A top-level financial insider at a multi-national bank recently explained why he believes the global economy has entered into uncharted territory and is now facing an imminent collapse in the near future.
The following provides the transcript of his comments when he was a guest on the Hagmann and Hagmann Report Radio Program on April 15, 2013. This person uses the alias name “V” for his protection. He has also been nicknamed “The Guerrilla Economist.” I have taken the liberty to move a few of his comments to group them by topic.
You are facing annihilation. It is like being on the Titanic and you know that the ship has already hit the iceberg. It is beginning to take on water and you are screaming from the smokestacks. You are screaming from the lifeboats for people to get out. But all you see is people just rearranging deck chairs and trying to update to first class. It is insanity. It is absolute insanity.
Today I got into a debate with somebody who said, “Oh this is just cyclical.”
This is not cyclical. What is occurring in the economy right now, there is nothing cyclical about it. You have to understand that what you’re facing right now is not cyclical. What you’re facing is an end game. What you’re facing is a financial time-bomb.
Never before in the history of the world has the world seen such levels of debt. This is not a cycle. This is a cataclysm. This is not a trend. This is a slaughterhouse. This is not a blip on the radar or a simple little fix. This is a precipice on a cliff that we are speeding over. That is where we are.
EUROPE IS IN TROUBLE
As I am talking to you, 17 out of the 17 nations that are in the European Union they are in a massive hemorrhaging meltdown. That is something that is trying to be mitigated and under-reported by the news media. 17 out of 17 nations, the whole entire 100% of the euro zone is in turmoil.
Back in June 2012 I put out an alert saying the euro has unofficially collapsed. Then I detailed how the official collapse is going to transpire. The world right now is in a total full-blown depression. We are in a depression. There are no if’s, and’s, or buts about it. The euro zone is dying. They are hemorrhaging. 17 out of 17 countries are in total turmoil. They are in total debt and total trouble. The UK, which is one of the countries that has not met the euro zone requirements as of yet, is also in a whole heap of trouble. Every single one of their banks are over-leveraged 40 to 1.
In Greece children are going hungry. Doctors, physicians, people with PhD degrees as I am speaking to you right now in Athens they are dumpster diving to get their next meal.
In Italy they don’t know what to do. Portugal is knocking at the knees. France is doing juggling acts and they don’t know what to do. Germany is in disarray. They don’t know whether they are coming or going. The UK is a time bomb. Their banks, every single one of them, including the Royal Bank of Scotland, including Barclays, including all of the other banks that are in the UK, all of them, they are all over-leveraged 40 to 1 on derivatives.
The next 10 months are going to be so critical. You’re going to see things happen economically the likes of which we have never seen. That overloaded carcass called Europe is going to die. When it dies it is going to spill over.
JAPAN IS IN TROUBLE
But the thing that is going to put Europe and America, the nail in the coffin, is going to be Japan. That is going to be the catalyst. I cannot emphasize that to you enough.
No other country is so over-leveraged in dollars as Japan is. No other country is so over-leveraged in euros. No other country has over a 220% debt to GDP ratio like Japan has. It is inevitability. That is going to be the thing that is going to bring it all down. That is why you are hearing of wars and rumors of wars. These crazy lunatic politicians feel that if they can usher all of us into a bigger war maybe they can stimulate our way out with another bubble, another rally, another profit for the top 1%. They would like to somehow inflate our way out of this turmoil but I’m telling you right now it is not going to work.
The last time I was on the air I really exposed Japan before anybody else in the world was talking about it. Right now Japan is facing skyrocketing inflation. Energy costs are going through the roof. There are reports from McDonald’s (in Japan) that they have raised their hamburger prices 25% from last week. Cost for various food items are going through the roof. This is what is happening. The news media mitigates and underplays it saying, “Oh look, consumer confidence is up in Japan. Oh look, sales of luxury items are up in Japan.”
What they fail to understand and fail to tell you the American public and the rest of the world is that those consumer figures that they like to plaster with accolades and achievement and little stars like for a kid who does not wet his bed, those little stars that they like to give, those figures were given during the holiday season in Japan. Overall consumer confidence there has collapsed. They report the unemployment rate has dropped. Yes, that is because half of the workforce has given up looking for jobs!
The Bank of Japan is printing to oblivion. They’re printing Yen to oblivion. And guess what folks, your country the United States is doing the very same thing. We are printing to oblivion. We are printing like there’s no tomorrow. It is a mathematical inevitability that this ship is going to sink. It is already taking on water.
If I were to tell you 10 to 12 years ago that central banks would be buying stocks and taking equity positions in the markets you would have thought I was crazy because it sounded like something that was totally unnecessary. But in fact that is exactly what they are doing. The Bank of Japan last month announced, “We are going to go ahead and buy derivatives.” It is insane. It is like a man who is dying because he ate rat poison but now he wants to eat uranium or plutonium to kill him even faster. Yet, this is what is happening. So this is not cyclical.
Japan is imploding. That will be the domino, the catalyst that will bring down the whole house of cards.
SPAIN IS IN TROUBLE
Spain has unemployment rates between 25% and 32%. They say it is 27% but it is not. It is in the mid-30s. For those who are college age the unemployment rate is over 50%. For everybody else the unemployment rate is in the mid-30s. They have massive problems.
In Spain right now you have tens or hundreds of thousands of people that are just squatters. They have lost their jobs. They are in their apartment complexes. They are in their condominium complexes. They are just standing there. They are sitting there. Nobody is forcing them out into the streets. They just can’t do that. It is better for these people to live in homes that they have not paid for, or roofs over their head that they have not paid the rent for, then being out in the street.
So I tell those who are renting to continue to rent and those who are paying a mortgage to continue paying the mortgage. How many times have we told you guys to get gold and get silver because the time to get it will draw less and less. Right now we are in the midst of a gold and silver shortage. People say to me, “Well, silver is X amount per spot.” They don’t understand the premium the dealers are paying right now. Things are getting very very difficult to acquire these precious metals.
The last time I was on I told you that the BRIC countries (Which includes Brazil, Russia, India, and China) are setting up a new BRICS World Bank, which is going to be a counterbalance to the IMF and the World Bank. Over half of the largest economies in the world are already divesting out of the United States dollar. They don’t want to touch it. They don’t want to use it. You need to understand that your world and your way of life is soon coming to an end. You need to understand that the way things have always been, business as usual, is no longer valid. It is no longer the same. Things right now are so different.
GERMANY IS IN TROUBLE
Last week I told you, if you read the alert that I sent over to Steve Quayle’s website, I talked about Germany. I said watch Germany. Months ago I said it. Watch Germany! Now we hear that the Germans, at first they said, “Let us have a little bit of our gold back. “Now they are asking for all of it back. (German gold has been held in storage in the United States for many years) So now we are going to go from 150 tons every three years
My inside sources have already told me that most of the gold that is shown to the German bureaucrats when they come to the New York Federal Reserve Bank is underground, 80 feet under ground on 51st St. and liberty, When they are shown that gold, it is not even real gold bullion bars. That actually is gold dipped tungsten just to assuage the fears of the German bureaucrats. The Federal Reserve actually has no gold. It is gone. It is already moved into other hands. It is been moved to other organizations. It has been moved to other places. They have set up an infrastructure because they are getting ready for a collapse. Before the collapse occurs you’re going to see movement of real tangible worthwhile assets. What does that mean? Very simply, you’re going to see flights from currencies that are dying to currencies that are strong. You’re going to see movements of wire transfers and transfers of wealth going from banks that are dying in debt to those that are viable. Most importantly, you’re going to see swings in precious metals. You’re going to see those swings move from the weak hands to the strong hands. You’re going to see a total integration, a total gathering together, a total concentration, so to speak, of the precious metals market and of the wealth into the hands of a few. Then they bring about the collapse.
From Deutsche Bank, the biggest bank in Germany, news just came out this week, and I have known about this for the last couple of years, they are overleveraged $72 trillion in derivatives. The German economy is barely a $3 trillion per year economy. And you have one bank that is $72 trillion in debt!
THE UNITED STATES IS IN TROUBLE
These things are occurring and yet we in the United States have still have not faced the full brunt of it. Why? Because United States just happens to have the luxury of being the world reserve currency. The time clock on that is already running out right now. You have economies that no longer want to deal with the dollar. You have countries that no longer buy our debt. You have people waking up to the fact that the Americans have been running a Ponzi scheme for the last 40 years. We are running out of people to lie to. That is the biggest problem right now in America in the American economic system. Nobody is buying our BS anymore. No one is believing that the US dollar is a safe haven except for morons.
The fires of economic turmoil are already starting to burn on these shores. Strange fires are starting to burn on these shores. Things are beginning to move and shake in the finance world.
The next 10 months are going to be critical because right now we are moving from what has been predictable and we are going into a very unpredictable time in the markets and in the economics globally.
MY COMMENTS:
Despite all of the facts presented by this financial insider, it is still hard for some people to accept the conclusion that we are in uncharted territory and that a financial collapse is imminent. Things are different now than ever before because of the traumatic impact of the collapse of the United States housing market in 2008. Because we are the world’s largest economy, the impact was felt all over the world. The global economy took a turn for the worse and has never recovered. In fact, all indications are the problems are getting worse.
Analysis of world economies since 2007, which was the year before the housing market collapse, shows the following:
- Government debts have increased significantly.
- Too big to fail multinational banks are still loaded with toxic mortgage loans, especially Bank of America.
- Bank debts from derivatives have reached mind boggling levels in the trillions of dollars.
- Worldwide unemployment levels have increased.
- Worldwide economic growth rates have slowed significantly.
- Foreigners dramatically cut back on purchases of United States treasuries.
- The United States Federal Reserve Bank bailed out the United States Treasury by ramping up purchases of treasuries and paying for them by printing money backed by nothing. The huge increase in the money supply devalued the U.S. dollar and ignited worldwide currency wars, which have continued to accelerate since 2008.
- Central banks have taken control of world markets and totally changed the dynamics of traditional markets.
- Central banks around the world have dramatically increased their purchases of precious metals, apparently preparing for the collapse of fiat currencies.
- The bills are now coming due from decades of socialist entitlement programs throughout the world. Governments are on unsustainable paths due to enormous financial obligations to pay for health care programs, welfare programs, social security programs, retirement programs for government workers.
All of the above factors have contributed to making the global economy today more fragile than ever before. Due to the enormous debt levels, there is no longer any room for error. Government’s ability to bail out failing banks or failing countries is severely weakened due to their own enormous debt levels.
The global economy is a house of cards that can be blown down by the slightest gust of wind. Any number of factors could trigger a collapse including a new war in the middle east, another major natural disaster such as an earthquake or tsunami like the one that hit Japan in 2011, failure of a large bank, etc.
So what can we do to prepare? My recommendations are to be putting away extra canned food items and other long expiration date food items, stocking up on drinking water, and purchasing as much silver as possible. Gold is also a good investment but silver is less likely to get confiscated by the government and has a history of outperforming gold.
More important that what you can do to take care of yourself, the best thing anyone can do it get connected with God, the one who is able to take care of you and your family in ways that go far beyond our limited abilities.
No matter how bad the global economy gets, those who know the Lord Jesus Christ and are walking close with with Him have the comfort of knowing that He is with them and that He will provide for them. God has a wealth of resources all by Himself, regardless of economic conditions. When these things begin to happen the world will be gripped with fear, but those who know the Lord will have no fear.
If you would like more information about how you can have a close personal relationship with the Lord Jesus Christ, click here. Getting to know Him is the wisest thing anyone can ever do.
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