Goldman Sachs Issues A Report Outlining A Worldwide Economic Collapse

Alan Brazil is a strategist at Goldman Sachs who has distributed a report to their institutional clients on August 16th outlining an impending worldwide economic collapse. Considering the 5.27% drop in the stock market in the last 30 days, it seems like the institutional investment brokers believed this report.

The graph below also shows the impact on gold as it rose over $1900/oz in the few days following this report’s release.

The report was leaked to the Wall Street Journal:

Goldman Takes a Dark View

A Private Note to Hedge-Fund Clients Gives a Strategist’s View; Ways to Gain From Global Pain

A top Goldman Sachs Group Inc. strategist has provided the firm’s hedge-fund clients with a particularly gloomy economic outlook and suggestions for how these traders can take advantage of the financial crisis in Europe.

In a 54-page report sent to hundreds of Goldman’s institutional clients dated Aug. 16, Alan Brazil—a Goldman strategist who sits on the firm’s trading desk—argued that as much as $1 trillion in capital may be needed to shore up European banks; that small businesses in the U.S., a past driver of job production, are still languishing; and that China’s growth may not be sustainable.

A longer report is shown at the end of this article. What actions should be taken to prepare for this collapse? Gold has experienced a correction but the price of gold is expected to be $2100/oz by the end of the year. This may also be the reason that the United States has stopped selling all gold coins. DXD is an ultrashort Dow stock that makes money if the market declines. Staples like food, clothing and essential supplies will only increase in price as they have over the past three years.

David DeGerolamo

Goldman Sachs Secretly Believes That An Economic Collapse Is Coming

Goldman Sachs is doing it again. Goldman is telling the public that everything is going to be just fine, but meanwhile they are advising their top clients to bet on a huge financial collapse. On August 16th, a 54 page report authored by Goldman strategist Alan Brazil was distributed to institutional clients. The general public was not intended to see this report. Fortunately, some folks over at the Wall Street Journal got their hands on a copy and they have filled us in on some of the details. It turns out that Goldman Sachs secretly believes that an economic collapse is coming, and they have some very interesting ideas about how to make money in the turbulent financial environment that we will soon be entering. In the report, Brazil says that the U.S. debt problem cannot be solved with more debt, that the European sovereign debt crisis is going to get even worse and that there are large numbers of financial institutions in Europe that are on the verge of collapse. If this is what people at the highest levels of the financial world are talking about, perhaps we should all start paying attention.

There is a tremendous amount of fear in the global financial community right now. As I wrote about the other day, the financial world is about to hit the panic button. Things could start falling apart at any time. Most of these big banks will not admit how bad things are publicly, but privately there is a whole lot of freaking out going on.

According to the Wall Street Journal, Brazil believes that “as much as $1 trillion in capital may be needed to shore up European banks; that small businesses in the U.S., a past driver of job production, are still languishing; and that China’s growth may not be sustainable.”


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Larry Porter
10 years ago

Goldman still publicly tells investors to avoid Swiss francs while in this report they recommend their people buy them as a hedge while shorting the Euro. Keep in mind, nearly all the financial gurus, Paulson, Gaithner, etc. have at one time or other worked for Goldman. The fix is in and we’re watching it unfold.
The Deutsche Bank, Royal Bank of Scotland and Unicredit (one of the largest in Europe) are all falling apart. Germany will most likely leave the European Union before year’s end since they are the biggest country providing bailout money. Finland started but others are quickly joining the group telling Greece to take a flying jump since they are balking at being told how and when they must put in austerity measures. If Greece can’t get a second bailout, we can watch Europe slide into the ocean. Then it will be our turn. I expect this to all happen very quickly.
The Black Caucus has called for violence and the Communist Party under the guise of unions have called for an Egyptian-type takeover of the Capital until they destroy Capitalism. What everyone hears from that side is the Cloward and Piven movement to fill the people with lies and continually throw insults and accusations at them to distract them. Obama continues to give the same speech: it’s been going on for 2 plus years now, for a reason. “Repeat a lie long enough and people start to accept it as truth.” He is not trying to solve any problems in this country. He is doing everything he can to create them. Ask the average, uninformed person on the street what should be done to solve the problem and they will tell you the rich need to pay their fair share. That is exactly what the thugs in UK were protesting. They think that if they destroy businesses, their problems will be solved. Go figure. That, my friends, is what we are up against. Prepare!

James Allen
James Allen
10 years ago

Larry, you’re right on the money!

10 years ago

What was once one house with one dream has become that which resembles a flea market. We have spoiled the children by sparing the rod. If America is to be taken back, it will not be easy and in some cases will be ugly. There is such a thing as being too free, as it allows the takers to take and take and they will not be happy when the vote buying politicians are out of office. No reasonable person wants to see force used, but it appears that it is the only thing radicals and takers understand and respect. They are willing to use violence to take America, and Americans must be ready to use it to keep America as it was meant to be: Free, up to the point of the abuse of freedoms by those who would take ours. They are already at our pockets, soon they will be at our doors. There are Americans, and there are U.S. citizens by birth, know the difference. Vote Conservative and buy gold.