Socio-Economics History Blog

Socio-Economics & History Commentary

The Global Debt Bomb!

Forbes: Unchartered Waters. Governments around the world will issue an estimated $4.5 trillion in debt this year, triple the five-year average for industrial countries.

  • No matter how I try to see things in a positive light, the reality is: the world is heading towards calamity. 2010 is the year of calamity and I should add: even more wars. It seems like 1929 -1939 playing out all over again. And we all know how it ended: World War 2.
     
  • Sovereign debt defaults mean monetary crisis and bond crisis. How long can the money powers manipulate the market to give a sense of normality and recovery? Not much longer I am afraid. Not much longer. America will need to borrow as much as US$2T and refinance as much as $1.5T. The FedRes will step up QE, printing money out of thin air! Forbes reports:
     
    Kyle Bass has bet the house against Japan ….  The Dallas hedge fund manager ….. is so convinced the Japanese government’s profligate spending will drive the nation to the brink of default that he financed his home with a five-year loan denominated in yen, which he hopes will be cheaper to pay back than dollars. Through his hedge fund, Hayman Advisors, Bass has also bought $6 million worth of securities that will jump in value if interest rates on ten-year Japanese government bonds, currently a minuscule 1.3%, rise to something more like ten-year Treasuries in the U.S. (a recent 3.4%). A former Bear Stearns trader, Bass turned $110 million into $700 million by betting against subprime debt in 2006. “Japan is the most asymmetric opportunity I have ever seen,” he says, “way better than subprime.”
     
    Bass could be wrong on Japan. The island nation (and the world’s second-largest economy) has defied skeptics for so long that experienced traders call betting against it “the widowmaker.” But he may be right on the bigger picture. If 2008 was the year of the subprime meltdown, 2010, he thinks, will be the year entire nations start going broke.
     
    The world has issued so much debt in the past two years fighting the Great Recession that paying it all back is going to be hell–for Americans, along with everybody else. Taxes will have to rise around the globe, hobbling job growth and economic recovery. Traders like Bass could make a lot of money betting against sovereign debt the way they shorted subprime loans at the peak of the housing bubble.
     
    National governments will issue an estimated $4.5 trillion in debt this year, almost triple the average for mature economies over the preceding five years. The U.S. has allowed the total federal debt (including debt held by government agencies, like the Social Security fund) to balloon by 50% since 2006 to $12.3 trillion. The pain of repayment is not yet being felt, because interest rates are so low–close to 0% on short-term Treasury bills. Someday those rates are going to rise. Then the taxpayer will have the devil to pay.
     
    Whether or not you believe the spending spree was morally justified, you have to be concerned about the prospect of a dismal, debt-burdened fiscal future. More debt weighs heavily on GDP, says Carmen Reinhart, a University of Maryland economist. …. Reinhart has found that a 90% ratio of government debt to GDP is a tipping point in economic growth. Beyond that, developed economies have growth rates two percentage points lower, on average, than economies that have not yet crossed the line. (The danger point is lower in emerging markets.) “It’s not a linear process,” she says. “You increase it over and beyond a high threshold, and boom!” The U.S. government-debt-to-GDP ratio is 84%.
     
    We’ve been through this scenario before. It’s especially ugly because we get hit by inflation, too. In the years immediately after World War II inflation surged past 6%, while economic growth flagged and the government-debt-to-GDP level exceeded 90%, note Reinhart and Rogoff. The country worked that ratio down over the next half-century. Now the ratio is shooting up again.
     
    America is a nation of spendthrifts, addicted to easy credit and dependent on the kindness of savers overseas to keep us comfortable. Our retail industry hangs on credit cards and our real estate on 95% financing and the tax rewards for mortgage interest. The personal savings rate has climbed from negative 0.4% in 2006 to a positive 4.5% rate now, but that is still a pathetic figure for a nation whose government is un-saving all that and more with its deficit budget. Politicians on this continent are good at compassion, whether trying to help people stay in their overpriced homes or offering health care to millions of those without it. They are not so adept at nurturing growth.
     
    If the GDP doesn’t expand at “normal” rates of 3% to 5% coming out of this recession, wrestling down the debt will be very tough, indeed–perhaps impossible without drastic cuts in spending and higher tax rates on many fronts. The Congressional Budget Office currently projects the fiscal deficit will decline from 10% of GDP next year to around 4.4% from 2013 to 2015. But that assumes economic expansion of at least 4%, not the 2% predicted in the study by Reinhart and Rogoff. You see the vicious cycle here: Debt depresses growth, and then low growth makes paying down the debt an impossible task.
     
    U.S. corporate income tax receipts were down 55% in the year ended Sept. 30, 2009 to $138 billion. It may be a long while before these tax collections get back to where they were. As corporate profits recover, factory utilization will be up and inflation will be close behind. At that point the 0% yield on Treasury bills will be history. Rolling over the national debt will become a lot more expensive. Higher rates on Treasuries will work their way through the debt market, driving up the cost of money for homeowners, businesses and already struggling state and local governments.
     
    “The economy over the last six months has been on a sugar high,” says Benn Steil, senior fellow at the Council on Foreign Relations and author of Money, Markets and Sovereignty (Yale, 2009), a survey of the relationship between money and the state. If Congress and the Obama Administration don’t trim deficits, he says, “we will get to the point where credit is much more expensive in the U.S. than it ever has been in the past.”
     
    Most states are already having trouble paying their bills and, of course, don’t have printing presses with which to finance their debts. They are turning to Washington for help and may succeed in putting some of their liabilities on the federal balance sheet. With growing off-balance-sheet obligations, notably unfunded pension liabilities (see graphic in “Debt Weight Scorecore”), the states will be competing for years with the federal government for scarce taxpayer dollars.
     
    “U.S. states are like emerging markets,” says Reinhart. “They spend a lot during the boom years and then are forced to retrench during the down years.” Cutting expenses sounds good theoretically, but look at California: Students (and faculty) are up in arms over proposed tuition increases and cutbacks at the state’s once prestigious university system; state employees are mounting a fierce legal battle against furloughs and other wage concessions.
     
    Mainstream credit analysts are worried. The U.S. has been able to sell vast amounts of debt because the Treasury market, with $500 billion a day in turnover, is considered safe and dwarfs all other debt markets. But Brian Coulton, head of global economics at Fitch Ratings in London, warns that once rock-solid economies like the U.S. and the U.K. could join shakier nations like Japan and Ireland in losing their aaa ratings if they don’t get their bad habits under control. “While aaas can borrow in the short term, very high and rising government debt-to-GDP ratios are ultimately not consistent with aaa status,” Coulton says.
     
       …. to continue reading
    click here!

    Forbes: Private banking assets tend to become public problems in a crisis. By that measure European countries are far worse off than the U.S.

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January 23, 2010 Posted by | Economics | , , , , , , , , , , , | 10 Comments

Lady Antebellum – Need You Now !

January 23, 2010 Posted by | Uncategorized | | Comments Off on Lady Antebellum – Need You Now !

A Few Weather Modification Radar Signatures!

Someone Used HAARP to Kill Ophelia? ‘Tuning Fork’ Aimed At Center of Ophelia to Diffuse It!

1/4/1999 PENNSYLVANIA RING. Source: http://members.tripod.com/~DELTA_9/

  1/21/1999- -TEXAS- -NEW MEXICO RING . Source: http://members.tripod.com/~DELTA_9/

Weather Radar Anomalies

January 23, 2010 Posted by | Science & Technology | | 16 Comments

Lt. Col. Tom Bearden: Weather Modification & Energy Weapons ! The Science Behind It!

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January 23, 2010 Posted by | GeoPolitics, History, Science & Technology | , | 19 Comments

FlashBack: Professor Chossudovsky on Weather Warfare!

  • Here are some interesting articles on HAARP and weather warfare. Click on links to read entire article. Excerpts:
     
    Washington’s New World Order Weapons Have the Ability to Trigger Climate Change 
    “WEATHER WARFARE”
    World renowned scientist Dr. Rosalie Bertell confirms that “US military scientists … are working on weather systems as a potential weapon. The methods include the enhancing of storms and the diverting of vapor rivers in the Earth’s atmosphere to produce targeted droughts or floods.” (2) Already in the 1970s, former National Security advisor Zbigniew Brzezinski had foreseen in his book “Between Two Ages” that:
     
    Technology will make available, to the leaders of major nations, techniques for conducting secret warfare, of which only a bare minimum of the security forces need be appraised… [T]echniques of weather modification could be employed to produce prolonged periods of drought or storm.”
     
    Marc Filterman, a former French military officer, outlines several types of “unconventional weapons” using radio frequencies. He refers to “weather war,” indicating that the U.S. and the Soviet Union had already “mastered the know-how needed to unleash sudden climate changes (hurricanes, drought) in the early 1980s.”(3) These technologies make it “possible to trigger atmospheric disturbances by using Extremely Low Frequency (ELF) radar [waves].” (4) A simulation study of future defense “scenarios” commissioned for the US Air Force calls for:
     
    “US aerospace forces to ‘own the weather’ by capitalizing on emerging technologies and focusing development of those technologies to war-fighting applications… From enhancing friendly operations or disrupting those of the enemy via small-scale tailoring of natural weather patterns to complete dominance of global communications and counterspace control, weather-modification offers the war fighter a wide-range of possible options to defeat or coerce an adversary… In the United States, weather-modification will likely become a part of national security policy with both domestic and international applications. Our government will pursue such a policy, depending on its interests, at various levels.(5)
      
    The Ultimate Weapon of Mass Destruction: Owning the Weather” for Military Use
    What are the underlying causes of extreme weather instability, which has ravaged every major region of the World in the course of the last few years? 
       
    Environmental warfare is defined as the intentional modification or manipulation of the natural ecology, such as climate and weather, earth systems such as the ionosphere, magnetosphere, tectonic plate system, and/or the triggering of seismic events (earthquakes) to cause intentional physical, economic, and psycho-social, and physical destruction to an intended target geophysical or population location, as part of strategic or tactical war.” (Eco News)
     
    Hurricanes and tropical storms have ravaged the Caribbean. Central Asia and the Middle East are afflicted by drought. West Africa is facing the biggest swarm of locusts in more than a decade. Four destructive hurricanes and a tropical rain storm  Alex, Ivan, Frances, Charley and Jeanne have occurred in a sequence, within a short period of time. Unprecedented in hurricane history in the Caribbean, the island of Grenada was completely devastated: 37 people died and roughly two-thirds of the island’s 100,000 inhabitants have been left homeless; in Haiti, more than two thousand people have died and tens of thousands are homeless. The Dominican Republic, Jamaica, Cuba, the Bahamas and Florida have also been devastated. In the US, the damage in several Southern states including Florida, Alabama, Georgia, Mississippi and the Carolinas is the highest in US history.
        …..
    Weather Warfare
    The significant expansion in America’s weather warfare arsenal, which is a priority of the Department of Defense is not a matter for debate or discussion. While, environmentalists blame the Bush administration for not having signed the Kyoto protocol, the issue of “weather warfare”, namely the manipulation of weather patterns for military use is never mentioned.
     
    The US Air Force has the capability of manipulating climate either for testing purposes or for outright military-intelligence use. These capabilities extend to the triggering of floods, hurricanes, droughts and earthquakes. In recent years, large amounts of money have been allocated by the US Department of Defense to further developing and perfecting these capabilities. 
     
    Weather modification will become a part of domestic and international security and could be done unilaterally… It could have offensive and defensive applications and even be used for deterrence  purposes. The ability to generate precipitation, fog, and storms on earth or to modify space weather, … and the production of artificial weather all are a part of an integrated set of technologies which can provide substantial increase in US, or degraded capability in an adversary, to achieve global awareness, reach, and power. (US Air Force, emphasis added. Air University of the US Air Force, AF 2025 Final Report,
    http://www.au.af.mil/au/2025/ )
     
    While there is no firm evidence that the US Air Force weather warfare facilities have been deliberately applied to modify weather patterns, one would expect that if these capabilities are being developed for military use, they would at least be the object of routine testing, much in the same way as the testing of new conventional and strategic weapons systems. 

     

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January 23, 2010 Posted by | GeoPolitics | , , , | 21 Comments

Haiti Killer Quake Caused By Scalar Weapon !

23 “Thus he said: ‘ The fourth beast shall be
 A fourth kingdom on earth,
Which shall be different from all other kingdoms,
 And shall devour the whole earth,
Trample it and break it in pieces.
Daniel 7:23

  • The endgame is in sight. The Illuminati global élite are making their final moves for their New World Order, One World Government, global fascist police state! Tesla’s Electro-Magnetic Scalar weapons will increasingly be used for the coming wars! It provides plausible deniability. The Earl of Stirling writes:
     
    The reality of power and its use in the world is vastly different than the perceived reality that most people have. The reality of power is rather frighting and the mainstream news media, ever the tool of those hidden forces that control things from the shadows, indoctrinates the masses against “conspiracy theories”. There is a massive effort in the modern age to keep the citizenry dumbed down and politically immature. They ‘raise’ us rather like mushroom farmers raise mushrooms, “in the dark and fed manure”.
     
    I write daily on my blog about what is really going on in this world. I have been a consultant to three aerospace/aviation firms; I am a specialist in theoretical weaponry strategy and design. I generally harbor no illusions about the truly evil nature of the global banking families, their Illuminati organization and related groups, but even I was reluctant to see the large earthquake in Haiti as anything but a natural event. It’s not that I lack knowledge about the little known field of Scalar Warfare, which is largely based on the works of the late Nickola Tesla. I simply, like most people, did not want to face the fact that this could have been a man-created quake instead of something natural. The horror, evident in the pictures and descriptions of the deaths of hundreds of thousands from the quake, simply is so great that it is human not to want to accept that it could have been or even was a deliberate act of mass murder.
     
    We have long known that there are often certain precursors to natural earthquakes. These natural precursors include low level but widespread ‘Earth lights’ that are sometimes seen in the sky before a large quake, the dropping of well water levels, and strange behavior by certain types of animals. All of which have perfectly logical explanations.
     
    We also know, that there are technologies, usually dating back to the late Nickola Tesla’s work (he was responsible for a large part of the electrical discoveries and advances of the first half of the Twentieth Century), that can effect weather (even going so far as to create and direct hurricanes; a field known as Weather Warfare) and can cause earthquakes and other really massive events (overall this field is known as Scalar Warfare in its military applications).
     
    There is documented evidence that a powerful quake in China was created by scalar weapons based on a wedding party video that showed plasma discharge lights in the sky before that earthquake. There is also evidence to show that some hurricanes behaved as if they were being directed and enlarged by this technology. There have been a couple of articles published suggesting that the Haiti earthquake was the testing of a ‘earthquake machine’, perhaps a test that went wrong. Hugo Chavez, the President of Venezuela, has come out with an official claim that America used a ‘weapon’ to create the Haiti earthquake.
     
    A key bit of evidence was filmed by Christian missionaries over the epicenter of the Haiti earthquake a few hours (see video above) before the quake hit. This was a large very bright orange glow or ‘ball’ in the sky; in reality it was a plasma discharge. Such a massive and bright plasma ‘ball’ has never been seen in natural earthquakes in human history.
     
    As with any major event that is either a False Flag Operation or a man-made “natural” disaster, we need to ask Qui Bono (Who Benefits) and Why?
     
    I have come to the conclusion that the use of a scalar weapon on the poor masses of Haiti did happen and is directly connected to the massive little known oil reserves in and near Haiti and to the coming attack on Iran/general Middle East War/World War III. The major oil companies have long known of the oil fields in and near Haiti (as well as other places that have also been kept effectively hidden). These have been kept largely secret as part of long term corporate planning for the day when either Middle Eastern oil would run out or not be available due to war or other reasons.
     
    The horrific Haitian earthquake has given cover to the military operation to take full operational control over Haiti in order to begin the process of turning Haiti into a replacement for a large percentage of the crude oil coming from the Middle East. Not only will Haitian oil be ‘found’ and exploited but the ports and some of the land will be used for transportation and storage of the crude oil. 

Hurricane Rita 23 Sep 2005 off the coast of Texas. Weather Modification Radar signature. Source: http://www.enterprisemission.com/weblog/weblog.htm

Someone Used HAARP to Steer or Speed Up Hurricane Rita?

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January 23, 2010 Posted by | GeoPolitics | , , , , | 25 Comments