Government And Banks Make Preparations For A Financial Collapse

(Michael Snyder)  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.  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.

Of course it is completely possible to misinterpret these clues, but sticking our heads in the sand is not going to do any good either.  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 I have been personally told that a significant number of Wall Street bankers have been shopping for “prepper properties” in rural communities this summer.  Meanwhile, there have been reports that the U.S. government has been stockpiling food andammunition, and 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.

For example, check out the following quote from a recent Money Morning article….

Richard Duncan, formerly of the World Bank and chief economist at Blackhorse Asset Mgmt., says America’s $16 trillion federal debt has escalated into a “death spiral,” as he told CNBC.

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.

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!”

Across the pond, many European officials are echoing similar sentiments.

What Nigel Farage told King World News the other day is very ominous….

Today MEP (Member European Parliament) Nigel Farage spoke with King World News about what he described as the possibility of, “a really dramatic banking collapse.”  Farage also warned that central planners want to enslave and imprison people inside of a ‘New Order,’ and 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.

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….

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.

Of course the historic drought that is ravaging food production in the United States this summer is not helping matters either.  Another summer or two like this one and we could be looking at a return of Dust Bowl conditions.

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.

Recently, a “team of scientists, economists, and geopolitical analysts” examined the current state of the global economic system and the conclusions they reached were absolutely staggering….

One member of this team, Chris Martenson, a pathologist and former VP of a Fortune 300 company, explains their findings:

“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.

“And 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.”

According to Martenson: “These systems could all implode at the same time. Food, water, energy, money. Everything.”

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.

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

  • Tom

    “chilling”, “absolutely staggering”, you sound like Diane Sawyer, the proganda front for the establishment. Can’t let us decide if something is “chlling” or “staggering” for ourselves?

    The bank prep sounds like the usual over-the-top government intervention into everything laely, justifying their existence and ensuring “it will never happen again” while something they are not focused on happens anyway.

    Pentagon self-serving scare tactics to justify their insatiable appetite for funding and creating chaos. The question is who wants al this stuff going on, a bunch of psychos in charge is who, humanity’s true nature is not to function like this, but we have always been controlled by the psychos.

    None of the above is “inevitable”.

  • It is really sad to read hundreds of articles and to confirm that most people writing about economy don’t have a clue (or pretend not to have) about the main cause of our problems.

    If we could only change one thing that should be the current monetary system scam. The creation of money by the (private) central banks as debt is the biggest scam in history. As long as money is created out of thin air as debt that governments must with interest (which is not created) we have no future. Period.

    If peole cannot understand this issue and refue to inform themselved abuot it they deserve Obama, Rommey, the jewish criminal network, the mossad doing 911, London, Madrid, Bali, etc.

    Watch the video “The money masters” and learn about the root of our problems.

  • cindy

    I HAVE AN IDEA! What if WE THE PEOPLE form our OWN CORPORATION! Do like the Ron Paul MONEY BOMBS and buy VALUABLE PROPERTIES OUT RIGHT WITH TITLE IN HAND!! NO bank loans! Buy the farm lands and land with quality water sources, wilderness property, ect. Then use REAL SUSTAINABLE TECHNIQUES TO GROW OUR OWN ORGANIC FOOD!

  • I’ve been expecting it for 40 years. The bible predicted it, and warned of what to expect and what the conditions would be. Jesus himself in Mathew 24 described the scenario we are facing today, and what the reprecussions will be. For those who don’t believe Gods warnings in the bible. You will have a hard time understanding what is happening, and most will blame God for their condition, whereas we are responsible, and created our situation. But we will blame God,anyway. Personally, since I know what is coming and who is doing it, I say ” Bring it on”. It just means Christ’s resturn is getting closer, and we are all only passing through this place…..

    • Anonymous

      Thanks Eric, thought I was the only one that reads the bible. Its true. It all in the bible.

      • neo

        I predict many of these “Christians” will commit suicide when they realize that the arab known as Jesus doesn’t come flying out of the clouds to kill people on their behalf. This is delusional thinking at best. Jesus the Arab born in 7 BC on April 16th never wanted to be worshiped, he wanted to spread the message about seeking the truth and therefore REALITY. The idea of being BORN AGAIN is to disassemble the lies perpetrated on us via socialization so that we can see reality as it is and not through some delusional belief system. This is very difficult and involves alot more than just talking to some sky god about how your sorry for your sins.

  • Mike Young

    Amen brother!

  • Mc

    Looks like the Mayan calendar is coming true, dec 21 2012.