Rough Economic Warnings: U.S. & World Depression Loom Ahead

posted by Ida B. Wells IV @ 19:02 PM
January 28, 2014

Global-Economic-Crisis   Economists now warn that this country and the world faces an economic crisis on January 31st. In fact, this seething financial crisis already affects the U.S. and other nations.  Tightening strings at the Federal Reserve, falling stock market prices, horrid holiday sales and declines of major department stores––i.e. Sears and J.C. Penny––high unemployment, etc. have politicians here and abroad worried.

The Economic Collapse wrote yesterday: “This time, the Federal Reserve has created a truly global problem. . . . now that the Fed has decided to begin “the taper”, investors see it as a sign to pull the “hot money” out of emerging markets as rapidly as possible. . . This is causing currencies to collapse and interest rates to soar all over the planet. . . last week emerging market currencies experienced the biggest decline that we have seen since the financial crisis of 2008.

“If this continues, we will eventually see looting, violence, blackouts, shortages of basic supplies, and runs on the banks in emerging markets all over the planet just like we are already witnessing in Argentina and Venezuela.”

As Michael Snyder says in ‘The $23 Trillion Credit Bubble In China Is Starting To Collapse––Global Financial Crisis Next?,’ “ . . . financial institutions all over the world are warning that we could see a “mega default” on a very prominent high-yield investment product in China on January 31st? . . .

“ . . . this could lead to a cascading collapse of the shadow banking system in China which could potentially result in ‘sky-high interest rates’ and ‘a precipitous plunge in credit’.  In other words, it could be a “Lehman Brothers moment” for Asia. And since the global financial system is more interconnected today than ever before, that would be very bad news for the United States as well.”

Furthermore, Reuters News Service reports China may not pay its bills: “   The trust firm responsible for a Bank-of-Chinatroubled high-yield investment product sold through China’s largest banks has warned investors they may not be repaid when the 3 billion-yuan ($496 million) product matures on Jan. 31.” Forbes agrees:

“A WMP default, whether relating to Liansheng or Zhenfu, could devastate the Chinese banking system and the larger economy as well.  In short, China’s growth since the end of 2008 has been dependent on ultra-loose credit first channeled through state banks, like ICBC and Construction Bank, and then through the WMPs, which permitted the state banks to avoid credit risk.

“China is not the only place in the world where financial trouble signs are erupting.  Things in Europe just keep getting worse, and we have just learned that the largest bank in Germany just suffered ‘a surprise fourth-quarter loss’.”

Tyler Durden of Zero Hedge has been screaming declines were coming for months.  This week he wrote, ‘What Recovery? U.S. Retail Stores Now in Grim Death Spiral.’ He writes that both stores are closing thousands of stores and laying off scores of employees, and other retailers are not far behind.

How long did politicians think declining cities, declining retailers, hurricane and tornado ravished regions, etc. would not take its toll? Time is running out for them to considering taking better care of this country.  As Rev. Repriestly cries, “It is time for people to trust in God, not in the things of this world.” Used Christian books agrees:  “Some trust in chariots, and some in horses: but we will remember The Name of The LORD Our God (Psalm 20: 7).” Amen, and Amen!

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