Editor’s Note: The following report is excerpted from Jerome Corsi’s Red Alert, the premium online newsletter published by the current No. 1 best-selling author, WND staff writer and columnist. Subscriptions are $99 a year or $9.95 per month for credit card users. Annual subscribers will receive a free autographed copy of “The Obama Nation,” the blueprint for Obama’s first term in office.
Before the crisis ends, there will be civil violence and governments will be toppled, noted Harvard economist and best-selling author Niall Ferguson said.
Disagreeing with Federal Reserve Board Chairman Bernanke’s testimony to Congress last week that the economic recovery could begin yet in 2009, Ferguson warned, “There will be blood.”
“This is a crisis of globalization,” he said, according to a report of the speech published in the GlobalInvestor.com.
“A crisis of this magnitude is bound to increase political as well as economic [conflict]. It is bound to destabilize some countries,” Ferguson warned. “It will cause civil wars to break out that have been dormant. It will topple governments that were moderate and bring in governments that are extreme.”
Jerome Corsi’s Red Alert reports that Ferguson explained the current predicament as a crisis of debt leveraging.
“It’s a crisis of excessive debt,” he said, “and the deleveraging process has barely begun. U.S. consumers are not going to suddenly bounce back and hit the shopping malls just because they get a tax cut.”
Ferguson is well known for creating the phrase “Chimerica,” a combination of China and America that he concocted to criticize the phenomenon of the U.S. selling massive quantities of Treasury debt to China, as a means of financing massive budget deficits.
“If you think of it as one economy called Chimerica, that relationship accounts for around 13 percent of the world’s land surface, a quarter of its population, about a third of its gross domestic product, and somewhere over half of the global economic growth of the past six years,” Ferguson wrote in November, as reported by the Vancouver Sun.
He has cautioned that the U.S. cannot depend upon China to save so that it may continue spending.
On her first foreign trip, Secretary of State Hillary Clinton made a stop in China to politely ask the Chinese to keep buying U.S. Treasuries, Corsi wrote.
Now, Red Alert’s author, whose books “The Obama Nation” and “Unfit for Command” have topped the New York Times best-sellers list, reveals, “Yet, as much as the Obama administration would like to think the Chinese have no other choice, its government has been issuing none-too-subtle clues that the appetite for U.S. Treasuries is diminishing.”
Corsi received his Ph.D. from Harvard University in political science in 1972. For nearly 25 years, beginning in 1981, he worked with banks throughout the U.S. and around the world to develop financial services marketing companies to assist banks in establishing broker/dealers and insurance subsidiaries to provide financial planning products and services to their retail customers. In this career, Corsi developed three different third-party financial services marketing firms that reached gross sales levels of $1 billion in annuities and equal volume in mutual funds. In 1999, he began developing Internet-based financial marketing firms, also adapted to work in conjunction with banks.
In his 25-year financial services career, Corsi has been a noted financial services speaker and writer, publishing three books and numerous articles in professional financial services journals and magazines.
For more information on possible economic riots and for financial guidance during difficult times, read Jerome Corsi’s Red Alert, the premium, online intelligence news source by the WND staff writer, columnist and author of the New York Times No. 1 best-seller, “The Obama Nation.”
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