The Phaserl


Most People Cannot Even Imagine That An Economic Collapse Is Coming

by Michael Snyder, The Economic Collapse Blog:

The idea that the United States is on the brink of a horrifying economic crash is absolutely inconceivable to most Americans.  After all, the economy has been relatively stable for quite a few years and the stock market continues to surge to new heights.  On Friday, the Dow and the S&P 500 both closed at brand new all-time record highs.  For the year, the S&P 500 is now up 9 percent and the Nasdaq is now up close to 11 percent.  And American consumers are getting ready to spend more than 600 billion dollars this Christmas season.  That is an amount of money that is larger than the entire economy of Sweden.  So how in the world can anyone be talking about economic collapse?  Yes, many will concede, we had a few bumps in the road back in 2008 but things have pretty much gotten back to normal since then.  Why be concerned about economic collapse when there is so much stability all around us?

Unfortunately, this brief period of stability that we have been enjoying is just an illusion.

The fundamental problems that caused the financial crisis of 2008 have not been fixed.  In fact, most of our long-term economic problems have gotten even worse.

But most Americans have such short attention spans these days.  In a world where we are accustomed to getting everything instantly, news cycles only last for 48 hours and 2008 might as well be an eternity ago.

In the United States today, our entire economic system is based on debt.

Without debt, very little economic activity happens.  We need mortgages to buy our homes, we need auto loans to buy our vehicles and we need our credit cards to do our shopping during the holiday season.

So where does all of that debt come from?

It comes from the banks.

In particular, the “too big to fail banks” are the heart of this debt-based system.

Do you have a mortgage, an auto loan or a credit card from one of these “too big to fail” institutions?  A very large percentage of the people that will read this article do.

And a lot of people might not like to hear this, but without those banks we essentially do not have an economy.

When Lehman Brothers collapsed in 2008, it almost resulted in the meltdown of our entire system.  The stock market collapsed and we experienced an absolutely wicked credit crunch.

Unfortunately, that was just a small preview of what is coming.

Even though a few prominent “experts” such as New York Times columnist Paul Krugman have declared that the “too big to fail” problem is “over”, the truth is that it is now a bigger crisis than ever before.

Compared to five years ago, the four largest banks in the country are now almost 40 percent larger.  The following numbers come from a recent article in the Los Angeles Times

Just before the financial crisis hit, Wells Fargo & Co. had $609 billion in assets. Now it has $1.4 trillion. Bank of America Corp. had $1.7 trillion in assets. That’s up to $2.1 trillion.

And the assets of JPMorgan Chase & Co., the nation’s biggest bank, have ballooned to $2.4 trillion from $1.8 trillion.

At the same time that those banks have been getting bigger, 1,400 smaller banks have completely disappeared from the banking industry.

That means that we are now more dependent on these gigantic banks than ever.

At this point, the five largest banks account for 42 percent of all loans in the United States, and the six largest banks account for 67 percent of all assets in our financial system.

If someone came along and zapped those banks out of existence, our economy would totally collapse overnight.

So the health of this handful of immensely powerful banking institutions is absolutely critical to our economy.

Unfortunately, these banks have become deeply addicted to gambling.

Have you ever known people that allowed their lives to be destroyed by addictions that they could never shake?

Well, that is what is happening to these banks.  They have transformed Wall Street into the largest casino in the history of the world.  Most of the time, their bets pay off and they make lots of money.

But as we saw back in 2008, when they miscalculate things can fall apart very rapidly.

The bets that I am most concerned about are known as “derivatives“.  In essence, they are bets about what will or will not happen in the future.  The big banks use very sophisticated algorithms that are supposed to help them be on the winning side of these bets the vast majority of the time, but these algorithms are not perfect.  The reason these algorithms are not perfect is because they are based on assumptions, and those assumptions come from people.  They might be really smart people, but they are still just people.

If things stay fairly stable like they have the past few years, the algorithms tend to work very well.

But if there is a “black swan event” such as a major stock market crash, a collapse of European or Asian banks, a historic shift in interest rates, an Ebola pandemic, a horrific natural disaster or a massive EMP blast is unleashed by the sun, everything can be suddenly thrown out of balance.

Acrobat Nik Wallenda has been making headlines all over the world for crossing vast distances on a high-wire without a safety net.  Well, that is essentially what our “too big to fail” banks are doing every single day.  With each passing year, these banks have become even more reckless, and so far there have not been any serious consequences.

But without a doubt, someday there will be.

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28 comments to Most People Cannot Even Imagine That An Economic Collapse Is Coming

  • Rodster

    I can because to me 1+1=2. When you look at the Govt’s numbers and how they arrive at them. It basically boils down to how “figures lie and liars figure”. So to them 1+1=112. 😛

  • Eric

    Americants aren’t interested in living in positive future of peace and harmony. They are only interested in living in a world infested with war, disease, poverty, famine, football and honey boo boo. They are still in 100% complete denial. About everything. EVERYTHING!!!

    500 million is too many. They should just leave it to the animals who seem a lot smarter than the average human to me.

    • matt

      yes Eric..The animals have it right as they are just ‘being’

      we on the other hand are not content with just being..therefore we should be called ‘Human Doings’!! not beings!

      the ancient prophets who predicted end days were not Psychic.. They just had a good understanding of human behavior and mathematics thus were able to calculate how many generations it will take to destroy ourselves with our own ignorance! 1+1=ONE

      • Eric

        Interesting you say that Matt. The only time anybody calls me is when they want something from me or want me to do something or go somewhere. They can never just let me be or even ask how I am doing. They might ask but it is usually followed up immediately with pure narcissism.

        We all have psychic powers. Most just don’t bother as that requires putting the beer down.

        • Angel

          Eric/Matt, these people stay as busy as a beaver to keep their minds off of things that make them feel uncomfortable. Always running here, running there, yet doing NOTHING.

          Mental diversion, is all, and they cannot understand why folks like us just want to BE. It’s abnormal and incomprehensible to them.

          “What do you do all day, make bombs?” Yes, I’ve actually heard this before.

          • Eric

            Maybe we know the same people. Like a hamster on a wheel. They are never going anywhere. And yet, they are nosey and want to know what I am doing. I tell them, “it’s my PRIVATE business. Ask better questions.”

          • David from France

            Hello to you Angel and everyone on this thread.

            I don’t usually comment on the Internet, and this is my first ever comment on SGT report. But I don’t know, I just had to.
            I share the exact same feeling as you about the dark narcissism and the denial of this generation.
            It never ceases to astound me. “WHAT ARE THEY THINKING?!!” is what I keep wondering all day long 🙂

            This is why I love roaming from one alternative information site to the other, not only to gather information and better understand the situation we’re in, and where we’re headed to, but more importantly to meet – virtually – like-minded people. It helps me keep some sanity, and not become overly frustrated, because the feeling of difference and alienation can be overwhelming at times, when you seem to be the only one left with eyes to see, and ears to ear.
            But I guess all of you here have been there before.

            And also to tell you that you’re not the only one that loves just to BE.
            Yes, keeping growing up in understanding, of yourself and of the world, and keeping working hard on your shortcomings.
            But this is something absolutely out of reach for the sheeple.

            So don’t mind about the scorn or the nasty remarks you might get from them.
            Justice is still justice, even if it’s ridiculed.
            Truth is still truth, even if everyone chooses to ignore it.

            Each and every value in western society has been inverted.
            It is now headed to total collapse.

            • Angel

              Thanks for your input, David. Yes, all we can do is stick to our principles, take the high moral ground, and STAND FIRM.

              I, for one, will not compromise with such people if they try to shoot me down. I know my heart is in the right place, and it is their loss if they choose to take the course they take and attack anyone who takes a different course.

              All we can do is continue on amongst the foolishness and ignorance and see it for what it is.

              You said it, the values have been inverted, much like the cross itself.

              • David from France

                Thank you too for your answer.
                I already noticed from previous comments that you had the right outlook on this matter.
                I hope that you and I will keep on living up to those principles, even though it will take a lot!

                Although my conclusion may seem bleak, I believe there will be a way out of the coming collapse for people like us.
                As for me, my quest for justice, truth and light, led me to the source of them, and this is now where I want to reside, whatever it takes. But no matter anyone’s beliefs, I’m happy when I see someone that fights to resist the sprawling corruption, and stand for his high values.

                Anyway, this thing is just starting picking up speed.
                So I guess we’ll meet again on SGT report for the next silver gold / QE infinity big story 🙂

            • matt

              Hey David…WELCOME! yes SGT is one of the few sites I visit these days for information and converse a little with some thinking people who get it.

              Take care and best of luck

              • David from France

                Hi Matt. Thank you!
                Yes I’ve only known this place for a few weeks, but I’ve appreciated the news and the people here.

                I may come back and post a thought from time to time.
                I love the straightforwardness of american people on these topics 🙂
                Take care too.

                • matt

                  David..I’m Australian but don’t let that put you off..and we might as well be American by our consume habits, tv shows, warmongering to name but few elements. And then there is the small % of the people who get dragged along screaming and scratching our nails in the dirt who don’t want to be associated with the actions of our ‘leaders’..No doubt the same in France…except you have much better food! 😉

        • Steve_D

          Hey Eric, how’s things?

          Infact how is everyone doing?

    • Eric

      They’re not interested in doing any kind of serious thinking is what it really comes down to. That would be too difficult. Having to use what little gray matter they have left upstairs. Having to process a few bioelectrical synapses. Maybe they are afraid their head will explode. They should be questioning everything and asking questions and instead they ignore everything and burying their heads in the sand. It doesn’t make any sense. This really is the twilight zone.

  • Spud

    For the bottom line questions to any and all blogging about your opinions on what is wrong is this…

    When whatever evil truly happens will you yourself be a victim or be a victor?
    Do you have a self sustaining location in place?
    Will it provide a quality life without being co-dependent on the chaos of the times?
    Will it endure being tested?
    will you be caught cold, hungry and almost naked?
    will you be in a panic when grid support and public services go brown or black?
    will you basically have no life to have any quality with?
    will be fail the testing and perish only to rot in the open air?

    Comments are easy and cheap. Questioning everything makes one feel superior. However taking all the pro-active steps to address your concerns and what will transpire shows a much higher level of grey matter application.

    So…ask yourself… what is truly in my stack of stuff anyway or am I an arm chair fool?

  • Angel

    Snyder says: “So let us hope and pray that this brief period of false stability lasts for as long as possible.”

    Why? Why avoid the inevitable? The longer the illusion remains, the stronger it becomes, and the harder it is to shake. Isn’t this the VERY reason we’re in this mess? Always looking for the easy way out instead of taking the bull by the horns and dealing with WHAT IS, with all its unpleasantness?

    So long as the people have a myriad of fun bubbles at their disposal, they are clueless and wish to remain so. Willful ignorance, normalcy bias, cognitive dissonance, call it what you want.

    As a result, WHEN reality finally smacks them in the face and knocks them on their butt, it will be that much more difficult to arise from the blow, let alone function in a productive manner. Many won’t even try to get up, many will try but fall back down, and others will get up but lose their minds completely and enter zombieland.

    Only the “kooks”, the “extremists”, and the “tin foil hat wearers” have a shot at making it through to the other side semi-intact. It will be a classic “I told you so” moment, though something tells me there won’t be much of that talk around.

  • Troy

    It seems whatever we think will happen, the opposite happens. In 2011 we thought we would have hyper inflation, economic collapse, gold and silver to the moon. Maybe the economy will get stronger and stay that way for years…who knows.

    • Eric

      I don’t think so Troy. The debt will consume the system. We are still on course to oblivion. It’s just taking longer.

      Personally, I don’t see gold and silver going to the moon as likely as an emp event, everything shuts off and is gone forever, real stuff has real value. But yes, who knows.

  • WillyT

    If things stay fairly stable like they have the past few years, the algorithms tend to work very well.
    But if there is a “black swan event” such as a major stock market crash, a collapse of European or Asian banks, a historic shift in interest rates, an Ebola pandemic, a horrific natural disaster or a massive EMP blast is unleashed by the sun, everything can be suddenly thrown out of balance. For the past 6 years since the BLIP of 2008 the banksters and the governments have come out of this smelling like a rose. No offence against the alternative media, I am on your side. I call it a blip only because everything seems to have been fixed by TPTB.

    The very first line if things stay stable, what are you talking about STABLE??? Look at what’s happened in the past few years. Things are so far from stable it’s not even funny.
    It seems however the predictions do not change of the coming collapse, we the rational thinking people who know 1+! =2 have underestimated the slugs, the bottom feeders who control our society. We’re trying to protect ourselves against a not so certain future. We keep preparing for the next economic / financial crash. It’s disturbing to say the least when there is so much bad economic news, all the wars taking place, the cost of living is going ever higher, the stock market is at an all-time high, oh yes lets add Ebola to the mix as well. Debt is at an all-time high and this economy just keeps ticking away and all the predictions of a crash seems so unrealistic and far off into the future.

    You call that stable?? Perhaps the ones who read the alternative media have it wrong? Or is it just me who feels this way? It seems to me when you make all the rules you cannot go broke or default. Like a crooked bankster playing monopoly they never lose the game. Seems once it gets close to that, they change the rules. Why? Because they can, they are in charge. There are so many reasons why PM’s should be going higher that’s certainly evident’ however they are getting slammed, week after week month after month. Japan just unleashed the biggest QE ever which sent the stock markets higher. The American dollar is gaining again and you ask yourself WTF? It goes against anything that actually makes sense. Just truly bewildered at how this game is being played. And the economy is merrily ticking along on its way to Thanks-giving and Christmas and the sheep sound asleep and totally oblivious to anything else. Will good actually prevail over evil? Time will tell.

  • glitter 1

    Many of the Life/World changing events in History have seemingly come out of nowhere,many without warning what soever.There appears to be numerous events converging in the near future,just as with the announcement of a coming storm,the wise thing to do is prepare for the worst and hope for the best.I’m afraid that many will be caught unawares and totally flat footed.

    I posted this last week,I think it would be a good time to post it again:

    I just finished viewing Lindsey William’s latest DVD” Special Events Scheduled For 2015″.Per his Elite Connection(not his preditions).
    I know that many roll their eyes back into their head when they see/hear that name and that’s ok for those that think their own opinion is the final authority,but for those that have eyes to see and ears to hear here it goes:

    > The Elites expect a “Devine Intervention”,possibly a comet/asteroid/heavenly body crashing into the Atlantic Ocean creating an East Coast Flood.(my first thought was “Global Coastal Event”- Clif High,hmmm..)

    > There is going to be a Stock Market Crash.

    > There is going to be a Housing Market Crash.

    > There is going to be a Derivative Meltdown.

    > Big Bank Failures.

    > The Health Care System(Obamacare)will collapse.

    > There will be a Financial Collapse during September/October.

    > The price/value of Gold will sky rocket.

    These are the things “That Will Not Happen”(Not Planned To Happen)

    > There will not be Riots.

    > Gun confiscation will not happen.

    Lindsey made a point to say that The Elite(s) are not god(s),even though they may think they are.Even though this is their plan(s) and time table(s),dynamics of events could cause revision and changes to the plan,but these are the scheduled/planned events for 2015.
    He also pointed out that he is no longer doing interviews and requests that the DVD not be uploaded to the Internet(you tube).

    A Derivatives Convulsion from out of the blue could be all that is necessary to get the ball rolling.Like maybe a Crimex Silver Delivery Failure in December!If not,there are other eruptions bubbling just under the surface/out of sight wating for their queue.

    1Th 5:3 For when they shall say, Peace and safety; then sudden destruction cometh upon them, as travail upon a woman with child; and they shall not escape.

    Da 12:10 Many shall be purified, and made white, and tried; but the wicked shall do wickedly: and none of the wicked shall understand; but the wise shall understand.

    • AgShaman

      The “Elites” have no use for a pastor from Christianity, because they are members of the Cult of Saturn.

      Williams probably means well…and has no clue he is being “played” and is reeling in dupes at the behest of the brotherhood.

      • glitter 1

        “Williams probably means well…and has no clue he is being “played” and is reeling in dupes at the behest of the brotherhood.”

        Maybe,maybe not.I don’t think he is being played because his 35 year relationship with this retired ex-oil major executive isn’t like being invited to sit in on the 13 Grand Druid Council session or the 12 European Illuminati Fathers.It’s more like a friendship to someone who is privy to high level insider gab in the Country Club Locker Room. Kinda like a fly on a connected insider wall.Everything LW has conveyed for the last several years has happened as deliniated with one exception and that was the Middle East time table got pushed back since Syria didn’t go as thought/planned last year.
        Just to recap what his motive is,he’s not looking for notoriety or viewed as a prophet,he’s only purveying information he has been given and out of good conscience passing it along to those that would listen.
        Lindsey is no fool,he’s fully aware of who he’s rubbed shoulders with for those 35 years in Alaska.Any ways,that’s some list of crap if only half/third of it comes to pass.The Big Anchilada, as he stressed, is the September/October time frame for The Financial Collapse.In any event,2015 is coming at us,we won’t have long to wait.I doubt The White House or The MSM will be heralding any of it.

        • AgShaman

          That does not account for the compartmentalization that happens in the various orders….including the masonic structure.

          Is he selling these DVD’s?

  • Spud


    So what part of that or those predictions is bad news? None of them would effect us here in the northern Rockies 😉 In fact it would appear we would stand to make a huge profit.

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