Carl
Well-Known Member
A friend just emailed the following to me. It does paint a rather gloomy picture of where the world economy may be going. Although it may be the final in for a one world government.
International experts foresee collapse of U.S. economy
International experts foresee collapse of U.S. economy
Posted By Hielema, Bert
Posted 9 days ago
And you thought that I had a gloomy outlook on the
economy. Now the bad news pops up everywhere.
Harry Koza in the Globe and Mail quotes Bernard
Connelly, the global strategist at Banque AIG in
London, who claims that the likelihood of a Great
Depression is growing by the day.
Martin Wolf, celebrated columnist of the U.K.-based
Financial Times, cites Dr. Nouriel Roubini of the New
York University's Stern School of Business, who, in 12
steps, outlines how the losses of the American
financial system will grow to more than $1 trillion -
that's one million times $1 million. That amount is
equal to all the assets of all American banks.
Every day now, thousands of people all over the U.S.
and Great Britain are walking away from their homes -
simply mailing their house keys to the banks - as
housing bailout plans fail.
With unemployment growing, the next phase will hit
commercial real estate making the financial
institutions the unwilling owners not only of quickly
depreciating houses, but also of empty strip malls and
even larger shopping centres.
The next domino to fall will be credit card defaults,
and after that... who knows? There are so many exotic
funds out there, with trillions of dollars in paper -
or rather computer-screen money - all carrying
assorted acronyms, and all about to disintegrate into
nothingness. Over the next couple of years, scores of
banks that have thrived on these devices, based on
quickly disappearing equities, will fail.
The most frightening forecast so far comes from the
Global Europe Anticipation Bulletin (GEAB), available
for 200 euros - about $300 - for 16 issues annually.
Its prediction is quite specific.
Where my warnings never spelled out an exact date,
this think tank has it pegged precisely. Here are its
very words:
"The end of the third quarter of 2008 (thus late
September, a mere seven months from now) will be
marked by a new tipping point in the unfolding of the
global systemic crisis.
"At that time indeed, the cumulated impact of the
various sequences of the crisis will reach its maximum
strength and affect decisively the very heart of the
systems concerned, on the front line of which (is) the
United States, epicentre of the current crisis.
"In the United States, this new tipping point will
translate into - get this - a collapse of the real
economy, (the) final socio-economic stage of the
serial bursting of the housing and financial bubbles
and of the pursuance of the U.S. dollar fall. The
collapse of U.S. real economy means the virtual freeze
of the American economic machinery: private and public
bankruptcies in large numbers, companies and public
services closing down."
Advertisement
The report goes on to say that we are entering a
period for which there is no historic precedent. Any
comparisons with previous situations in our modern
economy are invalid.
We are not experiencing a "remake" of the 1929 crisis
nor a repetition of the 1970s oil crises or 1987 stock
market crisis.
What we will have, instead, is truly a global
momentous threat - a true turning point affecting the
entire planet and questioning the very foundations of
the international system upon which the world was
organized in the last decades.
The report emphasizes that it is, first and foremost,
in the United States where this historic happening is
taking an unprecedented shape (the authors call it
"Very Great U.S. Depression").
It continues to predict that, although this crucial
event is global, it will be the beginning of an
economic 'decoupling' between the U.S. and the rest of
the world. However, non 'decoupled' economies will be
dragged down the U.S. negative spiral.
Concerning stock markets, the GEAB anticipates that
international stocks would plummet by 40 to 80 per
cent depending where in the world they are located,
all affected in the course of the year 2008 by the
collapse of the real economy in the U.S. by the end of
summer.
The European authors of this report - it appears
simultaneously in French, German and English - state
that they simply and without prejudice try to describe
in advance the consequences of the ominous trends at
play in this 21st-century world, and to share these
with their readers, so that they can take the proper
means to protect themselves from the most negative
effects.
So there you have it. Three reports from three
different sources, all well regarded, and all pointing
to a disastrous fall-out from our monetary moves.
This and earlier columns can be seen at hielema.ca.
Comments to [email protected].
Article ID# 918803
International experts foresee collapse of U.S. economy
International experts foresee collapse of U.S. economy
Posted By Hielema, Bert
Posted 9 days ago
And you thought that I had a gloomy outlook on the
economy. Now the bad news pops up everywhere.
Harry Koza in the Globe and Mail quotes Bernard
Connelly, the global strategist at Banque AIG in
London, who claims that the likelihood of a Great
Depression is growing by the day.
Martin Wolf, celebrated columnist of the U.K.-based
Financial Times, cites Dr. Nouriel Roubini of the New
York University's Stern School of Business, who, in 12
steps, outlines how the losses of the American
financial system will grow to more than $1 trillion -
that's one million times $1 million. That amount is
equal to all the assets of all American banks.
Every day now, thousands of people all over the U.S.
and Great Britain are walking away from their homes -
simply mailing their house keys to the banks - as
housing bailout plans fail.
With unemployment growing, the next phase will hit
commercial real estate making the financial
institutions the unwilling owners not only of quickly
depreciating houses, but also of empty strip malls and
even larger shopping centres.
The next domino to fall will be credit card defaults,
and after that... who knows? There are so many exotic
funds out there, with trillions of dollars in paper -
or rather computer-screen money - all carrying
assorted acronyms, and all about to disintegrate into
nothingness. Over the next couple of years, scores of
banks that have thrived on these devices, based on
quickly disappearing equities, will fail.
The most frightening forecast so far comes from the
Global Europe Anticipation Bulletin (GEAB), available
for 200 euros - about $300 - for 16 issues annually.
Its prediction is quite specific.
Where my warnings never spelled out an exact date,
this think tank has it pegged precisely. Here are its
very words:
"The end of the third quarter of 2008 (thus late
September, a mere seven months from now) will be
marked by a new tipping point in the unfolding of the
global systemic crisis.
"At that time indeed, the cumulated impact of the
various sequences of the crisis will reach its maximum
strength and affect decisively the very heart of the
systems concerned, on the front line of which (is) the
United States, epicentre of the current crisis.
"In the United States, this new tipping point will
translate into - get this - a collapse of the real
economy, (the) final socio-economic stage of the
serial bursting of the housing and financial bubbles
and of the pursuance of the U.S. dollar fall. The
collapse of U.S. real economy means the virtual freeze
of the American economic machinery: private and public
bankruptcies in large numbers, companies and public
services closing down."
Advertisement
The report goes on to say that we are entering a
period for which there is no historic precedent. Any
comparisons with previous situations in our modern
economy are invalid.
We are not experiencing a "remake" of the 1929 crisis
nor a repetition of the 1970s oil crises or 1987 stock
market crisis.
What we will have, instead, is truly a global
momentous threat - a true turning point affecting the
entire planet and questioning the very foundations of
the international system upon which the world was
organized in the last decades.
The report emphasizes that it is, first and foremost,
in the United States where this historic happening is
taking an unprecedented shape (the authors call it
"Very Great U.S. Depression").
It continues to predict that, although this crucial
event is global, it will be the beginning of an
economic 'decoupling' between the U.S. and the rest of
the world. However, non 'decoupled' economies will be
dragged down the U.S. negative spiral.
Concerning stock markets, the GEAB anticipates that
international stocks would plummet by 40 to 80 per
cent depending where in the world they are located,
all affected in the course of the year 2008 by the
collapse of the real economy in the U.S. by the end of
summer.
The European authors of this report - it appears
simultaneously in French, German and English - state
that they simply and without prejudice try to describe
in advance the consequences of the ominous trends at
play in this 21st-century world, and to share these
with their readers, so that they can take the proper
means to protect themselves from the most negative
effects.
So there you have it. Three reports from three
different sources, all well regarded, and all pointing
to a disastrous fall-out from our monetary moves.
This and earlier columns can be seen at hielema.ca.
Comments to [email protected].
Article ID# 918803
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