"We are living in a dream, and we started to believe it."

Willem Middelkoop, a Dutch economist famous for its book on the weaknesses of the dollar and peak oil, stated in an interview on Dutch television a second crisis is coming.

He clearly states that the consumer, this time, IS NOT able to buy us out of the crisis. The American consumer counts for more than 25% of the world’s consumption and they simply have to watch their debts and cut spending.

’This is a structural problem which causes that structural recovery for the economy is not possible.’

Governments are now keeping the system alive, but it’s not natural. The American government pumped nearly 24 trillion dollar into the US economy for it to revive. How much of the rally we see today is unsustainable? How much is natural economic recovery?

The governments are using a drug for the economy: But it’s a very heavy drug causing very heavy side-effects. The drug might longer the life, but might not save the life of the economy. The heart of the system – capitalism and the free markets – already died since in America the biggest insurance company now is nationalized, 60% of the mortgage market is nationalized, the biggest car manufacturer is nationalized and the biggest banks are nationalized or need government funding.

According to Willem Middelkoop the next crisis will be in a few years where governments are not able to pay for their deficits anymore. The only way out of this would be to create extra money, this will result in worthless currencies.

The fact that the USA were already heading for a deficit problem in early 2007 is shown in this video:





Note that this is made in early 2007; in 2008 and in the beginning of 2009 there has been approx. 30 trillion dollars of additional spending... As part one stated that a 45,4 trillion on total fiscal exposure is like having a 750,000 dollar mortgage and no house. How bad is it right now?

If we keep on going like this...
"By year 2040 we can do little more than pay interest on the massive and growing federal debt. "

A change in the economic system is needed.

A possible new set-up would be to shift the banks to the public sector. Why did we give the ability to create money to private companies?Private – profit based – companies have the ability to create money and divide the profits made by doing this. Is this a fair system?

Currently we are creating something out of nothing.(read money out of air) That’s not possible, we should go back: make banks government owned again and link currencies to gold again.