by Mark Sircus
30 November 2011
I have been holding back this essay for months.
It is not a good sign that I
am finally bringing myself to publish it. I have tired of being a prophet of
doom so have been waiting for the drums of doom, which are now sounding
loudly. I hope this essay will help people understand what we are about to
George Soros himself warned,
"The current global
financial system is in a self-reinforcing process of disintegration, the
developed world is falling into deflationary debt trap."
Peter Schiff president of Euro Pacific Capital, identified the state of the
"Our government doesn’t have enough spare cash to bail out a
lemonade stand. Our standard of living must decline to reflect years of
reckless consumption and the disintegration of our industrial base. Only by
swallowing this tough medicine now will our sick economy ever recover."
‘Unless Germany and the ECB act quickly, the single
currency’s collapse is looming‘
“Mrs. Merkel is possibly underestimating
the speed and ferocity at which a market panic could crush her ambitious
integration plans. We also agree that there are a number of potential events
that could become the triggers for such a panic.
There is considerable risk
that in the case of the failure of a big bank, a wave of cascading
cross-defaults could engulf the system.”
Britain’s Foreign Office is advising its overseas embassies to draw up plans
to help expats should the collapse of the Euro turn explosive. Almost
incredibly, a senior minister has revealed that Britain is now planning on
the basis that a
euro collapse is matter of time.
privately warned that the break-up of the euro, once almost unthinkable, is
now increasingly plausible.
Hardly a week goes by, without a major summit between German
Chancellor Angela Merkel and French President Nicolas Sarkozy, trying
to devise another clever scheme to save the Euro. Yet after 1-½ years of
to contain the wildfire, - the Euro-zone’s debt crisis is more
dangerous than ever.
“The raging European monetary collapse will ripple through America’s banking
system, completing the 2008 meltdown that never ended because Wall Street
fought all reforms.
But now, a bigger meltdown as history repeats a
dangerous cycle like the 1929 Crash and Great Depression. History will also
deal a fatal blow to Wall Street. Martin Weiss adds a key warning: No bank
America’s banking system is bankrupt, structurally and morally.
Washington is broken. And thanks to the Occupiers Revolution the masses will
never accept new bank bailouts. Never. They’ll toss politicians and
overthrow government first.
No new bailouts will be the stake in the heart
of Wall Street, ending the ‘greed is good’ power of America’s ‘bloodsucking
vampire squid,’ handing the Occupiers new political power in Washington.”
Greece will default very soon.
The contagion of fear will spread.
European mega banks will collapse.
EU governments suffer new credit rating downgrades.
Spain and Italy are next to face defaults on their massive debts.
Global debt markets will suffer a critical meltdown.
The vicious cycle - sovereign defaults, bank failures, global depression -
We have been living through an agonizingly slow death of the system for
years, so at this point, or a point very soon, the entire system will go
down and go down fast like a house does when on fire.
Since 2008 all the
financial remedies have only made the wood dryer so when things start to
burn, when bond holders lose their shirts, when banks go down, when
governments default, the fire will burn hotter.
Accountants know that there is only so far you can stretch, leverage and
borrow before the bomb bay doors to bankruptcy open and the system falls to
its doom. Hope has lost its battle against simple arithmetic and it is
frightening to look at the harpoon targeting all of our lives. What we are
faced with depends on the mathematics of balance sheets that are tilting far
over into insolvency.
Authorities around the globe will certainly do all
they can to keep things stable, but in the end it is inevitable that the
house of cards is going to come crashing down.
“The current system will not so much collapse as evaporate,” writes Trace
Mayer, J.D., who is predicting what is called a
Kondratieff Winter, which is
the correction of a credit expansion.
Like a black hole, the entire world of
money and commerce gets sucked into it as money runs out at an increasing
rate for more and more people, towns, cities, counties, states, businesses
The world financial system is a total fraud. It is one gargantuan Ponzi
scheme, no better than the one Bernie Madoff used to swindle his
friends and neighbors, and thousands of times worse if you add up
the total number of victims it has ripped off over countless generations.
Mayer’s chart below speaks volumes about what’s going to evaporate.
be like an attic full of squirrels running from one end of the attic to
another. There is a point when a stampede occurs and in a credit collapse
everyone runs at once into gold and silver and away from paper full of fancy
ink and images.
Right now though the squirrels are running to buy up paper
instead, American paper and its worthless values are going up, meaning many
other currencies are going down hard.
Just as an individual can go bankrupt no matter how rich she starts
out, a financial system can collapse under the pressure of greed,
politics, and profits no matter how well regulated it seems to be.
Ken Rogoff & Carmen Reinhart
Eight Centuries of Financial Folly
“Much as I’d like to see the end of the extend-and-pretend game, I’m pretty
convinced that it’s the only thing left standing between the world as we
knew it and the demise of the financial and political system that went along
writes the Automatic Earth.
For the few who have used these past
few years of borrowed time to prepare for a general depression and financial
collapse one can only be thankful for the extra time, but it looks like time
is just about up.
I have written a lot about the nature of our deteriorating reality and have
been watching circumstances develop for decades.
It’s a deplorable and
absolutely unprecedented situation that has gotten steadily worse because,
“the world is controlled by a bunch of genocidal maniacs hell bent on
extending the system for one more day,”
writes Tyler Durden.
The reality of the situation is this: there are no magic
monetary tools that can fix the global monetary crises hidden
in the basement of the Federal Reserve, the Bank of England,
or any of the others. The fiat money-instruments themselves
- Dollars, Euros, Yen, etc. - are the problem.
“The entire European insolvent periphery is now merely
squeezing as much money out of the core as they can before everything falls
September might very well be the month of doom for the European
Union, or at least the beginning of a precipitous fall. Unless aliens land
with trillions lining their pockets it looks like we are headed for another
massive credit crunch.
“It’s not really the end of the world, but to read
some of the analysis and data over the past week, it’s hard not to wonder if
it’s not the
beginning of the endgame at the very least,” wrote conservative
John Mauldin a few weeks ago.
David Icke is at his best
in this video. His lecture on the engineering of
economic collapses by those who think they are better than everyone else is
We are beyond the point where playing the blame
game counts for anything though but Karl Denninger tells us to,
“Make sure you thank Congress and our
wonderful ‘President,’ all of whom are far more interested in making
sure that the banksters simply rob you blind than anything else when it
comes to the economy. In fact, by their actions it’s clear that’s all
they care about,” he writes.
“Mankind is reeling under a whopping $158 trillion debt pile that,
according to analysts and economists, might get out of hand if not dealt
with carefully. Gulf News takes a look at how this massive debt pile was
created and how the world can get out of this mess. Every human being on
earth currently carries a debt burden of nearly $22,733 on average, if
the latest reports are to be believed.
Every child is sharing the same debt burden
at birth, as debt growth rates beat the global population growth rate,”
writes Saifur Rahman for the Gulfnews
If someone can’t pay his debts,
help him by giving him a larger loan.
The problem of over-indebtedness is tearing the
world’s economy apart.
We’re on the cusp of a global recession that
will turn into a full blown depression or collapse because the first world
will hit a brick wall in terms of ability to pay up on its debts.
Louis James asked Doug Casey about the coming
crash, about leaving,
“the eye of the storm and backing into the
raging winds of financial, political, and social turmoil - What if
“I honestly hope I am, because if I’m right,
the global economic devastation is going to have a very real and
significant death toll. The price in human suffering these fools in
government are setting us up for is truly monstrous.
As a human being,
of course I’d rather see good times.”
But he and many others are no
longer dreaming of fairytale endings...
The speed of the disintegration said everything.
less than 48 hours for London to descend from self-styled
capital of the world into a circuit of burning dystopian hells.
In Kondratieff Winters, or what are otherwise
known as great depressions, millions starve.
In our next
Kondratieff Winter it will probably
be hundreds of millions if not a billion or two who will starve because we
are simultaneously being taken down by Mother Nature who is devastating
agriculture around the globe with floods, drought, fire, cold and heat, and
now even radiation exposure will cast a dark shadow on the agriculture
The gigantic rotting corpses of governments around the world are
contracting, stumbling into walls of debt that they simply cannot get
around. Our present way of organizing societies, economies and government is
now visibly falling apart.
Calls for economic “austerity” - reduced
government deficits - are the early warning signs of hard economic
contraction - the early signs of the Kondratieff Winter that is now
As the crisis mood congeals, people will come to
realization that they have grown helplessly dependent on a
teetering edifice of anonymous transactions and paper guarantees.
The Fourth Turning - 1997
“Buy a weapon to prepare for what may be the
most devastating economic downturn our nation has ever faced.
trained in economics, I never thought I’d write those words. However,
I’ll repeat them. Buy a gun. The coming storm will not only impose
financial hardships for those unprepared, but also entail a physical
threat to you, your family and your property.
The threat will come from inside the halls
of government with the constant attack on savings and investments
through inflation, monetary gimmickry and, eventually, the destruction
of our currency. The world around us is deteriorating every day:
socially and economically.
It’s not limited to London,”
writes Joseph McBrennan, editor of the Taipan Publishing Group.
Silver Shield has written an essay
American Riots Will Be the Worst in the World, that is just over the top,
but in it he says some very serious things to his fellow Americans.
“When the dollar collapses, all American
illusions will collapse with it. Deep denial will turn into deep anger.
The Baby Boomer generation’s obsessive pursuit for material possessions
was matched by their embrace of debt.
The American riots will be the
worst the world has seen because of the amount of arrogance, denial,
narcissism, drugs and violence in our society."
I believe the pent-up pressures will explode and
what will happen in the course of a few days or weeks will take our
collective breath away.
So it’s a good idea to start now with some
deep-breathing exercises to give some extra emotional strength to get ready
for the event. It is that close. I think most of us sense it by now - the
The Burning Platform
“As I observe the zombie like reactions of
Americans to our catastrophic economic highway to collapse, the
continued plundering and pillaging of the national treasury by criminal
Wall Street bankers, non-enforcement of existing laws against those who
committed the largest crime in history, and reaction to young people
across the country getting beaten, bludgeoned, shot with tear gas and
pepper sprayed by police, I can’t help but wonder whether there is
Why are most Americans so passively
accepting of these calamitous conditions? How did we become so
I’ve concluded Americans have chosen willful
ignorance over thoughtful critical thinking due to their own
intellectual laziness and overpowering mind manipulation by the elite
through their propaganda emitting media machines.
Some people are awaking from their trance,
but the vast majority is still slumbering or fuming at erroneous