Economist Richard Duncan: Civilization May Not Survive
'Death Spiral'
By Terry Weiss, Money Morning
Richard Duncan, formerly of the World Bank and chief economist
at Blackhorse Asset Mgmt., says America's $16 trillion federal debt has escalated into a "death spiral, "as he told CNBC.
And it could result in a depression so severe that he doesn't
"think our civilization could survive it."
And Duncan is not alone in warning that the U.S. economy may
go into a "death spiral."
Since the recession, noted economists including Laurence Kotlikoff,
a former member of President Reagan's Council of Economic Advisers, have come to similar conclusions.
Kotlikoff estimates the true fiscal gap is $211 trillion when
unfunded entitlements like Social Security and Medicare are included.
However, while the debt crisis numbers are well known to most
Americans, the economy hasn't suffered a major correction for almost 4 years.
So the questions remain: Is the threat of collapse for real?
And if so, when?
A team of scientists, economists, and geopolitical analysts
believes they have proof that the threat is indeed real - and the danger imminent.
One member of this team, Chris Martenson, a pathologist and
former VP of a Fortune 300 company, explains their findings:
"We found an identical pattern in our debt, total credit market,
and money supply that guaranteesthey're going to fail. This pattern is nearly the same as in any pyramid scheme, one that
escalates exponentially fast before it collapses. Governments around the globe are chiefly responsible.
This presentation shows how banks are escalating the collapse...
"And
what's really disturbing about these findings is that the pattern isn't limited to our economy. We found the same catastrophic
pattern in our energy, food, and water systems as well."
According to Martenson: "These systems could all implode
at the same time. Food, water, energy, money. Everything."
Another member of this team, Keith Fitz-Gerald, the president
of The Fitz-Gerald Group, went on to explain their discoveries.
"What this pattern represents is a dangerous countdown clock
that's quickly approaching zero. And when it does, the resulting chaos is going to crush Americans," Fitz-Gerald says.
Dr. Kent Moors, an adviser to 16 world governments on energy
issues as well as a member of two U.S. State Department task forces on energy also voiced concerns over what he and his colleagues
uncovered.
"Most frightening of all is how this exact same pattern keeps
appearing in virtually every system criticalto our society and way of life," Dr. Moors stated.
The work of this team garnered
such attention, they were brought in front of the United Nations, UK Parliament, and numerous Fortune 500 companies to share
much of their findings. Click on the short video above to see a sample. to see charts, facts, and details.
"It's a pattern
that's hard to see unless you understand the way a catastrophe like this gains traction," Dr. Moors says. "At first, it's
almost impossible to perceive. Everything looks fine, just like in every pyramid scheme. Yet the insidious growth of the virus
keeps doubling in size, over and over again - in shorter and shorter periods of time - until it hits unsustainable levels.
And it collapses the system."
Martenson points to the U.S. total credit market debt as an
example of this unnerving pattern.
"For 30 years - from the 1940s through the 1970s - our total
credit market debt was moderate and entirely reasonable," he says. "But then in seven years, from 1970 to 1977, it quickly
doubled. And then it doubled again in seven more years. Then five years to double a third time. And then it doubled two more
times after that.
"Where we were sitting at a total credit market debt that
was 158% larger than our GDP in the early 1940s... By 2011 that figure was 357%."
Dr. Moors warns this type of unsustainable road to collapse
can be seen today in our energy, food and water production. All are tightly connected and contributing to the economic disaster
that lies directly ahead.
Keith Fiz-Gerald: Germany's military held a secret investigation
into this unsustainable pattern and concluded it could lead to "political instability and extremism." Details here
According to polls, the average American is sensing danger.
A recent survey found that 61% of Americans believe a catastrophe is looming - yet only 15% feel prepared for such a deeply
troubling event.
Fitz-Gerald says people should take steps to protect themselves
from what is happening. "The amount of risky financial derivatives floating around the globe is as much as 20 times size of
the entire GDP of the world," he says. "It's unsustainable and impossible to unwind in any kind of orderly way."
Moreover, he adds: "People can also forget that the FDIC can
only cover a fraction of US bank deposits. It's a false sense of security. Just like state pensions, which could be suspended
at any time. A collapse could wipe out these programs. Entitlements like Social Security and Medicare are already bankrupt
and simply being propped up."
We can see the strain on society already.
In two years, Congress won't have any money for transportation,
reports the Washington Post. Cities like Trenton, NJ have layed off one-third of their police force due to budget cuts. And
other cities like Colorado Springs, CO removed one-third of streetlights, trashcans, and bus routes, reports CNN.
Fitz-Gerald also warns of a period of devastating inflation.
A recent survey, reports USA Today, notes that in the coming years it could take $150,000 a year in household income for a
family to afford basic living expenses - and maybe go out to a movie.
Right now, in fact, "52% of Americans feel they barely have
enough to afford the basics."
"If our research is right," says Fitz-Gerald, "Americans will
have to make some tough choices on how they'll go about surviving when basic necessities become nearly unaffordable and the
economy becomes dangerously unstable."
"People need to begin to make preparations with their investments,
retirement savings, and personal finances before it's too late," says Fitz-Gerald.
What The Experts Say: The team has released their investigation
to the public and for a limited time you can view a private airing of it online. Learn the steps you can take to prepare your
wealth, investments and way of life for this looming catastrophe. Click here to learn how some of the foremost experts in
the world recommend you position yourself for the uncertain time ahead. And receive a free copy Chris Martenson's ground breaking
book.
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