… our economy is headed south. And not in a warm way either. With people like Treasury Secretary Tim Geithner, as recent as two weeks ago, saying “Welcome to the Recovery,” is it any wonder that the economy is headed in the exactly opposite direction? Or there is Federal Reserve chairman Ben Bernanke who didn’t even see the Great Recession coming and only now is saying that the economy is “unusually uncertain.” And lest we forget the economic ivory tower’s oracle Paul Krugman who, like Bernanke, saw no recession coming is finally speaking out about the possibility of a double dip.
Instead of listening to these morons whose policies got us in the whole in the first place, we should be listening to people like Egon von Greyerz. Although his predictions seem a bit too dire and catastrophic, they still hold a lot of truth. He starts with this,
No, there will be no double dip. It will be a lot worse. The world economy will soon go into an accelerated and precipitous decline which will make the 2007 to early 2009 downturn seem like a walk in the park. The world financial system has temporarily been on life support by trillions of printed dollars that governments call money. But the effect of this massive money printing is ephemeral since it is not possible to save a world economy built on worthless paper by creating more of the same. Nevertheless, governments will continue to print since this is the only remedy they know. Therefore, we are soon likely to enter a phase of money printing of a magnitude that the world has never experienced. But this will not save the Western World which is likely to go in to a decline lasting at least 20 years but most probably a lot longer.
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