Tuesday, February 3, 2009

A view of the collapse to come

Economic & Financial Markets Forecast 2009: Collapsing Global Financial System Ponzi Scheme

As economic activity and PONZI finance fall off the face of the earth, we enter the stretch run of the CON game known as the Bond and FIAT currency markets. Although both are headed for their ultimate demise, the path will be quite different. In 2009, these challenges will be headed your way. Prepare properly and thrive, or fail to do so and fall to your demise.

Posted by sold 2 rent 1 @ 09:57 AM (1783 views)
Please complete the required fields.



33 thoughts on “A view of the collapse to come

  • sold 2 rent 1 says:

    “But the biggest deadbeats are the G7 governments themselves, perceived as being almost risk free; this could not be further from the truth. The level of G7 government debt as a percentage of GDP is many multiples of GDP. Most obligations are held OFF THE BOOKS to fool the broad public and INSTITUTIONS who purchase much of it. The US government’s liabilities are now almost $60 trillion, and CLIMBING at almost $10 trillion a year if properly accounted for. This is in an economy of $13 trillion BEFORE the unfolding collapse in GDP. “

    Reply
    Please complete the required fields.



  • happy mondays says:

    You can almost smell the rot in the air ! i can imagine the scene in Apocalypse now, when Robert Duvail is on the beach, but this time as a corporate banker, smiling and saying ” I love the smell of napalm in the morning “

    Reply
    Please complete the required fields.



  • sold 2 rent 1 says:

    “I feel sorry for and am saying prayers for the UK as it is headed the way ICELAND is; the economics I have seen are absolutely HORRIFYING. Alistair Darling and Gordon ‘Sold the Gold’ Brown just this afternoon directed the Bank of England to start BUYING assets; this is also known as ‘Printing the Money.” I am sure they wish they had that “barbarous relic” which was SOLD at the LOWS in 2001. The Bank of England does not have the ability to deal with the enormity of the problem as it is multiples of GDP. Soon UK gilts will crash. “

    Reply
    Please complete the required fields.



  • sold 2 rent 1 says:

    “As the G7 financial system and banks GRASP for survival, they will bring down the FIAT currencies with them; it will be like a game of DOMINOES. One thing leading to another and what a glorious journey it will be for PREPARED investors. “

    Reply
    Please complete the required fields.



  • Signs of Sanity

    This collapse is occurring with stunning speed. Public statements that the banking system is insolvent have become commonplace, and the discussion over closing the zombie banks, instead of merely bailing them out, is now spilling over into the press. Nobel Prize winner Paul Krugman has called publicly for closing zombie banks

    The Bank of England, established in 1694, and originally constructed on top of a Mithra temple, has long been a key vehicle for financier control of the British Empire. Used by the Venetians to take over England, it has been the model for the central banking system through which the oligarchy has ruled the world. It is the model for the essential features of the Fed, the central banks of Europe, and the ECB.

    If the Bank of England is going to be used to fund a bailout on a large scale, then the Bank itself will inevitably be destroyed. A decision to do that, would mean that the top families have decided that the complete collapse of their financial system is inevitable, and that they are in survival mode, going to ground, in the hopes that they can emerge later, after the dust settles, to take control of whatever is left.

    Reply
    Please complete the required fields.



  • However, there is real panic in the City of London, and in the British government these days, as the financial system upon which the income of the empire depends disappears, and what passes for the British nation begins to disintegrate. The situation is so grave that the inner core of the oligarchy—the relatively small group of families which dominates the rest—may believe that they have no choice but to sacrifice some of their valued assets in order to save themselves.

    EIR as above

    Reply
    Please complete the required fields.



  • I’m always a little bit SCEPTICAL when I see an article that uses fancy fonts and CAPITALS to make a point.

    I see a Rush Limbaugh type figure at the other end, shouting as he types …

    Reply
    Please complete the required fields.



  • Economist Nouriel Roubini told a conference in Dubai Jan. 20, that financial losses could reach $3.6 trillion, and that if so, “the U.S. banking system is effectively insolvent because it starts with a capital of $1.4 trillion. This is a systemic banking crisis.”

    The bankruptcy of the system is no longer a secret, whispered in the inner sanctums of the banks. It is out in the open, as is the debate over what to do next. Many influential players now agree with LaRouche’s diagnosis of the problem, but are having trouble with the solution.

    Reply
    Please complete the required fields.



  • sold 2 rent 1 says:

    troy,

    “A decision to do that, would mean that the top families have decided that the complete collapse of their financial system is inevitable, and that they are in survival mode, going to ground, in the hopes that they can emerge later, after the dust settles, to take control of whatever is left.”

    ETHICS to overcome POWER.
    POWER is clearly failing but where are ETHICS?
    Will they emerge predominantly from the East?
    Will the East be offering the West humanitarian aid by autumn 2010 after our banks/governments have collapsed?

    Reply
    Please complete the required fields.



  • This reads like a street preacher. Awful.

    Try said “there is real panic in the City of London” – really? How would you know this – are you somewhere in the middle of it?

    Reply
    Please complete the required fields.



  • 666 re panic ~~~ that was a quote from EIR intended to provoke discussion not abuse, see above

    btw try troy

    what reads like a street preacher 666?

    Reply
    Please complete the required fields.



  • The system is always bankrupt even when it’s working as it should, the amount of $ dominated assets in the world is a small fraction of the $ dominated liabilities.

    Reply
    Please complete the required fields.



  • But (nearly) everyone on this site knew the banking system was always bankrupt by the very nature of FRB.

    The only thing new is the loss in confidence. The BOE was the buffer that protected individual institutions (i.e. runs on a bank), it was never intended for an event when confidence in all institutions is gone (multiple runs). The only difference between pre-08/07 and now is confidence and trust, that is gone forever and until people stop talking about bankrupt banks and focus on a monetary system not built on debt things will not get better. Double talk is not dead yet.

    Reply
    Please complete the required fields.



  • “a monetary system not built on debt ” quite so matt

    from Sabine :- FORUM fOR STABLE CURRENCIES
    Advocating the use of People’s Credit*
    for the People’s Purposes – since 1998
    http://www.forumforstablecurrencies.org.uk/index.htm

    Debunking Economics: the naked emperor of the social sciences by Associate Professor Steve Keen explains to non-economists why conventional economic theory–known as “Neoclassical Economics”–is fundamentally flawed.

    This should come as no surprise, as the world wallows in the deepest financial crisis it has experienced, but it has been hidden from public view to date by the academic profession’s habit of ignoring any substantial criticism.

    Given the mess that the world economy is now in, economics can no longer simply ignore its own flaws. But knowing why the theory is wrong takes effort. In this book, the author explains the many technical flaws in neoclassical economics in a manner that any intelligent reader can understand.

    The book was first published in 2001, and continues to be published in hard copy format today by Zed Books UK. The author’s prediction of the financial crisis has led to increased interest in his approach to economics, and he has decided to produce an eBook version of it to make it more accessible.

    For more, visit his website http://www.debunkingeconomics.com, or my Detwatch blog on the financial crisis http://www.debtdeflation.com/blogs.

    http://moneyasdebt.wordpress.com/2009/01/31/debunking-economics/

    Reply
    Please complete the required fields.



  • Troy –
    I suggest putting quotes around quotes, furthermore I see no one called EIR and no reference above. Also I gave no abuse, I asked you a question!
    Try == Troy, I nearly posted to correct myself, but thought you’d realise, and, hey what a surprise, you did.
    “what reads like a street preacher” – the article does.

    matt_the_hat – sure modern finance is all about credit, and credit is just a derivative of trust.

    Reply
    Please complete the required fields.



  • mountain goat says:

    Pity about the writing style of the article. However it does point out that the key thing is the government bond markets. If they collapse then that will be 10x worse than any stock market collapse. This is why the bailouts should stop, because they threaten a bond market collapse due to falling trust in governments. However, there is probably little choice but to shift the toxic financial poison from banks onto governments. If it stays with banks they fall causing tidal waves. If it goes to a “bad bank” owned by governments it undermines the bond markets threatening an even worse collapse.

    IMO the UK and USA bond markets will not be the first to fall. This year I expect many former east block countries to collapse first or some of the weaker Euro countries. The IMF will be over-whelmed. After that maybe the UK and USA, but if they realise the danger soon enough they might have time to adjust from their current suicidal path.

    Reply
    Please complete the required fields.



  • MG agree, the primitive delivery would tend to alienate most. Never understand why people who are writing on the fringes (and may be hitting some important points) undermine their message in this way.

    Reply
    Please complete the required fields.



  • At the end of that I was expecting to be told the author was the wife of a Nigerian Goverment official who would share 20% of their $545.3M fortune with me in return for my bank account details.

    Reply
    Please complete the required fields.



  • sold 2 rent 1 says:

    bellwether,

    “MG agree, the primitive delivery would tend to alienate most. Never understand why people who are writing on the fringes (and may be hitting some important points) undermine their message in this way”

    I guess this is the way our global consciousness is allowed to evolve at a steady rate.

    1. First we have the message, rough and ready, but rejected by the masses on presentation.
    2. Gradually the message gets presented better and with more credible evidence to back it up.
    3. Finally we have very credible sources presenting very credible evidence that only a few will reject.

    I remember a few people even refusing to watch Ian Lungold’s videos because he was wearing a dodgy shirt.

    Reply
    Please complete the required fields.



  • MG….. Also agree and more importantly can understand what you are saying clearly. I think you are spot on in your second paragraph as well. Those that don’t run the show will fall first whether by sacrifice or lack of strength. As the structure as a whole weakens, the IMF can only do so much.As the structure weakens pressure on the USA and UK will require strong support from the Far East or they will eventually collapse themselves.

    Reply
    Please complete the required fields.



  • mountain goat says:

    Yesterday there was a post here on HPC that did not cause a stir Bloomberg: Treasury Real Yield at 16-Month High on Inflation Bet. Main-stream media will interpret increasing bond yields as a sign of increasing risk of inflation, not lack of trust in governments. The worm is turning…

    Reply
    Please complete the required fields.



  • fahrenheit451 says:

    Agree with above, but we need to focus on how to get out of this mess (and try to prevent it happening again), otherwise the financial crisis will just be the tip of the iceberg. You can only go on for so long, passing the manufacturing to the “developing world”. Soon’ish, they will want to get paid a proper wage and join in the benefits, do they then pass it to the 3rd world, where corruption is rife?

    Reply
    Please complete the required fields.



  • sold 2 rent 1 says:

    plato,

    “As the structure weakens pressure on the USA and UK will require strong support from the Far East or they will eventually collapse themselves”

    My interpretation of Calleman’s model is that POWER will transfer from West to East during summer/autumn 2010. The above statement shows how this will happen. The power the East inherits should be more ETHICAL too.

    My strategy: sell out of gold/silver at the peak of the mania in March/April 2010 and into Asian currencies to escape the G7 collapse

    Reply
    Please complete the required fields.



  • mountain goat says:

    I have my doubts about the East. So does naked capitalism
    “I have been writing about an Asian black hole for almost two months now. I have been crying from the rooftops about an emerging depression in Japan. It has been as though a neutron bomb had gone off in the world. There was no one who seemed to notice, no one who seemed to listen.

    Every week it gets worse and worse and worse. Today it was Japan….

    THERE HAS NEVER BEEN DATA THIS BAD FOR ANY MAJOR ECONOMY – EVEN IN THE GREAT DEPRESSION. December industrial production came in down 9.6%, worse than the METI forecast. It is now down almost 21% year over year. METI forecasts a further 4.7% decline in February. The inventory to production ratio soared again. Maybe METI will be correct.

    If it is, Japan industrial production will have fallen 28% (non annualized) in four months. It will have fallen by a third in about a year. Nothing in the history of major nations compares. A 28% decline in four months would be more than half of the entire decline in U.S. industrial production over the 3 years and nine months of the U.S. Great Depression.

    It would be a greater decline in four months than in any 12 month period in the Great Depression in the U.S. We are literally looking at the unimaginable. (I am attaching the U.S. industrial production index from the Great Depression for comparison).

    IT’S A DEPRESSION IN JAPAN – ALREADY – PURE AND SIMPLE.”

    Reply
    Please complete the required fields.



  • Perhaps this would be an appropriate place for JU to comment…….. In my limited knowledge of the Far East I sense an air of Dignity and Ethics. This is historical and embedded in those societies which rule strictly and with an honour that is held accountable by the highest means : One’s life.
    I am not saying corruption is less. I am saying there are standards set in concrete that are vital to their societies. They do not waiver in their accepted traditions. In this sense their ethics are stronger than ours and I believe there is not one thinking man in the West who does not recognise their honour,virtue and the respect it conjours.
    Perhaps we could and will progress with some of this ourselves.

    Reply
    Please complete the required fields.



  • sold 2 rent 1 says:

    MG,plato

    When I talk about buying Asian currencies in 2010 it will probably be Indian Rupees.

    Japan is a unique country as it is the only G7 country to be located in the East.
    At the end of the last 6th night (1992) power was consolidating in the West. The Soviet Union was imploding and Japan’s bubble crashing.

    So in autumn 2010, are we going to see new ties between China and Japan, and will most of China’s bailout money in 2010 being aimed at Japan, not the West as a whole?

    I hate to bring it up, but the US HAARP earthquake machine blasted both China and Japan in 2008.
    Time for payback?

    Reply
    Please complete the required fields.



  • Didn’t expect to encounter Tesla stuff on this site. There are certainly some interesting people contributing to this blog.

    Reply
    Please complete the required fields.



  • Didn’t expect to encounter Tesla stuff on this site. There are certainly some interesting people contributing to this blog.

    Reply
    Please complete the required fields.



  • don’t forget Iran and Banda Acer

    extremist would say New Orleans

    but then they would probably question what hit the pontaloon, er, pentagoon, er, pentangle headquarters, oh I don’t know.

    Reply
    Please complete the required fields.



  • sold 2 rent 1 says:

    flintster1994,

    Nice article…and today

    “Although Sichuan is an earthquake-prone region, many scientists were caught by surprise by the magnitude of the quake. Christian Klose, a scientist at Columbia University’s Lamont-Doherty Earth Observatory, said there had not been any “major seismic activity” on that fault line for millions of years.”

    This is a cover up story.

    Reply
    Please complete the required fields.



  • flintster1994 says:

    s2r1,

    I’m don’t have as much conviction as you with regards to these things but i’m monotoring the situation.

    I thought the article might interest you as it did me.

    Reply
    Please complete the required fields.



  • flintster1994 says:

    I thought the timing was interesting.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>