Economist Richard Duncan: Civilization May Not Survive 'Death
By Terry Weiss, Money Morning
Duncan, formerly of the World Bank and chief economist at Blackhorse Asset
Mgmt., says America's $16 trillion federal debt has escalated into a "death
spiral, "as he told CNBC.
it could result in a depression so severe that he doesn't "think our
civilization could surviveit."
Duncan is not alone in warning that the U.S. economy may go into a "death
the recession, noted economists including Laurence Kotlikoff, a former member of
President Reagan's Council of Economic Advisers, have come to similar
estimates the true fiscal gap is $211 trillion when unfunded entitlements like
Social Security and Medicare are included.
while the debt crisis numbers are well known to most Americans, the economy
hasn't suffered a major correction for almost 4 years.
the questions remain: Is the threat of collapse for real? And if so, when?
team of scientists, economists, and geopolitical analysts believes they have
proof that the threat is indeed real - and the danger imminent.
member of this team, Chris Martenson, a pathologist and former VP of a Fortune
300 company, explains their findings:
found an identical pattern in our debt, total credit market, and money supply
going to fail. This pattern is nearly the same as in any pyramid scheme, one
that escalates exponentially fast before it collapses. Governments around the
globe are chiefly responsible.
here to see how banks are escalating the collapse...
what's really disturbing about these findings is that the pattern isn't limited
to our economy. We found the same catastrophic pattern in our energy, food, and
water systems as well."
to Martenson: "These systems could all implode at the same time. Food, water,
energy, money. Everything."
member of this team, Keith Fitz-Gerald, the president of The Fitz-Gerald Group,
went on to explain their discoveries.
this pattern represents is a dangerous countdown clock that's quickly
approaching zero. And when it does, the resulting chaos is going to crush
Americans," Fitz-Gerald says.
Kent Moors, an adviser to 16 world governments on energy issues as well as a
member of two U.S. State Department task forces on energy also voiced concerns
over what he and his colleagues uncovered.
frightening of all is how this exact same pattern keeps appearing in virtually
our society and way of life," Dr. Moors stated.
The work of this team garnered such attention, they were brought
in front of the United Nations, UK Parliament, and numerous Fortune 500
companies to share much of their findings. Click
on the short video above to see a sample.
"It's a pattern that's hard to see unless you understand the way a
catastrophe like this gains traction," Dr. Moors says. "At first, it's almost
impossible to perceive. Everything looks fine, just like in every pyramid
scheme. Yet the insidious growth of the virus keeps doubling in size, over and
over again - in shorter and shorter periods of time - until it hits
unsustainable levels. And it collapses the system."
points to the U.S. total credit market debt as an example of this unnerving
30 years - from the 1940s through the 1970s - our total credit market debt was
moderate and entirely reasonable," he says. "But then in seven years, from 1970
to 1977, it quickly doubled. And then it doubled again in seven more years. Then
five years to double a third time. And then it doubled two more times after
we were sitting at a total credit market debt that was 158% larger than our GDP
in the early 1940s... By 2011 that figure was 357%."
Moors warns this type of unsustainable
road to collapse can be seen today in our energy, food and water
production. All are tightly connected and contributing to the economic disaster
that lies directly ahead.
military held a secret investigation into this unsustainable pattern and
concluded it could lead to "political instability and
to polls, the average American is sensing danger. A recent survey found that 61%
of Americans believe a catastrophe is looming - yet only 15% feel prepared for
such a deeply troubling event.
says people should take steps to protect themselves from what is happening. "The
amount of risky financial derivatives floating around the globe is as much
as 20 times size of the entire GDP of the world," he says. "It's
unsustainable and impossible to unwind in any kind of orderly way."
he adds: "People can also forget that the FDIC can only cover a fraction of US
bank deposits. It's a false sense of security. Just like state pensions, which
could be suspended at any time. A collapse could wipe out these programs.
Entitlements like Social Security and Medicare are already bankrupt and simply
being propped up."
can see the strain on society already.
two years, Congress won't have any money for transportation, reports the Washington
Post. Cities like Trenton, NJ have layed off one-third of their police
force due to budget cuts. And other cities like Colorado Springs, CO removed
one-third of streetlights, trashcans, and bus routes, reports CNN.
also warns of a period of devastating inflation. A recent survey, reports USA
Today, notes that in the coming years it could take $150,000 a year in
household income for a family to afford basic living expenses - and maybe go out
to a movie.
now, in fact, "52% of Americans feel they barely have enough to afford the
our research is right," says Fitz-Gerald, "Americans will have to make some
tough choices on how they'll go about surviving when basic necessities become
nearly unaffordable and the economy becomes dangerously unstable."
need to begin to make preparations with their investments, retirement savings,
and personal finances before it's too late," says Fitz-Gerald.