SGM Metals: Dr. Doom "Perfect Storm Global Depression I Warned of is Officially Here"

July 11, 2012 - PRLog -- CNBC reports: [ "Dr. Doom" Nouriel Roubini says the "perfect storm" scenario he forecast for the global economy earlier this year is unfolding right now as growth slows in the U.S., Europe as well as China.

In May, Roubini predicted four elements – stalling growth in the U.S., debt troubles in Europe, a slowdown in emerging markets, particularly China, and military conflict in Iran - would come together to create a storm for the global economy in 2013. “(The) 2013 perfect storm scenario I wrote on months ago is unfolding,” Roubini said on Twitter on Monday.

Chinese inflation data released on Monday, suggested that the economy is cooling faster than expected, while employment data out of the U.S. on Friday indicated that jobs growth was tepid for a fourth straight month in June.

Roubini said that unlike in 2008 when central banks had “policy bullets” to stimulate the global economy, this time around policymakers are “running out of rabbits to pull out of the hat."

Policy easing moves by the European Central Bank, Bank of England and the People’s Bank of China last week did little to inspire confidence in global stock markets. “Levitational force of policy easing can only temporarily lift asset prices as gravitational forces of weaker fundamentals dominate over time,” he said.

Bill Smead, CEO of Smead Capital Management, agrees that there is little central banks can do to arrest the global slowdown.

Last week, he told CNBC that there is “virtually zero chance” that pump-priming by central banks will succeed, suggesting that policymakers should instead let the economic bust work itself through the system.]

“Mr. Doom” Nouriel Roubini, the establishment guy who is the corporate nay sayer to the recovery, the guy all the media outlets are approved to have on as a guest to play the part of the Federal Reserve antagonist who has gone against the grain and questioned the validity of the bailouts as well as the long term view of the US economy altogether has now come out and announced the end is near. Is he simply playing up his character creation by the corporate media or is he legitimately running down the street warning of the zombie bank invasion? I think it is actually a little bit of both, but what is important is that system needs (to avoid eventually being lynched by torch wielding peasants in the dark of night) to be able to say that they were always concerned that the economy may eventually fall apart, but they tried everything they could save the system.

Dr. Doom serves this purpose well for them in that he is the perfect guy to play this character role because of his credentials. He is always willing to speak about the reckless nature of the “solving the debt problem with even more debt” philosophy but never gets past the surface. He is never willing to point fingers to who exactly is behind these inflationary scams and more importantly who exactly is benefitting from these ludacris policies. He does just enough so that the establishment media is able to say that they hosted both sides of the recovery debate and each time the system falters they flash back to clips of him saying this could happen and take credit for warning you as you realize you just lost another 40% of your net worth as the most recent FED report illustrated for the average American families since the housing crash began in 2008.

US megabanks have been ordered to produce ‘living wills’ so that if & when the collapse finally happens regulators will be able to systematically liquidate the banks assets in an orderly fashion as to limit the collateral damage that will undoubtedly occur when they begin to unravel the almost $2 QUADRILLION derivatives bubble. The derivatives bubble will prove to be the spider web that spans the globe and will be responsible for the first domino to fall triggering the banking dominoes on all continents. The reason you are encouraged to create a living will as you prepare to ‘go under’ for a surgery is in the event that you don’t make it through the procedure your family will be able to effectively manage or dismantle your estate per your intentions and wishes even after you are gone. This will shed light on who all you owe money too and where the funds will come from to satisfy those debts. It also illustrates what investments you have and where your money is working for you (or being hidden) so that your loved ones can make decisions as to whether or not they leave these investments in play or restructure them to better serve those left behind. When this system is forced upon the banking system you had better realize there is a very real threat at the banks door and those in charge who are in the know, know exactly what is at stake should those banks “not survive the procedure”, or in this case survive the next economic convulsion.

As the DHS is purchasing millions and millions of rounds of ammunition to go along with their armored mobile check points and military grade vehicles we have to wonder if the government is under the impression that in the event of another major economic crisis if our weakened economic state will welcome invasion by foreign militaries? And if so, by who? They are obviously concerned about protecting our homeland, but is this a sign of just how bad they believe this may end up being? Banks have now established living wills in the event they are incapacitated in order to ensure an orderly liquidation while Dr. Doom is telling you the perfect storm he warned about is upon us. This would be a great time to establish your “Plan B” in physical gold & silver bullion in order to create your “what if the banks don’t survive the looming Lehman Bros. 2.0 crisis” insurance policy so that you can have some protection for your assets. Rest assured that the living wills more than likely stipulate that to stem the crisis of insolvency NO MONEY WILL BE ABLE TO LEAVE THESE INSTITUTIONS IN ORDER TO KEEP SOME LIQUIDITY ON THEIR BALANCE SHEETS and assets will be sold in order to INCREASE the base liquidity they have acquired by freezing deposits. This means your money could be used to serve the ‘greater good’ of protecting the depositors collectively (the bank itself) by being counted as the base liquidity upon which asset liquidation would expand to a point of comfortably being able to eventually green light customer cash withdrawals, but how much damage could be done by this point? If your assets are outside the banking system you need not worry about being drafted against your will to aid the banks in their desperate attempts to stay afloat. Furthering this point, if your assets are out of the system all together and instead of holding your life savings in fiat paper money you wisely removed yourself from the banking crisis collateral damage zone and transferred it into gold & silver you will be able to watch your net worth multiply with each new banking crisis as the dominoes begin to fall faster and faster. Tick, tock.