Margaret Schaut

One more conservative viewpoint on the world at large.

Experts: Economic Collapse within 3 Months- Ron Paul was Right


bernanke in panic

Despite what our politicians are telling us, experts in other lands have issued the warning: Economic collapse within three months.

The Royal Bank of Scotland has advised clients to brace for a full-fledged crash in global stock and credit markets over the next three months as inflation paralyses the major central banks.

“A very nasty period is soon to be upon us – be prepared,” said Bob Janjuah, the bank’s credit strategist.

A very nasty period indeed.

Ron Paul was right. Globalization, according to Janjuah, the Royal Bank’s credit strategist.:

Globalisation was always going to risk putting G7 bankers into a dangerous corner at some point. We have got to that point,” he said.

Federal Reserve:

US Federal Reserve and the European Central Bank both face a Hobson’s choice as workers start to lose their jobs in earnest and lenders cut off credit.

The authorities cannot respond with easy money because oil and food costs continue to push headline inflation to levels that are unsettling the markets. “The ugly spoiler is that we may need to see much lower global growth in order to get lower inflation,” he said.

The Fed is in panic mode. The massive credibility chasms down which the Fed and maybe even the ECB will plummet when they fail to hike rates in the face of higher inflation will combine to give us a big sell-off in risky assets,” he said.

The collapse of the dollar:

Just as then, the dollar has plummeted far enough to cause worldwide alarm. In August 1992 it fell to 1.35 against the Deutsche Mark: this time it has fallen even further to the equivalent of 1.25. It is potentially worse for Europe this time because the yen and yuan have also fallen to near record lows. So has sterling.

Inflationary Depression is nearly upon us. Ron Paul was right, and he is being proven out in the most dire of ways. The Fed will save the banks like Morgan Stanley and Lehman, EVEN AT THE EXPENSE OF THE AMERICAN ECONOMY.

Our government is NOT our friend, even with ‘representatives’ of the people, since they have been bought and sold like cattle.

Brace yourselves, people. About 7 million died because of the last Great Depression. That was without a war, without martial law, without China being a well-armed enemy threatening war.

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7 Comments»

[…] swisstiger wrote an interesting post today onHere’s a quick excerptDespite what our politicians are telling us, experts in other lands have issued the warning: Economic collapse within three months. The Royal Bank of Scotland has advised clients to brace for a full-fledged crash in global stock and … […]

  goesdownbitter wrote @

http://goesdownbitter.wordpress.com/2008/06/19/drill-drill-drill/

The politics of greed are crashing into the politics of fear. And still, we rearrange the deck chairs.

  oregonnerd wrote @

This was pretty well foreseen in RAND and other planning in the early 1970’s. “Third World” countries becoming empowered, wordwide food and petroleum shortages and resultant ongoing riots were going to results in some interesting strategical choices. Oh, I forgot. The “sleeping giant” would awake. That was China, oddly enough. Brunner’s timeline* on this was the 1990’s. Official U.S. doctrine was “somewhere between approximately 2005 and 2035”. Some of the choices made then are haunting us, but WW III hasn’t yet occurred. I don’t as yet have an opinion.
–Glenn
*My vote was for approximately now.

  Faiz wrote @

what are we supposed to do after the dollar collapse? how will it effect the entire world? and how much time will it take to get to the normal?

  Kenneth Burks wrote @

As the dollar drops in value and commodities increase in cost many millions will starve, but before they lay down and die they will revolt. An era of war within and between third-world countries has begun, yet the industrial world has not acknowledged the grim-ness of this reality or the possible consequences of their participation.

  Dale Gross wrote @

Ron Paul Was Right

  heavenlyproducts wrote @

Ron Paul has been right about a lot of things in the last few years (and before) but it’s important to know WHY he has been right. Austrian Economics is one of the most common-sense based schools of economic thought that exists in the world today…it has predicted the recession of the 70s, 80s, and even todays economic crisis.
Visit my blog for more details on the Age of Inflation. http://surviverecession.wordpress.com/


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