Written by admin on May 21st, 2011


For People Who Think




Amid all the Red Herrings splashed across the entire Media, the one really big and significant event, which was completely ignored by the Media, happened on Saturday 9/12: We had the first huge demonstration against being taxed to death. There were about 75,000 people in Washington protesting and millions more across the entire country. The media, except for Fox News, did not cover it


DANGER AHEAD: The coming Commercial Real Estate failures, bankruptcies and foreclosures will DWARF the sub prime debacle. The economy is NOT going to TURN AROUND because of the TARP money-which is just basically a financial “papering over” of trillion dollars bail out of whom? Certainly not the people. The stock market is now a totally RIGGED GAME.  The movement of all the bank stocks is totally rigged because all the banks are BANKRUPT. The FDIC is bankrupt, Freddie and Fannie are bankrupt and the Federal Government is bankrupt. That is why they are not lending even though their balance sheets look like they are strengthening. They all know that there are a lot more right-offs yet to come.


A while back, I mentioned that most of the homebuilders would go bankrupt. It has not happened yet; I refer you to the Deutche Bank projection that by 2011, fully 1/2 of all the homes in the U.S. will be worth less than their mortgages. By then, the homebuilders will be having their burials.  Soon, 26 million households will be getting their increases in their Alt A mortgages.


The more the U.S. government talks about stimulus, the cheaper the dollar is going to get and the higher Gold is going to go. I may be repeating myself for emphasis, but JOBS are not going to be coming back. Many jobs will be permanently gone, never to return and this is going to make this the greatest recession/depression of all.


There has been a great BANK ROBBERY, but the banks have done the robbing.

The present culture is to LIE, from Wall Street to Main Street, to the Government pronouncements and finally our media… The Bernanke pronouncement made big headlines; that this recession is almost over. Mr. Bernanke has NEVER been right in any of his pronouncements. That is quite a record. The lying to the public is structural, endemic, and indigenous.


The next item to fall will be the colleges and universities.  Their tuitions have been going up for years and that too must end. The endowments are down an average of 25%, the Alumni no longer have the money they once had. When they do graduate with liberal arts degrees and saddled by huge debts–there will be no jobs for these people, and little future.


Just to stay even with the employment issue and have jobs for the new people coming out of schools and colleges, we have to CREATE 150,000 jobs per month. Instead, we are losing on average 500,000 jobs every month for six months now. Who is kidding whom that the recession is almost over. 


WAKE UP: Look at the math when it comes to spending. We must borrow three billion per day from foreigners just to stay alive. The interest on our present debt is now 800 million per day. How much longer will foreigners keep financing this debt as they are all now afraid of the dollar? The US must let the “too big to fail”, FAIL. No more bailouts. That is what “cleansing” is all about. Right now it is all about bailing out the wealthy. This has to stop, but it may already be too late.


MONETIZATION:  Is now being RECOGNITION BY CREDITORS. THE U.S. DOLLAR IS GOING TO BE SLOWLY ABANDONED.  Desperation is now engrained in our monetary policy. It is also no longer hidden. The United States credit markets are losing their legitimate liquidity and increasingly are turning to the desperate reckless alternative, namely the dreaded monetization – the WEIMAR pathway has been taken. In fact, U.S. $ based bonds of all types might soon rely on direct monetization also.  It means that the Fed will be buying all types of bonds for their portfolio to hold up the financial system. If it were not for the Fed buying most of the U.S. Treasuries issued (though hidden), the long term interest rates would be rising quickly and with alarm, with major fallout damage to the U.S. dollar, through failed auctions. 


Dilution of the U.S. dollar from the printing press is certain to result in a much lower U.S. dollar exchange rate. Bubbles always break. There is not one bubble in the U.S. landscape that has been properly identified by the bankers who created them. There really is no way of knowing how many tens of billions of dollars of Treasuries have been secretly bought .by the Federal Reserve in previous “fraudulent” auctions. With the current bubble, as with all bubbles, there is going to be a bursting, then a drop in price and it will be both painful and rapid when the awareness spreads of this monetization. I am looking for a 30% to 50% loss in the value of the dollar. It may take six months or it may take two years.

Many people talk about DEFLATION, but only because they don’t fully understand what Deflation and Inflation really are. It really looks to me like stagflation (inflation with bad unemployment) and a hyperinflation Tsunami is already in sight. All Central Bank and U.S. government responses have been and will continue to be the same, which is money printing, debt issuance, and running federal deficits.


We are on the verge of an inflation spill over. There is nothing laid out by the teachings from the Ludwig Von Mises Austrian School of Economics that has failed to occur. This discusses the approaching phase 2 which states that monetary inflation must accelerate to sustain growing bubbles. It also must accelerate to sustain these bubbles that break anyway and the inflation must continue to accelerate in an attempt to prevent the whole system from collapsing.


We have a government that is not equipped to fix an actual crisis. All they do is give the appearance of action, while leaving the actual reform behind as they never look for, let alone address, the actual causes. The people who have created the financial schemes that have robbed people of their entire future are still free while keeping their tremendous bonuses. You are witnessing an Empire collapsing from within (as they all do). Our real unemployment is now past 21%. More than 260,000 jobs per month disappear. (Not unemployment, but job positions folding, never to come back again.)


Governments and the financial systems they control have been rejecting economic law for some time now. There are always consequences for doing this.

Leveraged buyouts with nothing down: Will probably be the next bubble to implode with no bottom in sight.


Without a proper warning, the U.S. public is aligned to lose their life savings. Home equity, pension funds, and savings accounts are now vulnerable to deception, ruses, and false messages (propaganda). They need to heed the warnings, to depart from paper based investments. They need to shed U.S. dollar based securities and assets of all kinds and to fully embrace gold and silver. You will and are witnessing the largest transfer of wealth from paper assets to HARD precious assets. Few will do this or recognize this as they will rush to US Treasuries, the Biggest and last bubble that must eventually implode..


The bureaucratic state has continued expanding its reach across the U.S. economy at an astounding pace. At the very same time, the collateral foundation has “fallen” out from under the U.S. banking and financial system exposing it to U.S. .1 trillion in loan write-offs while having a capital of a mere $ U.S. 1.4 trillion. If this does not say insolvency in large letters, the insolvency of the U.S. Treasury does. The Government’s collateral foundation means income taxes. People out of work pay no taxes at all. They ask for refunds and go on the dole.


The G-20, which will be meeting soon, has slashed interest rates, thrown trillions in newly created “money” at the financial system, put blanket guarantees on the bank deposits of their citizens and prevented bank “assets” from being priced in ANY kind of market. And they have done this in unison. Now, as I see it, they are formulating plans to circumvent the consequences of their actions, it will not work.


To repeat myself, you now have the greatest “heist” or takeover of government by Wall Street, in U.S. history. They are taking over Washington and sucking it dry, especially by Goldman Sachs. The Fed is now giving all the money printed to mostly the large banks. Virtually nothing goes to Main Street.


We are entering the EARLY part of the greatest depression in our history. 


                                           Avoiding Economic Lessons


In fundamental terms, production must come before consumption. Today, we are told that at least for the past 10 years, consumer spending has accounted for between 67-70% of the U.S. economy. That is gross domestic product. In reality, this is impossible, but we have changed the rules. All

Pages: 1 2 3

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Leave a Reply