In a previous article The price of theatrics I had stated “I fear that we will probably face another 2008 style crisis by the end of the year.” When it comes to statements like this I love to be wrong. Unfortunately it would seem that the so called experts are beginning to agree with me. Considering that Goldman Sachs has released an ominous report for institutional clients I would say we are on the verge of another financial crisis. As reported by The Wall Street Journal Goldman Strategist Alan Brazil states the following in the report “As much as $1 trillion in capital may be needed to shore up European banks. Small businesses in the U.S., a past driver of job production, are still languishing. China’s growth may not be sustainable.” Brazil went on to say “Solving a debt problem with more debt has not solved the underlying problem. In the US, Treasury debt growth financed the US consumer but has not had enough of an impact on job growth. Can the US continue to depreciate the world’s base currency?”
I’m no fan of Goldman Sachs, however when the mainstream begins to echo my own sentiments an economic collapse is just around the corner. Have no doubts that a maelstrom is approaching, and once you get caught in it you can’t get out. Unfortunately there is no way to save enough money to prepare. I predict serious hyperinflation which will literally make the dollar worth less than the paper it is printed on. You may want to hold on to your singles for heating fuel this winter.