We Will Have A Global Financial Meltdown In Two To Three Weeks" - IMF Advisor

[divemaster5734]

BBC Does It Again: "In The Absence Of A Credible Plan We Will Have A Global Financial Meltdown In Two To Three Weeks" - IMF Advisor

A week after the BBC exploded Alessio Rastani to the stage, it has just done it all over again. In an interview with IMF advisor Robert Shapiro, the bailout expert has pretty much said what, once again, is on everyone's mind: "If they can not address [the financial crisis] in a credible way I believe within perhaps 2 to 3 weeks we will have a meltdown in sovereign debt which will produce a meltdown across the European banking system. We are not just talking about a relatively small Belgian bank, we are talking about the largest banks in the world, the largest banks in Germany, the largest banks in France, that will spread to the United Kingdom, it will spread everywhere because the global financial system is so interconnected. All those banks are counterparties to every significant bank in the United States, and in Britain, and in Japan, and around the world. This would be a crisis that would be in my view more serrious than the crisis in 2008.... What we don't know the state of credit default swaps held by banks against sovereign debt and against European banks, nor do we know the state of CDS held by British banks, nor are we certain of how certain the exposure of British banks is to the Ireland sovereign debt problems."

But no, Morgan Stanley does, or so they swear an unlimited number of times each day. And they say not to worry about anything because, you see, it is not like they have any upside in telling anyone the truth. Which is why for everyone hung up on the latest rumor of a plan about a plan about a plan spread by a newspaper whose very viability is tied in with that of the banks that pay for its advertising revenue, we have one thing to ask: "show us the actual plan please." Because it is easy to say "recapitalize" this, and "bad bank" that. In practice, it is next to impossible. So yes, ladies and gentlemen, enjoy this brief relief rally driven by the fact that China is offline for the week and that the persistent source of overnight selling on Chinese "hard/crash landing" concerns has been gone simply due to an extended national holiday. Well, that holiday is coming to an end.

By the way, Reuters, Shapiro is not a Yes Man -we'll spare you the ruminations.

My link

Edited October 8, 2011 by divemaster5734

[dhardage]

so now we drop the Dinar and go for GBP?

[divemaster5734]

so now we drop the Dinar and go for GBP?

I would wait a couple weeks or so, you'll get them for a lot less.

[TOPLIS]

Oh my GOD Chicken Little...the SKY IS FALLING...

GET REAL

[rjboots1]

Well, I certainly don't know about the 2 or 3 week time frame, but there's absolutely no doubt that the sovereign debt crisis in Europe as well as the US will ultimately implode the system. Greece will default. Ther'es no escape for them at this point. The rest of Europe has used up all their available chips to prop up the PIIGS nations already, and yet they're in worse shape than ever. The other mega Euro banks are going to lose billions each on the Greek default. When they do, the other banks will likely require bailouts, or crash themselves. But there's no one left to bail them out. So, either the bondholders will get tossed under the bus, or the banks themselves will crash. Unfortunately, I've read that the US megabanks own nearly a combined total of $1 Trillion in bonds of the other Euro megabanks. And our banks are not healthy by a long shot, and anyone that says they are is lying thru their teeth. Anyway, this is not a "SKY IS FALLING" story. It's very real, and very devastating. But again, the 2-3 week time frame is a little agressive IMO. The RV would obviously impact the time frame as well. But an ultimate crash will still be in the cards at some point. Sorry!

[Dalite]

so now we drop the Dinar and go for GBP?

I don't know if it would do any good either way.

45% of the Foreign Reserves that the CBI has to back the Dinar are in Euros.

FWIW, the CBI is 110% capitalized (the equivalent of 58 to 60 billion USD) to back the Dinar.

This week, anyway.

[sweetlight]

so now we drop the Dinar and go for GBP?

How dismal that all sounds...anyone want to revive the bartering system?

[WallyWeaver]

How dismal that all sounds...anyone want to revive the bartering system?

Sure, I'll barter my paper USD's for your gold and silver, if the price is right and the purity is fine enough...

[divemaster5734]

How dismal that all sounds...anyone want to revive the bartering system?

Actually, there are a few companies offering "barter trade dollars" for business to business transactions.

I belonged to one about 20 years ago, but the only one that made profit was the transaction processor.

The problem with bartering is there are people that try to pawn off junk as something with value, or, someone with an emotional attachment to a piece of junk will become offended when you refuse to pay their emotional attachment price.

Either way, situations can quickly escalate and get out of hand, before you know it a potential customer is angry and you wish you had just stuck with the worthless cash.

Edited October 8, 2011 by divemaster5734

[Midx1]

Actually one needs to be reminded that the UK,,England is not on the Euro banking system.

They still to this day use British Pounds.

Jury is out on this ,,will be interesting to see how they use their stiff upper lip to avoid this one.

[WallyWeaver]

The problem with bartering is there are people that try to pawn off junk as something with value, or, someone with an emotional attachment to a piece of junk will become offended when you refuse to pay their emotional attachment price.

Either way, situations can quickly escalate and get out of hand, before you know it a potential customer is angry and you wish you had just stuck with the worthless cash.

This is why the world moved to something tangible, gold, and affixed a value, based on said gold, to all items.

I can't speak to businesses currently using the bartering system but I do know that several states are considering the use of gold and silver for everyday transactions...

Link: http://tpmdc.talkingpointsmemo.com/2011/01/at-least-10-states-have-introduced-gold-coins-as-currency-bills.php