As the global financial three legged stool predictably tips over, I see increasing support for my 2007 prophetic statements regarding a seven year period of global financial collapse and reset. All things being equal... it should all be said and done by 2014.
I am not an alarmist, merely an observer who chronicles observations.
In 2007 all indicators screamed imminent "correction"--not a slight correction but a catastrophic failure of global economic possibility.
The situation at that time was obviously well beyond any sort of sustainability, saving or subsequent salvage.
To state this in simple terms, direct and indirect debts accrued at all levels of society around the globe were hundreds of times greater than asset values used to secure them.
This would be equivalent to finessing a mortgage on a $10 Million home (actually worth $10 thousand) when you have no visible means of support or ability to make payments, made worse by the fact only $1000 of the secured funds was paid to the previous owner while the rest was spent on other things. Result... $10 million vanished never to be seen again and nothing to sell to recoup.
Double Dip for Dummies 101
And... so here we are, global debts worth more than multiple times the total of combined global assets and GNP, a place where the only "asset" available is more liability--unsecured promissory note debts. Last time I checked, paying off debt with more loans of hypothetical wealth does not cut the mustard.
Capitalism, (in effect)... has morphed into a new economic model... "Debtism!"
The disappearance of "capital" by default equates to negative equities across the board. In other words all "deposits" which are hypothetical until withdrawn... are not "net" available if called upon. If called upon in mass... fulfillment would not be possible. If sufficient "funds" were printed to honor withdrawal... the value of that currency would be literally worthless.
The global economic slippery slope has inclined vertical and has been surfaced with Teflon.
The eventual result looks inevitable-World wide debt default. The only question in my mind is "Planned or not?"
The answer though is irrelevant, the end result remains inevitable.
Yes! A few token attempts have been made to forestall the inevitable using hard earned tax payer money to stuff into the gaping holes of flushed out banks and corporations and yet all the Kings horses and all the Kings men... will not put this Humpty together again, the hard facts of mathematics precludes conventional solution. These so called "solutions" are equivalent to putting a blood transfusion from the patients left arm to their right arm while ignoring the blood flow pouring from the ripped apart legs.
Where are we now in 2012?
This article is fairly typical of the daily announcement inundating mainstream media on the subject.
Mr Roubini, the New York University professor dubbed "Dr Doom", said a number of unpleasant factors would combine to derail the global economy in 2013, including an escalation of the eurozone crisis.
Other factors included further tax increases and spending cuts in the US that may drive the world's largest economy into recession; a hard landing for China's economy; a further slowdown in emerging markets; and war with Iran.
"Next year is the time when the can becomes too big to kick it down [the road]...then we have a global perfect storm," he told Reuters.
Following a flat year this year, he said US markets could be in store for sharp falls next years, with the Federal Reserve powerless to stop it.
I am no expert... but did see it coming in 2007 - quite easily (as did my one eyed cat).
My thoughts then were, "This is a universal "correction"... in the offing." -
... It even looked planned.
The idea is to create the same effect as a global sovereign debt default in order to jubilee the un-payable $rillions of I.O.U's - but without the bankster or politicos needing to make that decision - constituents would not support that.
The GRANDE reset and start over.
This way of skinning the cat will have the illusion of an unplanned, very unfortunate series of cascading sovereign debt events which appear to be unavoidable, unfortunate and yet not attributable to anyone/anything in particular.
I am sticking with that scenario until I see a shred of evidence otherwise.
All the headlines NOW... are conditioning for masses to accept this inevitability.
What this means to you is getting personal... for self-survival purposes in a chaotic socioeconomic environment it is prudent to consider short term options and longer term strategy. The people of Greece and other likewise smitten are experiencing a new reality... one that has not found bottom, or even YOU!...yet! Study the places submerged already... the aftermath there may prove prophetic.
Like they say, this is the tip of an unfathomable iceberg...