Saturday, September 11, 2010

Karl Denninger: Next Financial Crisis Imminent!

By Reginald Kaigler

Karl Denninger appeared on Max Kieser's TV to break down the current economic crisis. He explained how the U.S. government uses accounting tricks to hide trillions of dollars of debt. Karl also touched on government bonds and the U.S. government's grand ponzi (I mean, Madoff) scheme. I especially enjoyed Karl's explanation of why Geithner and company can't control the situation. Giethner maybe to have a lot of control of the U.S. government's decisions, but he he absolutely no control over China's trade and currency decisions.

Simply, the world market system is unstable and unsustainable. There's no quick fix and at this point, the U.S. government is out of tricks to prop the U.S. debt system up. Europe's debt is already imploding their financial structures and it's only a matter of time until the world's house of cards comes falling down. Many American derivatives are linked to Europe and vice versa. The financial problems that crashed the system still existed.

In fact, Karl is convinced that the next leg of this financial crisis will begin very soon and most likely will start outside of the U.S.

By the way, I highly recommend Karl's website. I don;t always agree with his conclusions, but he is a very knowledgeable mind in finance.

1 comment:

  1. I think you'll enjoy Laurence Kotlikoff's article on the same topic: