Very Close to Pan-Global Financial Collapse-Gregory Mannarino

Greg MannarinoBy Greg Hunter’s USAWatchdog.com 

Financial Analyst Gregory Mannarino says the banking crisis in Cyprus is a signal of what is coming to the rest of the world.  Mannarino says, “People are now going to start losing faith in these institutions.  This cannot stand, and we may be very, very close to the pan-global financial collapse that I believe is coming.”  Mannarino contends, “People do not understand that the debt owed by their nation is their debt.  They own it.  They are going to force people to pay one way or another.  Haircuts are coming for everyone.”  Mannarino contends, “There is a debt war going on right now.”  Think what is happening in Cyprus can’t happen in the U.S?  More than $10.8 trillion in deposits are insured by the FDIC with a $33 billion insurance fund.  Mannarino says, “That’s pretty scary,” and the best way to protect yourself is to “get into real assets . . . there would be no problem if people in Cyprus would have heeded that advice.”  Join Greg Hunter as he goes One-on-One with Gregory Mannarino of TradersChoice.net. 

Comments
  1. justin king

    The 2008 crash was bail-out or else, whereas Cyprus is now TOTAL CONFUSION.- The world markets are so fragile,this type of fear factor could domino fairly quickly. Therefore Greg has made a good point that the time for “withdrawal” is very soon. /// The people and guests on CNBC and Bloomberg have never looked more lost or portrayed such vacant bravado.

  2. Charles H.

    Hey Greg,

    Gregory Mannarino is almost completely right; but I will disagree on one thing: the nation’s debt is NOT the citizens debt. If that statement is true – then the logical conclusion is that we can be made to work to pay it. If we don’t have the job and pay taxes (our fair share) then the Fed thugs can come to the door and search the house for treasure, and or sell all you have to make-up the share. If you don’t have anything to “pay” – then it’s to a production FEMA camp, or FEMA factory, or FEMA farm to pay-up your share. Iceland called BS on the banks, and faced-down the government: but can America do the same??? Putting the idea over on people that the national debt is their debt is is a bunch of huey and an unfounded justification for another transference of wealth scheme.

    • justin king

      FEMA CAMPS ??- please

    • g kaiser

      Well, you guess why they want your arms?
      The fact is that if we all rebel, there is nothing they can do.
      It will be a tsunami of discontent and the bankers and the politicians better start waking up to this. People are about fed up by now.

  3. Darren

    Mannarino says that folks should get out of the banking system which was foisted on them through the power of government and he’s right. Anyone who looks to legislators and regulators to help the little guy in this crisis will be sorely disappointed. The legislators and regulators have forced the little guy to exclusively transact his business with unbacked paper through the establishment of central banks and legal tender laws. Government regulations require that we depend on a debt backed system run by the rules of the bankers. Sides have already been chosen and we are not on their team.

    Mannarino is correct to suggest that you should be your own central bank, but consider taking the extra step by recognizing that as an individual, sovereignty lies with you and not with the state. The state has no moral foundation without the consent of the governed. Do you consent to a life of bread, circuses and debt enslavement? Have future generations who will bear an even greater burden given their consent?

    If and when the system does come apart and we successfully learn, as free individuals, to take care of ourselves and our families and our society will we be stupid enough to ask the politicians and bankers to take back the reigns of power and run our lives for us again?

    Regarding fractional reserve banking, it’s worse than Mannarino says. The banks don’t simply lend out ninety percent of deposits. They can lend out nine hundred percent of deposits through the ten percent fractional reserve scheme.

    Most folks think that if you deposit $100 in a bank then the bank can lend out $90 based on a ten percent reserve. But banks can issue new debt through loans in the amount of $900 for every $100 in deposits under a ten percent reserve scheme. That’s right, folks — they lend out money that doesn’t exist until it’s credited to an account. In my understanding banks currently lend out only (!) about three times their base deposits but that still means that for every dollar deposited the bank has lent out three dollars. If four people each claim one of those dollars they each think that they have a dollar in the bank but only one dollar ever existed as an actual deposit. Those bank runs out to be fun.

  4. Dwain

    Cyprus PMs voted down EU help. Germany does not want to bail out Russians.

    Will be interesting to see what happens when banks open, if they ever do. You can bet the propaganda ministry will do its best to play down banks runs. Need campaign scaring people to pull money from banks. Banksters need to be brought down.

  5. Frisco Vigario

    You said it Greg – “Welcome to the hotel California”

  6. scott gay

    greg,

    for some reason the sound on your video has gotten very low lately. if there is something you could check, that would be great. your videos are the only problem i have, others are fine.

    like your material.

    • Greg

      Scott Gay,
      Some of that is out of my control because of Internet speed and connections. Thank you for the feedback and for supporting the site.

  7. Patriot Ken

    The nations of the world need to implement what Iceland did to the Bankers. The Bankers are responsible for the financial mismanagement so mismanaged that it brought Iceland’s economy crashing down. These crooks are now imprisoned and the Iceland economy is now producing positive results again.

    But here in America the Bankers are golden…so golden the DHS is now is preparing for civil unrest with EXCESSIVE armaments it’s purchasing when the financial system crashes. We as a people have forgotten about Liberty. May GOD help us.

    • Greg

      Amen to that.

  8. Craig

    Why aren’t other countries, i.e. Cyprus, Greece, Spain etc., following Icelands lead and just booting the banksters out and initiating their own central banking system? They basically threw every bank, except their own, out of their country and told the banks they OWED money to to take a hike! Now, two years later, they’re doing great, financially. Seems to me, that’s all it’d take for a country to absolve itself from the grip of the banksters. Ignore them!

    • justin king

      The beauty with Reykjavik is that everyone knows everyone.- It was the mindset of one city that was able to punish the Banksters. Unfortunately, these other countries are too big and sociologically spread out to be able to come to any “one mind” solution.

    • John

      I believe Iceland is the one of the few countries left that the citizens still have the right to bear arms.

  9. AndyB

    Greg: our bank deposits are already being stolen (devalued)due to ZIRP and actual inflation of at least double digits YOY, regardless of the government produced CPI propaganda which omits food and energy from consideration. That’s bad enough, but there are far more insidious icreases now visible (and coming) via Obamacare, property tax reassessments to balance local government budgets, and a rise in auto and property insurance premiums to offset the investment losses of the major carriers. There should be no illusions or denials any longer; the middle class is being purposely decimated.

    • Greg

      Agreed. What a ripoff. Schiff says it amounts to around $400 billion a year in reduced interest.

  10. Shadow of Doubt

    Hi Greg,
    Another great interview! But I think one of your past guest, Catherine Austin-Fitz, said it best. “Our financial system is set up to harvest the simple and the weak.” The generation that survived the “Great Depression” learned that lesson the hard way and kept what they had in their matresses there after!

  11. David Lynch

    Greg and Greg,
    Why does Greg Mannarino, knowing what he knows, encourage anyone to be involved in trading in these corrupt casino’s called markets.You can lose everything at the push of a button. Then, who are you going to call? I believe he is correct in being your own central bank. Jim Sinclair(Jim probably the brightest financial mind on the planet) has said that for some time. Why would I put my money in a brokerage account managed by individuals with whom I would not trust to hold my wallet for 5 minutes?
    Please comment……….

    Thanks guys
    David

    • Greg

      I personally am not a trader (I suck at it) but traders have analysis worth listening to.

  12. Al

    There is much more to this unfolding event than we’ve been told. Cyprus is the Cayman Islands for the Russian K.G.B. The I.M.F. tried to steal money from the Russian mafia. Do you really want to anger Putin? These “wise guys” never forget nor forgive. The MSM mentions $130 billion in mighty loose terms. Think in terms of 100 times that. One Russian “business” man may have $100 billion stashed there just by himself. Jim Sinclair at King World News has a keen insight into this mess, and is required reading for those who wish to visualize a greater scope into the eventual impact Cyprus will have on the I.M.F. and us. Gold prices, according to Sinclair, will be headed much higher as the world leaves paper currency for hard assets. Nice job Greg. [as usual]

    • Greg

      Now we find out the banks are NOT going to open in Cyprus tomorrow. The plot thickens. The banksters want those deposits and that is all there is to it.

      • Chip

        They need time to make a deal with the Russians. They can’t open the banks until they announce something or put capital controls in place because there WILL be and bank run in Cyprus at a minimum. Other EZ countries might follow especially Italy, Spain, and Greece…

    • BOB D

      Gang warfare is the system of the world, always has been always will be. Drug running,wars of profit, it’s the oldest game right next to prostitution.
      During all out war the dress line goes up and vice is were the war profits flow.
      Thank God the gun grab is dead. PEACE, LOL

      • Greg

        Amen to that Bob D.

  13. Ronny Charles

    Greg -

    good stuff – the good news is there is an answer –

    I sent you a link to the latest news on how the leaders of the US Congress are fighting to keep Glass-Steagal 2.0 out of the congress.

    The US has to create a huge firewall between ordinary people and local banks from the criminal Investment Bankers who are making these incredibly leveraged “synthetic derivativeS” in the quadrillions of dollars.

    The “bailouts” a few years ago were “strong-arm” robbery, where the people were paying off the criminal “derivatives” losses for the criminal investment bankers.

    Here’s a thought – How about a REFUND? ( just kidding….)

    The firewall is crucial and key to protect ordinary folks from the investment banks. THE FIREWALL is KEY !!! THIS CAN BE DONE THRU LEGISLATION.

    Try to talk to one of the Lyndon Larouche guys about the “firewall” – they have been working on this for years, they have the very best answer.

    Then the US has to (maybe) go into receivership (bankruptcy) just like what FDR did to recover) and hit the big reset button.

    The FIREWALL is the key to saving ordinary folks, local banks.

    Ask the Larouche folks for some written EIR materials on this FIREWALL issue, and please take a 2nd look at the link I sent you a few days ago re:

    “Congressional leadership fighting Glass-Steagal 2.0″

    Your good buddy

    Chuck
    Va Beach

    • Greg

      Thank you Chuck for bringing this topic up.

    • Darren

      Ronny Charles said, “The FIREWALL is the key to saving ordinary folks, local banks.”

      The only saving I need is from government not by government. I didn’t initiate an unsound currency standard, set interest rates too low in order to create financial bubbles and sit by claiming that when those bubbles popped that no one could have seen it coming. Every single systemic financial problem extant was either created or exacerbated by government action. Who in their right mind would look to politicians to clean up the mess which they intentional created and by which they profit?

      Let my people go.

    • justin king

      Va Beach + Lyndon LaRouche = PERFECT

  14. Serge

    Doe anyone else think the timing of this scheme is suspicious? John Williams on this site projected a US dollar sell off for next month. Seems to me that this destabilizing move of the Euro may have been engineered by the Fed to buy the dollar more support and time.

  15. Brandon

    Fine interview Greg. The consensus is mounting that we are entering dangerous waters. I just hope folks are paying attention…

  16. john hand

    we were not loaned any money for our debt only credit [money is only gold and silver coin] that is why everything the bankers say is credit or cash they never say money. there fore we can create our own monopoly money just like they do and pay them back to give them any thing real for there illusionary debt is nuts

    • Greg S

      It’s not quite that simple John. Whether the ‘money’ loaned out was credit, an account balance or a cash withdrawal from the account credited with the loan, it all has purchasing power. ‘Repaying’ the bankers with fiat money, even if created by “our own monopoly (government)money”, gives them purchasing power. That purchasing power, whether created by the banking system or the government, is an expropriation of purchasing power from the sum total of all other (non-precious metal) ‘money’ out there. The main difference is that the banks get to charge interest on the ‘money’ of their creation, which adds insult to injury, but both mechanisms of fiat money creation are fraudulent. They both create demands for real wealth without any commensurate wealth creation, thus diluting the purchasing power of the existing money/savings/earnings.

  17. Troy

    Mahalo Greg,

    Important accurate info IMO.
    People will wake up now? They will live in denial until they have NO other choice is my prediction. You can lead a horse to water, but you can’t breach ‘belief’ It can’t happen here everything is fine ;)

    • Greg

      Troy,
      Many will wake up when they have to and then it will be waaaay too late.

      • Troy

        BINGO!

        I reakan whee gust more edumacated than them utter pepoles ;)

        Even though this is a totally convincing reality for me in every way, … condemned to know the future but to be disbelieved; Hence the agony of foreknowledge combined with the impotence to do
        anything about it. At least I already had all my wealth stolen :)

        Enjoy the freak show.

  18. Ugly

    Greg,

    In one way, who is winning. Most people do not own their homes. If they walk away during a collapse, that debt is held by someone else. Now if I pay off my home and own it, then they can confiscate something of value. They could take home, or even tax at a higher value.

    It seems like this entire system caters to cheaters, liars, and frauds. The saying Nice Guys Finish Last is true. I wonder who really wins.

    Thanks for all the good articles. I will choose to get debt down.

  19. Paul Severe

    Can you believe that the criminals in charge in Cyprus werre going to pay for their financial crisis by pillaging bank depositors money to the tune of 10%, calling it a tax. Of course, for the “poor” people (those with less than 100,000 Euros) would only be pillaged of 7% of their money. The only reason the elite bailed out on this plan is because it was going to trigger the “Mother of all bank runs.” People were saying “Hell no!!”

    Is there any wonder why they want to outlaw guns in this country? It’s because they realize that when peoples’ hard earned money is stolen, all hell will break loose. Cyprus is just a test run.

    • Greg

      I think there will still be bank-runs when they reopen in Cyprus. This is far from over.

  20. jc davis

    Greg I read this , and found it interesting that banksters will sue banksters. yet congress will not admit any criminal activity. see link.
    http://www.businessweek.com/news/2013-03-19/freddie-mac-sues-multiple-banks-over-libor-manipulation

    • Greg

      Congress acts as if it is not going on when they know full well it is proving both parties are a scam.

  21. Reader

    Jim Willie said extreme events were becoming the norm in the financial world such as this latest Cyprus caper. (So we should be on the lookout for them!!) Anyway, I have to agree with both of you that playing it safe and protecting wealth is the right game plan. Finally, If what people fearsomely call a “collapse” occurs, the silver lining is that people will be much more strident and active in demanding accountability and working solutions from the new politicians that must sweep into office in the US Government. Some people say that we will wake up and be in a new ‘ugly’ world – what Willie bluntly described as Fascism. All the same, we are living in an era of phenomenal and quite challenging change – and as Gerald Celente said – we need to get in shape on every level – on the Physical, Mental Toughness and Imaginative/Creative level. America is NOT going to go away and the American people are not going to go away – Bottom line.

  22. ManAboutDallas

    This is now Black Swans vectoring in from all points of the compass with their afterburners lit.
    Here it is, in plain and simple terms : the IMF and the ECB have picked Vladimir Putin’s pocket. Or tried to. They tried to pick his pocket just as surely as if he’d been walking down a street in Brussels, Belgium. On the Scoreboard Of Dumb Moves, this is a 150 on a scale of 1-100.
    It’s a funny thing about Russians. They don’t get mad… neither do they forget. What they do is….. get even. Writ LARGE.

    You can bet your last soon-to-be-worthless Dollar ( better do it soon, too ) that Putin will be telling the Russian Central Bank or whomever oversees the Kremlin / New KGB gold these days to double-down on EVERY dip in gold, from this point forward. And New Guy In China will be telling the PBOC to front-run the Russians every once in a while, just so they won’t have all the fun of tweaking the West’s nose.

    • Greg

      Man,
      This is rich!!! “This is now Black Swans vectoring in from all points of the compass with their afterburners lit.” Love it.

  23. Vess

    Several points there:

    1) While I personally agree that Cyprus is probably a “test case” to see what the people will bear, there is another possible explanation. The EU told Cyprus – we’re going to give you a bail-out loan, but you have to come up with 40% of the money yourselves. That’s all, and by itself it’s not that unfair. Not liking the terms, the Cyprus government came up with this plan how to get these 40% – in a way which it *knew* would be wildly unpopular and will never pass. Now they can tell the EU – sorry chaps, we tried, it didn’t work out, the people wouldn’t permit it, now pony up with the rest of the money or else.

    2) It is perfectly possible that when the banks eventually open, the people will discover that their money hasn’t really been stolen – but is no longer euros. Instead, it has been forcefully converted into some other currency (which can be devalued at will) and Cyprus is no longer in the eurozone.

    3) There is a HUGE difference between Cyprus and the USA. What was threatened to be done in Cyprus will never be done in the USA. There is no need. Unlike Cyprus, the USA can print its own currency without limits. Instead of being stolen directly, the money of the US citizens will be stolen through inflation. The FDIC is designed to bail out single banks. For that purpose, it doesn’t need more money. If there is a bank run and/or banks start failing en masse, the Fed will create an unlimited line of credit to the FDIC. Not a single cent will be lost. Only the purchasing power of the US dollar will go up in smoke.

    4) You CANNOT “get out of the banking system”. Our whole lives are based on it. At most, you can convert your inert savings into hard assets. (Which you are going to keep where? In a safe deposit box? FDR stole them from there too. In your home? Are you sure you want to take the risk of gangsters invading your home and torturing your loved ones until you show them where your gold is?) But what are you going to pay your bills with? You need a bank account and enough US currency for that. Try buying a car, or groceries with gold. And most people don’t have much more than what they need to cover their everyday needs.

    • Greg

      Vess,
      First of all good to have you comment again. I missed you man!!! I agree with most of your points but what has happen in Cyprus has already happened, in a way, to the U.S. It’s called 0% interest rates policy or ZERP. People like Peter Schiff say it effectively is like stealing $400 billion a year from depositors if interest rates were normal and not suppressed by the Fed. Yes the U.S. Treasury backs up the FDIC with a $100 billion credit line but I am not so sure the Fed will print unlimited money to bailout the “little people.” There is only $33 billion in the FDIC DIF (deposit insurance fund) This is what is supposed to back up $10.8 trillion in deposits. I am not saying the government will not print, I am asking what are the ramifications for more massive printing in the wake of another Lehman style event. There is another crash coming how big will it be is the question? Thank you for weighing in here!
      Greg

      • Vess

        What Shiff says is true – but it is NOT what they tried to do in Cyprus. It is what I said will be done – stealing the money of the savers via inflation. With ZIRP, the real interest rate is negative, so anybody with savings in US dollars keeps losing purchasing power. But there are no nominal losses. In Cyprus they actually wanted to steal the people’s money directly. If they could do it via inflation, they would have never tried direct theft.

        Trust me, they will print. As much as they deem necessary. That’s the only thing they can do. And when it doesn’t work – they will print more.

        If you read a description of what was happening in Weimar Germany during the hyper-inflation, you’ll see that the pundits there were claiming that the problem was caused by not having enough money circulating around, as ridiculous as that seems to us nowadays. Because of the inflation, the velocity of money increased tremendously (workers were paid twice a day and their wives waited them at the factory gates to get the money and run and spend it, before it got devalued even more), so people kept running out of money. Thus the conclusion of some “experts” that there wasn’t enough money to go around and the government should print more.

        I “disappeared” for a while because I had stopped reading articles on economics. It’s just too depressing. Years ago, I just saw a catastrophe coming and was looking for bright ideas about how to avoid it. But we reached the point of no return in 2008. The catastrophe cannot be avoided. It is already happening – it will just take several years; it won’t be a single moment. Rome didn’t fall in a day. Then I though of how much happier (at least for a while) were people who didn’t know what was coming. I wish I didn’t, either, honest. But Cyprus is too close to home (I’m in Bulgaria), so I just had to read about what was really happening there – the mainstream media is useless, as usual.

  24. Liquid Motion

    Greg,

    “debt slaves & twisted system”. Love it…!!

    It gets more perveted the harder you look.
    If you’re not looking, heaven help you.

    Fractional reserve banking practices are indeed a worry. Its strength lies entirely on confidence in the banking system. Lose that confidence and banks are forced to close their doors. Dangerous game that the “REGULATORS” or “BIS” have never addressed.Given the fragility of the system it should have been #1 priority.

    To compound the fractional banking issue no one has brought up the nasty things called “Covered Bonds”. Corporates (including Banks) issue these debt securities. The real elephant in the room here is that these covered bonds are securitized. That implies there is recourse to a pool of assets that secures or “covers” the bond if the originator (usually a financial institution) becomes insolvent.
    That pool of assets includes BANK DEPOSITS. Holy c#%p !!!!
    Who do we have to thank for that touch of brilliance…none other than Hank Paulson (former Treasury Secretary), The FED and the 4 USA Banks… circa 2008. Damn fine work gentlemen.

    As for getting your money out of the banking system and into hard assets where it is free from the clutches of the Banks/Government…sound advice. But wait a minute…..you think that because you have hard assets you are safe. If they can’t tax your deposit accounts they gonna come after your assets with any variety of tax you can imagine….Assets Tax, Wealth Tax…call it what you will….you cannot escape unless you literally “escape”. Here come those NINJA’s.

    Now back to Greg’s first point….debt slavery…..once you are in the system….you cannot escape. Truly SIC.

    • John

      “That implies there is recourse to a pool of assets that secures or “covers” the bond if the originator (usually a financial institution) becomes insolvent.
      That pool of assets includes BANK DEPOSITS”

      That is exactly what they did to MF Global. Seized customer money.

      Americans are going to be caught off guard here too, when the system goes down, they think they are insured.

      They need to withdrawal their money now,while they still can, and invest in silver, gold, or cheap land.

      Not to mention some food & water for emergencies.

      • Greg

        John,
        I think this is one of the great unknown facts about our banking system!! Thank you for continuing this string!!!

        • Liquid Motion

          Greg,

          Please do follow up this issue. It puts the depositor in a new category and exposes them to a level of RISK that they could never have imagined.
          Bank runs are not possible where there are no assets (funds) to cover withdrawals – because they have been confiscated to offset the demands of bond holders. An estimated $11 TLN already at risk in the US banking system with projected increased levels of savings is not something to disregard unless you want to become beholden to the STATE….forever..!!!

          • Greg

            We are so screwed snd folks have no idea. Thank you.

  25. Bob Cooper

    Makes me think of a huge dam, with a vast deep body of water behind it. The water (debt) has been spilling over the top since 2008.
    All kinds of emergency measures are being desperately tried, but the mass of water keeps increasing…the groans from the dam are getting louder,cracks appear echoing with a loud shot.
    Now a huge chunk of concrete and rebar has exploded out…who’d wanna live downstream,in the way of this thing?

  26. BLT

    Go get em greg! Were listening.

  27. Jerry S

    What is 10% of almost 11 trillion in deposits? That’s a more than trillion dollar illegal seizure possibly coming to America soon, and it will come and it may be an even higher percentage. And STILL it wont fix anything and only prolong the inevitable.

    I pretty much think that would be the tipping point to wake America up finally. At least its in the open and not hidden like inflation and devaluation. You don’t need an education in economics to figure out you just lost 10% or more of your bank account. Of course with all of that its over anyway and now its the people in power and banksters SCRAMBLING to come up with new schemes.

    Looks like the old confidence game is going down, finally.

  28. Willaim Chandler

    If they are “too big to fail/jail” …… HANG them.

  29. FNPMItchreturns

    Good interview Greg, I always enjoy Gregory and his accurate assessment. I wonder if people realize where the bad Cypriot came from. I you look closely you will see that two “public” banks lost their butt in Greece and got a 75 percent haircut on about a seven billion Euro investment. Then the government nationalized the bank instead of letting them fail. I have yet to hear who set up the deal to nationalize the banks but you can bet a bottom dollar that it was bankster driven. Hence, the country needed a bailout ….. to pay for the bankers bad bets!

    This is not an isolated happening but a calculated game plan to steal money from country by monetizing losses and privatize profits..

    Here is link to a thread on ATS

    “Are people too dumb to see what is going on in Cyprus? Another bankster implosion!”

    http://www.abovetopsecret.com/forum/thread934202/pg1&addstar=1&on=16100371#pid16100371

    • Greg

      Thank you for the comment and link!

  30. Mountainaires

    Good interview. Scary stuff; so, he doesn’t say, but am I to presume that when he says “real assets,” he means Gold and Silver? Any other “real assets” he may be speaking of? Stocks for particular sectors, perhaps?

    • Greg

      I think he means tangible assets.
      Greg

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