Thursday, December 08, 2011

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Economic Precipice

by Dov bar Leib with edits by Reb Akiva @ Mystical Paths

Are we at the precipice?  An economic one certainly.  And at least Esav's goat is at the precipice.

Yet, because we are all connected to Western Civilization in its present form, we will all be affected when the goat goes over the Italian precipice.

I just have one piece of advice for those who have not prepared for this.  Denial is understandable, Normalcy Bias keeps us from recognizing that a catastrophic economic collapse or something approaching it might occur.

While the articles written from the edge are getting more extreme and more shrill, the circumstances are coming more and more in line with such articles.

imageThe European Last Change Summit seems like it is doomed to fail. They need to somehow raise at least 2 trillion Euro to just cover the magnitude of Italy's debt problems alone. And according to legendary investor Jim Rogers, the U.S. Federal Reserve is printing money like it is going out of style. Ben Oni Bernanke is desperately trying to save Western Civilization.

Take a chunk of money out of the bank today or tomorrow and hold it until next Tuesday afternoon. If nothing happens, put it all back in the bank and you will not have lost a penny. I would suggest that you have as much cash on hand as possible, just in case that there are massive bank closures worldwide. Keep in mind that you lose nothing or very little by having this cash on hand just in case there is an economic tsunami.

On Tuesday if nothing has happened, put your money back in the bank. If you want to take a risk, buy about a dozen canned food items for each member of your family if you haven't already made the more extensive preparations that I have been suggesting for the past several months. 

It is not my purpose here to scare the bejeepbers out of anyone, but these two pieces on ZeroHedge the beejeepbers out of me. And I am not easily phased these days.  In the first the author connects Lavan's latest actions at MF Global with the collapse of Edom's Euro.  Plus when Trusties (if the word still makes sense) remove $1.2 billion dollars from the investment savings accounts of private individuals, do we really have to wait until Gerald Celente is one of the victims to see grand theft on a global scale? Thank G-d in the highest Heaven that Jon Corzine was not a Jew.

In this second article he speaks of the Bundesbank (German central bank and the only one in Europe with any assets to speak of) preparing for "Plan B" as there seems to be a "lock up in interbank liquidity".  That’s one definition of the current financial system imploding.

Don’t be fooled by the mainstream financial news, CNBC, Bloomberg, and certainly not the mainstream news.  Reading them you’d barely know anything negative is happening.  The markets are bouncing wildly, every time there’s any positive moves the markets swing up, and every time the actual results of the situation come out the markets swing down.  Neither the news nor the markets are a source for what’s going on, rather they’re a reaction to it (if not ignoring it totally).

Occasionally something does leak out.  Here’s a video from today’s Wall Street Journal that was hidden 3/4 of the way down the page…. “They have to stop the whole thing freezing up.”  “The markets are headline driven.”  “The investors are not putting their money in the banks, so how are the banks to raise money?”

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