Jim Willie: Next Financial Crisis Will Be 10 Times Larger than Lehman!

house-of-cardsFinancial analyst Jim Willie says there is no way the Fed is going to stop printing money or even “taper” it. He charges, “Everything is dependent on Fed support. They know if they take it away, they’re going to create a black hole. The Treasury bond is the greatest asset bubble in history. It’s at least twice as large as the housing and mortgage bubble, maybe three or four times as large.”
Willie goes on to say, “I think the Fed’s balance sheet is going to expand further, not contract.” As far as the gold price, Dr. Willie says what you are seeing now is not real. Dr. Willie says, “In order for the real gold price to reflect true value, we must shut down the COMEX. Don’t worry; they’re helping themselves to shut it down by keeping the price down and causing a fire sale around the world.”  Willie says a big upward move is coming in gold. What could be the trigger? Willie says, “It might be a default for gold delivery . . . at the same time that a big bank fails. I am hearing every single night there are three big banks that are running the risk of failure.”  Willie predicts, “If we have another repeat of Lehman, it’s going to be 10 times larger. It’s not going to be containable.

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Comments

  1. http://video.lefigaro.fr/figaro/video/les-manifestations-en-egypte-vues-du-ciel/2522325082001/
    Now this is a crisis. Imagine if Americans had the same zeal as Egyptians.

    • Proverbs…How did you find this clip?  You up all night watching Egyptian television news?  If you want to see protests here in the U.S., then all Congress needs to do is eliminate Obama phone subsidies or cut back on IRS conference spending.

    • Jim Willie!  Another great interview Doc!

      BTW I noticed that the Western Union by my house is not just buying scrap gold anymore they are actively buying SCRAP SILVER!!  Well for around $8/oz anyway…

      Is the bottom finally in?  Do the big boys at Western Union know something we don’t?

  2. Next unclear war will ruin the civilization of human, but when?

  3. BNN in Canada is trashing gold and silver every ten minutes now, and that is not a joke. Relentless attacks without any useful analysis backing the claims. Just SELL, SELL, SELL!
     
    This network used to be very gold, silver and miner friendly. Not so anymore, they are no better than the BlowHorn [CNBS].

  4. http://video.lefigaro.fr/figaro/video/egypte-les-manifestations-se-poursuivent-tard-dans-la-nuit/2519018435001/
    http://video.lefigaro.fr/figaro/video/egypte-avec-les-manifestants-anti-morsi/2521031206001/   Anti-MB Egyptians celebrating the army’s decision to side with them against the MB.
    http://video.lefigaro.fr/figaro/video/egypte-heurts-devant-le-siege-des-freres-musulmans/2235342349001/   Here anti-Morsi Egyptians attack the Muslim Brotherhood …
     
    America… you once had zeal. You once stood for your constitution. Will you let all that shed blood from 1776 until 2013 go to waste and let your nation get stolen from you? Egyptians are taking their country back from the Muslim Brotherhood.
    Oh, sorry, rising up might pull you away from your Xbox and American Idol and online porn addictions.
     

  5. I love JW, but I highy doubt that Barcleys, DB, and Citi are just going to fail, not gonna happen.  
    Number one, we would need a economic event to cause failure, so far the economy is holding up.
    The policy makers are aware of the danger of bank failures, they will be ready with loans, and QE programs, they will not let those banks go under.
    Delivery issues for gold?   I  believe it when I see it, it’s never happend before.

    • So why did they let Bear Stearns and Lehman go if it’s that easy to prevent a financial crisis and bank runs? 
       
      Do you ever think before you type. Just wondering. 

    • Bay of Pigs…I have a theory about Bear Stearns and Lehman that I’ll throw out for comment.  I think letting them both go early on in the Global Financial Crisis was the plan.  Seriously, these are smart men, evil to the core, and they knew this was coming.  They also knew they would need extraordinary power to cope with it(so they could steal more).  So, they took a couple shots for the team.  Result was incredible power has shifted to central banks allegedly to find a way out of this crisis.  Without Bear and Lehman going down, I don’t think the central banks would be enjoying the extraordinary power they now have(to loot, pillage and plunder).

    • Hey brainiac, Citi already failed once.

  6. Thanks UglyDog,  Bear Sterns and Lehman were choices, will they let DB fail?   No, Germany does not let their biggest bank go away, not gonna happen.
    What reason does JW give for the failures?  Bad assets?  Everyone already knows this fact, and yet no issue. Derivatives?   Well, once again big money already knows this, and yet no issue today. What changes the outlook?   Maybe a very deep recession/depression.
    They are ready for bailouts/ or bail-ins, or more QE, or loans.  The policy makers don’t want another 2008, so they have a plan if needed, it’s easier just to print money.

  7. Willie in audio interviews is so much preferable to Willie in print because he’s forced by circumstance to be succinct. I enjoyed that.

  8. IIRC, I read on this site that Dodd-Franks provides for TBTF banks’ protection against Derivative losses by the confiscation of bondholders, shareholders, and the “unsecured creditors” (deposits).  So then, the banksters riskiest bets have been laid off.  Thanks, Congress….really looking out for the taxpayer (oh, wait…depositors are taxpayers.)  Happy 4th!
    TB

    • Regardless of D-F legislation, there is not enough money in the world to “save” idiot banksters from themselves.  Over a quadrillion dollars worth of this financial sewage is oozing through the veins and arteries of the world banking system and sepsis is inevitable.  It cannot be saved because world GDP is about $70T annually.  So, $70T in GDP vs. $1200T or so in potential leveraged derivatives losses.  Well, gee… that’s only 17x the amount of world annual production.  There simply ISN’T that kind of money laying around to be grabbed.  Besides which, when the derivatives bubble pops, it could very well happen so quickly that the entire financial system will lie in ruins BEFORE any of the central banks can complete their 1st thought of, “Oh, Sh…”.  This event could be very much like a nuke going off.  Best way to fix it is BEFORE it goes off, not after.  So far, there is a lot of motion towards a fix but virtually no real progress.
       

  9. from what I have read about DBank, they are chock full of near worthless derivatives and hundreds of billions in DDD— rated with neg outlook PIIGS debt.  Their deposit base is thin and their equity leverage is probably 50 to 1.  One good puff and they collapse.  All queen Markel’s horsemen won’t bail DBank because there are not enough Euros or DMarks available to save the bank. Even Uncle Ben can’t save them. The cost would be multi trillions. Just like Lehman, Fannie Freddie, Bear, Merril Lynch, Countrywide, Wachovia, WAMU.
    AIG cost the tax payers $160 billion or so but they had to be saved due to the derivs they held on behalf of the entire banking structure or so I heard.
    I am concerned that the Fed could fail. Half their equity went poof when their 50 to 1 leveraged balance sheet filled of T Bonds took a $35 billion crap when UST rates increased 70% since May 2.

  10. Aren’t those megabanks just trademarkt for  bunch of behind-the-scenes über-bankers? If they can default on lots of debt and extract all the wealth, they’ll do it.

  11. im with Doc Jim W on praying for the next take/smash down of PMs price. Ive got some fiat left and less expensive silver is really a gift.
    Id like to take this opportunity to thank all those who are going to make it possible for me to  by more for less. From the bottom of my pockets i truly thank you!

    • “Id like to take this opportunity to thank all those who are going to make it possible for me to  by more for less. From the bottom of my pockets i truly thank you!”
       
      Indeed so.  HIGHLY desirable precious metals are ON SALE now.  If silver had gone to $100 an oz. 5 years ago, most of us would have MUCH smaller stacks.

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