Leading Chinese Economist predicts the U.S. will have an economics crisis by August

Leading Chinese Economist predicts the U.S. will have an economics crisis by August

iphone.chinadaily.com.cn

"After the sub-prime mortgage troubles, public data show that the US government froze its toxic assets between 2009 and 2010," Wang, secretary-general of the China Society of Macroeconomics, an affiliate of the National Development and Reform Commission, told the China Securities Journal on Monday.

"But such toxic assets will not vanish by themselves. Traditionally, a standard financial derivative contract lasts for five years. So the toxic assets that triggered the sub-prime mortgage troubles
According to his calculations, the derivatives that are coming due this year and next year ar

(visit the link for the full news article)

An insightful article that uses the same logic some American economists like Peter Schiff, Jim Rodgers and others use. I am not one for fear mongering but I have done research that shows one of the biggest U.S. banks (J.P. Morgan) will default on it's silver contracts around the same time.

It is becoming clear that without QE3 the the dollar will spiral down, but with QE3 more countries will abandon the dollar and inflation will run rampant.

Peter Schiff has stated that he believes the U.S. will not make it to the next election at it's current pace.

Thoughts?

iphone.chinadaily.com.cn
(visit the link for the full news article)

Sounds good to me. Seems like every day I see headlines about how many billions of dollars of treasuries that the fed buys. www.marketwatch.com...

This has to end at some point. Its a dammed if you do dammed if you don't sorta thing. Part of me wishes that it would all just come down in flames, but as the father of a 1 year old its kinda scary.

Guess I better plant more of my garden. so far just 2 watermelon 2 cucumber and 2 bell pepper plants wont go very far. haha.

According to World Bank Dollar's Hegemony will end by 2025

The World Bank expects the U.S. dollar to lose its solitary dominance in the global economy by 2025, as the euro and the renminbi establish themselves on an equal footing in a new "multi-currency" monetary system. The shift will be driven by the increasing power and strength of emerging market economies, with six countries — Brazil, China, India, Indonesia, Russia and South Korea — accounting for more than half of global growth in 14 years. According to the World Bank report — released on Tuesday — emerging economies will grow at a rate of 4.7 per cent between now and 2025, a much faster pace than advanced economies which are expected to grow by 2.3 per cent over the same time-frame.

2020worldnews.blogspot.com...

I have serious concerns about the actual financial infrastructure of this country. Being that I am not any kind of expert on the matter, I am hoping I'm wrong.

Long story short, many of what I feel are hucksters (read "True Believers") say things will get better slowly and many people without axes to grind or stakes in the game are saying things are going from bad to worse and it's being covered up.

With the increase in military activity and the general malaise to war and international operations I see, most news doesn't bode well for our future in a free nation. Some people fight, some ignore it, some know nothing and like it that way, and some (like me) are just riding the wave as far as it'll take us.

Peace
KJ

I have been of the position that a major conflict will kick off before that happens. so I guess that might give us an insight into potential time frame for that to happen..

If the establishment allows another major economic crisis to evolve it'll kick up so much dirt that there will be no escaping the wrath of the electorate anywhere in the Western world.. and that is not something I feel the establishment can allow.

I can only see a major conflict giving the establishment enough emergency powers to protect themselves and their position while giving them the room to redirect the anger of the electorate onto someone else.

Personally I really would like to be wrong and would be happy to be laughed at as the village idiot as my partner and I each have 18 year old sons and I worry about their future..

reply to post by Skerrako


Nothing like stating the obvious after the fact. We hit our debt ceiling, and by August 2 the fed is predicting we will not have any cash left to make payments on things.

Good to see they are on top of the 8ball behind the curve though.

I have been wondering myself. Maybe the reason Huckabee uis not not running is because he does not want to waste the money when there may not be a next president. I have a bad feeling there will not be. Not at this rate.

reply to post by amatrine


Of course there will be a next president - your Chinese bankers will let you know who it is in due course!!

iphone.chinadaily.com.cn..." target="_blank" class="postlink">From the source...

"But such toxic assets will not vanish by themselves. Traditionally, a standard financial derivative contract lasts for five years. So the toxic assets that triggered the sub-prime mortgage troubles in 2007 were signed before July 2002." Wang explained that the explosive increase in the use of financial derivatives took place between 2005 and 2007. "Take credit default swaps as an example. Their total capitalization was at $920 billion in 2000. That snowballed, under loose lending conditions, to $6 trillion in 2004, and further increased to $62 trillion in July 2007," he said. According to his calculations, the derivatives that are coming due this year and next year are worth 10 times as much as the ones that caused the latest downturn and will deal a catastrophic blow to the global economy.

It seems that our sneaky Federal Reserve was able to create the illusion of stability with Quantitative Easing 1 and 2 but those derivatives didn't disappear.

Not sure if this will be the straw that breaks the camel's back; it never ceases to amaze me what schemes the Fed will come up with to put another band-aid on the problem....

Leading Chinese Economist is late, we been there for a bit.
But it will get worse before it gets any better.

reply to post by xavi1000

According to World Bank Dollar's Hegemony will end by 2025

I think much sooner than that, the dollar will not last until 2015 IMHO.

I remember reading somewhere that the completion timeline for the NWO was between 2014-2015, and from what we are seeing I'm inclined to believe that.

reply to post by Xcathdra

Nothing like stating the obvious after the fact. We hit our debt ceiling, and by August 2 the fed is predicting we will not have any cash left to make payments on things.

Good to see they are on top of the 8ball behind the curve though.

Do you honestly think the U.S. isn't going to raise the debt ceiling?

Originally posted by Xcathdra
reply to post by Skerrako

 

Nothing like stating the obvious after the fact. We hit our debt ceiling, and by August 2 the fed is predicting we will not have any cash left to make payments on things.

Good to see they are on top of the 8ball behind the curve though.

Never fear, maybe they'll just seize our retirement accounts. It could happen... shtf then?



www.gobankingrates.com...

Originally posted by Skerrako
reply to post by xavi1000

 

According to World Bank Dollar's Hegemony will end by 2025

I think much sooner than that, the dollar will not last until 2015 IMHO.

I remember reading somewhere that the completion timeline for the NWO was between 2014-2015, and from what we are seeing I'm inclined to believe that.

Hmmm, i think NWO guys are lot smarter than appear , they have PATIENCE , they will put one commercial on rfid chips on CNN and then they can wait for years ,reactions on people etc..they monitor globally human awareness ....they are building up EU 60 years now and is not completed yet .... they dont have problems with time ..they have one goal and time is not obstacle. I believe full NWO will be completed in 2030-2035 ..but they can change that though.

Trying to put your thumb on this reality is almost as illusive/volatile as today's stock market. There is so much hogwash being spewed by the MSM that it's hard to ascertain what might be going on. I tend to agree with you, Skerrako (or the Chinese, rather), that it is about to go down. I might be biased, as I am a holder of PM's and by nature, a believer in the ultimate failure of the FIAT system. However, even if I weren't a PM holder, as a daily reader of Zero Hedge and other economic news outlets, the writing is on the wall.

My fear, is that if JP Morgan Chase goes down, they will push for a bail out, which by now, I hope the American people stand up and say - FORGET IT. Actually, it is sick. If that were to happen, think about it, JP Morgan is allegedly a stakeholder in the Federal Reserve, which provides it FIAT money to rig the market, but will ultimately lose. As it does, the American people pay the debt of the Federal Reserve. the interest and on top of it, bail it out. How insane is that?

On a side note - if you ever catch the Glenn Beck show, lately he has been all about Israel and states that our relationship will be critical in the coming months. Not that his gloom and doom is anything new, but his allegiance and incessant pandering to Israel is suspicious, as though he is gathering support for taking sides. Marry that to the U.S. and its need to create wars to "stimulate" the economy, it seems feasible that the August/Fall timeline is possible.

But, who knows.

Originally posted by Skerrako
reply to post by Xcathdra

 

Nothing like stating the obvious after the fact. We hit our debt ceiling, and by August 2 the fed is predicting we will not have any cash left to make payments on things.

Good to see they are on top of the 8ball behind the curve though.

Do you honestly think the U.S. isn't going to raise the debt ceiling?

I hope they dont.. And if any reps from my state vote for it, I wont be voting for them in the next elections. We cant spend, nor can we tax our way out of this mess. We have to face facts, which is we are in trouble and there is no way out of it except to make radical changes with the way we think.

Einstein said it best -

“We can't solve problems by using the same kind of thinking we used when we created them.”

One of the ideas for exchange in raising the debt ceiling is to pass a constitutional amendment for a balnced budget. I like the idea, but it would be a minimum of 5 years before states would be voting on it since some state government legislatures meet once every 2 years.

We are broke... We cant keep raising the credit card limit... We cant tax our way out nor can we spend our way out.

Time to cut up the credit cards and decide once and for all what the Federal Government should be providing to the American people, and what we really must have, and what we dont need.

Until we get things in order, I think all foreign funding should be stopped and used to pay off debt we do have. Countries around the world have been complaining about US and our role as the worlds cop. Sounds like a perfect time to take them up on that criticism and let them play cop for a while while we fix things here at home.

reply to post by alyoshablue


Beck approaches conspiracy from a Biblical angle. Thats why he favors Israel. Its quite common among major Christian churches in America, due to the reading of Bible prophecies involving a worldwide alliance of nations attacking Israel in the "endtimes".

Beck also seems to hint that George Soros is the antichrist.

Its just who he is and his Bible belt listeners love it, not that there's anything wrong with that.

If you owe 200K in debt, and the dollar crashes, your debt is actually worth less. If the dollar crashes faster than your interest rate, dont even worry about paying off your debt. The value of your debt will start to crash significantly faster than the nominal value of your debt in USD.

I could be wrong, but i am no economist.

Hmmm August?

He's being a tad generous.

I give us till July.

We are falling apart from the inside and the "host" is about to explode. IMO.

(for the record, I am NOT a economist or financial person )