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[cottonpicken]

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We are getting so close to a financial collapse in
Europe that you can almost hear the debt bubbles
popping. All across the western world,
governments and major banks are rapidly becoming
insolvent. So far, the powers that be are keeping all
of the balls in the air by throwing around lots of
bailout money. But now the political will for more
bailouts is drying up and the number of troubled
entities seems to grow by the day. Right now the
western world is facing a debt crisis that is
absolutely unprecedented in world history. Europe
has had a tremendously difficult time just trying to
keep Greece afloat, and several much larger
European countries are now on the verge of a major
financial crisis. In addition, there is a growing
number of very large financial institutions all over
the western world that are also rapidly approaching
a day of reckoning. The global financial system is a
sea or red ink, and when we get to the point where
there are hundreds of ships going under how is it
going to be possible to bail all of them out? The
quotes that you are about to read show that quite a
few top financial and political insiders know that
things cannot hold together much longer and that a
horrific economic crisis is coming. We built the
global financial system on a foundation of debt,
leverage and risk and now this house of cards that
we have created is about to come tumbling down.

A lot of people in politics and in the financial world
know what is about to happen. Once in a while they
will even be quite candid about it with the media.

As I have written about previously, Europe is on the
verge of a financial collapse. If things go really
badly, things could totally fall apart in a few weeks.
But more likely it will be a few more months until
the juggling act ends.

Right now, the banking system in Europe is coming
apart at the seams. Because the global financial
system is so interconnected today, when major
European banks start to fail it is going to have a
cascading effect across the United States and Asia
as well.

The financial crisis of 2008 plunged us into the
deepest recession since the Great Depression.

The next financial crisis could potentially hit the
world even harder.

The following are 12 shocking quotes from insiders
that are warning about the horrific economic crisis
that is almost here....

#1 George Soros: "Financial markets are driving the
world towards another Great Depression with
incalculable political consequences. The authorities,
particularly in Europe, have lost control of the
situation."

#2 PIMCO CEO Mohammed El-Erian: "These are all
signs of an institutional run on French banks. If it
persists, the banks would have no choice but to
delever their balance sheets in a very drastic and
disorderly fashion. Retail depositors would get edgy
and be tempted to follow trading and institutional
clients through the exit doors. Europe would thus
be thrown into a full-blown banking crisis that
aggravates the sovereign debt trap, renders certain
another economic recession, and significantly
worsens the outlook for the global economy."

#3 Attila Szalay-Berzeviczy, global head of
securities services at UniCredit SpA (Italy's largest
bank): "The only remaining question is how many
days the hopeless rearguard action of European
governments and the European Central Bank can
keep up Greece’s spirits."

#4 Stefan Homburg, the head of Germany's Institute
for Public Finance: "The euro is nearing its ugly end.
A collapse of monetary union now appears
unavoidable."

#5 EU Parliament Member Nigel Farage: "I think the
worst in the financial system is yet to come, a
possible cataclysm and if that happens the gold
price could go (higher) to a number that we simply
cannot, at this moment, even imagine."

#6 Carl Weinberg, the chief economist at High
Frequency Economics: "At this point, our base case
is that Greece will default within weeks."

#7 Goldman Sachs strategist Alan Brazil: "Solving a
debt problem with more debt has not solved the
underlying problem. In the US, Treasury debt
growth financed the US consumer but has not had
enough of an impact on job growth. Can the US
continue to depreciate the world’s base currency?"

#8 International Labour Organization director
general Juan Somavia recently stated that total
unemployment could "increase by some 20m to a
total of 40m in G20 countries" by the end of 2012.

#9 Deutsche Bank CEO Josef Ackerman: "It is an
open secret that numerous European banks would
not survive having to revalue sovereign debt held
on the banking book at market levels."

#10 Alastair Newton, a strategist for Nomura
Securities in London: "We believe that we are just
about to enter a critical period for the eurozone and
that the threat of some sort of break-up between
now and year-end is greater than it has been at any
time since the start of the crisis"

#11 Ann Barnhardt, head of Barnhardt Capital
Management, Inc.: "It's over. There is no coming
back from this. The only thing that can happen is a
total and complete collapse of EVERYTHING we now
know, and humanity starts from scratch. And if you
think that this collapse is going to play out without
one hell of a big hot war, you are sadly, sadly
mistaken."

#12 Lakshman Achuthan of ECRI: "When I call a
recession...that means that process is starting to
feed on itself, which means that you can yell and
scream and you can write a big check, but it's not
going to stop."

*****

In my opinion, the epicenter of the "next wave" of
the financial collapse is going to be in Europe. But
that does not mean that the United States is going
to be okay. The reality is that the United States
never recovered from the last recession and there
are already a lot of signs that we are getting ready
to enter another major recession. A major financial
collapse in Europe would just accelerate our plunge
into a new economic crisis.

If you want to read something that will really freak
you out, you should check out what Dr. Philippa
Malmgren is saying. Dr. Philippa Malmgren is the
President and founder of Principalis Asset
Management. She is also a former member of the
Bush economic team. You can find her bio right
here.

Malmgren is claiming that Germany is seriously
considering bringing back the Deutschmark. In
fact, she claims that Germany is very busy printing
new currency up. In a list of things that we could
see happen over the next few months, she included
the following....

"The Germans announce they are re-introducing
the Deutschmark. They have already ordered the
new currency and asked that the printers hurry up."

This is quite a claim for someone to be making.
You would think that someone that used to work in
the White House would not make such a claim
unless it was based on something solid.

If Germany did decide to leave the euro, you would
see an implosion of the euro that would be truly
historic.

But as I have written about previously, it should not
surprise anyone that the end of the euro is being
talked about because the euro simply does not
work.

The only way that the euro would have had a
chance of working is if all of the governments using
the euro would have kept debt levels very low.

Unfortunately, the financial systems of the western
world are designed to push governments into high
levels of debt.

The truth is that the euro was doomed from the
very beginning.

Now we are approaching a day of reckoning. We
have been living in the greatest debt bubble in the
history of the world, but the bubble is ending.
There are several ways that the powers that be
could handle this, but all of them will lead to
greater financial instability.

In the end, we will see that the debt-fueled
prosperity that the western world has been enjoying
for decades was just an illusion.

Debt is a very cruel master. It will almost always
bring more pain and suffering than you anticipated.

It is easy to get into debt, but it can be very difficult
to get out of debt.

There is no way that the western world can unwind
this debt spiral easily.

The only way that another massive economic crisis
can be put off for even a little while would be for
the powers that be to "kick the can down the road"
a little farther by creating even more debt.

But in the end, you can never solve a debt problem
with more debt.

The next several years are going to be an incredibly
clear illustration of why debt is bad.

When the dominoes start to fall, we are going to
witness a financial avalanche which is going to
destroy the finances of millions of people.

You might want to try to get out of the way while
you still can.


-Dont have the authors name

[farmaholic]

Has anyone liquidated their mutual fund portfolios to cash, gold or what have you? It would be interesting to see what others think is going to happen.

[parsley]

Cash other than a fund on interest rate
ups/downs. Tangibles. Stores wont have enough
$ to order goods. No op loan wil be available.
IMHO. Food enough to feed you,Joe so you can
maintain Agriville. lol. Pars

[boarderbloke]

The paragraph after the five stars that starts with, "In my opinion" ???
Cotton, is that your "opinion" or another writer?

I agree with most everything writen, most of the wealth in our society has been an illusion because the wealth has been debt.

The can has been kicked down the road, the problem is that in the 60's the can was simpley a pop can, but as debt has grown, so has the size of the can, to now, where it's the size of a 1000 gal fuel tank(not so easy to kick) and very soon(weeks or maybe months) to be the size of a 400bbl test tank! No kicking that anywhere!

Cotton, have you changed your opinion about the inflation scenario??? because reading this articale sounds like deflation to me. I value your opinion.

What would all this mean to agriculture? Land prices? Recently some land auctioned in Iowa went for over $10,000/acre, not for development but for growning corn and beans. What about equipment, machinery, fuel & oil,? After '29, didn't all things drop in price, if people don't have money how can there be inflation? Grain might spike up temporarily when those that still have a money left secure what they need, but after that I think they go down, really down. How long ago was it that feed barley was less than a buck a bushel. FOB SESK

Governments around the world have tried to create inflation to get the economy started and have failed. Now we're left with even more gov't debt.

[ColevilleH2S]

The sky if falling! The sky is falling!

Churp churp.

[sumdumguy]

I am trying to see this picture. We have fueled a
fake economy with cheap money. We are like
monkeys poking sticks in a fire - waiting to see
who will get burned.

My bet is, banks will get cold feet, stop lending
and back we go. FAst forward to reality.

[cottonpicken]

That was all written by someone else,i'm not sure
why a name wasn't tagged on to it.

It's along the lines of what i believe,but the authors
views are a little narrow,i manly posted it to show
the quotes coming out of the big wigs mouths,scary
stuff.

I havnt had to change my mind about the situation
for eight years,things are developing the way the
great analysts have predicted.

My own miss calculation was that i thought the
brief economic downturn that we are experiencing
was to come right on the heels of the end of qe2 at
the end of august.

I predicted that they would make us beg for more
qe stimulus,but gold took off and i ASSumed i was
wrong and that the inflation train was saying all
aboard.

Turns out i was right but my timing was wrong.

Say la v

For the first time ever the us government and fed
are acting responsible.

Which is deflationary and counter to what i believe
will happen.

Will it continue?

Thats the million dollar question.

I believe the system is to far gone to repair by
responsible measures.

Everyone is looking for scape goats and the usual
suspects always pop up,the fed,the banksters,wall
street,the wars,etc,etc.

But i believe its everyone.

Everybody was voting for whatever politician would
give them the most.

Society has been robbing itself.

There is only one tool in the,tool box,the printer.

Time to pay the piper.

[cottonpicken]

I ment to say"start of august"

[grrrr]

I've said it before on Agri-ville and I'll say it again, "If the lessons of the 1930's would have been followed, we would not be in the trouble we're in."

[hedgehog]

In the thirties, the wheat price crashed because of stalin flooding the west with stolen grain, not because of the economic crash.
Wheat should stay up this time.
The british govt is bleeding the country dry with fuel tax, but wants to print money to stimulate the economy. What planet are they on?

[sumdumguy]

Food will be the wildcard again. The
governments know that hunger will kill them.
They will likely do what it takes ti keep their
countries fed.

[boarderbloke]

Cotton, Is default not in the tool box as well as the printer?

Won't all this massive global debt have to dealt with in one of two ways, default or printing $$$ Deflation vs. inflation. deflation will be favored if you have wealth, inflation is better if you don't.

[furrowtickler]

Funny how Russia is now releasing very large quantities of wheat into the market and the timing? Or they just had had a massive harvest the erased a huge shortfall - who realy knows?? Maybe Stalin's back lol.

[cottonpicken]

A default scenario is what is scaring the bejesus out
of people,its a domino they cant let happen.

If greece or one of the big pigs defaults the banks
have to take right downs on there balance
sheets,and seeing has how they are more than 10 to
1 leveraged they become insolvent and then other
banks all over the world that are tied with those
banks become insolvent.

This is what is happening to bank of america,its not
tied to greece so much as french banks that are tied
to greece.

Welcome to the world of global derivatives.

It is inflate or die.

The tug of war in europe is at the breaking point,if
the don't come up with a plan to tie europe
together under a eruo bond or massive debt pool
under efsa,they are screwed,and then so are we.

In other news the gao did an audit of the fed and
found out the funny surprise that it had lent out 16
trillion in 2008-all over the world.

[sumdumguy]

What about canadian banks? Who are they tied
to?