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Financial Collapse 2013

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Many economists and analysts have been warning of a Global Financial collapse is just up ahead. As 2012 draws to a close a number of those well known names have risked their reputations and predicted what lies ahead in 2013. I have pieced together some of those predictions.

[1]Jim Willie writes of a Gold Standard as a solution to the crisis nations find themselves in as the system collapses. 

The arrival of the Gold Standard as the solution is being slowly manifested in the form of a gold-core trade settlement system, which will drive a global Gold Standard. The new system will dictate bank reserves practices, and render the USTBond as a rejected toxic paper relic. It should arrive early in 2013. In the process, the Western nations will become impoverished, as they desperately cling to the failed system. Anger will rise. Disorder will prevail. The USDollars inside the United States will be trapped, then devalued as the public watches in shock. The power will shift East inevitably, with the shipment of Gold. A new era will begin.

BusinessInsider wrote of [2]Geralde Celente’s (23 Dec 2012) view ahead.

Gerald Celente, the popular trends forecaster of Trends Research, cites the work of a former Treasury official and warns that the bonds are in a massive bubble that will burst in 2013 in what will be a financial collapse like nothing we’ve seen before.

He recently spoke about it in an interview with King World News:

“This piece is being penned by Dr. Paul Craig Roberts, the former Assistant Treasury Secretary under Ronald Reagan.  And he is convinced that the bond bubble is about to burst.  This cannot continue to go on the way it is.  Everyone knows that the whole game is rigged, and so is this….

The whole game is rigged.  It’s ready to go down, and Dr. Paul Craig Roberts believes it’s ‘Bonds Away’ in 2013 as the bond bubble explodes and brings about a financial disaster even worse than the Great Depression.

Because the whole world is being propped up by these phony bonds and it’s going to collapse.  It has to happen.  Interest rates are going to start going up, and when they do the bond bubble explodes.  You cannot keep interest rates at zero for this amount of time and expect anything other than disaster to follow.”

[3]Jim Rogers expects based on the US having a recession every 4 years and the existing debt is so high that 2013 is going to be a disaster and for everybody to be very worried. For interview on MoneyNews click here.

be very worried about 2013 be very worried about 2014, because that’s when the next slowdown comes. In 2002 we had a recession in 2008, it was worse because the debt was so much higher, it is going to be even worse because the debt is so staggeringly high now. So if you are not worried about 2013, please get worried

Max Keiser on an interview (Aug 2012) on the Alex Jones show gave a timeframe of April 2013 at the latest.

April 2013 at the very latest when those tax receipts in the US will be spectacularly short.

. Goto 32 min

[4] Marc Faber sees 100% chance of Global Recession.

Dr. Marc Faber the Swiss fund manager and Gloom Boom & Doom editor is still expecting a global recession in 2013 when the economies of the world could take a hit from negative developments.

Speaking to CNBC‘s Closing Bell on Thursday, Faber still sees a 100% chance the world heads into recession, echoing a call he made in May, as he simply can’t see where growth will come from.

“If you look at the world, essentially Europe, the US, China and emerging economies that depend heavily on China, Europe is already in recession, the German economy is still growing slightly but likely to go into recession, the other economies are already in recession. The US has decelerated and I don’t see much growth in the next 6-12 months,” he said.

…….

When taken in concert, all the economies of the world could take a hit from these negative developments, he reckons. “I think we could have a global recession either in Q4 or early 2013.” When asked what were the odds, Faber replied, “100%.”

Is there anything the Fed or the Treasury can do, i.e. more quantitative easing?

“If you look at the injections of liquidity and the interventions by the Fed and also by the Treasury with fiscal measures over the last 15 years, [the measures] have actually already impoverished the U.S. economy,” he said.

John Williams (shadowstats.com) sees hyperinflation by 2013/2014

the economy is not going to recover. They are going to have to buy increasingly more and more as it does so the treasuries actually add to the increase of the money supply and that adds to the inflation pressures from there. where i see the risk and  where i see the trigger here from moving into a hyperinflationary circumstance in the next year or two. By 2014 is the outside timing I put on it. Very simply is a panic decline in the dollar.

See 12:40 min

[5]Peter Schiff has been bullish on gold and has been proved right down through the years. Schiff has also be very vocal in criticising the state of the US economy and has predicted a US Treasury collapse in 2013.

Market-Crushing Treasury Collapse To Hit Around 2013 , Peter Schiff expects the coming crisis to blow the 2008-9 financial crisis out of the water.“The more you delay it,(The FED’s ultra-loose monetary policy ) the bigger it will be,” “so we need to raise interest rates during the recession to confront the inefficiencies.” Peter Schiff told Forbes in a phone interview – via Forbes

[6]Michael Kreiger in an article on ZeroHedge (Oct 2012) believes 2013 is when the US finally experiences similar problems to the EU as the fiat dollar ponzi system comes to a boiling point.

As Nixon’s Treasury Secretary John Connelly said when confronted by a group of European Finance Ministers: “it’s our currency, but your problem.”  At the time he was correct, as we were at the very beginning of the fiat dollar standard.  41 years later the system is in its final days and our currency is about to become our problem as well.

There were always going to be massive consequences to keeping this ponzi alive.  What is extremely unfortunate is the small number of U.S. citizens that actually understand specifically that the root of every problem we face right now is the fiat dollar monetary system, because it gives all the power in the country to the Federal Reserve and the TBTF banks that tell Banana Ben Bernanke what to do.  Since 2008, many of the consequences of the fraud called American Crony Capitalism Inc. have been clear, but it has yet to hit the boiling point.  I believe that the boiling point will be hit sometime within the next six months, and 2013 will see the streets of America  beginning to look a lot like the streets of Spain and Greece.

Nobody sums it up better than this interview of Nicole Foss (Automatic Earth) on interest.co.nz of what lies ahead.

Potential Collapse scenario 1

Potential Collapse scenario 2 (Jim Rickards)


Sources:

[1] SilverDoctors,

[2] BusinessInsider,

[3] Jim Rogers,

[4] Lewrockwell,

[5] peterschiffchannel.blogspot.ie,

[6] ZeroHedge

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Marc Faber: Reset of Global Financial System Will Happen

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Marc Faber on CNBC

  • We have too much debt in the West that needs to be paid down or no growth.
  • We lived beyond our means since the 80s now its payback period.
  • There will be an eventual “reset” of the Global Financial System.
  • The Governments will avoid instigating he “reset” and will happen because of either currency collapsing or markets imploding.
  • When it does we will be lucky to have 50% of the asset values that we have today.

Wall St Rumor: Major Financial Institution To Crash. Could It Be Morgan Stanley?

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Its beginning to sound like 2008, with Bear Sterns and Lehman Brothers all over again. The signs all there, and a report from Beacon Equity Research suggests that Morgan Stanley could be the one to watch.

Recently we had the following reports.

Big money flows out of financial stocks by key financiers like George Soros and John Paulson were reported just last week and tens of billions of dollars have been withdrawn from the European banking system since Spring. The government for its part, has taken steps to lock down the banking system so that not only can customers no longer withdraw funds from money market accounts in the middle of a panic, but a recent federal court case set a new precedent that has essentially given the go ahead for banks and investment firms to use segregated customer deposit accounts to engage in highly risky trading strategies without the threat of ever being prosecuted.

..but Beacon Equity Research which analyises Wall Street chatter has pointed the figure at Morgan Stanley as possibly being on the verge of pulling a Bear Sterns.

Now, a report from analysis firm Beacon Equity Research suggests that there is an unusually high amount of chatter on Wall Street surrounding the possibility of another major financial collapse in the making. When the Department of Homeland Security or other intelligence services hear chatter they often raise the terror alert level, deploy federal SWAT teams and go on complete lock-down.

Thus, we should consider this latest piece of intel from those with their fingers on the pulse of Wall Street as a potential game changer:

Here is a piece from Beacon’s report:

With the stock price of Morgan Stanley (NYSE: MS) inches from its Armageddon lows of Oct. 2008, whispers of the imminent overnight collapse of this U.S. broker-dealer begin to surface.  Client funds, again, are at risk.

“I’m hearing rumors that another major financial house is going to implode,” says TruNews host Rick Wiles.  In fact, the name I’ve been given is Morgan Stanley . . .

“It’s going to be put on the sacrificial alter by the financial elite.”

Beyond the evidence of a teetering stock price—Morgan Stanley’s troubles may never go away—leading to bankruptcy, if traders can glean anything from the financial activities of front-running insider George Soros, the man who warned in Jun. 2010 that the global financial crisis has entered “act II.”

Adding to the speculation of a Morgan Stanley collapse, Bloomberg coincidentally pens an article on Aug. 23—the following day of the TruNews broadcast—in which the author Bradley Keoun recounts the dark days of Morgan Stanley at the height of act I of the financial crisis in 2008.

“At the peak of Morgan Stanley’s Fed borrowings, on Sept. 29, 2008, the firm reported that liquidity was ‘strong,’ without mentioning how dependent its cash stores had become on the government lifeline. . .” states Keoun.

But here’s where strong advice from Trends Research Institute founder Gerald Celente and former commodities broker Ann Barnhardt should be heeded.  Both consumer-friendly analysts implore investors and savers, alike, to withdraw from the financial system, warning that allocated brokerage accounts are not truly allocated.

Regulators were asleep at the switch in the cases of MF Global and PFG Best, both filing bankruptcy post 2008, taking customer funds with them to the financial grave.  Why not Morgan Stanley?

“They don’t give you the information to be able to decipher whether they have changed anything,” adds Hurwich.

Why an establishment cheerleader such as Michael Bloomberg would allow an article which serves to remind investors of Morgan Stanley’s financial problems at this time may lend some credence to Rick Wile’s sources, who hear chatter about the impending doom of Morgan Stanley.

The timing of the Bloomberg article is no coincidence.  Michael Bloomberg is only doing his part for the global banking cartel by tipping off that Morgan Stanley is ready for the “sacrificial alter.”  Get your money out.

Source: Beacon Equity
Via: Woodpile Report, Steve Quayle 

The following point is well made. Although rumours can be damaging and irresponsible, you also need to protect yourselves as the people you have charged to do this role have constantly disappointed.

We can make predictions or forecasts based on rumors and news, and often times we’ll be berated for acting to protect ourselves based on this information. Often, even rumors and chatter have been responsible for driving a particular stock or market up or down, so the very news itself, whether true or not, may set the ball in motion.

But, the fact of the matter is that neither the SEC nor Ben Bernanke nor Tim Geithner nor the White House nor mainstream financial pundits nor Wall Street insiders will ever tell us ahead of time that billions of dollars of our wealth is about to be wiped out.

We will only find out after the fact.

You’ve now heard the rumor. You’ve been following the news. The decision is in your hands.

Source: shftplan.com

Related Post: Jim Willie – Morgan Stanley Faces IMMINENT FAILURE & RUIN, May See 1st Private Stock Account Thefts

Death March To New Financial System

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ZeroHedge wrote a piece on the latest Thunder Road Report regarding our march towards the new financial system. After all, the signs are there as outlined below.

the two remaining “sacred cows” preserving the US dollar as the world’s reserve currency are:

  1. The belief that the Chinese will continue to buy US Treasuries; and
  2. The US dollar will maintain its monopoly on world trade.

Regarding number one, the Chinese have been sellers since the end of July 2011 (note the date). With regard to number two, have you noticed how China has set up currency swaps with nearly all of its trading partners? Have you noticed how Iran has been excluded from the SWIFT system and has begun selling oil to some countries in currencies other than dollars?

China has been preparing for dollar devaluation for nearly a year now, but hardly anybody has noticed. While everybody frets about the Euro, the dismantling of the US dollar’s reserve currency status is occurring within plain sight. I think a deal was done between the US and China in late Summer or early Autumn of last year. Have you also noticed how Ben Bernanke has used just about every unconventional method of monetary policy he’d discussed in his earlier writings on preventing deflation…bar one big one? Dollar devaluation. Let me repeat that, dollar devaluation.

We are heading into a truly mega-financial crisis. This is (another) classic “I hope I’m wrong, but…” report. I think the crisis is going to result in the transition to a new financial system as the current one implodes. Best guess is that it will be either happening, or perfectly obvious that it’s going to happen, within 6-12 months, i.e. within our investing time horizon.

This report connects a lot of dots and analyses each one of them. The dots include:

Dot – Loss of US AAA credit rating in August 2011
Dot – China lashes out at US “addiction to debt”
Dot – Peak in Chinese holdings of US Treasuries
Dot – China starts selling US Treasuries
Dot – Surge in the gold price in August 2011 followed by steep decline
Dot – Lock down of the gold price (using “paper gold”) ever since
Dot – Movement of large quantities of physical gold from London to Asia (notably China)
Dot – Collapse of MF Global
Dot – Radio silence on China being a currency manipulator
Dot – Exter’s Pyramid playing out in front of our eyes
Dot – Iran excluded from SWIFT system
Dot – BRICS countries signed the Master Agreement on Extending Credit Facility in Local Currency and the Multilateral Letter of Credit Confirmation Facility Agreement
Dot – US granted China a 6-month extension on sanctions for buying Iranian oil (India already had one)
Dot – Revisiting Bernanke’s old speeches on deflation
Dot – Operation Twist
Dot – Comments by World Bank President, Robert Zoellick
Dot – BIS proposal to upgrade gold to a zero risk weighted asset in line with sovereign debt as part of Basel III
Dot – Comments by Robert Rubin (“consigliere” to the elite)
Dot – Recent meeting between Kissinger and Wen Jiabao
Dot – Why debt deflation now would paradoxically precipitate hyper-inflation
Dot – Demise of the middle class (theme)
Dot – Putting all of the above in the context of the fourth (and ongoing) price upwave of the last 1,000 years
Dot – How each of the three earlier price upwaves came to an end.

Source: ZeroHedge

What Happens When Fiat Currency Dies?

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Nice article on ZeroHedge explaining the steps of a fiat currency dying.Funny ting is, the pattern has remained the same for the last 4000 years. Why would it be any different this time?

 

This is today’s reality. It can happen here, it probably will happen here. And frankly, it’s all unfolding almost exactly as it has so many times before throughout history:

1. A nation rises to greatness and becomes wealthy based on sound principles and the hard work of initial generations.

2. Eventually, being wealthy becomes the natural expectation… an entitlement, rather than a goal to work hard for and achieve.

3. A nation begins living beyond its means to maintain the high life without the hard work, leveraging its credibility to trade tomorrow’s production for today’s consumption.

4. Living beyond its means eventually becomes unsustainable. Government begins to slowly, then staggeringly, devalue its currency.

5. The market (i.e. people) finally wake up to the fraud being perpetrated.

6. Financial repression usually follows– high taxes which steal from the productive, negative real interest rates which steal from the savers, etc.

7. Capital flight comes next. People take their money and run.

8. Governments implement capital controls, border controls, price and wage controls, and anything else they can do to maintain the status quo. People find out who the police are really there to protect and serve.

9. Capitulation (default) is the endgame; the system resets itself and begins anew.

This is nothing new. From the 3rd Dynasty of Ur (2000 BC) to Medieval Venice to the familiar stories of Rome and the Ottoman Empire, the world is full of monuments to the past greatness of failed civilizations.

We’re seeing the same pattern unfolding now. And sure, anything’s possible. Maybe the skies open up and the unicorns come out to play and the whole world manages to fix itself without skipping a beat.

But let’s live in reality: there are consequences when nations go bankrupt. And nearly every western nation on the planet is insolvent. That is a fact.

Certainly, the lies from our political leaders are entertaining. But how many more revolutions, riots, defaults, bank runs, stimulus packages, nationalizations, tax increases, pension grabs, etc. will it take to acknowledge what’s happening?

Can anyone afford to keep ignoring reality? Can you?

EU Has Worst Case Contingency Plans For Greece Leaving

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With the Greek elections on the 17 June, the EU is preparing worst case plans in the event that Greece would leave the euro. These include limiting ATM withdrawals and capital controls etc.

BRUSSELS (Reuters) – European finance officials have discussed as a worst-case scenario limiting the size of withdrawals from ATM machines, imposing border checks and introducing capital controls in at least Greece should Athens decide to leave the euro.

EU officials have told Reuters the ideas are part of a range of contingency plans. They emphasized that the discussions were merely about being prepared for any eventuality rather than planning for something they expect to happen – no one Reuters has spoken to expects Greece to leave the single currency area.

Belgium’s finance minister, Steve Vanackere, said at the end of May that it was a basic function of each euro zone member state to be prepared for problems. These discussions appear to be in that vein.

But with increased political uncertainty in Greece following the inconclusive election on May 6 and ahead of a second election on June 17, there is now an increased need to have contingencies in place, the EU sources said.

The discussions have taken place in conference calls over the past six weeks, as concerns have grown that a radical-left coalition, SYRIZA, may win the second election, increasing the risk that Greece could renege on its EU/IMF bailout and therefore move closer to abandoning the currency.

Even limiting travel is proposed.

As well as limiting cash withdrawals and imposing capital controls, they have discussed the possibility of suspending the Schengen agreement, which allows for visa-free travel among 26 countries, including most of the European Union.

….

Another source confirmed the discussions, including that the suspension of Schengen was among the options raised.

“These are not political discussions, these are discussions among finance experts who need to be prepared for any eventuality,” the second source said. “It is sensible planning, that is all, planning for the worst-case scenario.”

The first official said it was still being examined whether there was a legal basis for such extreme measures.

But the Greek people are still in love with the euro, rather how an alcoholic craves whats bad for it.

The vast majority of Greeks – some surveys have indicated 75 to 80 percent – like the euro and want to retain the currency, something Greek politicians are aware of and which may dissuade them from pushing the country too close to the brink.

However, SYRIZA is expected to win or come a strong second on June 17. Alexis Tsipras, the party’s 37-year-old leader, has said he plans to tear up or heavily renegotiate the 130-billion-euro bailout agreed with the EU and IMF. The EU and IMF have said they are not prepared to renegotiate.

If those differences cannot be resolved, the threat of the country leaving or being forced out of the euro will remain, and hence the need for contingencies to be in place.

Switzerland said last month it was considering introducing capital controls if the euro falls apart.

In a conference call on May 21, the Eurogroup Working Group told euro zone member states that they should each have a plan in place if Greece were to leave the currency.

Belgium’s Vanackere said two days after that call that it was a basic function of each euro zone member state to be prepared for any eventuality.

It’s all been well prepared for(check out older post from last December on the UK) , but we will be the last to know.

Argentina Bank Runs

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Reuters has reported of up to $100 million per day been withdrawn from deposits in Argentina. All the focus is on Europe and Spain at the moment but Argentina is struggling and a series of capital controls introduced by the government has prompted this action. Of course they have been through it before and know what to expect.  Up to 1/3 of dollar deposits have been withdrawn.

BUENOS AIRES, June 8 (Reuters) – Argentine banks have seen a third of their U.S. dollar deposits withdrawn since November as savers chase greenbacks in response to stiffening foreign exchange restrictions, local banking sources said on Friday.

Depositors withdrew a total of about $100 million per day over the last month in a safe-haven bid fueled by uncertainty over policies that might be adopted as pressure grows to keep U.S. currency in the country.

It appears to stem from fear in a Government clampdown as it struggles with the economy and is on the verge of monetary restrictions.

The chase for dollars is motivated by fear that the government may further toughen its clamp down on access to the U.S. currency as high inflation and lack of faith in government policy erode the local peso.

“Deposits keep going down,” said one foreign exchange broker who asked not to be named. “There is a disparity among banks, but in total it’s about $80 million to $120 million per day.”

Its getting harder for ordinary people to get their hands on dollars as there is a distinct preference over pesos.

The near-impossibility of buying dollars at the official rate is driving some savers and investors to pay a hefty premium in the black market.

Many are taking what dollars they can get their hands on and stashing them under the mattress or in safety deposit boxes, fearing moves by the government to forcibly “de-dollarize” the economy. Officials have strongly denied any such plan.

The president’s battle to slow capital flight and fatten the central bank reserves needed to pay the public debt has prompted even tighter controls in recent weeks, making it almost impossible to buy dollars at the official rate. The effects have been felt throughout the South American country’s economy.

For example. Argentines, who normally pay for new homes with stacks of dollar bills, have been struggling to get their hands on U.S. currency since Fernandez started imposing stringent controls on dollar buying late last year. [ ID :nL1E8H6EZ8]

She wants Argentines to end their love affair with the greenback and start saving in pesos despite inflation clocked by private economists at about 25 percent per year.

Fear from the recent past has driven this behaviour but its understandable.

But savers in crisis-prone Argentina are notoriously jittery. Memories of tight limits on bank withdrawals and a sharp currency devaluation remain fresh a decade after the country’s massive sovereign debt default.

“There is a lot of fear, considering everything that has happened before,” another foreign exchange broker said. “Confronted by risk, whatever kind of doubt, depositors pull their dollars out of the bank and wait to see what happens.

 

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