The economic situation today is drastically worse than a couple years ago, and the euro is doomed as a concept, Nassim Taleb, professor and author of the bestselling book "The Black Swan," told CNBC on Thursday.
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CNBC.com Nassim Taleb |
"We had less debt cumulatively (two years ago), and more people employed. Today, we have more risk in the system, and a smaller tax base," Taleb said.
"Banks balance sheets are just as bad as they were" two years ago when the crisis began and "the quality of the risks hasn't improved," he added.
The root of the crisis over the past couple of years wasn't recession, but debt, which has spread "like a cancer," according to Taleb, who is now relived that public attention has shifted to debt, instead of growth.
The world needs to prepare itself for austerity, he warned. "We need to slash debt. Unfortunately, that's the only solution," Taleb said.
Other analysts warned about austerity programs spreading from the euro zone to the US where the growth in debt will become unsustainable over the longer term.
A good way of getting rid of DEBT is to get rid of the Federal Reserve and its fiat money system and maybe all fiat money systems in all countries.
ReplyDeleteLook at your US money it says DEBT right on it.
The DEBT and compound interest on money printed out of thin air is a basic part of the problem.
The housing crisis costs how much versus the to wars the USA is involved in.
The Federal Reserve funds all the PONZI schemes of the USA government. Thus the DEBT could just be the result of PONZI schemes.
So who goes to jail? The Bankers and people behind the Federal Reserve FRAUD
Austerity isn't the only answer. That is a flat out lie. The bankers know the debts can never be paid back regardless the amount of "cutting back." And why do they never mention a debt forgiveness jubillee? Surely something could be worked out with China and Japan with the proper incentives.
ReplyDeleteThey won't discuss this because the whole point is to eliminate the European and American middle classes via these austerity measures. They want everyone destitute and dependent on gov handouts. Then they can push any legislation they want like cap and trade, VAT taxes, UN gun control treaty, green police, internet controls, global bank and new reserve currency etc. They could never pass these laws in a normal economic climate. A population preoccupied with economic survival is politically impotent, and cannot mobilize to rally against this legislation.
The sheeple will be none the wiser because Bill O'Reilly and Wolf Blitzer will never tell them this. They'll think all of it was caused by people lying on their mortgage applications. LOL.
I hear you 9:56 but unfortunately when the FR owns Congress, the courts, and our sock puppet in charge, nothing will happen short of starting from scratch.
ReplyDeleteJail Helicopter Ben?
ReplyDeleteYOU r not FIT
To sweep the microhair trimmings
From Ben's beard
You serf
Ben will be tapping
Pink anu
In the New World Odor
While YOU are becoming
Becoming fossil fuel that is
Pushin' up non-GMO seed
Maybe they'll bury your GOLD with you
Maybe not
But buy it any way
Sucka
Truf
got gold
ReplyDeleteone day you wish you didddddddddddddddd!
He's got it all wrong. The root of the crisis is peak oil. If you read EIA charts, you can clearly see that Peak oil occured in 2005. Oil production is in an irreversible decline.
ReplyDeleteFunny thing is the markets keep going up,lol
ReplyDeleteSo all this rhetoric about all the gloom and doom is just that.......rhetoric
In the meantime I will keep on enjoying life. I have some boating to do this weekend...I imagine some of the posters here will be counting old silver coins in the hopes of trading them for a loaf of bread:-)
Tell the Gulf of Mexico production is in decline
ReplyDeleteThat sonofabitch has been spewing thousands of barrels a day for over 2 months - and will probably continue.
2:47,
ReplyDeleteWhy would you even inform people about that if it were true? You aren't going boating this weekend, you are probably a 17 year old who goes around blogs or forums posting insulting comments because you have a lack of self esteem so need to feel better by making degrading remarks about others.
So go have a funny time on the internet,lol
Yep, 2:47 is a 17 yr old chronic masturbator.
ReplyDelete4:26 and 4:48 are both wrong. I am a 38 yr old who does in fact have a boat, and if the weather holds out am going to do some skiing.
ReplyDeleteOh, and for 4:48, who is a 17 yr old flunkie who can't spell, it's mastrubator idiot.....now go grab your hand lotion and some kleenex
"austerity" is code word for short rations on food stamps for more tens of millions as the government cuts back on deficit spending on unemployment payments and other services in order to divert its tax revenues to pay off the government debts to domestic and foreign bondholders and dividends on all the socialised losses and assets on the Feds books. Third world wages levels.
ReplyDeleteThere are 6 "choices" or fixes I can imagine to resolve the debt/national bankrupty problem.
1.The current solution -More of the same with
"Austerity" a slow grind for many years in a long depression in order to pay off the bondholders and the socialised losses of the banksters and the rich out of already falling depressed Goverment revenues .
A Corporate Fascist /police State to head off any potential riots and disorders from the unemployed.
2.Induced Hyperinflation or the US government defaults on or revalues all debts and a reset for capitalism.
The Devil take the hindmost.
3.
Socialist , Protectionism and an end to "Free Trade" Capitalist Globalism , a search for a party or a Stalin to rebuild a productive industrial base.
4. Pray for a war and a faith based recovery .
5.A Jubilee year all round debt forgiveness.
6.the easiest of all is to cut out of the budget a probable trillion dollars a year for the cost of militarism and wars for empire .
Ah ...5:57pm commenter has it correct in his guess "solution" #1.
ReplyDeleteYes indeed, the bill for taking the banksters bad debts onto public books in coming due. What that means is Austerity for the masses so that the corrupt elite go scot free.
Congress,the president and the government regulators have been bought off by the ultra rich elite. The Fed is the elites primary tool to ensure that all financial activity is skewed to favor them. Yes indeed, a fascist police state is our future as sellouts become hired goons for the elite.
The only enemy, the only threat to the citizens of the USA is internal. It's homegrown and already in place.