- The sound of war drums are getting louder. This propaganda war against Iran is escalating. Iran does not have nuclear weapons, this is a widely reported fact. Despite the machinations of the west, fabricating ‘evidences’, no conclusive evidence exist that Iran has nuclear weapons or have the capability to build a nuclear bomb. A lot of what we read in the western MSM is pure propaganda and outright lies. Iran has not threatened America nor the west. Claims that Ahmadinejab wants to ‘wipe Israel off the face of the earth’ are propaganda and deliberate mistranslation of what he said.
- This coming war with Iran is about oil. China is the main target. Once the Illuminati elite control middle east oil totally, it is checkmate for China. There is also a planned war against Venezuela and Latin America for the same reason. Do not be deceived.
- Go back a few hundred years, these murderous Illuminati snakes demonized the native American Indians. American Indians were called savages, godless heathen, anti-Christian, not of Adam, not human but highly evolved animals, threat to our survival, liberty, religion, children …. etc.. This was to manipulate Christians to fight the war, to kill American Indians so that these snakes can grab their land, to build towns, railroads, farms etc… There were as many as 100 million native Americans before the white man came. Now, native Americans number in the few millions. The same method of fear and hate is being used to manipulate the sheeple now!
- God does not teach me to hate Muslims or Jews or any races. On the contrary, it is always a positive: To Love! To express God’s love towards others by preaching the Gospel of Jesus Christ. Do not be manipulated by these snakes, to goto war against Muslims and in this case the Iranians.
Anglo-Israeli “Doomsday” War Scheme Advances
February 21, 2010 (LPAC)—Sources close to the Israeli government have warned Executive Intelligence Review that Prime Minister Benjamin Netanyahu’s inner cabinet is close to making a decision to launch a preventive strike against Iran’s nuclear facilities. Such a decision, that would be a further step closer to a devastating regional confrontation, could come as early as Sunday, when the Israeli cabinet convenes. According to the source, a fierce debate is raging within the Israeli military, over whether Israel has the capacity to successfully strike Iran’s nuclear facilities at Natanz or elsewhere. Recently former Israeli Defense Forces Chief of Staff Gen. Dan Halutz told Israeli media that the IDF does not have the ability to seriously damage the Iranian program. But, according to an Israeli source close to the inner cabinet, several options are being reviewed for just such an attack. According to the source, in recent visits to Russia, both Netanyahu and Foreign Minister Avigdor Lieberman pressed Russian Prime Minister Vladimir Putin for permission to stage attacks against Iranian targets from sites inside Russia. Putin reportedly strongly shut the door on that option; however, similar approaches have been made to the government of Kazakhstan, according to the Israeli source. The source added that the preferred option, being promoted by factions in the IDF, is to launch attacks from Israeli submarines, equipped with Cruise missiles. The source noted that the accuracy of the Cruise missiles, launched from Israeli submarines is unreliable, and most of the Iranian sites on the Israeli target list are in urban areas.
The sources confirmed that the Obama Administration’s national security team has delivered a series of strongly worded messages, warning Israel against any unilateral attacks on Iran. U.S. military leaders, as well as Defense Secretary Robert Gates, Secretary of State Hillary Clinton, JCS Chairman Adm. Michael Mullen, National Security Advisor Gen. Jim Jones, and Vice President Joe Biden, all recognize that a military strike against Iran is the worst-case, last option, and that we are not even close to the point of having to make that decision. It is widely believed, including among Israeli planners, that Iran has a retaliatory asymmetric capability that would involve crippling the entire Persian Gulf oil flow, blowing out the entire world economy, if attacked.
Lyndon LaRouche warned that circles in London, including former Prime Minister Tony Blair, are the real potential architects of this “doomsday” scheme. It is those in London, who are desperate over the collapse of the entire British System, who may be contemplating an Israeli breakaway ally attack on Iran, that would bring on a planetary dark age. Just recall Blair’s testimony before the Chilcot Commission, in which he taunted the commissioners with the need to take military action against Iran today, just as he lied the U.S. and Britain into the 2003 invasion of Iraq. These people would have to be totally desperate, to be contemplating such a doomsday act, and I am afraid that they are, LaRouche warned.
- See also:
Ex. British Military: The Illuminati Plans World War 3 in 18 – 24 Months!
Lindsey Williams: Reality Disk 3. World War Planned After 2 Years. It Will Be Triggered In The Middle East!
The Construction of the Iran “Threat”: The Iran Versus the U.S.-Israeli-NATO Threats
Wars and Rumours of Wars: Coming Greater Middle East War To Trigger World War 3?
Did Ahmadinejad Really Called for Israel To Be ‘Wiped Off the Map’?
Iran Protests Courtesy of CIA
World Believes in The Same Iraq Style Lies About Iran
Ron Paul: Sanctions on Iran are an Act of War!
Iran FM Plays Down Threat of Pre-Emptive IDF Strike!
Intelligence Agencies Say No New Nukes in Iran
Iran to Completely Drop Dollar from Foreign Exchange!
The Real Reason for the Coming Iranian War: Oil and Pipeline Infrastructure!
Lavrov: No Proof Iran Makes Atomic Bomb!
The Real Reason Why USA & Israel Will Attack Iran!
America and Israel: More Lies, More Deception on Iran!
An Attack on Iran By America and Israel: Gold’s Blast-off?
Israeli, US Army Chiefs Hold Secret Talks on Iran!
Key Facts to Keep in Mind While Opposing War Against Iran!
Former UN Weapons Inspector: United States, Israel Creating Iran Crisis ‘Out of Nothing’.
Iran NOT After Nuclear Weapons, says IAEA Chief!
Ray McGovern: IRAN is IRAQ Part 2 !
Iran vs Israel: What The Media Wants You To Forget !
Iran, IAEA, Another War in the Works !
Iran’s Nuclear Program: Iran Truthful, in Treaty Compliance; US/Israel Lying, in Treaty Violation! False Flag, Lies and Nuclear Bombs!
Liberals and Democrats Will Support the Coming Mass Murder Campaign Against Iran !
Turkish President Erdogan: Focus on Israeli Nukes, not Iran Nuclear Energy Program !
Iran’s Nuclear Facilities: The Facts! Who is Really Destabilizing the Middle East?
Former UN Chief Inspector: There Were NO WMD in Iraq!
- Maverick Marc Faber may appear to be extreme. But these are extreme times. I agree with his analysis that this economic depression will lead to war. Governments have done it in the past and will do it again. The Illuminati elite want to start World War 3. They want to engineer this massive war, crisis, chaos … to force the world to accept their New World Order, Global Fascist Police State. It is the Hegelian dialectic at its most extreme and evil manifestation. Out of every world war, they have driven the world closer and closer to their One World Government, One World Currency and One World Central Bank.
- This coming war will target China mainly. China is the largest threat to their fiat currency hegemony and financial hegemony. China can go it alone and become a terrifying economic and military might. Most of Asia will follow China should push come to shove. This is the reason why the Obama administration has been attacking Japan via Japanese companies ie Toyota. The message is: ‘Make any stupid moves, we will dismember Japan!’. The combination of China and Japan will effectively end the west’s hegemony forever. The Illuminati elite have but a few years to take down China. Past that window, China will catch up militarily and it will be game over!
The world’s most powerful investors have been advised to buy farmland, stock up on gold and prepare for a “dirty war” by Marc Faber, the notoriously bearish market pundit, who predicted the 1987 stock market crash. The bleak warning of social and financial meltdown, delivered today in Tokyo at a gathering of 700 pension and sovereign wealth fund managers.
Dr Faber, who advised his audience to pull out of American stocks one week before the 1987 crash and was among a handful who predicted the more recent financial crisis, vies with the Nouriel Roubini, the economist, as a rival claimant for the nickname Dr Doom.
Speaking today, Dr Faber said that investors, who control billions of dollars of assets, should start considering the effects of more disruptive events than mere market volatility.
“The next war will be a dirty war,” he told fund managers: “What are you going to do when your mobile phone gets shut down or the internet stops working or the city water supplies get poisoned?” His investment advice, which was the first keynote speech of CLSA’s annual investment forum in Tokyo, included a suggestion that fund managers buy houses in the countryside because it was more likely that violence, biological attack and other acts of a “dirty war” would happen in cities.
He also said that they should consider holding part of their wealth in the form of precious metals “because they can be carried”. One London-based hedge fund manager described Mr Faber’s address as “excellent, chilling stuff: good at putting you off lunch, but not something I can tell clients asking me about quarterly returns at the end of March”.
Dr Faber did offer a few more traditional investment tips, although their theme fitted his general mode of pessimism. In Asia, particularly, he said, stock pickers should play on future food and water shortages by buying into companies with exposure to agriculture and water treatment technologies.
One of Dr Faber’s darker scenarios involves growing military tension between China and the United States over access to limited oil resources. Today the US has a considerable advantage over China because it has free access to oceans on both coasts, and has potential energy suppliers to the north and south in Canada and Mexico.
It also commands an 11-strong fleet of aircraft carriers that could, if necessary, secure supply routes in a conflict situation. China and emerging Asia, meanwhile, face the uncertainty of supplies that must travel from the Middle East through winding sea lanes and the Malacca bottleneck.
American military presence in Central Asia, Dr Faber said, may add to the level of concern in Beijing. “When I tell people to prepare themselves for a dirty war, they ask me: “America against whom?” I tell them that for sure they will find someone.”
At the heart of Dr Faber’s argument is a fundamentally gloomy view on the US economy and its capacity to service a growing mountain of debt. His belief, fund managers were told, is that the US is going to go bankrupt. Under President Obama, he said, the country’s annual fiscal deficit will not drop below $1 trillion and could rise beyond that figure.
Arch bears have predicted that US debt repayments could hit 35 per cent of tax revenues within ten years. Dr Faber believes that the ratio could easily hit 50 per cent in the same time frame.
FDIC Hits Record “Default” Level As Deposit Insurance Fund Plunges By $12.7 Billion To NEGATIVE $20.9 Billion!
- The level of denial is palpable in the MSM. If you listen to them, you will end up bankrupt. The facts and figures all point to a coming collapse of the financial system. The banking system is insolvent despite all the $trillions in bailouts and guarantees. The figure is about US$27 Trillion and not the US$700B TARP people are talking about. Coupled with the fact of : Citigroup Says Feds Ordered 7 Day Restriction On Bank Withdrawals ! , you must accept that America is very close to the edge of the cliff. Listen to good advice from Barton Biggs, Ron Paul, Bob Chapman, Charlie Munger …and many others, prepare for this coming calamity preemptively. ZeroHedge warns:
From Dow Jones:
The U.S. banking industry continued to struggle in the fourth quarter, as the number of banks on the brink of failure continued
to rise and the government’s fund to protect deposits fell sharply into the red.
The Federal Deposit Insurance Corp. said Tuesday that its deposit-insurance fund fell to $20.9 billion at the end of 2009, a $12.6 billion drop in the final three months of the year, as bank failures continued at a pace not seen since the savings and loan crisis. The fund’s reserve ratio was -0.39% at the end of the quarter, the lowest on record for the combined bank and thrift fund.
The deposit insurance fund is unlikely to soon see a respite from a decline in the number of failing banks: The FDIC said the number of banks on its “problem” list climbed to 702 at the end of 2009 from 552 at the end of September and 252 at the end of 2008. The number of banks on the list, which have combined assets of $402.8 billion, is the highest since June 1993.
“The continued rise in loan losses and troubled assets points to further pressure on earnings,” FDIC Chairman Sheila Bair said in a statement. “The growth in the numbers and assets of institutions on our ‘Problem List’ points to a likely rise in the number of failures.”
Industry indicators deteriorated nearly across the board. The FDIC said loan losses for U.S. banks climbed for the 12th straight quarter, while the total loan balances for U.S. banks continued to fall. The agency said the quarterly net charge-off rate and the total number of loans at least three months past due both were at the highest level ever recorded in the 26 years the data have been collected.
Net charge-offs of troubled loans occurred across all major loan categories, led by a $3.3 billion increase in residential mortgage loans. The FDIC said U.S. banks’ coverage ratio–reserves divided by the amount of noncurrent loans–fell to 58.1% in the fourth quarter from 60.1% in the third quarter.
The FDIC did cite some reasons for optimism. The banking industry was able to report a modest profit of $914 million in the fourth quarter, compared with a record loss of $37.8 billion in the final three months of 2008. And while the largest banks were the beneficiaries of much of the earnings improvement, the agency said more than half of FDIC-insured banks saw a year-over-year improvement in their net income.
Banks’ profits were helped by improvements in trading revenue, which totaled $2.8 billion the fourth quarter, and servicing income, which represented a gain of $8.0 billion. The FDIC also said that more than half of all banks reported higher net interest margins in the fourth quarter compared with third-quarter levels.
“Resolving these credit market dislocations will take time,” Bair said, describing banks as “bumping along the bottom of the credit cycle.”
Here is the full abysmal Q4 FDIC report.
- Ron Paul is correct. America has become a murderous, war mongering evil empire! The MSM is just a propaganda tool of the Illuminati elite. Just listen to the CNBC presenters as they attack Ron Paul! A vote for Ron Paul is a vote for America and a return to the Constitution. Ron Paul :
‘You can’t start war and call it peace making !’
Jenin Jenin: The World Is Turning A Deaf Ear To The Genocide of Palestinians by Zionist State Of Israel!
1980 Jewish Almanac
“Strictly speaking it is incorrect to call an ancient Israelite a ‘Jew’ or to call a contemporary Jew an Israelite or a Hebrew.”
(1980 Jewish Almanac, p. 3).
The Jewish Encyclopedia:
“Khazars, a non-Semitic, Asiatic, Mongolian tribal nation who emigrated into Eastern Europe about the first century, who were converted as an entire nation to Judaism in the seventh century by the expanding Russian nation which absorbed the entire Khazar population, and who account for the presence in Eastern Europe of the great numbers of Yiddish-speaking Jews in Russia, Poland, Lithuania, Galatia, Besserabia and Rumania.”
The American Peoples Encyclopedia
… for 1954 at 15-292 records the following in reference to the Khazars: “In the year 740 A.D. the Khazars were officially converted to Judaism. A century later they were crushed by the incoming Slavic-speaking people and were scattered over central Europe where they were known as Jews.
- This is a warning sign that all is not well. I am really uncomfortable reading this, as it implies the potential of bank runs! Why would they institute such a ruling if the banking system is healthy? Citigroup still has immense exposure to derivatives, which are now worthless. The reason why many banks are classified as solvent is because of the FASB ruling allowing banks to ‘Mark to Model’ for their assets, around March 2009. But for that, all the Top 5-7 banks are bust! Despite the government’s bailouts and guarantees amounting to about US$27T, the banks are still iffy! This tells you that the problem is not going away soon and the quadrillion $ derivatives is intractable! Paul Joseph Watson reports:
Announcement stokes fears of old fashioned bank runs if economy takes a turn for the worse.
A new advisory being sent by America’s third largest bank to its account holders has stoked fears that major financial institutions could be preparing for old fashioned bank runs if the economy takes a turn for the worse.
Originally reported by John Carney over at the Business Insider website, Citigroup is sending the following information to customers along with their bank statements. “Effective April 1, 2010, we reserve the right to require (7) days advance notice before permitting a withdrawal from all checking accounts. While we do not currently exercise this right and have not exercised it in the past, we are required by law to notify you of this change.”
An almost identical advisory to the one being sent out can be read on page 22 of Citbank’s Client Manual effective January 1, 2010, which can be read here from Citibank’s own website. “We reserve the right to require seven (7) days advance notice before permitting a withdrawal from all checking, savings and money market accounts. We currently do not exercise this right and have not exercised it in the past,” states the manual.
According to the Future of Capitalism blog, Citigroup originally claimed that the warning was only sent nationwide as a result of a mistake, but that the measures do apply to account holders in Texas.
However, in a statement, Citigroup confirmed that they had reserved the right to impose the new 7 day rule on all account holders nationwide, but claimed they had no plans to enforce it. The bank stated that they had been forced to enact the new policy as a result of federal regulations.
“When Citibank moved to unlimited FDIC coverage in 2009, we had to reclassify many checking accounts to allow for immediate withdrawals in order to ensure all customers qualified for the additional coverage. When we moved back to standard FDIC coverage with most major banks in 2010, Citibank decided to reclassify those accounts back to make them eligible again for promotional incentives. To do so, Federal Reserve Reg D requires these accounts, called NOW accounts, to reserve the right to require a 7-day notice of withdrawal. We recently communicated this technical requirement to our customers. However, we have never exercised this right and have no plans to do so in the future,” reads a statement released by the bank.
Over the last 18 months, numerous rumors of bank runs, “bank holidays,” and limitations on access to cash at ATM’s have been floating around. Citigroup’s new policy to restrict withdrawals won’t do anything to calm such fears. As we reported back in 2008, the Federal Deposit Insurance Corp., which guarantees individual accounts up to $100,000, only has about $50 billion to “insure” about $1 trillion in assets across the nation’s financial institutions.
This revelation prompted fears that an accelerating amount of bank closures could absorb FDIC funds and leave holders of money market and traditional savings accounts exposed.
- See also:
Citigroup Warns Customers It May Refuse To Allow Withdrawals
Citigroup Can Limit Demand Deposit Withdrawals; Money Funds Can Too
- As many as 48 out of 50 states are insolvent. Illinois may be the first but it won’t be the last. The big one is California, the 7th or 8th largest economy in the world! America is bankrupt at all levels: federal, state, municipal, corporate … individual … Yet the government has just increase the war budget to US$1 Trillion. Ask yourself why? The snakes in the District of Criminals (DC) just provided about US$27 Trillion of bailouts and guarantees to the banksters. Ask yourself why? This is nothing but the rape of the country by the Illuminati international banksters. The next stage is the destruction of the country via war! And I mean war in the homeland of America! Chicago Sun-Times reports:
It will take a massive tax increase — and $2 billion more in cuts — to reach solvency, group says.
SPRINGFIELD — To become solvent, the state must enact the largest tax-increase package in Illinois history, whack another $2 billion from already starved government programs and wrest major financial concessions from the state’s unionized work force, a nonpartisan government watchdog contends.
In a new analysis of Illinois’ “horrific” finances, the Civic Federation lays out the painful choices awaiting Gov. Quinn and the Legislature as they stare down an epic $12.8 billion budget deficit that has choked the flow of state cash to public universities and schools, transit systems and social-service agencies to the point of economic collapse.
“Doomsday is here for the State of Illinois,” said Laurence Msall, the organization’s president. The Civic Federation recommends that the state income tax be increased from 3 percent to 5 percent for individuals, that retirees’ pension and Social Security checks be taxed for the first time at the same rate as workers’ paychecks, and the tax on cigarettes be raised by another $1 per pack. The group also favors getting rid of $181 million in corporate tax breaks.
Those tax increases, which would generate more than $8 billion, should come only if the state first can persuade its unionized employees to pay more toward their pensions and health care, cut pension benefits for new workers and reduce overall spending by $2.1 billion to 2007 levels. Medicaid programs and elementary and secondary schools would be spared from those cuts to avoid sacrificing federal stimulus dollars, Msall said. “This is an economically reasonable approach to a horrific situation,” he said.
But AFSCME Council 31, state government’s largest union, has shown no interest in having its members — who have accepted furloughs and deferred pay increases — pay more toward their pensions and health care or in establishing what is known as a two-tier pension system where new employees would receive a less-generous retirement package than existing workers.
“Since this proposal to slash $2 billion exempts education and health care, it would mean reducing human services and public safety,” AFSCME spokesman Anders Lindall said. “We think that’s reckless, especially in a recession that’s driving demand for public services up, not down.”
The Civic Federation’s recommendations would enable the state to pay down the $12.8 billion deficit by more than $10 billion by June 2011, but $2.1 billion in red ink would carry over for at least another year under the group’s plan. The report’s release comes as Quinn prepares to launch an online site Wednesday to begin soliciting public input on what should be included or left out of his fiscal 2011 budget proposal, which he’ll unveil March 10.
Quinn’s office declined comment on the Civic Federation report but expressed interest in “working with the group during the upcoming budget debate.” Ground Zero in that debate is the Illinois House. Speaker Michael Madigan has insisted that his GOP rivals sign on to any tax increases and has begun calling them “dropouts” for what he regards as their inflexibility on finding new revenue.
“I don’t do predictions,” Madigan spokesman Steve Brown said, when asked about the Civic Federation plan and the chances any of it might pass. “I think the speaker has supported a cigarette tax increase. I think Democrats supported starting down the road to a two-tier pension system, but the ‘dropouts’ have done nothing.”
House Minority Leader Tom Cross (R-Oswego) has taken a tax increase off the table, instead pressing for budget cuts and pension reforms and noting the state’s fiscal crisis bloomed under seven years of Democratic-crafted budgets that Republicans didn’t vote for.
Told of the Civic Federation’s recommendations, Cross spokeswoman Sara Wojcicki withheld judgment on the report but offered no signs that Republicans are prepared to move off the dime on any tax increases this spring: “I’m not sure much has changed.”
Msall, with the Civic Federation, said that if lawmakers leave Springfield without getting out of the state’s budgetary black hole, everyone in Illinois will suffer. “It’s not sustainable to continue to ignore your vendors. It’s not sustainable to ask your schools, local governments and homes for the developmentally disabled to go out to the market to borrow” because the state isn’t fulfilling its funding promises, Msall said. “A failure to effectively address this crisis in a comprehensive form will result in not only lost opportunities but in greater pain.”
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- What economic recovery? Do we really believe the Bureau of Lying (Labor) Statistics? Do we really believe the economy is recovering without job recovery? I don’t think so. A consumer economy needs consumers. The amount of newly poor is rising. The amount of people on food stamps are in record high territoy! The New York Times reports:
BUENA PARK, Calif. — Even as the American economy shows tentative signs of a rebound, the human toll of the recession continues to mount, with millions of Americans remaining out of work, out of savings and nearing the end of their unemployment benefits.
Economists fear that the nascent recovery will leave more people behind than in past recessions, failing to create jobs in sufficient numbers to absorb the record-setting ranks of the long-term unemployed.
Call them the new poor: people long accustomed to the comforts of middle-class life who are now relying on public assistance for the first time in their lives — potentially for years to come. Yet the social safety net is already showing severe strains. Roughly 2.7 million jobless people will lose their unemployment check before the end of April unless Congress approves the Obama administration’s proposal to extend the payments, according to the Labor Department.
Here in Southern California, Jean Eisen has been without work since she lost her job selling beauty salon equipment more than two years ago. In the several months she has endured with neither a paycheck nor an unemployment check, she has relied on local food banks for her groceries.
She has learned to live without the prescription medications she is supposed to take for high blood pressure and cholesterol. She has become effusively religious — an unexpected turn for this onetime standup comic with X-rated material — finding in Christianity her only form of health insurance.
“I pray for healing,” says Ms. Eisen, 57. “When you’ve got nothing, you’ve got to go with what you know.” Warm, outgoing and prone to the positive, Ms. Eisen has worked much of her life. Now, she is one of 6.3 million Americans who have been unemployed for six months or longer, the largest number since the government began keeping track in 1948. That is more than double the toll in the next-worst period, in the early 1980s.
Men have suffered the largest numbers of job losses in this recession. But Ms. Eisen has the unfortunate distinction of being among a group — women from 45 to 64 years of age — whose long-term unemployment rate has grown rapidly.
In 1983, after a deep recession, women in that range made up only 7 percent of those who had been out of work for six months or longer, according to the Labor Department. Last year, they made up 14 percent.
Twice, Ms. Eisen exhausted her unemployment benefits before her check was restored by a federal extension. Last week, her check ran out again. She and her husband now settle their bills with only his $1,595 monthly disability check. The rent on their apartment is $1,380. “We’re looking at the very real possibility of being homeless,” she said.
Every downturn pushes some people out of the middle class before the economy resumes expanding. Most recover. Many prosper. But some economists worry that this time could be different. An unusual constellation of forces — some embedded in the modern-day economy, others unique to this wrenching recession — might make it especially difficult for those out of work to find their way back to their middle-class lives.
Labor experts say the economy needs 100,000 new jobs a month just to absorb entrants to the labor force. With more than 15 million people officially jobless, even a vigorous recovery is likely to leave an enormous number out of work for years.
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- It’s time for people in a state of denial to wake up! America is in deep trouble. American patriots must wake up and take their country back from the snakes in DC. These paid for whores have been selling out the country for far too long. They are just puppets doing the bidding of the Illuminati international banksters.
- The next stage in their plan is the ‘Nazification’ of America. They will use America much like Germany was used in WW2, to goto war for world conquest for their New World Order, Global Fascist Police State. It is apparent from the Patriot Act, Homeland Security, Continuity of Government….. airport full body scanner… on and on .. their plans are well advanced. Wake up Americans, your country needs you!
A parable about how one nation came to financial ruin.
In the early 1700s, Europeans discovered in the Pacific Ocean a large, unpopulated island with a temperate climate, rich in all nature’s bounty except coal, oil, and natural gas. Reflecting its lack of civilization, they named this island “Basicland.”
The Europeans rapidly repopulated Basicland, creating a new nation. They installed a system of government like that of the early United States. There was much encouragement of trade, and no internal tariff or other impediment to such trade. Property rights were greatly respected and strongly enforced. The banking system was simple. It adapted to a national ethos that sought to provide a sound currency, efficient trade, and ample loans for credit-worthy businesses while strongly discouraging loans to the incompetent or for ordinary daily purchases.
Moreover, almost no debt was used to purchase or carry securities or other investments, including real estate and tangible personal property. The one exception was the widespread presence of secured, high-down-payment, fully amortizing, fixed-rate loans on sound houses, other real estate, vehicles, and appliances, to be used by industrious persons who lived within their means. Speculation in Basicland’s security and commodity markets was always rigorously discouraged and remained small. There was no trading in options on securities or in derivatives other than “plain vanilla” commodity contracts cleared through responsible exchanges under laws that greatly limited use of financial leverage.
In its first 150 years, the government of Basicland spent no more than 7 percent of its gross domestic product in providing its citizens with essential services such as fire protection, water, sewage and garbage removal, some education, defense forces, courts, and immigration control. A strong family-oriented culture emphasizing duty to relatives, plus considerable private charity, provided the only social safety net.
The tax system was also simple. In the early years, governmental revenues came almost entirely from import duties, and taxes received matched government expenditures. There was never much debt outstanding in the form of government bonds.
As Adam Smith would have expected, GDP per person grew steadily. Indeed, in the modern area it grew in real terms at 3 percent per year, decade after decade, until Basicland led the world in GDP per person. As this happened, taxes on sales, income, property, and payrolls were introduced. Eventually total taxes, matched by total government expenditures, amounted to 35 percent of GDP. The revenue from increased taxes was spent on more government-run education and a substantial government-run social safety net, including medical care and pensions.
A regular increase in such tax-financed government spending, under systems hard to “game” by the unworthy, was considered a moral imperative—a sort of egality-promoting national dividend—so long as growth of such spending was kept well below the growth rate of the country’s GDP per person.
Basicland also sought to avoid trouble through a policy that kept imports and exports in near balance, with each amounting to about 25 percent of GDP. Some citizens were initially nervous because 60 percent of imports consisted of absolutely essential coal and oil. But, as the years rolled by with no terrible consequences from this dependency, such worry melted away.
Basicland was exceptionally creditworthy, with no significant deficit ever allowed. And the present value of large “off-book” promises to provide future medical care and pensions appeared unlikely to cause problems, given Basicland’s steady 3 percent growth in GDP per person and restraint in making unfunded promises. Basicland seemed to have a system that would long assure its felicity and long induce other nations to follow its example—thus improving the welfare of all humanity.
But even a country as cautious, sound, and generous as Basicland could come to ruin if it failed to address the dangers that can be caused by the ordinary accidents of life. These dangers were significant by 2012, when the extreme prosperity of Basicland had created a peculiar outcome: As their affluence and leisure time grew, Basicland’s citizens more and more whiled away their time in the excitement of casino gambling. Most casino revenue now came from bets on security prices under a system used in the 1920s in the United States and called “the bucket shop system.”
The winnings of the casinos eventually amounted to 25 percent of Basicland’s GDP, while 22 percent of all employee earnings in Basicland were paid to persons employed by the casinos (many of whom were engineers needed elsewhere). So much time was spent at casinos that it amounted to an average of five hours per day for every citizen of Basicland, including newborn babies and the comatose elderly. Many of the gamblers were highly talented engineers attracted partly by casino poker but mostly by bets available in the bucket shop systems, with the bets now called “financial derivatives.”
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- Will the FedRes let the bond market collapse? It is clear that foreigners are buying much less bonds, from the latest auction results. No amount of money is sufficient for the deficits the US government is generating. In the end, the FedRes will aggressively monetize debts (QE) by printing money out of thin air. It is a currency event and the precursor to the collapse of the USD. Whichever way you look at it, even if the bond market does not collapse, it will be paid with useless toilet paper USD. It amounts to the same thing: a collapse (albeit via the USD). Martin Weiss warns:
Trusting Washington and Wall Street is bankrupting millions of Americans … and now they’re at it again! In the 1990s, Wall Street urged you to buy Internet stocks at 500 and 1,000 times earnings — and even tried to railroad you into stocks with no earnings at all. Result: According to the Fed, nearly $6.6 trillion vanished into thin air when those stocks crashed and burned.
Then, in 2001, Washington got into the act — driving interest rates to their lowest levels since World War II … helping to create the greatest real estate bubble in history … and doing absolutely nothing when money-hungry bankers and brokers broke every rule in the book. Result: The Fed’s latest report reveals another $15.5 trillion in losses the great real estate bust, credit crisis and recession.
The bottom line: In less than one decade, investors who trusted Washington and Wall Street were fleeced to the tune of $22.1 TRILLION! Now, by bailing out bankers, brokers and CEOs, Washington has created the most dangerous bubble so far: The enormous and rapidly growing explosion of federal debt — U.S. treasuries — dumped on investors worldwide.
You don’t need a PhD in economics to know what’s next: Like the Tech Bubble and Real Estate Bubble that preceded it, this new bubble will also burst, wiping out trillions more dollars of invested wealth.
Three Compelling Reasons
Long-Term Bond Prices MUST Crash
Reason #1 — Exploding Federal Deficits: Washington’s current crop of drunken sailors is making some of their predecessors appear sober by comparison.
The 2009 budget deficit of $1.4 trillion was the worst in history — more than three times larger than the previous record. Recently, the Congressional Budget Office (CBO) projected that, rather than shrinking, the 2010 deficit will be $1.4 trillion. Worse, Washington will sink a total of $7.4 TRILLION deeper in debt over the next ten years.
The White House’s Office of Management and Budget (OMB) quickly disagreed, pegging the 2010 deficit at $1.6 trillion and promising an $8.5 trillion gusher of red ink over the next decade. The New York Times quickly chimed in, pointing out that about 80 percent of the government’s deficit forecasts over the past three decades were too optimistic.
In fact, just two years ago, the CBO said the 2010 deficit would be $241 billion. Now it’s likely to be at least $1.6 TRILLION — or over SIX TIMES MORE. Imagine if the government’s current ten-year debt estimates — already over $8 trillion — turn out to be equally far off-target! Of course, that would be impossible. Bond investors would simply stop lending Washington money long before that could happen.
Reason #2 — An explosion in the supply of U.S. Treasury bonds: It would be bad enough if Washington only had to borrow enough to equal each year’s budget deficits. That would mean $1.6 trillion-worth of treasuries hitting the auction block this year alone, many times more than in prior record years.
But Washington also has to borrow enough to replace Treasuries that are maturing — and that means an even greater avalanche of Treasuries need to find buyers each year. Already, total issuance of government debt already hit a stunning $922 billion in 2008. It then surged even higher to $2.1 trillion in 2009, and it’s on track to top $2.5 trillion this year. The size of just ONE WEEK’s debt auction has ballooned to almost $120 billion — more than the total supply hitting the market in a FULL year not long ago.
The laws of supply and demand dictate that when you get a massive increase in the supply of anything, its value plunges — and Treasury bonds are no exception.
Reason #3 — Global investors starting to rebel: So far, given the realities above, the U.S. treasury market has proven to be remarkably resilient because, in the global competition for investor funds, U.S. Treasuries are typically viewed as the “least ugly” alternative for many investors.
That’s why, so far, most foreign investors — now holding about 60 percent of all marketable U.S. Treasuries — have been willing to pay a relatively higher price for them and accept lower yields. But now even that is changing! As Mike Larson reported on Friday, China, the single largest holder of U.S. debt, dumped more Treasuries than in ANY month since the government started tracking the data in 2000.
This may help explain why the Treasury auctions last week turned out to be a monumental dud, with demand extremely weak. The 30-year auction was especially pathetic: Indirect bidders — mostly foreign governments and investors — took down just 28.5 percent of the bonds sold, compared to a ten-auction average of 43.2 percent percent.
Prices slumped. Yields surged. In effect, the U.S. Treasury had to bribe investors with higher yields to get them to buy. Immediately alarm bells began ringing at the Fed. On Thursday, just a few hours after we presented Nine Shocking New Predictions for 2010-2012, the U.S. Federal Reserve raised the discount rate on loans made directly to banks. The 25-basis-point increase was the FIRST hike in the discount rate since early 2006.
Secretly, the Fed is in a panic to ward off a bond market collapse! They know that, sooner or later, they MUST send the message that they’re serious about cutting back on their mad money printing.
The danger of course, is that foreign investors will get an entirely different message: That Washington’s efforts to fight the most severe recession since the Great Depression are waning.
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Ex. British Military: The Illuminati Plans World War 3 in 18 – 24 Months!
Lindsey Williams: Reality Disk 3. World War Planned After 2 Years. It Will Be Triggered In The Middle East!
Russia Warns US Against Military Strike On Iran !
Russian Chief of Staff: US Plans To Strike Iran !
Webster Tarpley: Establishment Will Blackmail Obama Into Attacking Iran!
Bob Chapman: The Illuminati Engineered This Sovereign Debt Crisis To Bankrupt Nations. The End Game is War, Depopulation, World Government And One World Currency !
2010: U.S. To Wage War Throughout The World!
Illuminati: The Hidden Agenda for World Government!
The United Nations and The Occult Agenda. The Coming One World Religious System!
Lindsey Williams: What The Illuminati Elite Plan For 2010 and 2011!
Lindsey Williams: What Will Happen To America in 2010!
Lindsey Williams: Hope Disk 2. Within 2 Years The Dollar Will Be Worthless. Gold And Silver Are The Currencies Of The Elite!
Lindsey Williams: Tragedy Disk 1. The Illuminati’s Plan For The Next 2 Years!
Lindsey Williams: 30%-50% Dollar Devaluation in 12 Months!
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