Saturday, February 21, 2009

The penny finally drops

Soros sees no bottom for world financial "collapse"

Renowned investor George Soros said on Friday the world financial system has effectively disintegrated, adding that there is yet no prospect of a near-term resolution to the crisis. Soros said the turbulence is actually more severe than during the Great Depression, comparing the current situation to the demise of the Soviet Union.

Posted by gardeniadotnet @ 01:39 PM (1938 views)
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14 thoughts on “The penny finally drops

  • stillthinking says:

    A weird thing is that although as I gradually plough my way through economics, and I always tend to agree with Von Mises, yet I tend to discount his doomish prophesy as too strong,

    “There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. ”

    In particular the bit “there is no means of avoiding”. In which case there is no real method of avoiding defaults, assuming you don’t want the currency collapse version. So that just leaves the level of defaults, and more to the point, to what extent they affect the man in the street as opposed to the wealth of the financier. Strange because few actually disagree with this statement (to the extent that they put up some argument against it), but nobody actually acts according to a 100% belief in it either.

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  • As you say stillthinking. The more we plough through,there seems no means of avoiding a complete financial collapse from this cisis. I inherently distrust figures even though they provide material proof. Saying that,it is invariably after and not so much before an event that figures provide this proof,other than providing a logical possibility and that’s probably the reason.
    Impression-wise I get the feeling this is only a matter of when and not if? Again as you say depending on the method of dealing with this crisis. In this case the prophecies of doom seem quite logical. The over-riding concern must be to limit the amount of damage to the ‘man in the street’ otherwise this will have truly catastrophic consequences,I’m sure.

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  • happy mondays says:

    Not following this particular subject, sorry gardenaidotnet..
    With all this corruptness, dodgy dealings, over expenditure within our society, can anyone tell me of an alternative method of transactions, that may work.. As at the moment i am thinking as Frazer did in dads army that we are all doomed! I do not think we are capable of going back to the good old bartering of goods system that was around before the birth of bankers, but now it seems this could well be there death is there any other options open to us?

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  • @ plato #2

    I agree that it seems that it is a matter of when and not if now. As far limiting the damage to the man of the street, those with saving are investing in gold (creating a future bubble ??) Those without significant savings, (me ! and others) …what now?
    Can we all protect ourselves from hunger and poverty by growing food or exchanging skills and services, repairing our old clothes, tools and appliances. What happens when the welfare state becomes too expensive to maintain? I can only imagine the catastrophic consequences that society will face if the world financial system / economy truly collapses.

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  • 3 and 4 have you ever been in a fight? If you have you will know that thought and introspection are totally couner productive, things are quicker, more immediate and less predictable than you can ever imagine.

    Similarly if things are going to break down then only at that point will you know if you have what it takes to survive.

    If you are serious about it tho learn survival skills, first aid, have a specific plan, know who you will surround yourself with, you will need allies, know where you will go, if you are physically weak work on it, get a weapon. Don’t worry about gold, if you are strong enough to hold onto it, you will be strong enough to take it.

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  • and most importantly of all, don’t confuse posting here with doing something

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  • happy mondays……[email protected] 14:54

    This is the cause of this situation. I have pointed out corruption and the black economy on many occasions. They are extremely relevant. Without correct details,how can anyone rely on the financial creations that have been invented? The Law needs to be enacted to remove these cancers and provide truth. Then perhaps we can start a fairer system.

    tutorian…….I’m afraid that as far as protecting the people you mention,we really have to rely on honest and responsible government who actually do have the power and means to care for their honest citizens. This is of paramount importance. It does mean protecting jobs and it does mean protecting shelter(housing) at whatever cost. Banks have to be nationalised in this case and the wealth has to be redistributed fairly with little or no interest. Real work has to be provided along with social accountability.
    If this does not happen,we will know exactly their intentions and I expect complete turmoil will result which will not do anyone any good.

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  • Bellwether

    I suppose that means that you doubt ethics will overcome power any time soon lol

    Your response is food for thought

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  • Very provocative posting there Bellwether.

    Just out of interest, what sort of weapon would you suggest?

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  • Eternal Sceptic says:

    For as long as politicians only look to the next election, do not expect any cure to be effective. So far all that has been seen is a succession of bandaids, whereas the patient requires intensive care-and even then the outcome is uncertain.
    We either have some radical changes to our consumerism society or it’s total collapse into rioting anarchy. You had better hope the supply of cheap lager keeps being delivered in front of TV’s and coronation street continues to be broadcast, and that food at prices people can afford continues to reach the supermarket-otherwise get your bunker ready.

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  • Is it really that provactive QG? Isn’t it just the reality of social breakdown the world over. If it is on the scale that some here imagine they had better get their sh!t together.

    Tudorian I think indiviudally humans are capable of being ethical but not collectively. It’s just darwinian and I’m often astonised at how idealistic people can be about what the human race might become when to me, it is what it is with no hint of disapointment. I find the interpersonal level more rewarding than the general

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  • I agree with most of the above.

    But looking at the state of the UK government, even if you disregard the debts of HBOS and RBS, and just look at diminishing tax receipts, increasing unemployment & cost of benefits, depressed uk manufacturing, weak pound, capital flight, plunging stock market & funds etc we are already completely finished…………………..

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  • The collapse of the debt leverage system is of concern, but won’t result in rioting and food shortages. It will probably result in house prices continuing to plummet however.

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  • Bellwether

    You’re a real Sarah Conner (terminator) type character underneath that soft exterior aren’t you.

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