Alex Jones published a surprising paper on flexible quantitative (QE3). The information that was exposed is very interesting, and is also somehow telling the world prepare for the worst between the months October-November-December. The paradigm shift is accelerated and has no turning back. The collapse is inevitable. The world will have to replace the dollar. Check here the link:http://www.prisonplanet.com/%E2%80%9Cdollar-index-headed-for-rapid-collapse%E2%80%9D-over-next-3-to-4-weeks.html
The Federal Reserve is a secret society illuminati. This system is privately owned and not owned by the government. The system was initiated by the Rockefellers, Rothschilds, with the sole purpose of gaining control of the world economy. The creators of the Federal Reserve are the founders of the Council on Foreign Relations (CFR), which are interconnected with Freemasonry, the Trilateral Commission, the Bilderbergs, the Club of Rome, the Committee of 300 (which controls the finances, insurance, politics , industry, and religion, and leader of this Committee is Queen Elizabeth), G-8, Knights of Malta, Vatican, World Economic Forum; Rosicrucianism, the Knights of the Garter, the Priory of Sion (they believe to be the bloodline of the Holy Grail bloodline of the antichrist) and others.
The Federal Reserve slashed interest rates and loans to lower levels of history. This type of monetary policy triggered the debt crisis, which erupted after an implosion in 2008. Starting from that point on the dollar has become inflationary. Then this money was injected into the U.S. banking system by devaluing the dollar even more, with the prints, fiat money. It is because of that that QE2 failed. And now in 2012, the Fed again, injected the third round of prints fiat money to banks to defend themselves against multiple crises to come. The Federal Reserve is not insane, she knows very well what he is doing. She wants to destroy the dollar and replace it with the AMERO. This is the political illuminati.
As you see, is all part of a plan!!
If there really is an economic recovery, so why the Fed is still keeping interest rates at almost zero after almost three years, and that keeps measures Quantitative Flexible ?
The logic is that this will spill over into a hyper-inflation!!
Alex Jones is right to say that there will be hyperinflation. The collapse of the dollar is inevitable. The probability is very low in saying that the dollar will again rise. This will hurt exports and mainly OPEC. The result will be a currency crisis. The whole world will opt for other reserve currencies, will opt for gold, will opt for various exchange mechanisms, ie, it will not stop, the dollar will fall like a stone.
So what is the solution? AMERO.
The illuminati plan is to present the AMERO, in the world between November-December as shown in some of the articles posted anterios. See the link here:https://www.facebook.com/groups/globalresearch/permalink/10150674124913652/
I think things are going very fast.
The plan is being followed to the letter, the illuminati plan is functioning !!
We have to wait and see how things will unfold. If these changes occur, the AMERO will be the currency that is circulated electronically on the world market. This means that the next step of the illuminati is World War III.
Are you prepared?
Published by Alexandre Silva
The Obama Administration during his first term in office on the other hand has INCREASED NEW FEDERAL REGULATIONS by 12,649 and there are over 4,200 MORE Federal Regulations Pending.
ANYONE SEE A PROBLEM HERE???
This Information comes from the National Archives
You can’t accuse Federal Reserve Chairman Ben Bernanke of not living up to his nickname. Back in 2002, Bernanke delivered a speech entitled “Deflation: Making Sure ‘It’ Doesn’t Happen Here” in which he referenced a statement by economist Milton Friedman about fighting deflation by dropping money from a helicopter. Well, it might be time for a new nickname for Bernanke because what he did today was a lot more than drop money from a helicopter. Today the Federal Reserve announced that QE3 will begin on Friday, but it is going to be much different from QE1 and QE2. Both of those rounds of quantitative easing were of limited duration. This time, the quantitative easing is going to be open-ended. The Fed is going to buy 40 billion dollars worth of mortgage-backed securities per month until they have decided that the economy is in good enough shape to stop. For those that get confused by terms like “quantitative easing” and “mortgage-backed securities”, what the Federal Reserve is essentially saying is this: “We’re going to print a bunch of money and buy stuff for as long as we feel it is necessary.” In addition, the Federal Reserve has promised to keep interest rates at ultra-low levels all the way through mid-2015. The course that the Federal Reserve has set us on is utter insanity. Ben Bernanke can rain money down on us all he wants, but it is not going to do much at all to help the real economy. However, it will definitely hasten the destruction of the U.S. dollar.
And the Federal Reserve is apparently very eager to get QE3 going. Purchases of mortgage-backed securities are going to start on Friday.
In the coming months, hundreds of billions of dollars that the Federal Reserve has zapped into existence out of nothing will be injected into our financial system.
So what will happen to all of this new money?
If banks and financial institutions use that money to make loans then it could have somewhat of a positive impact on the economy in the short-term.
However, the truth is that it isn’t as if banks are hurting for cash to loan out. In fact, right now banks are already sitting on $1.6 trillion in excess reserves. Just like with the first two rounds of quantitative easing, a lot of the money from QE3 will likely end up being put on the shelf.
But the stock market loved the news because they know that the previous two rounds of quantitative easing have been great for the financial markets. On Thursday, the stock market soared to levels not seen since December 2007.
There is much rejoicing on Wall Street right now.
And this stock market bounce is great for Bernanke’s good buddy Barack Obama.
Obama nominated Bernanke to a second term as Fed Chairman, and this might be Bernanke’s way of paying him back.
But of course the Fed is supposed to be “above politics” so that would never happen, right?
The Federal Reserve essentially “crossed the Rubicon” today. No longer will quantitative easing be considered an “emergency measure”. Rather, it will now be considered just another “tool” that the Fed uses in the normal course of business.
Considering how vulnerable the U.S. dollar already is, announcing an “open-ended” round of quantitative easing is utter foolishness. According to the Fed, when you add the 40 billion dollars of new mortgage-backed security purchases per month to all of the other “easing” measures the Fed is continuing to do, the grand total is going to come to about 85 billion dollars a month. The following is from the statement that the Fed released earlier today….
To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee agreed today to increase policy accommodation by purchasing additional agency mortgage-backed securities at a pace of $40 billion per month. The Committee also will continue through the end of the year its program to extend the average maturity of its holdings of securities as announced in June, and it is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities. These actions, which together will increase the Committee’s holdings of longer-term securities by about $85 billion each month through the end of the year, should put downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative.
The Committee will closely monitor incoming information on economic and financial developments in coming months. If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability. In determining the size, pace, and composition of its asset purchases, the Committee will, as always, take appropriate account of the likely efficacy and costs of such purchases.
So what does all of this mean?
I really like how one analyst put it when he described this announcement as a “I’m gonna ease till your eyes bleed kinda statement“.
The Fed also promised to keep interest rates at “exceptionally low levels” until mid-2015….
To support continued progress toward maximum employment and price stability, the Committee expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the economic recovery strengthens. In particular, the Committee also decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that exceptionally low levels for the federal funds rate are likely to be warranted at least through mid-2015.
It seems that whenever the U.S. economy gets into trouble, Bernanke and his friends at the Fed only have one prescription and it goes something like this….
“Print more money and promise to keep interest rates near zero even longer.”
Of course a lot of Republicans are quite disturbed that QE3 was announced with just a couple of months remaining in a very heated election battle.
Even big news organizations such as CNBC are commenting on this….
Though the Fed is ostensibly politically independent, the decision comes at a ticklish time with the presidential election less than two months away.
And without a doubt the mainstream media will be proclaiming this to be “good news” for the economy in the short-term.
But is QE3 really going to help the average person on the street?
Well, first let’s take a look at employment. We are told that one of the primary reasons for QE3 is jobs.
But did QE1 and QE2 create jobs?
The answer is clearly no.
As you can see from the chart below, the percentage of working age Americans with a job fell dramatically during the last recession and has not bounced back since that time despite all of the quantitative easing that has been done already….
So why try the same thing again when it did not work the first two times?
But what more quantitative easing is likely to do is to pump up stock market values because a lot of the money from QE3 is going to end up being put into stocks and other investments.
This is going to help the wealthy get even wealthier, and it is going to make the “wealth gap” between the rich and the poor even larger in America.
QE3 is also probably going to cause commodity prices to rise just like QE1 and QE2 did.
That means that you will be paying more for gasoline, food and other basic necessities.
So there may not be more jobs, but at least you will get the privilege of paying more for things.
The inflation that QE3 will cause will be particularly cruel for those on fixed incomes such as retirees.
None of the extra money from QE3 is going to go into their pockets, but they will have to pay more to heat their homes and fill up their shopping carts.
And the “exceptionally low interest rate” policy of the Federal Reserve is absolutely devastating for those that have saved for retirement and that are relying on interest income for their living expenses.
In short, quantitative easing is very good for the wealthy and it is very bad for the average man and woman on the street.
But what else would you expect from the Federal Reserve?
It is imperative that we educate the American people about the Federal Reserve and about how they are destroying our economy. For much more on this, please see my previous article entitled “10 Things That Every American Should Know About The Federal Reserve“.
Perhaps the biggest danger from QE3 is that it could greatly hasten the day when the U.S. dollar ceases to be the reserve currency of the world.
The rest of the world is not stupid. They see that the Federal Reserve is now firing up the printing presses whenever they feel like it. They can see the games that we are playing with our currency.
Why should the rest of the world continue to use the U.S. dollar to trade with one another when the United States is constantly debasing it and playing games with its value?
As I wrote about the other day, China and Russia have been calling for a new reserve currency for the world for several years. They have been leading the charge to conduct international trade in currencies other than the U.S. dollar, and I have documented many of the major international agreements to move away from the U.S. dollar that have been made in the last couple of years.
The status of the U.S. dollar in the world has already been steadily slipping, and now Helicopter Ben Bernanke pulls this kind of nonsense.
We are handing the rest of the world an excuse to abandon the U.S. dollar on a silver platter.
And when the rest of the globe rejects the U.S. dollar as a reserve currency, the dollar will crash, the cost of living will increase dramatically, our standard of living will go way down and we will never fully recover from it.
So if you think that things are “bad” now, just wait until that happens.
The U.S. dollar is one of the best things that the U.S. economy still has going for it, and Helicopter Ben Bernanke is doing his best to absolutely destroy that.
What is your opinion of QE3? Please feel free to post a comment with your thoughts below….
The mainstream media in the United States is almost totally ignoring one of the most important trends in global economics. This trend is going to cause the value of the U.S. dollar to fall dramatically and it is going to cause the cost of living in the United States to go way up. Right now, the U.S. dollar is the primary reserve currency of the world. Even though that status has been chipped away at in recent years, U.S. dollars still make up more than 60 percent of all foreign currency reserves in the world. Most international trade (including the buying and selling of oil) is conducted in U.S. dollars, and this gives the United States a tremendous economic advantage. Since so much trade is done in dollars, there is a constant demand for more dollars all over the globe from countries that need them for trading purposes. So the Federal Reserve is able to flood our financial system with dollars without it causing a tremendous amount of inflation because the rest of the world ends up soaking up a lot of those dollars. But now that is changing. China and Russia have been spearheading a movement to shift away from using the U.S. dollar in international trade. At the moment, the shift is happening gradually, but at some point a tipping point will come (for example if Saudi Arabia were to declare that it will no longer take U.S. dollars for oil) and the entire global financial system is going to change. When that tipping point comes the global demand for U.S. dollars is going to absolutely plummet and nightmarish inflation will come to the United States. If such a scenario sounds far out to you, then you have not been paying attention. In fact, China and Russia have been working very hard to move us toward exactly such a scenario.
China and Russia are not the “buddies” of the United States. The truth is that they are both ruthless competitors of the United States and leaders from both nations have been calling for a new global currency for years.
They don’t like that the United States has a built-in advantage of having the reserve currency of the world, and over the past several years both countries have been busy making international agreements that seek to chip away at that advantage.
Just the other day, China and Germany agreed to start conducting an increasing amount of trade with each other in their own currencies.
You would think that a major currency agreement between the 2nd and 4th largest economies on the face of the planet would make headlines all over the United States.
Instead, the silence in the U.S. media was deafening.
At least there were some reports in the international media about this. The following is from a Reuters article about this very important deal….
Germany and China plan to conduct an increasing amount of their trade in euros and yuan, the two nations said in a joint statement after talks between Chancellor Angela Merkel and Chinese Premier Wen Jiabao in Beijing on Thursday.
“Both sides intend to support financial institutions and companies of both countries in the use of the renminbi and euro in bilateral trade and investments,” said the text of the statement.
By itself, this deal would not be that alarming.
However, the truth is that both Russia and China have been making deals like this all over the globe in recent years. I detailed 11 more major agreements like the one that China and Germany just made in this article: “11 International Agreements That Are Nails In The Coffin Of The Petrodollar“.
In that article I listed a few of the things that will likely happen when the petrodollar dies….
-Oil will cost a lot more.
-Everything will cost a lot more.
-There will be a lot less foreign demand for U.S. government debt.
-Interest rates on U.S. government debt will rise.
-Interest rates on just about everything in the U.S. economy will rise.
So enjoy going to “the dollar store” while you can.
It will turn into the “five and ten dollar store” soon enough.
Okay, so if you are China and Russia and you are working hard to undermine the dollar, how do you get prepared for the fiat currency crisis that your hard work will eventually create?
You guessed it. You hoard gold and other precious metals.
And that is exactly what China and Russia has been doing.
A recent MarketWatch article detailed the massive hoarding of gold that Russia has been doing….
I can’t imagine it means anything cheerful that Vladimir Putin, the Russian czar, is stockpiling gold as fast as he can get his hands on it.
According to the World Gold Council, Russia has more than doubled its gold reserves in the past five years. Putin has taken advantage of the financial crisis to build the world’s fifth-biggest gold pile in a handful of years, and is buying about half a billion dollars’ worth every month.
Of course Russia is not alone in hoarding gold. According to Zero Hedge, China has quietly been importing gigantic mountains of gold….
In July, Chinese gold imports from HK, after two months of declines, have picked up once more and hit a 3-month high of 75.8 tons. While it is notable that this number is double the 38.1 tons imported a year prior, and that year-to-date imports are now a record 458.6 tons, well over four times greater than the seven month total in 2011 which was 103.9 tons, what is far more important is that in the first seven months of 2012 alone China has imported nearly as much gold as the total holdings of the hedge fund at the heart of the Eurozone, elsewhere known simply as the European Central Bank, and just as importantly considering the import run-rate has hardly slowed down in August, which data we will have in a few weeks, it is now safe to say that in 2012 alone China has imported more gold than the ECB’s entire official 502.1 tons of holdings.
And all over the world Chinese companies are buying up gold producers. China National Gold Group Corporation has put in a $3.9 billion bid to buy African Barrick Gold PLC, but that is only one example.
A recent Fox Business article listed a bunch of other similar transactions that have taken place recently….
Zijin Mining Group Co. (2899.HK), China’s second-largest gold producer by output, said last week that its subsidiary has acquired more than 50% of Kalgoorlie’s Norton Gold Fields (NGF.AU).
That deal gives it a foothold in the Australian market, the world’s second-largest source of gold output after China itself. In 2011, Zijin bought 60% of Kazakhstan-based miner Altynken, which has access to a gold mine in Kyrgyzstan.
Since 2008, Chinese companies have completed 10 US$20-million-plus acquisitions of Australian gold assets, worth a combined $1.6 billion, according to Dealogic. Half were initiated since last year.
In November, Shandong Gold-Mining Co. (600547.SH) launched a bid to acquire Brazilian gold miner Jaguar Mining Inc. (JAG.T) for $1 billion.
You would have to be blind to not see what is happening.
Other big names have been hoarding gold as well. In a previous articleI detailed how George Soros, John Paulson and central banks all over the planet have been hungrily accumulating gold.
So what does all of this mean for the price of gold?
That’s right – it is likely to keep heading up.
In fact, Citi analyst Tom Fitzpatrick believes that the price of gold will likely hit $2500 within 6 months.
Personally, I believe that there will be times when precious metals both fall and rise in price dramatically. It is going to be a wild ride. But in the long-term I believe that all precious metals will be going up as fiat currencies such as the U.S. dollar fail.
Sadly, most Americans have no idea just how incredibly vulnerable the U.S. dollar really is.
The following is an excerpt from a recent piece by investigative journalist Bob Woodward. It shows just how worried our leaders are about a crash of U.S. Treasuries….
Another possible outcome, Geithner said, was perhaps worse. “Suppose we have an auction and no one shows up?”
The cascading impact would be unknowable. The world could decide to dump U.S. Treasuries. Prices would plummet, interest rates would skyrocket. The one pillar of stability, the United States, the rock in the global economy, could collapse.
What happens someday if the rest of the world decides to reject our currency and our debt?
Right now we are able to trade our dollars for the things that we “need” such as oil from the Middle East and cheap plastic consumer products from China.
But what happens if the Federal Reserve keeps printing and printing and printing and the rest of the world eventually decides that the U.S. dollar is not even worth the paper it is printed on?
The truth is that the amount of printing the Federal Reserve has been doing and the amount of borrowing the federal government has been doing are both completely and totally unsustainable.
At this point, Moody’s is threatening to cut the credit rating of the federal government if a deal is not reached soon to reduce our debt to GDP ratio.
And Moody’s is not the only one concerned about our exploding debt.
German Finance Minister Wolfgang Schaeuble recently stated that he believes that “there is great uncertainty about the course American politics will take in dealing the U.S. government’s debts, which are much too high”.
Just because the economy is relatively stable right now does not mean that it is always going to be that way.
If we keep debasing our currency like this, at some point the rest of the world is going to decide that China and Russia have been right all along and that we need a new global reserve currency.
That day is coming. It might not come tomorrow or next week or next month but it is definitely coming.
Once the U.S. dollar loses reserve currency status, that will be a major turning point in the history of our country. We will never fully recover from that, and we will never get back to the same level of prosperity that we are enjoying today.
So enjoy spending those dollars while you can. The party is almost over.
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US jobs growth slows sharply. QE3 coming next week
The percentage of able-bodied Americans searching for jobs has hit a 30-year-low, and Wall Street now expects the US Federal Reserve to announce a new round of quantitative easing as early as next week.
The US Labor Department released their workforce statistics for August 2012 on Friday, and the figures are far from what economists had expected.
The Labor Department announced this week that while the unemployment rate last month dropped slightly to 8.1 percent, July’s figure was revised to show that fewer jobs, in fact, were added that month. For August, the US economy added 96,000 new jobs, a substantially smaller figure than predicted. The median statistic that Bloomberg found after surveying nearly 100 economists came to 130,000 new jobs.
Additionally, the participation rate — the labor force as a percent of the population as a whole — charted at 63.5 percent, the lowest figure the country has seen since September 1981.
House of Representatives Speaker John Boehner was quick to come down on the Obama White House over the latest news, releasing a statement on Friday that attacks US President Barack Obama and his “failed promises to get our economy moving again.”
“Wages are stagnant, gas prices and health care costs are up, our national debt has surpassed $16 trillion and millions of Americans remain out of work or underemployed,” Speaker Boehner said, only hours after President Obama accepted the Democratic Party’s nomination to run for reelection.
“I’m very concerned about those of us who are unemployed and where are we going to find stable employment,” would-be worker Kimberly Hackler of White, Georgia tells Bloomberg. Hackler says she has been looking for work since November, applying for close to 200 positions in the last year but coming up empty handed after each try.
“I don’t see the economy improving anytime soon. I am concerned it could get worse,” Hackler says.
Some economists expect the same outcome, in fact, and predict that the Federal Reserve may now finally step up to the plate. According to them, now is the perfect time for the US central bank to start third round of quantitative easing, or QE3, to address America’s economic woes.
In a statement made early Friday, Goldman Sachs tells reporters that they expect the Fed to announce plans for QE3 during an already scheduled meeting next week among the Federal Open Market Committee, more than a year ahead of when they had originally anticipated the maneuver.
“With today’s August employment report showing a nonfarm payroll gain of 96,000 and an unemployment rate of 8.1% because of a drop in the participation rate, we expect a return to unsterilized and probably open-ended asset purchases at the September 12-13 FOMC meeting,” the bankers write.
“We now anticipate that the FOMC will announce a return to unsterilized asset purchases (QE3), mainly agency mortgage-backed securities but potentially including Treasury securities, at its September 12-13 FOMC meeting. We previously forecasted QE3 in December or early 2013. We continue to expect a lengthening of the FOMC’s forward guidance for the first hike in the funds rate from “late 2014” to mid-2015 or beyond,” Goldman adds.
Joseph Trevisani, chief market strategist at Worldwide Markets in, New Jersey, says to Reuters, ”This weak employment report, in jobs, wages, hours worked and participation is probably the last piece the Fed needs before launching another round of quantitative easing next week.”
Last month, Federal Reserve Chairman Ben Bernanke told an audience at his annual Jackson Hole address, “The stagnation of the labor market in particular is a grave concern not only because of the enormous suffering and waste of human talent it entails, but also because persistently high levels of unemployment will wreak structural damage on our economy that could last for many years.” The Fed has been thought to be preparing a round of quantitative easing for the last year amid dire employment levels, but the Labor Department’s latest news may have finally pushed them over the edge.
Most people just assume that since things have always been a certain way that they will always be that way in the future. Most people just have blind faith that the people running our government and our financial system know exactly what they are doing and that they are doing their best to take care of us. In fact, once upon a time I was fully convinced of that. When I was a kid I quickly realized that my elementary school teachers really didn’t have the answers, but I had total faith that those running society at the highest levels were “experts” that were looking out for our best interests. As time went on I kept progressing in my education, and by the time I was finished with law school I came to understand that none of our “experts” really know what they are doing, and they are definitely not looking out for our best interests. The blind are leading the blind and we all need to finally admit that the emperor is not wearing any clothes. Unfortunately, most Americans will repeat the mantra of “if that was true I would have heard about it on the news” until it is way too late. Most people are waiting for the “authorities” to tell them what to do instead of thinking for themselves. Sadly, time is rapidly running out and a lot of people are going to end up getting totally blindsided by what is coming.
The man in charge of our financial system, Federal Reserve Chairman Ben Bernanke, is not going to save our economy. He didn’t see the last financial crisis coming, and even after things started falling apart he continued to insist that housing prices would not go down and that we would not have a recession.
Well, it turned out that we had the worst housing crash and the worst recession since the Great Depression of the 1930s.
But still millions of Americans are trusting him to save us this time around.
It isn’t going to happen.
The biggest reason why the U.S. government is 16 trillion dollars in debt is because the system is designed to create gigantic amounts of government debt.
Yes, without a doubt the vast majority of our politicians are corrupt and/or incompetent, but even if we replaced every single one of them our economic problems would still persist until the underlying structural problems were addressed.
Most Americans are pinning their hopes for an economic turnaround on the upcoming election, but the truth is that neither Obama or Romney has a plan that will fix things. That statement is going to upset a lot of people on both sides of the political spectrum, but it is true.
Over the past 40 years the total amount of all debt in the United States has gone from less than 2 trillion dollars to almost 55 trillion dollars. This bubble is going to burst no matter which political party is in power.
Obama and the Democrats have tried to kick the can down the road and extend the party by spending 5.3 trillion borrowed dollars over the past 4 years, but by doing so they have made our long-term problems far worse.
The next wave of the economic crisis is fast approaching and people need to get prepared.
So what do I mean by that?
Well, “preparation” is going to look different for each family, but there are some general principles that apply to almost everyone.
For example, during an economic collapse hard assets are preferable to paper assets.
Also, during an economic collapse necessities become much more important and luxuries become much less important.
For many more tips, please see this article.
For the moment, I want to focus on some of the really bad things that could happen to you if you choose not to prepare for the coming economic collapse….
You Could Find Yourself On The Wrong End Of A Banking Crisis
During a major financial crisis the banking world can change very rapidly.
You could wake up one day and discover that the bank holding all of your money has failed.
You could wake up one day and discover that because Ben Bernanke has printed trillions upon trillions of new dollars to “fix” the financial system your life savings have been devalued by 50 percent.
You could wake up one day and discover that your bank account has been converted over to a new currency that is worth far less than the one you thought you were holding.
Such a scenario may sound unthinkable in the United States (at least for now), but this is the kind of thing that millions of Europeans are extremely worried about right now.
Just check out what is happening in Spain….
After working six years as a senior executive for a multinational payroll-processing company in Barcelona, Spain, Mr. Vildosola is cutting his professional and financial ties with his troubled homeland. He has moved his family to a village near Cambridge, England, where he will take the reins at a small software company, and he has transferred his savings from Spanish banks to British banks.
“The macro situation in Spain is getting worse and worse,” Mr. Vildosola, 38, said last week just hours before boarding a plane to London with his wife and two small children. “There is just too much risk. Spain is going to be next after Greece, and I just don’t want to end up holding devalued pesetas.”
During the month of July alone, 94 billion dollars was pulled out of the Spanish banking system.
So that means that the equivalent of 7 percent of Spain’s GDP was withdrawn from Spanish banks during July.
That is a full-blown bank run, and Spain’s problems are just getting started.
Eventually these kinds of problems will show up in the United States as well.
You Could End Up Losing All Of Your Investments
But at least U.S. bank accounts are federally insured (for whatever that is worth).
When it comes to investments, you better be very sure that the firms you have your money with are not going to collapse on you.
For example, many of you have already heard about how Gerald Celente had losses in the six figure range when MF Global went bankrupt. He has been warning about the coming economic collapse for years and he still got victimized. The following is what he told one interviewer about what he learned from this incident….
“What’s the take away from this? It’s to make sure you have every penny in your pocket. Because just like MF (Global), screwed everybody else. Your also gonna get the shaft, I don’t care who it is. What’s gonna happen when you get a message from your brokerage, from Fidelity or somebody… yeah infidelity. Or how about Raymond James, I don’t care who they are! You have ETFs? Oh, there’s a little error over here, we don’t have your money. We don’t have your positions.““I went to a meeting… and the speaker said ETFs of GLD are supposed to be held by HSBC in a vault in Hong Kong or England some place, and HSBC, this guy said, is the biggest shorter of gold. Well you figure it out! They are the ones that are holding it and they’re shorting it? So the takeaway is to make sure you have every penny in your possession.“
If the funds that you are relying on for your financial future are being held by a brokerage or by an insurance company the truth is that you could potentially lose every single penny during the coming collapse.
The financial institution that you are depending on could suddenly go “poof” and your money could be gone just like that.
Recent legal rulings have made brokerage accounts much more vulnerable. Jim Willie explained why this is true in a recent article….
The critical jump might occur in account thefts from futures brokerage to stock brokerage, which began in November 2011 with MFGlobal, then appeared in July with Peregrine Financial Group (PFG-Best). All private accounts from MFG and PFG have been pilfered, with a blessing of the theft by the courts, seen in the Sentinel Mgmt Group ruling. The federal Appellate court’s August ruling (CLICKHERE) sets precedent for future private segregated account thefts, which were once considered sacred and untouchable. No more in the United States, not in the unfolding of criminality that stretches from USGovt offices to top corporate offices, with blessings sprinkled by the courts. The jump would be a major extension of the Fascist Business Model that nobody talks about. The major financial firms can rely upon this appellate court ruling as precedent, so as to protect their legal right to re-hypothecate client funds in their high risk leveraged positions and loans. It sure would be nice to use my neighbor’s house and car to firm up my casino weekends. Stay tuned to the ongoing Morgan Stanley implosion, which could force the vanishing act of 50 to 100 thousand private stock accounts. The firm is the largest stock brokerage firm in the land. The dreadful impact will be nasty and might awaken the US masses. MFGlobal and PFG-Best surely did not.
Your financial advisers will swear up and down that your investments are safe.
But look at what happened to the clients of MF Global and PFG-Best.
Their investments disappeared like dust in the wind.
This isn’t meant to scare you. It is just important that you understand that the landscape has totally changed.
You Could Lose Your House
During the last recession, millions of Americans lost their homes.
Some of them had poured hundreds of thousands of dollars into their homes and they lost it all.
Why did this happen?
Well, the number one reason is because so many American families are living on the edge. They purchased homes that they could not afford and they just kept living paycheck to paycheck as if nothing bad would ever happen.
But when many of those people lost their jobs, suddenly they could not make their mortgage payments and they lost their homes as well.
Sadly, we appear not to have learned much.
Today, 77 percent of all Americans are living paycheck to paycheck at least some of the time.
You Could Lose Access To Electricity
Why don’t more Americans have a backup source of power?
Most Americans are totally dependent on the grid, and that works well until the grid goes down.
Just look at what is happening down in Louisiana. The hurricane that just roared through was not even that strong, and yet more than 100,000 people are still without power.
The following is from a recent Huffington Post article….
Tens of thousands of customers remained in the dark Monday in Louisiana and Mississippi, nearly a week after Isaac inundated the Gulf Coast with a deluge that still has some low-lying areas under water.
Most of those were in Louisiana, where utilities reported more than 100,000 people without power. Thousands also were without power in Mississippi and Arkansas.
So what would you do if there was a major national crisis of some sort and the grid went down for an extended period of time during the winter?
When Thieves Get Desperate They Will Steal Just About Anything
Over and over it has been proven that when people cannot feed their families they will steal to get what they need.
When things hit the fan here in the United States, we will see widespread looting and robbing. In fact, we are already seeing it happen in Europe. Just check out what is happening in Spain right now….
Unemployed fieldworkers and other members of the union went to two supermarkets, one in Ecija (Sevilla) and one in Arcos de la Frontera (Cadiz) and loaded up trolleys with basic necessities. They said that the people were being expropriated and they planned to “expropriate the expropriators”.
The foodstuffs, including milk, sugar, chickpeas, pasta and rice, have been given to charities to distribute, who say they are unable to cope with all the requests for help they receive. Unemployment in the Sierra de Cadiz is now 40%.
And already crime is rising in many areas of the United States. In some communities thieves are stealing just about anything that is not bolted down.
Just recently, 49 cows that were stolen from a farm in Massachusetts were discovered at an auction in Pennsylvania.
Who would be desperate enough to steal cows?
In other areas of the country thieves are stealing air conditioning units from churches and they are stripping copper wiring out of city street lights.
Are you prepared to defend your property when desperate thieves come knocking?
Shortages Can Happen
During an economic collapse shortages can happen very rapidly. Thanks to the popularity of the “just in time inventory” philosophy, most stores do not have much stuff sitting around in their back rooms. When things go bad, you may not be able to get the things that you need.
Just look at what is happening in Greece. Right now, medicine shortages have become a major problem. The following is from a recentBloomberg article….
Mina Mavrou, who runs a pharmacy in a middle-class Athens suburb, spends hours each day pleading with drugmakers, wholesalers and colleagues to hunt down medicines for clients. Life-saving drugs such as Sanofi (SAN)’s blood-thinner Clexane and GlaxoSmithKline Plc (GSK)’s asthma inhaler Flixotide often appear as lines of crimson data on pharmacists’ computer screens, meaning the products aren’t in stock or that pharmacists can’t order as many units as they need.
“When we see red, we want to cry,” Mavrou said. “The situation is worsening day by day.”
The 12,000 pharmacies that dot almost every street corner in Greek cities are the damaged capillaries of a complex system for getting treatment to patients. The Panhellenic Association of Pharmacists reports shortages of almost half the country’s 500 most-used medicines. Even when drugs are available, pharmacists often must foot the bill up front, or patients simply do without.
You Could End Up Dependent On The Government
Don’t think that it can’t happen.
Today, 46.7 million Americans are on food stamps and more than halfof all Americans are at least partially financially dependent on the U.S. government.
That may be hard to believe, but it is actually true.
During the month of June, the number of Americans added to the food stamp rolls was three times greater than the number of jobs added to the economy.
What a great “recovery”, eh?
If you do not work very hard to prepare for what is ahead right now, you could also end up dependent on the government.
You Could Lose Your Life
Whenever there is a major economic crisis there is a spike in suicides.
And these days Americans are more wrapped up in materialism than ever before. When the coming crisis strikes there are going to be millions upon millions of extremely depressed people.
Suicide is about the most stupid thing that you can possibly do, but when people lose all hope of things turning around a lot of them are going to take their own lives.
It is foolish beyond belief, but a lot of people are going to make that choice. We are already seeing a significant spike in suicides over in Europe due to the economy. The following is from a recent CNBC article….
A growing number of global and European health bodies are warning that the introduction and intensification of austerity measures has led to a sharp rise in mental health problems with suicide rates, alcohol abuse and requests for anti-depressants increasing as people struggle with the psychological cost of living through a European-wide recession.
“No one should be surprised that factors such as unemployment, debt and relationship breakdowns can cause bouts of mental illness and may push people who are already vulnerable to take their own lives,” Richard Colwill, of the British mental health charity Sane, told CNBC.
“There does appear to be a connection between unemployment rates and suicide for example,” he said, referring to a recent study in the British Medical Journal that stated that more than 1,000 people in the U.K. may have killed themselves because of the impacts of the recession. “This research reflects other work showing similar rises in suicides across Europe.”
This is why I stress that preparation is not just about physical things like money and food.
We all need to get mentally, emotionally and spiritually prepared for what is ahead.
If we understand what is happening and we come up with a plan to go through it, we will be in far, far better position to endure the coming crisis than people that are totally blindsided by it.
For the moment, most people will just go on with their lives as if nothing is wrong because times are still quite good.
But time is running out. In fact, we might not have much time left at all before the next major downturn.
A recent CNBC article entitled “It’s Coming: One Pro Sees Big Stock Selloff in 10 Days” detailed how some analysts are warning of a major stock market decline later this month….
An equity strategist for Goldman Sachs is predicting a September selloff that happens so rapidly he is telling clients to protect themselves before Sept. 14.
The reason: Market disappointment over key meetings of the European Central Bank and Federal Reserve—all within the next 10 days.
September may turn out to be a bad month for stocks or it might end up being just fine.
But one thing is for sure.
Time is running out.
Are you ready?
Summer vacation is over and things are about to get very interesting in Europe. Most Americans don’t realize this, but much of Europe shuts down for the entire month of August. I wish we had something similar in the United States. But now millions of Europeans are returning from their extended family vacations and the fun is about to begin. During August economic conditions continued to degenerate in Europe, but I figured that it wouldn’t be until after August that the European debt crisis would take center stage once again. And as I wrote about last week, if there is going to be a financial panic, it typically happens in the fall. The stock market has seen quite a nice rally over the summer, and many investors are nervous that we could see a significant “correction” very soon. The month of September has been the absolute worst month for stock performanceover the past 50 years, and it has also been the absolute worst month for stock performance over the past 100 years as well. Of course that does not guarantee that anything is going to happen this year. But things in Europe continue to get worse. Unemployment rates are spiking, manufacturing activity is slowing down, housing prices are crashing and major financial institutions are failing. What is happening in Europe right now appears to be an even worse version of what happened to the United States back in 2008.
But most Americans aren’t too concerned about what is happening in Europe.
In fact, most Americans don’t believe that a European financial collapse would be much of a problem for us.
Well, just remember what happened back in 2008. When the U.S. financial system started coming apart at the seams it sparked a devastating worldwide recession which was felt in every corner of the globe.
If the European financial system implodes, the consequences could be even worse.
Europe has a larger population than the United States does.
Europe has a larger economy than the United States does.
Europe has a much, much larger banking system than the United States does.
If Europe experiences a financial collapse, the entire globe will feel the pain.
And considering how weak the U.S. economy already is, it would not take much to push us over the edge.
What is going on in Europe right now is a very, very big deal and people need to pay attention.
The following are 18 indications that Europe has become an economic black hole which is going to suck the life out of the global economy….
British people with homes in France were today warned that the property market is in ‘free fall’.
A combination of factors including the election of a tax-and-spend Socialist government means that prices are tumbling.
It means an end to the boom years, when thousands of Britons poured money into rental or retirement investments across the Channel.
#5 A slow-motion bank run is happening in Spain. The amount of money being pulled out of the Spanish banking system is absolutely unprecedented. The following is from a recent Zero Hedge article….
The central bank of Spain just released the net capital outflow numbers and they are disastrous. During the month of June alone $70.90 billion left the Spanish banks and in July it was worse at $92.88 billion which is 4.7% of total bank deposits in Spain. For the first seven months of the year the outflow adds up to $368.80 billion or 17.7% of the total bank deposits of Spain and the trajectory of the outflow is increasing dramatically. Reality is reality and Spain is experiencing a full-fledged run on its banks whether anyone in Europe wants to admit it or not.
If this pace keeps up, more than 600 billion dollars will be pulled out of Spanish banks by the end of the year.
Keep in mind that the GDP of Spain for all of 2011 was just 1.49 trillion dollars.
So by the end of this year we could see the equivalent of more than 40 percent of Spanish GDP pulled out of Spanish banks and sent out of the country.
In case you were wondering, yes, that is a nightmare scenario.
#7 The yield on 10 year Spanish bonds is up to 6.85 percent. This is an unsustainable level, and if rates don’t come down on Spanish debt soon it is inevitable that Spain will end up just like Greece.
#8 On Monday it was announced that Spanish banking giant Bankia will be getting an emergency “cash injection” of between 4 and 5 billion euros. Apparently “cash injection” sounds better to the politicians than “a bailout” does.
#9 The housing crash in Spain just continues to get worse. It is being reported that some homes in Spain are being sold at a 70% discountfrom where they were at the peak of the market back in 2006. At this point there are approximately 2 million unsold homes in Spain.
#10 There are persistent rumors that the government of Spain will soon be forced to officially ask for a bailout from the rest of Europe. But who is going to bail them out? Most of the other governments of the eurozone are on the verge of bankruptcy themselves.
#11 Manufacturing activity in Europe has contracted for 13 months in a row. The following is from a recent Reuters report….
The downturn that began in the smaller periphery members of the 17-nation bloc is now sweeping through Germany and France and the situation remained dire in the region’s third and fourth biggest economies of Italy and Spain.
“Larger nations like France and Germany remain in reverse gear… the (manufacturing) sector is on course to act as a drag on gross domestic product in the third quarter,” said Rob Dobson, senior economist at data collator Markit.
Markit’s final Purchasing Managers’ Index (PMI) for the manufacturing sector fell from an earlier flash reading of 45.3 to 45.1, above July’s three-year low of 44.0, but notching its 13th month below the 50 mark separating growth from contraction.
#12 Chinese exports to the EU declined by 16.2 percent in July. U.S. exports to Europe have been steadily falling as well.
#13 Slovenia and Cyprus are two other eurozone members that are in desperate need of bailout money. The dominoes just keep falling and nobody seems to be able to come up with a plan to “fix” Europe.
#14 Even the “strong” economies in Europe are being dragged down now. For example, unemployment in Germany has risen for five months in a row.
#15 According to one recent poll, only about one-fourth of all Germans want Greece to remain a part of the eurozone. The odds of a breakup of the euro seem to rise with each passing day.
#16 It is now estimated that bad loans make up approximately 20 percent of all domestic loans in the Greek banking system at this point.
#17 The suicide rate in Greece is more than 30 percent higher than it was last year. People are becoming very desperate in Greece and there is no end in sight to the economic depression that they are going through.
#18 Large U.S. companies have been rapidly getting prepared for a Greek exit from the eurozone. The following is from a recent New York Times article….
Even as Greece desperately tries to avoid defaulting on its debt, American companies are preparing for what was once unthinkable: that Greece could soon be forced to leave the euro zone.
Bank of America Merrill Lynch has looked into filling trucks with cash and sending them over the Greek border so clients can continue to pay local employees and suppliers in the event money is unavailable. Ford has configured its computer systems so they will be able to immediately handle a new Greek currency.
Every time European leaders get together they declare that they have “a plan” that will solve the problems that Europe is experiencing, but as we have seen things in Europe just continue to get worse with no end in sight.
A key date is coming up in the middle of this month. On September 12th, Germany’s Constitutional Court will determine the fate of the recent fiscal pact and the ESM. According to UniCredit global chief economist Erik Nielsen, if the court rules against the fiscal pact and the ESM the fallout will be catastrophic….
“If they were to surprise us by striking down Germany’s participation, I would think it’d be an utter bloodbath in markets”
But that is not the only thing that could set off a full-blown panic in the financial markets.
The truth is that Europe is teetering on the edge.
One wrong move and it is going to be 1929 all over again.
As I have maintained all along, the next wave of the economic collapse is rapidly approaching, and this time the epicenter for the crisis is going to be in Europe.
But that does not mean that things are going to be easier for the United States than last time. We have never even come close to recovering from the last recession. Most Americans families are just barely getting by. In fact, 77 percent of them are living paycheck to paycheck at least part of the time.
Right now there are millions of Americans that have lost their jobs and their homes in recent years and that feel forsaken by society.
After this next wave hits us there will be tens of millions of Americans feeling the pain of economic desperation.
The last wave of the economic collapse hurt us.
This next wave is going to absolutely devastate us.
Watch what is happening in Europe very carefully. What Greece, Spain, Italy and France are experiencing right now is going to hit us soon enough.