Stephen Leeb, economist and best-selling author, told King World NewsWashington lawmakers and Federal Reserve Board of Governors have been so reckless with their handling of U.S.budget deficits and monetary policy in response to the collapse of the global credit Ponzi scheme that he wants to move to Canada before the crisis in Europe blows up—because, after all, a repeat of the past will most likely strike again.
It was Europe that triggered the greatest economic depression in U.S. history—the Global Depression of 1873-96. Then it was the U.S.'s turn to return the favor during the decade of the 1930s following the 1929 U.S. stock market crash which quickly spread to London, Paris and across the rest of continental Europe.
According to Leeb, the relatively sanguine LeadingEconomicIndicators (LEI) data streaming in of late is now topping. The second half of the year will reveal what the Fed most likely already knows is coming, a catastrophe—the beginning of the next leg down in the global economy that will turn the most defiant of the reality confronting the U.S. into true believers.
Jim Rogers of Rogers Holdings and economist John Williams of shadowStats.com, too, expect the worst of the trouble to gather steam after the election. The Fed is expected to preempt the downturn in the LEI with more QE.
"QE3 to me seems to be a 80-20 probability right now, within the next 3-4 months, or maybe even 90-10 given that there's an election out there," said Leeb.