When i talk catastrophe i am among those that perceive a set of never ever before circumstances that will bring on a global financial collapse never before seen.
The Geo-Political side can be the pin that bursts the immense balloon.
The darkness includes rampant corruption, rampant greed, and future with two classes , the super rich and the poor.
War will just be the kindling to a world financial system that can stand only as long as the international financial system can manage to juggle 12 balls at once without one dropping.
The derivatives market alone has at risk more than ALL the money in the ENTIRE world.
I again quote Greenspan for one of his moments of honesty when asked at a conference by a journalist " Could there be a total global meltown?" said "yes, it is in the realm of possibilty."
He said to Congress, but no one listened to his words , in essence 'I am quite disturbed at the massive risk taking based on the presumption of very prolonged(many many years) stability and low interest rates in the longbond.'
He added this asssumption has no historical basis to think such a matter will be the case.
The money now at risk based on bond stability into the distant future is beyond insane.
So why is it happening, because the dealers, the pushers, that are scalping endlessly are putting tons of money in the bank, they are loaded to the max so when the cracking apart happens they will escape to their far away estates where the busted rabble can not reach them.
As George Soros said,
We are witnessing the greatest robbery in the history of the world right here in the United States.
He stated before the election that Bush economic policy are hugely pro corporation pro the very rich and to hell with the others.
He has stated, per a lifetime of BRILLIANT perceptions, that he sees not just a recession in the U.S. future, but a disaster, and he emphasized he was not overstating when he said disaster.
He stated that all great busts and booms follow a paradigm shift at the political level.
He stated that the far right economics of this administration has put us on a course for a bust of the highest magnitude.
The risk taking based on the stability of the longterm bonds is the largest one-sided bet in history, that means the bond market can NOT have any sudden dislocation without a massive dominoes falling chain reaction.
Dr.Marc Faber, who is another brilliant thinker with a mindboggling track record of great perceptions over the past 35 years, sees a banking crisis in the U.S. in its future.
The insane aspect of Bush harping at China is if China ever gets furious enough they can break the United States without a bullet being fired.
I have written before i have a mathematics i do in my head, i can't explain it, i just can do it.
In this mathematic i count the factors in world that can go wrong versus the solutions and we have going beyond the point of no return.
The number of matters that can implode the system far out number the solutions.
I refer again to the software concept of Critical Mass, this is the concept that when every solution to a bug in the software 2 bugs are generated is critical mass and the software is finished, there is no repair.
The financial world has been patching bugs frantically but they are losing the the battle.
Their are so many scenarios to set off the implosion it is quite something.
Economics is an in-exact science there is absolutely NO Newtonian Law saying it can't have a colossal failure.
i argue a disaster scenario not from whimsy but the running and processing of much data.
When i press the button to receive an answer i receive the answer Doom.
Well over 75% of my view is from an economic view and 25% the geo-political view---mix the two together and you have nitroglycerine.
The danger immanating from the financial is via, as i have stated, from the evils of rampant corruption and unrestrained greed.
I predict i will see this come to its completion lot sooner than one thinks.
But as Alan Newman says, regards this Bond market's insane complacency, the dislocation will come with absolutely no warning, and the rush to unravel positions will cause a massive drop in bonds which will cause a world wide financial tsunami.
The deep astounding complacency in this country is what one can identify as a mass event of cognitive dissonance.
The normal behavior of man is to in times when red flags are arising they refuse to see them because to see them would cause worry and emotional pain, so through the innate process of the herd to think via the process of cognitive dissonance, they censure out all disturbing thought and zone out into the defense mechanism of "what me worry".
Freud was part of those that described cognitive dissonance and went so far to say once any person, no matter his intelligence, their intelligence will drop once they start thinking with the herd.
What we rightly call the dumbing of america is because we are seeing mass cognitive dissonance at work.
yakety yak and so on and so forth.Max
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