2010 Outlook from a group of 25 European Economists with a 90% accuracy rating. (Transcribed from audio.)

"Behind the facade of the public statements of economic recovery, by Western leaders lies the simple fact that the economic system is spinning out of control.

The impact of trillions of dollars injected into Western economic system to counter the effects of the crisis are now petering out. These funds had the effect of slowing down the crisis for a number of months, but exploding deficits and the resultant economic debt bubble will now begin to drag nation states themselves into the crisis.

A sudden intensification will occur in the 2nd half of 2010. Anyone can see the evidence of this reality, if they merely take off their rose-colored glasses.

Western states are on the verge of bankruptcy. Western economies are plagued by growth in unemployment while millions of people will lose social benefits this year.

Workers face continued falling wages and further reductions in public services. The world is facing the disintegration of the current global governance system, and growing threats of military conflict with serious global implications if, and when, war breaks out.

In the same way that military commanders described their defeats as "withdrawals to pre-positioned locations," or announce small tactical success to hide their strategic defeats, the governments and experts continue to fill the news media with information of similar irrelevance.

Propaganda has monopolized all official pronouncements. At the very time the U.S. budget begins to spin out of control, the American government gives lip service to freezing a small percentage of spending. The same story is repeating itself across the globe.

The cause of the current financial crisis is no mystery. It was created by the simple fact that the world accumulated far too much debt over the last 40 years and used it buy or build assets whose values can no longer support the debt system.

As surely as the debt accumulation stimulated demand and economic growth and asset-based wealth to unsustainable levels, the global de-leveraging which is now occurring, will surely drive asset values under these standards far lower. The economic gains from over-leveraging the system occurred slowly over the decade, whereas the losses from the de-leveraging now occurring will be violent over a short period of years.

The authorities seek to hide this fact from the market and participants while prescribing a new government debt bubble as the solution to a global insolvency crisis. The foolishness of this strategy is obvious. What has escaped the minds of most observers is that the leaders of the world are not pursuing this course with reckless abandoned, rather, they are following a long-ago devised plan to bring the current world system to a calamitous ending in order to bring about a new world order which will rise like a phoenix out of the ashes of the old.

What has not been clearly articulated to the people, however, is that within this new world order that is coming, ownership of the world's most productive assets will have changed hands.

In 2010, we will hear the music playing and the fat lady singing at a party that can only be called, "The Ball of the Damned." Where every dancer is desperately looking for the refinancing chairs which are curiously no longer present in the room.

All of these economic factors are creating a perfect storm within the global financial markets and inevitable pressure on interest rates in the U.S. The injection of zero-cost money into the Western banking system has failed to restart the economy. Despite zero-cost money, the system has stalled. It is slowly rolling over into the next big down wave, which in Elliott Wave terminology will be Super Cycle Wave Three, or in common language, "THE BIG ONE, WHERE WE ALL GO OVER THE FALLS TOGETHER."

Policy makers have attempted to assure the markets that there are not problems, but in the end, we will hit this crisis head on.