Thursday , 25 July 2024

Goldman Sachs Privately Telling Clients to Bet on Upcoming Economic Collapse! (+2K Views)

In the report, Brazil says that:

  • the U.S. debt problem cannot be solved with more debt,
  • the European sovereign debt crisis is going to get even worse,
  • there are large numbers of financial institutions in Europe that are on the verge of collapse.

If this is what people at the highest levels of the financial world are talking about, perhaps we should all start paying attention.

There is a tremendous amount of fear in the global financial community right now…Things could start falling apart at any time. Most of these big banks will not publicly admit how bad things are, but privately there is a whole lot of freaking-out going on…Brazil believes that:

    • as much as $1 trillion in capital may be needed to shore up European banks;
    • small businesses in the U.S., a past driver of job production, are still languishing;
    • China’s growth may not be sustainable.

Perhaps most startling of all is what the report has to say about the debt problems of the United States and Europe:

Solving a debt problem with more debt has not solved the underlying problem. In the U.S., Treasury debt growth financed the U.S. consumer but has not had enough of an impact on job growth. Can the U.S. continue to depreciate the world’s base currency?

Remember, this statement was not written by “some guy” on the internet but by a top Goldman Sachs analyst who put it into a report for institutional investors…

Goldman Sachs thinks that it can make money off of the impending collapse in Europe. The following is how Business Insider summarized the advice that Brazil gave in the report regarding how to do so:

  • Buy a six-month put option on the Euro versus the Swiss Franc, thus betting the Euro will drop against the Franc (the Franc being the currency that an official Goldman report recently referred to as the most overvalued in the world)
  • Buy a five-year credit default swap on an index of European corporate debt—the iTraxx 9. This is a bet that some of these companies will default, and your insurance policy, the CDS, will pay off

This is so typical of Goldman Sachs. They will say one thing publicly and then turn around and do the total opposite privately just as they did prior to the financial crisis of 2008 putting together mortgage-backed securities that they knew were garbage and marketing them to investors as AAA-rated investments and then often privately betting against those exact same securities.

The amazing prosperity we have enjoyed for the last several decades has largely been a debt-fueled illusion. It was a great party while it lasted, but now it is coming to an end, and the aftermath of the coming crash is going to be absolutely horrific. Keep watch and get prepared.


Related Articles:

1. Jim Rogers: Situation to Worsen in U.S. and Lead to Social Unrest

You think the problems are bad now? You wait until we don’t have any more credit. You wait until the currency is collapsing. You wait until interest rates are going through the roof and inflation is going through the roof. It’s not going to be a pretty picture. There will be social unrest. [See below for the link to the interview.] Words: 477

Michael Spence, professor at New York University’s Stern School of Business and winner of the 2001 Nobel Prize in economics, believes there’s “probably a 50%” chance of the global economy slipping into recession. Noriel Roubini disagrees and says flatly that a recession is coming and that it is a mission impossible now to stop it. The Philadelphia Federal Reserve Bank places the odds at 85% of a recession. David Rosenberg, another very savvy economist, says that by 2012, the chance of a second recession is 99%. Peter Schiff, who with Roubini, correctly and accurately predicted the collapse on Wall Street and ensuing recession, thinks one is 100% certain. [Let’s take a look at why they hold such views.] Words: 829

James Turk, Director of The GoldMoney Foundation, interviewed Jim Sinclair recently at the GATA conference in London about his successful gold price predictions, the U.S. debt problems, how to ride the second phase of the gold bull and the gear change from arithmetic to exponential growth as public perceptions about the safety of the US dollar changes. Below is a heavily edited and paraphrased version of the interview to provide you with a fast and easy understanding of its contents. Words: 1318

Editor’s Note:

  • The above article consists of reformatted edited excerpts from the original for the sake of brevity, clarity and to ensure a fast and easy read. The author’s views and conclusions are unaltered.
  • Permission to reprint in whole or in part is gladly granted, provided full credit is given as per paragraph 2 above