The setting of interest rates by central bankers cause all sorts of disastrous consequences. The number one cause is the creation of booms and then inevitably busts. Thomas Woods’ book Meltdown does a great job of explaining why the Fed deserves most of the blame for the most recent economic crash. How do they set interest rates? They use a few tricks, but primarily by printing money. More money equals lower interest rates. Less money, higher interest rates.
It was their response to the financial crisis that started in 2007. They flooded the economy with dollars, euro and yen, which still is continuing. But all the newly printed cash had to flow somewhere, and that’s mainly gone into the stock market, pumping up stock prices to unrealistic highs.
Most people tend to assume that the “authorities” have fixed whatever caused almost the end of the financial world in 2008, but that is not the case at all. They have been providing too much credit, too cheaply for too many years. Former Reagan budget advisor David Stockman provides the details:
During the seven years ending on the eve of the financial crisis, in Q3 2008, total credit market debt soared from $28 trillion to $53 trillion – a sizzling 9.2% annual rate.
By contrast, nominal GDP over the same time expanded at a 4.8% annual rate or at half the rate of credit growth. Accordingly, during this short seven-year interval, the nation’s aggregate leverage ratio expanded to 3.5 times from 2.7 times GDP.
By rigging the price of gold downwardsthey influence people to believe the economy is under control. However once people start getting scared, gold goes up. So it doesn’t really matter too much whether the short-term economic numbers go up a little or down a little right now, the whole system is inherently an appalling Ponzi scheme that will inevitably collapse under its own weight.
The current cycle of relative stability will not last forever. But indeed, this is the time to prepare. You would have to be absolutely insane to think that the biggest debt bubble in world’s history is never going to burst. The world now is more than 223 trillion in debt, and the too big too fail banks have at least 700 trillion of exposure to derivatives, with little intrinsic value or none at all.
These numbers may shock you. They prove that the global financial Ponzi scheme is far more extensive than most people would ever dare to imagine. The total amount of debt in the world is today more than three times greater than the global GDP. In other words, you could take every single good and service produced on the entire planet this year, next year and the year thereafter, and all that still would not be enough to pay off all the debt.
But even that number pales in comparison to the exposure that big global banks have to derivatives contracts. It is hard to put into words how reckless they have been. “At the low end of the estimates, the total derivative exposure; global banks have contracts of 710 trillion dollars. That is an amount of money that is almost unimaginable. And the reality of the matter is that not all that “money” is in circulation today. Only about a trillion dollars of U.S. currency that actually can be hold is in existence.” If everyone tried to close his or her bank account and investment portfolios all at once, that would create a major crisis. The truth is that today’s financial system is little more than a giant Ponzi pyramid scheme that is based on debt and paper promises. It is literally a miracle that it has survived for so long without collapsing already.
“-$710,000,000,000,000 to $1,500,000,000,000,000 – is the estimate of the total national value of all global derivatives contracts that generally fall within this range. At the high end of the range, the ratio of derivatives exposure to global GDP is about 21 to 1.”
The total amount of government debt around the globe has grown by about 40 percent since 2007, meanwhile the “too big to fail banks” have collectively gotten 37 percent larger.
The “authorities” didn’t fix anything. All they did was re-inflating the bubble and kick the can down the road a little further. The mathematical conclusion is; this is completely and totally unsustainable. How much debt can the global financial system take before it collapses?
How recklessly can the big banks behave before the house of cards they have created implodes underneath them? For the moment, everything seems fine. Stock markets around the world have been setting record highs and credit is flowing like beer. But at some point the day of reckoning will come, and when it arrives it is going to be the most painful financial crisis the world has ever seen. You better get ready before it strikes, now is the last time to do so.
This is a situation the world is faced with, probably nothing already that’s known, or heard off before. Most think this is not important, as they cannot grasp the impact this debt figure will have on humanity. But what really is important is the value of gold, that’s going to matter when the level of confidence is high the gold price is low, but in the upcoming reverse, people will become aware that the value of gold is far more important as there is no intrinsic value in paper currencies, which at the moment denominate the value of everything in this world.
The great illogicality is that physical gold has nothing to do with its price, because it is priced in something that has no intrinsic value, but that still denominates the value of everything on Earth. Remember; the great paradox of paper money is debt, although it nonetheless has been made legal tender – just on purpose by the elite. Which clearly demonstrates the human delusion designed to enrich the elite, banking system and big business – that’s becoming by the day the more unsustainable Ponzi scheme that will bring the world and the people to the edge of the cliff, though the one percent elite grows wealthier by the day as long this scheme continues. Whereas the media keeps writing about wealth inequality between the 1% rich and the 99% poor, without explaining why it is that way.
But eventually even that same inequality will collapse as all fiat empires experienced before, time after time, and ultimately is remedied by reasserting gold’s role in correcting these imbalances. When gold assumes its role, its value will become far higher than the paper proxy used to protect against a default of all paper proxies. When this is going to happen, your physical gold will set you, your family and children free.
“With the federal government and Federal Reserve locked in their respective system of destructive fiscal and monetary policies, a related, continuing massive loss of global and domestic confidence in the US dollar, should lead to an outright dumping of the US currency in the global markets, setting the initial stages of a hyperinflationary great depression. The timing of the hyperinflation onset by the end of 2014 remains in place, with the odds of that occurrence estimated at 90%.” Wrote John Williams of Shadow Statistics.
So your best protection is to urgently purchase as much physical gold and silver to be stored outside the banking system, alternatively diamonds are a good substitute, as those require less place to be stored, as for example silver requires, and is more transportable. Your time for preparation is very, very close to being over. Make sure you are ready for anything at any moment.
So how did we get here? “There’s much to research in the financial world, but it’s clearly manipulated by very big players. It always has been, from the relatively recent Rothschild’s coup of the London markets following the Battle of Waterloo to the Great Depression, money manipulators are playing humanity.
Gold and all “currencies” are manipulated by an elite few central controllers from ancient blood line families based out of the City of London, and the move is to make all countries on the planet centrally managed by this same elite few and their affiliates. Those in the way will face retribution, as is happening in the Middle East.”
The creation of central banks that began 100 years ago with the Federal Reserve Bank in the USA had an in advance planned purpose – to obtain total control and monopoly over the monetary system for an entirely centralized power serving the power-Illuminati. The justification for this was achieved by causing intentionally pre-planned economic crisis early last century. The population suffered great poverty and called for a solution, today known as PRS (Problem – Reaction – Solution). So, the centralization of the banking system could be implemented under the slogan ‘this will never happen again’. Just as then, now the same is about to happen again focused on their next move. Because of the large debts some or more TBTF banks will go bankrupt, that will reduce the number of banks to even more concentrate their financial power. Followed by the central world currency that will be implemented. This allows additional monitoring – read more power – and an increased tightening grip – read more restricting personal freedoms – exercised by the few power elites over all nations! All readers are warned and suggested to forward this warning to others. The next step is to take away your last freedom that was left, so people become unable to protest, because that is the elite’s greatest vulnerability. The ultimate goal on the way to full slavery is practically and almost a fact of life!
Before this is going to happen the world must waken up to the elite’s machinations. Don’t be deceived. This manipulated system they’re attempting to foist upon humanity is doomed to fail, but it will come with a price on today’s society that deliberately is built on false economic foundations. Be prepared to stand up as their made-up houses come crumbling down.
Invest in your physical health through life-giving reserves – truth, spirituality, love, family and community. Be prepared to live in the right location – care for food and essential commodities, and if you do have any precious metals or have made other wise preparations, be careful about whom you tell. Help others prepare but the sweep for your wealth and supplies will most likely occur, as jealous informers get paid handsomely.
Max Keiser and Stacy Herbert discuss the one-two punch of cryptobullion. They also discuss the crowd coming together to fight fracking in Texas (for fear of the ever-increasing magnitude earthquakes) and Canadians delivering water for Detroit because ‘our water is their water.’ In the second half, Max interviews Tina Rothery – aka Tina Louise – about the ‘implied inevitability’ of fracking and how Centrica and Cuadrilla are ‘squatting’ in order to prevent anti-fracking activists from doing the same.
Dollar Going to Collapse, Debts Can Never Be Repaid – 2008 Meltdown Revisited – There’s No Solution
We are now in a situation where every major economy in the world is in a total mess. There is a massive risk to keep your money in the bank, be wise and get it out as rapidly as possible. The dollar is the first to fall – on purpose – and every other currency will follow. Watch Greg Hunter’s interview here:
A full-blown crisis is coming and there will be hell to pay.
Rick Rule discusses the trouble in the banking system in Europe and the German move to approve bail-ins.I see the German move to approve bail-ins as a situation where the banks are beginning to give themselves the tools to dig themselves out of the box that they’ve gotten themselves in. Europe needs to look to Japan, where Japan had a lost decade that turned into a lost 16 years. The problem for Europe is there are increasing amounts of dislocation in the European community.
As an example, German citizens rightly feel like they are carrying the rest of Europe. So there are divisions in Europe over this strategy that were not apparent in Japan because Japan is a very homogenous society. I can’t say a full-blown crisis is going to rear its head tomorrow or next week, but a crisis is coming and there will be hell to pay at some point.”