We have gone past the point of no return. There is
a complete loss of confidence. The bond markets
are in disintegration and it is getting worse every day.
Chief Europe economist
Royal Bank of Scotland
There’s no good news from here on. The least bad prospects are turning dark as the world system dips its toes in the Greek waters just to feel out the nature of the huge crisis that is threatening to rain down on all of us. The situation is deteriorating rapidly and we can see that country has a long way to worsen from here. And right behind them a little army of countries, states, cities, counties and municipal governments ready to default on their promises because money is simply evaporating no matter how many trillions are thrown at the problem.
This thing is getting more
and more urgent and tense.
Credit Suisse in London
I wish I had some good things to say to you about the world situation but I simply don’t. Sure perhaps the simple creatures will inherit the earth but I am not looking that far ahead. The paper house of cards is going to be scattered on the wind and its going to crush a whole lot of people and that is infinitely sad but easily predictable. Some might accuse me of being negative but I have a powerfully optimistic nature. But when trains are about to collide and you are standing in the front car by the window seeing what’s coming straight on possibly the only positive thing one can do is to say ones prayers quickly.
If people get scared that Greece could default, they are
going to be scared that Portugal will default and then other
countries. Once people panic, they panic about everything.
We saw that in the wake of the Lehman Brothers failure.
Chief economist David Wyss
Standard & Poor’s in New York
Perhaps my imagery is not completely fair because so far everything is happening in slow motion. We will certainly wake up tomorrow morning and find an easing of the air in the newspapers but that does not mean anything is changing behind the scenes. Reality is a little more firm about itself than the newspapers and TV describe day by day. In fact reality continues on no matter what we think or what the papers happen to say.
I am basically shouting out to people as if they were
in the middle of a street about to be hit by a passing
truck but they cannot hear because the noise is so loud.
On April 22, the House of Representatives voted by a huge 403-11 margin to set a deadline of May 28 for an agreement with the Senate on the gasoline sanctions. In the Senate, too, patience with President Obama is running thin. The American Congress wants a blockade of gasoline imports to Iran and of course such a blockade would be perceived by the Iranian as a declaration of war! That’s how we got into war with Japan and almost how we came close to destroying the world in the Cuban affair. “We have waited long enough for diplomacy to work,” says Senate majority leader Harry Reid. “Iran is a festering sore in the world.”
Ed Steers says, “One way or another, the West seems to have its sights set on laying Iran low, giving that nation no more credibility to its claims that it wants to use its nuclear capabilities only for civilian purposes than it did to Saddam Hussein’s that he had no weapons of mass destruction.” Sure that works all the time, lay one country low and we can all continue on with our lives as if a war would not take oil prices through the roof and would not spread to a wider more deadly world battle.
“As with Rome, that became the globally unchallenged center of power and finance in its time, so too is the American Empire visibly rotting from inside now as well, which will be its undoing. The elitists steer the bureaucracy to do their bidding in an effort to increase the power of the machine, and this can go on for some time, which it has. However again, as with all such fascist like episodes in history, the bureaucracy grow past sustainable mass and eventually must feed on itself, playing the blame game in an attempt to maintain a semblance of credibility with the public they intend to keep raping,” writes Captain Hook.
Bob Chapman, talking about Frauds And Scandals Follow The Collapse Of The Financial System says, “It is all fraud, even if the government sanctions it. They are all acting in concert to screw the investor and the public. These people are all criminals. The excuse is that they are too big to fail. It is all fraud no matter which way you cut it. This is a criminal syndicate that should legally be out of business – bankrupt. There are two sets of laws; one for the Illuminists/elitist and another for us. Congress won’t do anything about it because most of them have been paid off.” Instead of getting its house in order the Congress is beating war drums and obviously they could not give a flying f—k for the consequences.
James Howard Kunstler in his recent essay A Still Moment tells us, “We are headed for a society with no money and an infrastructure for daily life that requires gobs of money to run, and a populace too dazed, confused, and inflamed to do anything useful in the way of organizing new infrastructures for daily life for their new circumstances. This sucker is going down because the train of bankruptcies underway has a remorseless self-reinforcing power to provoke more and more bankruptcies at every stop along the line as every promise to pay is welshed on. The mortgages will not be paid and securities will not pay their investors and the banks will choke on the bad paper promises in their vaults and the pension funds will not pay their beneficiaries and the states and counties and municipalities will go broke and not pay their employees and creditors, and the federal government will not be able to “print” new money in sufficient quantities fast enough to compensate for all the money not being paid up-and-down the line… and one morning we will wake up and discover that all those promises to pay were sham promises based on no productive activity whatsoever.
It is not a time to despair though. We can strengthen our hearts and souls and look for practical things we can do but only if we are staring down on that oncoming train. Sure it scares us senseless but when things get tough the tough get going. Time to be tough, really tough but on the inside, in our souls, not on the outside expressed in terms of anger and violence.
Things will come on quickly from here and we will see all kinds of things hitting from all sides. Goldman Sachs is under the hot light with the firm’s integrity so doubted that its clients are going to have a hard time trusting it. Already considered a financial terrorist organization by some now even Somali pirates are claiming in court that they are aligned and working for Goldman Sachs who they say are shorting the cargo ships they attack.
Sure there is a chance they can save the day for another month or two but all of a sudden the chances are not looking good. They can pull the hood over our eyes for only so much longer. Imagine when we wake up and read Los Angles declares bankruptcy and then the State of Illinois and then….