The Real 2012 Apocalypse


When the mainstream media says there’s a new looming financial crisis you know that someone is selling us a story. This time the spin is that U.S. government and corporate debt is about to blow up, making the subprime crisis look akin to the recent earthquake in Chile versus Roland Emmerich’s disaster movie, 2012. From the New York Times:

When the Mayans envisioned the world coming to an end in 2012 — at least in the Hollywood telling — they didn’t count junk bonds among the perils that would lead to worldwide disaster.

Maybe they should have, because 2012 also is the beginning of a three-year period in which more than $700 billion in risky, high-yield corporate debt begins to come due, an extraordinary surge that some analysts fear could overload the debt markets.

With huge bills about to hit corporations and the federal government around the same time, the worry is that some companies will have trouble getting new loans, spurring defaults and a wave of bankruptcies.

The United States government alone will need to borrow nearly $2 trillion in 2012, to bridge the projected budget deficit for that year and to refinance existing debt.

Indeed, worries about the growth of national, or sovereign, debt prompted Moody’s Investors Service to warn on Monday that the United States and other Western nations were moving “substantially” closer to losing their top-notch Aaa credit ratings.

Sovereign debt aside, the approaching scramble for corporate financing could strain the broader economy as jobs are cut, consumer spending is scaled back and credit is tightened for both consumers and businesses.

The apocalyptic talk is not limited to perpetual bears and the rest of the doom-and-gloom crowd.

Even Moody’s, which is known for its sober public statements, is sounding the alarm.

“An avalanche is brewing in 2012 and beyond if companies don’t get out in front of this,” said Kevin Cassidy, a senior credit officer at Moody’s…

[continues in the New York Times]


Majestic is gadfly emeritus.

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7 Comments on "The Real 2012 Apocalypse"

  1. See, the financial sector knows that the world ends Mayan-style in 2012, so long-term sustainability is totally unnecessary. Given the myopia of Wall Street, that sounds perfectly reasonable.

  2. This was a good post.

    I really wish this (2012) shit wasnt true, but theres not much reasonable evidence on debunking it. the theorist might sound crazy but the skeptics sound naive or in denial

  3. GoodDoktorBad | Mar 19, 2010 at 1:21 pm |

    I play with the thought that some cataclysmic event(s) causing a huge drop in the worlds population sometime in the not-so distant future seems almost inevitable. A virtual cauldron of potential terrors is on the boil. Most of them are, in an ideal and apparently unrealistic sense, avoidable if mankind were to gain a sense of harmony with each other and our common globe. Our earth could sustain all its billions if it knew how to co-operate. But it probably won't until everybody gets to sit in front of the fan as the shit flies. The earth will not continue to support us all at the rate we are going at destroying our own habitat. Who needs Planet X or meteoric annihilation? We can kill our selves just fine without those possibilities. Alas, it seems we learn nothing until we have no other choice but to do so or perish. In pointing this out I claim no immunity to hypocrisy. Earthquakes, tsunamis, financial meltdown, pointless wars for greed and dominance, deadly bio-plagues, mass enforced ignorance, slavery, usury and atrocity beyond comprehension tend to challenge the idea that everything is OK with humans. The earth will still be here if we are gone. If we don't balance with the earth, th earth will balance us out of its equation.

  4. Dr David Stickley | Aug 25, 2010 at 1:02 pm |

    Sounds like the United States has dug their own grave. They have been taking so much of our money for so long that they think there is a never ending supply of money to draw from the American people.

  5. Dr David Stickley | Aug 25, 2010 at 8:02 am |

    Sounds like the United States has dug their own grave. They have been taking so much of our money for so long that they think there is a never ending supply of money to draw from the American people.

  6. gotta get to a richer country…

  7. gotta get to a richer country…

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