BARACKALYPSE: World Financial Markets, Economy on the Brink; Obama Says Good News Is That It’s Solvable; Collapse Chart
August 8th, 2011
Greg Hunter of USA Watchdog said it best: Brace for Impact.
Today is the day. Watching mainstream media (MSM) this weekend, you would think a one notch downgrade to America’s debt doesn’t really matter. For example, former CNBC anchor Erin Burnett said Friday night on CNN the downgrade was “already priced into the market.” The panel spoke as if the first U.S. debt downgrade in history was no big deal. To that I say, positively absurd!
Economist John Williams of Shadowstats.com has been warning for months about a sudden dollar sell-off. According to Williams, $12 trillion liquid dollar assets are held outside the U.S. (dollars and Treasuries). If the holders of these assets throw in the towel and cash out, there could be a severe dollar sell off. That could spike inflation, cause interest rates to surge and eventually plunge the country into a hyperinflationary depression, according to Williams
The kind of impact we are going to have will not be like flying into the side of a mountain. It will be the kind of crash that skids over land, clipping trees and buildings until the plane ends up wingless in a smoldering heap. I just hope the fuel tanks don’t ignite when the long rough ride is over.
Whether we fly into the side of a mountain or the fuel tanks ignite, the end result will be the same. We’re toast.
The White House, Tim Geithner, and those big-dollar investors (like Mr. Warren Buffet) who stand to lose billions will no doubt move to discredit the ratings agency. In fact, the spin and finger pointing has already begun: