Peak Credit – End of Civilization?

By Greg Hunter’s USAWatchdog.com 

Could the credit crisis we face globally destroy civilization as we know it?  Richard Duncan, author of a new book called, “The New Depression: The breakdown in paper money,” says yes!  Duncan claims the $50 trillion in credit expansion in the last 40 years must continue or the system will basically fall into complete chaos.  In an appearance on the European version of CNBC last week, Duncan said, “If this credit bubble pops, the depression is going to be so severe, I honestly don’t think our civilization could survive it.”  My question is why doesn’t CNBC have this guy on in the U.S.?  Maybe the possible scenario he is talking about is just too scary and really bad for selling stocks?  Who knows, but it is well worth a listen and something you should know about.  Please enjoy the video and discussion.

Comments
  1. chris1

    $50 Trillion? try 200 TRILLION. Prof L. Kotlikoff
    Whereas credit, IMHO is the same as debt.
    Interview him ,(LK).
    4.00 “Borrow massive amounts of money”? Huh ,that’s how we got here !!
    This guy is kinda clueless as it wants govt.(laughs) to invest in this
    or that technology,with borrowed money.What is he smoking?
    Gotta have competing currencies and NO debt based govt. anything.
    IOW the fed,local,state govt.(s) can never run a debt,YOY.

    • mstrong1

      I just listened to him on a Skype arranged by a local investment (stock) guy. His analysis was spot on UNTIL he got to his conclusion that US Govt borrow trillions at the current low rate and RESPONSIBLY INVEST IT in carpeting Nevada with US made solar panels and find a cancer vaccine, etc., all in a Manhattan Project sort of national effort…………. interesting analysis until we get to the clueless conclusion

      • Greg

        mstrong1,
        I agree with you. I put it up for the first part. Thank you for your comment.
        Greg

  2. art barnes

    Greg, CNBC is the quintessential economic journalistic “pravda” of are times. Simply shameful, but you can’t shame them even with the truth.

    • Greg

      Thank you Art and Mike.
      Greg

  3. Mike Gunther

    AHHHHHHHH!!!!!!!!!!!!! a mainstream media outlet speaking the truth, my head exploded! Greg, I concur with your analysis. Why isn’t the American public seeing this? With the stock market plunging 200+ points a day and the PPT dragging it back up everyday I guess we will muddle along for a while, but the 50 Trillion dollar question is for how long?? Many thanks Greg for this valuable site. God Bless you and yours.

  4. Samantha

    Hi Greg,

    Thanks for posting this video. This is probably one of the more “scarier” segments you’ve posted, but one that also brings up a great many points. Great comment: Why isn’t this info on U.S. CNBC? You are correct: this kind of news could spook the stock market.

    I reside in Tucson, AZ, but am on the coast of Maine right now. In talking with a landscaper yesterday, a man who had a very successful business(hard working guy…not a lay-about), he said the economic downturn has ruined him and he is losing his home and property. He said the banks have finally beaten him. He had a half-smile on his face when he was talking with me, but I could see the pain and worry in his eyes; very sad.

    What are people going to do? Do you think there is a possibility that the system will collapse?

    Thanks, Greg; you’ve got some of the best reporting from the front lines on the ‘net.

    • Greg

      Thank you Samantha and welcome to the site!! Yes, I think the economy will collapse and many others I talk to feel the same way. The big question is when.
      Greg

  5. Mitch Bupp

    This sounds just a ponzi … new money is used to support the profits of the future ..

    say T-Bond?

    Thank You, Greg

    • Greg

      I think this is a desperate measure and you can only stall what’s coming. Thank you Mitch.
      Greg

  6. DayOwl

    The economy IS collapsing as we speak. It is likely to get worse.

    However…

    Life will not come to a standstill and stay that way. People will pick up the pieces and move on. It may not be what it was before, but commerce and survival will continue. People will still be looking for food, shelter, and clothing. The more industrious among us will work to provide those things. People will find strength within they never knew they had.

    What form will it take? Who knows? A lot of it will not be bankster government approved, but, hopefully, they won’t be in a position to do much about it. (They’ll be too concerned with survival, defending themselves against an outraged public.)

    • Dave

      Back to the Barter system of the 30’s. Everytime my grand-dad went to the store, he said he was going ‘trading’. That’s the way he grew up. It’s the same thing that happened recently in Argentina.
      Local currencies were also used in the 30’s. In this area, some of them were essentially Muni Bonds of the local town, used like cash.

      • Dave

        I should’ve added, with the FDIC nowadays, barter probably won’t come back over-night, like it did in Argentina.
        I already know some people who ‘trade’ on CraigsL when they can. The best thing about ‘trading’ is you get to rob the tax-collector!

  7. g.johnson

    wow, a 21st century mainstream news broadcast in black and white! things really are getting bad in europe.

    the second man speaking, the one with the english accent who is apparently a station commentator, laid it right out there when he said, the good guys cannot affort to participate in the system and thus do not have the financial means to stop the misbehaving bad guys. bravo! eu-freekin-reeka!

    when is the great depression actII going to start? really? how bout 30 years ago? at what point do you say that we have destroyed enough hard working folks to make the “depression” official?

    gotta agree with chris 1 about how the guest guy still thinks we can make something positive happen in the paradigmn of money created as debt. but i really doubt the guy is smoking anything, or he would, no doubt, be much more enlightened.

    thanks greg, really enjoyed the vid. especially that guy with the accent.

    • Greg

      G. Johnson,
      Why isn’t CNBC booking this guy over here? His book is ominous.
      Greg

  8. George Too

    Can defer but cannot prevent….the more you defer the worse it will be. Sound theory up Until He is spouting let the government borrow trillions and invest and even waste…and let the civilization last for another TEN years. What a macaroon

  9. Paul

    Hi Greg et al- I did see this segment aired on CNBS, but it was very early in the a.m. on their “Worldwide Exchange” show and was a video of the live interview from the day before. (in color). Mr. Duncan is far too rational and truthful i n his analysis for prime time tout tv.

    Personally I’m way beyond hoping for the best and am actively preparing for the worst in all ways possible.

    • Greg

      Thank you Paul for weighing in.
      Greg

  10. Paul

    Greg –

    Duncan completely ignores the real cause of the crisis – all money – whether paper, gold or silver is essentially either debt or credit depending on which side of the ledger you’re looking at.

    The core of the problem is collusion between sovereign states and central bankers – the issuers/controllers of currency. They have long ago abandoned due diligence to ensure the sanctity of our very lifeblood. ZIRP and its cousin bi-flation will not have a happy ending.

    And to suggest that government “investment” will cure the problem is sheer lunacy.

    • Greg

      You are correct sir!! Thank you Paul.
      Greg

    • Diane Carol Mark

      Paul,
      He mentioned that it would buy us only 10 years before a collapse. That’s not much, is it?
      :) Diane

  11. Peter

    This guy’s a fool caling for massive government spending.

  12. Shawn In San Jose

    I agree that massive credit expansion is the problem. I agree there is going to be a Depression. I agree that attempting to forstall the Depression will only make it worse.

    I completely disagree with his suggestion that we print money to spend on renewables, biotech, etc. None of that will help.

    I’d rather see a debt jubilee, ala Steve Keen, than this guys solution.

    While it might be painful, the reset has to happen. The sooner the better.

  13. RFB

    The author speaks the truth but his solution is more Jack and the Beanstock Magic Beans philosophy. To quote John Wayne. “Life is hard, its harder when your stupid”.

    • Greg

      Loved John Wayne!
      Greg

    • Imran

      It’s even harder when you can’t spell. :)

  14. Jim

    Typical economist. The answer is for even more government debt and spending, but to spend the money on things that he thinks are important. What a moron.

  15. Paul Jackson

    The question was never asked, where does this new credit come from and what is it backed by? the real problem is the system we have. It’s the private banking cartel (not the government) who “create” credit money out of nothing -fraud- on which interest is owed, someone always comes out the loser unless credit continues to expand because the interest can never be repaid, it’s only the principal that is created!. If you are a borrower you are playing a game of Russian roulette with other borrowers, as the loser you forfeit your assets to the Banksters who got something for nothing. All this system does is continuously transfer wealth from the worker debt slave to the elite. We need a debt free peer to peer system, no fractional reserve smoke and mirrors, perhaps based on a gold and silver backing? no banks though, they will just dream up another scam to part you from your money.

  16. Mike

    Richard Duncan is nuts. It’s the jobs stupid.

    The world has been developing renewable energy for 20 years now, it isn’t a savior, the ROI is terrible. If you are paying 0.15 per kw/hr today, what is the point of doubling the national debt in ten years so that people have 0.45 kw/hr energy.

    And Dickie hasn’t factored the millions of displaced workers in the current energy industries, the collapse of their companies.

    Solendra.

    GM

  17. David C.

    CNBS-USA could put this up and markets here would yawn & ignore it. News does not really move markets much. Insights regarding the unsustainability of all this go back at least 17 years, yet here we are.

    Money replaced barter because it allows easier transactions, but money is/was supposed to represent prior production. In order to enter the market you had to have either produced an economic surplus or borrow someone else’s. The current system allows people to create the power to purchase (enter the market) without first producing SQUAT.

    This system is fundamentally dishonest, and all those who arranged and maintain it are unadulterated criminals. That these same folks also run all the world’s nation-state political systems and financial systems tells us all we need to know about the festering dishonesty of our civilization.

  18. Henry

    DEREGULATION was not mentioned ONCE.
    This video portrays the economic philosophy of those that CAUSED THE PROBLEM.
    Yes, overextension of credit is the problem.
    But, without “free-market” DEREGULATION of finance would the cancerous overextension occurred?

  19. rolf

    bring back the OTTOMAN EMPIRE

  20. Really

    No, he didn’t say more spending is going to fix the problem. Just that if we insist on trying to spend our way out of it, we might as well spend it on things that will be usefull after the collapse.

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