Something really strange appears to be happening. All over the globe, governments and big banks are acting as if they are anticipating an imminent financial collapse. Here’s some of what is being said and is apparently happening. Words: 1200

So say articles by Reuters, Richard Duncan, Nigel Farage, Nouriel Roubini, Paul B. Farrell, Chris Martenson and others which are exerpted and commented on below in an article* by Michael Snyder (www.theeconomiccollapseblog.com).

Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!) and www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) has edited the article below for length and clarity – see Editor’s Note at the bottom of the page. This paragraph must be included in any article re-posting to avoid copyright infringement.

Snyder goes on to say:

Unfortunately, we are not privy to the quiet conversations that are taking place in corporate boardrooms and in the halls of power in places such as Washington D.C. and London, so all we can do is try to make sense of all the clues that are all around us….

Last week, it was revealed that the U.S. government has been secretly directing five of the biggest banks in America “to develop plans for staving off collapse” for the last two years. By itself, that wouldn’t be that big of a deal but when you add that piece to the dozens of other clues of imminent financial collapse, a very troubling picture begins to emerge.

• Over the past 12 months, hundreds of banking executives have been resigning,
• corporate insiders have been selling off enormous amounts of stock, and…
• a significant number of Wall Street bankers have been shopping for “prepper properties” in rural communities this summer.
• There have been reports that the U.S. government has been stockpiling food and ammunition, and that
• Barack Obama has been signing a whole bunch of executive orders that would potentially be implemented in the event of a major meltdown of society.

So what does all of this mean? It could mean something or it could mean nothing. What we do know is that a financial collapse is coming at some point.

• Over the past 40 years, the total amount of all debt in the United States has grown from about 2 trillion dollars to nearly 55 trillion dollars. That is a recipe for financial armageddon, and it is inevitable that this gigantic bubble of debt is going to burst at some point.

In normal times, the U.S. government does not tell major banks to “develop plans for staving off collapse” but, according to a recent Reuters article, that is apparently exactly what has been happening:

U.S. regulators directed five of the country’s biggest banks, including Bank of America Corp and Goldman Sachs Group Inc, to develop plans for staving off collapse if they faced serious problems, emphasizing that the banks could not count on government help.

The two-year-old program, which has been largely secret until now, is in addition to the “living wills” the banks crafted to help regulators dismantle them if they actually do fail. It shows how hard regulators are working to ensure that banks have plans for worst-case scenarios and can act rationally in times of distress.

Does it seem odd to anyone else that only five really big banks got such a warning – and why keep it secret from the American public? Does the federal government actually expect such a collapse to happen?

If federal officials do expect a financial collapse to occur, they would not be the only ones. An increasing number of very respected economists are speaking about the coming financial collapse as if there is a certain inevitability about it.

1. Richard Duncan, a former World Bank executive [said in this article posted on munKNEE.com]:

America’s $16 trillion federal debt has escalated into a “death spiral,” and it could result in a depression so severe that he doesn’t “think our civilization could survive it.”

A former World Bank executive is warning that our civilization might not survive what is coming? That is pretty chilling.

2. Economist Nouriel Roubini, says that he believes that the coming crisis will be even worse than 2008:

“Worse because like 2008 you will have an economic and financial crisis but unlike 2008, you are running out of policy bullets. In 2008, you could cut rates; do QE1, QE2; you could do fiscal stimulus; you could backstop/ringfence/guarantee banks and everybody else. Today, more QEs are becoming less and less effective because the problems are of solvency not liquidity. Fiscal deficits are already so large and you cannot bail out the banks because 1) there is a political opposition to it; and 2) governments are near-insolvent – they cannot bailout themselves let alone their banks. The problem is that we are running out of policy rabbits to pull out of the hat!”

3. Across the pond, many European officials are echoing similar sentiments. What Nigel Farage told King World News the other day is very ominous:

Nigel Farage described the possibility of, “a really dramatic banking collapse” warning that central planners want to enslave and imprison people inside of a ‘New Order’. He described the situation as “horrifying.”

The situation in Europe continues to get worse and worse. The authorities in Europe have come out with “solution” after “solution”, and yet unemployment continues to skyrocket and economic conditions in the EU have deteriorated very steadily over the past 12 months.

If all of that was not bad enough, there are an increasing number of indications that Germany is actually considering leaving the euro. Needless to say, that would be a complete and total disaster for the rest of the eurozone.

Of course there are any number of ways that the financial crisis in Europe could potentially play out but all of the realistic scenarios would be very bad for the global economy.

4. Meanwhile, our resources are dwindling, war in the Middle East could erupt at any moment and our planet is becoming increasingly unstable. The following is from a recent article by Paul B. Farrell on Marketwatch.com

Fasten your seat belts, soon we’ll all be shocked out of denial. Some unpredictable black swan. A global wake-up call will trigger the Pentagon’s prediction in Fortune a decade ago at the launch of the Iraq War: “By 2020 … an ancient pattern of desperate, all-out wars over food, water, and energy supplies is emerging … warfare defining human life.”

It is almost as if a “perfect storm” is brewing….Anyone that is watching what is going on in the world and is not concerned at all about what is happening is simply being delusional.

5. Recently, a team of scientists, economists, and geopolitical analysts examined the current state of the global economic system and according to Chris Martenson, one member of the team, “These systems could all implode at the same time. Food, water, energy, money. Everything.” going on to explain their findings, as follows:

“We found an identical pattern in our debt, total credit market, and money supply that guarantees they’re going to fail. This pattern is nearly the same as in any pyramid scheme, one that escalates exponentially fast before it collapses. Governments around the globe are chiefly responsible.

“What’s really disturbing about these findings is that the pattern isn’t limited to our economy. We found the same catastrophic pattern in our energy, food, and water systems as well.”

Hmmmm – it sounds like they have been reading The Economic Collapse Blog.

The truth is that a massive worldwide financial collapse is coming. It is inevitable, and it is going to be extremely painful.

What do you think about all of this? Please feel free to post a comment with your thoughts below.

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*http://theeconomiccollapseblog.com/archives/are-the-government-and-the-big-banks-quietly-preparing-for-an-imminent-financial-collapse  (To access the above article please copy the URL and paste it into your browser.)

Editor’s Note: The above post may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.

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