Time bomb to market meltdown ticks louder.Prepare for zero growth, no recovery, resource wars.
Mr. Buffett, “do you think there will be another bubble leading to a huge recession?” asked the interviewer. Oh yes, in fact, “I can guarantee it.” Guarantee it.
The interviewer shook his head: “Why can’t we learn the lessons of the last recession? Look where greed has gotten us.” Then with one of his familiar impish grins, the great master replied, “Greed is fun for a while. People can’t resist it.” But “however far human beings have come, we haven’t grown up emotionally at all. We remain the same.”
Warren Buffett made that prediction shortly after the 2008 Wall Street banking meltdown. The world’s third-richest billionaire personally guaranteeing another bubble … guaranteeing America another market meltdown … guaranteeing the world another “huge recession.” Now here we are four years later, and the ticking time bomb gets louder as we keep watching an avalanche of predictions echoing Buffett’s warnings.
Deepak Chopra mentions Buffett’s on-air prediction in the “Shadow Effect,” a brilliant bit of psychology that helps explain why the investor’s brain is trapped in denial, incapable of hearing a warning of a market and economic collapse.
Uncle Warren must be chomping at the bit, sitting on a cash hoard, more than $20 billion, waiting to rush in, buy when the bottom drops, exposing millions of investors lulled back by those pre-2008 delusions about a new long-term bull market.
Today Egon von Greyerz told King World News he is now seeing massive shortages of silver. Greyerz went on to warn about a frightening series of global storms which are set to collide, which will create an enormous hurricane in 2013. He also spoke about gold and included a tremendous chart that all KWN readers will want to see.
Here is what Greyerz, who is founder of Matterhorn Asset Management in Switzerland, had this to say in this remarkable, exclusive interview: “Eric, I see storm clouds gathering everywhere. We have currency storms, economic, political, and geopolitical storms. But short-term we may see some optimism in the economy as global stock markets make their final top.”
Global Recession 2013 is 100% – Marc Faber
The World Is In Trouble
Via Mark J. Grant, author of Out of the Box,
The United States is in Trouble
We make more than we’ve ever made, we owe more than we’ve ever owed, and we have less than we’ve had in decades which is distributed to those that did not earn the money. This is a working definition of Trouble. The stock market is at an all-time high while the financial condition of the country has seriously deteriorated. We are printing $90 billion a month of little green pieces of paper while the Democrats yell at the Republicans to up the debt ceiling as they want to spend even more money to promote social welfare programs. We cannot afford the bills that we have now and we are being asked to add more to them. This is a recipe for disaster and I am reminded of those months right before the financial crisis of 2008/2009 where no documentation loans for Real Estate flourished and easy money was the normal course of things.
Perhaps the landscape has shifted from “money for nothing” for property to “money for nothing” for our national debt. Fiscal responsibility has evaporated in a grand scheme to get voters and Obama has put the Chavez Plan in place which appeals to the poorest of citizens, hands them money and expects their support at the polls. Hard work and earning a living are the ethics of past generations that are slowly being ground to dust in the flurry to socialize America and re-distribute wealth and having succeeded and having money is now thought of as a crime not far behind rape and arson. The White Knight is walking backwards and the Red Queen has lost her head and the Mad Hatter is in charge of the tea party.
“The trouble with practical jokes is that they very often get elected.”
Europe is in Trouble
The sovereign debt accounting is a fraud. Liabilities are not counted, contingent liabilities are not recognized and the balance sheet of the ECB is worse than America’s. Collateral considerations are a joke and loans are disguised, hidden and placed in various locked drawers and central bank vaults. The economies of Spain, Italy, Portugal, Cyprus, Greece, Ireland continue to deteriorate as their sovereign yields fall due to the Draghi put and the creation of their little pieces of blue paper which must be used somewhere for something. There is, once again, easy money in the United States but easier money in Europe and so the game continues as anyone with any common sense begins to wonder how it all will blow up and when. Is it to be Inflation or Valuation and will Gold be the next currency or are there going to be other answers.
Asia is in Trouble
Japan, once thought to be an ascending power, has drifted into a nightmare of insolvency and no growth where Deflation rules and the debts of the country now exceed the ability of their citizens and institutions to own them. The push is on for Inflation as the only way out as they argue with China over some islands that might have some oil reserves. In China growth is slowing, their one party system will not allow outside investment past a certain point, their banks are a shadow of the demands of the country and in disarray as political/economic scapegoats and the numbers that China provides for growth make no sense and so are discounted as maybe-maybe statistics….