Nassim Taleb: World’s ’Problem’ Worse Than ’08!
- Make sure you get out of harm’s way in the coming global economic, financial and monetary collapse. Got physical gold yet?
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Taleb: World’s ’Problem’ Worse Than ’08
By Daryna Krasnolutska, http://www.bloomberg.com/
Nassim Nicholas Taleb, author of the best-selling book “The Black Swan,” said the current global market turmoil is worse than it was in 2008 because countries such as the U.S. have larger sovereign-debt loads.
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“Definitely, we face a bigger problem now and we will pay a higher price,” Taleb, who is also a professor at New York University, said today at a news conference in Kiev, referring to the turmoil during the last global financial crisis. “The structure of the problem has still not been understood. We haven’t done anything constructive in three and a half years. Nobody wants to do anything drastic now.”
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Concerns over the global situation have intensified as Europe’s debt crisis deepened and the U.S. economy showed signs of slowing. Standard & Poor’s lowered the U.S.’s credit rating for the first time in August, criticizing lawmakers for failing to cut spending or raise revenue enough to reduce record budget shortfalls.
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Federal Reserve Chairman Ben S. Bernanke signaled yesterday he’ll push forward with further expansion of monetary stimulus if needed.
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Taleb urged countries to keep their budgets balanced, criticizing President Barack Obama of “loading the U.S. with debt that our children will have to pay” and said that growth fuelled by government debt isn’t really growth. “Someone made a mistake lending and someone made a mistake borrowing,” said Taleb. “It is a mistake to transform private problems into public debt.”
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The U.S should “be aware of the importance of fiscal wisdom,” he said at the news conference, organized by investment bank Investment Capital Ukraine.
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The Revolution Against The Federal Reserve Starts Now! Repeal The Federal Reserve Act !
Don't you see the Illuminist pyramid and Satanic capstone on your dollar bill?
Physical Silver Running Out Because Its Spot Price Does Not Reflect True Investment Demand !
- Gold and silver bugs have been hit pretty hard for the past few weeks. But do not be discouraged. The bullion banksters can manipulate paper (futures) gold and silver prices on the Crimex all they want. The reality is: prices are so low that demand has exceeded supply and is causing shortages. The smart money is running to physical gold and silver.
- - This current takedown is like the receding of the ocean waves into the sea for kilometres, exposing the sea bed, corals ….before the huge tsunami comes. But make no mistake the huge upward moves in gold and silver prices are about to hit. The bullion banksters have covered their massive short positions by greater than 60%. They know what is coming! Up, up, up and away!
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Physical silver running out because its spot price does not reflect true investment demand
By: Peter Cooper, Arabian Money
Several readers of ArabianMoney have written to us over the past two weeks to express their astonishment at the current price of silver because demand here they live is so high that stocks have run out.
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Consider this comment: ‘I used to buy silver from a shop in Kobar in Saudi. From the last four weeks they said they ran out of silver. I cannot find anyone who sells silver in Saudi now. I asked them from where do they get their silver. They said the UAE. The problem is they only have 1kg bars…and I still cannot find any supplier.’
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No stock
Well don’t bother coming to the UAE. Our information is that the 1kg bars mentioned here and featured in a video on the website last month (click here) are all sold out too. We’ve also had feedback about low or no stock in Texas and Australia from big private bullion dealers there.
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Now what would normally happen when a commodity is in short supply is that the price would go up to encourage sellers to put some more into the market. That is presently not happening because the silver price is being artificially suppressed in the Comex futures market by the bullion banks acting on instructions from the Fed presumably, so why would you sell that silver cheaply if you happened to own some?
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But something has to give and it is the price of physical silver rather than the Comex price of the shiniest of metals. If you can find any silver these days you will pay quite a substantial premium over the spot price. But pay it because that is probably still a bargain compared to where silver prices are going.
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The truth is that silver is a rare metal, more rare than gold. Silver reserves have been estimatated at one-hundredth of gold reserves. Silver is after all consumed by industrial processes and reserves have dwindled over the years because the price has been kept so low for so long by market manipulation. Why is that?
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Silver price fixing
This market manipulation dates back to the last silver boom of the late 70s and the spectacular $50 spike in the price in 1980. The central banks then saw suppression of the silver and gold price as a part of their war on inflation. They clearly lost that war but kept gold and silver prices down until this decade.
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Thirty-one years later and we are still not back to those silver prices despite a seven-fold increase in the global money supply. On that reckoning silver ought to be $350 an ounce, not $30 today.
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However, the snap back for silver prices now has the capacity to be sensational, and far beyond the mini-spike in the first few months of this year from $30 to almost $50 again. So those who go seeking out physical silver to buy at current prices are going to be very well rewarded and soon, not in 31 years!
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ArabianMoney continues to stick with silver as our top tip for 2011 and that means a big rebound in the price before the end of the year.
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Bank of England Launches £75bn More QE!
- “It was a carefully contrived occurrence. International bankers sought to bring about a condition of despair, so that they might emerge the rulers of us all.“
Louis McFadden on 1929 Stock Market Crash. Louis McFadden died of poisoning shortly thereafter.
- - “The depression was the calculated ‘shearing’ of the public by the World Money powers, triggered by the planned sudden shortage of supply of call money in the New York money market….The One World Government leaders and their ever close bankers have now acquired full control of the money and credit machinery of the U.S. via the creation of the privately owned Federal Reserve Bank.”
Curtis Dall, FDR’s son-in-law as quoted in his book, My Exploited Father-in-Law
- - QE and debt monetization means currency debasement. It does nothing but stir inflation. The Illuminist central banksters would like us to believe that shifting money around, creating money out of thin air, playing numbers on their computer screen… generates economic growth. I don’t think so! Central banks are the cause of the economic depression. (emphasis mine)
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Austrian Economics
In contrast to most mainstream theories on business cycles, Austrian School economists focus on the credit cycle as the primary cause of most business cycles. Austrian economists assert that inherently damaging and ineffective central bank policies are the predominant cause of most business cycles, as they tend to set “artificial” interest rates too low for too long, resulting in excessive credit creation, speculative “bubbles” and “artificially” low savings.[32]
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According to the Austrian School business cycle theory, the business cycle unfolds in the following way: Low interest rates tend to stimulate borrowing from the banking system. This expansion of credit causes an expansion of the supply of money, through the money creation process in a fractional reserve banking system. This in turn leads to an unsustainable “credit-fuelled boom” during which the “artificially stimulated” borrowing seeks out diminishing investment opportunities. This boom results in widespread malinvestments, causing capital resources to be misallocated into areas which would not attract investment if the money supply remained stable. Austrian School economists argue that a correction or “credit crunch” – commonly called a “recession” or “bust” – occurs when credit creation cannot be sustained. They claim that the money supply suddenly and sharply contracts when markets finally “clear”, causing resources to be reallocated back toward more efficient uses.
- - Bank of England launches £75bn more QE
By Philip Aldrick, http://www.telegraph.co.uk/
The Bank of England has taken pre-emptive action to rescue the faltering recovery by increasing its money printing programme by £75bn.
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The Chancellor has cleared the Bank to increase the scale of its quantitative easing (QE) programme from £200bn to £275bn due to the deterioration in the economic outlook.
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In his letter of authorisation to Sir Mervyn King, the Bank’s Governor, George Osborne hinted that the Bank could consider using the funds to buy up to £50bn of “private sector assets”, which would potentially transform the way QE has been operated.
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So far, all but £1.3bn of the £200bn of existing QE has been used to buy gilts. But with gilt yields now even lower than during the first programme, economists are doubtful that a straight policy repeat would have much effect. Buying corporate or mortgage debt, as the US did in its original $1.7 trillion QE scheme, could help ease the credit strains in particular parts of the economy.
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Leaving rates on hold at 0.5pc, Sir Mervyn said in his letter to the Chancellor: “The pace of global expansion has slackened, especially in the UK’s main export markets. Vulnerabilities associated with the indebtedness of some euro-area sovereigns and banks have resulted in severe strains in bank funding markets and financial markets more generally. These tensions in the world economy threaten the UK recovery.
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“The available indicators suggest that the underlying rate of growth has moderated. The squeeze on households’ real incomes and the fiscal consolidation are likely to continue to weigh on domestic spending, while the strains in bank funding markets may also inhibit the availability of credit to consumers and businesses.
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…. for the full article click here!
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Bank of England Governor: World Facing Worst Financial Crisis in History
Sir Mervyn said the Bank had been driven by growing signs of a global economic disaster Photo: PAUL GROVER
- The crisis has stretched on longer than I expected. This has allowed more people to become aware and be prepared. At least, I believe, banks around the world are now fully aware of the potential cataclysm of a Eurozone sovereign debt collapse and are taking precautions. However, I still believe that the whole world will tank. Asia will do better than most countries but will still go into recession if not economic depression. This coming global economic, financial and monetary collapse is probably just weeks away!
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World facing worst financial crisis in history, Bank of England Governor says
By James Kirkup, http://www.telegraph.co.uk/
The world is facing the worst financial crisis since at least the 1930s “if not ever”, the Governor of the Bank of England said last night.
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Sir Mervyn King was speaking after the decision by the Bank’s Monetary Policy Committee to put £75billion of newly created money into the economy in a desperate effort to stave off a new credit crisis and a UK recession.
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Economists said the Bank’s decision to resume its quantitative easing [QE], or asset purchase programme, showed it was increasingly fearful for the economy, and predicted more such moves ahead. Sir Mervyn said the Bank had been driven by growing signs of a global economic disaster.
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“This is the most serious financial crisis we’ve seen, at least since the 1930s, if not ever. We’re having to deal with very unusual circumstances, but to act calmly to this and to do the right thing.”
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Announcing its decision, the Bank said that the eurozone debt crisis was creating “severe strains in bank funding markets and financial markets”.
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The Monetary Policy Committee [MPC] also said that the inflation-driven “squeeze on households’ real incomes” and the Government’s programme of spending cuts will “continue to weigh on domestic spending” for some time to come. The “deterioration in the outlook” meant more QE was justified, the Bank said.
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Financial experts said the committee’s actions would be a “Titanic” disaster for pensioners, savers and workers approaching retirement. Sir Mervyn suggested that was a price worth paying to save the economy from recession.
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Under QE, the Bank electronically creates new money which it then uses to buy assets such as government bonds, or gilts, from banks. In theory, the banks then use the cash they gain to increase their lending to businesses and individuals.
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By increasing the demand for gilts, QE pushes down the interest rate yields paid to holders of these and other bonds. Critics of the policy say it pushes up inflation and drives down sterling.
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…. for the full article click here!
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The Deutsche Mark is Coming, And Germany Will Still Lead The European Super-State!
- What we are about to see is the formation of the endtimes 10 horn beast! This is the Revived Roman Empire. What we are also about to see is the formation of the Mystery Babylon Whore. This is a re-engineered America 2.0, greatly enlarged (+Canada, Mexico, South America, ANZ, Middle East….??). The next step in the coming global economic, financial and monetary meltdown is world war!
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Daniel 7:7 (New King James Version)
7 “After this I saw in the night visions, and behold, a fourth beast, dreadful and terrible, exceedingly strong. It had huge iron teeth; it was devouring, breaking in pieces, and trampling the residue with its feet. It was different from all the beasts that were before it, and it had ten horns.
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Revelation 17:3-6, New King James Version (NKJV)
3 So he carried me away in the Spirit into the wilderness. And I saw a woman sitting on a scarlet beast which was full of names of blasphemy, having seven heads and ten horns. 4 The woman was arrayed in purple and scarlet, and adorned with gold and precious stones and pearls, having in her hand a golden cup full of abominations and the filthiness of her fornication.[a] 5 And on her forehead a name was written:
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MYSTERY, BABYLON THE GREAT, THE MOTHER OF HARLOTS AND OF THE ABOMINATIONS OF THE EARTH.
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6 I saw the woman, drunk with the blood of the saints and with the blood of the martyrs of Jesus. And when I saw her, I marveled with great amazement.
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EU Parliament Recommendation 666 (Page 47)
One day I saw a report in the Los Angeles Times about a European military alliance known as the Western European Union (WEU). What caught my attention was the map showing the 10 European nations that belonged to this alliance. I immediately recalled the Bible prophecies about the revival of the Roman Empire under 10 kings.
- - I believe that the Deutschmark is only a temporary solution before the full merger into a One World Currency.
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The Deutsche Mark is coming, and Germany will still lead the European super-state
by Patrick Henningsen, www.Infowars.com
Ever since the dawn of the European Union, it was clear that there was a power of three- France, Belelux and West Germany. Within these three continental economies is where you did find Europe’s power houses in innovation, manufacturing, agriculture and finance.
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But a game-changer happened in 1990, what the Germans referred to as die Wende (The Turning Point)- the process where the German Democratic Republic (GDR/East Germany) joined the Federal Republic of Germany (FRG/West Germany).
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Currently the EU is comprised of 27 member states, and after some 20 years of German reunification, it is now the single strongest economy in Europe, and ranks among the top 5 in the world. It’s manufacturing sectors, tech industries and their export markets are consistent and solid, and the country also boasts a surplus in its current accounts for both unemployment and health benefits.
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Next to the rest of the rest of Europe’s failing and jobless, debt-addicted crack-house socialist economies- Germany looks like the Uberman in comparison.
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Now the Greek debt issue is weighing heavy on Germany, and this latest crisis only confirms what forecasters and financiers have known for some time now- that for economic leaders, there is too much risk of exposure in the eurozone.
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So here comes the next big game-changer, or die Wende, for Deutschland: as Germany appears to be at their wit’s end playing the Euro bailout game by injecting their hard earned cash into the economic veins of Gamblers Anonymous global poster-child Greece, political pressure is coming to bear in Berlin, and penny has nearly dropped. Yes, rumors have been rife for weeks that the Germans are intending to walk away, having already ordered printing plates to resume the printing… of their Marks.
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This was confirmed this week by former White House economic advisor and Deutsche Bank board member Philippa Malmgren.
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“The German announce they are re-introducing the Deutschmark. They have already ordered the new currency and are asking the printers to hurry up”, said Malmgren.
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Here’s the bit that’s difficult to figure out: is it that Germany no longer wishes to be captain of a sinking ship, or is it more likely that was their plan all along?
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Financial guru Max Keiser dedicated his latest Episode 192 of the Keiser Report on Russia Today this week to the rise of the German Mark, and made it clear that he predicted on air many times before this moment would eventually arrive. According to Keiser, “The whole Euro project was a ‘trick-bag’ to reunify German under the umbrella of the Euro, and things went bad, as they inevidibly would do, they could eject themselves from the Euro, and there it is- The Deutsche Mark ”, explained Max Keiser.
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Experts are warning however, that the ascent of the Deutsche Mark may cause a rapid collapse in value of the Euro, but this may in turn offer Europe’s periphery nations a way out out of their mountain range of toxic mega debts.
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Keiser Report’s co-host Stacy Herbert summarized Malmgren’s announcement adding, “You can expect a European bank holiday, and then the devaluations will happen across Europe… huge inflation(of the Euro), therefore all of the money, all of the new liquidity is going to go into gold, diamonds, agricultural assets, energy prices, mined asset prices will rise. Default will reduce the debt burden and allow growth and inflation to return.”
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Orthodox skepticism says that the new Deutsche Mark would become ridiculously strong next to a crippled Euro is stoking fears of Euro hyperinflation and knock-on damage to the US dollar, an event which could potentially kill Germany’s export markets (unlike most first world economies, Germany actually make real good and sells them abroad). In a volatile global market place, this is also a real danger, one which will make Germans proceed with caution.
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…. for the full article click here!
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IMF Advisor: In The Absence of a Credible Plan We Will Have a Global Financial Meltdown in Two To Three Weeks!
- Global financial tsunami coming! Do not be deceived by the rally in the stock markets. They think that the EU leaders will come up with a plan to resolve the problem. I don’t think so. The amount required according to Bob Chapman is around US$5T. Where is the money going to come from? Even if they agree to come up with US$2-3T, it will mainly be from France and Germany. Both countries will become bankrupt should they do so! Sarkozy and Merkel will be voted out and the French and Germans will protest vehemently! The German government is rumored to have ordered the printing of the Deutschmarks. Now, rumors are swirling that the French government has ordered the printing of the French Franc. The Euro is toast! Got physical gold yet? (emphasis mine)
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BBC Does It Again: “In The Absence Of A Credible Plan We Will Have A Global Financial Meltdown In Two To Three Weeks” – IMF Advisor
by Tyler Durden, http://www.zerohedge.com/
A week after the BBC exploded Alessio Rastani to the stage, it has just done it all over again. In an interview with IMF advisor Robert Shapiro, the bailout expert has pretty much said what, once again, is on everyone’s mind:
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“If they can not address [the financial crisis] in a credible way I believe within perhaps 2 to 3 weeks we will have a meltdown in sovereign debt which will produce a meltdown across the European banking system. We are not just talking about a relatively small Belgian bank, we are talking about the largest banks in the world, the largest banks in Germany, the largest banks in France, that will spread to the United Kingdom, it will spread everywhere because the global financial system is so interconnected.
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All those banks are counterparties to every significant bank in the United States, and in Britain, and in Japan, and around the world. This would be a crisis that would be in my view more serious than the crisis in 2008…. What we don’t know the state of credit default swaps held by banks against sovereign debt and against European banks, nor do we know the state of CDS held by British banks, nor are we certain of how certain the exposure of British banks is to the Ireland sovereign debt problems.”
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About
Societal and economics observer and commentator with an endtimes, future history perspective. Follow me at Twitter: socioecohistory
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