Financial Cycle and the Coming Collapse

Florian Godovits
Epoch Times
Tuesday, Oct 28, 2008

No one really knows the future of the world’s economy. However, the Viennese investor Walter Eichelburg had an inkling during past years. In the beginning of 2007, he predicted the collapse of Fannie Mae and Freddie Mac during an interview with The Epoch Times.Eichelburg looks pragmatically at today’s situation and explains that we are at the end of a 50-70 year Kondratiev cycle [1]. The resulting consequences don’t look rosy at all.

“Most of the countries and banks will be bankrupt by mid-2009,” predicts Eichelburg. He is adamant about this.
He bases his prediction on the present “Kondratiev winter,” the last phase of a financial cycle which began in Germany in the year 1948 with the end of the “Kondratiev spring.”

The Kondratiev winter was already underway in 2000. During the final phase, as a last resort, hyperinflation will bring with it a massive change towards gold.

“When the financial Titanic sinks, one wants to be able to pay, under all circumstances, for the life boat,” said Eichelburg emphatically. He also stated that an ounce of gold at $3,000 will be cheap.

(Article continues below)

The reason gold prices have not escalated is because central banks depress gold prices by selling off large quantities of gold and derivatives. In the end, central banks might also have to declare bankruptcy. Central banks’ rescue operations of banks will be based on this development, because they will print paper money in large quantities.

“The bailout operation will lead to the demise of the respective countries,” said the convinced gold investor.
He predicts that after Iceland, Hungary will be the next country to declare bankruptcy, then Romania and the Baltic States. The Euro-zone will also face dark times.

“The Euro-Zone might fall completely apart,” said Eichelburg.

Most likely, Germany and Austria will also be affected. At this time, the Austrian banks are having quite a problem. The reason is they handed out “unbelievable amounts of credit” to former Eastern bloc countries. Their high trade imbalance will affect Europe and will make them quite vulnerable during any crisis.

One only needs to remember 1931, when the credit subsidiary of an Austrian bank triggered the demise of European banks.

Based on Eichelburg’s assumptions, since we all, politicians and economists included, did not learn from the past, we underpinned the recovery. At that time, the politicians’ response was exactly as it is today. They nationalized the banks. Then they severely criticized high earnings and capped salaries. These are actions that were taken during the actual crisis in the United States, Great Britain and also to some extent by other national governments.

Eichelburg reasoned during the interview why we are at the end of the financial cycle and suggests to small investors, “Let go of your faith in the establishment and let your common sense govern.”

He actually holds bank management in the system not quite as responsible as is commonly believed. He says, “They just don’t know what to expect.”

Also, the media will get its just desserts. The most prevalent problem is the “Bubble media,” that was responsible to a great extent for the emergence of the speculative bubble.

Notes
[1] The Kondratiev wave/cycle theory was discovered by Nikolai Dmitriyeivich Kondratiev (1892-1938), a Russian economist. Proponents of the Kondratiev wave theory note it successfully predicted the 1929 stock market crash based on the 1870 crash. The Kondratiev wave is also referred to as the Kondratiev cycle.

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20 Responses to “Financial Cycle and the Coming Collapse”

Steve Says:
October 28th, 2008 at 7:41 am
Eichelburg is not the only economist who saw this coming. See what Lyndon Larouche has to say at http://www.larouchepac.com. He predicted the entire collapse of the monetary system in July 2007 and we are in the middle of it now.
Scott Fox Says:
October 28th, 2008 at 7:44 am
This jives with the Telegraph article,

IMF may need to “print money” as crisis spreads

http://www.telegraph.co.uk/fin.....reads.html
Kshatriya Says:
October 28th, 2008 at 10:51 am
Larouche is a communist is he not?
global plantation serf Says:
October 28th, 2008 at 11:41 am
Can’t we get people in office who are not sell-out Republicans and Democrats? I want people who represent me, not the media. Only people brainwashed by the media justify Republicans and Democrats.

History is filled with financial panics where what I usually see is a credit bubble that bursts. So yes, this could have been predicted. The people in office should have foreseen this and regulated it. But they did nothing and now they will be re-elected? Don’t vote for them. Write-in ALL of your candidates.
Networkingman Says:
October 28th, 2008 at 1:00 pm
So Summer of 2009 looks like the US Gov’t will go BK. So what would be the next logical steps? Repudiate the national debt and replace the currency? What else is there?
johnny lago Says:
October 28th, 2008 at 1:53 pm
keep in mind, gold was confiscated during the last depression to fund the banks. keep numismatic coins or go to silver…ultimately though, lead will likely rule during this one…
Mikey Says:
October 28th, 2008 at 1:54 pm
if you want the best 911 info ask your self this why wont alex have these guys on this show http://www.thepentacon.com

also check out http://www.donaldtrumphair.com i cant figure it out why i think bermas is butt hurt thats why cool stuff tolook at bb
jerry Says:
October 28th, 2008 at 2:04 pm
the whole financial collapse is an orchestrated event. the NWO can not create a one world society and currency without first destroying what’s already in place. there will be a mass forgiveness of debt extended to all countries (including the U.S) in exchange for the elitists financial sector to create the system they so desperately want. At the time, it will sound like the only real solution. just like this bailout was sold to the American Public as the only solution. In reality, Americans knew better but were overideen by the corrupt politicians once again. in the not so distant future………… act II

this NEW society is coming upon us like a bullet train.
Major Party Mafia Says:
October 28th, 2008 at 2:15 pm
#4 write-in rules.

2008 Presidential Election Write-In Rules
Rule 1 – Write-in votes will not be counted if the candidate does not file as a write-in candidate.

Rule 2 – Write-in candidates are not allowed in presidential elections.

Rule 3 – A candidate losing the primary cannot file as a write-in candidate in the general election.

State Rule 1 Rule 2 Rule 3
Alabama
Alaska X
Arizona X
Arkansas X
California
Colorado ?
Connecticut ? ?
Delaware
Florida X
Georgia X
Hawaii ?
Idaho X
Illinois X
Indiana X
Iowa
Kansas ?
Kentucky X
Louisiana
Main X
Maryland X
Massachusetts ?
Michigan X
Minnesota ?
Mississippi
Missouri X
Montana X
Nebraska ?
Nevada X
New Hampshire
New Jersey
New Mexico X X
New York X
North Carolina X
North Dakota ?
Ohio X
Oklahoma
Oregon X
Pennsylvania
Rhode Island
South Carolina X X
South Dakota ?
Tennessee X
Texas X
Utah X
Vermont
Virginia X
Washington X
West Virginia X
Wisconsin
Wyoming X ?

http://mfoster.com/misc/write-in_rules_2008.html
Here is What we are Facing Says:
October 28th, 2008 at 4:19 pm
I’m afraid that Walter Eichelburg is correct in his assumption. And if he is we are facing a truely historic crisis. Now if you wnat to protect yourself & your family you may want to know the following information.

http://www.youtube.com/watch?v=NRPLujl8v3s

This is the reality we are facing.
bthafree Says:
October 28th, 2008 at 6:03 pm
Thank you Heavenly Father for you mercy, your grace, your love for the world in sending your only Son(Christ Jesus)! Thank you King Jesus for your ultimate sacrifice, your perfect example, your love that surpasses knowledge, for dying on the cross while we were still sinners. Come King Jesus, come!
9th1 Says:
October 28th, 2008 at 8:21 pm
Congress grew 13 percent richer in 2007
By Rob Hotakainen | McClatchy Newspapers

WASHINGTON — Times are tough, but don’t worry about most members of Congress making ends meet.

Their collective wealth grew by 13 percent last year, leaving them in better shape than most Americans to make it through an economic downturn, according to a new analysis of personal financial reports.

Overall, nearly two of every three senators are millionaires. That includes presidential candidates Sen. John McCain, R-Ariz., and Sen. Barack Obama, D-Ill. In the House, 39 percent of all members belong to the exclusive club.

Only 1 percent of all Americans are considered millionaires.

“With a median net worth of $746,000, most members of Congress have a comfortable financial cushion to ride out any recession,” said Sheila Krumholz, executive director of the nonpartisan Center for Responsive Politics, which conducted the study.

Because the law does not require them to do so, members of Congress don’t disclose the value of their homes unless they produce income. As a result, a member’s true net worth is likely to be much higher than what gets reported.

http://www.mcclatchydc.com/226/story/54838.html
__________________________________________

You know, maybe a good ” old fashioned ” house cleaning is in order. Grid-locking DC with the 18 wheelers, and motorcycle gangs, and then just shutting the whole rotten mess down. Throw all of the lying ass carpet bagging bums out of DC for good. Then start all over again with a whole new staff of highly qualified Americans who are out of work and have lost their jobs because of the corrupt gang of bankers and lawyers and legal-eze gangsters who are now in DC.
John Galt Says:
October 28th, 2008 at 9:43 pm
A list of names and photographs of those responsible needs to be published so every American can read it and know exactly who they should be looking for.
jlailman Says:
October 28th, 2008 at 11:19 pm
Man oh man, I am not one to quickly buy in to these doomsday predictions from ancient times but it certainly looks like we will be lucky to even see 2012. All indications are that the entire world’s economic system is set to implode sometime over the next 24 to 36 months. Good grief Charlie Brown! For those of you reading this post and this article are still light years ahead of the ignorant masses which won’t recognize the problem until the tanks come rolling up Main Street. Good luck everyone for I fear it’s going to be a free for all and every man will be for himself…kind of like in caveman times.
Jerry Fletcher Says:
October 29th, 2008 at 12:02 am
yeahhh, so you buy the gold, you have it sitting under your mattress, BOOM! the economy goes to shit, hyperinflation has sacked consumers nationwide, but oh wait who is going to be able to buy that gold from you when most everyone is broke. Better yet how are you going to keep from getting robbed and or killed for your precious 1oz. chunk of metal when you go to make the exchange? are corner store shops really going to shell out a potential $3000, what if you want to unload 2oz. of gold, $6000, REALLY? will they even be able to? or will they all be closed down by that time, i guess i’m not really understanding how this is all supposed to play out. I may sound angry because i am very worried.
Heather Lewis Says:
October 29th, 2008 at 2:21 am
Here is a story we should all be concerned about.

http://www.kcoy.com/Global/story.asp?s=9238122
a fleeced sheep Says:
October 29th, 2008 at 5:27 am
Attention all really maaaaad sheep. Secrecy is the cornerstone of all secret societies. They think that the chemtrails have us in oblivion and careless. Wannnna really give them a jab and make them writhe and squirm………I do. So go for it, spread these littlle nasty secrets around and google them.. I got 6 cars outside my house and cracked up when they about hit eachother. Different surveillance guys for different groups/orgs. HERE IT IS uaff.us and check out my chemtrail shots pnac and attenuated h5n1 haarp weatherwars stevequayle.com…see weatherwars and my story cern and pole shifts plum island and erik traub plum island and lyme crystalline brucella and fort deitrick biowarefare agents du in iraq du in afghanistan bush, clinton and paraguay land grab monsanto and roundup resistent crops norway seed vault and monsanto halliburton rex 84 operation paperclip gandalf ipto planet nibiru/eris and 2012, it is the 12th planet from earth and named after the goddess of conflict….hmmm let’s see what other naughty secrets we can dredge up and pass around csx and fema camps north american union and rewilding of america demonic symbols denver airport illuminati symbols and gestures the bohemian grove attendee list freemasonry ipto nasa and mars structures nasa and nibiru mycoplasma and gws operation red sky operation echelon operation red sky tuskeegee experiments on genetic targeting of disease illuminati/bones and yale. Yawn, that ought to really stir up the behive. Never give up the fight read enoch and thomas and ronald weinlands books, love, a baaaaaaaad sheep raaaaaating on the creeps, Annie
Internal Patriot Says:
October 29th, 2008 at 5:29 am
From the looks of all the blogs on this site…it will take a smarter, less fearful and more resilient generation to move what has happened within this current economy into a more workable solution to protect the taxpayers and this country from what has been done thus far. Someone will use this system, its processes and its laws to their advantage instead of using them for some personal “gold star” from their daddy.

One good thing is that we have seen what doesn’t work and how it shouldn’t be done. Now there’s a reference point.
Shoestring Patriot Says:
October 29th, 2008 at 9:38 am
#16 Jerry,

I have the same concerns. I think Gold and Silver will have a place established among those that set up a bartering type system after the coming collapse. There are going to be major problems however for those that don’t prepare, regardless if they own Gold or not. You cant buy food or medicine with Gold if the shelves are empty and the supply chain breaks down.

Don’t worry, the “AMERO” will save us. A one world, RFID, system of trade!
A little bird Says:
February 9th, 2009 at 9:16 am
Be the change you want to see in others.