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Prophets Of Doom: 12 Shocking Quotes From Insiders About The Horrific Economic Crisis That Is Almost Here

Friday, September 30, 2011 22:15
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We are getting so close to a financial collapse in Europe that you can almost hear the debt bubbles popping.  All across the western world, governments and major banks are rapidly becoming insolvent.  So far, the powers that be are keeping all of the balls in the air by throwing around lots of bailout money.  But now the political will for more bailouts is drying up and the number of troubled entities seems to grow by the day.  Right now the western world is facing a debt crisis that is absolutely unprecedented in world history.  Europe has had a tremendously difficult time just trying to keep Greece afloat, and several much larger European countries are now on the verge of a major financial crisis.  In addition, there is a growing number of very large financial institutions all over the western world that are also rapidly approaching a day of reckoning.  The global financial system is a sea or red ink, and when we get to the point where there are hundreds of ships going under how is it going to be possible to bail all of them out?  The quotes that you are about to read show that quite a few top financial and political insiders know that things cannot hold together much longer and that a horrific economic crisis is coming.  We built the global financial system on a foundation of debt, leverage and risk and now this house of cards that we have created is about to come tumbling down.

A lot of people in politics and in the financial world know what is about to happen.  Once in a while they will even be quite candid about it with the media.

As I have written about previously, Europe is on the verge of a financial collapse.  If things go really badly, things could totally fall apart in a few weeks.  But more likely it will be a few more months until the juggling act ends.

Right now, the banking system in Europe is coming apart at the seams.  Because the global financial system is so interconnected today, when major European banks start to fail it is going to have a cascading effect across the United States and Asia as well.

The financial crisis of 2008 plunged us into the deepest recession since the Great Depression.

The next financial crisis could potentially hit the world even harder.

The following are 12 shocking quotes from insiders that are warning about the horrific economic crisis that is almost here….

#1 George Soros: “Financial markets are driving the world towards another Great Depression with incalculable political consequences. The authorities, particularly in Europe, have lost control of the situation.”

#2 PIMCO CEO Mohammed El-Erian: “These are all signs of an institutional run on French banks. If it persists, the banks would have no choice but to delever their balance sheets in a very drastic and disorderly fashion. Retail depositors would get edgy and be tempted to follow trading and institutional clients through the exit doors. Europe would thus be thrown into a full-blown banking crisis that aggravates the sovereign debt trap, renders certain another economic recession, and significantly worsens the outlook for the global economy.”

#3 Attila Szalay-Berzeviczy, global head of securities services at UniCredit SpA (Italy’s largest bank): “The only remaining question is how many days the hopeless rearguard action of European governments and the European Central Bank can keep up Greece’s spirits.”

#4 Stefan Homburg, the head of Germany’s Institute for Public Finance: “The euro is nearing its ugly end. A collapse of monetary union now appears unavoidable.”

#5 EU Parliament Member Nigel Farage: “I think the worst in the financial system is yet to come, a possible cataclysm and if that happens the gold price could go (higher) to a number that we simply cannot, at this moment, even imagine.”

#6 Carl Weinberg, the chief economist at High Frequency Economics: “At this point, our base case is that Greece will default within weeks.”

#7 Goldman Sachs strategist Alan Brazil: “Solving a debt problem with more debt has not solved the underlying problem. In the US, Treasury debt growth financed the US consumer but has not had enough of an impact on job growth. Can the US continue to depreciate the world’s base currency?”

#8 International Labour Organization director general Juan Somavia recently stated that total unemployment could “increase by some 20m to a total of 40m in G20 countries” by the end of 2012.

#9 Deutsche Bank CEO Josef Ackerman: “It is an open secret that numerous European banks would not survive having to revalue sovereign debt held on the banking book at market levels.”

#10 Alastair Newton, a strategist for Nomura Securities in London: “We believe that we are just about to enter a critical period for the eurozone and that the threat of some sort of break-up between now and year-end is greater than it has been at any time since the start of the crisis”

#11 Ann Barnhardt, head of Barnhardt Capital Management, Inc.: “It’s over. There is no coming back from this. The only thing that can happen is a total and complete collapse of EVERYTHING we now know, and humanity starts from scratch. And if you think that this collapse is going to play out without one hell of a big hot war, you are sadly, sadly mistaken.”

#12 Lakshman Achuthan of ECRI: “When I call a recession…that means that process is starting to feed on itself, which means that you can yell and scream and you can write a big check, but it’s not going to stop.”

*****

In my opinion, the epicenter of the “next wave” of the financial collapse is going to be in Europe.  But that does not mean that the United States is going to be okay.  The reality is that the United States never recovered from the last recession and there are already a lot of signs that we are getting ready to enter another major recession.  A major financial collapse in Europe would just accelerate our plunge into a new economic crisis.

If you want to read something that will really freak you out, you should check out what Dr. Philippa Malmgren is saying.  Dr. Philippa Malmgren is the President and founder of Principalis Asset Management.  She is also a former member of the Bush economic team. You can find her bio right here.

Malmgren is claiming that Germany is seriously considering bringing back the Deutschmark.  In fact, she claims that Germany is very busy printing new currency up.  In a list of things that we could see happen over the next few months, she included the following….

“The Germans announce they are re-introducing the Deutschmark. They have already ordered the new currency and asked that the printers hurry up.”

This is quite a claim for someone to be making.  You would think that someone that used to work in the White House would not make such a claim unless it was based on something solid.

If Germany did decide to leave the euro, you would see an implosion of the euro that would be truly historic.

But as I have written about previously, it should not surprise anyone that the end of the euro is being talked about because the euro simply does not work.

The only way that the euro would have had a chance of working is if all of the governments using the euro would have kept debt levels very low.

Unfortunately, the financial systems of the western world are designed to push governments into high levels of debt.

The truth is that the euro was doomed from the very beginning.

Now we are approaching a day of reckoning.  We have been living in the greatest debt bubble in the history of the world, but the bubble is ending.  There are several ways that the powers that be could handle this, but all of them will lead to greater financial instability.

In the end, we will see that the debt-fueled prosperity that the western world has been enjoying for decades was just an illusion.

Debt is a very cruel master.  It will almost always bring more pain and suffering than you anticipated.

It is easy to get into debt, but it can be very difficult to get out of debt.

There is no way that the western world can unwind this debt spiral easily.

The only way that another massive economic crisis can be put off for even a little while would be for the powers that be to “kick the can down the road” a little farther by creating even more debt.

But in the end, you can never solve a debt problem with more debt.

The next several years are going to be an incredibly clear illustration of why debt is bad.

When the dominoes start to fall, we are going to witness a financial avalanche which is going to destroy the finances of millions of people.

You might want to try to get out of the way while you still can.

Read more at The Economic Collapse Blog



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Total 12 comments
  • RainMan

    another log on the fire…
    …’if the American people had ever known the truth about what we Bushes have done to this nation, we would be chased down in the streets and lynched’.
    -George H.W. Bush- interviw 1992.

  • ElOregonian

    It only gets bitter from here.

  • Anonymous

    Its time to act!
    “America is the greatest Ponzi scheme in history, just like its counter part Wal-Mart. If you need validity just observe the Enron collapse.” -Nick Lee
    Wall Street isn’t taking the “99%” seriously. By asking for Them to fix things your just giving into the status quo. So then what? Boycott. Boycott Bank of American until it drops its unreasonable fees. Boycott Wal-Mart to show we wont be hassled around with convenience and unnecessary expenses. Forget Big Brother/ Uncle Sam because its akin to playing tattle tell like children on a playground. Don’t be afraid of could happen, be more afraid of what WILL happen IF we don’t act as a mature, all for one and one for all nation.”
    Boycotting IS the most effective and peaceful method for the movement towards a revamped government policies. They are not really listening, they mostly laugh. So make them listen as we laugh. Anyone can easily refuse services or goods without being handcuffed.
    History has shown it is a more effective method as its numbers increase.
    PS ya’ll are doing Great! -Bee

    It is essentially an axiom of life that history repeats itself. We as humans and the universe as it functions follow a set of patterns with under-laying structures that act as principles for a guide. So instead of seeking social closure through repetitive revolution and reform, lets instead take a reflective moment and realize what is absolutely necessary and needed for progress; that such is enduring with an approach and outcome that honors the structural integrity of the cause and most adequately represents and promotes the original intent. -Nectar

    “We live in illusion and the appearance of things. There is a reality. We are that reality. When you understand this, you see that you are nothing, and being nothing, you are everything. That is all.” -so lets sculpt this reality for all

    Please, just hear us out!
    Nectar & Bee

  • CorvidKnows

    Good information. Dates for the quotes would be a nice touch.

  • Jude

    “You might want to try to get out of the way…”. AND HOW DO WE DO THAT? convert our savings to MORE food and water? Buy MORE silver bullion? WHAT? WHY don’t you offer SOLUTIONS instead of just doom and gloom?

  • Anonymous

    I’m saying support your community more then the cooperation’s. Local discount stores are out there! Also if you know of any or any local farmers with goods to sell spread the word. If you have a skill that seems needed, use it! Even if its just a side project. You don’t need a stand in public to sale things. Just tell your friends, maybe advertise at local library’s and such. Let your neighbors know. I myself hope to have a garden and make lotions, shampoos and other hygiene products. Not commercially though. Mostly just during the summer, depending on my availability for it at that time. Trading is not impossible either. I believe it should always be considered and is only possible in small, local places or people. Example: If your hungry in the SLC area, find One Moral Cafe and you can work for a meal. But these are just ideas. I’m sure many people can think of their own. I understand things are harder for the average American. But in critical times, when or if things escalate, our neighbors and friends will be our support system. I’m not saying give all you have away. Be reasonable but if you can help another, why not?
    If you want to go a step further get political. Know what they are doing, call them out on any wrong doing as soon as possible. If someone in politics is acting out of reasonable accord, discredit them! It’s obvious more people should keep an extra careful eye on people with power. The current flow of society still have the government in the ‘kings chair’ and the cooperation’s as this kings office. We want to take it back, rightfully. These are just some ideas on how to productively more forward with our goals. Recently I came across a post on Facebook that quoted “Wall street money never sleeps” I do now know where it originated. But that happens to be a view on a lot of business men.
    A tip for small business owners: If an item is trending well enough you can lower the price and still make just as much money! It all depends on how often people purchase the item. Do the math first though.

    The first, starting quote was said September 30, 2011 by Nick Lee
    The quote starting the last paragraph is a famous Buddhist quote. It can be found on http://www.buddhist-temples.com/buddhism-facts/buddhist-quote.html
    I myself, found it here: http://thinkexist.com/quotation/we-live-in-illusion-and-the-appearance-of-things/763588.html
    No, we are not Buddhist or Buddhism promoters.

  • Electrolux

    A handful of rice, some vegetables and some fresh water to drink brings me another day of life. Another day to add compassion to the situation and enjoy the warm of the sun. This formula has always worked and no one can fool with it.

  • Rudolph Randolph

    Your quote for #11 is by far the most drastic, but is hardly credible when compared to Soros or the head of Deutsche Bank.

  • Room With a View

    I can’t exactly tell you who said it, but whilst blogging the other day I heard someone disclose that Goldman Sachs runs the world. I also note in my investigations that it was the Federal Reserve that started the debt spiral causing money to be bought at a higher value.
    What gives with this Alan Brazil, to state the obvious, then turn around and blame the US for the problem. I expect more insight from someone in his position.
    The trouble is everyone is showing how much they are connected to this false system by agonisingly following every detail of its unfolding. I agree with so many of the comments, but especially Electrolux. None of us have much hope for the world the way it is, we all hope that we will survive if there is a calamity, we all want a better way, we all want autonomy. The best we can do is act kindly and be nice. You will find this very empowering and find autonomy for ourselves.It is in the little things, in everyday situations. Survival without the system is going to be a learned behaviour. Not given to us spoonfed, or on a silver platter. would be a step in the right direction. BE KIND. Remember the saying From little things, BIG things GROW. We plant the seed, life produces after itself, all we need to do is create the right conditions. Love and Peace to everyone

  • Reckoner

    Ron Paul 2012

  • Earthmuffin33

    Vee put that so well,And I feel we really need to get away from the system Government/ Financial. And BE there for each other.We have All become puppets in a system that doesn’t care and it’s time to move back to whats real. Just a thought, Everyone have a GREAT DAY!

  • asterflower

    The very people who make these forecasts are the ones putting us in this financial position. Isn’t there any way we can make them accountable? What is the use of all these laws if they cannot be enforced?

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