What is going to happen?
Desperate for liquidity:
The world is struggling with increasingly severe economic problems, what the world economy is witnessing these days is a mighty contraction in economic activity around the world that reinforces itself. International Reserves are being sold off in a desperate search for liquidity. The contraction was originally seeded by a slow-down in the economies of the Reserve-issuing countries, i.e., USA, Britain, Europe and Japan.
The Chinese evidently have some plan, which they are not divulging, for we see that China is purchasing huge amounts of gold. In the meantime, the US insists on trashing the price of gold, as if to say that the Dollar is and will remain the world’s supreme currency till the end of time. Contrary by accumulating gold and saying nothing, however China is thinking:
“The US is mired in an insoluble problem. Do nothing to provoke the US. The US will destroy itself in a huge collapse.”
Many major currencies have lost a huge amount of value this year. The Japanese yen lost 16% against the U.S. dollar over the past year, the euro has lost 18%, the Australian dollar lost 19%, the Mexican peso lost 22%, and the Brazilian real is down 39%. The Canadian dollar has dropped 15% to an 11-year low. The Norwegian Kroner dropped 18% to a 13-year low. The Russian rubble is 23% lower. And the Columbian peso dropped 30%. These are astonishing moves for major currencies. This is the value of money in peoples’ bank or saving account. A collapse of major currencies could wipe out trillions in wealth, including pensions. Whether they see it or not, they have created a currency crisis with the dollar being the central character.
“The U.S. created trillions of dollars to fight the financial crisis of 2008 and 2009. Most of those dollars are still sitting in the banking system and aren’t in the economy. Some have found their way into the stock markets and the bond markets, creating a stock bubble and a bond super-bubble. The higher stocks and bonds go, the harder they’re going to fall.” Says Doug Casey.
As result of all this, the writing now has been on the wall, it appears a combination of global FX and equity turmoil and domestic corporate debt market collapse is finally starting to roil US equity markets. The Dow is down over 600 points in the last week or so, bond yields are collapsing, the US Dollar is tumbling, crude is crashing, and junk bonds are in free-fall.
Corporate insiders have been selling their shares at near-record levels, and according to some, this could be a sign for outside investors to start selling as well.
The truth is beginning to slip out from behind the curtains. A terrible false flag could come out very soon in order to divert attention from the truth. As usual the reality must remain hidden and attention diverted, the unravelling will come through something unexpected.
Rising interest rate:
The Fed is talking rising interest rate, let’s assume it is reality that the Fed really is going to hike rates, here the analyses of the consequences:
A .25% rate raise in rates will require the equivalent of up to $800 billion of collateral necessitated to being pulled. This is a huge number enough to tank the whole system, – unless someone is willing to replace it.
For starters you must understand if the Fed does tighten and collateral is withdrawn from the system, because everything is now so levered …”collateral” from somewhere else must be added. That “somewhere” was supposed to be Europe. Mario Draghi tried to push the EU governing council into further QE; in essence the German hawks refused and instead want to let some air out of the current bubbles. Europe was supposed to carry the baton of QE they instead dropped it.
Mario Draghi tried to fix it with his statement last week; “whatever it takes”. There is a problem with this and it has to do with collateral, or the lack of. – Europe is experiencing the same limits the Fed ran into during its last round of QE, not enough unencumbered collateral left to purchase. – Another way to say this would be; ”there is just not enough debt outstanding”. Long-time readers will understand why, as debt is settled with debt-money, but nevertheless it sounds crazy because the underlying financial and economic problems have arisen because there is too much debt but there is not enough to accommodate the needs for more QE.
Debt servicing is paid with debt-money created from NOTHING by the same Central Bank. – Now called ‘public debt’, which originally served the creation of debt-money. That is outright FRAUD, because the aggrieved citizens unbeknownst are required, to pay off with their earned tax-money this ‘FAKE-DEBT’ to the Central Bank!
But where does this leave the Fed, they originally treated this “solvency” problem by adding more liquidity that now is transformed into a far bigger solvency problem. Only this time liquidity is also lacking, they don’t have the tools (collateral) to create the needed additional liquidity, which essentially is debt-money. – Remember; debt-money is created from debt, without debt no money can be created.
Does the Fed have brains?
The Fed has put themselves solidly into a vice of their own making, by talking about raising rates. Do they have brains? Without debt from the ECB or elsewhere there is no debt-money to be created! – On the one hand if they do not hike rates, their credibility is gone, if not already? On the other hand if they do raise rates they ignite an implosion of the financial system. – Already a year ago the BIS’ Head of the Monetary and Economic Department wrote his warning about the market’s dependence on central bank power:
Important to understand about rising interest rates, in a variable-rate environment, is that all the related events will happen simultaneously. Bank and pension fund bond portfolios will report massive losses; governments will see their interest costs spike, making borrowing more expensive, and a flight from paper currencies into gold and silver. Destroying the house of cards of global banking.
The return to historical normal levels of interest rates triggers the global financial system into its implosion, and the world into severe depression. Otherwise continuing to force down interest rates by creating trillions of new currency units, the near-certain result is even bigger asset bubbles and eventually culminating in a crack-up boom resulting in hyperinflation that will send all fiat currencies into the oblivion of history, and there is no alternative choice! It’s now either pain today or even greater pain tomorrow.
Regrettably, when all else fails, the Empire goes to war. Look, to 1929 and the market crash. Then followed the Great Depression, currency wars, trade wars, and world war two. Are we here again? Didn’t we already see the panic of 2008, Great Recession, currency wars, and on-going wars in the M.E? When the markets collapse, war talk will heat up.
Gold and Silver:
Gold and silver are running counter to other commodities. Why? Gerald Celente says:
“Demand is up for gold and silver. To me, it is the ultimate safe haven. I’ve been saying since 2012 and 2013 that the bottom for gold is about $1,050 an ounce. I gave that number out because that’s about what it costs to pull it out of the ground. – Gold is about planning for the worst.”
So, is the spike in gold and silver demand a precursor to the next crash, which Celente is predicting to be coming soon? Celente says,
“I totally believe so. – It’s definitely worse now. Look at the bubble they created.”
Further prepare for the worst, and hope for the best. Celente’s advice is: 3 Gs’ – Guns – Gold – Get-away. Watch his exposé on video in below.
Gold didn’t hit a low; the bullion banks that are agents of the Central Banks and acting on the Fed’s orders artificially drove it down. This is the way the Fed protects the dollar from losing value. This has been going on in earnest since the fall of 2011. The price changes are seen at the most odd times of day and, night for no other reason whatsoever, activated by massive naked short sale of paper contracts that cause the price of gold to move straight down.
But off course it doesn’t mean anything about the value of gold. It simply means that the Federal Reserve and the bullion banks have manipulated the market. So that’s what’s going on. However important to notice; this is the worst kind of criminality and the worst kind of corruption.
So never say gold hit a new low because it didn’t, our corrupt government artificially drove it down.
The consequences of having a free-floating fiat currency, one of them are a soaring national debt. When money is limited, as it is in a true gold standard system, so too is reckless government spending. Attached graph shows how dramatically all debt in the U.S., both public and private, began to soar past economic growth once the gold standard was ended in 1972. Revealing the fraud with the continuous growing GDP figures. Here is a historic timeline of the gold standard in the USA.
A gold-backed rubble and gold-backed Yuan could start a ‘snowball exit’ from the dollar that will diminish America’s ability to use the reserve dollar role to finance Washington’s perpetual overseas wars.
Equally doomed by the coming credit crisis, is every service you’ve come to depend on – from your bank to your grocery store to the government – all those could shut down? The first step of protecting yourself is to understand what’s really going on.
At some point, a debt correction is inevitable. Debt expansions are ‘always‘ followed by debt contractions. There is no other way, as debt cannot increase forever. When that happens, ZIRP and QE will not be enough to reverse the process, because they already are running at full speed, and there is no alternative available.
Then the value of debt will drop sharply and fast. Creditors look to their borrowers – traders look at their counterparties – bankers look at each other – and suddenly, no one wants to part with a penny, for fear they may never see it again. – Credit stops. – It’s not just that no one wants to lend, no one wants to borrow either.
Credit problems are “contagious.” When companies funded with huge amounts of debt go bankrupt, it triggers a chain reaction. Stress can spread from the riskiest debt in unexpected ways. Institutions that would otherwise be sound can end up in default because they’ve invested in toxic debt.
Just like after the 2008 crisis, expect a quick response from the central bankers. – They will announce unlimited new borrowing facilities. But it won’t matter. House prices will be crashing. No one will lend against the value of a house. Stock prices will be crashing. – No one will be able to borrow against his stocks. Art, collectibles and resources – all will be in free fall. The next crisis is likely to be across ALL asset classes. And with $57 trillion more in global debt than in 2008, it is likely to be much harder to stop.
Did you follow it so far? Because here is where it gets interesting. In a gold-backed monetary system prices fall. But the money is still there. Money becomes more valuable. It doesn’t disappear. It is more valuable because you can use it to buy more stuff.
Obviously, people hold on to it. Of course, the velocity of money – the frequency at which each unit of currency is used to buy something – falls. And this makes it appear that the supply of money is falling too. But imagine what happens to credit money. The money doesn’t just stop circulating. It vanishes.
A bank that had an “asset” – in the form of a loan to a customer – of $100,000 in June, may have zero by July. A corporation that splurged on share buybacks one week, could find those shares cut in half two weeks later. A person with a $100,000 stock market portfolio one day could find his portfolio has no value at all.
All of this is standard food for a credit crisis. The new wrinkle – a devastating one – is that people now do what they always do, but they are forced to do it in a radically different way. – They stop spending. They hoard cash. But what cash do you hoard when most transactions are done on credit? Do you hoard a line of credit? Do you put your credit card in your vault? – No. – People will hoard the kind of cash they understand – something they can put their hands on – something that is gaining value – rapidly. They’ll want the paper bills.
But, following a well-known pattern, these paper bills will quickly disappear. People drain cash machines. They drain credit facilities. They ask for “cash back” when they use their credit cards. They want real money – old-fashioned money that they can put in their pockets and in their home safes.
Readers are reminded that “all this happens in a short timeframe – days… maybe weeks… a couple of months at most. That’s all. It’s the period after the credit crisis has sucked the cash out of the system… and before the government’s inflation tsunami has hit.”
As Central Bankers put it, “a determined central banker can always create positive consumer price inflation.” But that takes time!
Credit facilities will be drained of real cash. Banks will put up signs, first: “Cash withdrawals limited to $500.” And then: “No Cash Withdrawals.” You need to buy gasoline. “Cash Only,” the sign will say, as the machinery of the credit economy will be breaking down. The gas station… its suppliers… and its financiers do not want to get stuck with a “credit” from your bankrupt lender!
The bottom line is that we cannot denounce Western imperialism without pointing to the economic enslavement of mankind. Today, it seems the condition of possibility for popular revolt and/or practical monetary reform is to hold accountable those elites, private banksters, etc. who use an abusive debt-based monetary system to further the sad loss of political and economic sovereignty around the world, as the groundwork for the introduction of the New World Order, respectively World Dictatorship.
The Jesuit Khazarian Mafia for over 300 years has controlled the world by fraud, deceit, theft, extortion, and murder, which all meanwhile have been recognised by the watchful awake people, and hopefully now finally is sinking in by many others in understanding how society has been engineered.
The woken, live at a very special moment in time enabling society to move forward. WE belong to the special ones, the chosen ones assisting to soon bring this Khazarian Mafia nightmare to its very end, and to start a wonderful new beginning.
Once WDS-trusty Neil Keenan signs the three letters received from the WDS, he will be in control of the Global Accounts. According to Neil, he will then be able to take care of the matters detailed in the original Bretton Woods Agreement:
“If you understand this, then you realize a major theft took place not just after the first but also after the second Bretton Woods Agreement. To top it all off, this theft took place even before the ink had dried on the agreement. The Western Financial System was set up based upon such thefts, and as we all know they used Eastern assets from the Global Accounts to achieve all of their goals.”
Neil says we now are close to the end game: Be assured we will evolve. We will live up to our potential as human specie. What now is going to happen is just in TIME before the RKM let the global economy collapse. Our Era is coming. Believe it. And prepare for our peaceful world, as it already should have been centuries ago. Receive with this encouraging news from the Finalwakeup Team our best wishes for a Happy Christmas and prosperous New Year 2016.