Is the Global Big Crash Just Weeks Away?

As I wrote in my post of last week, the biggest story in my humble opinion is what is going on with currency manipulations and the so-called “austerity” programs being rolled out in Europe.  Why do I consider these events so seminal?  Firstly, for many months now the “textural” landscape of the internet has contained increasing material related to future mass riots.

Secondly, I have previously reported on serious contingency plans and exercises conducted by the UN and more specifically, the US.  The 3rd Infantry Division’s 1st Brigade Combat Team has spent 35 of the last 60 months in Iraq patrolling in full battle rattle, helping restore essential services and escorting supply convoys. Now they’re training for the same mission — with a twist — at home. Beginning Oct. 1,2009, the 1st BCT is under the day-to-day control of U.S. Army North, the Army service component of Northern Command, as an on-call federal response force for natural or manmade emergencies and disasters , including terrorist attacks.  This new mission marks the first time an active unit has been given a dedicated assignment to NorthCom, a joint command established in 2002 to provide command and control for federal homeland defense efforts and coordinate defense support of civil authorities.

After 1st BCT finishes its dwell-time mission, expectations are that another, as yet unnamed, active-duty brigade will take over and that the mission will be a permanent one. “Right now, the response force requirement will be an enduring mission. How the [Defense Department] chooses to source that and whether or not they continue to assign them to NorthCom, that could change in the future,” said Army Col. Louis Vogler, chief of NorthCom future operations. “Now, the plan is to assign a force every year.”

Here is a scenario.  First, understand the markets are as much psychological as they are technical.  We are witnessing increased pressure on the working class globally and the economy is sputtering at best.  The fear is that frustrations boil over to active rebellion which becomes pandemic globally.  This results in governments over-reacting to the population and martial law is declared and many are interned in makeshift large detention centers.  I think that global events are unfolding right now that validate the scenario is unfolding rapidly, especially in Europe.  Last week the Members of Parliament from Iceland had to be escorted out of the back door of the assembly when confronted by angry citizens.  This type of unrest is erupting everywhere in Europe.  Consider these reports.

PARIS (Reuters) – French families, students and private sector workers joined mass demonstrations on Saturday as trade unions ramped up pressure on the government to drop pension reforms.  Opposition to President Nicolas Sarkozy’s plan to raise the retirement age to 62 from 60 showed no signs of abating and hundreds of thousands across the country marched in the fourth round of rallies in as many months

Unions said that about 2.9 million had marched, while police said the crowds numbered 899,000. The union figure was about the same as at the last demonstrations on September 23. The police figure was slightly lower.  About 230 protests took place across the country with a bigger turnout of families, who are less likely to protest on weekdays, and students as concerns about pension reform highlight a deeper anxiety about their future.

Until now the protests have been also mostly in the public sector but private sector workers including some from plane builder Airbus and national carrier Air France-KLM joined Saturday’s marches.  “We are a lot more today than during the week,” said Xavier Petrachi, a delegate at the CGT union in Toulouse. “It’s got a real family feel, buggies are out. France is protesting.”

The draft bill, a reform deemed unjust by unions but essential by Sarkozy, will be debated in the Senate — the upper house — from Oct 5.  A survey published by French daily newspaper L’Humanite showed more than 70 percent of people backed the day of action.  Trade unions across Europe are seeking to rally opposition as governments slash spending to dig their way out of debts run up during the global financial crisis.

The government says its legislation is essential to erase a growing deficit in the pay-as-you-go pension system, curb rising public debt and preserve France’s AAA credit rating, which enables it to borrow at low financial market rates.  French Labour Minister Eric Woerth late on Saturday told France 3 television the government still had to educate people about the reform, but it would not budge on its core.

The real issues here are that global employment will not recover to pre-crisis levels until 2015 if current policies are pursued, creating social tension, the International Labour Organisation has warned.

Riot police hit out at demonstrators during protests in Barcelona, Spain.

The United Nations work agency said it was putting back by two years from 2013 its previous assessment of the time needed to create the 22 million jobs still needed to regain the pre-crisis level – 14 million in rich countries and 8 million in developing states.  “Despite these significant gains … new clouds have emerged on the employment horizon and the prospects have worsened significantly in many countries,” it said.  Raymond Torres, lead author of the report, told a news conference that job losses since the crisis started had totalled some 30-35 million. The ILO has forecast global unemployment this year of 213 million, a rate of 6.5 per cent.

For the United States – where persistent unemployment has become one of the main issues in this November’s elections – the number of jobs still needed to regain pre-crisis levels is 6.9 million, Steven Tobin, ILO economist, said.   The extended loss of employment and growing perceptions of unfairness risked increasing social tension, the ILO said.  In 35 countries for which data exists, nearly 40 per cent of jobseekers have been without work for more than one year, running risks of demoralization and mental health problems, and young people were disproportionately hit by unemployment.   It noted that social unrest related to the crisis has been reported in at least 25 countries, including some recovering emerging economies.

In Germany, Chancellor Angela Merkel called for calm Friday after riot police used what critics called “Rambo” tactics to disperse thousands of opponents of a contentious rail project.  “I would hope that demonstrations like these would pass off peacefully,” Merkel told public broadcaster SWR after the skirmishes in the southwestern city of Stuttgart on Thursday that raged on into the night.   “This must always be tried, and anything that leads to violence must be avoided.”

Demonstrators said that more than 20,000 protestors, including more than 1,000 schoolchildren, were dispersed by close to 1,000 police in riot gear using water cannons, pepper spray, tear gas and batons.  More than 400 people including minors needed medical treatment, mostly because of the tear gas and pepper spray exposure.

In Ireland, taxpayers are being left with the bill and deeper austerity measures, but the government says the banks are too big to fail.  Overnight taxpayers learned they will be shouldering an even bigger burden to bail out the Anglo Irish Bank – to the tune of $41 billion.  “The banks have actually got us into this mess. They should actually get us out,” one person said.

“It is too shocking when you see people still on the side of the road homeless and yet there were these people smoking their big cigars and yachts out in the Mediterranean,” another said.  With unemployment at a record high of 14 per cent, Macdara Doyle, from the Irish Congress of Trade Unions, says citizens cannot afford the bailout bill.  “We started out at this place two years ago with what we were told was the cheapest bank guarantee or bank rescue scheme in the world,” Mr Doyle said.  “[It] then went to $4 billion. It is now at about $29 billion or $34 billion depending on what scenario you believe. It is not working. It is killing the economy.”

Irish finance minister Brian Lenihan says he understands the country’s frustration, but says this should draw a line under the taxpayer’s liability.  “The Irish people are entitled to be angry with the bankers who lent recklessly over a considerable period of time in the earlier part of this decade,” Mr Lenihan said.  Irish government borrowing was heading to 12 per cent of its annual economic output.
This will now treble; a third of the Irish economy will now go towards supporting its banks.

When you combine all of this intel with the gross lack of political will inherent in the congresses and parliaments of these countries, coupled with the “pressure” the financial communities are applying to the governments currently, November could be the month we will historically mark as the beginning of the great world collapse.

In the US we can sense the tensions building as more and more families are facing desperate situations.  The Tea Party is somewhat a barometer of that anger.  People are really pee’vd and they really don’t know what to do about it.  The fact is we really are all the same, whether you are Bill Gates, billionaire, or John Smith, McDonalds night manager.  We EACH GET ONE VOTE.  Get it? Be sure to do something about it. Get informed and vote. It has NEVER been more important globally than now.


Author: redhawk500

International business consultant, author, blogger, and student of life. After 35 years in business, trying to wake the world to a new reality. One of prosperity, abundance, and most importantly equal opportunity. it's time to redistribute wealth and power.

5 thoughts on “Is the Global Big Crash Just Weeks Away?”

    1. Thanks for your kind comments. I am simply trying keep the real stories in the public, since main stream media seems to be reluctant or is too dependent on corporate interest to report the truth.

      May You Always Travel in Peace

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