Quantum Pranx


Preparing for the Big One, coming soon…

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by Deepcaster
Originally posted Nov 24, 2010

The pace and severity of financial crises has taken an ominous turn for the worse…. With one crisis seemingly begetting another, and the fuse between crises now getting shorter and shorter, the world economy is on a very treacherous course.” –Stephen Roach, Morgan Stanley, May, 2010

“Wherever we look at the world economy today, we see a wall of risk… and potential financial catastrophe. We see a large number of virtually bankrupt major sovereign states (US, UK, Spain, Italy, Greece, Japan and many more) teetering atop a financial system that is bankrupt, but is temporarily kept alive with phony valuations and unlimited money printing… The consequence of this rescue mission will be a hyperinflationary depression in many countries, due to many currencies becoming worthless.”
–“The Sovereign Debt Disaster”, Egon von Greyerz – Matterhorn Asset Management Zurich, February 23, 2010

“…full force of the economic crisis will hit us next year… The problem will get bigger before things can get better…”
–Angela Merkel, German Chancellor, November 11, 2009

“What this crisis reveals is a broken financial system like no other in my lifetime”
–Paul Volcker, Former Chairman, U.S. Federal Reserve, November 16, 2008

“This is going to be one of the worst economic downturns since the Great Depression.”
–Nobel Laureate Economist Joseph Stiglitz, April 25, 2008″

“Right now, the rest of the world owns $3 trillion more of us than we own of them. In my view, it will create political turmoil at some point. Pretty soon, I think there will be a big adjustment.”
–Warren Buffet, speaking at the University of Nevada, Reno, January, 2006

“We’re clearly on an imprudent and unsustainable fiscal path. Our current liabilities and unfunded commitments as of the end of the last fiscal year amounted to over $43 trillion, up to $13 trillion in one year alone.”
–David Walker, U.S. Comptroller General, April 11, 2005

“America has no better than a 10% chance of avoiding economic “Armageddon.”
–Stephen Roach, Chief Economist, Morgan Stanley, Boston Herald, November 23, 2004

“…the U.S. government is, indeed, bankrupt, insofar as it will be unable to pay its creditors, who, in this context, are current and future generations to whom it has explicitly or implicitly promised future net payments of various kinds…”
–Professor L. Kotlikoff, for the U. S. Federal Reserve Bank of St. Louis, July, 2006

“There are disturbing trends: huge imbalances, disequilibria, risks — call them what you will. Altogether the circumstances seem to me as dangerous and intractable as any I can remember, and I can remember quite a lot. We’re borrowing so much from abroad that we’re skating on thin ice. Can we correct this problem without some kind of international financial crisis?… I don’t know whether the change will come with a bang or a whimper, whether sooner or later. But as things stand, it is more likely than not that it will be financial crises rather than policy foresight that will force the change.”
–Paul Volcker, Former Federal Reserve Chairman, April 10, 2005

“Attempts to bail out the Irish banking sector via multinational loans will only increase debt burdens in Europe and lead to a nightmarish scenario there… There is too much private debt in Ireland, and aid from the International Monetary Fund, the European Union or whoever merely amounts to pushing the payday down the road and ultimately increasing the total amount owed in the end… Now you have a bunch of super sovereigns – the IMF, the EU, the eurozone — bailing out these sovereigns… Nobody from Mars or the moon will bail out the IMF or the eurozone once Ireland’s debt is socialized… At some point you need restructuring… At some point you need the creditors of the banks to take a hit — otherwise you put all this debt on the balance sheet of government. And then you break the back of government — and then government is insolvent… If Spain falls off the cliff, there is not enough official money in this envelope of European resources to bail out Spain. Spain is too big to fail on one side — and also too big to be bailed out.”
–New York University economist Nouriel Roubini: “Debt Nightmare Unfolding in Europe”, Nov 19, 2010

“History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance.”
–President James Madison

“Americans over-consumed and over-leveraged, but who enabled that trend to take place? Only the lenders could have facilitated such a spending spree. So then it was the predatory lending of banks? In part, but we must go further to the root of the problem. Who directs the lending capacity and practices of the big banks? Why the central bank, of course! Ever since the Depository Institutions Deregulation and Monetary Control Act passed in 1980, all banks fall under the purview of the Federal Reserve. It was the Federal Reserve that artificially lowered interest rates and borrowing costs to historically low levels in order to excite the debt bubble which then burst in 2008. Credit was easy. In fact, it was so easy that big banks practically threw money at people unqualified to handle mortgage payments.”
–Giordano Bruno, “Economic Implosion Sets The Blame Game In Motion”, Neithercorp Press, Nov 19, 2010

Illustration above: “All is Vanity” 1892, by C. Allan Gilbert, US


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