GEAB N°57: Global Systemic Crisis – Fourth Quarter 2011, Implosive Fusion of Global Financial Assets!

• The world is entering a global economic, financial and monetary meltdown! It is burdened by a mountain of insurmountable debt. The crisis will detonate in the Eurozone, move to UK, Japan and finally to USA. All major currencies: Euro, UKP, Yen and USD will be toast. Minor currencies will not survive the hyperinflation onslaught! Got physical gold yet?
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  GEAB N°57 is available! Global systemic crisis – Fourth quarter 2011: Implosive fusion of global financial assets
  by http://www.leap2020.eu/ 
  As anticipated by LEAP/E2020 since November 2010, and often repeated up to June 2011, the second half of 2011 has started with a sudden and major relapse of the crisis. Nearly USD 10 trillion of the USD 15 trillion in ghost assets announced in GEAB N°56 have already gone up in smoke. The rest (and probably much more) will vanish in the fourth quarter of 2011, which will be marked by what our team calls “the implosive fusion of global financial assets”. It’s the two major global financial centers, Wall Street in New York and the City of London, which will be the “preferred reactors” of this fusion. And, as predicted by LEAP/E2020 for several months, it’s the solution to the public debt problems in some Euroland countries which will enable this reaction to reach critical mass, after which nothing is controllable; but the bulk of the fuel that will drive the reaction and turn it into a real global shock (1) is found in the United States. Since July 2011 we have only started on the process that led to this situation: the worst is ahead of us and very close!
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  In this issue N°57, we have chosen to address, very directly, the great manipulation organized around the Greek crisis and the Euro (2), whilst describing its direct link with the implosive fusion process of financial assets worldwide. Also in this issue, LEAP/E2020 presents its anticipations for the gold market for the period 2012-2014 as well as its analyses on neo-protectionism which will be introduced from the end of 2012. In addition to our monthly recommendations on Switzerland and the Swiss Franc, currencies, real estate and financial markets, we also present our strategic advice to the G20 leaders less than two months from the G20 summit to be held in Cannes.     
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  The politico-financial « perfect storm » of November 2011
   So, in November 2011 the United States will brace itself for a politico-financial “perfect storm” that will make the summer problems look like a slight sea breeze. The six elements of the future crisis have already come together (32):
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  . the “super committee” (33) responsible for deciding budget cuts on which there was no agreement this summer will prove incapable of resolving the tensions between the two parties (34)
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  . the automatic budget cuts required to be made in the absence of agreement will result in a major political crisis in Washington and increasing tensions, especially with the military and the recipients of social benefits. At the same time, this “automatic function” (a real abdication of decision-making authority by Congress and the United States Presidency) will generate major disturbances in the functioning of the state system.
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  . the other major rating agencies will join S&P in downgrading the US credit rating and diversification out of  US Treasury Bonds will accelerate, in the knowledge that the United States now depends primarily on short-term financing (35).
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  . the inability of the Fed to do anything but talk and manipulate stock markets or gasoline prices in the United States (36), now makes any last-minute “rescue” impossible.
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  . over the next three months the US public deficit will increase dramatically as tax revenues are now already in the process of collapsing under the impact of the relapse into recession (37). In other words the increased debt ceiling voted in a few weeks ago will be reached well before the November 2012 elections (38)… and this is information that will spread like wildfire in the fourth quarter of 2011 … reinforcing all investors’ fears to see the United States follow Euroland’s example over Greece and force its creditors to take heavy losses.
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  . Barack Obama’s new plan in the fight against unemployment will have no significant effect. On the one hand, it’s not up to the challenge and, for this reason, can’t rally the country’s energies; and on the other, it will be cut to pieces by the Republicans who will only keep the tax cuts… The only result of which will be to increase the country’s debt even more (39).    
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  So for LEAP/E2020, it’s a combination of all these elements at the end of 2011 that will trigger this major financial shock … a kind of final shock thrusting the planet out of the world before the crisis for good. But the world after is still to be built because many futures are possible, beginning 2012. As Franck Biancheri anticipated in his book, the period 2012-2016 forms an historical crossroads. One must try not to mistake the path (40)!   
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  …. for the full article click here!

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