The internet is full of articles like this one, but this world is so incredibly poised for collapse:
The Economic Collapse Blog
My cut and paste and editorial.
#1 War With Syria - U.S. Senator John McCain is now publicly calling for U.S. airstrikes against Syria. A military conflict with Syria becomes more likely with each passing day.
#2 War With Iran - A war in the Middle East involving Iran could literally erupt at any time. A Reuters news report that was issued on Monday said Israeli leaders have gone dark, meaning they’re out of the public eye.
#3 The Greek Debt Default you mentioned.
#4 An Economic Collapse In Spain - Spain has one of the largest economies in Europe and it is rapidly becoming a basket case. As I have written about previously, the unemployment rate in Spain has hit 19.9 percent, and the unemployment rate for workers under the age of 25 is up to 49.9 percent. Unfortunately, the situation in Spain continues to deteriorate.
However, the devolution in Spain is particularly troubling. The new fiscal compact had just been signed last week, which includes somewhat more rigorous fiscal rule and enforcement, when Spain's PM Rajoy revealed that this year's deficit would come in around 5.8 percent of GDP rather the 4.4 percent target. This of course follows last year's 8.5 percent overshoot of the 6 percent target.
The problem that for Spain is that the 4.4 percent target was based on forecasts for more than 2 percent growth this year. However, in late February, the EU cuts its forecast to a 1 percent contraction. This still seems optimistic. The IMF forecasts a 1.7 percent contraction, which the Spanish government now accepts.
#5 The Price Of Gasoline – The straits of Hormuz and all of that. Iran is being backed into a corner, where countries aren’t buying their oil and the sanctions are strangling.
#6 The Student Loan Debt Bubble - Just like we saw with the housing bubble, the student loan debt bubble just continues to grow and grow and grow. At some point the nearly 1 trillion dollar bubble is going to burst. What effect will it have on our financial system when that finally happens?
#7 State And Local Government Debt Crisis - It is being reported that California is running out of cash again and there are cities all over the country that are on the verge of bankruptcy . Could we see a significant municipal bond crisis in the next 12 months?
#8 The Collapse Of A Major U.S. Bank - A number of top U.S. banks are looking increasingly shaky. In a recent article, David Trainer explained why he has such serious concerns about Bank of America right now.
In my opinion, there are four actions taken by financial services that signal the company is headed to serious trouble.
1. Management shake-up and major layoffs - lots of layoffs over the past year
2. Exploiting accounting rules to boost earnings - SFAS 159
3. Drawing down reserves to boost earnings: to the tune of $13.3 billion in 2011 and 2012
4. Bilking customers with new fees: tried it before and trying it again
Bank of America has taken all four steps.
#9 A Derivatives Crisis - The International Swaps and Derivatives Association recently ruled that the Greek debt deal will not trigger payouts on credit default swaps. This is seriously shaking confidence in the global market for derivatives. But the global financial system simply cannot afford a major derivatives crisis.
See also the recent $2-3 billion dollar fiasco at J.P. Morgan, and the impact on consumer confidence.
Estimates of the notional value of the worldwide derivatives market range from $600 trillion all the way up to $1.5 quadrillion. The notional value of all derivatives held by Bank of America is approximately $75 trillion . JPMorgan Chase is holding derivatives with a notional value of approximately $79 trillion.
When the derivatives bubble finally bursts it is going to be a financial horror show unlike anything we have ever seen.
#10 The Fall Of The Japanese Economy - The Japanese economy shrank at a 2.3 percent rate, during the fourth quarter of 2011. Japan has a debt to GDP ratio of over 200 percent and a major debt crisis involving Japan could erupt at any time.
#11 A "Solar Megastorm" - Scientists tell us that there is a "1 in 8 chance " that a "solar megastorm" will hit the earth by 2014. A recent Daily Mail article detailed what some of the consequences of such an event would be.
'We live in a cyber cocoon enveloping the Earth. Imagine what the consequences might be,' Daniel Baker, of the University of Colorado's Laboratory for Atmospheric and Space Physics told National Geographic when asked about a potential 'megastorm'.
'Every time you purchase a gallon of gas with your credit card, that's a satellite transaction. You can't start your car with out electricity, or run your heat, a/c, go to the doctor - nothing.
'Imagine large cities without power for a week, a month, or a year. The losses could be $1 to $2 trillion, and the effects could be felt for years.
Notice what happened not long ago in New England when power was out for weeks, in some areas. Those who say no preparations are needed, are sadly mistaken (not necessarily telling you need a $400 million atomic missile proof bunker in Utah, but seriously wake up).
#12 A Major West Coast Earthquake Or Volcanic Eruption - On Monday, there was a 4.0 earthquake in San Francisco and a 6.1 earthquake in Argentina. Is the "Ring of Fire" waking up again? There have been devastating quakes all around the Pacific rim – Chile, New Zealand, Japan, but not in the U.S. West coast.
#13 Tornado Damage To Major U.S. Cities - Last year, the U.S. experienced one of the worst tornado seasons of all time. This year, we have already seen the worst tornado outbreak ever recorded in the United States in the month of March . A couple of towns in Indiana were completely wiped out, by that outbreak. So what should we expect when we get to the heart of tornado season this year?
#14 Severe Drought In The United States - Last summer was one of the driest summers on record in the United States, and in many areas there is simply not enough water available, for farmers this year. Some are even projecting that we could see "dust bowl conditions" return to some areas of the country eventually.
#15 An Asteroid Strike In 2013 - Although scientists tell us that the probability is extremely low, the truth is that there is a slight chance that a sizeable asteroid could hit the earth in February 2013. The asteroid is estimated to be between 60 and 100 meters wide, and it is projected to pass by our planet "at a distance of under 27,000 km ". If it did hit us (and scientists say that the odds of that happening are very low)
#16. The political polarization. Centrist leaders are dropping like flies in Greece and France and recently Indiana’s Dick Lugar, was displaced by a Tea Party candidate.
Polarization – creates combative people and this elevates emotions and leads to anarchy. (Not that I’m advocating a milk toast centrist position).
Let's go tell someone the good news. He loves us. He made us. He has endured for us. He's coming. We're leaving.