Filed under: Alan Greenspan, bernanke, black monday, Britain, Canada, central bank, Credit Crisis, DEBT, Dow, ECB, Economic Collapse, economic depression, Economy, Europe, european central bank, european union, global economy, gold, Great Depression, Greenback, Inflation, interest rate cut, interest rate cuts, John McCain, liquidation, Paul Craig Roberts, platinum, rate cut, Stock Market, United Kingdom, US Economy
Forget 1987, This Could Be 1929 All Over Again
Analyst says economic winter could last 8 years, worst is yet to come
Paul Joseph Watson
Prison Planet
January 24, 2008
The huge debt bubble, which has artificially propped up the stock market since the turn of the millennium, could cause a new great depression according to one expert, who also predicts that investors will flock to buy gold as the dollar continues to plummet.
Financial analysts have been drawing comparisons between this week’s chaos and the October 19 1987 crash, known as Black Monday, when the Dow Jones Industrial Average dropped by over 22 per cent and markets sunk worldwide.
But Vancouver-based investment adviser Ian Gordon has gone a step further, seeing clear parallels between current events and those that foreshadowed the 1929 crash and ensuing depression.
“We’re really seeing a mirror image of what happened following the [19]29 peak in equity prices in the United States, and the subsequent crash in equities,” Gordon told the Georgia Straight. “We’re seeing really the mirror of…the huge debt bubble that was built into the economy in the ’20s in the United States. We’re now seeing the collapse of the debt bubble that was built into the world economies, but principally in the United States.”
Gordon levels the blame at Alan Greenspan for creating a huge bubble by injecting too much money into the system in an attempt to offset the “economic winter” that inevitably arrives as part of the boom and bust cycle of the fiat money system, arguing that the realistic peak in the stock market occurred in 2000.
Gordon predicts that the “economic winter” will last another 7 or 8 years and that the worst is yet to come, with the continued meltdown of the dollar causing people to flock to the safe haven of gold.
“As this whole collapse in paper assets begins to unfold, causing tremendous strain on the banking system, we will see a tremendous rush to gold, to own gold,” he said. “But I think the worst is definitely in front of us, and not behind us.”
Gordon slammed the huge 75 points rate cut as ineffective, arguing that neither banks or consumers want to engage because of the crippling problems of their existing debts.
The analyst’s conclusions are in line with those of Paul Craig Roberts, the father of Reaganomics, who on Tuesday warned that the mess could result in the dollar losing its status as the world reserve currency.
Roberts also cautioned that the rush to diversify into gold could make people’s assets a target for government confiscation, as happened in 1933, four years after the great depression.
SocGen raises questions over Fed rate cut
FT
January 24, 2008
The Federal Reserve had no inkling about Société Générale’s firesale of stock futures following the discovery of a rogue trader when the US central bank made its emergency interest rate cut.
The question being asked by some in the markets is: was the Fed duped into a clumsy and panicked move by the clean-up operation for Jérôme Kerviel’s mammoth losses for the French bank?
There are many prepared to believe that, without SocGen’s huge derivatives sales, the mood in the stock markets would not have been half as bleak.
“It is now clear that the Fed was panicked into a 75 basis point rate cut by the actions of a rogue trader and the bank’s unwinding of his positions,” said one London-based hedge fund manager. “The action also clearly suggests that their French and ECB counterparts did not tell them what had happened at SocGen.”
Read Full Article Here
Purchasing Power Of The DOW
http://www.youtube.com/watch?v=SjS60TaD_J8
http://www.telegraph.co.uk/money/m..01/24/bcnstig124.xml
A full-blown, prolonged recession in America is now inescapable
http://business.timesonline.co.uk/tol/business/markets/article3239801.ece
Crisis far from over, even with emergency cut
http://www.reuters.com/article/reutersEdge/idUSN2254342920080123
Home Prices Fell in ’07 for First Time in Decades
http://topics.nytimes.com/top/..michael_m_grynbaum/index.html?inline=nyt-per
Central Bankers Confront A New Inflation Calculus
http://online.wsj.com/article/SB120120201437714141.html
John McCain: ‘Underpinnings Of Economy Are Strong’
http://thinkprogress.org/2008/01/23/mccain-economy-strong/
Offers Buyouts In U.S.
http://lfpress.ca/newsstand/Business/2008/01/25/4792939-sun.html
Power Cuts Hits Platinum Production
http://www.platinum.matthey.com/media_room/1201266015.html
Bernanke In Hot Seat As Turmoil Spikes
http://www.breitbart.com/article..0057.eedjec8e&show_article=1
U.S. budget deficit likely to hit $250 billion this year as economy weakens
http://canadianpress.google.com/ar..kEBzG_OtLzsyA
Mad Money Cramer Wants Investigation of Federal Reserve
http://youtube.com/watch?v=Uj5t-O2mHH0
Top Economist Warns Of “Serious Breakdown” In World Financial System
http://www.prisonplanet.c.._serious_breakdown.htm
Bank of England Governor hints at rate cut as global markets bounce back
http://www.dailymail.co.uk/pages..489&in_page_id=1770&ct=5
Filed under: Alex Jones, bernanke, Big Banks, Britain, central bank, Credit Crisis, DEBT, Economic Collapse, economic depression, Economy, Europe, european union, Federal Reserve, George Bush, george soros, global economy, Great Depression, Greenback, housing market, India, Inflation, interest rate cut, interest rate cuts, job market, offshoring, Paul Craig Roberts, pound, rate cut, Stock Market, US Economy, Wall Street, WW2
Top Economist Warns Of “Serious Breakdown” In World Financial System
Father of Reaganomics warns that massive interest rate cut could undermine dollar’s status as world reserve currency
Paul Joseph Watson
Prison Planet
January 22, 2008
Father of Reaganomics and former editor of the Wall Street Journal Paul Craig Roberts today warned that the Fed’s shock 75 basis points interest rate cut would only succeed in putting average families through the ringer and could even portend the collapse of the dollar as the world reserve currency.
Speaking on The Alex Jones Show, Roberts said that average hard working families, and not money casino cowboy shareholders, would be the biggest victims of the latest downturn as a recession looms on the back of the surprise rate cut.
“The more important thing is the hardship for the average American family – many of them have not had any real increase in their income for years and they’ve lost jobs to offshoring, they’ve lost jobs to work visas for foreigners and now they’re confronted with losing jobs to recession,” said Roberts.
“They also are heavily indebted and have used up their home equity in consumption and many of them now have mortgages that threaten them with being homeless and so I think the worst part of this will not be felt by Wall Street and banks and shareholders but by the average American family – I think they’re now going to go through the ringer,” he concluded.
Roberts speculated on the impact that today’s rate cut would have on the dollar, further undermining its position as the world reserve currency.
“It is true that in the long run the decline of the dollar could cause it to lose its reserve currency role and if another currency has a rythm to take its place, it would be very hard to conduct international trade on the basis that it is now where you have a reserve currency that one accepts in payment,” said Roberts, adding that the massive interest rate cut today only signalled more inflation despite the tax rebate.
Roberts said that he expected the economic decline to be slow and gradual, but that it was inevitable that the living standards of Americans would drop, similar to when the pound lost 80 per cent of its value during the two world wars and lost its status as a world reserve currency.
Roberts said that the only solution to the current crisis was to cut the current defense budget in half and halt the offshoring of jobs by U.S. corporations.
“If they can’t do anything about that the world is going to conclude that the dollar is not going to be the reserve currency forever and they’ll start getting out from under it in larger ways and then that pressure on the dollar will mount and become stronger and it will completely cancel the ability to do anything about the domestic economy – whether it’s in recession or depression,” said Roberts, adding that a “real serious breakdown,” the likes of which have not been witnessed so far, will occur if these issues are not addressed.
Roberts said that it was difficult for ordinary people to diversify and find a safe haven because if they bought gold they would become a target for government theft just as happened in 1933.
Roberts added that a total breakdown of the global economy would take place, “If the destruction of the dollar’s role as world reserve currency continues and there’s not a clear alternative that arrives to take its place,” warning that it was the biggest danger and there would be “no way to survive” its impact.
Soros Predicts Worst Recession In 50 Years
First Post
January 22, 2008
Amid collapsing stock prices worldwide, the billionaire investor George Soros has told an Austrian daily, the Standard, that the United States is threatened with recession and the world is facing the worst financial crisis in half a century. “The situation is much more serious than any other financial crisis since the end of World War II,” Soros was quoted as saying.
He said over the past few years politics had been guided by some basic misunderstandings stemming from something that he called “market fundamentalism” – the belief that financial markets tended to act as a balance. “This is the wrong idea,” he said. “We really do have a serious financial crisis now.”
He added he was surprised how little it was understood that a US recession was also a threat to Europe. European shares duly fell nearly six per cent on Monday, their biggest one-day slide since 9/11.
Meanwhile in Mumbai, some market analysts are suggesting Soros shorted the Indian markets last week. Over 15 years after he shorted the British pound in September 1992 and earned one billion dollars, local market sources say one of Soros’s funds may have shorted the Nifty last week.
Filed under: Afghanistan, Brownshirt, Coup, Dictatorship, False Flag, Genocide, George Bush, Habeas Corpus, Iran, Iraq, Larry Craig, Nazi, Paul Craig Roberts, Preemptive Strike, Ronald Reagan, Saber Rattling, Shock and Awe, Troops, War Crimes, ww4
Former Reagan aide: ‘Brownshirt’ Bush among top ‘mass murderers of all time’
Raw Story
August 31, 2007
President Bush’s apparent plans for a preemptive nuclear strike on Iran will only add to the civilian death toll as a result of US intervention that has placed the president “high on the list of mass murders of all time,” a former aide in President Ronald Reagan’s administration known for strident anti-Bush rhetoric said Friday.
“Bush is too self-righteous to see the dark humor in his denunciations of Iran for threatening ‘the security of nations everywhere’ and of the Iraqi resistance for ‘a vision that rejects tolerance, crushes all dissent, and justifies the murder of innocent men, women, and children in the pursuit of political power,'” writes Paul Craig Roberts, a former assistant secretary of the Treasury. “Those are precisely the words that most of the world applies to Bush and his Brownshirt administration.”
Roberts, who has emerged as a fierce critic of Bush’s war policies, accused the president of ignoring habeas corpus and the Geneva Conventions, justifying torture and demonizing critics as anti-American.
“Bush … is responsible, according to Information Clearing House, for over one million deaths of Iraqi civilians, which puts Bush high on the list of mass murderers of all time,” Roberts writes in a column published Friday on antiwar.com. “The vast majority of ‘kills’ by the US military in Iraq and Afghanistan are civilians.”
A report last month found that US and NATO troops killed more Afghan civilians in the first half of this year than the Taliban.
Roberts said the media is too concerned with stories like Sen. Larry Craig’s (R-ID) arrest for allegedly soliciting sex, and Miss Teen South Carolina’s inability to answer a question.
“The war criminal is in the living room, and no official notice is taken of the fact,” Roberts writes. “Lacking US troops with which to invade Iran, the Bush administration has decided to bomb Iran ‘back into the stone age.'”
Roberts cites a recent RAW STORY report that the US is preparing a “massive” military strike against Iran to support his assertions.
“Encouraged by the indifference of both the American media and Christian churches to the massive casualties inflicted on Iraqi civilians, the Bush administration will not be deterred by the prospect of its air attacks inflicting massive casualties on Iranian civilians. … Clearly, turning the Muslim Middle East into a wasteland is the Bush policy,” Roberts writes. “For Bush, civilian casualties are a non-issue. Hegemony uber alles.”
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