Top Bankers Warning Coming Default will be Catastrophic

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Some of the world’s top bankers are warning of “catastrophic” consequences that could start as early as next week should the government default on its debts.

Deutsche Bank chief executive Anshu Jain said, while speaking at a conference hosted by the Institute of International Finance in Washington, “This would be a very rapidly spreading, fatal disease.” He warned that the consequences of an American default would be “utterly catastrophic,” and would plunge the world into at the very least another recession.

As we reported earlier this week, banks around the country are starting to stockpile huge amounts of paper currency in fear of a major run on U.S. Banks in the coming weeks.

On Saturday, JPMorgan Chase chief executive Jamie Dimon confirmed the stockpiling of cash, when he said banks are spending “huge amounts” of money and making “enormous preparations” preparing for the possibility of a default.

After President Obama rejected the latest congressional offer to temporally extend the debt limit while they negotiate on the budget, The U.S. Treasury Department is claiming they could default as early as next week, and say they won’t be able to prioritize payments on U.S. debt over obligations like Social Security.

In my opinion, these are scare tactics, especially when you consider the government has more than enough money to pay the interest on the debt, while still making social security payments. But scare tactics or not, it seems we are again heading for some very troubling economic times.

Our system is built on top of a perceived value in our paper currency; once the American people lose confidence in its value, the system crashes like a house of cards. Whether the default’s actually as catastrophic as these bankers are warning really isn’t the problem, the problem comes in how the country reacts to these warnings.

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Responses to " Top Bankers Warning Coming Default will be Catastrophic " Please share your thoughts...

  1. RICHARD RALPH ROEHL says:

    During the cruel and vicious $talinist era, the Russians often extolled a maxim that said: “The worse, the better!”

    Many Amerikans are saying that now. The United States of Perpetual War Profiteering has devolved into a violent capitalist/fascist bully-beast, an EVIL EMPIRE that not only preys upon all the peoples of the world, but enslaves the people within its own borders.

    I rest my case with 2.5 million Amerikan citizens languishing in the nation’s buttphukkking prision system… compliments of the bizarre and insane war on drrrugs.

    As we all learned during the $ovietnam war era, we sometimes have to burn down the god damn village in order to save it. The world is fed up with capitalist/fascist Amerika, especially the Amerikan people. Amerika’s criminally insane plutocratic ruling class must come to its senses… or die.

  2. Persister says:

    Richard is correct. This country has only gotten more corrupt every year. The Illuminati have done a good job of getting us to this point of leveling with the other 3rd world nations of the earth. Now … what will they do? How will they achieve the total destruction of the United States? How many millions will die? Will they use a collapse of the electrical grid to bring in full martial law? Will it be one of the other “drills” that will bring on total collapse and the placement of the DHS (with their hollow-point ammunition and armored vehicles) on the streets? Will it be the final collapse of the dollar? We’re at a pivotal time in American history. We’ll just have to ride this out and pray for God’s help for the good people of America.

  3. Randa says:

    China has expressed the need to “De-Americanize the world” and since Obama takes his orders from China, guess who is going to be jumping through hoops to make sure the American debt will not be repaid. Sounds strange since China would be owed a couple of trillion, but I think they are willing to write that off in light of America’s tyranny coming to an end.

    Obama’s destiny has always been to destroy America. First on the inside, next on the outside.

    • Andrea says:

      @Randa, very true.

  4. Dee Zak says:

    The only way our debt will not be paid, is if the President and his minions CHOOSE not to pay. The Govt brings in enough money from taxes and fees daily that it is impossible for the US to default on the loans. Other things may not get paid, but it would be against the law to NOT pay on the interest on the loans. The raising of the debt ceiling is just raising their credit card limit, nothing more. When you’re broke and can’t pay your bills, do you ask the credit card companies to raise your limit, and you tell them not to worry, you won’t use that card, you just want the limit raised so you can just look at it??!! Any normal person with a budget knows that you can’t do that. Oh, but we don’t have normal people any more?! We now have a new normal, where debt limits are raised so we can spend more on the credit card. WTFU!

    • Andrea says:

      There’s a point when raising the debt ceiling won’t happen …. you know …. since it’s just raising their credit card limit & we all know eventually that they don’t raise your limit when you can’t pay.

  5. David says:

    Politicians: Polly>many Ticks>blood sucking creature
    Politicians: Many blood sucking creatures
    There will not be any immeditate crisis. The politicians, bankers, and elite continue to need us until they can suck every last dollar from us, through taxes, to make them richer and more powerful.

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