Edge of a precipice

The worst disasters are the one that you do not see. All the people in the USA are looking at the crisis in the US -- they do not consider the possibility that catastrohe could cme frm an EXTERNAL SOURCE.

I believe that the UK could trigger a disaster well ahead of what people expect in the USA.

The future events I see are these.

MARCH 2010
- UK PM Gordo Brown will not cut spending.
- In late March, to try to be re-elected, he will hold a "Give away" budget.
- Sterling panic and UK Government intervention in the markets.
-- Likely downgrading of UK bonds.
- FIasco in the sale of Government stock for re-financing.
- UK Bonds plunge.
- UK Markets plunge triggering worldwide crash.
- US economists "taken by surprise"

APRIL 2010
- UK Election called.
- One or more banks in deep difficulty. Pension funds collapse.
- Gordo bails out more banks, pension funds, insurance companies with more state cash he does not have.
- Further run on sterling and UK Government stock.
- Finance for private companies becomes almost impossible.
- UNemployment skyrockets.
- Protests at newly unemployed and people who have lost pensions become violent.
- Refinancing becomes almost impossible for UK and US.

SUMMER AND BEYOND
- Gordo brings in quasi-martial law.
- Gordo says election not possible at moment due to civil disorder.
- Gordo goes to House of Lords which he has packed with LAbour lackies to seek delay of election.
- Calls for Tory leader Cameron not to walk out of Parliament.
- Tory Leader Cameron walks out of Parliament taking Tories with him.
- Parliament dissolved.
- Major rallies by Cameron the Tory leader.
- Gordo has Tory leader taken into "protective custody".
- Further rioting
- Full martial law in UK
- 5million unemployed in USA have their ui insurance run out.
- US suspends debt interest on debt "temporarily" for supposedly "60 days" or so
- Run on dollar and banks.
- Rioting in US
- US Pseudo-martial law introduced "regrettably"
- All out civil war in UK and USA develops
- Cameron dies mysteriously due to "ill health" or "accident" at home

Mod Edit: All Caps – Please Review This Link.

[edit on 2/20/2010 by semperfortis]

So what makes you think whatever happens in Britain has the slightest effect upon America ?

It would be more believable that the entire world economy hangs on the price of coconuts in Fiji.

Flag for you and this post is spot on. I think you may very well be correct. I hope that if this does happen Britain will rise to the role as leader in Europe again. When you see countries like France leading the way it makes my stomach turn. Britain should always lead Europe. If the don't Europe will fall into anarchy. This is personal opinion.

Originally posted by Silver Shadow
So what makes you think whatever happens in Britain has the slightest effect upon America ?

It would be more believable that the entire world economy hangs on the price of coconuts in Fiji.

The US banks and the British banks are totally intertwined. They don't call it the "Anglo-American model of capitalism" for nothing. All the big US banks and British banks have massive cross-shareholdings and are counterparties to each other in literally trillions of dollars of sketchy derivatives. If one of the big ones like Barclays or UBS goes then its the same thing, functionally, for the US as if Goldman Sachs or Morgan Stanley goes under. There is absolutely no difference and there is a seamless connection between the biggest Wall Street players and London. Tokyo and EU institutuions are also wrapped up in the mess but the ties between US and UK are the strongest.

reply to post by silent thunder

Like the economic saying:
"when America sneezes, Britain catches a cold".
And vise versa.

reply to post by aristocrat2


Well we shall see what happens in a few weeks. I hope your wrong, but my gut tells me there is a world of hurt coming down that few will escape. All one can do is try to prepare to soften the blow.

reply to post by aristocrat2


Hmmmmm....

The future events I see are these.

MARCH 2010
- UK PM Gordo Brown will not cut spending.
- In late March, to try to be re-elected, he will hold a "Give away" budget.
- Sterling panic and UK Government intervention in the markets.
-- Likely downgrading of UK bonds.
- FIasco in the sale of Government stock for re-financing.
- UK Bonds plunge.
- UK Markets plunge triggering worldwide crash.
- US economists "taken by surprise"

I should think Sterling would be more desirable than the Euro,
let alone in a panic situation...

after all the USA FED will keep the covert stream of cash & swaps going
even up to $1 trillion to aid the London half of the Atlantic money juggernaut.

APRIL 2010
- UK Election called.
- One or more banks in deep difficulty. Pension funds collapse.
- Gordo bails out more banks, pension funds, insurance companies with more state cash he does not have.
- Further run on sterling and UK Government stock.
- Finance for private companies becomes almost impossible.
- UNemployment skyrockets.
- Protests at newly unemployed and people who have lost pensions become violent.
- Refinancing becomes almost impossible for UK and US

? Your saying that the continent, with Germany & France in leadership positions, will be on the ascendancy while the UK goes down the drain?

good grief

reply to post by St Udio


Although the Sterling will not fare well against the Euro, the real impact will be to compare the US Dollar, the UK Sterling and the Euro against some currencies that will skyrocket in value, such as...

- Gold
- The Canadian Dollar
- The Norwegian Krone

Even the Botsawan Pound will look like a tower of value against the Sterling, the Euro and the US Dollar.

LEADING INVESTOR WARNS OF UK POUND GOING INTO A TAILSPIN

Billionaire financier Jim Rogers has predicted that the British Pound could completely collapse within weeks, sending shockwaves throughout the global economy and heralding the beginning of a downturn that would make the recent economic crisis look tame in comparison.

“Other currencies aren’t strong and the Euro has real problems, with cracks much wider than Greece beginning to show,” Rogers said.

“But it’s the Pound that’s most vulnerable. In real terms, it’s already devalued against virtually every currency barring the Zimbabwean dollar and it’s especially exposed over the weeks running up to the UK election. In a basket of currencies, the Pound is potentially a basket case. And that will put Britain in an extremely bad position for the shakedown.”

“The last few months have seen a ‘false bounce’, shorn up by massive short-term injections of government underwriting,” Rogers, the former business partner of George Soros, said.

“But it can’t last. We’ve been applying temporary sticking plasters, not long-term cures. Later this year we’ll see the start of the real recession, with more Lehman-scale disasters and a fallout which won’t stop until the underlying malaise is genuinely cured.” he added.

Rogers was quoted in a press release ahead of a keynote appearance at next month’s Global Trading Day seminar in Westminster along with investment advisor Dr Marc Faber and British trader Vince Stanzione.

Prominent Investor: Pound Could Collapse Within Weeks FOTR 340x1692

The British economy is facing a “double dip” after January figures put the idea of a recovery firmly on the backburner.

Rogers’ sentiments echo those of Swiss Bank UBS, which this week speculated that there could be a run on the pound if the government too aggressively tackles Britain’s huge deficit, projected to reach £178bn this year.

Last week, Sterling hit a nine month low against the dollar, falling to $1.05, and slumping beyond parity for the first time against the euro.

An announcement yesterday by Mervyn King, the Governor of the Bank of England, that the bank was ready to print more money and “do whatever seems appropriate”, sent the currency sinking once more.

Sterling fell sharply, from $1.5529 at 9.13am, just before King began speaking, to $1.5398 at 10.30am, when he finished giving evidence to MPs.

The stark downturn has led Jim Rogers and Marc Faber to predict a currency crash foreshadowing a full scale global “shakedown”.