Found this during my morning internet rounds...(from: http://survivalacres.com/wordpress/?p=1211)
January 11, 2008
Legendary Funds Manager Julian Robertson Predicts Utter Global Collapse Stemming From Bursting of Property BubbleIn
a recent interview on CNBC with Ron Insana, one of the “old-timer”funds
manager, Julian Robertson, predicted “utter global collapse” as a
consequence of the bursting of the world-wide property bubble.
Often called “Never Been Wrong Robertson”, the former head of Tiger
Management (once the largest hedge fund in the world), is extremely
worried about the speculative bubble in real estate.
Specifically, he is very worried about a world that is sustained by
American consumer spending which is in turn 1/4 sustained by a property
bubble. He predicts that 20 million people could lose their homes once
the property bubble bursts.
Even more worrisome, he thinks central banks around the globe out of
desperation will try to re-inflate the world economy with more
liquidity that will create an inflationary spiral unseen in the
economic history of mankind. “Where does it end?”, Insana asked
Robertson. “Utter global collapse,” he answered. But not just economic
collapse … collapse of epic proportions. Collapse and disintegration of
all infrastructure, including government. Inflation will run into the
double and triple digits. “Food production will fall. People will be
carrying around U.S .dollars in wheelbarrows like Germany,” he said.
There will be “total collapse of public infrastructure. Total
collapse of medical care systems. All public pension plans, Social
Security will collapse. All corporate pension plans will collapse.”
“The American consumer is effectively now supporting the rest of the
planet,” he continued. “Consumption rates in all other nations are
falling, have fallen to the point that the tax revenues to governments,
that the business and industries those nation states are providing is
now a net negative number relative to total debt service and public
cost, that this exists in virtually every nation state on the planet
And for much of this “doom”, interestingly, he blames the
Bush-Cheney “regime”. “They have now consolidated power and money on
the planet to the maximum extent possible. The planet’s net liquidity,
that is its, net free cash flow. Is now a negative number. The planet
is not simply sinking into a sea of red ink; it is already sunk. The
people just don’t realize it yet,” he said.
According to Robertson, “the Bush-Cheney regime is preparing the
nation for transition from democracy into dictatorship because a
dictatorship will be necessary to control, in 5 years time, food and
water riots.” He said “the federal government, that part of Patriot II
Act, the internal exile, that the government is going to have to build
now huge detention compounds on federal lands, probably in the West
where the land is available, to potentially house 50 million or more
citizens that will be in financial ruin.”
In 10 years time, whoever is left will be effectively starting
again, he said. “More importantly, and I’m trying to think how we imply
this or how we express this to the people, what extraordinary times we
are living in and how the destruction of the planet has been engineered
by the Bushonian Cabal from 1980 to 1992, and then from 2001 to
present, which has effectively destroyed the economic liquidity of the
planet,” he said.
*original source on bottom of the above linked page.
Also found some interesting, although possibly dubious, information here: http://worldreports.org/news/120_updated_embargo_sanctions_took_effect_noon_est.
(excuse the caps, just copying & pasting here...)
"Look at me, I'm quoting another user to show how wrong I think they are, out of arrogance of my own position. Wait, this is my own quote, oh shi-" ~ Nitroadict
I wouldn’t lose too much sleep over this. Robertson made a lot of money in the 1990’s using high-risk investment strategies, but the article doesn’t mention that he was wiped out in 2000. Apparently, he’s aggressively playing the yield curve now and, not surprisingly, it’s working. It will continue to work until the Fed decides to tighten, at which point he’ll probably be wiped out again.
Someone always seems to be predicting utter global collapse, but it never seems to happen. We still have a ways to go in liquidating the housing bubble, and recent actions by the Fed, the Bush administration, and congress will only make it worse, but we’ll make it through and the world won’t end.