I recently listened to a talk by Dr. David Martin, given at the Arlington Institute, a think tank I advise. You can listen to it here. It takes some patience to get to the main point — but you will be rewarded with a mind-blowing new perspective on what may unfold in the next few years.
Dr. Martin describes why he predicts a very likely total collapse of the US Banking system in 2008. Even more surprising is that he explains how the only hope for bailing out the US economy at that time may in fact be Muslim financial institutions — the financial entities of the Muslim world — because they are the most cash rich entities on the planet, and unlike our banks they are not exposed to intangible asset risks.
In other words, as Dr. Martin explains, if for no other reason than this, we should think twice before bombing Iran and the rest
of the Middle East back to the Stone Age — they may in fact be our
economy’s only hope and we may soon be in dire need of their help. This is a radical hypothesis, but based on very realistic data and in particular, new laws that are going into effect in the global banking world in January, 2008. On the other hand this could be Y2K all over again.
In any case, this is one of the more intriguing ideas I’ve come across in a long time. Please listen to the talk and then share it with other people. Dr. Martin’s hypothesis may or may not be correct, but it certainly should be heard by more people so that it can be debated and brought to the attention of global decisionmakers as soon as possible.Social tagging: Current Affairs > Defense and Intelligence > Government > Interesting People > Military > Politics > Society > The Future
wow, fascinating! the islamic monetary system has always interested me after i first read about the gold dinar several years ago.
Interesting perspective, one thing I don’t quite understand is that Dr. Martin seems to think cash is a tangible asset and that will be the reason for US going to Dubai for help. If the banking system does have a crisis like that, how can US dollar survive without collapse or serious devaluation? Every fiat currency has its own demise; many think fractional reserve system, easy credit, and governments nature are the real culprits.
Economy is to a great degree a game of perception and confidence, Fed will do its best to prevent that from happening — don’t underestimate the efficency of our printing press and plunge protection team.
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Although couldn’t open the link, it’s funny how this collapse is actually being confirmed at this very moment.
Going to the printing presses is what eventually led to hyperinflation in Weimar in Germany. Imagine the people back then using the paper currency as firewood coz it became more expensive to buy the real thing than just burn the worthless paper, people paying truckloads of paper money for a cup of coffee. The German mark going from 1:4 to the Dollar to 1 to a trillion to the Dollar in a matter of 9 yrs. A lawyer who cashed out his insurance money that he diligently payed for 20 yrs w/c was just good enough to buy a loaf of bread. Everybody should listen to David Walker the US Comptroller General who has a good grasp and statistics of this looming crisis in the US which I believe will accelerate when the boomers retire en masse come mid 2010. In my opinion the only way to save the US is a combination of higher tax rates, belt tightening, better appropriations of public funds and of course being more open to hostile but flush with cash countries.