Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

6/4/2012 (2 years ago)

Catholic Online (www.catholic.org)

Raoul Paul believes the system is about to collapse under its own weight.

There is no shortage of grim economic indicators in the news today. Depressed job markets, failing IPOs, mounting unrest and fiscal crisis in Europe, all serve to make the business section read like a soap opera. Unfortunately, some experts believe the soap will soon turn to epic tragedy. 

The end of banking as we know it is coming.

The end of banking as we know it is coming.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

6/4/2012 (2 years ago)

Published in Business & Economics

Keywords: Raoul Paul, collapse, economy, economic, debt, crisis, sovereign, central bank, fiat


LOS ANGELES, CA (Catholic Online) - Former hedge fund manager, Raoul Paul is predicting the "biggest banking crisis in world history" Raoul Paul retired from managing hedge funds at age 36 and now lives in Spain where he manages the Global Macro Investor, an independent research publication. Paul is now predicting a worldwide banking collapse.

What makes Raoul Paul unique is that he is a professional, and not one of the doomsday prophets of apocalypse that have always been around to predict the downfall of civilization regardless of the economic climate. More importantly, he's not trying to steer people into buying gold, a survival handbook, or anything of the sort. He is simply sharing his professional observations backed by research.

So what does the research say?

Paul predicts the first major bank will collapse within the next 18 months. Banks are holding large quantities of troubled assets and there are no fundamentals to support recovery. Purchasing and manufacturing are slowing globally. It will be up to governments, once again, to bail out the banks. Unfortunately, this is an unpopular solution, and likely impossible. 

Governments and banks are already leveraged to the maximum, there simply isn't any room to make more money without devaluing the currency. Sooner or later, a major bank is simply going to have to fail. The most likely candidates are in Europe. 

The failure of a major European bank can also signal the end of money for central governments. And without those loans (typically high-interest) from the banks, a country cannot operate.

Government will be forced to choose between a complete shut-down and default, and since the former is unacceptable, a default is likely. 

In a default situation, a government stops repaying its debts. That means people who purchased government bonds and other investments that relied on those payments have now lost their money. They in turn won't have money to invest (lend) to others - their fortunes have evaporated. 

This of course starts a domino effect because many of those investors are actually other countries. So when Greece goes, so will a number of other countries in succession. Eventually even the United States could suffer it's greatest economic disaster - ever.

Paul does not simply blame debt, which is the traditional culprit in most doomsday scenarios. What he identifies is that there is $70 trillion in debt serving as collateral for $700 trillion in derivatives. And that $700 trillion is now 1200% of global GDP!

Paul says this is the beginning of a reset. Paul predicts that bonds will fall to 1 percent and short selling stocks and bonds will be banned along with a number of other common financial practices.
 
Ultimately, no investment could be safe as governments work out new ways to manage their operations and a new system emerges. He predicts the end of fiat currency and fractional reserve banking. 

Paul thinks we have only about 6 months left of trading in the West before things turn for the worse and he is advising investors to seek safe haven for their investments before then. 

 

---


Pope Francis: end world hunger through 'Prayer and Action'


2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for July 2014
Sports:
That sports may always be occasions of human fraternity and growth.
Lay Missionaries: That the Holy Spirit may support the work of the laity who proclaim the Gospel in the poorest countries.



Comments


More Business & Economics

INDEBTEDNESS: One in three U.S. adults have 'debt in collections' Watch

Image of One in three American adults are so far behind in personal debt that many of their accounts have been referred to collections.

By Catholic Online (NEWS CONSORTIUM)

Some call it the American way, and it's become a most uncomfortable fact of life for many Americans. Personal debt is at an all-time high, and at least one in three Americans, 77 million people, have had their debt referred to collection agencies as a result. ... continue reading


LUMP OF COAL - LITERALLY! Coal companies pushed to brink of insolvency by Obama policies Watch

Image of The very fuel that fed the Industrial Revolution and powered U.S. growth for much of the past century, the coal industry finds itself on the brink of insolvency, with many companies going out of business.

By Catholic Online (NEWS CONSORTIUM)

Dealing with cheap natural gas and tighter regulation, the U.S. coal industry has fallen on hard times. The very fuel that fed the Industrial Revolution and powered U.S. growth for much of the past century, the coal industry finds itself on the brink of ... continue reading


The poor getting power in U.S. - typical household is now worth a third less Watch

Image of The old saw goes that when only a few people are winning and more than half the population is losing, surely something is amiss.

By Catholic Online (NEWS CONSORTIUM)

The rich get richer - and the poor have children. But seriously, folks, the poor is getting even poorer in the United States. Recovery from the last big recession in 2007, hasn't really taken off as of yet. Recent studies show that the average American ... continue reading


HAIL BRITANIA! Britain declared fastest growing economy in developed world Watch

Image of Britain is now

By CNA/EWTN News

There will always be an England, as the old song goes. While the United Kingdom has experienced highs and lows, it's always recovered - and prospered. This was born out by the recent news that Britain will be the best performing major economy in the developed ... continue reading


Amazon sits on slippery slope as investors pull out from company Watch

Image of Amazon, despite constant reinvestment into technology like smartphones and drones, continues to lose investors and profits.

By Catholic Online (NEWS CONSORTIUM)

Amazon lost over $16 billion in value on the night of July 26, a sign that investors were growing weary of the retail giant's repeated failures to make a consistent profit. LOS ANGELES, CA (Catholic Online) - This was Amazon's largest quarterly loss in two years, ... continue reading


The buck does stop here: Chinese currency set to close the gap between it and the dollar Watch

Image of A new study from China indicates that the Chinese yuan is likely to become the third most used international currency by 2019.

By Catholic Online (NEWS CONSORTIUM)

China's currency, the renminbi (RMB), is looking to become the third-largest international currency behind the U.S.'s dollar and the euro by 2019 said the Renmin University of China in a report published on July 20. LOS ANGELES, CA (Catholic Online) - Last year, ... continue reading


Financial consultant warns that U.S. is entering third largest stock bubble Watch

Image of A new study by financial consulting firm Smithers & Co. warns that the U.S. is entering another major stock bubble, the third largest in U.S. history.

By Catholic Online (NEWS CONSORTIUM)

A new research report by financial consultant Andrew Smithers, chairman of Smithers & Co., suggests that the U.S. is in the midst of another stock-market bubble, much like the bubbles in 1853, 1906, 1929, 1969 and 1999. LOS ANGELES, CA (Catholic Online) - ... continue reading


WARNING: The most important article you may ever read - We need a moral revolution at the top, before pitchforks appear in the street Watch

Image of In the game of plutocracy you start by owing money to the bank and as it progresses, you owe more.

By Marshall Connolly, Catholic Online (NEWS CONSORTIUM)

An article published in 2011 in Forbes is making the rounds again and people are talking, but despite the dust on the copy, it's a timely conversation. The article by Brendan Coffey reveals that there are four companies that control 147 other companies and those 147 ... continue reading


U.S. to shortly overtake Saudi Arabia, Russia in production of natural oil Watch

Image of In Texas and North Dakota, oil extraction is soaring at shale formations as companies split rocks using high-pressure liquid in a process known as fracking.

By Catholic Online (NEWS CONSORTIUM)

The United States has often found itself at the mercy of unstable nations for the majority of its oil imports. That day may soon be past after American begins the extraction of energy from shale rock, eventually overtaking both Saudi Arabia and Russia in oil ... continue reading


Unemployment among black Americans twice that among whites Watch

Image of The jobless rate among whites last month was 6.6 percent; among blacks, 12.6 percent. The unemployment rate for blacks has averaged about 2.2 times that for whites.

By Catholic Online (NEWS CONSORTIUM)

When African-Americans marched on Washington in 1963, it was under the banner of "Jobs and Freedom." There remains a great inequity with the former; the number of unemployed blacks in America remains twice as much as whites, and has remained that way for ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Jeremiah 15:10, 16-21
10 A disaster for me, mother, that you bore me to be ... Read More

Psalm, Psalms 59:2-3, 4, 10-11, 17, 18
2 rescue me from evil-doers, from men of violence ... Read More

Gospel, Matthew 13:44-46
44 'The kingdom of Heaven is like treasure hidden in ... Read More

Saint of the Day

Saint of the Day for July 30th, 2014 Image

St. Peter Chrysologus
July 30: St. Peter Chrysologus, Bishop and Doctor of the Church ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter