Subject: NOW PUBLIC: Facts and forecast of a global meltdown in which no fiat un-backed currency will survive.
Sent to
full mailing list. Economic status report. Critical and serious
educational material. Consider it good news to learn about this in
advance.
Easily 15 online newspapers have similar stories on this topic today
June 4, 2012.
Seems that
June 15 through Sept 15 mark boundaries with almost mathematical certainty in
which all un-backed paper currencies may collapse in perhaps 190 nations –
almost concurrently. Apparently this topic is prohibited on TV, so dozens of
writers chose June 4 to go public with the possibility of coming chaos.
The
thought of banks closing in many nations in bankruptcies, and governments
defaulting on their welfare obligations, and food stamps suddenly worthless, and
transportation shipments stopped, and credit card swipe stations stop working,
and truckers can’t deliver to stores, and store shelves emptied within three
days, it’s a vision of global meltdown never experienced before in the history
of nations and the world. In some nations the electric grid may stay up where
powered by coal or gas.
The
article below by Raoul Paul is an example of this topic suddenly making
headlines on June 4, 2012 - throughout the internet.
Similar
article sources today are listed at the bottom. (None on TV,
however.)
The article below was read aloud and discussed over and over by
Glen Beck today June 4 on his 3-hour network radio show coast to
coast, so it has gone public.
Bold print
below is from the original article which also had slides and graphs.
Non-bold print has been transcribed from Beck’s comments about the
article.
Economist:
Unstoppable Economic Collapse is imminent
Unstoppable Economic Collapse is imminent
Monday, Jun 4, 2012 at 2:33 PM
CDT
It’s the
end of the world as we know it…and Glenn Beck finally isn’t the only one saying
it! Raoul Paul, who previously co-managed the GLG Global Macro Fund and is
a Goldman Sachs alum, has a pretty bleak prediction for what is coming to Europe
and the rest of the world. What does he think is coming? The worst economic
shock the world has ever seen and, even worse, there’s nothing we can do to stop
it! The original article is at http://www.businessinsider.
“The world has no engine of growth with
most of the G-20 countries approaching stall speed at the same time.
Now, what is that? G-20, those are the 20 biggest countries in the world. Approaching stall speed. We have no engine of growth. Ask yourself this question: What is the engine of growth in the United States? Currently it is being set up that the engine of growth is the stimulus package, that it is the United States government. Is that real growth? I contend - and you know the answer - no,” Glenn explained.
Now, what is that? G-20, those are the 20 biggest countries in the world. Approaching stall speed. We have no engine of growth. Ask yourself this question: What is the engine of growth in the United States? Currently it is being set up that the engine of growth is the stimulus package, that it is the United States government. Is that real growth? I contend - and you know the answer - no,” Glenn explained.
“The western world is about to enter a
second recession in an ongoing depression. For the first time since the
1930′s, we’re entering a recession. Before industrial production, durable goods
orders, employment, and private sector GDP have made back their previous
highs. Hear that again. For the first time since the 1930′s before we’ve
made if back up on our feet. Usually we have a recession, it starts to grow
again, and then we come back down. This is – this is a new
trend.”
“Fact: This will to be the lowest
cyclical peak in GDP growth in G-7 history. These are the weakest ever
foundations on which to enter a recession.”
“The problem is down to one thing:
Debt.”
“This is significant. The 10 largest
debtor nations on earth have total debts of over 300% of world GDP.
History tells us that when sovereign defaults occur, what does that mean?
Sovereign defaults? Sovereign default, if a sovereign default occurs, that means
Greece goes out of business, Spain goes out of business, Portugal goes out of
business. The Euro is a bubble. It will crash,” Glenn said.
“History tells us when sovereign defaults
occur, they come in a series of defaults. We need to understand history in
order to grasp the present. The domino effect. In history when you have a
default, one falls into the other and the other and the other. So, he says, what
is coming? EU sovereign debt defaults. UK sovereign default. Japan sovereign
default. South Korea, sovereign default. China, sovereign default.”
“So, he says all of these will default
and the biggest banking crisis in world history. Then he’s got a few of the
charts saying
the end of finance,
the end of finance,
the end of Europe,
the end of world trade.
Then he has a picture of a hurricane and the
eye of the hurricane. He says, We are here. We don’t know exactly what is to
come, but we can all join the very few dots from where we are now, to the
collapse of the first major bank, with very limited room for government
bailouts.Why is that?
Do you remember when we spoke two – four years ago now, maybe almost close to five, we said that there would come a time that these bailouts wouldn’t work, that they would throw money at the system, and then I said, When they do this and it doesn’t change any of the factors, they have to immediately shut the faucets off and go the other way. Otherwise,
they’ll continue to print too much money,
they’ll digitize too much money.
They’ll flood the market with too much money
Do you remember when we spoke two – four years ago now, maybe almost close to five, we said that there would come a time that these bailouts wouldn’t work, that they would throw money at the system, and then I said, When they do this and it doesn’t change any of the factors, they have to immediately shut the faucets off and go the other way. Otherwise,
they’ll continue to print too much money,
they’ll digitize too much money.
They’ll flood the market with too much money
and the engine will stall because you
flooded it or you will have a rocket ship on your hands and you will have
hyperinflation and you’ll have out of control interest rates eventually.
With very limited room for government bailouts, meaning we’ve got nothing
less –
nothing left now. There’s no bullets in the gun except meaningless printed
money.
We can easily join the next dots from the first bank closure to the collapse of the whole European banking system, and then to the bankruptcy of the governments themselves. There are almost no breaks in the system to stop this and almost no one realizes the seriousness of this situation.”
We can easily join the next dots from the first bank closure to the collapse of the whole European banking system, and then to the bankruptcy of the governments themselves. There are almost no breaks in the system to stop this and almost no one realizes the seriousness of this situation.”
“The problem is not government debt, per se.
Listen carefully.
The real problem is The 70 trillion in
G-10 debt, the top 10 governments around the world, The 70 trillion is the
collateral for $700 trillion in derivatives.
That number equates to 1200% of global GDP and rests on very, very weak foundations.”
That number equates to 1200% of global GDP and rests on very, very weak foundations.”
“Imagine the UK defaulting. What do you
think would happen to Japan and China? Would they not be next?
And do you think that the U.S. would survive
unscathed? This is the end of the fractional reserve banking system and of
fiat money. It is the big reset. This is what we’ve been talking about for
quite some time. The big reset. This is what George Soros has wanted, the big
reset.”
“When the system has to be rebooted, who are
the players that are designing that? This is why when people say to you, George
Soros, why would anybody want this to happen? Because if you know the reset is
coming, anyway, if you know it’s unsustainable, then you want to be the one to
design what the future looks like.”
Glenn continued to read, “From a timing
perspective, I think 2012 and 2013 will usher in the end.”
You have to understand that the global
banking collapse and massive defaults would bring about the biggest economic
shock the world has ever seen.
There would be no trade finance,
no shipping finance,
no finance for farmers,
no leasing,
no bond market,
no nothing.
no shipping finance,
no finance for farmers,
no leasing,
no bond market,
no nothing.
The markets are, frankly, at a terrifying
point of realizing that there is nothing they can do including quantitative
easing to prevent this collapse. The next phase, as Spain and Italy go, will
be to see nationalization of banks – the nationalization
of banks and the assumption of bank debts on government balance sheets. This is
what we talked to you about on Friday.
We have Tim Geithner coming out and saying,
‘The governments have to take this debt on.’
Then expect to be shut out of financial
markets. Bonds will be stuck at 1% in the U.S., Germany, and UK, and Japan for
this phase. The whole bond market will be dead.
That means nobody wants to invest in
companies.
Short selling on bonds will be banned.
Short selling stocks will be banned.
CBS, banned.
Short futures, banned.
Put options, banned.
All that will be left will be the dollar and gold.
Short selling stocks will be banned.
CBS, banned.
Short futures, banned.
Put options, banned.
All that will be left will be the dollar and gold.
As defaults in governments and banks come to
fruition, we risk a closure of the stock market entirely and
a closure of the banking system as occurred in
Argentina in 2001,
Russia in 1998,
and Brazil in 1999.
a closure of the banking system as occurred in
Argentina in 2001,
Russia in 1998,
and Brazil in 1999.
We have around six months of trading in
western markets to protect ourselves or make enough money to offset future
losses.
Spend your time looking at the risks of custody safekeeping, counterparty, et cetera.
Spend your time looking at the risks of custody safekeeping, counterparty, et cetera.
Assume that no one and nothing is safe.
After that put your tin helmet on and
hide until the new system emerges.
I wish I could see another option with an
equally high probability, but I can’t find one.
All we can do is hope that I’m wrong, but
either way, a new system will emerge and it will open up a whole new set of
opportunities,
but we are going back 40 years in time and 1500 to 3000 years in trading.”
but we are going back 40 years in time and 1500 to 3000 years in trading.”
“This, again, from not a schlub. This is
again coming on the heels of what George Soros said this weekend.
George Soros said that he felt the EU had three months. They’re saying the same thing.”
George Soros said that he felt the EU had three months. They’re saying the same thing.”
“Now, the question is: What do you do about
it? What does this all mean? That’s what this whole week is about on the
Glenn Beck Program and
GBTV. Four steps. And I want you to seriously
consider them with your family. I want you to seriously consider actually
getting involved more than you already are,” Glenn said. “I promise you by the
end of the week that you will see that there is a way out and all you have to do
is not panic.
The first step is to commit, not to tune out
because you can’t handle it. You can, you will, and you’ll lead the way
out.”
===-===
===-===
Similar
articles today, for example, were visible at
and my favorite: http://MaxKeiser.com where guest
Hugo Price lays out a plan for Mexico and Greece to move to a silver-backed
currency - in the 2nd half of the video.
===-===
As Bix
Weir would say “Buy physical silver at any price.” In the chaos of the
meltdown, the value of silver will soar. It is a perfect
hedge.
===-===
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