The elite have banned the economic crisis

“Totally batshit crazy”

--Michael c Ruppert

IT'S OFFICIAL: The World's Elites Declare The Global Economic Crisis To Be Over

Business Insider,

27 January, 2013

We've been saying for a while that the age of crisis was coming to an end. And now the world's elites have made it official.

The economic crisis is over.

From Peter Coy and BusinessWeek:

The hive mind of Davos has concluded that the financial crisis is done, finished. 

The new worry: a bubble in the credit markets.

There is no official declaration, or even a formal survey. But the chatter at the World Economic Forum in Davos, Switzerland, is about the end of the financial crisis that began in 2008 and dragged on through last summer’s spike in Spanish and Italian government bond yields. “There’s a crystallization of thought that the financial crisis is over,” says Scott Minerd, managing partner and chief investment officer of Guggenheim Partners, a Santa Monica (Calif.) firm with about $160 billion under management.

And here's Ian Bremmer of the Eurasia Group writing at The Huffington Post:

So why has Davos decided to look on the bright side? I'd sum it up as follows:

There's a sense that the world economy has turned the corner, and after four years, the financial crisis is finally behind us. Not only are people much more attuned to the new environment of risks, but also, there is a sense that the downsides are nearing their limits. Sure, the eurozone is suffering through record unemployment and a bleak economic environment--but defaults or a eurozone breakup didn't pan out. A double-dip recession in the U.S. never materialized. The threats are still disparate and uncertain, of course, but it feels like the cataclysmic possibilities are off the table for the time being.

The mood at Davos echoes what we're hearing from non-Alpine pundits, like Mohamed El-Erian and others, who have been talking about how the 'New Normal' might be coming to an end. Even earlier, economists like Jan Hatzius at Goldman had been calling for 2013 to represent a big global economic turning point.

Great news. (Except if you're in the news business!)

World Economic Forum Ends With Stark Warning Over Global Economy
Graeme Wearden, The Guardian

Business Insider,

27 January, 2013

The World Economic Forum's annual meeting broke up on Saturday night amid warnings that attendees were too relaxed and optimistic about the state of the global economy.

Delegates left the congress centre in Davos with the words of Axel Weber, chairman of Swiss bank UBS, ringing in their ears. "In my view the mood [at Davos] borders on complacency," Weber said. "The mood has been good, in brackets too good to be true."

Many speakers at the four-day meeting at the Swiss ski resort predicted that the worst of the financial crisis was over, as stock markets continued to rally this week. Weber, though, warned that an unexpected event could easily puncture the mood, citing political events such as autumn's general election in Germany.

"My fear is that 2013 will be a repeat of 2012," explained Weber in a panel session to debate the global agenda for the next 12 months. He said that last year also began well, with companies posting solid financial results, before markets became gripped by fears that Greece would topple out of the eurozone.

Christine Lagarde, managing director of the International Monetary Fund, was also cautious, describing the recovery as "fragile and timid".

Influential Chinese economist Li Daokui cited the disagreements in the US over its debts as a key risk to the global economy this year.

"In the eurozone we have had promises of action … In the US, my observation is that we've not even had promises," said Li, a former adviser to the People's Bank of China's Monetary Policy Committee. He suggested there was a 30% risk that the investor panic of summer 2011, when stock markets tumbled, would return this year if solid progress was not made in America.

Last Wednesday the US House of Representatives passed legislation suspending the legal limit on government borrowing for four months, which means the issue could dominate most of the first half of 2013.

Weber, the former head of the Bundesbank, also took issue with Mark Carney's assertion earlier in the day that monetary policy was not "maxed out".

"I think monetary policy now is too loose", Weber warned, saying investors were struggling to "price risk" now that central banks have expanded their balance sheets and pumped huge amounts of liquidity into the markets.

Frederico Curado, president of Brazilian aircraft manufacturer Embraer, agreed that businesses are much more confident about economic prospects. "Companies are sitting on probably unprecedented amounts of cash.

Hopefully this optimism we are seeing will translate into investments."

Curado also reminded the Forum that the real economy needs further help, describing unemployment across the world as a "huge, huge issue for everyone."