by Mark Sircus
07 July 2011
These elites do not have a vision. They
know only one
word: more. They will continue to exploit the nation, the
global economy and the ecosystem. And they will use
their money to hide in gated compounds when it all implodes.
If you thought the global financial crisis of
2008 was difficult, wait till the sequel comes to your doorstep.
Some investment professionals feel that the sky
could soon be falling as recent events have led many to brace for the worst.
The world and everyone in it should be preparing for some very difficult
days ahead but that is not happening because most are drinking some kind of
happy tea. An unprecedented financial storm of unknown scope and dimension
is upon us but it is crushing certain people, cities, states and countries
Many are perceiving and reporting that the
fundamental economic outlook has changed substantially over the last couple
“There is a growing sense of despair in
Unlike previous attacks on the euro project,
the latest downgrade of Portugal’s debt by the ratings agency Moody’s
feels like the beginning of the end. Those economists and fund managers,
who argued that a second bailout for Greece with private sector
involvement would mean something similar for Portugal and most likely
Ireland, are hitting their target.
Like a 19th century battalion
holding the line against oncoming hoards with depleted firepower and an
officer class at war with itself, the euro’s supporters are in a
writes the Guardian.
A clear majority of the uncrushed are certain
that there is nothing to worry about and go about their business as if life
will continue on as it has these past few decades.
But 100 percent of the crushed have no doubt
that there is a civilization-scale catastrophe taking place and that there
will be little or no recovery from it for as far as the eye can see into the
“For a couple of years now it’s been clear
that the world was about to fall apart, with the only question being
which local failure turns out to be the catalyst for a systemic
breakdown. So many things were on the verge of blowing up… yet none of
The world’s governments have engaged in a
heroic period of “extend and pretend” that has kept the system together
longer than seemed possible. But now the game seems to be ending. It’s
still not clear which bomb will go off first, but a bunch of fuses have
gotten very short indeed.
Here’s a survey of old crises that are
finally coming to a head.”
You want to see something that blew up this
“In the past week the ten-year interest rate
increased by 12%. That is a monster change. This equates to 2,000 Dow
points or 240 on the S&P,” writes Bruce Krasting in his essay 'Are the
credit markets getting unstable?'
If that trend continues, the fuse will light the
powder and western civilizations financial system will come down hard.
The price on the benchmark 10-year note edged
lower, pushing its yield to 3.20%, up from Thursday’s yield of 3.14%.
Friday’s losses continue what has been a sharp decline in bond prices.
“Today we find the United States and most of
Europe in a similar situation.
We risk an eruption and collapse of the
mountain of unsustainable sovereign debt built up over the last two
decades. Frankly, the U.S. dollar and national debt situation is so dire
and our means to contain a sovereign debt crisis so limited by multiple
wars, Washington’s debt and political incompetence at home that anything
could happen - almost overnight.
Even a minor foreign policy or economic
event like a Greek default or Middle East crisis could wreak havoc with
the precarious interlocking sovereign debt pyramid in the West.
American and most European governments and
the central banking elites, which created the criminal sovereign debt
fiasco, are only trying to buy more time to delay the inevitable. This
inaction means the threat of an immediate U.S. dollar collapse cannot be
Therefore, readers who have not protected
themselves certainly have cause to worry because now could be too late.”
We are now only 60 days from the need of the
United States government to fund half a trillion - 467.4 billion to be exact
- dollars of debt.
“This is the amount of debt that matures
through August 31 and has to be rolled over or the U.S. is bankrupt… in
every sense of the word. Treasury must 'roll over' almost $500 billion
in debt that matures during August 2011.
New debt is issued and the proceeds are used
to repay the maturing debt plus interest due. Treasury will require
market access throughout August to avoid defaulting on maturing debt.
About $380 billion in short-term T-bills maturing, plus $90 billion in
reports Tyler Durden.
Greece agreed last week to bind itself in
another round of debt servitude.
Violent demonstrations notwithstanding, members
approved another round of tax increases and spending cuts to keep Europe’s
own extend-and-pretend game going a while longer.
Think of Greece as maxed
out on five credit cards, taking on a second part-time job, holding yard
sales and applying for a sixth card just to keep up minimum payments on the
other five. Everyone knows it’s a losing game but they, as well as other
governments around the world, have been playing at the table of unlimited
debt through credit.
The world’s financial system is hanging by its teeth and the entire western
world is ailing from debt overdosing.
What we have been experiencing these past
decades is roaring prosperity compared to what is coming down the road. As
the economy collapses life is going to get very strange; our problems and
the chaos are
going to get a lot worse.
The free market is dead and we have all arrived at a sort of involuntary
socialism where the largest banks rape and pillage everyone else.
“At the start of the second half of 2011,
with a global economy in complete disarray, an increasingly unstable
global monetary system and financial centers in desperate straits, all
this despite the thousands of billions of public money invested to avoid
precisely this type of situation.
The insolvency of the global financial
system, and of the Western financial system in the first place, returns
again to the front of the stage after just over a year of political
cosmetics aimed at burying this fundamental problem under truckloads of
There is no other possible end state then a full
collapse of paper and digital wealth, which in today’s world would be a
catastrophe of civilization-destroying capacity.
“The dollar collapse will be the single
largest event in human history.
This will be the first event that will touch
every single living person in the world. All human activity is
controlled by money. Our wealth, our work, our food, our government,
even our relationships are affected by money. No money in human history
has had as much reach in both breadth and depth as the dollar. It is the
de facto world currency. All other currency collapses will pale in
comparison to this big one.
All other currency crises have been regional
and there were other currencies for people to grasp on to. This collapse
will be global and it will bring down not only the dollar but also all
other fiat currencies as they are fundamentally no different. The
collapse of currencies will lead to the collapse of ALL paper assets.
The repercussions to this will have incredible results worldwide.”
“Those areas that have lived highest on the
hog in the dollar paradigm will most likely be the worst places to live
when the dollar collapses. We will not be as fortunate to muddle through
this collapse like we did in 2008 when it was a corporate problem. This
time around, it is a national and global problem.
The global Ponzi scheme has run out of gas
as the demographics decline, as cheap abundant oil declines, as
hegemonic power declines,” continues Shield.
Peter Yastrow, market strategist for
“What we’ve got right now is almost near
panic going on with money managers and people who are responsible for
money,” he said. “We’re on the verge of a great, great depression. The
Federal Reserve knows it.”
And there is nothing they or anyone can do to
“If you think that the banking system of the
western world is strong enough to guarantee the debt of the western
world, you’re totally out of your mind.
That’s the reason they’ll do everything
possible to paper over the Euro crisis to prevent the defaults in order
to prevent another crisis in banking that definitively would occur, that
absolutely would occur from a default.
This fact is ravingly positive for gold. You
would have a complete collapse of the western banking system if Greece
writes Jim Sinclair.
The middle classes around the world are being
just to pay interest on the sovereign debts to the
banking elites who are enjoying the life of the filthy rich.
The world is just waiting for the spark to start
the run-out of the dollar and our Treasury debt.
Any serious financial or natural disaster could
trigger the long overdue collapse and bring the
Ponzi-type deck of cards
down almost overnight on top of us. In the meantime Washington and European
governments will simply throw its people’s wealth and promised benefits at
the problem thus buying them more time to do what they do best - steal all
the money and power they can.
Concentration of wealth is at obscene levels. From what I have seen these people have been spending billions of their
dollars building underground centers and complexes.
Seems like human hell for, can you imagine these
people having to live in tight quarters with each other?