Famed economist Marc Faber appeared on Bloomberg TV with a harsh, direct warning to investors.
“U.S. monetary policies will destroy the world,” he said, referring to the new round of stimulus – QE3, or “QE Forever” – the Fed plans to launch this year.
Faber’s not alone.
A group of his economic peers agree that with more central bank action like QE3, global economic collapse is imminent.
In a newly released documentary that went viral last month, a team of influential economic experts say they have discovered a “frightening pattern” they believe points to a massive economic catastrophe unlike anything ever seen.
“What this pattern represents is a dangerous countdown clock that’s quickly approaching zero,” said Keith Fitz-Gerald, the Chief Investment Strategist for the Money Map Press, who predicted the 2008 oil shock, the credit default swap crisis that helped bring about the recession, and the Greek and European fiscal catastrophe that is still wreaking havoc until this day.
“The resulting chaos is going to crush Americans.”
Another member of this team, Chris Martenson, a global economic trend forecaster, former VP of a Fortune 300, and an internationally recognized expert on the dangers of exponential growth in the economy, explained their findings further:
“We found an identical pattern in our debt, total credit market, and money supply that guarantees they’re going to fail,” Martenson said. “This pattern is nearly the same as in any pyramid scheme, one that escalates exponentially fast before it collapses. Governments around the globe are chiefly responsible.”
Get lot and lots of rest today.
This first week of October is going to be HUGE from both an economic standpoint.
First, here’s an abbreviated version of what’s coming up. These bullets are courtesy of Dave Lutz at Stifel, Nicolaus:
- Chinese Markets closed for Golden Week
- Central Bank Decisions from Aussie, BOE, ECB and BOJ
- Big Ben speaks, and the Minutes from the September meeting
- Global PMI Data – China, EU, UK, USA
- September Auto Sales and Retailer Same Store Sales
- US and EU Employment reports
- A Big Spanish Bond Auction
- Value Investing Conference – Major HF speakers
- European Banking Authority – final report on capital plans
- The First debate between Gov. Romney and President Obama
Now, here’s the full schedule:
MONDAY: It’s global PMI day. So starting late Sunday night in the US, we’ll be getting critical manufacturing reports from Asia, and then Europe, and then of course the US, concluding with the US at 10:00 AM ET. Also at 10:00 AM ET we get Construction Spending for October. There’s also going to be a monetary policy speech by Bernanke, a speech by the head of the SF Fed. At the Value Investing Congress, Bill Ackman, Whitney Tilson, and other swill present picks.
The Wall Street Journal ran an article the likes of which I have never seen. “The Magnitude of the Mess We’re In.” It was written by five well-known economists. It warns readers about a series of highly destructive outcomes of the federal government’s present fiscal policies. The article says that these problems are close to being unmanageable.
The first economist involved is George Shultz. He taught at the University of Chicago and MIT. He served as the Secretary of the Treasury under Nixon and Secretary of State under Reagan. He served as the Head of the Office of Management and Budget under Nixon, and also Secretary of Labor under Nixon. I can think of no other economist with comparable experience at the highest level. He is an insider’s insider. He is 92 years old – a true elder statesman
The second economist is Michael Boskin. He teaches at the Hoover Institution. He used to teach at Stanford. He was the head of the Council of Economic Advisers under the first Bush. Then there was John F. Cogan of Hoover and Stanford. Then there was Allan Meltzer, who is the most respected historian of the Federal Reserve System. Finally, there was Stanford’s John Taylor, of “Taylor rule” fame, one of the most respected academic economists in the USA.
Analysts are getting downright bearish as the third-quarter earnings season approaches. Data from Thomson Reuters shows analysts are expecting a 2.2% quarterly drop in earnings by S&P 500 companies, which would mark the first decline in profits since the first quarter of 2009.
The U.S. earnings season is set to begin on Oct. 11, when analysts expect Alcoa Inc. will report a 94% drop in profit. If the aluminum giant reports even worse numbers, it will set a dismal tone for the rest of the season.
Analysts are currently a little more optimistic in Canada, forecasting flat earnings growth, but Peter Buchanan, a senior economist at CIBC World Markets, expects more downward revisions could be on tap before Canadian companies start reporting their numbers.
- advertisements -