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.

Obama Says ‘We Cannot Turn Back’ As He Leads America To Hell

Obama talks about how we’ve got to keep moving forward with his policies:

From The Wall Street Journal:

“It’s a choice between the policies that led us into this mess and the policies that are leading us out of this mess. It’s a choice between falling backwards or moving forward,” he said.

He repeated the “moving forward” theme several times, and his press secretary, Robert Gibbs, tweeted that same thought, suggesting this is a theme we’re likely to hear again and again as the November elections approach.

But what if “moving forward” means driving pell mell off a cliff to a violent, bloody, screaming, pooping-your-pants-on-the-way-down death?  What if “moving forward” means going to hell?

Let us take a moment to ponder the views expressed by Obama’s handpicked Democrat on Obama’s handpicked debt commission:

From the Associated Press:

Debt commission leaders paint gloomy picture
By GLEN JOHNSON, Associated Press Writer Glen Johnson, Associated Press Writer   – Sun Jul 11, 9:30 pm ET

BOSTON – The heads of President Barack Obama’s national debt commission painted a gloomy picture Sunday as the United States struggles to get its spending under control.

Republican Alan Simpson and Democrat Erskine Bowles told a meeting of the National Governors Association that everything needs to be considered — including curtailing popular tax breaks, such as the home mortgage deduction, and instituting a financial trigger mechanism for gaining Medicare coverage.

The nation’s total federal debt next year is expected to exceed $14 trillion — about $47,000 for every U.S. resident.

“This debt is like a cancer,” Bowles said in a sober presentation nonetheless lightened by humorous asides between him and Simpson. “It is truly going to destroy the country from within.”

And:

Bowles said if the U.S. makes no changes it will be spending $2 trillion by 2020 just for interest on the national debt.

“Just think about that: All that money, going somewhere else, to create jobs and opportunity somewhere else,” he said.

Okay.  In agreement with the Chairman of the Joint Chiefs of Staff, Obama’s own handpicked Democrat on his own handpicked debt commission says our spending and the resultant skyrocketing debt is literally murdering America.

And who’s doing all the spending?

Obama is so completely out of control that even his own Democrat Party is pleading with him to slow down:

President Obama’s urgent plea for more spending on the economy ran into the political buzz saw of the Senate on Tuesday, where Democratic leaders began chopping apart an aid package for unemployed workers and state governments in an effort to lessen its impact on the deficit.

Obama is so completely out of control that even the socialist Europeans are telling him he’s flat-out wrong in his spending blitzkrieg:

President Barack Obama’s push for continued global stimulus in light of a tenuous economic recovery was largely pushed back at the G-20 as world leaders agreed to focus on deficit reduction.

Obama and his team have repeatedly warned that while the worst of the crisis has passed, the recovery is still “uneven and fragile” and ongoing stimulus efforts are needed.

But European leaders, led largely by German Chancellor Angela Merkel, have pushed back on increased spending as deficits rage out of control.

And this isn’t something that just started happening, either.  Barack Obama has been recklessly spending out of control from the very beginning of his presidency, as an event from March 29, 2009 proves:

STRASBOURG, France —  A top European Union politician on Wednesday slammed U.S. plans to spend its way out of recession as “a way to hell.”

Czech Prime Minister Mirek Topolanek, whose country currently holds the EU presidency, told the European Parliament that President Barack Obama’s massive stimulus package and banking bailout “will undermine the stability of the global financial market.”

The “God damn America” president is damning us down the way to hell.

The same article from March 2009 says:

The United States plans to spend heavily to try and lift its economy out of recession with a $787 billion economic stimulus plan of tax rebates, health and welfare benefits, as well as extra energy and infrastructure spending.

And we now know how that more-like-to-$862 billion which really will cost America $3.27 trillion “stimulus” worked out for us.  Poorly.

A poll by the New York Times and CBS revealed that only 6% of Americans believed that the Obama stimulus created any jobs at all.  And even those economists who see an economic rebound don’t believe the “stimulus” had anything to do with it.

The Europeans who are somehow less socialist than our Marxist-in-Chief were right.  And now our unemployment rate is actually the worse because of a “stimulus” that gave us little more than liberal Democrat special interest pork in exchange for crippling debt that will enslave us for decades to come.

Reckless spending is destroying this country.  And for Obama, “moving forward” means driving America off a cliff to it’s screaming doom.

And that is an overwhelmingly documented fact.

Erskine Bowles is also on the record as saying, “This is the most predictable economic crisis in history.”

Which is what people like me have been saying since even before Obama got elected.

In October 2008 I wrote an article which quoted Chief Executive Magazine as follows:

In expressing their rejection of Senator Obama, some CEOs who responded to the survey went as far as to say that “some of his programs would bankrupt the country within three years, if implemented.” In fact, the poll highlights that Obama’s tax policies, which scored the lowest grade in the poll, are particularly unpopular among CEOs.

What do I say but, in voting for Obama, we elected to slit our national belly open and stupidly watch our entrails spill out onto the floor?  Some fools may have naively believed they were voting for hopey-changey, but what they were really voting for was national harakari.

But Obama has said something else in his increasingly demagogic, no-hope-and-change-but-politics-of-divisiveness-and-fear speeches.

He’s also said:

At a second fundraiser, Obama said, “What the other side is counting on is people not having a very good memory.”

Well, let’s do that.  Let’s look at the facts from the past.  Let’s improve our memories.

Let’s start with spending, since that’s what we’ve been talking about up to now.

For the record, the last budget from a Republican President AND a Republican Congress – FY-2007 (passed in 2006) – resulted in a$161 billion deficit at a time when unemployment was 4.6%.  That’s what happened the last time the GOP was in control.

What happened when the Democrats took control in January 2007?  Harry Reid and Nancy Pelosi passed a FY-2008 budget that had a $459 billion deficit – nearly three times the deficit in the immediately previous Republican-passed budget.  Three times.  And this before the financial crisis that somehow “necessitated” all this massive spending.

Now, that’s a pretty crazy increase under Democrat control.  But you aint seen nothin’ yet.

The Democrats passed a FY-2009 budget with a staggering, mind-boggling, totally reckless $1.42 TRILLION deficit.

The FY-2010 budget approved by Reid and Pelosi and signed by Obama had an estimated $1.6 TRILLION deficit.

The deficit has increased from $161 billion in the last budget before Democrats took control of the Congress (FY 2007) to $1.42 trillion in the most recent fiscal year (FY 2009)—an increase of $1.26 trillion or 782%.

With three months remaining in the fiscal 2009 budget, the federal deficit just officially passed the $1 trillion mark.  Worse yet, Obama borrowed more than forty cents for every single dollar he spent.

We also suffered a budget shortfall of $94 billion in the month of June, which marks the first June in more than ten years (read, “encompassing the entire Bush presidency”).

And now the Democrats aren’t even bothering to pass a budget for the next fiscal year, so they can simply spend without any accountability whatsoever.

The old annual deficits under Republicans have now become the monthly deficits under Democrats:

In the 12 years that Republicans controlled the House, the average deficit was $104 billion (average of final deficit/surplus FY1996-FY2007 data taken from Table F-1 below).  In just 3 years under Democrats, the average deficit is now almost $1.1 trillion (average of final deficit/surplus FY2008 and 2009 data taken from Table F-1; FY2010 data taken from Table 1-3).  Source: CBO January 2010 Budget and Economic Outlook

Some money quotes on who is responsible for all the reckless spending from The Wall Street Journal:

• Mr. Obama’s $3.6 trillion budget blueprint, by his own admission, redefines the role of government in our economy and society. The budget more than doubles the national debt held by the public, adding more to the debt than all previous presidents — from George Washington to George W. Bush — combined. It reduces defense spending to a level not sustained since the dangerous days before World War II, while increasing nondefense spending (relative to GDP) to the highest level in U.S. history. And it would raise taxes to historically high levels (again, relative to GDP). And all of this before addressing the impending explosion in Social Security and Medicare costs.
• Mr. Obama cannot dismiss critics by pointing to President George W. Bush’s decision to run $2.9 trillion in deficits while fighting two wars and dealing with 9/11 and Katrina. Mr. Obama will surpass Mr. Bush’s eight-year total in his first 20 months and 11 days in office, adding $3.2 trillion to the national debt. If America “cannot and will not sustain” deficits like Mr. Bush’s, as Mr. Obama said during the campaign, how can Mr. Obama sustain the geometrically larger ones he’s flogging?

I think I can rest my case on who is spending us into a painful death by cancer.  If you want to try to argue that Republicans were bad when they were in control, fine.  But the Democrat freak show since Republicans were in control has been so shockingly, appallingly horrendous SINCE Republicans were last in control that it isn’t even remotely funny.

To those who say “Blame Bush!  Blame Republicans!” I say, “No, blame YOU for being so stupid as to believe such transparent lies.”

Having firmly established who is giving America cancer, as per Obama’s own handpicked Democrat’s metaphor, let’s move on to who we should really blame for the economic meltdown.  With our good memories.

Fannie Mae and Freddie Mac were as responsible for our 2008 economic meltdown as ANYTHING was.  George Bush tried SEVENTEEN TIMES to create tighter regulation of the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac.  But Democrats are as thick as fleas in Fannie and Freddie, and every single effort by Bush and Republicans to avoid the financial disaster which ultimately engulfed us in 2008 was rebuffed.  Every single one.

What you will find, if you do a forensic analysis after an explosion, is that Democrats had their hands all over whatever it was that exploded before the explosion happened.

Now let’s turn to the other debt.  Not the measly, paltry $14 trillion debt that Obama has had such a huge hand in such a short time racking up.  No, I mean the REAL debt.  The $130 TRILLION that is off the books.

George Bush also tried to deal with the massive problem of Social Security, which under Barack Obama and Democrat control is in the red for the very first time in its history.

We’ve heard over and over again the demagogic Democrat arguments that the Republican Party is obstructing progress by resisting Democrats.  And how evil they are to be the “party of no.”  Let’s see the REAL evil obstructionist party of no in action, as George Bush tried to fix Social Security BEFORE it entered negative cash-flow territory:

The Left now acts as if this never happened. For instance, in a recent television appearance, liberal commentator Bill Press argued that–rather than noisy disagreement–”Americans want discussion” on health-care reform. Who could disagree with that sentiment–except, perhaps, the Obama administration, which pushed Congress to rush through legislation by early August? This timeline was clearly aimed at preempting discussion and presenting the public with a “done deal” on health reform. As one protester put it, the president spent more time choosing a dog than he did discussing health-care reform.

Likewise, Mr. Press complained that opponents hadn’t put their own reform plans on the table. “The people who are there to protest–what are they for? Are they for the status quo? The Republicans haven’t put any other plan on the table.” But did congressional Democrats offer their own alternative to President Bush’s 2005 Social Security plan? When a fellow Democrat asked Rep. Nancy Pelosi when their party would offer its own Social Security plan, her answer was “Never. Is that soon enough for you?” Democrats would not even negotiate until personal retirement accounts were taken off the table. Why should Republicans act differently today, regarding the “public option”?

It’s hard not to see the Democrat Party as the party of genuine evil.

Obama keeps passing these gigantic, unwieldy bills that massively increase spending and massively redistribute wealth (aka Marxism and the maxim, “From each  according to his ability, to each according to his need”).  And he’s going to keep doing it until Democrats are stopped dead in their tracks.  And we’ve already reached critical mass.

Obama’s choice between falling backwards or moving forward is no choice at all.  We simply have got to purge ourselves of Democrats, or we are going to implode.