International Experts Foresee Collapse Of U.S. Economy

[Purveyor]

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."

---EOE---

http://www.intelligencer.ca/ArticleDisplay.aspx?e=918803+

[RUMMYisFROSTED]

1. We won't go down alone.

:(

[ayeshahaqqiqa]

5. No, it will be a world wide restructuring

but some areas, like India and China, will weather the storm better than we will, I fear.

[roguevalley]

13. since all this money only exists in our minds, I wonder if someone

with a propeller beanie on their head will just cancel their country's debt.

[thunder rising]

2. And we are going to need a LOT of hope and a uniter to get us through it.

[earth mom]

11. Like Gore. nt

[Mojambo]

3. 27 years of conservative economics

No one should be surprised.

[ayeshahaqqiqa]

4. What will that do to FDIC, Social Security, Medicare, etc?

Will the government even be able to finance them in any meaningful way? Or will they continue to send out the $800 a month to retirees, knowing that that amount will only buy a loaf of bread?

I've already sort of figured out that I'll be out of a job by then, because the business I work for will fold. I'm wondering how long the state will be able to pay unemployment benefits if there are massive business closings.

Taking my husband to the specialist this week-hope he gets medicine to make it so he can do some things-then I'm working at planting a garden and using money (while I still have it) to stockpile food.

[roamer65]

6. To follow the Great Depression timelime.

We are in early 1930 right now. There was a slight uptick, VERY slight in early 1930 followed by years of a downward spiral.

[The Traveler]

7. In the dimly lit drawing room of his secret underground bunker

Shadow Government President Dick Cheney regards this article, sips his brandy and smiles. "Ah. My work is nearly complete!"

[jonathanseer]

8. THE PR CHINA. Oil States WILL NOT ALLOW THIS TO HAPPEN

Commandante Bush's method of international management rests on one sole premise, a premise familiar to the wealthy but hard to comprehend as real or viable by normal people.

Rich people don't stress when they get massively in debt.

They know that only a bank that wants to go out of business will let a rich person truly go bankrupt.

Before anything like that happens, the debt will be restructured, some forgiven in order to ensure recovery.

Team Bush sees the axiom of the wealthy "At a certain point, when your debt is large enough. You end up owning the Bank, rather than the bank owning you" as irrefutable truth.

So he has worked diligently to make sure that was true in international economic relations.

One might say the Iraq war was a way of ensuring we own PR China this way. After all thanks to the war they are our #1 debtors.

Not far behind are our oil suppliers.

If we were to economically collapse as this article predicts, the biggest losers would be the two above.

If we were to collapse they will be out trillions of dollars.

We on the other hand will suddenly be free of trillions of dollars of debt and that would give us the margin to start recovering on their dime.

That construct is the handy work of our resident "genius" in charge heading Team Bush. Handy work that ensures the survival of a much diminished USA at the top of world nations, at the expense of millions suffering tremendously.

Of course it's sheer idiocy to place so much faith on a market player who do not play by the rules the PR China and Oil States.

All of whom have high levels of corruption, and are quite willing to do the unthinkable - which is let us collapse if they can survive intact.

One day they might just decide to do that, but currently, any collapse of the US Economy along the lines described in this article would devastate the PR China, Oil States and the rest of the world.

Worst of all, the world would end up at square one.

For those nations to lose everything only to have the USA end up on top of the heap no matter how depleted would defeat their purpose of letting us collapse.

They are waiting for the another time. When they're strong enough to weather our collapse. One they will be able to manage and plan; one that will remake the world economic order, dethrone the USA, and make China the world's #1 economic power.

This collapse is one that has all the signs of a collapse designed to suck the wealth out of our creditor nations, and return it to us to start the cycle over, preserving our place on top.

Of course this is a national strategy.

Millions of people will suffer, but since when has Commandante Bush and his demon in charge Cheney ever cared about the small stuff.

[RainDog]

10. really?

from the article- 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.

for years now... more than three, in fact, Emmanuel Todd has talked about this exact issue and how to make is possible for the U.S. to have a "softer" fall so that we do not endanger other nations... since our only economy is killing people. I recommend you read his book, After the Empire. As I've said before, Todd predicted the fall of the Soviet Union in the 1970s, and despite the Reagan myth, the CIA had already been telling Rummy, et al that the USSR was much weaker than any of them thought. -- sort of like the current invasion of Iraq and wished-for invasion of Iran.

The U.S. has become a pariah in the world b/c of the far right who have screwed this country economically and politically with the talibornagains.

China has created a market for its goods in its own country. The dollar has depreciated so much... would these nations rather lose value simply by devaluation or try to recoup something by being the first one out?

That will start this whole mess, imo. Countries, for a few years now, have not wanted to screw up the world economy (because, yes, all will be impacted) but when the noise is loud enough, one of them is going to say... time for me to get out rather than be the one left holding U.S. currency.

[cliss]

9. I got news.

"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."

No need to wait until the 3rd quarter of 2008. The storm is at our doorstep. Right now.
As of Friday (meaning = 2 days ago) the banks got a margin call notice. These are U.S. banks. It's expected they will not make their margin call (it was around $266 billion).

On Monday, people are expecting a big crash in the stock market.

It's here.

[bobthedrummer]

12. Totalitarian times are coming, privatized totalitarian times. n/t

[bhikkhu]

14. So get to work on those gardens!

As the collapse comes in September, this is fair warning to get a good crop in!

[november3rd]

15. Yes, We the People Can!

It hasn't happened yet. I heard about a story where 10,000 people ate all they could from 5 loaves and 2 fishes.

There is nothing we can't accomplish together, sharing the burdens and the benefits of the change that will restore our hope before the third quarter of 2008 is even here.

Let the pundits pund!

We have NOW, and NOW is infinte possibility.

Yes we can. Now.

[yurbud]

16. this explains the frantic pillage by Bush cronies: the elite rats are stealing everything that

isn't bolted down and preparing to jump ship.