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Economist Warns: Prepare for 2013 Global Meltdown

Friday, 13 July 2012 02:56 PM

NEW YORK — Investors need to prepare for an economic “perfect storm” that will push the United States back into a recession and create the real possibility of a global meltdown, according to famed economist Nouriel Roubini.

Living up to his nickname of “Dr. Doom,” Roubini recently laid out a terrifying scenario that will spell financial disaster for those unprepared for an “economic train wreck” in 2013.

The “perfect storm” that Roubini predicts is a convergence of four events: Emerging markets (especially China) are slowing down much faster than anyone expected; the eurozone is a complete mess, with Spain, Italy, and Portugal all teetering on the verge of insolvency; continued high unemployment; and rising inflation, which continues to threaten to push the United States back into recession.

Roubini also adds another worry: He expects a military conflict in Iran that will double oil prices “overnight,” adding to the financial misery felt by millions of Americans.

Unfortunately, the tricks the government used during the 2008 financial crisis won’t rescue the country this time.

Roubini points out that starting in 2008, the government cut interest rates and printed money in an effort to spark the economy. So far, several rounds of government stimulus have proven ineffective, and interest rates, already at zero percent, can’t be cut any lower. Roubini says that the government has now “run out of rabbits to pull out of the hat.”

That’s bad news for the U.S. economy and those with money in the stock market.

“Economic growth is going to [be below] 2 percent, the unemployment rate is high, job creation is going to be anemic. That’s a problem that’s going to get worse,” Roubini added. “The perfect storm is unfolding.”

As bleak as “Dr. Doom’s” outlook is, another economist and author says things could get much, much worse.

Where Roubini sees continued unemployment, rising oil prices, and a faltering stock market, Robert Wiedemer sees much more widespread economic destruction.

In a recent interview for his New York Times best-seller Aftershock, Wiedemer says, “The data is clear, 50% unemployment, a 90% stock market drop, and 100% annual inflation . . . starting in 2012.”

Editor’s Note: Watch the disturbing interview with Wiedemer.

Before you dismiss Wiedemer’s claims as impossible or unrealistic, consider this: In 2006, Wiedemer and a team of economists accurately predicted the collapse of the U.S. housing market, equity markets, and consumer spending that almost sank the United States, and published their research in the book America’s Bubble Economy.

When the interview host questioned Wiedemer’s latest data, the author displayed shocking charts backing up his allegations, and then ended his argument with, “You see, the medicine will become the poison.”

The interview has become a wake-up call for those unprepared (or unwilling) to acknowledge an ugly truth: The country’s financial “rescue” devised in Washington has failed miserably.

Shocking Footage:: See the eerie chart that exposes the 'unthinkable'.

But it’s not just the grim predictions that are causing the sensation; rather, it’s the comprehensive blueprint for economic survival that’s really commanding global attention.

The interview offers realistic, step-by-step solutions that the average hard-working American can easily follow.

The overwhelming amount of feedback to publicize the interview, initially screened for a private audience, came with consequences as various online networks repeatedly shut it down and affiliates refused to house the content.

“People were sitting up and taking notice, and they begged us to make the interview public so they could easily share it,” said Newsmax Financial Publisher Aaron DeHoog, “but unfortunately, it kept getting pulled.”

“Our real concern,” DeHoog added, “is what if only half of Wiedemer’s predictions come true?

“That’s a scary thought for sure. But we want the average American to be prepared, and that is why we will continue to push this video to as many outlets as we can. We want the word to spread.”

Editor’s Note: For a limited time, Newsmax is showing the Wiedemer interview and supplying viewers with copies of the new, updated ‘Aftershock’ book including the final, unpublished chapter. Go here to view it now.

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Friday, 13 July 2012 02:56 PM
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