International Finance Expert James H. Kunstler says in no uncertain terms that this year (2015):
“Goldman Sachs, Citicorp, Morgan Stanley, Bank of America, DeutscheBank, SocGen, all succumb to insolvency.American government and Federal Reserve officials don’t dare attempt to rescue them again.”
He goes on to forcefully state:
“Bank of America is the first of the Too Big To Fails to enter the event horizon of failure. Obama can’t get congress to go along with a bailout. By Thanksgiving, there is turmoil among the banks as they scramble to cover losses. A public furor over using taxpayer money to cover derivatives losses leads to an unprecedented concerted action by states to attempt “nullification” campaigns.
Citibank applies for a bail-in of account holders. Dithering, frightened federal authorities are too slow to respond, permittinga run on deposits.
Read the very extensive and terribly frightening list of things he says we’re headed-for . . . with no way to avoid!
Peter Schiff: Obama & Federal Reserve have created the Largest bubble in human history and labeled it a recovery!
Peter Schiff has spoken up again. This time to challenge the bulls who keep shoving the “strong economy” propaganda down our throats. He challenges the official narrative by making a few important points to help keep people from getting too excited about the recent reports.
1. Businesses have been buying into the recovery. As a result, they’re investing in more merchandise, expecting holiday sales to be strong — as a strong economy would predict. But he doesn’t expect the sales to be strong at all. If he’s right, these businesses will be very disappointed. Additionally, despite a supposedly “big” third quarter with 5% growth, if the fourth quarter looks bad, that’s also a bad sign for the first quarter of 2015.
2. The third quarter growth was determined by a huge increase in Obamacare spending — something we shouldn’t expect to be repeated in the fourth and following quarters. (While Schiff doesn’t mention it here, I show in this article how the third quarter “growth” was really just data manipulation at its finest.)
3. The job growth we’re experiencing is low-paying, part-time jobs that people are taking just to get by. This isn’t the kind of growth you build an economy on.
4. Savings rate is down, and the entire recovery is built on bubbles.
5. The Fed, despite hinting that it will raise interest rates because the recovery is so strong, still hasn’t increased rates. Schiff points out that if the recovery was legit, they would have raised rates long before now. The fact of the matter is that the Fed isn’t raising rates because they know they’ll prick the bubble we’re in because “it is the biggest one ever.”