Nobel Laureate Says Globe Headed for Financial “Breakdown” and “Radicalism”

By Dominique de Kevelioc de Bailleul

The world is in the midst of a complete global economic “breakdown,” according to Nobel Laureate economist Paul Krugman, with the implications of political “radicalism” quickly brewing in Europe and the United States.

“We are living through a time where we face an enormous economic challenge,” Krugman told Russia Today (RT). “We are facing — obviously — the worst challenge in 80 years and we are totally mucking up the response.”

Traders of German Bunds and U.S. Treasuries agree and have sold PIIGS paper for other paper higher up on the food chain.

As a result, rates on Bunds and Treasuries have reached record-low levels Wednesday of 1.59 and 1.23 percent, respectively—levels that Dan Norcini of Jim Sinclair’s said signals a Lehman-times-10 event around the corner.  With Spain’s 10-year note spread higher by 520 basis points more than the yield on 10-year Bunds, a near-record level as well as depositors decidedly motioning into a trotting bank run on Spanish banks, Europe is again on the slippery slope to doom.

Krugman blames policymakers for the impending crash, fearing a replay of Nazi Germany as a result of a radical drop in standards of living on both sides of the Atlantic due to Germany’s refusal to inflate the euro.

“We’re doing a terrible job. We’re failing to deal with it,” Krugman added.  “All of the people, the respectable people, the serious people, have made a total hash of this. That is a recipe for radicalism. It is a recipe for breakdown.”

Forcing nations to swallow austerity contributed greatly to the rise of the Third Reich following severe reparations exacted upon Germany post-WWI—a mistake Krugman doesn’t forthrightly say in the RT interview, but may be inferred by his Jewishness, gleaned through numerous posts on his NYTimes Web blog and attributed to his notorious allegiance to a failed monetary system under intense fire from people of all nations affected by the crisis.

For the first time since the creation of the Fed, for example, the majority of Americans now understand that the Fed is not a public institution, but an independent one.  “End the Fed” is almost as common a slogan today as “End the War in Vietnam” was during the presidency of Richard Nixon (1969-1975).

In Europe, at the tip of the spear between the Brussels globalists (by the American proxy, the Fed) and the people of Europe is Germany, where the political heat of rising nationalism and scapegoating of Arab and Turk immigrants, in particular, has emerged and reported by international press.

“No other religion in Europe makes so many demands. No immigrant group other than Muslims is so strongly connected with claims on the welfare state and crime,” best-selling author, former German politician and Bundesbank board member, Thilo Sarrazin, stated in German cultural quarterly Lettre Internationat of Sept. 2009.  “No group emphasizes their differences so strongly in public, especially through women’s clothing. In no other religion is the transition to violence, dictatorship and terrorism so fluid.”

And, May 21, 2012, Israel Business published a Reuters article about Sarrazin’s newly released book, Europe Doesn’t Need the Euro, within which, he argued that Germany is being blackmailed by the EU to bailout the PIIGS to make further reparations for WWII.

Germany’s globalists “are driven by that very German reflex, that we can only finally atone for the Holocaust and World War II when we have put all our interests and money into European hands,” he stated in his book.

Germany’s initial bailout of Greece shows Germany’s “susceptibility to blackmail”, Sarrazin wrote, suggesting that crimes committed by the Nazi Party will be asked to be repeatedly atoned.

“This politics is turning Germany into a hostage of all those in the euro zone who may in the future, for whatever reason, need help,” he stated.

Krugman believes the West may have reached a tipping point, not only in the sovereign debt crisis, but in the social order, as well.

“There are a lot of ugly forces being unleashed in our societies on both sides of the Atlantic because our economic policy has been such a dismal failure, because we are refusing to listen to the lessons of history,” he told RT.  “We may look back at this thirty years from now and say, ‘That is when it all fell apart.’ And by all, I don’t just mean the economy.”

Paul Krugman Whores for the Fed

“The conscience of a liberal” Paul Krugman once again demonstrates his role as Fed bitch.  Like a third-world young lady receiving an all-expenses-paid trip to a developed nation in return for a chance to ‘make a living’, Krugman must ‘put-out’ once in a while for the Fed syndicate who launched his stardom with the Norwegian Nobel Prize Committee.

New York Time’s latest talent hit the street with his latest summation of the outlook for the euro in an Op-Ed piece, dated May 17, titled, Apocalypse Fairly Soon.  There, he states with crocodile tears that he’s not “optimistic” about the euro’s immediate future.  It’s such a pretty currency; too bad it has AIDS.

“Suddenly, it has become easy to see how the euro — that grand, flawed experiment in monetary union without political union — could come apart at the seams. We’re not talking about a distant prospect, either,” Krugman writes. “Things could fall apart with stunning speed, in a matter of months, not years.”

Krugman knows quite well that a failed euro spells a hastened demise of an equally failed U.S. dollar, as every John who attempts a trysts with the American competition soon finds out he’s been ‘had’ by a ladyboy, posing as the real thing.

“Realistically, the only way to provide such an environment [of hope for Spain and Italy] would be for the central bank to drop its obsession with price stability, to accept and indeed encourage several years of 3 percent or 4 percent inflation in Europe (and more than that in Germany),” Krugman offers as a solution to the euro crisis—a solution of bondage to 300 million Europeans who seek to make an honest living without selling their bodies on the streets to pay a bunch of banker pimps.

But Krugman’s pitch is a devious one, in that, he seeks, not only a solution of collectivized inflation, but a solution that gives the Fed room to inflict the same monetary policies across the Atlantic in the U.S.  If Europe will debase the euro, the U.S. will, too, in a see-saw trading range between the world’s two most important reserve currencies.

In essence, the coke-head economist prescribes a theft of capital, savings and income from the virtuous so that the racketeering can survive another day—maybe decades—on both continents, representing nearly half of the world’s GDP.

But Krugman claims he has a “conscience,” that lovely tart who promises to “love you long time” kind of conscience.


conscience: the inner sense of what is right or wrong in one’s conduct or motives, impelling one toward right action.

“Think of it this way:” Krugman continues.  “Failure of the euro would amount to a huge defeat for the broader European project, the attempt to bring peace, prosperity and democracy to a continent with a terrible history.”

Democracy?  Tell that to Greece’s and Italy’s technocratic-led governments.

Prosperity?  Krugman’s neo-Ricardian model, infected with a common currency is, not only complicating a half-baked theoretical frame work for trade, it’s un-Democratic to say the very least—which brings us to his envisioned “peace” for the eurozone.

Maybe, if the Nurse Ratched approach of forcing an economic version of ‘busing’ in the eurozone could be rethought and untangled from the project’s real flaw (a common currency crossing sovereign borders), a more natural solution may emerge—like a Bretton Woods II.

A discussion along those lines, between Paul Krugman and former Bundesbank chairman Axel Weber, would provide some hands-on research work to fully-bake a sequel to Krugman’s book, Geography and Trade.  Maybe then Krugman might discover that people cannot be cookie-cut into formation to suit a global agenda, which is doomed to fail miserably for the same reasons a mutual understanding between Weber and a Woodrow Wilson School radical cannot be forged.

Top Russian General: Russia Defends World from Fascism

In a roundtable discussion aired by Russia Today, former member of the Russian Joint Chiefs of Staff Colonel-General Leonid Ivashov asserted that Russia must take over the roll from America of defending the world from Fascism—with the focus of that threat projected by . . . well . . . America.  Sign-up for my 100% FREE Alerts

Eerily reminiscent of a statement made by the head of the U.S. Consulate in Nazi Germany (1938), George S. Messersmith (1883-1960), America is today accused by foreign leaders of the very same political and military atrocities associated with Adolf Hitler and the Nazi Party in Germany more than 70 years ago.

In 1938, Messersmith stated:

The National Socialist regime in Germany is really based on a program of ruthless force, which program has for its aim, first, the enslavement of the German population to a National Socialist social and political program, and then to use the force of these 67 million people for the extension of German political and economic sovereignty over South-Eastern Europe — thus putting it into a position to dominate Europe completely.

With the signing of the NDAA on New Years Day by the U.S. Commander and Chief on top of a multi-year-long barrage of off-the-wall Homeland Security creeping roll out initiatives, politically offensive and oppressive Congressional legislation, bizarre presidential executive orders, FBI warnings of Constitutionalists turned Terrorists, invasions of nations under false pretenses, and now the threat of attack of more Middle east countries, it’s no wonder that a Russian general would come to the conclusion that America just might be that evil threat to the entire world.

Below, the transcript of Russian Colonel-General Leonid Ivashov (retired) on RT provided by MEMRI TV translation, uploaded on

Q: Dr. Leonid, do you think that these preparations and very large maneuvers, which will soon be conducted by Russia, are meant as preparation for war, or rather, a military strike against Iran?

A: These maneuvers and training will demonstrate Russia’s readiness to use military power to defend its national interests, and to bolster its political position.   The maneuvers will show that Russia does not want any military operations to be waged against Iran or Syria.

I assume that the people in the West and in Israel who design the schemes for a large geopolitical operation in the greater Middle East region draw a direct connection between the situation in Syria and in Iran.

Indeed, these two countries are allies, and both are considered guaranteed partners of Russia.  The only question therefore, is who they will try to destroy first a stable country: Syria or Iran.

A strike against Syria or Iran is an indirect strike against Russia and its interests.  Russia would lose important positions and allies in the Arab world.  Therefore, by defending Syria, Russia is defending its own interests.

In addition, Russia is thus defending the entire world from Fascism.  Everyone should acknowledge that Fascism is making strides on the planet.  What they did in Libya is nearly identical to what Hitler and his armies did against Poland and then Russia.  Today, therefore, Russia is defending the entire world from Fascism.

Several new media outlets on the Web suggested that the big news from the RT interview with the retired Russian general was his thoughts on what the Russian intentions would be in the Middle East if the U.S. or Israel attacked Iran or Syria.  The real news here is the public admission that Russia, maybe even a good part of the world, looks at America as the next Third Reich.

Apparently, a retired Russian general has no problem connecting the dots from actions taken by Washington through the years.  But, it appears that 49 percent of Americans cannot seem to connect the dots like an outsider, looking in, can.

According to a The Hill poll, 49 percent of Americans thinks it’s a good idea to attack Iran if the U.S. comes to an impasse with Iran regarding its nuclear energy program.

Would The Hill conduct the same poll, but this time replace Iran with North Korea?  Pakistan?  Both have plenty of nuclear weapons—right now.

Here’s what Winston Churchill said in Parliament in 1938, calling out Prime Minister Chamberlain’s policy of appeasing Hitler:

Many people, no doubt, honestly believe that they are only giving away the interests of Czechoslovakia, whereas I fear we shall find that we have deeply compromised, and perhaps fatally endangered, the safety and even the independence of Great Britain and France…. I foresee and foretell that the policy of submission will carry with it restrictions upon the freedom of speech and debate in Parliament, on public platforms, and discussions in the Press. Emphasis added.

Replace Winston Churchill with Ron Paul, and it’s ‘deja vu all over again.’  In fact, in this case, history doesn’t rhythm, as Mark Twain famously said, history has been outright plagiarized by a group of unimaginative hooligans.

Isn’t that what Vladimir Putin called Washington: a bunch of hooligans?

Vladimir Putin Thinks We’re Hooligans, economist Paul Krugman penned as a title in his blog entry of April 20, 2011.  He goes on to spew more economics voodoo and mythology as a retort to Putin’s comment regarding Fed profligacy.  But Krugman, known for his sophomoric political rhetoric, ends his post in a typical Krugmanism:

What’s really weird, of course, is the large number of U.S. analysts who are taking the side of China and Russia in this business. Why do they hate America?

It may have not occurred to Krugman that there were German citizens who actually hated the Nazi Party in the 1930s.  If he was living in Germany at that time, maybe he could answer his reckless question of today.  Isn’t Krugman aware of the weapon of U.S. dollar hegemony?  Didn’t France’s Charles de Gaulle warn of the potential abuse of a reserve currency held by a single nation?

Though, acting like a fool (or operative in return for Nobel Prize), Krugman’s liberties and childlike behavior must be protected as well.  And there is a man looking out for Krugman, whether the shameless economist likes it, or not.

That man, of course, is Ron Paul, who stunningly trails Mitt Romney in the Republican primaries with a message and warning of the exact same threats confronting Americans, today.

Russia, too, must wonder what’s happened to the American people, but cannot wait for the post-hibernation, begrudgingly taken on the role of resistance to the Fascist threat to the world once championed by America.

It is us today. It will be you tomorrow.

—Haile Selassie I, after the end of the Second Italo-Abyssinian War and the subsequent rise to power of Bunito Mussolini  Sign-up for my 100% FREE Alerts

Jim Sinclair applies Chaos Theory to Gold Price; Krugman loses Sleep

As a growing sense of a world about to turn upside down at any minute—and pretty hard, too—one has to wonder if much of the extreme political, social and economic events coming at us all at once from across the globe tie to the natural forces of a world desperately disentangling itself from the gross unfairness of a global economic model, its political systems contrived to enforce it, and the side-effects of its once-willing participants seeking justice through a the use of a new model now that the old one no longer works from them.

Those studied in such matters have already made the connection between the post-Bretton Woods era and today’s payback.  In fact, many have predicted the inevitable turmoil—but the sense (the underlying connection not yet made by many) that the world is about to change radically has finally begun to take hold of the mainstream, where it really matters.

“Markets usually do a pretty good job of coping with problems one at a time,” Oaktree’s Howard Marks wrote in a note to clients.  “When one arises, analysts analyze and investors reach conclusions and calmly adjust their portfolios. But when there’s a confluence of negative events, the markets can become overwhelmed and lose their cool. Things that might be tolerable individually combine into an unfathomable mess whose extent and ramifications seem beyond analysis.”

Isn’t what Mark describes a manifestation of a complex global financial model taking on a life of its own, as discussed in Nassim Taleb’s book, The Black Swan, which was inspired, in part, from Benoit Mandelbrot’s Chaos Theory?

But unlike the surprise fall of the Soviet Union in 1989, the collapse of the U.S. and Europe, along with the two regions’ 88% lock on global currency reserves, has, so far, played out in a most cruel and slow death.  But maybe that’s about to change.

According to JSMineset’s Jim Sinclair, the notion that the gold price has strayed too far from its 200-day moving average neglects to factor in Mandelbrot’s theories of the unpredictable nature of complex modeling outcomes.  Sinclair has said that the gold price has now moved into the “geometric phase,” taking a page from Mandelbrot’s work and applying it to the gold price.  If the $1,764 hold this year, Sinclair may also have his timing correct for the geometric phase, as well.

How many fat-tailed correlation plots of historical Treasury yields, money supply levels, debt-to-GDP ratios and a plethora of other broken relationships to the norm need demonstrating before other gold experts wake up to realize that the “new normal” mantra spewed on financial programs is the latest misdiagnosis of a condition that seeks to explain a malady that’s anything but normal.

But when feigned explanations for the rapid advance of the gold price from none other than the Sigmund Freud of economics, Paul Krugman, comes popping out in an early-morning exercise of free association during a bout of unexplained insomnia, you really know that overdue canary (U.S. economy) is never coming back out of that mine hole.

For more on this point, read Peter Schiff’s article, The Last Haven Standing

“The conscience of a liberal” still can’t find a conscience, it appears, and may explain his insomnia.

“Yes, it’s 4:30 a.m. where I am,” Krugman began his post.  “I found myself wide awake, thinking about gold prices. You got a problem with that?”

No, hard-money advocates don’t have a problem with that, Krugman.  But apparently, you have one.

Ever since Jim Sinclair, James Turk, Peter Schiff, James “Mr.” Dines and Richard Russell began losing sleep, too, over the inevitable fate of the U.S. dollar—back in 1999—readers rightfully discerned the authenticity and motive of these fountainheads of money theory by taking action to protect themselves from a debauched dollar way back then—and have since been sleeping very well.  And by the way, anyone who seeks to communicate with made-for-Princeton deterministic graphs, not only shows a lack of understanding of the possible applications of Chaos theory to global markets, but demonstrates an unwillingness to communicate to others outside of the Church’s cryptic language, too.  Maybe that’s a good thing.  Go back to sleep.

Think you’ve Missed the Gold and Silver Rally? Think again, says Marc Faber

Each time the two monetary metals reach new highs, calls for the end of the bull market in gold and silver come quickly and frequently.

At $500, $850, and ever since gold first cracked $1,000 per Troy ounce in March 2008, the gold price remained the focus of those paid to report a popular view among those firmly entrenched in a fiat paper system that’s rewarded them handsomely for two generations.

Those unencumbered by a financial system—a system that pays its employees “more than four times the average salary in the rest of the economy,” economist Paul Krugman wrote in 2008—make a living by developing a reputation for accurately appraising the current state of the vilified gold and silver market.  Otherwise, these unleashed analysts and money managers will no longer retain their flocks and fortunes.

One such tell-it-like-it-is investment manager is the publisher and editor of the Gloom Boom Doom Report, Marc Faber—who, as a side matter, says that the choice for the name of his report, Gloom Boom Doom, came about from his observations of changing investor sentiment during complete market cycles.

So, is it Gloom, Boom or Doom for the precious metals?  Faber rejects the notion of a precious metals market soon entering a “Doom” stage.

“If it [gold] were a bubble a lot of people would have gold.  The whole world would be trading gold 24 hours a day,” he told CNBC’s Joe Kernen. “But I don’t think it’s really a bubble. I think gold is maybe cheaper today than it was in 1999, when it was $252.”

The rise in the gold price (but more spectacularly, in the silver price) has been primarily driven by the Fed’s unprecedented easy-money policies, first, following the popping of the NASDAQ bubble in 2000, then again, much higher in price following the collapse of the financial system, starting in March 2008, with the fall of Wall Street broker-deal/investment banking firm Bear Stearns.

Not unlike most global pricing, the world’s traditional monetary metals are denominated in U.S. dollars, so a decline in the dollar’s relative value to world supply of precious metals lifts the price of gold and silver in dollar terms.

The future of the gold price is bright as long as Fed chairman Ben Bernanke continues a policy of negative real interest rates—when compared, that is, with the rising rate in living costs, Faber has repeatedly stated.

Even if the Fed followed last week’s European Central Bank’s (ECB) quarter-point interest rate hike, the competition for dollars between paper assets and tangible assets won’t tip the tide among investors in favor of paper assets, according to Faber.

“One day they [the Fed] will increase it [federal funds] by a quarter percent. But what does it mean when commodity prices are going through the roof, energy prices are going up, health care costs are going up, insurance premiums are going up?” he said.

Therefore, Faber posits that cash and debt will lose value relative to “commodities, real estate, art, collectibles and so forth, anything that essentially cannot be multiplied at the same rate as paper money, that is subject to the printing presses of Mr. Bernanke.”