“Market Shock” Coming This Fall: UK Telegraph Sources

By Dominique de Bailleul

“I think we are heading for a market shock in September or October that will match anything we have ever seen before,” an unnamed source at a major European bank told the U.K Telegraph, Friday.

With the fear of, yet, more war—especially with Iran, a likely spark for WWIII —liquidity-trapped central bankers, political squabbling within German and between eurozone members over the fate of the euro, solid evidence of a global economic catastrophe lurking, and a nasty U.S. presidential election between two grotesque candidates nearing, any hopes of consumer spending or capital formation to come to the aid of an insolvent banking system has already been thoroughly discounted in the price of the bank stocks.

And of course, it was the smart money skipping town during the two-year-long phony ‘rebound’, leaving the inevitable ‘act II’ of despair to the retail investor and captured institutionals as the usual bag holders.

“A more severe crash than the one triggered by the collapse of Lehman Brothers could be on the way,” according to the Telegraph journalists, Harry Wilson and Philip Aldrick.

Contrary to the paid cheerleaders of U.S. economy, no one is in the mood to commit to anything productive or able to consume the products (if he could) during the most tumultuous times since the Great Depression, leaving the middleman, the banks, with nothing to do.

“The problem is a shortage of liquidity – that is what is causing the problems with the banks.  It feels exactly as it felt in 2008,” a senior London-based banker told the Telegraph.

Whether the problem is a shortage of liquidity or an abundance of banks with an overabundance of bad assets, several very big banks are on the brink of failure—again.  And all the banker insiders know who is who, and who isn’t going to make it unless the money printing and bailouts increase more rapidly—and soon.

This time, the world’s no. 1, 5 and 10 ranked European banks (by assets) are in trouble, with combined assets totaling $7.6 trillion.

“Credit default swaps (CDS’s) on the bonds of Royal Bank of Scotland (no. 10), BNP Paribas (no. 5), Deutsche Bank (no. 1) and Intesa Sanpaolo, among others, flashed warning signals on Wednesday,” stated the Telegraph.

The article goes on to quote that the CDS rates on RBS paper reached record highs, Wednesday, surpassing the spike premium paid during the height of the global financial meltdown of October 2008.

So, ‘act II’ of the global financial crisis is about to begin, just as George Soros had warned.  According to Soros’ SEC 13-F (ending Jun, 30), the billionaire insider reported selling all of his fund’s banking sector shares, and showed his appetite for holding gold increased markedly.

Therefore, the question doesn’t appear to be whether the Fed will be there to save the U.S. banking system (it will), the question is whether the ECB will be allowed to copycat the Fed.  We’ll know on Sept. 12, when the German high court rules on the constitutionality of participating further in eurozone bailouts.

And a further question is: when will the central banks overtly announce more easing?  Will the ECB (assuming Germany somehow gives it the green light) and the Fed wait for something to ‘break’ before acting, or will the central bankers preempt the inevitable collapse?

We’ll find out in September and/or October.  In the meantime, there are always the black and gray swans of war (or something out of the blue) to further complicate any expectation of a direction to these markets.

Source: UK Telegraph

Gerald Celente: My Bones Tell Me This Thing is Coming Down Fast

By Dominique de Kevelioc de Bailleul

“The world is headed for the Great Depression, Greatest Depression,” Trends Research Institute Founder Gerald Celente tells Lew Rockwell, Tuesday.  “This will be much worse than the 1930′s Depression.  We’re in the global age, and it’s spreading globally.”

Celente goes on to explain that, depending upon the estimates one uses, the Fed has injected between $18 trillion and $25 trillion to prop up the “too big to fails” and the “corrupt banking system.”

And the result?  Nothing but poor unemployment numbers, according to him, including 750,000 more jobs lost since March to offset any alleged gains in employment reported by the U.S. Department of Labor so far this year.

After all those trillions of dollars thrown into the system, there is no recovery.  “America is turning into a plantation economy,” says Celente.

Just as the Great Depression of the 1930′s ushered in high crime rates, alcoholism and suicides, today’s start of the “Greater Depression,” according to Celente, already reveals a nation repeating the social ills of a past economic nightmare.

“Look at the crime rates.  Look at the insanity that is happening,” says Celente.

“Every day you pick up the newspaper.  You listen to the television,” Celente continues.  “Whether it’s the Batman psycho, the Sikh crazy guy, or some guy walking into a hospital room and  blowing his wife to pieces, or killing a mother-in-law and two kids, every day is another chapter in cold blood.  Society is unraveling around us.”

And the craziness isn’t just a U.S. phenomenon; it’s global.

In Israel, Spain and Greece, the same thing.  Four Israelis set themselves on fire within one month from terrible despair.  The Spanish are “attacking supermarkets.”  Greece is throwing out immigrants; “that society is falling apart,” he says.

“Are we going into war?  Is history repeating itself?” Celente ask rhetorically.  “Play back the tape.  The Crash of ’29—Great Depression—currency wars—trade wars—world war.  The Panic of ’08—Great Recession—currency wars are happening.

“The rial is sinking; the rupee is in the toilet; the euro’s going down.  There are bank runs now in Slovenia.  In Hungary, the system has collapsed . . . They just had another recall election in Romania.”

Celente goes onto to say that Argentina has instituted capital controls.  After soaring growth, Brazil now worries about its economy and currency.  And China, the nation which once provided hope of a global recovery, has reported several months of data that show its economy isn’t immune, slowing to a rate not seen in two decades.

So, “is the world at war?  Yes, it is,” says Celente.  “World War III is on the horizon.  Actually, it’s at the cusp.”

He adds, “And I believe we’re facing another 9-11 moment of some sort.  Whether it’s false-flag [or] real.  Whether it’s economic or geopolitical, something in my bones is telling me that you better be prepared now, because this thing is coming down fast.”

What to do?  Celente recommends Americans follow the “Celente 3G’s”: Gold, Guns and a Getaway Plan.

Gold to protect your wealth.

Guns to protect you and your property.

And a Getaway plan in the event of social unrest, riots, civil war, martial law or any unforeseen catastrophic event.

Gerald Celente: EU Collapses in 90 Days, Bank Holiday and War

Twenty-two months of hysteria of an impending European financial collapse, starting with Greece in March of 2010, will finally come to an end in 2012, according to the founder of Trends Research Institute, Gerald Celente. Sign-up for my 100% FREE Alerts

Hysteria of the horrid possibility of a European meltdown and the dire implications for the world economy a collapse implies will end, as the event finally turns into unequivocal reality by April 1, with accusations of ‘fear mongering’ by a significant portion of the mob quickly dropped in favor of the next predictable reaction to the crisis: outrage against those who allowed the collapse.

“I would say, since I’ve been doing this work, over 30 years ago, I’ve never been more concerned than I am right now,” Celente told ABC, Australia.

In Celente’s latest forecast, titled, The First Great War of the 21st Century—Prepare, Survive, Prevail, he paints a bleak picture for 2012, predicting a worsening of class warfare that already wages within more than a dozen countries, from Tunisia, Egypt, Yemen, Syria, Bahrain and Qatar to the UK, Greece and Italy, which will eventually spread to eastern Europe/central Asia and more intensely in the United States.

But, what the world has seen so far is only a economic and social symptom of central bankers’ stop-gap remedies, haphazardly applied to the global financial crisis since its beginning in the U.S. and the fall of Bear Stearns in 2008.

After dozens of trillions of dollars thrown at a global solvency crisis with nothing but further deterioration to show for the money spent, some wonder if the world is about to slide still further into depression.

According to Celente, when the European Union falters from too much supply of debt coming due ($7.3 trillion from G-7 nations, see zerohedge.com) against the backdrop of sliding demand for more debt, the European domino will topple other dominoes, widening the global depression to include the world’s larger economies.

“If you live in Greece, you’re in a depression; if you live in Spain, you’re in a depression; if you live in Portugal or Ireland, you’re in a depression,” Celente said.  “If you live in Lithuania, you’re running to the bank to get your money out of the bank as the bank runs go on.  It’s a depression.  Hungary, there’s a depression, and much of Eastern Europe, Romania, Bulgaria.  And there are a lot of depressions going on [already].”

And as far as a Chinese riding in on a white horse to save the day, Celente said, it’s “highly unlikely. China has 1.3 billion people with a million problems . . . If the Europeans and Americans don’t buy a lot of crap, then the Chinese can make it and sell it to them.”

He continued to explain that China will then likely slow its imports of materials from countries which have been supplying mined product during the commodities boom, leading to a vicious spiral of increased unemployment and declining economic activity—a scenario strongly intimated by Dow Theory Letters author Richard Russell in his latest letter to investors (excerpts posted on King World News).  Russell, too, expects a steepening U.S. depression, with 25 percent unemployment in the America as his target at the bottom of the depression.

“This whole thing is connected,” Celente explained. “China isn’t going to have the money to throw around to losers anymore than loan shark would give a gambler who can’t pay his old debts back and has a bad gambling habit another loan to gamble . . . They [Chinese] have their own problems to deal with.”

How bad will the next leg down in the world economy likely to be?  Could Russell be right?  Celente believes a comparison with the 1930s is a good one.  He continued, “ . . . you can even listen to Christine Lagarde, the head of the International Monetary Fund, or I like to fondly call it, the International Mafia Federation—the loan sharks of last resort—even she’s saying what we’ve been saying now for three years about the parallels between the Crash of 1929, the Great Depression, currency wars, trade wars, world war.

“The Panic of ’08; you have the Great Recessions—Great Depressions going on.  Oh, by the way, real estate prices in the United States, they’re at a steeper decline than they were during the Great Depression.  Foreclosures continue to mount.  It’s taking people over 40 weeks, who lose jobs to find another job, and then finding one at a fraction of what they lost the old one at.”

And as history demonstrates, when horrible economics overwhelm a society, political leaders search for a means of generating national jingoism to redirect the angry mob.  That search for political safety usually turns to war.

“So then you look at the trade wars that they’re now talking about,” Celente said.  “And, as I said, when you add them up, you have the beginnings of a great war going on already.  Oh, and now, and now, they’re talking about, hey, we did such a great job in Iraq and Afghanistan, why don’t we bomb Iran?  Have you heard the presidential candidates of the United States, with the exception of Ron Paul, that all want to go to war against Iran?  So you can see where it’s going.

“You have psychopaths that have caused a lot of these problems that are giving the answers to how to solve them by adding more violence and criminality on top of old violence and criminality.”

Celente said the kickoff to a global meltdown and a call to war could “spiral out of control” some time “by the first quarter of 2012” as the European crisis worsens to the point of a crack up.  “There’s no way to bail out the European nations,” Celente said forcefully.

And the build up to social unrest, calamity and possible civil war can be seen a mile away, said Celente, who segued into another one of the trends he sees for 2012: Safe Havens (escaping the United States).

“They just passed a law in the United states, the National Defense Authorization Act (NDAA),” he said.  “It now gives the president the right to identify a person like me and call me a terrorist and that I’m against the government.  And the military can come and break down my doors—the military—and arrest me, charge me with nothing, give me no trial, no rights of habeas corpus, no jury, no judge, and they can kill me if they so choose, torture me; they can send me to any country around the world.”

Celente advises preparing now for a quick route out of the United States if a bank holiday (a prediction of his) is called.  The ramifications of a dollar devaluation aren’t clear, but an enacted NDAA, FEMA camp readiness and scheduled TSA checkpoint expansion plans suggest the U.S. may enter a crisis on par with the lead up to the U.S. Civil War of 1861-5. Sign-up for my 100% FREE Alerts

Also see BER article, Gerald Celente Forecast 2012, FEMA Prepares for Dollar Collapse