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19 Reasons to Start Preparing for a Global Economic Collapse

irish 2012/06/19 20:06:00


19 Reasons to Start Preparing for a Global Economic Collapse






19 reasons preparing global economic collapse
Michael Snyder, Contributor

Activist Post



Yes, it is officially time to start freaking out about the global
economy. The European financial system is falling apart and it is going
to go down hard. If Europe was going to be saved it would have
happened by now. The big money insiders have already pulled their funds
from vulnerable positions and they are ready to ride out the coming
chaos.



Over the next few months the slow motion train wreck currently unfolding
in Europe will continue to play out and things will likely really start
really heating up in the fall once summer vacations are over.



Most Americans greatly underestimate how much Europe can affect the
global economy. Europe actually has a larger population than the United
States does. Europe also has a significantly larger economy and a much
larger banking system. The world is more interconnected today than
ever before, and a collapse of the financial system in Europe will cause
a massive global recession. Once the global economy slides into
another major recession, it is going to take years to recover. The pain
is going to be immense. Yes, that is going to include the United
States. Sadly, we never recovered from the last recession, and it is
frightening to think about how much further this next recession is going
to knock us down.



The big problem is that there is simply way, way, way
too much debt in the United States and Europe. It has been a lot of
fun spending all of this borrowed money, but now we get to pay the
price.





The following are 19 reasons why it is time to start freaking out about the global economy....



#1 The yield on 10 year Italian bonds has now risen to more than 6 percent.



#2 The yield on 10 year Spanish bonds has now risen to more than 7 percent. This is considered to be an unsustainable level.



#3 Citigroup Chief Economist Willem Buiter says that both Italy and Spain are going to need major bailouts.



#4 The Spanish banking crisis continues to get worse. The following is from aCNN article that was posted on Monday....

But the depth of the nation's crisis has
raised doubts about whether €100 billion will be enough to recapitalize
the banks. For example, the Bank of Spain, the nation's central bank,
released data Monday showing that "doubtful" loans -- those that are
more than 3 months overdue -- rose to €152.7 billion in April, equal to
8.7% of all the loans held by the nation's banks.
#5 Unemployment in Spain is sitting at a record high of over 24 percent with no hope in sight.



#6 Unemployment in the eurozone as a whole has hit a brand new all-time record high.



#7 The socialists won an outright majority
in the recent parliamentary elections in France. That means that
France and Germany are now headed in completely different directions.
The close cooperation that we have seen between France and Germany in
recent years is now over.



#8 New French President Francois Hollande has promised to implement a top tax rate of 75 percent on those making over 1 million euros a year.



#9 German Chancellor Angela Merkel has declared that Germany will not budge at all on the terms of the Greek bailout.



#10 Analysts at Citigroup Global Markets are projecting that the
odds of Greece leaving the euro over the next 12 to 18 months are still between 50 and 75 percent.



#11 Money is being transferred from banks in southern Europe to banks in northern Europe at an astounding pace....

Financial advisers and private bankers whose
clients have accounts too large to be covered by a Europe-wide guarantee
on deposits up to 100,000 euros ($125,000), are reporting a 'bank run
by wire transfer' that has picked up during May.
Much of this money has headed north to banks in London, Frankfurt and Geneva,financial advisers say.
'It's
been an ongoing process but it certainly picked up pace a couple of
weeks ago We believe there is a continuous 2-3 year bank run by wire
transfer,' said Lorne Baring, managing director at B Capital, a
Geneva-based pan European wealth management firm.
#12 As I wrote about recently, about 500 million euros a day has been pulled out of Greek banks so far this month.



#13 The Bank for International Settlements is warning that global lending is contracting at the fastest rate that we have seen since the end of the last financial crisis.



#14 Lloyd's of London has publicly admitted that it is making preparations for a collapse of the eurozone.



#15 Government debt levels all over the industrialized world have
exploded in recent years. The following is from a recent article by Stephen Lendman....

Five years ago, OECD countries sovereign debt/GDP ratios were 70%. Today it’s 106% and rising.
Anything over 100% is considered to be an extremely dangerous level.
#16 The economic problems in Europe are already taking a toll on the U.S. economy. At this point U.S. exports to Europe are way down.



#17 One recent poll found that 75 percent of Americans are either "very or somewhat worried" that the U.S. economy is heading for another recession.



#18 Under Barack Obama, the United States has been indulging in a
debt binge unlike anything ever seen in U.S. history. The following is
from a recent Forbes article....

After just one year of the Obama spending
binge, federal spending had already rocketed to 25.2% of GDP, the
highest in American history except for World War II. That compares to
20.8% in 2008, and an average of 19.6% during Bush’s two terms. The
average during President Clinton’s two terms was 19.8%, and during the
60-plus years from World War II until 2008 — 19.7%. Obama’s own fiscal
2013 budget released in February projects the average during the entire 4
years of the Obama Administration to come in at 24.4% in just a few
months. That budget shows federal spending increasing from $2.983
trillion in 2008 to an all time record $3.796 trillion in 2012, an
increase of 27.3%.
Moreover,
before Obama there had never been a deficit anywhere near $1 trillion.
The highest previously was $458 billion, or less than half a trillion,
in 2008. The federal deficit for the last budget adopted by a Republican
controlled Congress was $161 billion for fiscal year 2007. But the
budget deficits for Obama’s four years were reported in Obama’s own 2013
budget as $1.413 trillion for 2009, $1.293 trillion for 2010, $1.3
trillion for 2011, and $1.327 trillion for 2012, four years in a row of
deficits of $1.3 trillion or more, the highest in world history.
#19
Barack Obama almost seems more focused on his golf game than on the
problems the global economy is having. He just finished up playing his 100th round of golf since he became president.



If you are looking for some kind of a global financial miracle you can stop watching.



If European leaders had a master plan to save Europe they would have shown it by now.



If Barack Obama had a master plan to fix things he would have implemented it by now.



If the Federal Reserve had a master plan to fix things we would have seen it by now.



The entire house of cards is starting to come down and things are going to get really messy.



A lot of people both in the United States and in Europe are going to
lose their jobs and their homes over the next few years. It is likely
that the next recession will be even more painful than the last one was.



Now is not the time to panic. If you acknowledge what is coming and prepare accordingly then you will likely be in good shape.



But if you stick your head in the sand and pretend that everything is
going to be okay then the next few years will likely be incredibly
painful for you.



This article first appeared here at The Economic Collapse. Michael Snyder is a writer, speaker and activist who writes and edits his own blogs The American Dream and Economic Collapse Blog. Follow him on Twitter here.





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Opinions

  • S. Gompers 2012/06/21 05:09:07
    S. Gompers
    +1
    People of the world, ignore all you see going on around you. It is all going according to plan...
  • irish S. Gompers 2012/06/21 11:55:52
    irish
    +1
    there ya go. the games go on.
  • Beccy 2012/06/20 04:32:27
    Beccy
    +1
    As above so below. The system is broken and is beyond repair. The economy and the government. All we can do is build up from the local level. THis is the US Natal chart. It would have been a good chart if the forefathers had know there was such a thing as pluto out there. The US has Venus, Jupter and the Sun in the second house. This is great for a country but not good when there is a square to the planets from Saturn and they are opposed to Pluto in the 8th house. Pluto in Capercorn is about big government, big corporations bankers and churchs. It's job is to bring the dirt up from the dark of the underground and bring the problems to the light of day. When Pluto made it's ingress into Capercorn in 2008 we started to see what was happening in the banks corporations and the government. People were surprised at how fast the information came to a head. When the 2nd house is hit by major transits we usually have a economic down turn in America. In gemini we have the US Uranus and Mars. Mars is square Neptune in Virgo. When the Gemini plants take a hit we face revolution, riots and war. On June 24th the first Uranu/pluto square hits. On this day their are 2 grand crosses one in Mulable and one in Cardinal. The mutable hits the gemini planets and the cardin...
    As above so below. The system is broken and is beyond repair. The economy and the government. All we can do is build up from the local level. us gemini chart THis is the US Natal chart. It would have been a good chart if the forefathers had know there was such a thing as pluto out there. The US has Venus, Jupter and the Sun in the second house. This is great for a country but not good when there is a square to the planets from Saturn and they are opposed to Pluto in the 8th house. Pluto in Capercorn is about big government, big corporations bankers and churchs. It's job is to bring the dirt up from the dark of the underground and bring the problems to the light of day. When Pluto made it's ingress into Capercorn in 2008 we started to see what was happening in the banks corporations and the government. People were surprised at how fast the information came to a head. When the 2nd house is hit by major transits we usually have a economic down turn in America. In gemini we have the US Uranus and Mars. Mars is square Neptune in Virgo. When the Gemini plants take a hit we face revolution, riots and war. world chart forJune 24th showing the first Uranus pluto square On June 24th the first Uranu/pluto square hits. On this day their are 2 grand crosses one in Mulable and one in Cardinal. The mutable hits the gemini planets and the cardinal hits the Jupiter, venus and sun of the US. Think the great depression and the 60's rolled into one. This chart is not only bad for the US but also the world. Another thing most people are not aware of is the fact that in Japan there are three reacters that melted down last March and to keep them cool the responce people have been pouring radioactive water into the ocean. The debree from the earth quake in now landing on our shores. tHERE IS A fourth building with cores in a pool on the second floor that are exposed to the air. The building is barely standing and another quake could cause the whole mess to exploid and then the whole world has problems. Look for it to be a long hot summer and stay safe.
    (more)
  • irish Beccy 2012/06/20 12:27:05
    irish
    +1
    thank you.

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