More debt than economic value:
The authorities want you to believe that the financial problems from 2008 have been fixed. Unfortunately, that’s not the case. Governments have created more bubbles and more debt. The measures to abolish the “too big to fail” banks have been nothing more than political showmanship and actually have gotten worse.
The world economy doesn’t look healthy. Look at China. The headwinds facing China hit the headlines dramatically with currency devaluation. The French and German economies didn’t grow at all or by much less than expected in the second quarter.
Since the crisis of 2008 ‘debt-to-GDP ratio’ – a key measure in determining the overall robustness of the national economy –has risen from just over 60% in 2006 to over 100% in 2014 in the US, and similarly worsened elsewhere, and still rising, indicating that the recession never ended, it was merely hidden from sight by a constant flow of more debt.
That shows the western world is economically underwater, and with nothing to save the world except more spending, more new debt, and a rapidly inflating the dollar and other currencies, issuing more of the same to throw at creditors, to burden taxpayers with ever greater financial load. That is the spiral the world has been in for years – making it much worse, with every round of printing. There is More Debt in the World Today Than Total Economic Value!
Central bankers have proved time and again they have no backbone, they can’t handle corrections, and are deathly afraid of their own reputation. So they have stepped in repeatedly – with multiple interest-rate cuts, multiple rounds of quantitative easing (QE), and outright manipulative buying of assets like sovereign bonds, stocks and ETFs. – The money supply out of thin air has increased 400% over the past six years, yet inflation has been magically non-existent and most have seen little-to-no wage growth. Matters are definitely not as rosy as leaders would like us to believe.
“Typically, throughout human history, these leaders and their special interests have sought to use their power to manipulate and control prices to their own advantage.”
All markets are rigged; Wall Street and big banks front-ran central bank purchase programs because it made them money. But now, it looks like the days of relying on central banks are over.
Quantitative Easing is the highly corrosive monetary policy by the Central Banks, actually only to supporting the purchase of sovereign bonds. It is another name for money printing. In the last couple of months, evidence has grown that the major central banks are on their own, acting to preserve their economies, and taking action with local motives. – The Swiss ensured with their disconnect of the euro that all nations eventually would break the coordinated monetary policy with the US Fed.
EU’s economy is slowing because of implemented useless austerity a measure that lets debt climbing. EU-GDP is abysmal, missing expectations almost across the board. EU’s unemployment is still among the worst in modern times. – Commodity deflation is picking up momentum. And don’t forget: Deflation and big debts are an explosive mix. When prices decline, governments and businesses take in less revenue. Moreover, with fewer revenues, sustaining debt can suddenly be far more difficult.
And China could be the reason. Central bankers and other government policymakers basically launched an economic war against ‘stock market sellers’. They slashed interest rates. They cut bank reserve requirements. They lent hundreds of billions of Chinese Yuan to brokers and told them to buy stocks. They froze all initial public offerings to keep new stock supply from hitting the market, and forbade big company officials from selling their shares.
Even ECB President Mario Draghi’s Euro-QE experiment is failing. The entire post-QE rally in inflation expectations earlier this year has now given back. Inflation expectations priced into the 10-year Treasury market are back to half-decade lows. Even the Federal Reserve’s own experts admitted that QE doesn’t work.
The St. Louis Fed released recently an economic paper by VP Stephen Williamson, one that contained this damning quote:
“There is no work, to my knowledge, that establishes a link from QE to the ultimate goals for the Fed – inflation and real economic activity.” – The paper went on to say QE, so-called “forward guidance” on policy, and zero interest rates have all failed to boost inflation or wages in the U.S., EU, Switzerland, Japan, or anywhere else where massive QE programs have been launched.
Long story short, reality is that intervention into the markets is a failure. Confidence in central banks is fading – and for good reason. Even policymakers are admitting they don’t work!
Currently, total world debt is about three times that of world GDP. To put this in better perspective; as comparison just imagine what sort of condition this is for your personal finances when you owe three times more than you make per year and don’t have a hard asset like a home to secure that debt.
For China, the world’s largest holder of debt, cannot indefinitely stem the incoming flood of debt from mainly the US and the EU, or even temporarily. This puts the rest of the world in a very precarious situation. – If China and, more importantly, Chinese companies start defaulting on their debt payments, which is inevitable, as they cannot afford to pay the interest, the world will face economic disaster. Not what was seen seven years ago, it will be a lot worse, comprising of a whole new category of economic collapses together, exacerbated by its extensive diversity.
This kind of economic collapse is one that only happens when a society’s entire monetary and banking system start to defaulting. The cabal orchestrates these kinds of collapses that this time will be far worse than the 1930 collapse followed by the Great Depression,
Worryingly, central banks have fewer or no monetary weapons at all in the upcoming depression, they have less or no room to cut rates, and have swollen balance sheets that will make it harder to launch new rounds of bond buying.
The purpose of printing up trillions and trillions of dollars was argued to create economic growth, drive down unemployment, and stoke moderate inflation. The results have been dismal, horrible, and ineffective.
However, Big banks reaped windfall profits, heaping record bonuses for being at the front of the Central Banks’ feeding trough. – The ‘rich 1%’ enjoyed the largest increase in wealth gains in recorded history, and governments were able to borrow more and more money at cheaper and cheaper rates allowing them to spend more and more, all at huge costs for taxpayers.
Money printing is the creation of fake wealth; it causes bubbles, and when bubbles burst there’s only one question that has to be answered: Who’s going to pay the losses? The poor Greeks are now discovering that they collectively are responsible to paying for the mistakes of a small number of French and German banks. As a direct result, Greece is in the process of losing their airports, ports, and electrical distribution and phone networks to ‘private investors’ – mainly cabal allied foreigners – harvesting the last cash-generating assets the Greeks have left.
This ‘Second Crisis’ is going to be a global event. There will be no easy escape. As the three previous options won’t work this time, those are:
- Lower interest rates, cutting rates near zero since 2008, offers no room to cut rates any further.
- Cutting taxes, to put more cash in the hands of consumers and businesses. But governments are in no position to cut taxes, as they spend about half a trillion more than it takes in. And it owes lenders trillions.
- “Print” more money, or quantitative easing (QE), by buying bonds from the private sector too, and injecting more cash into the economy to fight a crisis. That will be the only option left, as a dangerous move into stagnation, inflation, and eventually hyperinflation.
The whole world is drowning in huge amounts of un-payable debt. Owners of this debt cannot liquidate, as the debtors are going into default, and that will mean a loss for all those holders of debt. These debt holders think they have wealth in dollars or euros or whatever currency, which all of it is going to evaporate, as debtors cannot pay. So the world is going to be sinking in worthless paper. Besides, there is not enough money in circulation to pay-off debt, as only debt-money is issued and not the money for paying the interest on the principle. Regular readers will remember the cabal does it on purpose to confiscate the collateral.
At some moment in time, not too far off from now, a re-enactment of the crisis of 2008-2009, will occur, but now far worse, because there’s far more debt. – Official global debt has surpassed this time $199 trillion.
It is difficult to exactly tell what’s going to happen. But the sure way to know how bad things are going to get is to watch the Bond markets. As long as investors continue to buy sovereign bonds, nothing disastrous will happen. But when the moment arrives investors simply refuse to own government or other debt at almost any price. You personally will be wiped out if you haven’t protected yourself in advance with gold and silver stored outside the banking circuit.
The next crisis is going to be much worse, people have to be prepared for what almost happened last time when banks nearly were closed, they already had shut down the ATMs, when people needed cash. And that is why you should make sure to have cash on hand in your own possession. Because in the immediate days and weeks following a run on the local paper currency it is going to be very important, as there is not sufficient paper currency in circulation. In a banking crisis, that is expected now, the banks seize up because they’re going broke, and won’t be bailed out, because there doesn’t exist sufficient funds to do so. Moreover fractional reserve banking is a fraud against humanity: There’s not even enough CASH on hand at your bank to meet even a small percentage of redemptions. – And remember; this is proof; unlike precious metal, fiat cash is just worthless paper, but valuable immediately after the bank crash.
ATMs run out of money:
And when people realize this, their reaction is to go to the bank and get their hands on something they can hold onto, and that is cash. They think they have a bank account with ‘their’ money on it, and run to the ATM to get that cash out before the ATM runs out of money.
But most likely those have run out of money already, because the lack of cash to cover the obligations and the needs of the people. The western world has shifted to credit long ago. The whole story of the last 50 years is the expansion of credit-money, and that is what people use. And when the credit stops, the whole economy comes to a halt.
Having money in the bank is not the same as having cash in your own possession. When you have cash, you have what they call trust-less money. That means you can go and buy stuff with it. But when you have an account in a bank, it means the bank owns your money that is owed to you. That means you have got a counter party risk. There is someone on the other side, and if you study the statements of the banks, and their balance sheets they all are in danger of going broke because they’ve lent too much money to so many insubstantial, crumbly projects.
And all of that collateral that they’ve got on houses and the money they lent to enterprises for mergers and acquisitions that equity disappears. All of a sudden, the bank, which has very little in real reserves, is illiquid. It’s illiquid and bankrupt, while you have a credit, because your bank account is not cash. It is just what you have as a credit against a bankrupt institution. Consequently you are in big trouble without any money.
But these problems always come as a surprise to most people. This can happen next week, in 2 weeks, next month or at the end of this year, or next year, but for sure these are going to happen, as the point of no return has been passed long ago.
The world is in a situation where there’s more and more debt. The response of the authorities to the crisis of 2008-2009 was simply to add more debt to a situation that was already caused by too much debt. And so the problems of 2008 were not resolved at all. It has been made worse by kicking the can further down the road, it only became postponed. What is going to happen is a crisis similar to 2008-2009, but far worse, as there’s more debt, and no solution left.
People would likely flock to gold and silver in a global financial disaster, and that causes its price to soar. For example, the decade from 1970 to 1980 was marked by war, recession, and very high inflation. This made the 1970s a terrible decade for stocks and bonds. But it was terrific for gold owners. As people fled stocks for precious metals, gold gained more than 2,000% during the decade. That’s why it makes sense to buy gold as a form of insurance.
The combination of debt that can never be repaid and higher interest rates that no government can afford to pay will create an absolute panic in global bond markets. This will of course be very beneficial to gold and silver, just as it was in the 1970s. Bond and asset markets across the world will suffer tremendously, the problem is that the bond market is the biggest bubble in the world and this autumn is expected there will be a major panic in this market. Once savers realize that they need gold and silver, there will be a shortage of physical precious metals that will push the price much higher.
Fore taste what is to come:
The freezing of accounts in Greece is only a taste of what’s to come, right now the highest levels of government and the banking system are locked in a desperate last stand against a disturbing monetary shock, one that will make what’s happening in Greece seem mild by comparison. – And it could disrupt people’s life in ways you never thought possible. You will suddenly be locked out of your bank account, unable to withdraw cash or deposit a check. Your stocks will swing wildly out of control. Your government-controlled payments will stop.
Remember: media disinformation serves the interests of global banks and institutional speculators, which use their command over financial and commodity markets to amass vast amounts of money wealth. The corporate establishment including the speculators controls the corridors of governments. Meanwhile, the “bank bailouts”, presented to the public as a requisite for economic recovery, have facilitated and legitimized a further process of appropriation of people’s wealth.
In Greece the images of closed banks, smashed store windows, empty shops and desperate people were seen. Imagine soon the same is happening in your neighbourhood. In the beginning no one really knows what’s happening, people stare around, and wonder how long the food in the storage room will last, and what to do if this situation doesn’t get resolved quickly. Because the highest levels of government and banking system are locked in a desperate last stand against a disturbing brake down of the system. No one would never have expected or even thought about as a possibility.
Cash versus Credit:
There’s one big difference between cash and credit: In a crisis, credit collapses. Cash – even cash backed by nothing – nevertheless has a physical, tangible presence. If the stock market gets cut in half, those slips of paper are still there. These still can be used to buy water and food.
It soon will spread to a weak link in the food supply chain, causing massive shortages in the cities and suburbs. The same will happen to the gas station’s network, motorways will become empty. And one by one every service WE are depending on, from banks to grocery stores to government, will shut down. So the valuable lesson from Greece is, people should not trust money they cannot hold in their hand.
The most you can do is learn how to protect yourself and your assets from the inevitable. The better description of the on-going crisis is ‘Global Monetary War’. – Any nation wishing to establish trade or a monetary system centred upon gold is branded a rogue nation, subject to extreme propaganda. This is precisely why Russia is being vilified, since they want no more US Dollar in trade or banking, and lead a global movement to discard the USD as global reserve currency. – The solution is with precious metals as the core to banking, trade, and currency, even wealth preservation. The proxies of change are working around the clock. The US Dollar is doomed, and its captains are running for their lives.
The Gold Standard will return, as the solution to the untreated Global Financial Crisis is the gold route. The Eurasian Trade Zone will be built upon the gold route, and see a revival of the Silk Road. It cannot be stopped, not even by war. The safe haven is not the US Dollar, but rather Gold and Silver bars and coins, otherwise defined as real-money.
Ultimately, the major driver of higher gold prices is the global race to devalue currencies. Governments around the world are desperately trying to stoke their economies with low interest rates and outright money printing. The Bank of Japan is printing trillions of yen each month as part of its longtime battle against deflation. The European Central Bank is also printing billions of money in an effort to grow its stagnant economy. Easy money policies will ultimately destroy these currencies. Real money – gold and silver – will be the winners. Owning physical gold and silver is the best way to defend your wealth from destructive monetary policies.
Secrets of the Plunge Protection Team:
Many are wondering, or what to think of the recent volatility in the stock markets, the criminals are ‘The Plunge Protection Team (PPT)’ established in 1988 under Ronald Reagan by signing Executive Order 12631, on order to prevent another 1987 ‘Black Monday’ through authorised manipulating of the markets. The PPT have the entire U.S. Treasury at their disposal to manipulate the markets through DERIVATIVES – future options – using the public owned assets behind the Treasury to rig the prices of commodities gold, silver, currencies, stocks, etc.
Since 9/11, there have been at least three major long-term stock market rallies. In all these instances when stock markets opened and all indexes began quickly to plunge. In each incidence by early afternoon the markets were brought back from the brink of collapse to the surprise of everyone.
In the same manner paper stocks rise, while precious metals and oil loose, indicating the PPT is rigging, they buy metals futures – derivatives – in great amounts, creating loses in silver and gold indexes by purchasing on taxpayer’s expense large gambling bets – derivatives – against true value of intrinsic metals.
These gambling interventions by the PPT have each time successfully brought back the market, despite the inflated financial realities that existed. The purchase of these gambling derivatives at a great loss have transformed each market crisis into a rally, meanwhile further inflating the highly overvalued market indexes. This is the reason that major banks are holding Trillions of gambling derivatives on their books, as these are used to rig the markets.
They rig the value of precious metals to discourage investors from purchasing gold and silver instead of Treasury Bonds. This is the way; they plug the ‘pinched hole’ of the financial bubble, to stop the bursting. – The PPT cannot continue to spend what it doesn’t have. The pension funds they are ‘borrowing’ from are almost exhausted. So get yourself some gold and silver, it will buy you necessities to survive in the coming collapse, while paper fiat currencies will heat your home.
Sooner rather than later these market ‘fixes’ will no longer hold the bubble from bursting. This is called the creation of growth and prosperity as governments and the media want us to believe, but nonetheless financial bubbles are on the brink of explosion, but at least now it is understood who created all this misery, it is your own government with ‘trusted’ bank institutions. – Nowadays keen-market observers notice greater instability in the markets, meaning the PPT is running out of options.
Abolish the Federal Reserve; the Federal Reserve will abolish America.
On December 23rd 1913, Woodrow Wilson signed into effect the Federal Reserve Act. This interview with G. Edward Griffin, was recorded on the 100th anniversary of the Federal Reserve and is being brought back today as an encore presentation. Author of “The Creature from Jekyll Island: a Second Look at the Federal Reserve,” G. Edward Griffin exposes the Fed’s hidden objective over the past 100 years and why “if America does not abolish the
IN THIS INTERVIEW:
– The Federal Reserve is a parasite to the U.S. economy ►0: 54
– The Fed’s hidden objectives over the past 100 years ►6: 12
– Fed chairman (now Janet Yellen, not Ben Bernanke) is just an employee, the banks run the show ►13: 53
– We don’t need to audit the Fed; we need to abolish it! ►16: 46
Jim Sinclair-Silver Will Be Gold On Steroids In Coming Rally
Renowned gold expert Jim Sinclair stands by his prediction last year of an eventual gold price of $50,000 per ounce. Sinclair explains,
“You have to understand we are going into unprecedented deflation, and it’s the reaction of central banks around the world to the concept of deflation that brings about hyperinflation. – There will be debt monetization of all kinds of debt to maintain some sort of equilibrium. The price of gold is going to go to a level that is going to surprise everybody. I was told that this is a rally that you won’t sell. That means gold will go to a level and not react violently down from that level. – This is when gold is going to levels that today are considered more mental illness than monetary analysis. Silver is best understood as gold on steroids because whatever potential and direction is taken up by gold, silver will be multiplied by 2 or by 5. – Silver will outperform gold.”
Andrew Maguire: Whistle-blower, Independent London Precious Metals Trader & Analyst