World Economic Collapse Inevitable
World Wire News
Renowned Funds Manager Predicts Global Economic Collapse
By Al Martin
(May 30) There was an interview on CNBC of the renowned funds manager
Julian Robertson. He is one of the greatest of the
old-timers. 53 years on the Street. He manages the Robertson group of
funds. They used to call him, still do call him
´Never Been Wrong´ Robertson. He has predicted every economic cycle,
every debacle, every bull market, and every bear
market. Of course, he´s a very old man now. But his reputation on the
Street is like nothing you could imagine. When the
segment of his interview was through, his comments alone took the Dow
Jones down 50 points. Just on his comments alone.
That´s how powerful this man´s reputation is.
Robertson was actually a teary-eyed, an old man. When Ron Insana asked
him about his predictions, he said that he´s worried
about the speculative bubble in housing and the fact that more than
1/4 of all consumer spending is now sustained by that
bubble, plus the fact that 20 million citizens could lose their homes
in a collapse of the speculative bubble in housing,
and that the Fed and, indeed, central banks worldwide would act in
concert out of desperation to reinflate the global
economy in the process, creating an inflationary spiral unheralded in
the economic history of the planet.
Insana then asks, "Where does it end?" And he said, "Utter global
collapse." Not simply economic collapse; complete
disintegration of all infrastructure and of all public structures of
governments. Utter, utter collapse. That the end is
collapse of simply epic proportion.
In 10 years time, he said, whoever is still alive on the planet will
be effectively starting again.
And the comments were so negative. I´ve never heard anything like it.
From a guy who was 53 years on the Street. This is
Julian Robertson, the renowned Republican. And yet he blamed
everything on ´the Bushonian Cabal,´ that the Cabal has now
consolidated power and money on the planet to the maximum extent
possible. That the planet´s net liquidity--that is, net
free cash flow--is now a negative number. That the planet is not
simply sinking into a sea of red ink; it is already sunk.
The people just don´t realize it yet.
The enormity of it was such that he said that the Bush-Cheney regime--
calls them ´the Bush-Cheney regime´ (I swear this guy
must listen to me)--the Bush-Cheney regime is preparing the nation for
transition from democracy into dictatorship because
a dictatorship will be necessary to control, not civil unrest. That isn
´t what he said. He said that it will be necessary
to control, in 5 years´ time, food and water riots.
He said the federal government, that part of Patriot II Act, the
internal exile, that the government is going to have to
build now huge detention compounds on federal lands, probably in the
West where the land is available, to potentially house
50 million or more citizens that will be in financial ruin.
Food production will fall. And any further effort to control
environmental destruction will be abandoned. Inflation will
run into the double and eventually triple digits. People will be
carrying around U.S. dollars in wheelbarrows like Germany.
And he finally ended his comments by saying that he hopes that he is
not alive to see this. And he looks at Ron Insana and
he said, "The ´lucky´ ones are the ones who are my age now."
Total collapse of public infrastructure. Total collapse of medical
care systems.
All public pension plans, Social Security will collapse. All corporate
pension plans will collapse. I´ve never heard
anything like it.
But he backed that up with some fabulous statistics that I have
pointed out before in various articles.
What he did is he did it all in literally one statement literally.
But, 14% of all real estate transactions now being
interest-only mortgages, and another 14% of people now, that, when
they bought their homes, originated more than 100% of
the purchase price in the mortgage and then borrowed further.
This was on the Ron Insana show on May 24, 2004. I mean, it was
absolutely extraordinary. And he had pointed out all that
we have pointed out before. What he talked about is he globalized it a
lot more than I have in the past by saying that the
American consumer is effectively now supporting the rest of the
planet, which is true; that consumption rates in all other
nations are falling, have fallen to the point that the tax revenues to
governments, that the business and industries those
nation states are providing is now a net negative number relative to
total debt service and public cost, that this exists
in virtually every nation state on the planet now.
And he pointed out, more importantly, and I´m trying to think how we
imply this or how we express this to the people, what
extraordinary times we are living in and how the destruction of the
planet has been engineered by the Bushonian Cabal from
1980 to 1992, and then from 2001 to present, which has effectively
destroyed the economic liquidity of the planet.
And it was absolutely extraordinary.
When Insana asked him, you know, he said he had sold all of his real
estate and he was moving into one of the new
super-secure compounds for wealthy Republicans for when the
´barbarians will be at the gate.´
He said, "Ron, those barbarians will be potentially a third of the
American population."
Ron asked, "What are your friends doing?"
The implication being wealthy Republicans. And, this is interesting,
he said everyone that he knew that had a home worth
more than a million dollars in the United States has sold it. They
have sold all of their landholdings. They have
liquidated all U.S. securities. They have bought a townhouse or
something in one of the new ultra-high secure semi-secret
Republican compounds with the barbed wire and the machine guns. And
then they also own a home, like, in the Cayman Islands
or somewhere in the Caribbean. He spoke of the new Republican high-
security compounds that are being built throughout the
Caribbean, and even in Switzerland.
And this is what he points to: He said the new wave, or where the
wealthy Republicans are going in their housing--and he´s
right. It tells you much about what the wealthy Republicans think of
where this planet is going: that they all want to live
in these ultra-high security communities that haven´t even been built
yet.
And we´re talking about not simply the guards at the gate. We´re
talking about communities the security of which have never
been built before.
He´s referring to is these new gated communities that are being built
with the 18-foot high walls and the
machine-gun-toting guards and underground food lockers, cryogenic food
lockers, and their own power plants, their own
water. But it bespeaks volumes of where the top 10% of the nation feel
the planet is going.
The only thing that keeps popping into my mind is - what is it going
to look like in ten years´ time?
What comes to mind is the final 30-second shot in the movie Rollover.
The famed movie Rollover with Kris Kristoferson and
Jane Fonda.
The final 30-second shot when the decision was made, when Hume Cronyn
is standing in his office in the Citi Bank building
in New York with its 30-foot vaulted ceilings and mahogany paneling. He
´s got the phone in his hand and he´s talking to the
group of bankers, the 13 Gnomes, he called them, in Switzerland, that
have the last remaining free cash flow in the world.
He says, on the telephone, "Pull the plug." Then he lights up a cigar
and pours himself a glass of brandy. And he looks
down on the street. He´s 20 floors up. It´s all plate glass window. It
was actually shot at the Citi Bank building. And he
looks down the street. It´s winter. December. Absolutely bitter cold,
3 feet of snow on the ground. And all is dark. The
power´s gone. No more power. Everything has begun to collapse. And the
wind, you hear this frigid wind whistling through
the canyons of the streets around Wall Street, which have become
canyons. And there´s a few people there in tattered rags,
with steel drums, burning stuff to keep warm. It shows them, they keep
dumping in U.S. currency to keep the fire going. And
then at the end it shows down between Wall and Broad, there´s like 2
or 3 hundred people, there´s a food riot in progress.
And Hume is sitting there looking out of his plate glass window with a
cigar in his mouth.
The very final scene: You see the food riots. Then you see the police
come in in these ultra-high-tech-looking riot
control, hover vehicles. They´re all black matte with dark red
digitized writing that says "State Security." And they start
gassing the crowd. And then it shows the Citi Bank executive
helicopter coming down on top of the 57th floor of the
building to pick up Hume. He gets in the helicopter. The pilot
actually asks him, "Where are we going?" And he said, "Oh,
to my executive compound." The pilot points in the front seat of the
helicopter and he said, "We have a case of the 1961
vintage Rothschild `61. Mr. Chairman, we secured an extra case for
you."
Then they fly over where the food riots are. And there´s no power. And
there´s trash blowing through the streets. And some
of the telephone poles have come down.
And they swing over the harbor and most of the boats are swamped or
sunk or all grungy. This is what Robertson´s words
reminds me of. ---
* AL MARTIN is an independent economic-political analyst with 25 years
of experience as a trader on NYMEX, CME, CBOT and
CFTC. As a former contributor to the Presidential Council of Economic
Advisors, Al Martin is considered to be a source of
independent analysis for financially sophisticated and market savvy
investors.
After working as a broker on Wall Street, Al Martin was involved in
the so-called "Iran Contra" Affair as a fundraiser for
the Bush Cabal from the covert side of government aka the US Shadow
Government.
His memoir, "The Conspirators: Secrets of an Iran Contra
Insider," ( [link to www.almartinraw.com)] provides an unprecedented
look at the frauds of the Bush Cabal during the Iran Contra era. His
weekly column, "Behind the Scenes in the Beltway," is
published weekly on Al Martin Raw.com, which also publishes a
bimonthly newsletter called "Whistleblower Gazette."
Al Martin´s new website "Insider Intelligence" ( [link to
www.insiderintelligence.com)] will provide a long term macro-view of
world markets and how they are affected by backroom realpolitik.
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> Insider," ( [link towww.almartinraw.com)] provides an unprecedented
> look at the frauds of the Bush Cabal during the Iran Contra era. His
> weekly column, "Behind the Scenes in the Beltway," is
> published weekly on Al Martin Raw.com, which also publishes a
> bimonthly newsletter called "Whistleblower Gazette."
>
> Al Martin´s new website "Insider Intelligence" ( [link towww.insiderintelligence.com)] will provide a long term macro-view of