Showing posts with label systemic collapse. Show all posts
Showing posts with label systemic collapse. Show all posts

2/24/09

Message To The President

Dear Sir:

You and your team have very little time left to pull an "about face" on your fatally flawed plans to save the world. Your tactics, including spending trillions "stimulating" a dying economy, doing anything in your power to save the insolvent corpse of a banking system and to prop up a failed automobile industry, feigning confidence and strength in the face of devastation, will not work. They cannot work. The numbers, unlike you and your team, cannot conceal the truth for much longer. You are the President of the United States of America, and yet you are behaving, as all of your predecessors seem to have behaved before you, like the President of Bullshit Nation. Unfortunately for you, the bullshit cannot alter the coming realities.

Sir, virtually all of the banks of the world are, essentially, bankrupt. They have no capital. Capital has been summarily destroyed over the years by falling interest rates, rampant bond speculation and governmental check-kiting, fraudulent accounting, fraudulent valuation, the elimination of reserve ratios, the creation of money by federal decree (fiat currency), hidden off-book "assets" in the tens of TRILLIONS of dollars, a shadow banking system driven by derivative betting scams that globally reach toward half a QUADRILLION dollars in scope, etc. As Secretary Geithner embarks on his supposed banking "stress tests", and if he does so in earnest, you'd best be fully prepared for what you must uncover: Trillions upon trillions of pieces of worthless paper. If Assets = Liabilities + Equity---and in a world where many if not most of these institutions are leveraged 30:1, 40:1 and beyond---then the majority of assets currently held by the world's banks are worthless. Are you ready to tell the people the truth, sir? I fear not.

Peacenik wonders what would happen if Obama stepped up and stated the truth. The truth as Dan W. sees it in this post. Dan W. and Illargi, and Mish and Soros are talking about the need to create a whole new system. Scary times. Who do you trust to create a new system? And how wrecked does the present system have to be before you can start building a new system? The fringe bloggers are talking about systemic collapse happening very quickly and soon. Obama and his advisors are acting like they believe the same thing. Obama and our leaders are acting like they are holding on to the edge of the abyss by their fingernails. They are not making Peacenik confident about tomorrow....or today.

10/7/08

Radical Policy Steps Necessary to Avoid a Systemic Meltdown: Interview with the Council on Foreign Relations

Nouriel Roubini Oct 7, 2008

Here is below the text of an interview with the Council on Foreign Relations; the interview took place on Sunday October 5th but the message and policy recommendations that I proposed to prevent a systemic financial and corporate sector meltdown are still very relevant as the Fed and other central banks are still fiddling while Rome is burning. As discussed in this Global EconoMonitor forum Friday and yesterday Monday radical policy action is urgently necessary to avoid a systemic meltdown and a severe economic depression. The global economy is now already in a recession (as GDP is now contracting in all advanced economies and sharply slowing down in emerging market economies). We need now to take steps avoid a global depression.

Read on...

Peacenik sees some good news here. Roubini is acknowledging that there are steps that can be taken to solve the problem. This is progress. So far governments seem to be flailing about. But Peacenik has a question. Is it plausible that the banking system in every western country seems to be in a state of crisis, but the Canadian banks seem not to be? What is Peacenik missing here?