available - but don't actually give it to anyone. The second you give out any additional credit there is INSTANTLY higher risk attached.

It is pretty simple logic.

Share this post


Link to post
Share on other sites

Has anyone fallen for the tory propaganda that they are cutting the deficit. They say they are going to cut 6 billion from the debt, well, they borowed 15 Billion in december alone, so our debt is rising. Printy, printy

Are you sure you understand the difference between debt and deficit?

They aren't interchangeable you know.

Share this post


Link to post
Share on other sites

Bring me a f4cking unicorn so I can drink its tears, I feel I need to celebrate this fantastical news in a befitting manner.

If you ever needed more evidence that the debt money system is broken, this is it. Buy hard money and wait, you will be well rewarded.

Share this post


Link to post
Share on other sites

Bring me a f4cking unicorn so I can drink its tears, I feel I need to celebrate this fantastical news in a befitting manner.

If you ever needed more evidence that the debt money system is broken, this is it. Buy hard money and wait, you will be well rewarded.

Good advice, but it really is terrible news, they'll make us a third world country, we need default now. Hard money will still do well in that enviroment.

Share this post


Link to post
Share on other sites

Good advice, but it really is terrible news, they'll make us a third world country, we need default now. Hard money will still do well in that enviroment.

The banks are in control though Scott, the best one can do is grab some hard assets, discharge any debts they have and cross their fingers.

Well, we could always go out and start burning some banks, but I think it may be tool late by the time people get that angry.

Share this post


Link to post
Share on other sites

I thought this was going to be a link to the daily mash, along with this picture.

dr-evil.jpg

Once again, what a few short years ago would have been parody, is now reality.

It really is on that level of idiocy, thanks, made me laugh.

Share this post


Link to post
Share on other sites

The banks are in control though Scott, the best one can do is grab some hard assets, discharge any debts they have and cross their fingers.

Well, we could always go out and start burning some banks, but I think it may be tool late by the time people get that angry.

Yes the policy is there to help the banks at everyone else's expense, Thats why I really like hard money because its a big two fingers to them!

Share this post


Link to post
Share on other sites
Tuesday, January 25, 2011Global Insiders Warned: U.S. Debt Crisis Could Explode at Anytime

Global insiders are starting to gather in Davos, Switzerland for this week's World Economic Forum. JPMorgan Chase's Jamie "Obama's Favorite Banker" Dimon will be there, as will be Treasury Secretary Geithner.

When attendees arrive and check in, they will be given their badges and a copy of a special Davos magazine, prepared especially for the event. In the magazine will be an article by Robert Rubin. He is an insider's insider. Participants will read the article. Rubin is so wired in that when insiders think of the people who are operating behind a president, it is names like Rubin's that come to mind. Jacob Lew the new director of the Office of Management and Budget is connected to Rubin. The old director of OMB, Peter Orszag, was connected to Rubin. The new head of the National Economic Council, Gene Sperling, is connected to Rubin, as was the previous NEC head, Larry Summers. It goes on. Rubin served as Treasury Secretary under Bill Clinton. He was former co-CEO of Goldman Sachs. He is co-Chairman of the Council on Foreign Relations. Got the idea? Insiders will read what he has written.

The first part of the article is about what the United States needs to do to get the economy going. It is a desperate shot taken at the buzzer from beyond half court. Rubin knows this. He is also a Keynesian, so his recommendations call for more spending that he hopes can be reversed in two or three years, once the economy "gets going". It won't work. The shot will fall short of the rim.

The second part of the article is much more significant. It is the breakdown of what is going wrong in the United States. An abbreviated version of the "Davos Warning" has been printed in FT.

Rubin wrote (my emphasis):

The risks of our fiscal position are serious and multiple. And while these risks become more severe over time as our debt position worsens, all of these either have begun to materialise or could do so in the near term, so we should act now.

What multiple shapes could the crisis take? Rubin writes to the Davos insiders (My emphasis):

To be specific about the risks, deficits could crowd out private investment, which could choke off a private investment recovery. Moreover, the capacity for public investment is already diminishing, and could be exacerbated by growing entitlement costs and mounting interest payments...

Most dangerously, there is a risk of disruption to our bond and currency markets from the fear of much higher interest rates due to future imbalances or from fear of inflation because of efforts to monetise our debt. The result could be significant deficit premiums on bond market interest rates, seriously impeding private investment and growth or, worse, acute bond market declines that cause an economic crisis. This could also start in the currency markets.

While the likelihood of major market disruptions is greater in the intermediate and longer term, the shorter-term risks are also real. Market psychology can change unexpectedly and dramatically – either on its own or because of some catalyst – when underlying conditions are unsound. Possible catalysts are a debt ceiling confrontation, currency market problems, and state deficits...

For emphasis, I remind you this is a former Treasury Secretary of the United States writing. One of President Obama's top outside advisers. So does Rubin think there is an easy solution to the debt problem? He writes:

Growing out of our fiscal morass over time without policy action would require inconceivable rates of growth. Muddling through with unexpectedly favourable developments is extremely unlikely. The strong probability is that either we make the hard decisions so vital to our future, or we will be forced at some point to act more harshly and with less time to thoughtfully set priorities. Our long history of political and economic resilience should augur well. But these decisions are extremely difficult, and the question is whether we have the political will to face up to what we must do.

There you have it, from a man as inside as you can get:

...our structural fiscal trajectory is unsustainable with multiple, serious risks (while at the same time, our large cyclical deficits are exacerbating debt levels and interest costs)...

Bottom line: The United States is in serious financial and economic trouble. It is only a matter of time before the crisis explodes. Don't take my word for it, just re-read what the former Treasury Secretary has to say. It's all there

government policy is created in think tanks and talking shops like Davos, CFR, RIIA, Bilderberg, trilateral commission.

Edited by Scott Sando

Share this post


Link to post
Share on other sites

The ponzi continues... No wonder they are trying to drive Gold down, they want us holding this unbacked worthless paper shite they are touting - fook that.

Most still don't get it Mr Flibble, but then I like being a nonconformist!

Share this post


Link to post
Share on other sites
Rubin served as Treasury Secretary under Bill Clinton. He was former co-CEO of Goldman Sachs. He is co-Chairman of the Council on Foreign Relations. Got the idea? Insiders will read what he has written.

This is the guy whose stunning insight led him to oppose the regulation of derivatives- why does anybody take these idiots seriously?

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.