Warning Signs That We Should Prepare For The Worst

[Anti This Anti That]

Warning Signs That We Should Prepare For The Worst

Thursday, January 19, 2012 3:15

The warning signs are all around us. All we have to do is open up our eyes and look at them. Almost every single day there are more prominent voices in the financial world telling us that a massive economic crisis is coming and that we need to prepare for the worst. On Wednesday, it was the World Bank itself that issued a very chilling warning. In an absolutely startling report, the World Bank revised GDP growth estimates for 2012 downward very sharply, warned that Europe could be on the verge of a devastating financial crisis, and declared that the rest of the world better "prepare for the worst." You would expect to hear this kind of thing on The Economic Collapse Blog, but this is not the kind of language that you would normally expect to hear from the stuffed suits at the World Bank. Obviously things have gotten bad enough that nobody is even really trying to deny it anymore. Andrew Burns, the lead author of the report, said that if the sovereign debt crisis gets even worse we could be looking at an economic crisis that could be even worse than the last one: "An escalation of the crisis would spare no-one. Developed- and developing-country growth rates could fall by as much or more than in 2008/09." Burns also stated that the "importance of contingency planning cannot be stressed enough." In other words, Burns is saying that it is time to prepare for the worst. So are you ready?

But of course it isn't just the World Bank that is warning about these things. The chorus of voices that is warning about the next great financial crisis just seems to grow by the day.

Some of these voices were profiled in a Bloomberg article the other day entitled "Apocalypse How? Dire ’12 Forecasts". The following is just a sampling of quotes from that article....

-John Mauldin, president of Millennium Wave Advisors: "We've got a cancer. That cancer is debt"

-Mark Spitznagel of Universa Investments: "Too much malinvestment has been kept alive, and history shows an inevitable wipeout, which started in 2000."

-Michael Panzner of Financial Armageddon: "The fundamental outlook is even worse now than it was a few weeks ago, given (the lack of positive) developments in Europe and growing evidence that the economies of major countries around the world are deteriorating fast."

If you have time, you should go check out the rest of that article. It really is fascinating.

When this crisis is over, all sorts of people are going to be running around claiming that they predicted it. But it does not take a genius to see what is coming. All you have to do is open up your eyes and look at the flashing red warning signs.

So what should we all be looking for next?

March 20th is a key date to keep your eye on. That is the day when Greece will either makes its 14.5 billion euro bond payment or it will default.

Greece does not have a prayer of making that payment without help. If Greece can convince the EU and the IMF to release the next scheduled bailout payment and if Greece can reach a satisfactory deal with private bondholders, then the coming Greek default might be "orderly". But if something goes wrong, the coming Greek default might be quite "disorderly".

At this point, almost everyone in the financial world is anticipating a Greek default of one form or another....

-Edward Parker, the managing director for Fitch's sovereign and supranational group in Europe, the Middle East and Africa, recently declared that a Greek default is inevitable....

"It is going to happen. Greece is insolvent so it will default."

-Moritz Kraemer, the head of S&P's European sovereign ratings unit, made the following statement on Bloomberg Television on Monday:

"Greece will default very shortly. Whether there will be a solution at the end of the current rocky negotiations I cannot say."

-Richard McGuire, a strategist at Dutch bank Rabobank, was recently quoted by CNBC as saying the following....

"People often ask if Greece is going to default which ... is a misnomer because Greece is (already) defaulting"

-Diane Swonk, the chief economist at Mesirow Financial in Chicago, says that the default by Greece will probably be an "orderly" one but that the situation could change at any moment....

"It appears at the moment that the market is accepting a Greek default as inevitable, and it will be an orderly default. But that can change on a dime."

But whether there is a default or not, the reality is that Greece is already experiencing a full-blown economic depression. In Greece, 20 percent of all retail stores have already shut down. The unemployment rate for those under the age of 24 is now at 39 percent. Large numbers of Greeks are trying to get themselves and their money out of the country while they still can.

Pessimism regarding Greece is at an all-time high. Michael Fuchs, the deputy leader of Angela Merkel's political party, recently made the following statement....

"I don't think that Greece, in its current condition, can be saved."

But of course Greece is not the only declining economy in Europe by a long shot.

Italy has a much larger economy, and if Italy totally collapses it will be an absolute nightmare for the entire globe.

Right now, the Bank of Italy is forecasting a significant recession for the Italian economy in 2012. The following is from a statement that Bank of Italy has just released....

"The uncertainty that surrounds the medium-term perspectives of the Italian economy ... are extraordinarily high and are directly linked to the evolution of the eurozone debt crisis"

Italy's youth unemployment rate has hit the highest level ever, and nearly all sectors of the Italian economy are showing signs of slowing down.

Plus there is the looming problem of Italian debt. As I wrote about yesterday, when you add the maturing debt that the Italian government must roll over in 2012 to their projected budget deficit, it comes to 23.1 percent of Italy's GDP.

Originally it was hoped that the economic problems in Europe could be contained to just a few countries. But now it has become clear that is just not going to happen.

Trends forecaster Gerald Celente recently explained to ABC Australia that much of Europe is already essentially experiencing an economic depression....

"If you live in Greece, you’re in a depression; if you live in Spain, you’re in a depression; if you live in Portugal or Ireland, you’re in a depression,” Celente said. “If you live in Lithuania, you’re running to the bank to get your money out of the bank as the bank runs go on. It’s a depression. Hungary, there’s a depression, and much of Eastern Europe, Romania, Bulgaria. And there are a lot of depressions going on [already]."

The troubling news out of Europe just seems to keep coming in waves. Here are some more recent examples....

-Manufacturing activity in the euro zone has fallen for five months in a row.

-Germany's economy actually contracted during the 4th quarter of 2011.

-It is being reported that the Spanish economy contracted during the 4th quarter of 2011.

-Bad loans in Spain recently hit a 17-year high and the unemployment rate is at a 15-year high.

So will all of this economic trouble eventually spread to the United States?

Of course it will.

The global economy is more interconnected today than ever. Back in 2008 the financial crisis that started on Wall Street ended up devastating economies all over the planet. The same thing will happen during this next great financial crisis.

Only this time the U.S. is in a much weaker position. The U.S. debt problem has gotten much worse since the last crisis.

During 2008, our national debt crossed the 10 trillion dollar mark. Less than 4 years later, we have crossed the 15 trillion dollar mark.

So what are we going to do the next time large numbers of banks fail and unemployment skyrockets?

Where are we going to get the money to bail out all of those banks and to take care of all of those newly unemployed people?

Some people say that socialism is the answer, but the truth is that we are already a socialist welfare state. If you can believe it, nearly half of all Americans live in a household that receives some form of financial benefits from the U.S. government.

During the next great crisis, the number of people that are dependent on the government will go even higher.

If you don't want to end up dependent on the government, you should heed the warning signs and you should use this time to prepare for the hard times that are coming.

When even the World Bank tells us to hope for the best but to prepare for the worst, you know that it is late in the game.

Unfortunately, the vast majority of people out there only believe what they want to believe. They don't want to believe that a great economic crisis is coming, and so when it does happen they are going to be absolutely blindsided by it.

http://beforeitsnews.com/story/1644/465/NL/Warning_Signs_That_We_Should_Prepare_For_The_Worst.html

[Tiffany23]

So what do we do to prepare? Stock up on Gold and Ammunition? Build a bunker?

Anti...I have no problem with people like you that want to prepare for the end of civilization. But for me...if it gets that bad, I think I'd rather go out like a candle...what type of world would it be to live in or raise a family in?

Call me a sheep, but I'd rather trust that people will see the madness before it gets to that point....if not, you are more than welcome to take my resources, because I refuse to go back to kill or be killed. Just not me.

[SmokinAce]

So what do we do to prepare? Stock up on Gold and Ammunition? Build a bunker?

Anti...I have no problem with people like you that want to prepare for the end of civilization. But for me...if it gets that bad, I think I'd rather go out like a candle...what type of world would it be to live in or raise a family in?

Call me a sheep, but I'd rather trust that people will see the madness before it gets to that point....if not, you are more than welcome to take my resources, because I refuse to go back to kill or be killed. Just not me.

Yep like Eddie Murphy said on life. "We next...we on deck ******" upper roooom...Lol

[Shabibilicious]

Did anybody watch American Idol last night? If so, did you see the woman that lived in a tent in the woods? The first person that popped in my head was.........

GO RV, then BV

(And yes.....I was watching mindless drivel on main stream t.v. for entertainment purposes....in my snuggie...without a care....drinking a little hooch. So don't scream at me....my head hurts.)

[DinarDebbie]

Did anybody watch American Idol last night? If so, did you see the woman that lived in a tent in the woods? The first person that popped in my head was.........

GO RV, then BV

(And yes.....I was watching mindless drivel on main stream t.v. for entertainment purposes....in my snuggie...without a care....drinking a little hooch. So don't scream at me....my head hurts.)

This is the biggest problem with the average citizen,(not you Shabs) is the square thing keeping them in the dark. As for the financial crisis warning by the World Bank, who do you think orchestrated the whole scenario? Follow the $ and with stealth.

Edited January 19, 2012 by DinarDebbie

[Shabibilicious]

This is the biggest problem with the average citizen,(not you Shabs) is the square thing keeping them in the dark. As for the financial crisis warning by the World Bank, who do you think orchestrated the whole scenario? Follow the $ and with stealth.

Tried to (+) ya Deb, but something must be awry with the system. You are absolutely spot on with your comment. And truth be told....I am an average citizen. I'm making an effort to be above average.

GO RV, then BV

[sxsess]

So what do we do to prepare? Stock up on Gold and Ammunition? Build a bunker?

Anti...I have no problem with people like you that want to prepare for the end of civilization. But for me...if it gets that bad, I think I'd rather go out like a candle...what type of world would it be to live in or raise a family in?

Call me a sheep, but I'd rather trust that people will see the madness before it gets to that point....if not, you are more than welcome to take my resources, because I refuse to go back to kill or be killed. Just not me.

Tiffany I'm not a doomsdayer either, but the media and this regime in power right now is constantly diverting people away from the enevitable, which is this wall the US is about to slam into. That is this debt nightmare. This issue will soon become front page news. This could bring down the USD, which would adversely affect the lives of all of us. The only thing that is holding up the stock market right now is the massive amounts of money being printed by the federal reserve. This is what is referred to as quantitative easing which is insane and if not stopped soon will crash this economy and the world economy. The US government is actually printing money to buy there own debt back! So what you said about buying gold and above all silver right now is a good idea. I pray we get Obama out of office this year or we will be doomed.

[Tiffany23]

Tiffany I'm not a doomsdayer either, but the media and this regime in power right now is constantly diverting people away from the enevitable, which is this wall the US is about to slam into. That is this debt nightmare. This issue will soon become front page news. This could bring down the USD, which would adversely affect the lives of all of us. The only thing that is holding up the stock market right now is the massive amounts of money being printed by the federal reserve. This is what is referred to as quantitative easing which is insane and if not stopped soon will crash this economy and the world economy. The US government is actually printing money to buy there own debt back! So what you said about buying gold and above all silver right now is a good idea. I pray we get Obama out of office this year or we will be doomed.

sxsess...can't argue with anything you wrote. Which made me remember a discussion I once had with a History Professor, we talked about how throughout history, the country that had the biggest military usually financed that army/navy thru conquering and colonizing others. The Rome and British Empires being prime examples.

But that won’t happen today, because we are all politically correct..or are we? When American gets to the point where our standard of living is below 2nd world countries, then what? Is it so radical to think that we as a culture will starts taking over the oil fields or other natural resources from both friends and foes alike? Look at our neighbors the Canadians; they sit on some of the richest natural resources in the world.

I’m not advocating anything here, I’m just saying that when things get bad, people start acting in behavior that in the “good times” would seem madding.

[Houston1099]

So what do we do to prepare? Stock up on Gold and Ammunition? Build a bunker?

Anti...I have no problem with people like you that want to prepare for the end of civilization. But for me...if it gets that bad, I think I'd rather go out like a candle...what type of world would it be to live in or raise a family in?

Call me a sheep, but I'd rather trust that people will see the madness before it gets to that point....if not, you are more than welcome to take my resources, because I refuse to go back to kill or be killed. Just not me.

I TOTALLY agree

[elmstreet61]

Yes previous empires gained the wealth of the countries they invaded...now it's the corporations that move in and claim the wealth....Haliburton...Shell...Exxon Mobil...etc...etc...etc

One other point...the GOVERNMENT does NOT print money. Mr Ben Bernanke and Alan Greenspan at your friendly local Federal Bank print the money for the quantitative easing. The Government BORROWS that freshly printed money at interest. Every dollar...or Euro or UK pound in your pocket is there on loan....with interest owing on it.

If you look at Obama's Democrat Government..... 15 and a half TRILLION DOLLARS IN DEBT.... someone worked out that it will take America 180 years to pay that debt back if they stopped spending today and started repaying immediately at some exorbitant rate per person.

The money controllers have planned a crash of the euro and USA economies...but they do fear the people, in a way...so they are using QE to put off the inevitable....for a few more months.

But not to worry....the military would probably take over from the government, in providing martial law on the streets. Beyond that...there are several theories out there on what happens next, but I am one who tells folk to be prepared to rough-house it for a couple of weeks.

So you should have bottles of water and emergency food rations stored away now. Make it reasonably portable. Also vitals like a utility knife....torch, batteries, a radio ...candles, hexa cookers like soldiers use, matches, toilet paper, coffee, tea, milk powder......Also you can get a personal metal water bottle theses days, with a built in replaceable filter cartridge....brilliant piece of gear...it allows you to drink water, even if it came from the ocean or a dirty puddle. How good is THAT?!

The human spirit is an amazing survival tool,all by itself....so you will be ok, no matter what. It's the job of those of us who "know", to hold the hand of those who do not know, and help them through the rough times....but...be prepared for looting and being held at gunpoint for your food etc.....because your local supermarket shelves will be empty before you know it...and what happens to people (who have never learned to grow their own food) when the supermarket food runs out??

They get desperate after they miss out on their first 9 meals in a row .....that's 3 days worth.....and if they get no clean drinking water??? And the kids start to cry and get desperate too....the adults will go crazy and will then go feral. Happy days...no need to think about any of that...just keep watching wheel of fortune or the Kardashians.................or your local football game...you get very passionate about your footy or baseball...right?? Very very passionate....well.......

How about using that passionate energy and getting off your arse and voting for Ron Paul for president....that will go a LONG way to fixing the problems. He would take the Fed Banks power away and instantly have your 15 trillion dollar debt cancelled.....Because he CAN!!! It will be lawful and constitutional for him to do so......go Ron Paul!'!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

How about you use that passion to prepare for the worst...BUT HOPE FOR THE BEST.

[lomeygoat]

Looks like a house in the mountains, grow your own food, hunt and a large amount of ammunition.

[DinarDebbie]

Yes previous empires gained the wealth of the countries they invaded...now it's the corporations that move in and claim the wealth....Haliburton...Shell...Exxon Mobil...etc...etc...etc

One other point...the GOVERNMENT does NOT print money. Mr Ben Bernanke and Alan Greenspan at your friendly local Federal Bank print the money for the quantitative easing. The Government BORROWS that freshly printed money at interest. Every dollar...or Euro or UK pound in your pocket is there on loan....with interest owing on it.

If you look at Obama's Democrat Government..... 15 and a half TRILLION DOLLARS IN DEBT.... someone worked out that it will take America 180 years to pay that debt back if they stopped spending today and started repaying immediately at some exorbitant rate per person.

The money controllers have planned a crash of the euro and USA economies...but they do fear the people, in a way...so they are using QE to put off the inevitable....for a few more months.

But not to worry....the military would probably take over from the government, in providing martial law on the streets. Beyond that...there are several theories out there on what happens next, but I am one who tells folk to be prepared to rough-house it for a couple of weeks.

So you should have bottles of water and emergency food rations stored away now. Make it reasonably portable. Also vitals like a utility knife....torch, batteries, a radio ...candles, hexa cookers like soldiers use, matches, toilet paper, coffee, tea, milk powder......Also you can get a personal metal water bottle theses days, with a built in replaceable filter cartridge....brilliant piece of gear...it allows you to drink water, even if it came from the ocean or a dirty puddle. How good is THAT?!

The human spirit is an amazing survival tool,all by itself....so you will be ok, no matter what. It's the job of those of us who "know", to hold the hand of those who do not know, and help them through the rough times....but...be prepared for looting and being held at gunpoint for your food etc.....because your local supermarket shelves will be empty before you know it...and what happens to people (who have never learned to grow their own food) when the supermarket food runs out??

They get desperate after they miss out on their first 9 meals in a row .....that's 3 days worth.....and if they get no clean drinking water??? And the kids start to cry and get desperate too....the adults will go crazy and will then go feral. Happy days...no need to think about any of that...just keep watching wheel of fortune or the Kardashians.................or your local football game...you get very passionate about your footy or baseball...right?? Very very passionate....well.......

How about using that passionate energy and getting off your arse and voting for Ron Paul for president....that will go a LONG way to fixing the problems. He would take the Fed Banks power away and instantly have your 15 trillion dollar debt cancelled.....Because he CAN!!! It will be lawful and constitutional for him to do so......go Ron Paul!'!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

How about you use that passion to prepare for the worst...BUT HOPE FOR THE BEST.

Well said, and people need to remember, after any real crisis it's 3 days until the grocery stores become empty. Then , well never mind the rest. Best to be somewhat prepared.

[Anti This Anti That]

I am not worried about my being able to survive any coming disaster, I am trying to make others aware of what's coming. I am fully prepared to ride it out for 7 years with no problem food, and water wise. My property has a nice natural cave that I have fully stocked with everything I should need, including the best top soil I will need to use should the soil be contaminated by nuclear particles. I have much heirloom seeds for growing food after things settle down, and all the weapons, ammo, and 4 highly trained guard dogs for added security. I have only 6 others who will join me when the time comes, and trust me, it's coming. If people are of the mind set, oh I would rather die than survive, then so be it, I guess we all will die someday, but I choose to live on as long as possible with hopes of rebuilding a world that went insane due to evil leaders, and the ignorant people who placed them in those positions.

Edited January 20, 2012 by Anti This Anti That