Frightening Article About Impending Economic Collapse – The Hoofbeats Of The 4 Horsemen Of The Apopalypse Are Beginning To Echo

It’s not just Europe that is on the brink.  America’s true fiscal gap is a beyond completely insane $222 TRILLION and if Europe doesn’t fall into the fiery pit of hell first, we will.  And things are not going at all well in China, either.

But read this about Europe and try having a good sleep tonight.  Because one thing is for sure: if Europe collapses, the Greatest Depression will start here the same day.

Jacob Rothschild, John Paulson And George Soros Are All Betting That Financial Disaster Is Coming

Are you willing to bet against three of the wealthiest men in the entire world? Jacob Rothschild recently bet approximately 200 million dollars that the euro will go down. Billionaire hedge fund manager John Paulson made somewhere around 20 billion dollars betting against the U.S. housing market during the last financial crisis, and now he has made huge bets that the euro will go down and that the price of gold will go up. And as I wrote about in my last article, George Soros put approximately 130 million more dollars into gold last quarter. So will the euro plummet like a rock? Will the price of gold absolutely soar? Well, if a massive financial disaster does occur both of those two things are likely to happen. The European economy is becoming more unstable with each passing day, and investors all over the globe are looking for safe places to put their money. The mainstream media keeps telling us that everything is going to be okay, but the global elite are sending us a much, much different message by their actions. Certainly Rothschild, Paulson and Soros know about things happening in the financial world that the rest of us don’t. The fact that they are all behaving in a consistent manner right now should be alarming for all of us.

Let’s start with Jacob Rothschild. Apparently he believes that the euro is headed for quite a tumble. The following is from a recent CNBC article….

You know the euro is in deep water when a doyen of the banking industry, Lord Jacob Rothschild takes a £130 million ($200 million) bet against it.

Okay, but the euro has already been falling dramatically. In mid-2011, the EUR/USD was above the 1.40 mark, and right now it is at about 1.23.

Does it really have that much more that it can fall?

If the eurozone ends up breaking apart it sure does.

If there is a Greek default, or if Germany leaves the euro, or if a new currency comes along to replace the euro those currently betting against it will end up looking like geniuses.

Another big name in the financial world that is betting against the euro right now is John Paulson. The following is from a recent Der Spiegel article….

One of these warriors is John Paulson. The hedge fund manager once made billions by betting on a collapse of the American real estate market. Not surprisingly, the financial world sat up and took notice when Paulson, who is now widely despised in America as a crisis profiteer, announced in the spring that he would bet on a collapse of the euro.

And as I noted in my last article, Paulson has also been putting billions of dollars into gold.

So just what are Rothschild and Paulson anticipating?

Could we be on the verge of a massive financial collapse in Europe?

According to the Der Spiegel article mentioned above, a lot of investors seem to be preparing for such a possibility right now….

Banks, companies and investors are preparing themselves for a collapse of the euro. Cross-border bank lending is falling, asset managers are shunning Europe and money is flowing into German real estate and bonds. The euro remains stable against the dollar because America has debt problems too. But unlike the euro, the dollar’s structure isn’t in doubt.

The financial world is starting to wake up to the fact that the globe is absolutely drowning in debt and it is not really good to be holding fiat currencies when a debt crisis erupts.

When men like John Paulson and George Soros start pouring huge amounts of money into gold, it is time to start becoming alarmed about the state of the global financial system.

The amount of money that these men are investing in gold is staggering….

There was also news last week in an SEC filing that both George Soros and John Paulson had increased their investment in SPDR Gold Trust, the world’s largest publicly traded physical gold exchange traded fund (ETF).

Mr Soros upped his stake in the ETF to 884,400 shares from 319,550 and Mr Paulson bought 4.53m shares, bringing his stake to 21.3m.

At the current price of about $156 a share, these are new investments of about $88m of Mr Soros’ cash and more than $700m from Mr Paulson’s funds. These are significant positions.

And the central banks of the world are certainly buying gold at an unprecedented rate as well. According to the World Gold Council, the central banks of the world added 157.5 metric tons of gold last quarter. That was the biggest move into gold by the central banks of the globe that we have seen in modern financial history.

But that might just be the beginning.

According to a recent Marketwatch article, there are persistent rumors that China has plans to buy thousands of metric tons of gold….

Within the gold market, there is unconfirmed speculation that China plans to buy up to at least 5,000 to 6,000 metric tons of gold and that it will start to buy during this year, according to Kevin Kerr, president of Kerr Trading International.

If China buys this much gold, that would exceed annual, global production of gold, he said. “We do not have enough gold for China to buy that much, and it will take China time to purchase this amount of gold.”

So what comes next?

Nobody is quite sure.

Another major financial crisis could erupt in Europe at any moment.

A major war in the Middle East could start literally at any time.

Renowned investor Jim Rogers believes that things are really going to get “bad after the next election“.

Others believe that the action could start even sooner than that.

The truth is that even though we have not seen a “Lehman Brothers moment” yet, things in Europe just continue to get progressively worse. The following is from a recent article by Mark E. Grant….

Whether you turn your attention to Greece, Spain, Italy, Portugal or even Ireland; it is getting worse. Nowhere on the Continent are things improving and even in France and Germany the financial strains are beginning to show. It is not a question of Euro-bear or Euro-bull; it is just the numbers as they come rolling out month after month.

There is a growing realization in Europe that the euro simply does not work. Italy is absolutely drowning in debt, the Spanish economy has basically descended into a depression, and Greece has been experiencing depression-like conditions for years at this point.

The euro is doomed. The only question is who is going to blink first.

Nobody wants to be the first to leave the euro. There are rumblings that it could actually be Finland that leaves the euro first, and that would please Germany just fine because they don’t want to look like the bad guys in all of this.

But that doesn’t mean that Germany won’t eventually pull the trigger if nobody else does. The German public is sick and tired of bailing out the weak sisters of southern Europe, and at this point it looks like it would take perpetual bailouts just to keep the euro together.

And recently there have been lots of little signs that Germany is starting to move slowly toward the exit doors.

In fact, I found it quite interesting that a giant euro sculpture was recently removed from the Frankfurt International Airport….

A massive € sculpture (identical to the one in front of the European Central Bank) was dismantled and removed from the Frankfurt International Airport in Germany Thursday.

The official explanation is ‘the plastic parts are getting weak after 11 years and the terminal needed the space‘.

Does € sculpture’s removal from the Frankfurt Airport indicate Germany is preparing for a surprise return to the Deutsche Mark?

Sure that might just be a coincidence, but it also could be a harbinger of things to come.

Sadly, most average people living in North America and Europe have absolutely no idea what is coming. Most of them just want to be able to get up in the morning and go to work and pay the bills and take care of their families.

Unfortunately, millions upon millions of those hard working individuals are in for a very rude awakening.

A lot of people are about to have their current lifestyles totally turned upside down.

But it doesn’t have to be all bad.

In fact, I found it very interesting to read about how some young people are responding to the depression in Greece….

In the spring of 2010, just as the Greek government was embarking on some of its harshest austerity measures, 29-year-old Apostolos Sianos packed in his well-paid job as a website designer, gave up his Athens apartment and walked away from modern civilisation.

In the foothills of Mount Telaithrion on the Greek island of Evia, Mr Sianos and three other like-minded Athenians set up an eco-community.

The idea was to live in an entirely sustainable way, free from the ties of money and cut off from the national electricity grid.

The group sleeps communally in yurts they have built themselves, they grow their own food and exchange the surplus in the nearest village for any necessities they cannot produce.

I think there is a lesson to be learned there.

When the system fails, it is going to be important to be able to live independently of the system.

Governments and big banks all over the world have been rapidly preparing for the coming financial collapse.

Perhaps the rest of us should be too.

If you can believe it, 77 percent of all Americans live paycheck to paycheck at least some of the time.

If another major economic crisis comes along, many of those people are going to be totally wiped out.

And there are already signs that the U.S. economy is basically on life support at this point.

Just look at the velocity of money.

In an economy that is growing and healthy, money tends to circulate very, very quickly.

But when an economy is sick, money tends to circulate very slowly.

And that is exactly what is happening right now. In fact, the velocity of money is currently at the lowest level in modern U.S. history….

For much more discussion on this, please check out this article.

This is exactly what happened back in the 1930s. The velocity of money absolutely plummeted. When people are scared, credit is tight and times are hard, money does not exchange hands as rapidly.

But this is just the beginning.

What we are experiencing right now is rip-roaring prosperity compared to what is coming.

Jacob Rothschild, John Paulson and George Soros are preparing themselves for the tremendous chaos that is coming.

Are you getting prepared?

I found this comment to this article on FreeRepublic rather chilling as well:

Velocity Of Money is the frequency with which a unit of money is spent on new goods and services. It is a far better indicator of economic activity than GDP, consumer prices, the stock market, or sales of men’s underwear (which Greenspan was fond of ogling). In a healthy economy, the same dollar is collected as payment and subsequently spent many times over. In a depression, the velocity of money goes catatonic. Velocity of money is calculated by simply dividing GDP by a given money supply. This VoM chart using monetary base should end any discussion of what ”this” is and whether or not anybody should be using the word “recovery” with a straight face:

I’ve said it over and over and I’ll say it again: the beast is coming.  Revelation chapter six prophesies the world in the last days in total meltdown: economic catastrophe, wars upon wars, famines and grim diseases.  And into that maelstrom comes the beast – the Antichrist, the ultimate false messiah who will make the false messiah Obama look like a fart in a hurricane – riding in on his white horse to save the day.

Why will the world worship the beast and literally take his mark upon their right hands or foreheads in act of economic worship?  Because he will enter the scene during a time of complete catastrophe and chaos and despair and seem to have all the answers.  But it will be not only under but because of his leadership that his promised Utopia degenerates into complete hell on earth in only seven short years.

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8 Responses to “Frightening Article About Impending Economic Collapse – The Hoofbeats Of The 4 Horsemen Of The Apopalypse Are Beginning To Echo”

  1. FMC Says:

    That chart of M2 velocity is definitely very telling and scary.

    This economy, since we completely got off the gold standard, has been artificially inflated by Federal Reserve policies (manipulation). Most of the wealth created during the 80′s. 90′s, and 2000′s has been an illusion created by a debt super cycle. Today, our markets naturally want deflation as the debt super cycle unwinds and nears its ugly end. Deflation is a natural process that occurs when debt is paid or written off and new debt is taken on at a much slower rate. Really what this means is that balance sheets are being repaired. However, the government through the Fed doesn’t want to allow this to happen. Instinctively, these idiots want to re-inflate! From here on out, we are going to swing between the extremes of inflation and deflation, as these two forces fight each other, tearing our economy to shreds.

    The government naturally wants, needs inflation to survive. From the government’s perspective, inflation helps with the debt issues by making the debt smaller – paying off past debt with cheaper dollars. There are other reasons, but I won’t go into that. Without inflation, big government cant survive and they will do anything to stop deflation. Deflation will only make the debt worse for the government.

    Today’s low velocity of money is definitely a sign of a shitty economy. However, high velocity is needed for inflation and is always present with hyper inflation. Today’s government has gone to extreme measures to re-inflate. Luckily, most of the money created hasn’t spilled out into the real economy, where it could turn into high levels of inflation or even the deadly hyper inflation. The low velocity on the chart is a definite indication that the massive money creation hasn’t entered the real economy, even though inflation is much higher than the government states. Most of the money created has landed on the balance sheets of the mega banks or loaned to the black hole known as the Federal government.

    Remember that all money created initially started out as a loan. Deflation, a shrinking money supply, are loans being paid back or defaulted on (written off). Inflation, an increasing money supply, are loans (new money creation, debt) being take on. No one really knows which one, deflation or inflation, will win. Either way, we are headed for massive deflation or diabolical inflation. Either one will destroy our economy; however, if our economy is allowed to deflate slowly, we will have a chance.

  2. Michael Eden Says:

    FMC,

    Great points.

    We are going to see sky-high inflation like this nation has never seen the moment this economy truly starts to recover on my own view.

    Why? Because the Federal Reserve trying to support insane Obama administration spending has so inflated the money supply that it is beyond unreal. And whenever you have more of something, the value of that thing goes down (the LAW of supply and demand). So right now we’ve got tons of artificially-created money (QE1 and QE2 basically just added zeros in the Fed computers!), but what is “protecting” us is that that money largely isn’t being spent due to all the fear and uncertainty this failed presidency has put on businesses and consumers alike. Which is a big part of the reason why none of this government-spending “priming” has had so little effect as people literally cower in the corners. As that money starts entering the market and BEING spent in a true recovery, you will see the effects of inflation seriously take hold as all that artificially generated money floods and overwhelms the formerly free-market system.

    We are now at a point in which no matter what we do, the sins of our past – and most particularly the sins of our OBAMA past – will come back to haunt us badly.

    Another tragic effect of the Obama/Fed policies has been to punish the mostly elderly who save or who rely on interests. They have basically been robbed.

  3. FMC Says:

    If the Fed would let the free market reign, interest rates would naturally float and help contain any real inflation. Look at how Volker tamed inflation when he was at the helm of the Fed by driving up rates. The free market will naturally do this on its own: we don’t need the Fed for this. One of the biggest issues I have with the Fed is it’s manipulation of interest rates. Keep in mind that they are always wrong and behind the curve when it comes to their failed interest rate policies. We have had almost zero short-term rates for a long time. Eventually, they will have to raise rates to try and contain inflation caused by their stupid easing. Now, in the past when they have raised – think very late 90′s, 2007 – they have managed to pop any bubble they created in the low interest rate boom phase. This time will be no different, something will break and we will get another crash. However, this economy could collapse before then, though, because there are so many issues and variables it would take a large book to explain them.

    We don’t necessarily have to go into massive inflation. Deflation could win the battle. I, like you, think that odds are higher for inflation, but don’t marry that idea, because it doesn’t have to happen that way. Look at Japan as an example. Protecting your wealth will depend on which outcome will emerge, though it probably won’t matter unless you want to accept the mark.

    By the way, the is Free Market Capitalist. I just went with the initials to save time typing.

  4. Michael Eden Says:

    Free Market Capitalist,

    It only occurred to me that it might be you as I was finishing my first comment.

    Japan is an interesting example. I would have to look at that country and see if it qualified for my scenario (where they loaded up with debt and then LATER the economy took off in true recovery). It seems to me – without looking back at the history, that they simply ran into a “lost decade” and have never had the type of recovery – and subsequent inflation – that I am describing.

    And you’re certainly right on the strong possibility that we DON’T ever have a strong recovery: the type of inflation that I am describing (where all of these trillions of dollars that have been artificially created begin to flood into an economy to take advantage of a recovery) may very well not occur. That said, I don’t see how we could have such a true recovery, enact a suitable monetary policy to deal with our larger issues, and then not kill that budding recovery as a result of said policy.

    In this sense the proper Fed policy would be like cancer and chemo: maybe chemo is what you need for your long term health, but it’s going to truly suck for your short term health.

    One thing I don’t see the Fed doing – because I truly don’t think they’ve EVER managed it before – is get the balance precisely right. That’s one thing I think you and I would both agree upon: these “class of experts” think they can push all the buttons and pull all the levers at exactly the right time and exactly the right amount and they simply cannot.

    Could a true embrace of the free market save America? Maybe. And maybe not. There comes a point when a system has been so damaged and is so messed up that nothing you do will fix it. My fear is that we may already be beyond that point. We’re looking at a real fiscal gap of $222 trillion. And that doesn’t even count the trillions more that the states face in unfunded liabilities (California ALONE has a $500 billion gap!!!).

  5. FMC Says:

    I think that the ultimate question, which you brought up, is it too late, have we gone too far? Personally, I think there is a way out of this, but it would take too much austerity and sacrifice from all involved. Because of the austerity, sacrifice and change required, the cataclysm we face will never be averted. Indeed, we are on the road to hell. Sadly, it is just a matter of time. Is it any wonder that any measure taken by politicians or the “experts” only results in kicking the can down the road. To right the ship, we would have to change the entire financial system and that isn’t ever going to happen.

    In my opinion, on a spiritual level, this has been in the planning for decades. We didn’t get to this place by chance, but those evil planners residing in the unseen world have been orchestrating and planning this since the beginning to bring about the son of perdition and the rest of the unholy trinity into power, for the final battle of this era against the almighty! Like you keep saying, THE BEAST IS COMING!

    Since 97′, I have been involved in stock, options and futures trading. This doesn’t make me an expert, but I have a deep fascination with the financial system and the Federal Reserve, and with this fascination and direct exposure to the markets, I have been fortunate to gain much knowledge about how it works and doesn’t work. I just wish that everybody had some type of knowledge about what is really going on. It is sickening that so many people in America are totally clueless about how our financial system “works.” Most don’t even realize that the government is stealing from them not only by excessive taxation but through inflation as well. The sheople are like the proverbial frog boiling in a pot of water. Sometimes I wonder if the pot is even big enough.

  6. Michael Eden Says:

    FMC,

    I completely agree with your first paragraph: we theoretically DO have a way out, but we are basically too depraved as a nation at this point to take it. And even if a bare majority actually WERE ready to embrace what had to be done for the sake of the next generation, our system is such that a minority could prevent it from ever happening. In addition, America is far too short-term oriented (we have national ADHD) to stay with the party that truly tried to do what had to be done. We’d have some tough years and the Democrats would demagogue and win the next elections. Which is another way to say that we are screwed.

    As to your second para, again, yep. Of course, God foreknew 2,000 years ago (and frankly an eternity ago) that we would be at this point at this time.

    One of the things that most angers me is how pathetic America and the world is in the last days. As you point out, we COULD have made the right choices, but we pathetically and cowardly refused to do so.

    God knew that we would vote for Obama, and he knew that Obama would be a magnificent turd who would put America into the arms of the Antichrist.

    I had a thought as I read your last para: I doubt if ANYBODY truly understands how our system works. And that is because those who truly are the most deeply involved and understand what they are doing or trying to do themselves don’t fully understand the consequences of their actions. There certainly could have been a time when a financial genius could understand the totality of an economy, but these days it would take a bank of supercomputers even to have a true grasp on just one simple fraction of the total market. That is certainly true of derivatives, for instance. Then there’s the fact of the nature of evil as Hannah Arendt came to understand the Nazis – the faceless blasé of the masses of bureaucrats who are all collectively merely following their instructions that result in perpetuating genuine evil. And since so many played only a minor part as cogs in the machine, nobody feels responsible. Which is ultimately why we keep slouching toward Armageddon in the first place.

    We see hints in the Bible about a giant supernatural war that is going on all around us; angels and demons being princes of realms who are at war with one another for supremacy. There are vast cosmic actions that are going on all around us that we are simply blind to – and God alone ultimately understands all of these battles and what the consequences of each victory and each defeat ultimately are. And I believe that economists and financeers are very much pawns in this great battle.

    And of course, as you say, it’s a rare thing to even meet somebody who understands how the markets are manipulated so that governments can siphon the wealth of their people, let alone grasp the “big picture” stuff that NONE of us this side of eternity understand.

  7. FMC Says:

    Behold! Speak of the Devil, the Fed announced today that QE3 (bond buying) is a distinct possibility. Shucks….what a surprise. The Fed really has no choice, as this whole economic recovery is nothing but smoke and mirrors, levitated by crack cocaine from the Fed. Now that the high from the last round (QE2) is wearing off, they need to supply the addict with even more drugs. Obviously, if the Fed and government would just get out of the way, we could have a real recovery, but they won’t do this because, first, we would have to go through pain (recession) before the recovery and we can’t have pain.

    Also, the Fed stated that they want banks to increase their lending. Maybe more of this funny money will enter the economy and create high inflation? QE3, like 1 and 2, will also further inflate commodities. The Fed really is in a box, because more easing will result in higher oil prices and higher oil prices will eventually nullify the intended reasons for easing. Man, talk about a juggling act. This is going to end in disaster.

    In addition to higher oil prices, we will get even higher food prices, which will further impoverish the poor. I guess we will just give out more food stamps. Of course, the Fed’s inflation numbers fail to properly include food and energy.

    Interestingly, the market has been rising in recent weeks. I think one of the reasons for the rise is anticipation of QE3. However, the Fed is less likely to ease if the market remains at these levels or runs higher, so it wouldn’t surprise me to see a sell off take place here. Like I said earlier, QE is like crack cocaine to the equity and commodity markets. Forget the fundamentals.

  8. Michael Eden Says:

    FMC,

    I’m hoping the Fed doesn’t act before the election simply because they fear what they SHOULD fear – that doing so would be seen as a naked political move.

    The CBO just released a statement that essentially says that if we all the idiot sequestration to go forward we will DEFINITELY go into another recession.

    Whose failed lack of leadership is responsible for this turd? Obama’s.

    Who has literally said that he would veto any attempt to undo what the CBO says will definitely create a new recession? Obama.

    We don’t need the Fed to make another stupid move. We need to rid ourselves of this stupid president.

    If Romney is elected, we won’t need the Fed to do another quantitative easing (and how many of these damn things do they need to do to realize that it doesn’t work, anyway???) because Romney will undo the sequestration crap. If Obama is re-elected, QE3 won’t help anymore than QE1 or QE2 did.

    Another thing that is interesting is that these quantitative easings have CLEARLY not helped the common man in any way, shape or form. Who DO they help? You say it: a paricularly rich member of the investor class (or should I say “incestor” class?).

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