The Economy: "Extending the Timeline"

"The psychological affect of what has happened on Wall Street, in banking and in government has been shattering to any thinking person. Our entire economic and financial systems have been deliberately destabilized. No collapse has occurred, but collapse is in motion. The financial and economic collapse is ongoing as witnessed by raging unemployment and massive bailouts. Confidence and trust in banking and on Wall Street is gone and won’t return for sometime to come. Securities, bonds and credit instruments having been discredited no longer supply the mechanism for credit expansion. The dollar and other currencies have barely been able to sustain credibility during this last year, as witnessed by the flight to silver and gold related assets, and particularly by physical possession.

The Fed errors of 2002 and 2003, which were responsible for the housing bubble, are again taking place. As you know these events are being used as a method of extending the system until it is time to implement world government. This is why inflation is being tolerated even though its damage is attempted to be hidden by lies and bogus statistics. As we reflect the elitists should have turned back and accepted recession several times since 1987. They should have allowed the system to be purged, but that was not to be. Their ambition for world government was too strong, too great.

The ridiculously low interest rates and tremendous injections of money and credit guarantee hyperinflation. Again, these are not policy-making mistakes, this has been done deliberately. This today is a rerun of 2003 only this time the result will be terminal. The Government Finance Bubble is going to make the housing Bubble look like small potatoes. Has anyone really considered what all these government guarantees mean? They mean huge amounts of money printing by the treasury and the Fed and a huge additional burden for taxpayers. There probably won’t be bank runs as in the 1930s. You will wake up one morning and find you are going to receive one new dollar for 10 old dollars and that new dollar will be for all nations, as they all devalue and default. The key here is business and individuals stop borrowing and finally deflation takes control.

The powers that be are not trying to save the economy. They are extending the timeline, so that total collapse will come when they want it to come. Do not underestimate what is going on. This could well he the worst financial and economic collapse of all time. This is the creation of synchronized stimulus, deficits and reflationary policy making. What really disturbs us is that so few economists and analysts see what we see. They may, of course, be reluctant to say what they feel for fear of losing their jobs. We do see a few speaking out, but not many. It has to be that, because these are professionals and they are not dumb. Be as it may their silence is defining as our economy is being destroyed and along with it the world economy. They must at least be able to see the stage is being set for a devastating bust.

Massive government spending and reflation is not going to work, history tells us that. One thing that we know for sure is that it could take more than 20 years to recover from this crash. Another will follow the first new stimulus of $780 billion in a year of $2 trillion, and on and on. We are in a new cycle dominated by the printing press. Through all this remember “he who has the gold makes the rules.” $30 trillion has been lost in world markets over the last 19 months and more than $1 trillion has been lost by banks. Bank losses could be as much as $3 trillion. Global trade has plunged 45%. The elitists are finding inter-connectivity works both ways. Banks have suspended letters of credit, which are used in 90% of trade. There can be no global growth when bankers refuse to or cannot lend. Global growth has ended and as we stated months ago it will be minus 3% to 5% in 2009.

One of the things that should be kept in mind is that the current economic and financial problems are five times worse than in the 1930s. In the 30s, stocks declined 89%. That would be in today’s terms a Dow of 1,260. During that fall in prices there were six rallies that rose more than 20%, which sucked in the unwary. That is why you have to recognize the trend. The economy and the financial conditions continue to weaken due to massive debt and the decreasing value of assets. The Hoover administration had the equivalent of today’s TARP, the Troubled Asset Relief Program in the Reconstruction Finance Corp. Just like today the RFC’s stimulus program and tax cuts created more spending, and the budget deficit increased some 45%. Worldwide other countries were doing the same thing just as they are today. The trick is to rekindle lending. They couldn’t do that in the 30s and they won’t be successful in doing so today. What our masters of the universe are trying to do is cause devaluation via inflation and it won’t work, because other countries are doing the same. In time they will all agree to devalue simultaneously.”

- http://www.theinternationalforecaster.com/International_Forecaster_Weekly/Economic
_And_Financial_Systems_Deliberately_Destabilized