Global Financial & Economic Meltdown

• Are we close to a worldwide financial meltdown? Will Gerald Celente and GEAB be right ? Will the entire world face a financial, economic and monetary collapse by March 2009? March is only 1 month away.
   
• Ty Andros warns in Collapsing Global Financial System Ponzi Scheme  :
    
  As economic activity and PONZI finance fall off the face of the earth, we enter the stretch run of the CON game known as the Bond and FIAT currency markets. Although both are headed for their ultimate demise, the path will be quite different. In 2009, these challenges will be headed your way. Prepare properly and thrive, or fail to do so and fall to your demise. 
    ….
  As every government policy failure appears, public servants will stroke the fear in the ‘something for nothing illiterate’ and use it to nationalize and destroy more and more of the private sector. They will double down on the spending, borrowing, printing and taxing required to pay for the next absurd idea to come out of the G7′s capitals. Look no further than Obama’s “Economic Recovery and Stabilization” stimulus package which spends 12 cents of every dollar on economic stimulus and 88 cents for sustaining and enlarging government spending and programs. A perfect name to DUPE America the Illiterate.
   
  Morally, fiscally and intellectually BANKRUPT public servants and crony capitalists. Now we know why the banks and financial sectors were the greatest campaign contributors in the last election cycle and Obama’s inaugural election. Decisions are being made upon political considerations, not economic ones. 
   
• American banks are close to bankruptcy. Look at the chart for the Top 5 below :
   
   
• These banks are representative of what all banks face: Insolvency ! Ty Andros again :
   
  This is a nightmare on WALL STREET and MAIN STREET . A one percent loss on outstanding loans and derivatives turns ALL the biggest banks in the G7 into TOAST. What do you think the odds are of this happening? 100%. Once you see the picture you will understand why they are extremely cautious with their lending; they are on a tight rope. I don’t care how much the mainstream financial media hoot and howl, these banks are WORTHLESS and so are their debt offerings. 
   
• What about Europe ?
   
  These countries and banking systems are FUNCTIONALLY bankrupt, and savers everywhere would be well served in dumping their debt before the ILLUSION of the ability to pay through anything but the printing press becomes generally acknowledged by the mainstream financial media. 
     ….
  Trillions of dollars of maturing debt in the G7 corporate sector will bankrupt many corporations as they DO NOT have the money to pay in full and cannot roll their obligations forward. Their businesses no longer create the revenues and profits to service their previous commitments, let alone take on new ones. EVERY corporate borrower is less credit worthy now (by a wide margin) than they were in July 2008. They are becoming less so every day as business continues to COLLAPSE. You can look for this blow out in spreads to continue. In September, I wrote BLOW OUT and BLOW UP about the banks and brokers; NOW this applies to CORPORATIONS in general. Corporate failures loom in huge amounts, ipso facto BOND DEFAULTS.
   
• What are G7 governments facing ?
   
  …the biggest deadbeats are the G7 governments themselves, perceived as being almost risk free; this could not be further from the truth. The level of G7 government debt as a percentage of GDP is many multiples of GDP. Most obligations are held OFF THE BOOKS to fool the broad public and INSTITUTIONS who purchase much of it. The US government’s liabilities are now almost $60 trillion, and CLIMBING at almost $10 trillion a year if properly accounted for. This is in an economy of $13 trillion BEFORE the unfolding collapse in GDP. 
    …….
  Rolling bankruptcies loom EVERYWHERE throughout the G7. G7 governments face trillions of dollars of NEW issuance and considerable rolling requirements for maturing DEBT. Bonds are IOU’S, denominated in IOU’s (fiat currencies) and PAYABLE in IOU’s, and sound like a SYNTHETIC CDO (collateralized debt obligation made up of NAKED CREDIT DEFAULT SWAPS issued by BANKS that are BANKRUPT). Bonds are BOMBS like a firecracker and you are just waiting for them to BLOW UP or are waiting to be paid off with PRINTED coupons masquerading as MONEY. Muni’s, Corporate’s, Federal, mortgages, Private Equity, credit cards, commercial bonds all have huge downside risk. This is BLACK SWAN time, over and over again in paper markets. Get out of bonds now while there are still fools to take your holdings from you; who are thinking that an economic recovery or the recovery of the ability to repay is only a matter of a SHORT TIME. It isn’t, and they are going to be SADLY MISTAKEN.
   
• Sharon Kayser has this to add in Global Bankruptcy as World Leaders Succumb to Monetary Dementia :
   
  Black clouds are gathering above the horizon. The IMF just announced that the world trade collapsed by staggering 45% in the last quarter of last year. Even the euphoria of Obama’s inauguration didn’t last long. The same day Dow closed below 8,000 as banking fears were gripping the European markets and bringing shockwaves from the United Kingdom too. British Banks got a £1TN injection which didn’t prevent RBS shares to plunge 70%. London is faced with a bloodbath. Brown admitted there is not yet a limit on how much risk taxpayers must bear as a result of his rescue plan, but he even promised financial institutions that they will get more cash if they pass it on . Looks like the Brits are too being set up for the mother of all crashes. With the UK government debt alone and future liabilities not included, this means that every new baby is born with £17,000 debt. 
   
• The industrialized economies are on the verge of bankruptcy. China will not be of much help. It has its own set of problems preventing its economy from dropping below 5%. The question is: when will the global collapse be, not whether? Will fiat currencies tank? Will there be financial chaos? Time will tell. Celente and GEAB forecast by March 2009. We will know soon!
   
• See also :
    
  GEAB : Systemic Economic Crisis: The Sequence of Global Insolvency Begins
  GEAB forecasts Next Financial Tsunami in March 2009
  Global Monetary Meltdown in 2009 ?
  America’s Debt – Ticking Nuclear Bomb!
  American & British Banks are Bankrupt!
  Economic Collapse of 2009 – Greater than Great Depression of 1929
  America is at the Edge of Niagara Falls
  Gerald Celente – Trends 2009
  Celente – Code Red ! Economy in Collapse !

end

Advertisement