- After Greece's government surrendered to banker occupation,
trends analyst Gerald Celente told Russia Today that:
-
- America's "economy continues to decline. There's
no recovery in sight." Across Europe in Greece, Britain and elsewhere,
people are reacting against forced austerity to assure bankers get paid.
-
- In fact, Trends Journal months ago called it "off
with their heads 2.0....The global ponzi scheme is under collapse....whether
it's in Egypt, Tunisia, whether it's in the UK, Greece. Watch out for Spain.
Here comes Italy. Ireland's coming up the backstretch. It's only going
to get much worse."
-
- "The people know the score....What killed capitalism
(is explained) in four simple words: too big to fail...The banks are failing,
and they want the people to bail them out....I want to make this clear.
The IMF is nothing more than the International Mafia Federation, the loan
sharks of last resort, and the people know it. They call it privatization.
Adults call it stealing valuable public assets, and selling them to your
friends really cheaply."
-
- In all these countries, "the politicians only represent
the people who give them the most amount of money....And what do these
austerity measures bring - a lot more poverty and unemployment." People
know it. They're mad, and they're reacting globally.
-
- Expect it eventually in America, the heart of predatory
capitalism, stealing from the many for the privileged few, bankers and
war profiteers always first in line for handouts, as much as they want
whenever they want it.
-
- On July 2, long-time former insider, market analyst/observer
Bob Chapman said world markets, especially America's, "are in a state
of uneasiness, and it's only a matter of time before they degenerate further.
The real question is will everything break loose between now and the end
of the year?" In part, it will, and it's currently happening.
-
- In fact, problems Chapman explained months ago "are
coming together like a bad dream. This could be a replay of 2008, but for
a different set of reasons." Wall Street is a reliable leading indicator.
-
- On June 16, New York Times writer Susanne Craig headlined,
"Wall Street Braces for New Layoffs as Profits Wane," saying:
-
- "Wall Street plans to get smaller this summer."
Faced with economic weakness, "many of the biggest firms are preparing
for deep cuts in jobs and other costs." According to Normura analyst
Glenn Schorr, "It's a tense environment right now," suggesting
hard times perhaps returning soon.
-
- According to Chapman, Greece's problems weren't solved.
They're festering greater than ever. More on that below. Moreover, sovereign
nation debt ratings "are falling like ten-pins. (We believe that)
euro, (Eurozone) and European Union problems....are unsolvable."
-
- "Little has been done to repair" the 2008 debt
crisis. Conditions across Europe, Britain and America are no better. Sooner
or later Greece will default, perhaps causing "a collapse of the world
financial system, as we know it....The entire financial sectors" in
Western countries "are more vulnerable now than ever" and getting
worse.
-
- Watch out. Failure somewhere could trigger panic globally.
Moreover, China's economy is slowing. Major inflation and real estate bubble
problems exacerbate it, and Japan's now back in recession. Overall, talk
of recovery is illusion, not fact, in the face of growing global deterioration.
-
- Financial expert and investor safety advocate Martin
Weiss has been warning regularly about deepening debt crises and likely
defaults. On July 4, his latest report is headlined, "Why the Great
Greek Tragedy Has Barely Begun," saying:
-
- The likelihood of Greek debt default is much higher than
ever, what Western governments and media won't explain until its debt bubble
implosion no longer can be hidden.
-
- Have bailouts helped? Absolutely not! In fact, global
institutional investors believe "the probability of a Greek default
is FOUR times greater today than (when) European officials announced"
their bailout.
-
- Moreover, when Lehman Bros. failed in September 2008,
"the most investors were willing to pay for $10 million in Greek debt
default coverage was $52,000. Today, they're paying 45 times more!"
-
- In fact, they know that force fed austerity, including
tax hikes, layoffs, spending cuts, lower government revenues, and public
asset fire sales won't avoid default. It's not if, just when and how badly
contagion spreads globally.
-
- What Greece and other troubled economies, entrapped by
IMF mandates, have done is sign their "own death warrant." Greece's
loans will keep it going another few months at most, "through the
summer, but not a single second longer," so it's back for more help,
more cuts, higher unemployment, less revenue, greater poverty on the road
to financial oblivion like other countries on the same path.
-
- As a result, Weiss sees three major financial crises
ahead:
-
- (1) Already reeling from America's greatest housing depression,
US banks face more crushing burdens ahead because of their exposure to
European banks that have loaned billions to Greece. When they're hit, US
banks go with them, those most exposed hammered hardest.
-
- (2) Vulnerable US money funds have "half of their
$1.6 trillion in assets in European banks." Moreover, "50 million
Americans have money in those funds!" When Greece defaults, they'll
be hard-pressed to repay what they borrowed. As a result, "breaking
the buck" may follow, meaning their share price value will fall below
$1, what most investors once thought impossible, but it happened after
Lehman collapsed.
-
- In late June, even Bernanke admitted that European bank
exposure "pose(s) some concern to money market mutual funds,"
a rare divergence from past rosy scenario predictions.
-
- However, danger signs extend well beyond money funds.
Virtually all global debt markets are vulnerable, including corporate commercial
paper and US Treasuries. When crisis conditions deepen globally, no financial
assets are safe. As a result, catastrophic consequences are possible.
-
- (3) "Washington is suffering from the same debt
disease as Athens," multiplied many times over. As a result, every
hardship Greece now faces offers "a sneak preview of what could be
in store (for America), barring" an unlikely major political miracle
as lawmakers debate exacerbating measures, not healing ones. No wonder
Weiss advises, "Above all, stay safe!"
-
- In Part 2 of his May Quarterly Letter to investors, GMO
asset management firm co-founder and chief strategist Jeremy Grantham headlined,
"Time to be Serious" by lightening up on risk exposure at a time
stocks are 40% overvalued and fixed income "badly overpriced."
-
- With red flags emerging everywhere, now's "not the
time to float along with the Fed, but to fight it," meaning safety
is essential over risk as beating odds gets longer in a global economy
getting sicker, not better, but don't expect Western governments or media
to explain.
-
- Stephen Lendman lives in Chicago and can be reached at
lendmanstephen@sbcglobal.net.
-
- Also visit his blog site at sjlendman.blogspot.com and
listen to cutting-edge discussions with distinguished guests on the Progressive
Radio News Hour on the Progressive Radio Network Thursdays at 10AM US Central
time and Saturdays and Sundays at noon. All programs are archived for easy
listening.
-
- http://www.progressiveradionetwork.com/the-progressive-news-hour/
|
