NOURIEL ROUBINI JOINS GROWING NUMBER OF ECONOMISTS WHO SAY WE ARE SO SCREWED

Paul Krugman, Joseph Stiglitz and Nouriel Roubini are three of the best economists on the planet, with the first two having won Nobel prizes in their fields and Roubini best known for predicting the housing crisis of 2008 using the same data that I noticed independently as well. I knew almost to the day when things would go south and, having no background in the subject, was very impressed with myself, as were others who heeded my warning to put off house buying for at least a year. Those that didn't listen got burned, and badly.



The other thing these three have in common is their ability to see we are headed for a steep cliff and no one is at the wheel. Krugman is practically jumping up in down Tom Cruise style to warn us about the imminent failure of the Euro. Stiglitz has commented that the American dream is dead as we now finish second to last in upward mobility in the Western world, beating only hapless England. Now comes a recent article from Nouriel Roubini titled "Global Perfect Storm," in which he warns that total economic collapse will happen sometime in 2013. Funny how the MSM keeps telling me things as getting better, that recovery is right around that corner, when all reasonable evidence points to a Galactic sized clusterfuck.



Monday in Bloomberg News, Roubini said that the crash everyone has been trying to avoid is going to happen and there is nothing at this stage we can do about it. No later than 2013, probably sooner, the Ponzi scheme that is the global banking derivative market, will collapse and lead us into a Depression the likes of which we have never seen. This pattern has happened before, since the beginning of recorded history as a matter of fact. The people who control the money flow get greedy, overreach, and pay dearly. In every scenario, the bankers fare poorly, so those of you out there screwing us blue, remember that when the revolution comes, and it will, you are the first people the angry mob is going to be stringing up. And while this may lead to an Army crackdown, my sources within the military also suggest a high level of people going AWOL, as they will not support a totalitarian regime.

“Bankers are greedy; they’ve been greedy for the last hundreds of years,” said Roubini. “It’s not a question if they are more immoral today then they were a thousand years ago, you have to make sure they behave in ways in which you minimize those risks.

"One way of doing it is to separate activities, so you minimize the conflicts of interest,” he said. “Otherwise, this thing is going to happen over and over again.”

Roubini said the best start right now would be to begin criminal proceedings against anyone involved with bank scandals. Considering we just saw how LIBOR rates were being manipulated for hundreds of trillions of dollars, there should be plenty to convict some of the fuckwads on.

“Well, they [jail sentences] should occur, because no one has gone in jail since the global financial crisis for any of these things,” he said. “The banks do things that are illegal, at best, a slap you know, a fine. Some people will end up in jail, maybe that will teach a lesson to somebody. Yeah, or maybe someone hanging on the streets.”

Roubini goes on slam the media for promoting this recovery that is not happening, a view also echoed by Krugman and Stiglitz.

"Things have become worse, not become better,” stated Roubini, in direct contradiction to European parliaments and a worthless media here and abroad. “Nothing has changed.”


Yields on ten year Spanish notes is back above seven percent and both France and Denmark are selling Treasury bonds at a negative interest rate. This after the EU was "saved" for the umpteenth time by not actually fixing anything.

“Nothing has changed,” Roubini stated, again. "The summit was a failure and the ECB’s policy move to cut interest rates had no effect on the market, according to him. After the knee-jerk reaction of lower yields for Spanish and Italian notes of a week ago, the yields are back above the seven and six percent, respectively—a warning sign of another Greek-like sovereign debt collapse could be imminent if not attended to quickly."

"Unless a “bazooka” is deployed to the problem in the Eurozone," Roubini added, “you’ll have a worse crisis, not six months from now—you’ll have another bigger crisis in the next two weeks.”

Without a "debt monetization," Roubini said, the EU will not survive. Unless they can duplicate the FED here, and add FDIC protection to Eurozone bank accounts, the Euro will collapse. This "perfect storm" is unavoidable as the steps necessary to fix the problems are not even being discussed and this slow motion train wreck is going to pick up speed and derail very soon.

Roubini’s concerns, of which he sees trouble brewing:
1) Slow-motion or fast motion train wreck in Europe
2) U.S. economic stall to the next leg down in the Depression
3) China landing harder rather than softer
4) Emerging markets (BRICS) sharply slowing in growth
5) Geopolitical time bomb of war between the U.S., Israel and Iran.

These are the same five points made by LEAP last week when they issued their first ever red alert (much like myself a few weeks back I might add) about an imminent economic failure.

By 2013, chances are very high that the US/Israel will attack Iran, which will double oil prices overnight, killing the world economy and sending us into a deep Depression. The banks have run out band aids and now the whole dam is about to collapse. Roubini goes on to say the Eurozone will fail within five years, a good bet as austerity measures are killing their economy.

In the coming days, I will discuss ways to actually fix the problem. The main problem with it is finding brave souls willing to implement them.