Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in
In the same category

Nightmare Scenarios for Obama's 2nd Term

IMG Auteur
Published : November 19th, 2012
469 words - Reading time : 1 - 1 minutes
( 2 votes, 4.5/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Opinions and Analysis

 

 

 

 

Last week I was interviewed by Constantine von Hoffman for a CBS news article regarding economic nightmares for Obama's 2nd term.

Calculated Risk was interviewed as well. His nightmare scenario is war, specifically noting the rise of Golden Dawn.

Eight people were interviewed for the CBS article but the organization was maddening. Specifically, there is no way to see all 8 viewpoints of people interviewed at once. You have to click through pages one at a time. I was curious enough to do it, Calculated Risk gave up after the second click.

In a clear effort to generate clicks, articles like this are an extreme turn-off and actually counterproductive. That no readers emailed me with a link to this article says no one bothered clicking through all the pages.

I talked to von Hoffman about numerous things, only one was mentioned in the article. Many of my points were of the nature of things I think should happen (and would benefit the global economy over the long run if they did), but most economists would disagree.

Mish Nightmare Scenario

1.       Not Addressing the Fiscal Cliff

2.      Breakup of the Eurozone

3.      UK exiting the EU

4.      China Growth falls to Zero Because of Rebalancing

5.      Currency Crisis in Japan

6.      Failure to address pension problems in US

7.      Rise of the Neo-Nazi Golden Dawn Party in Greece Leads to War


I mentioned all of those things and more. The first four are things that I actually believe need to happen (and the sooner the better) to prevent a global nightmare!

Unfortunately, most economists want to kick the can down the road still more.

For a discussion of the fiscal cliff, please see Misdiagnosing the Fiscal Cliff; Shrill Voices and Economic Nonsense; Tyranny of Balanced Budgets

A breakup of the eurozone is inevitable in my opinion. For a detailed explanation why, please see Spain's Unpleasant Choice: Accept Lower Wages and Still Higher Unemployment, Leave the Euro and Default.The sooner a breakup happens the better. Delays end up like Greece.

In regards to China, please consider "China Rebalancing Has Begun"; What are the Global Implications? Michael Pettis on China Rebalancing, Chinese Price Deflation, and Spain Exit from Euro; Target 2 Revisited.

Note that can-kicking in Greece has led to the rise of the Golden Dawn party. Expect the same to happen in Spain if the agony lasts long enough.

Essentially, my nightmare scenario is more can-kicking exercises until the entire global economy blows up in a currency crisis and radical parties like Golden Dawn gain prominence everywhere, fueling political as well as economic violence.

Addendum

I had war in the Mideast with spiking oil prices as part of my nightmare scenario that I mentioned to von Hoffman. I simply forgot to mention it when I typed this post up earlier today.


 

 

Data and Statistics for these countries : China | Greece | Japan | Spain | All
Gold and Silver Prices for these countries : China | Greece | Japan | Spain | All
<< Previous article
Rate : Average note :4.5 (2 votes)
>> Next article
IMG Auteur
Mish 13 abonnés
Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. He writes a global economics blog which has commentary 5-7 times a week. He also writes for the Daily Reckoning, Whiskey & Gunpowder, and has over 80 magazine and book cover credits. Visit http://www.sitkapacific.com
WebsiteSubscribe to his services
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
The Fed Has Bankrupted the US In Order to Create Another Bubble
08:24Silverthumb
I believe this bubble will pop, the big question is when. I underestimated the power of the Fed and monetary policy. I believe that during the We...
The parable of the cards
28 Aprdom1971
Please let me take this a step further if I may... because I see an opportunity to highlight a particular concern of mine. Let us ignore f...
Debate Over Electric Trucks: Let’s Get It On
25 AprJerry82
Thanks Mish, this was a very insightful and thought provoking piece. I've often heard concerns about the weight of these new electric trucks and th...
No, The Junior Mining Stocks Are Not About To Implode - Dave Kranzler
25 AprJerry821
Thank you Dave for this excellent article. I agree with your well thought out critiques that point to junior miners being just fine. Relying on tha...
Gold Bullion Erases $10 Bounce Despite French Election, N.Korea Ris...
25 AprJerry82
I don't know how much I'd trust the listed GLD holdings. I always found GLD's structure to be a bit strange. They so famously claim that they are 1...
The Story of Gold Money, Past, Present and Future, by Edwin Walter ...
18 AprJerry82
Thank you for this very thought provoking piece Nathan. I have not read any literature from Edwin Walter Kemmerer before but I am inclined to pick ...
Gold Prices Slip $10 After Breaking Downtrend as UK's May Seeks Bre...
18 AprSam Maher3
"That left the GLD gold ETF needing a 2017 high of 849 tonnes in bullion backing." I frequently see you make these claims on GLD's holding...
Bombs Away!
17 Aprprljr-1
James tribe owns trump.
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS