October 15, 2012
The global debt
crisis has reached a dangerous new phase. Unfortunately, most
Americans are not taking notice of it yet because most of the action is
taking place overseas, and because U.S. financial markets are riding
high. But just because the global economic crisis is unfolding at the
pace of a "slow-motion train wreck" right now does not mean that it
isn't incredibly dangerous. As I have written about previously,
the economic collapse is not going to be a single event. Yes, there
will be days when the Dow drops by more than 500 points. Yes, there
will be days when the reporters on CNBC appear to be hyperventilating.
But mostly there will be days of quiet despair as the global economic
system slides even further toward oblivion. And right now things are
clearly getting worse. Things in Greece are much worse than they were
six months ago. Things in Spain are much worse than they were six
months ago. The same thing could be said for Italy, France, Japan,
Argentina and a whole bunch of other nations. The entire global economy
is slowing down, and we are entering a time period that is going to be
incredibly painful for everyone. At the moment, the U.S. is still
experiencing a "sugar high" from unprecedented fiscal and monetary
stimulus, but when that "sugar high" wears off the hangover will be
excruciating. Reckless borrowing, spending and money printing has
bought us a brief period of "economic stability", but our foolish
financial decisions will also make our eventual collapse far worse than
it might have been. So don't think for a second that the U.S. will
somehow escape the coming global economic crisis. The truth is that
before this is all over we will be seen as one of the primary causes of
The following are 21 signs that the global economic crisis is about to go to a whole new level....
#1 Bank of Israel Governor Stanley Fischer says that the global economy is "awfully close" to recession.
#2 It was announced last week that the unemployment rate in Greece has reached an all-time high of 25.1 percent. Unemployment among those 24 years old or younger is now more than 54 percent. Back in April 2010, the unemployment rate in Greece was only sitting at 11.8 percent.
#3 The IMF is warning that Greek debt may have to be "restructured" yet again.
#4 Swedish Finance Minister Anders Borg says that it is "probable" that Greece will leave the euro, and that it might happen within the next six months.