Economic Collapse In Process: This Process Will Have Some Surprises, It Won’t Be A Total Fast Shut Down, Things Will Look A Little Like The 2008 Crisis, With Only Half Of People Paying Attention

ID_KNOWL_CODE_AP_001When Hyperinflation begins…that’s when most folks will start to pay attention. I think we’ll be seeing huge chaotic signals in the markets by the end of 2014 (Q3 to Q4) but we might not see the actual hyperinflation begin until next year…

Is the Global Economy Slowly Falling Apart?

It’s conventional wisdom that the U.S. economy is steadily recovering from the recession, even if progress is slow and disappointing. But there’s also a widespread sense that long-term economic prospects are deteriorating all around the world. Young people can’t find jobs. Budgets keep being cut in both the public and the private sectors. And the projected increase in debt over the next decade figures to be a huge burden for the most highly developed economies. Political systems seem unable to cope with problems that ought to be fairly easy to solve, or at least contain. As the recent crisis in Cyprus demonstrates, a minor dislocation can become a threat to the entire global financial system overnight.

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The U.S. is deeply troubled too. Deficits remain enormous, and the checks and balances of the political system have turned into a logjam.  When the latest bubble pops, there will be nothing to stop the collapse.”

This view may be extreme, but there’s hard evidence to substantiate the idea that the global economy is becoming more rickety. Although the developed world today is considerably richer overall than it was when Stockman worked in the Reagan Administration, creditworthiness has been steadily declining. The global supply of AAA-rated government bonds has shrunk by more than 60% since the financial crisis began. And while dozens of big U.S. corporations had top bond ratings 30 years ago, today that group has dwindled to four: Automatic Data Processing, Exxon Mobil, Johnson & Johnson and Microsoft….

  • Economic Reality Finally Cracks Market Fervor
    As evidence mounts that a midyear slowdown is taking place in the world economy, the next few days will offer a clearer glimpse of how that will impinge on policymaking and buoyant financial markets.

Systemic crisis 2014: with record stock exchange highs, the planet’s imminent plunge into recession

Despite a feeling of relative calm given by both the media and the American and Japanese financial markets going from record to record, the world economy is slowing down badly and a widespread recession is looming. The various players are fully aware of it and, in the face of the challenges of an imminent collapse, countries or regions are putting various strategies in place to try and limit the consequences. Whilst some seem dictated by desperation or last chance solutions, others on the contrary bear witness to a real adaptation to the world’s current changes. And it’s no surprise that, in the first category, we find the “powers of the world before” which no longer have any real options.

Layout of the full article :
1. World recession in sight
2. The banks’ doubtful business
3. Tax haven all hell
4. Neo-protectionism between regional blocs
5. Emerging nations’ strategy in gold
6. The Fed’s last bullets
7. Euroland : national unity governments and the ECB to the rescue
8. High risk strategies

40 Statistics About The Fall Of The U.S. Economy That Are Almost Too Crazy To Believe

If you know someone that actually believes that the U.S. economy is in good shape, just show them the statistics in this article.

The following are 40 statistics about the fall of the U.S. economy that are almost too crazy to believe…

#1 Back in 1980, the U.S.national debt was less than one trillion dollars.  Today, it is rapidly approaching 17 trillion dollars…

National Debt

#2 During Obama’s first term, the federal government accumulated more debt than it did under the first 42 U.S presidents combined.

#3 The U.S. national debt is now more than 23 times larger than it was when Jimmy Carter became president.

#4 If you started paying off just the new debt that the U.S. has accumulated during the Obama administration at the rate of one dollar per second, it would take more than 184,000 years to pay it off.

#5 The federal government is stealing more than 100 million dollars from our children and our grandchildren every single hour of every single day.

#6 Back in 1970, the total amount of debt in the United States (government debt + business debt + consumer debt, etc.) was less than 2 trillion dollars.  Today it is over 56 trillion dollars…

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Total Debt

#7 According to the World Bank, U.S. GDP accounted for 31.8 percentof all global economic activity in 2001.  That number dropped to 21.6 percent in 2011.

#8 The United States has fallen in the global economic competitiveness rankings compiled by the World Economic Forum for four years in a row.

#9 According to The Economist, the United States was the best place in the world to be born into back in 1988.  Today, the United States is only tied for 16th place.

#10 Incredibly, more than 56,000 manufacturing facilities in the United States have been permanently shut down since 2001.

#11 There are less Americans working in manufacturing today than there was in 1950 even though the population of the country has more than doubled since then.

#12 According to the New York Times, there are now approximately 70,000 abandoned buildings in Detroit.

#13 When NAFTA was pushed through Congress in 1993, the United States had a trade surplus with Mexico of 1.6 billion dollars.  By 2010, we had a trade deficit with Mexico of 61.6 billion dollars.

#14 Back in 1985, our trade deficit with China was approximately 6million dollars (million with a little “m”) for the entire year.  In 2012, our trade deficit with China was 315 billion dollars.  That was the largest trade deficit that one nation has had with another nation in the history of the world.

#15 Overall, the United States has run a trade deficit of more than 8 trillion dollars with the rest of the world since 1975.

#16 According to the Economic Policy Institute, the United States is losing half a million jobs to China every single year.

#17 Back in 1950, more than 80 percent of all men in the United States had jobs.  Today, less than 65 percent of all men in the United States have jobs.

Check out this incredible way of becoming food independent on Backyard Liberty, and find out more about off-grid survival on Conquering the Coming Collapse.

#18 At this point, an astounding 53 percent of all American workers make less than $30,000 a year.

#19 Small business is rapidly dying in America.  At this point, only about 7 percent of all non-farm workers in the United States are self-employed.  That is an all-time record low.

#20 Back in 1983, the bottom 95 percent of all income earners in the United States had 62 cents of debt for every dollar that they earned.  By 2007, that figure had soared to $1.48.

Japan QE Suprise!  GLOBAL DEPRESSION “Trigger Mechanism”: Collapse of Japanese Govt Bonds – 10-Year Now at 1%!!! Japanese BOND Market Closed – Nikkei DOWN over 1000 POINTS!!! Start of Reflation Bubble Bust?!?!

  • Japanese Stocks Extend Overnight Plunge – Down Over 14% From Highs

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Christine Hughes, President and Chief Investment Strategist, discusses details of Japan’s radical monetary policy.

the key part of the video, for ease of viewing:

 

No easy way out of easy money for the U.S. or Japan: Dallara

Perhaps worries about the Fed’s quantitative-easing exit, which have triggered sharp losses for Japan stocks andbroke a four-week winning streak for Wall Street, aren’t exactly being overplayed.

“We’re expecting too much of the Federal Reserve, and Bank of Japan, and I’m growing increasingly concerned that we’re not going to find an easy and smooth exit out of QE in the U.S. or for that matter in Japan.”

That was Charles Dallara, the former managing director of the Institute of International Finance, a major lobby group for financial institutions, speaking to CNBC on Monday. Dallara was lead negotiator for private bondholders in talks to restructure Greek debt last year during the height of the European debt crisis.

Dallara, now chairman of the Americas at investment management company Partners Group, says he was a firm supporter of quantitative easing in 2009, 2010 and 2011, but now says the question must be asked as to whether that easy money has gone on too long and if the seeds are being sown for a “sharp correction not just in bond markets, but in stock markets.

“We’re running out of room for the Fed to be a dominant part of the solution of our recovery…in many ways it’s been the only game in town as the U.S. has struggled to get a handle on our fiscal deficit…frankly, I think we have a growing risk of a severe correction in the bond and stock markets.”

China Leaders Signal Tolerance for Slowdown; Policy Shift Planned

China’s President Xi Jinping signaled a tolerance for slower expansion to avoid environmental degradation as policy makers outlined plans for the private sector to take a bigger role in boosting growth.

The country won’t sacrifice the environment to ensure short-term growth, Xi said during a study session of the Communist Party’s top leadership on Friday. His comments followed a statement issued on the same day that the State Council, which is chaired by Premier Li Keqiang, approved measures including tax reform to revamp the economy.

Xi and Li, who took over respectively as president and premier in March, are laying the groundwork to cut the government’s role in the economy, open state-dominated industries to private investment and revamp the household registration system that’s hampering urbanization. Some changes are already being trialed, while others will be decided at a meeting of the Communist Party’s leadership later this year.

“Reforms are more pressing now; growth is running out of space, there’s more pressure on the labor markets and local governments have too much debt,” said Jean-Pierre Cabestan, head of the department of government and international studies at Hong Kong Baptist University who has studied Chinese politics for three decades. “They need to boost the economy but they can’t do it with another stimulus or some form of quantitative easing.”

21 Stock Market Warning Signs Giving Global Investors Cold Sweats

This past week saw the stock market sell-off a bit.With markets near all-time highs, is it possible we’ve seen the top?”They come and go,” said Jack Bogle, warning that the market is probably due for a 25-50% sell-off. “I went through one in 1973-1974, I went through one in 2001, 2002, 2003; I went through another one 2008-2009. They’re kind of scary — often terrifying — but it’s typical.”

Indeed, the bears seem to have an overwhelming number of reasons to be worried.

We’ve compiled 21 big warning signals that are keeping the stock market’s bulls on edge and its bears on the sidelines.

First, there are signs that the latest buyers are buying recklessly.ec_250x200_nf3-60ec08d

Also, there is a lot of proof that the outlook for demand is deteriorating, profits are falling, and profit margins are too optimistic.

And it’s not just a single company or industry sending warning signals. The breadth of warnings is both historic and startling.

If you’re an investor thinking about making a move in the stock market, then you should probably consider these warning signals.

Other useful resources:

Blackout USA (EMP survival and preparedness)

Conquering the coming collapse (Financial advice and preparedness )

Liberty Generator (Build and make your own energy source)

Backyard Liberty (Easy and cheap DIY Aquaponic system to grow your organic and living food bank)

 

SOURCE : investmentwatchblog.com

Are The Government And The Big Banks Quietly Preparing For An Imminent Financial Collapse?

Are-The-Government-And-The-Big-Banks-Quietly-Preparing-For-An-Imminent-Financial-Collapse-250x187Something really strange appears to be happening.  All over the globe, governments and big banks are acting as if they are anticipating an imminent financial collapse.  Unfortunately, we are not privy to the quiet conversations that are taking place in corporate boardrooms and in the halls of power in places such as Washington D.C. and London, so all we can do is try to make sense of all the clues that are all around us.  Of course it is completely possible to misinterpret these clues, but sticking our heads in the sand is not going to do any good either.  Last week, it was revealed that the U.S. government has been secretly directing five of the biggest banks in America “to develop plans for staving off collapse” for the last two years.  By itself, that wouldn’t be that big of a deal.  But when you add that piece to the dozens of other clues of imminent financial collapse, a very troubling picture begins to emerge.  Over the past 12 months, hundreds of banking executives have been resigning, corporate insiders have been selling off enormous amounts of stock, and I have been personally told that a significant number of Wall Street bankers have been shopping for “prepper properties” in rural communities this summer.  Meanwhile, there have been reports that the U.S. government has been stockpiling food and ammunition, and Barack Obama has been signing a whole bunch of executive orders that would potentially be implemented in the event of a major meltdown of society.  So what does all of this mean?  It could mean something or it could mean nothing.  What we do know is that a financial collapse is coming at some point.  Over the past 40 years, the total amount of all debt in the United States has grown from about 2 trillion dollars to nearly 55 trillion dollars.  That is a recipe for financial armageddon, and it is inevitable that this gigantic bubble of debt is going to burst at some point.

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In normal times, the U.S. government does not tell major banks to “develop plans for staving off collapse”.

But according to a recent Reuters article, that is apparently exactly what has been happening….

U.S. regulators directed five of the country’s biggest banks, including Bank of America Corp and Goldman Sachs Group Inc, to develop plans for staving off collapse if they faced serious problems, emphasizing that the banks could not count on government help.

The two-year-old program, which has been largely secret until now, is in addition to the “living wills” the banks crafted to help regulators dismantle them if they actually do fail. It shows how hard regulators are working to ensure that banks have plans for worst-case scenarios and can act rationally in times of distress.

Does it seem odd to anyone else that only five really big banks got such a warning?

And why keep it secret from the American public?

Does the federal government actually expect such a collapse to happen?

If federal officials do expect a financial collapse to occur, they would not be the only ones.  An increasing number of very respected economists are speaking about the coming financial collapse as if there is a certain inevitability about it.

For example, check out the following quote from a recent Money Morning article….

Richard Duncan, formerly of the World Bank and chief economist at Blackhorse Asset Mgmt., says America’s $16 trillion federal debt has escalated into a “death spiral,” as he told CNBC.

And it could result in a depression so severe that he doesn’t “think our civilization could survive it.”

A former World Bank executive is warning that our civilization might not survive what is coming?

That is pretty chilling.

Economist Nouriel Roubini says that he believes that the coming crisis will be even worse than 2008….

“Worse because like 2008 you will have an economic and financial crisis but unlike 2008, you are running out of policy bullets. In 2008, you could cut rates; do QE1, QE2; you could do fiscal stimulus; you could backstop/ringfence/guarantee banks and everybody else. Today, more QEs are becoming less and less effective because the problems are of solvency not liquidity. Fiscal deficits are already so large and you cannot bail out the banks because 1) there is a political opposition to it; and 2) governments are near-insolvent – they cannot bailout themselves let alone their banks. The problem is that we are running out of policy rabbits to pull out of the hat!”

Across the pond, many European officials are echoing similar sentiments.

What Nigel Farage told King World News the other day is very ominous….

Today MEP (Member European Parliament) Nigel Farage spoke with King World News about what he described as the possibility of, “a really dramatic banking collapse.”  Farage also warned that central planners want to enslave and imprison people inside of a ‘New Order,’ and he described the situation as “horrifying.”

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The situation in Europe continues to get worse and worse.  The authorities in Europe have come out with “solution” after “solution”, and yet unemployment continues to skyrocket and economic conditions in the EU have deteriorated very steadily over the past 12 months.

If all of that was not bad enough, there are an increasing number of indications that Germany is actually considering leaving the euro.

Needless to say, that would be a complete and total disaster for the rest of the eurozone.

Of course there are any number of ways that the financial crisis in Europe could potentially play out.

But all of the realistic scenarios would be very bad for the global economy.

Meanwhile, our resources are dwindling, war in the Middle East could erupt at any moment and our planet is becoming increasingly unstable.  The following is from a recent article by Paul B. Farrell ….

Fasten your seat belts, soon we’ll all be shocked out of denial. Some unpredictable black swan. A global wake-up call will trigger the Pentagon’s prediction in Fortune a decade ago at the launch of the Iraq War: “By 2020 … an ancient pattern of desperate, all-out wars over food, water, and energy supplies is emerging … warfare defining human life.”

It is almost as if a “perfect storm” is brewing.

Of course the historic drought that is ravaging food production in the United States this summer is not helping matters either.  Another summer or two like this one and we could be looking at a return of Dust Bowl conditions.

Anyone that is watching what is going on in the world and is not concerned at all about what is happening is simply being delusional.

Recently, a “team of scientists, economists, and geopolitical analysts” examined the current state of the global economic system and the conclusions they reached were absolutely staggering….

One member of this team, Chris Martenson, a pathologist and former VP of a Fortune 300 company, explains their findings:

“We found an identical pattern in our debt, total credit market, and money supply that guarantees they’re going to fail. This pattern is nearly the same as in any pyramid scheme, one that escalates exponentially fast before it collapses. Governments around the globe are chiefly responsible.

“And what’s really disturbing about these findings is that the pattern isn’t limited to our economy. We found the same catastrophic pattern in our energy, food, and water systems as well.”

According to Martenson: “These systems could all implode at the same time. Food, water, energy, money. Everything.”

Hmmmm – it sounds like they have been reading The Economic Collapse Blog.

The truth is that a massive worldwide financial collapse is coming.

It is inevitable, and it is going to be extremely painful.d608a82840b848b78f8a1b26ec02a8d4

Other useful resources:

Blackout USA (EMP survival and preparedness)

Conquering the coming collapse (Financial advice and preparedness )

Liberty Generator (Build and make your own energy source)

Backyard Liberty (Easy

SOURCE : theeconomiccollapseblog.com

Why You Absolutely Must Have Food Supplies, Hard Assets and Reserve Cash

While many refuse to believe that it can happen, evidence for why it is absolutely critical to stock up for hard times and worst case scenarios is and has been staring us in the face for the last several years (never mind the thousands of years of historical precedent).

The latest warning signs are, once again, popping up in Europe and should be taken seriously, as it is only a matter of time before such events play out in the rest of the world, including right here at home:

BNI depositors unable to make withdrawals / payments, payments of utility bills, mortgage payments, taxes

Peter Giordano, Adiconsum: “Grave of the Bank of Italy’s attitude that takes action without considering the impact on depositors, and especially on single-income families and pensioners”

The Bank of Italy authorized the suspension of payments by Bank Network Investments SpA (BNI) without communicating anything to the depositors.

Very serious and unacceptable – says Peter Jordan, Secretary General Adiconsum – the attitude of the Bank of Italy SpA in each BNI, because highly prejudicial to the interests of customers.

Bank of Italy, in fact, after extending the receivership of the bank, thus giving the impression of an imminent rescue, then gave the green light for compulsory winding up, without giving any prior notice to the depositors, leaving them in no condition to perform any type of operation, even basic ones for daily survival, such as withdrawals / payments, utilities payments, rates, taxes.

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This is not an isolated incident and we have, in fact, seen a similar scenario play out right here in America in the recent past with the collapse of Indymac bank (no affiliation with SHTFplan Mac), which left depositors without any way of accessing funds. The same happened across the pond in the UK with the collapse of Northern Rock.

Anxious customers wait to get their funds all over IndyMac banks in California after regulators took control in July of 2008:

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housands all over the UK headed straight for Northern Rock Bank once they learned it was no longer solvent in 2007:

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We have enjoyed relative stability in our banking system since the crash of 2008 as the Federal Reserve has pumped out trillions of dollars in funds to save banks that are, by all accounts, totally insolvent already. With the collapse of Europe now upon us and a similar disaster awaiting the United States in the next couple of years as our debts (private and public) exceed our abilities to repay them, we can fully expect “bank holidays” across the entire country.

There are those who may argue that these are the ramblings of a fear monger, but make no mistake, a nationwide bank holiday was already considered in the United States – and no, we’re not talking about Franklin Roosevelt’s closing of the banks in the 1930′s.

When? On the very first day, as the very first action of the new Obama administration in January of 2009.

Things got so bad after the financial and economic collapse of 2008 that the entire system as we know it was about to go under.

So much so, that Treasury Secretary Henry Paulson reportedly warned congressional members that if no bailout was passed in November of 2008 that the government would literally have been forced to declare martial law.

hat was nearly four years ago. And, as we well know now, not a single thing has been done to resolve the fundamental problems we faced then.

We are now so far gone that there is a real possibility that the next phase of this crisis – which is near critical in Europe now and will soon come to the United States – will be totally out of control of the government and central banks, which will leave them no other option but to shut down the banks before we have Great Depression style bank runs.

While we realize the mainstream media and the majority of Americans believe it to be an impossibility that they would not have access to their bank funds, online bill pay systems, or ATM’s, we’ll play devil’s advocate and suggest such an event may actually occur.

What if banks were closed? And what if when they reopened again your dollar was worth much less than when they closed for business?

This happened in 1934 after FDR devalued the dollar against gold during a bank holiday, it recently happened in Venezuela when Chavez devalued the local currency by 50%, and most notably in North Korea where residents lost 99% of the value of their wealth over night.

How would you pay your rent or mortgage? (Banks may be closed to your withdrawals, but be assured they will still want your monthly payment)

How would you buy food or toilet paper?

How would you pay your utility bills? (or what if your utility company couldn’t pay their bills?)

How would you pay for medical care or emergency medicine? (Or what if there were no medicines left to buy?)

How would you even get to the grocery store with your devalued dollars after economic martial law was declared and gas prices were so high you couldn’t afford them or gas itself wasn’t even available at your local gas station?

Are you planning on the National Guard giving you a ride?

Then again, this is America, and we have a centrally planned economy, so there is no way this is going to happen.

Nothing to see here.

Carry on.

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SOURCE  : www.shtfplan.com