Two weeks ago, billionaire currency speculator George Soros said that the financial crisis in Europe had “taken a turn for the worse” and warned of “a long period of economic stagnation or worse” for the EU. Shortly after making those comments, the infamous market guru was back in the news for talking about betting against the euro. This week, he says the EU financial crisis reminds him of the collapse of the Soviet Union. Full Report →
“I fear that the political leaders of today will lead to a disaster. The euro threatens to destroy the European Union and, with the best of intentions, the leaders are leading Europe to its ruin by trying to impose inappropriate rules,” Soros said. Full Report →
Treasury Sec. Tim Geithner
Geithner April 2011: “Is there a risk that the United States could lose its AAA credit rating? Yes or no?” – Tim Geithner: “No risk of that.”
Geithner April 2012: “If we don’t deal with these debt problems we are going to be Greece in two years” – Tim Geithner: “No risk of that.”
…the absolute kicker, and here we flashback to April 2011 when Timmy said there was “No risk” of a US downgrade, was Geithner using his favorite catchphrase, this time in response to whether the US may become Greece in two years: “No risk.” Full Report →
Official Congressional budget estimates understate the peril of rising debt, Fed chair Ben Bernanke told the Budget Committee on Capitol Hill today.
Warning that our nation’s fiscal health has deteriorated appreciably since the onset of the financial crisis and the recession, Bernanke called upon lawmakers to confront the long term fiscal challenges sooner rather than later. If lawmakers don’t confront them, they’ll find themselves confronted by them. Full Report →
“The crisis has entered what may be a less volatile but more lethal phase.” Full Report →
After reading this, everyone should have a fairly good grasp of what happened not only today, but ever since the great (and quite endless) European financial crisis took center stage, and what to look forward to next…
U.S. Federal Reserve Chairman Ben Bernanke
From The Hill…
Congress risks taking the economy over a “massive fiscal cliff,” Federal Reserve Chairman Ben Bernanke warned lawmakers on Wednesday.
In remarks that hit Wall Street stock prices, the central bank boss suggested the economy could hit a serious roadblock if Congress allows the Bush tax rates and a payroll tax cut to expire and $1.2 trillion in spending cuts to be implemented simultaneously in January.
“Under current law, on Jan. 1, 2013, there’s going to be a massive fiscal cliff of large spending cuts and tax increases,” Bernanke told the House Financial Services Committee. “I hope that Congress will look at that and figure out ways to achieve the same long-run fiscal improvement without having it all happen at one date.
“All those things are hitting on the same day, basically. It’s quite a big event.”
Much has been spun in recent weeks to indicate that as a result of collapsing trade, Iran’s economy is in shambles and that the financial embargo hoisted upon the country by the insolvent, pardon, developed world is working. We had a totally different perspective on things “A Very Different Take On The “Iran Barters Gold For Food” Story” in which we essentially said that Iran, with the complicity of major trading partners like China, India and Russia is preparing to phase out the petrodollar: a move which would be impossible if key bilateral trade partners would not agree to it. Gradually it appears this is increasingly the case following a just released Reuters report that “Iran will take payment from its trading partners in gold instead of dollars, the Iranian state news agency IRNA quoted the central bank governor as saying on Tuesday.”
1930 Bread line
From USA Today…
NEW YORK – Behind the mainstream Wall Street happy talk about more stable financial markets and an improving economy are grim warnings of tough times ahead from a small cadre of doomsayers who warn that the worst of the financial crisis is still to come.
Harry Dent, author of the new book The Great Crash Ahead, says another stock market crash is coming due to a bad ending to the global debt bubble. He has pulled back on his earlier prediction of a crash in 2012, as central banks around the world have been flooding markets with money, giving stocks an artificial short-term boost. But a crash is coming in 2013 or 2014, he warns. “This will be a repeat of 2008-09, only bigger, when it finally hits,” Dent told USA TODAY.
"I Am Legend" 2007
From Wyoming Tribune…
CHEYENNE — State representatives on Friday advanced legislation to launch a study into what Wyoming should do in the event of a complete economic or political collapse in the United States.
House Bill 85 passed on first reading by a voice vote. It would create a state-run government continuity task force, which would study and prepare Wyoming for potential catastrophes, from disruptions in food and energy supplies to a complete meltdown of the federal government.