Here Comes The Double Dip Pt. 4 (merged) Archived

[Armageddon]

Buckle up bitches

[eXpat]

Buckle up bitches

That´s a very good brief of the situation.
Nobel Laureate Says Globe Headed For Financial “Breakdown” and “Radicalism” (EWG, FXE, VGK, EUO, VWO)

Dominique de Kevelioc de Bailleul: The world is in the midst of a complete global economic “breakdown,” according to Nobel Laureate economist Paul Krugman, with the implications of political “radicalism” quickly brewing in Europe and the United States.

“We are living through a time where we face an enormous economic challenge,” Krugman told Russia Today (RT). “We are facing — obviously — the worst challenge in 80 years and we are totally mucking up the response.”

Traders of German Bunds and U.S. Treasuries agree and have sold PIIGS paper for other paper higher up on the food chain.
As a result, rates on Bunds and Treasuries have reached record-low levels Wednesday of 1.59 and 1.23 percent, respectively—levels that Dan Norcini of Jim Sinclair’s JSMineset.com said signals a Lehman-times-10 event around the corner. With Spain’s 10-year note spread higher by 520 basis points more than the yield on 10-year Bunds, a near-record level as well as depositors decidedly motioning into a trotting bank run on Spanish banks, Europe is again on the slippery slope to doom.

Krugman blames policymakers for the impending crash, fearing a replay of Nazi Germany as a result of a radical drop in standards of living on both sides of the Atlantic due to Germany’s (NYSEARCA:EWG) refusal to inflate the euro (NYSEARCA:FXE).

“We’re doing a terrible job. We’re failing to deal with it,” Krugman added. “All of the people, the respectable people, the serious people, have made a total hash of this. That is a recipe for radicalism. It is a recipe for breakdown.”

Forcing nations to swallow austerity contributed greatly to the rise of the Third Reich following severe reparations exacted upon Germany post-WWI—a mistake Krugman doesn’t forthrightly say in the RT interview, but may be inferred by his Jewishness, gleaned through numerous posts on his NYTimes Web blog and attributed to his notorious allegiance to a failed monetary system under intense fire from people of all nations affected by the crisis.

http://etfdailynews.com/2012/06/01/nobel-laureate-says-globe-headed-for-financial-breakdown-and-radicalism-ewg-fxe-vgk-euo-vwo/

[Armageddon]

The head of the World Bank yesterday warned that financial markets face a rerun of the Great Panic of 2008.

[Daniel_Plainview]

Rates on Bunds and Treasuries have reached record-low levels Wednesday of 1.59 and 1.23 percent, respectively—levels that ...signal a Lehman-times-10 event around the corner. With Spain’s 10-year note spread higher by 520 basis points more than the yield on 10-year Bunds, a near-record level as well as depositors decidedly motioning into a trotting bank run on Spanish banks, Europe is again on the slippery slope to doom.

Have your popcorn ready!

[Daniel_Plainview]

Looks like Japan is not too happy about the state of the economies in the US, China, Eurozone, etc.
Japan's Stock Mkt Suffers Worst Losing Streak Since 1975, Plunging to Depths Not Seen Since 1983

(Reuters) - Japan's shares fell sharply in early trade on Monday, with the Topix index falling to a more than 28-year low, as disappointing U.S. jobs data added to concerns over a slowing Chinese economy and a deepening euro zone debt crisis.

The broader Topix index lost 2.1 percent to 693.35, a level not seen since late 1983. Last week, it fell for the ninth straight week, marking its longest such run since 1975.

The Nikkei dropped 2.1 percent to 8,267.31 to a six-month low.

The Nikkei has fallen 19.4 percent since hitting a one-year high on March 27 on concerns over a deepening euro zone debt crisis and slowing global growth. If the benchmark were to drop to around 8,200, it would technically enter bear market territory.

"The investment sentiment is quite weak, so there's a possibility of a further sell-off. The Nikkei can go down more, that's a possibility," said Hisao Matsuura, equity strategist at Nomura.

"From a valuation view point, it is attractive, and investors almost seem to agree, but they don't want to buy now."

U.S. job growth braked sharply for a third straight month in May and the unemployment rate rose for the first time in nearly a year, raising the chance of further monetary stimulus from the Federal Reserve to support the sputtering recovery.

[Timo]

I know there's no way to predict the answer to this question, but what exactly could be/will be the event horizon for the collosal breakdown, or point of no return?

[Armageddon]

I know there's no way to predict the answer to this question, but what exactly could be/will be the event horizon for the collosal breakdown, or point of no return?

We are entering uncharted waters. IMO, one world government, one world currency and one one world religion is coming.

[Armageddon]

Goldman Cuts Q2 GDP Forecast To 2.0% Following Miserable Factory Orders

[Lore]

I know there's no way to predict the answer to this question, but what exactly could be/will be the event horizon for the collosal breakdown, or point of no return?

We are entering uncharted waters. IMO, one world government, one world currency and one one world religion is coming.

IMO, just the opposite. Fractured fiefdoms of economic stagnation controlled by a myriad of religious and political fundamentalists.

[eXpat]

I know there's no way to predict the answer to this question, but what exactly could be/will be the event horizon for the collosal breakdown, or point of no return?

Dangerous as it is to put a time-frame, this article http://www.zerohedge.com/news/big-reset-2012-and-2013-will-usher-end-scariest-presentation-ever (published above) says to expect fireworks by end 2012, beginning 2013. Sounds about right to me.

[pstarr]

I know there's no way to predict the answer to this question, but what exactly could be/will be the event horizon for the collosal breakdown, or point of no return?

We are entering uncharted waters. IMO, one world government, one world currency and one one world religion is coming.

IMO, just the opposite. Fractured fiefdoms of economic stagnation controlled by a myriad of religious and political fundamentalists.

I more inclined to go with the fractured fiefdom model of decline, ala "Road Warrior" I always found the "1984"/"Hunger Games" central-control-model just kind of paranoid. It takes too much effort/money/energy to control entire populations for long. There are easier ways. Check out the Republican Party/Fox news for tips and hints.

[Lore]

Rome tried it. It didn't work. Welcome to the Dark Ages, part 2.0.

[pstarr]

Rome tried it. It didn't work. Welcome to the Dark Ages, part 2.0.

right on.

[SeaGypsy]

I know there's no way to predict the answer to this question, but what exactly could be/will be the event horizon for the collosal breakdown, or point of no return?

Dangerous as it is to put a time-frame, this article http://www.zerohedge.com/news/big-reset-2012-and-2013-will-usher-end-scariest-presentation-ever (published above) says to expect fireworks by end 2012, beginning 2013. Sounds about right to me.

The problem is not Government debt per se. The real problem is that the $70 trillion in G10 debt is the collateral for $700 trillion in derivatives…
Yes, that equates to 1200% of Global GDP and it rests on very, very weak foundations

Pretty scant on detail. Ok so there is a collapse going on, so everyone is going to stop printing money? We all know that derivatives feed a lot of our expectations of the future, have been unrealistically projected and reality (mainly in the form of expensive oil) is now a swarming mass of white pointers shredding a bloated corpse of a whale. The social contract(s) are going to have to be completely re-written; we can already see the unrest this is beginning to cause. So far since peak we have essentially seen a world in denial of the fundamental constraints provided, with an MSM projection that this is all a numbers game failure. Peakers have known that the vast majority of projected social contract will be forced to void, a central tenet of peak oil theory.

"They" will keep printing money and doing business with 'Somebody'. There is no option. Tough luck if you happen to be depending on a government (or even private) pension. Tough luck if you are a mainstream investor. However, my bet is the 'new system' Paul alludes to in this article, is not fundamentally different from what is on the news most nights/ State powers under threat from various forms of civil uprisings, struggling for legitimacy, pushing crowds off the street with batons and water cannon/ a few smoke grenades and rubber bullets/ some selective arrests: interrogations. More of the same.
More broken social contracts leading to more civil resistance leading to movement towards totalitarian methodology of social control.
More bogus excuses to keep printing whatever amount of currency is required to keep the game going to the satisfaction of the 1%.

As far as collapse goes, it's still early days, very interesting times.

[Timo]

I hate to combine two different threads here, but i can't help but wonder why it's so damned important to both the Dems and Repubs that THEY ALONE should be in the driver's seat when the whole thing goes down! In my book, let the other guy take the fall! I wouldn't want to be the one left holding the bag, responsible for the Disintegrating Republic.

[Serial_Worrier]

According to Saint Krugman, all we need is trillions in stimulus and everything will be just fine.

[Cog]

According to Saint Krugman, all we need is trillions in stimulus and everything will be just fine.

Yep to a Keynesian, you can never print enough money.

[pstarr]

I hate to combine two different threads here, but i can't help but wonder why it's so damned important to both the Dems and Repubs that THEY ALONE should be in the driver's seat when the whole thing goes down! In my book, let the other guy take the fall! I wouldn't want to be the one left holding the bag, responsible for the Disintegrating Republic.

Yup. It's all partisan BS to folks who don't have the imagination or means (as in $) to do anything about their predicament. This site has definitely gone downhill. No one talks about peak oil anymore because they are AFRAID TO TALK ABOUT PEAK OIL.

Not surprising given that most folks are all stuck in a retail-consumer shopping ghetto . with no chance of escape. I wouldn't want to face the truth either.

[Daniel_Plainview]

22,257,647 Households on Food-Stamps, Breaking All-time Record; 46.4 Million People in Poverty

In March a total of 46,405,204 persons were at or below poverty level and thus eligible for foodstamps, a 79K increase in the month. ... At 22,257,647, the number of US households receiving the "SNAP treatment" rose to an all time high...

[Daniel_Plainview]

America's Transition To A Part-Time Worker Society Accelerates As Part-Time Jobs Hit Record

Back in December 2010 Zero Hedge was the first to point out what is easily the most troubling characteristic within America's evaporating labor force: its gradual transition to a part-time worker society. We elaborated on this back in February when we noted that the quality assessment of US jobs indicates that this most disturbing trend is accelerating. Finally, yesterday, the BLS' latest jobs report confirmed that our concerns have been valid all along: as of May, part-time jobs just as disclosed by the Bureau of Labor Statistics hit an all time high, over 28 million!



These are people who traditionally have zero job benefits, including healthcare and retirement, and which according to the BLS "work less than 35 hours per week." In other words, as little as one hour per week of "work" is enough to classify one a part-time worker. More disturbing: the increase in part-time jobs in May compared to April: 618,000, or the fifth highest on record. It gets better: when added with the 508,000 increase in part-time jobs in April, this is the largest two month increase in part time-jobs in history. Which means of course that full time jobs in May must have declined: sure enough, at a -266,000 drop in full time jobs, the quality composition of the NFP report was just abysmal and makes any reported "increase" in those employed into a sad farce.

This is really sad. The "quality" of US jobs has substantially deteriorated, such that most of the new jobs being added are part-time/temp jobs with zero benefits and zero job stability. I guess people are just happy to have any job at all, whether as a part-time burger flipper, or a temporary liposuction operator.