Home > Man-Made Disasters > Fitch Warns of ‘Cataclysmic’ Euro Collapse, World Economic Forum Warns of New 1930’s Era Depression

Fitch Warns of ‘Cataclysmic’ Euro Collapse, World Economic Forum Warns of New 1930’s Era Depression

“The European Central Bank should ramp up its buying of troubled euro zone debt to support Italy and prevent a ‘cataclysmic’ collapse of the euro, David Riley, the head of sovereign ratings for Fitch, has warned.

Speaking to investors as part of a European roadshow, Mr Riley said a collapse of the euro would be disastrous for the global economy, and while it is not Fitch’s baseline scenario, it could happen if Italy did not find a way out of its debt problems.

‘The end of the euro would be cataclysmic. The euro is a reserve currency,’ Mr Riley said overnight. ‘What would that do in terms of financial and political stability?’

‘It is hard to believe the euro will survive if Italy does not make it through,’ he said, adding that while many saw Italy as too politically and economically important to be allowed to fail, ‘one might also argue that it is too big to rescue.’

The warning pushed the euro down towards a 16-month low versus the US dollar.” Read more.

Global financial crisis threatens to drag the world back to the 1930s – “The financial crisis threatens to drag the world back to the dark days of the 1930s and wipe out the gains of globalisation, a hard-hitting report said tonight. In its annual assessment of the global economy, the World Economic Forum warned of a rising tide of protectionism, nationalism and protests as seen during the Great Depression. It blamed the ‘chronic’ state of government finances and the widening gap between the rich and poor as the world lurches from one crisis to another. The WEF, which holds its yearly meeting for leading politicians, economists, businessmen and academics in the Swiss ski resort of Davos later this month, said the ‘seeds of dystopia’ have been sown.” Read more.

Categories: Man-Made Disasters
  1. 01/12/2012 at 3:39 PM

    I think it will be much worse than the 1930s — back then we did not have the majority of world gov’t with basically unpayable gov’t debts.

    Know what else is scary? Think about what REALLY got the world economies going again in the late 1930s. It wasn’t FDR and his “New Deal”…


  2. ICA
    01/12/2012 at 5:14 PM

    Yes, true. And this is an election year. With the exception of LBJ, wartime presidents have always been re-elected. Maybe Iran is the ace up Obama’s sleeve (and I have serious doubts about Romney beating Obama) …


  3. Willard
    01/12/2012 at 9:32 PM

    I would have to agree with you ICA – I also think Romney is toast – a Mormon and a cult which historically has not gone over well in the US or Canada tells us a lot of how far we have fallen away from GOD when the choice is either a Muslim or a Mormon.


  4. Anonymous
    01/13/2012 at 4:06 PM

    I concur. Once Romney is “anointed”, I wouldn’t be surprised to see a third party run from someone like Paul, Palin or even Trump. That will split the Republican vote and guarantee Obama a second term.

    “The lot is cast into the lap, but its every decision is from the Lord” Prov. 16:33



  5. Anonymous
    01/13/2012 at 4:09 PM

    Kurt J. – Also consider the fact that our grandparents and great-grandparents were much better equipped to deal with a depression than the current generation. Most everyone still knew how to grow food, make clothes, keep small livestock, etc. That knowledge has been substantially lost in the last generation. The reaction to actual want by this generation will be truly scary.



  6. 01/13/2012 at 9:39 PM

    Does my cat “Boomer” count as small livestock?

    Yes, you’re right about the knowledge to grow food, etc. I did pack every imaginable variety of fruit tree on my small suburban lot, but I don’t think that’s going to go very far if something truly horrific happens.

    Ultimately we need to be prepared to share and depend on God for our needs, as I’m sure the regulars here agree.


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