The system can break entirely and it probably will.Whether it’s undersea oil volcanoes, above ground ones that are spewing ash into the atmosphere, rogue traders with fat fingers, Greece, Spain, Italy or Portugal and the rest of the first world going broke, all is clearly not well with the world. We have been deep within the eye of the hurricane these past 12 months but the winds are starting to kick up from the rear end of this monster storm that is destined to bring the system down.
Right now the panic is in Europe. Next week or next month the panic can spread to some other place like California, Illinois or New York where fiscal madness is overtaking certain states, towns and cities. The fireworks are only just beginning. Europe will eventually be followed by Japan and the United States. The math is against us. There is simply too much debt that should have never been taken on.
Illinois is bankrupt, financially, politically, and morally. When it comes to politicians in jail, Illinois is at the top of the list. The volcano has already erupted, but Illinois just sits, bankrupting companies the state owes money to but has not paid. - Mike "Mish" Shedlock
Whatever we are thinking or seeing the situation as it will be the unexpected event, the unforeseen catastrophe, the surprise punch that will catch us off guard. Once our system of peacefully resolving differences is broken, the loss of money and the crash of markets will be the least of our worries. The coming wipeout will be devastating to tens of millions of people around the world if not hundreds of millions. Meanwhile State lawmakers in New York are picking their noses instead of coming up with a working budget and this is going to explode in New Yorker’s faces in the next few months.
The system is terminal suffering from end game financial rot eating at the core of civilization. At the heart of the crisis is our inborn human propensity to self-destructive behavior, corruption and dishonesty, greed and need for power. Theologians have long referred to man’s fallen nature – his dark side – and wide is the path of destruction this side creates. And the devastating terror of usury is rearing up its ugly face showing us the sickening consequence of ignoring religious warnings against the shear evil of compound interest.
It’s a paradigm breaking time that is upon us and whatever new paradigms that can be assembled won’t be until the present system goes down. “The world economy is in a calm between a credit crisis turning into a currency crisis as the collapse of the private debt bubble is replaced by a government debt bubble that will also collapse. The world is at a point of no return for government debt as debt-to-GDP approaches 100%. When debt becomes too big, governments cannot control the interest rates and currency,” writes Bud Conrad from Casey Research.
The Automatic Earth reports, “If we glance through the litany of austerity measures voted in and proposed in Greece, Ireland, California, Portugal, New Jersey, Spain and New York State, we should pause for a moment to think about the effect of 5-10-15% salary cuts and of slashed healthcare programs for the poor and elderly, but most of all of what still lies ahead. What will be the result for various GDP numbers from all the pay-cuts. What will happen when the next 10-20% cuts are implemented. And then see that in the light of how all budgets are still based on ever-over-optimistic data about economic growth, recovery and stabilizing real estate prices.”
“And no, it’s not just Sacramento or Athens or Lisbon, the torn and frayed denial phase has grown old and weary. They are just the advance-screening theaters of a production more broadly distributed than the best planned Hollywood ad campaign. This feature will not just come to a theater near you, it will come to a street, a home, a family near you. Even if you’re lucky enough to escape the worst of it financially, you still can’t escape. And this time you’ll be caught up in the matrix, the möbius and the hologram of reality. What if you’re fine, but your family, friends and neighbors are not? What are you going to do? As everyone around us will get poorer fast, so will we.”
"What you can expect generally is no taxes and terrible cuts, absolutely terrible cuts," said Schwarzenegger press secretary Aaron McLear. Terrible cuts will bring about a terrible time for many if not all Californians. It could end up with a million poor kids starving on the streets. Americans don’t want to remember that millions starved in the Great Depression and will starve again in this even greater depression that is coming our way.
Today Americans find themselves in the midst of wars they did not want – barely understand – with a corporate governmental fascist regime at the helm and before it’s all over all that they have ever known will be turned upside down. All the lies will come crashing down and the scene will not be pretty. Sociopathic monsters have the whips and control the bridge and the engine room. When arrogance and deception know no bounds we risk not only civilization but our existence as a species.
The Daily Bell believes, “There is an Anglo-American elite with European roots, a supposed intermingling of royal and industrial families and Venetian bankers probably tracing their antecedents back to Rome and beyond, perhaps even apocryphally to Babylon. These families and individuals apparently believe they are born to rule and that normal human laws do not apply to them. They may have their own forms of worship, certainly their own exclusive customs, and likely don’t work for a living (not in the traditional sense), not even at Goldman Sachs. If anything, Goldman Sachs works for them.”
“Each crisis of the past, oh, century-and-a-half has been “solved” by more centralization. Along with technological progress, this is the dominant theme of our time. And the two are becoming ever-more complementary, as the means to track and control individuals evolves along with the will to do so. Sorry to sound apocalyptic, but talk of a “coup” that produces a “strengthened Eurozone” makes me very nervous,” writes John Rubino.
States are approaching their June fiscal year-ends and, as a result of staggering budget gaps, will soon announce austerity measures that will cost between one million to two million jobs for state and local government workers over the next 12 months. Then the real pain will start. That’s right, there is no light at the end of the tunnel on a shaft going down into the deepest dark hole man has ever created.