The Illusionary World we live in.
Reality or Fantasy:
This is a world where few people can see the difference between reality and fantasy. And maybe there is no difference. Just looking at the US election and the candidates, it seems like a total fantasy as seen from this side of the Atlantic. A lot can happen before November comes, but as seen from the outside, the next president of the United States is going to be Donald J. Trump, if he isn’t murdered beforehand, or the election rigged to the hilt. Like it or not, this outcome is already set in stone. The Crook Hillary Clinton, the Rothschild whore, will need an absolute miracle to win, as momentum has convincingly turned against her.
Most people are unaware that they don’t live in a real democracy. In the US in particular, Presidents aren’t elected, they are selected, as with most of the other heads of states. It has been this way for centuries and was firmly cemented, and never questioned again, after JFK was killed when he tried to stand up to the evil money masters that control everything. People’s votes do not count. Stalin knew all about this, when he said;
“The people who cast the votes decide nothing. The people who count the votes decide everything.”
The RKM-cabal that control the US government and all other nations in the western hemisphere, are those who control the world’s monetary and financial systems, the media, even religion,* and nearly everything else of importance. Anyone, who would even dare to question the role of Central Banks has been removed from the political stage in the US election, except Donald Trump who wisely never questioned the system making him the only one able and capable to remove the Rothschild Khazarian Mafia and to changing the money system. Unfortunately, most people haven’t unravelled the working of the system yet and so the game will continue. If people don’t wake up en masse, and see the deceit and fraud of this illusionary world, it will get worse and worse as long as these banksters remain in control.*
What is the difference between a home * that you own and one that you have mortgaged for100% of its value? Both look the same. Both provide the same service – people can live in either one, having the same maintenance expenses for each one. But when the market crashes, which is going to happen, then they are very different. You can live happily in the one you own. It is your asset. The other, as you will quickly discover, is a liability.
Robbing the people:
By using paper currency, the RKM-cabal is robbing us of our real money and our real independence. How much money has been stolen already? That’s difficult to say, maybe $50 trillion, since the system was set up in 1913? One thing is for sure, the wealth gap between de 1% and the rest of us is increasingly growing wider every day. Through financial repression combined with lies and propaganda, governments and central banks have managed to extend the suffering for ordinary people for the benefit of this small elite, who have obtained incredible wealth. This massive inequality is what creates social unrest and eventually revolutions, and the problems now emerging around the world are most likely the start of that. What should be undertaken to stop these injustices? – If the world’s leading currencies aren’t directly or indirectly backed by gold, how many dollars, euro’s or yen would you have to print to buy anything truly valuable? If these currencies are not backed in some way by gold, or silver, they would be worth no more than the paper they are printed on. This may seem like an extreme outcome, but it could very possibly happen. So people need to wake up fast or prepare to face a bleak future.
China easily has enough money to buy 70,000 tons of gold – maybe more – and certainly enough to control the world’s gold market. It isn’t known for certain how much gold China has accumulated, but clearly the activity in gold and the Yuan, which both rallied strongly recently, point to the urgent need to start accumulating precious metals.
The central banksters pretend that money is real wealth. By injecting more money into the economy, making it easier and cheaper to borrow, they are actually trying to postpone the day of reckoning!
“After 1970,” Gilder writes in his new book, ‘The Scandal of Money’, “the financial industry nearly tripled its share in the U.S. economy, and private credit nearly tripled its share in advanced-countries’ GDP.”
Central banksters distorted the entire money system.* The inflation of credit drove up asset prices, and greatly rewarded the people who traded in them. It also rewarded the people who owned them – the rich. ‘The top 10% of salary earners took 33% of the national income in 1971. By 2010, they were taking nearly 50%. Meanwhile, the median wage for an American man of the working class has dropped by 27%. For anybody without a college education, the loss is catastrophic: They have lost nearly half their real income.”
“It seems as though markets are also an illusion. How else could the Dow be 63% above the 2000 high whilst the Euro Dow 50 stocks are down 45% in the same period and with Emerging Markets down 36%, Brazil and Hong Kong down 35%, Nikkei down 25% and Shanghai down 49% all since 2014-15.”
It is a totally interconnected global economy with many capable illusionists who can defy reality.
With corporate profits declining fast, current account and budget deficits for half a century, 95 million people not in the workforce, almost 50 million on food stamps and Q2 GDP at 1.2% – if the real inflation rate were applied GDP would be negative – in addition to exponentially accumulating debts of over $200 trillion…
“The failure of capitalism, “economists say, all policy wonks, best-selling authors, and former Treasury secretaries. But this post-1971 implemented system has nothing to do with capitalism. It is central planning and cronyism. And its measuring stick – the US dollar – is not real money. It is phony.
Deutsche Bank “systemic risk”
As a matter of fact, the IMF declared last month that Deutsche Bank poses the greatest risk to global financial stability. Consider that Lehman Bros. was leveraged 31-to-1 before its 2008 collapse. Deutsche Bank is now leveraged over 40-to-1. This Nazi German Bush-Clinton-CIA-Angela Merkel administered Deutsche Bank’s derivative debt has now reached 98 trillion dollars, with the worldwide interest rate yield curve on the verge of going ballistic. Imagine what will happen when this balance cracks, which it certainly will. Virtually no borrower, whether public or private can afford rates just two or three percent higher and definitely not rates of 15% or 20%, which are likely at a minimum to be seen. Follow Jim Willie’s analyses from 30 min. onwards.
Derivatives expert Idan Levitov goes so far as to call Deutsche Bank a “ticking time bomb”:
[One] institution that is… a ticking time bomb due to its extreme derivatives exposure is Deutsche Bank. As one of several very large global and systemically important multinational banks, Deutsche Bank’s balance sheet has more of what Warren Buffett decried as ‘financial weapons of mass destruction’ than any other bank on the planet.
Meanwhile, the global bond bubble is now a staggering $100 trillion. And over $500 trillion in derivatives trade is based on bond yields. If this bond bubble bursts…
The world is descending into chaos, whilst the market is partying like it’s 1999. Could the imminent collapse and possible crash prove to be even worse than is anticipated? How much longer can the bulls pretend everything is hunky dory?
“Yes, it likely will be. But no idea how long they can keep pretending.”
Money, Heart of The economy:
At the heart of every economy is money. Money is the measuring stick. It shows what things are worth, how much one can afford to invest, what is worth doing and what is not. Money – especially the rate of interest it earns – dictates when to expand and when to contract. It dictates when to work harder and when to ease off. It dictates which direction to take.
Now that Asia and Russia are no longer funding the U.S. Treasury debt printing press, the Fed is forced to begin hyper-inflating the money supply to keep the Government funded. While the Japanese continue to endorse the U.S. Government’s use of the yen as a de facto printing press, which enables the Fed to manipulate the U.S. stock market and to fund the U.S. Treasury’s unrestricted issuance of debt, they see the proverbial writing on the wall for the western monetary and financial system.
Japan has however, been quietly turning economically toward China in the past few years, to integrate its financial markets and economic system into the developing eastern bloc monetary system, which appears as if it may eventually be seeded in gold, likely signalling the end-game for the United States.
Breaking the Western hegemony:
China has emerged as a competitor to Western hegemony, yet its rise is criticized as China is perceived as inadequate. China has introduced state sponsored infrastructure spending to revive its economy and its thriving private sector can borrow at normalised rates of returns to reflect risk and investment, as it should be!
Similarly, the accusation that China’s over investment is going to cause a flood of merchandise is misguided. China is investing and needs to build up its infrastructure, in contrast to the West where consumption at the expense of investment is financed by debt.
Policymakers and the western media accuse China of having a rigged economy. On the contrary, it is the western world that is more rigged, where the banksters having been found manipulating everything from currencies to interest rates, with examples such as the libor rate setting scandal, to the London gold fix.
The Global banking system illusion:
The global banking system is an even bigger illusion.
The financial system was bankrupt in 2006 but governments and central banks around the world managed to patch it up by injecting $25 trillion, and by allowing banks to value all toxic assets at maturity instead of at market price. Now ten years later, the financial system is in a much worse state than it was in 2006. Global debt has grown exponentially since then by 65%, from $140 trillion to $230 trillion. And this figure doesn’t even include unfunded liabilities and derivatives of another $2 quadrillion or so. We are looking at a total debt of over 30 times global GDP. But that is a false comparison. One could say that 5% of GDP could be saved annually to reduce debt, and that would be very optimistic. In any case, with 5% of GDP it would take over 600 years to get rid of all debt. However, you calculate it, the world is bankrupt and will never repay its debts. Nor will the debt be serviced at any rate of interest above zero.
Global banks have just had illusory stress tests. Countries like Portugal and Greece were excluded as their banks are bankrupt. The criteria were set in such a way that every bank would pass except for Monte dei Paschi in Italy. Since the whole world knew that this bank is bankrupt, it was impossible to cheat with its outcome. With regard to the rest, in the illusory world, all banks were considered to be in decent health. If banks valued their toxic assets at market instead of at maturity, no bank would be standing today.
As the global debt bubble reaches its climax, central banks will not just print money in an attempt to save sovereign debt and the financial system but also to cover unfunded liabilities and derivatives. This will increase the money supply with many more quadrillions, initiating a tremendous hyperinflation.
Too much money is being pumped into the system relative to the amount of economic activity taking place. This pumping up of the stock of dollars is causing people to loss confidence in the currency. So businesses are buying assets – including their own shares. They are not investing in economic growth.
The issue today is that many people – including Fed policymakers – do not understand that the continual and never-ending issue of currency does not create wealth, nor does it even stimulate economic activity. If it did, living standards today would be rising, and as known they are not, which of course is leading to political changes. Brexit is just one example of this change.
That is why a 40,000 Dow in the next few years is a real possibility, which would be a doubling of the US stock market from today. If the Dow/Gold ratio at the same time goes to 1 as in 1980, then gold would be $40,000. But expect this ratio to go lower and probably reach 0.5, which would mean gold at $80,000. – Obviously no one will believe that this is possible. As very few people see that the economy now has reached the end of the road.
The difference this time, compared to the Weimar Republic crisis in Germany, or recently in Argentina and now in Venezuela, is that the magnitude of this in a few month arriving crisis is so enormous that there is no country and no central bank which can save the system. – This is why first there will be a global money printing extravaganza that the world has never seen before. The dilemma is that a debt problem can never be solved by more debt so eventually there will be a deflationary implosion of the system. And similarly gold and silver will skyrocket, as happened in the early 1920s when gold went from 100 marks to 100 trillion German marks. – In this scenario, physical gold and silver will at least maintain their purchasing power and also outperform all the bubble assets such as stocks, property and bonds.
World Class Crash Coming No Matter What:
The world’s reserve currency is greatly overvalued, and due to the state of the US economy with ever increasing debts and current account and budget deficits, the dollar will soon start the final leg to its intrinsic value of zero. It has been a 100-year race but it now seems clear that the dollar will be first to the bottom of the major currencies. This will have significant effect on both debt and stock markets. Gold and silver will be the major beneficiaries of the dollar’s decline.
The global economy is weak, and a black swan could hit anytime and take it all down. The next crash will be the greatest ever, as John Williams contends,
“It will certainly be a world class event that people will be talking about for centuries.”
On the question; how will you know the mother of all hyperinflations has started? Williams says,
“It will hit once you start seeing the dumping of the dollar…
There will be massive amounts of dollars the Federal Reserve is going to have to absorb. Once you start to see a panic decline in the dollar, be real cautious because it can happen quickly. First a decline in the dollar will be seen, and the likely trigger for the selloff in the dollar is the move back into quantitative easing.
So, what is the timing for a coming hyperinflationary depression? Williams says,
“You could have a crisis at any moment. The circumstance is not stable for the economy or the global financial system or the banking system. There may be some type of banking crisis before the election that would force the Fed to move on quantitative easing (money printing). I think the Fed will try everything in their power to keep things stable until after the election. So, most likely the dollar selloff will come after the election. Once the dollar selloff starts, I think you will be seeing the stages of early hyperinflation well within a year.”
It is very important not to own illusory or paper gold. It must be physical gold and silver which is stored outside the fragile banking system. Physical precious metals, held correctly, are the best insurance that savers can own against a totally rotten financial system.
* Four short and concise George Carlin presentations are linked to relevant topics in this essay.
Politician Flips Out – EXPOSES CENTRAL BANK SCAM
Godfrey Bloom, a British politician who served as a Member of the European Parliament (MEP) from 2004 to 2014, brilliantly exposes the central-banking scam: