Greg Hunter
The head of the International Monetary Fund, Christine Lagarde, said Friday the world economy is entering a “dangerous new phase.” Lagarde is referring to a debt bubble, the likes of which the planet has never seen before, and the possibility that it could all unravel at any moment. Uncertainty over the debt crisis in Europe is what caused the Dow to crash more than 300 points at the end of last week. What is Lagarde going to do about the debt problem? A CNBC story reported, “She warned that both advanced and emerging economies faced key economic challenges, and that governments must ‘act now’ to stop further contagion. ‘Policymakers should stand ready, as needed, to take more action to support the recovery, including through unconventional measures,’ Lagarde said.” (Click here to read the complete CNBC story.) Lagarde is surely talking about revving up the global printing presses for more bailouts.
“The U.S. and global financial markets remain extraordinarily volatile and unstable, with systemic instabilities offering the potential, again, of systemic failure. Following the collapse of Lehman in 2008, the U.S. Treasury and the Federal Reserve committed to preventing a systemic collapse at any cost. They created and spent, loaned or guaranteed whatever money was needed to forestall systemic failure, kicking the proverbial can down the road. Most of the actions taken then and since, however, were stopgap measures; little was done to address the systemic and economic crises fundamentally. At present, the system has moved enough further along the road that the can likely will be kicked again. Now, though, the road ahead drops off a cliff, well within current kicking distance.” I think the “kicking distance” and the “cliff” are somewhere between now and early 2013.
“The U.S. and global financial markets remain extraordinarily volatile and unstable, with systemic instabilities offering the potential, again, of systemic failure. Following the collapse of Lehman in 2008, the U.S. Treasury and the Federal Reserve committed to preventing a systemic collapse at any cost. They created and spent, loaned or guaranteed whatever money was needed to forestall systemic failure, kicking the proverbial can down the road. Most of the actions taken then and since, however, were stopgap measures; little was done to address the systemic and economic crises fundamentally. At present, the system has moved enough further along the road that the can likely will be kicked again. Now, though, the road ahead drops off a cliff, well within current kicking distance.” I think the “kicking distance” and the “cliff” are somewhere between now and early 2013.
vvvvvvvvvvv. danger, where, there, here. not on my watch hosay. Let me make this clear we will see revoltion. im gonna smash windows im gonna rip em a new one im gonna lead the way aint no one gonna hold me back, ive gotta keep a move on it. Puff daddy song reworded. lets get going people. we know where the fault line is. we know how to set booby traps. lets get out there folks, dig and work. all under the sun we shall have are new world. uhhh.
ReplyDelete- Sam