Pay Very Close Attention to this Nightmare Scenario Because it will Soon Happen in the U.S.

Ive been saying it for years. And for years now Ive been called a doom and gloom pessimist who is scare mongering for no reason at all.

Yes, the U.S. economy is on a path to complete collapse and chaos. Ive said it before and Ill say it again. The stock market is rigged, the books are cooked and all the slightly positive data the fed pumps out is nothing but sham common core style number fudging. But the rigging and number fudging isnt the big dark cloud now hanging over us. All of that is just used to hide the cloud from our view.

No, the real dark cloud is the fact that banks and national debt are about to bring about a financial hurricane that will have devastating impact across the globe. Sadly, the world is defenseless against the damage it will result in.

What is driving this financial hurricane? Well, we need not look any further than the financial tornado currently ripping through Greece. I say tornado, because compared to what it would be like if/when the U.S. goes through the same scenario, Greece is just a taste of what well see.

Right now, as Im writing this, people in Greece are lined up at grocery stores, gas stations and ATM machines. Food and water are no longer on the shelves, gas is running low and the banks have shut off the ability to withdraw money from machines. Greece is saying the banks will remain closed for at least 6 days! Dont worry, some banks will open for a few hours on Thursday so those holding retirement accounts can withdraw some cash. How much cash? A maximum of 240 euros.

I kid you not. The banks will allow a whopping 240 euros to be taken out of retirement accounts on Thursday. By Thursday, depending on what happens in Greece tomorrow, 240 euros might be enough to buy a tank of gas and a loaf of bread from your neighbor.

Heres what is happening. Via the Telegraph story linked above (Defenseless against damage)

The BIS said that the current turmoil in Greece typified the kind of toxic mix of private and public debt being used as a solution to economic problems, rather than making the proper commitment to badly needed structural reforms.

Mr Caruana said that policymakers must now focus on the supply side of the economy, introducing the right reforms, rather than continue to lean on debt which will inevitably undermine growth.

That toxic mix is the crutch currently being used here at home. Karl Denninger explains.

The truth of an asset is that its value is only what someone will pay you for it at any given point in time. This is always true, whether the asset is a house, car, rock of some composition (e.g. gold, silver, diamond, etc.), piece of machinery, bushel of corn or whatever. There is no intrinsic value in any asset beyond its ability to be converted into useful work, and even that is subject to debate as to what it may be exchanged for.

Banking does not have to be performed in a fraudulent manner but it nearly always is, because the banksters always demand the ability to associate a value with their assets that they cannot receive at this given moment in time whenever it suits them. Demanding to value something on tomorrows price is inherently a fraud because nobody can predict tomorrow with accuracy.

Greece has declared a bank holiday because both its previous and present governments, yes, that includes you Tsipras, permitted its banks to claim asset values they could not receive in the present day should they sell those assets. This is known to be fact because said banks had to pledge those assets to the ECB through the Emergency Liquidity Apparatus (ELA) in order to be able to meet depositor demands.

If they were not falsely valuing those assets (bonds) at above their market price they could have simply sold them to meet the withdrawal demand of their customers. The reason they didnt do this is because the price at which they held them on their books is far higher than the price they could receive.

In other words they were lying.

If they were to sell those assets the loss would be crystallized; they would have to recognize that the value of the asset is not what they claimed, and having done that they would be exposed as bankrupt.

The problem is that they are factually bankrupt here and now while falsely claiming not to be predicated on a belief that in some tomorrow those assets will have the value they are carrying them at.

Fact is our banks cant cover depositors. Deposits are backed by the fed, which also cant cover deposits because it too is realistically bankrupt, only it pretends not to be by printing money and taking on more debt.

Mathematically the U.S. cannot pay its trillions upon trillions of debt. Not now, not ever. Every single dollar we take in every year is entirely paid to interest on debt we already racked up. All the spending you see the government doing is being done on borrowing, not revenue.

Greece finally hit the tipping point and the tornado is roaring. Our tipping point is on the horizon and with it will come a financial hurricane that will bring about something unlike any of us have ever seen in our lifetimes.

But dont worry, your Congressman/woman, Senator and President say everything is just fine. Nothing to see here.

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