In These New Times

A new paradigm for a post-imperial world

Thar She Blows: The Last Hurrah for the Banking System

Posted by smeddum on July 29, 2008

ICH

By Mike Whitney

28/07/08 “ICH” — The Bush administration will be mailing out another batch of “stimulus” checks in the very near future. There’s no way around it. The Fed is in a pickle and can’t lower interest rates for fear that food and energy prices will shoot to stratosphere. At the same time, the economy is shrinking faster than anyone thought possible with no sign of a rebound. That leaves stimulus checks as the only way to “prime the pump” and keep consumer spending chugging along. Otherwise business activity will slow to a crawl and the economy will tank. There’s no other choice.
The daily barrage of bad news is really starting to get on people’s nerves. Most of the TV chatterboxes have already cut-out the cheery stock market predictions and no one is praising the “impressive powers of the free market” anymore. They know things are bad, real bad. A pervasive sense of gloom has crept into the television studios just like it has into the stock exchanges and the luxury penthouses on Manhattan’s West End. That same sense of foreboding is creeping like a noxious cloud to every town and city across the country. Everyone is cutting back on non-essentials and trimming the fat from the family budget. The days of extravagant impulse-spending at the mall are over. So are the “big ticket” purchases and the “go-for-broke” trips to Europe. Consumer confidence is at historic lows, disposal income is a thing of the past, and all the credit cards are at their limit. The country is drowning in red ink.

Something has gone terribly wrong with the economy, but no one knows what it is? In the last three months bank credit has shrunk faster than any time since 1948. The banks aren’t lending and people aren’t borrowing; that’s a lethal combo. When credit-creation slows, the economy falters, unemployment rises and the misery index soars. That’s why Bush will have to mail out more stimulus checks whether he wants to or not; his back is against the wall. He’ll try to make it look like the economy is still breathing on its own and just needs a spell on the respirator before resuming its normal activities. But Bush is wrong; we’ve reached Peak credit and the blood-transfusions won’t work anymore. The vital signs have shut down and rigamortis is already setting in. Our goose is cooked.

MORE BANK RUNS

On Friday, after the market had closed, the FDIC shut down two more banks, First Heritage Bank and First National Bank. Two weeks earlier, regulators seized Indymac Bancorp following a run by depositors. The FDIC now operates like a stealth paramilitary unit, deploying its shock troops on the weekends to do their dirty work out of the public eye and at times when it will least effect the stock market. The reasons for this are obvious; there’s only one thing the government hates more than seeing flag-draped coffins on the evening news, and that’s seeing long lines of frantic soccer moms and blue-collar working guys waiting impatiently to get what’s left of their savings out of their now-deceased bank. After all, flag-draped coffins merely indicate that we’re losing a war, but lines at the bank prove that the system is broken. And the system is broken, that’s why people are depressed and confidence is waning.

Banks-runs are a shock to the collective psyche; they demonstrate that the stewards of the system are imcompetent and have made a mess of things. When depositors see a bank run they realize that their hard-earned money is not safe. That’s why they get edgy and cut back on their spending. When their confidence wanes, it extends to the whole system. Suddenly they start questioning everything they once took for granted. They become skeptical of the institutions which, just days earlier, seemed rock-solid. That’s why bankers surround themselves with marble columns, vaulted ceilings and lofty-sounding titles; to maintain the illusion of security while masking the truth, that fractional banking is the biggest scam in history. It relies on the “greater fools” theory which assumes that bankers can be trusted to only create credit when it is backed by sufficient capital. But it is not true. The banks have put us all at risk.

Bank runs are a direct hit on the foundation of the free market system. Unchecked, the tremors can ripple through the entire society and trigger violent political upheaval, even revolution. The public may not grasp their significance, but everyone in Washington is paying attention. They take it seriously, very seriously. It is a sign that the system is disintegrating and it may be irreversible.

SABER-RATTLING AT THE FDIC

An article in the San Francisco Business Times said that the FDIC is worried about the reporting on Internet blogs. They’d rather keep banking system’s troubles out of the news. The publicity just further undermines the publics confidence and spreads fear. Sheila Bair, chairman of the Federal Deposit Insurance Corp., summed it up like this after the run on Indymac:

“The blogs were a bit out of control. We’re very mindful of the media coverage and blogs in controlling misinformation. All I can say is were going to continue to stay on top of it. The misinformation that came out over the weekend fed a lot of depositors’ fears.”

Is that a threat? The cure for a failed banking system is adequate capital and prudent oversight not threats to critics of the system. That’s balderdash. Commissar Blair apparently believes that bloggers should be treated the same way as journalists in Iraq, who, if they veer ever so slightly from the Pentagon’s “the surge is a great triumph” script, find themselves on the smoky end of an M-16 at some unmarked checkpoint outside Baquba.

If Blair wants people to take her seriously, she should stop the paramilitary-type mothballing operations to shut down banks and tell the American people the truth about what is going on. The banking system is busted; Blair knows that as well as anyone. Now its time for someone to accept the mantle of leadership, step up to the microphone and tell the public what they really need to know:

“My fellow citizens, we are embroiled in the greatest financial crisis our nation has ever faced and we will have to take emergency action to keep the entire system from melting down.”

How hard is that? But it won’t happen, because everyone in the administration has an aversion to telling the truth; it’s like the Devil and Holy Water. Besides, its easier to blame the bloggers, that harmless subspecies that spend long hours pecking away at their keyboards in their windowless 5′ by 7′ hovels.

Bloggers aren’t the problem; the problem is a system that’s collapsing from decades of abusive credit expansion creation and insufficient capital. Now everyone is going to pay for the excesses of the few.

As the bank-runs increase, the FDIC will be forced to admit the truth, that they don’t have the resources to deal with a problem this big. Currently, the FDIC has only $53 billion in reserves to guarantee $4 trillion in total bank deposits. The entire system has a mere $267 billion cash in the vaults. What a shabby way to run a banking system. Where’s the money going to come from when depositors start withdrawing their savings? How will the FDIC deal with the ongoing deleveraging in the market which is forcing more and more investors move into cash?

No one knows. All we get is more prevaricating; more smoke and mirrors, Bush assures us that “Our capital markets are functioning efficiently and effectively.” Nonsense. The markets are cratering and the banks are toast. A blind man can see it. The FDIC is listing and Blair knows it. Bush needs to cut the gibberish and tell the American people the truth so they can prepare for the hard times ahead.

P.T. PAULSON: “The the banking system is sound… This is a very manageable situation.”

Last Sunday, sought Treasury Secretary Henry Paulson tried to reassure the public that the banking system is sound, while bracing people for more trouble ahead:

“I think it’s going to be months that we’re working our way through this period — clearly months. But again, it’s a safe banking system, a sound banking system. Our regulators are on top of it. This is a very manageable situation.”

Paulson is like a broken record. Everything is always hunky-dory. He is the consummate Wall Street investment sharpie; a bright guy who could charm a hungry dog off a meat-wagon. But when it comes to telling the truth; forget about it. You’d be better off listening to Bush, which isn’t saying much. The banking system is not sound nor is it well capitalized. It is a corpse that’s been propped up in the office hallway next to the water-cooler so that everyone who passes bye gets a stifling whiff of the decaying flesh. Still, the charade goes on. Still the lies persist.

If the rate of bank closures continues at the present pace, by the middle of 2009 their will be restrictions on withdrawals. Even now, if you go to your bank and try to withdraw $9,000 or $10,000, it sends waves of panic through the entire building like a 5-alarm fire that quickly engulfs the main exits. It’s crazy. Tellers go scampering around helter-skelter, and bank managers suddenly appear at the window grimacing in pain and wringing the sweat from their brows.

“Did you say $10,000, sir?” which is usually followed by low moaning sounds and heavy wheezing.

Journalist Bill Sardi summed it up nicely in an article last week on lewrockwell.com titled “Could Your Bail Fail?”:

“The banking industry is walking on pins and needles, hoping the bad news doesn’t become a self-fulfilling prophecy that drives bank depositors to demand withdrawal of funds en masse…….. There is a high likelihood the American banking system will fail, and you will likely be the last to know. The more panicked you get, and withdraw funds, the worse the implosion. In an effort to avert runs on the banks, will the news media delay informing the public of the current dire situation, which appears to be an inevitable system-wide banking collapse?

What to do?

So, while your bank still has money and can process your checks, it may be time to pay down debts, pay quarterly taxes and mortgage payments in advance, and think of having money outside of banks (gold, foreign currencies), etc., before your money is inaccessible or even evaporates! Don’t think all your investments outside of banks are immune from all this turmoil. For example, money market mutual funds, where Americans have invested $3 trillion, are not covered by FDIC insurance (however, money market accounts offered by banks are covered). Recent losses in some of these money market mutual funds have caused some companies to rush to plug the losses. For example, Legg Mason Inc. and SunTrust Banks Inc., recently pumped $1.4 billion each into its money market funds. Bank of America Corp. has injected $600 million.

As for your checking and savings accounts, recognize you may have five different accounts in the same bank, but the FDIC only insures individuals, not each account, up to $100,000. Putting your money in different accounts in the same bank does not necessarily provide better insurance for your deposits. (Bill Sardi, “Could Your Bail Fail?”, lewrockwell.com)

Good advice, but if the whole system blows; we’re all in trouble. It’s probably wise to have a back-up plan; like plenty of ammo and a couple hundred pounds of seed potatoes. It could get hairy.

FANNIE BAILOUT: “If they dumped these securities on the market today, their value would go straight to 0.”

Most people are unaware of the fact that the new Fannie Mae and Freddie Mac bailout package that was passed into law on Saturday, provides Paulson with $300 billion of taxpayer dollars to shore up the faltering mortgage behemoths. In order to accomplish this, the congress increased the national debt by a whopping $800 billion sending it over the $10 trillion mark for the first time in history. Naturally the congress buried this little tidbit of information deep in the 600 pages of legislation. It’s clear that the administration is lying about Fannie and Freddie. They’ll need much more than the $25 billion infusion that Paulson is predicting. That’s why the national debt is ballooning. This is the biggest boondoggle of all time and it’s spearheaded by the “dueling windbags”, Chris Dodd and Barney Frank; both Democrats. Dodd’s lengthly oratory on the floor of the House on Friday nearly earned him a citation from the EPA for releasing massive levels of toxic gas into the jet-stream and accelerating the rate of global warming.

So it’s not just the Fed and the Treasury that are ruining the system; the politicos are busy bankrupting the country, too. In fact, the Fannie bailout could quite possibly be the last straw.

It now looks like Obama has been anointed by Wall Street (who are his biggest contributors) to revive the Resolution Trust Corporation (RTC)–a morgue for dead banks—so that the investment giants can off-load hundreds of billions in bad paper in one fell swoop and purge the system. That will be the big “post election” surprise; another bone for investment giants.

The path ahead has never looked so uncertain. Still, niether Paulson nor Bernanke seem at all upset by the riskiness of their strategy or by the fact that the nation’s economic future has been reduced to a crap-shoot. The Fed has already spent more than $300 billion to prop up the teetering banking system in the last year alone, plus another $29 (that was never approved by congress) to buy the toxic bonds from Bear Stearns in the JP Morgan acquisition. Now, the Treasury has been authorized by congress to buy an “unlimited amount” of Fannie and Freddie shares at their own discretion. They are presently exchanging Fannie and Freddie securities for US Treasurys, which means that the dollar is now backed by dodgy mortgage-backed sludge for which there is no market. According to Rep Ron Paul, “This is the asset (MBS) which now backs up our currency. An asset that no one else wants. If they were to dump these securities on the market today, the value of these stocks would go straight to 0. But that is literally the asset that is behind our currency. It is a very serious situation.”

None of congress’s back-room maneuvering has anything to do with “providing a lifeline for the struggling homeowner”, as Senator Dodd claims. That’s all bunkum. The homeowner won’t get a lick of help from this bill. Its just another handout for the brokerage fraternity. The country is putting its AAA credit rating on the line for same clatter of carpetbaggers who created the mammoth equity bubble in the first place. Now they are being rewarded for their criminal conduct. Also, Bloomberg News notes that, “Sensible people are starting to question whether the U.S. can hang on to its AAA credit rating. The prospect of an extra $5 trillion or thereabouts leaking onto the U.S. government’s tab from Fannie Mae and Freddie Mac has spooked investors.”

America’s AAA rating will vanish in a year. It should be zero anyway. No one really believes the US will repay its debts. The US bond market is just a glitzy imitation of casino roulette only the odds are considerably worse.

Our political leaders have engineered this whole farce and are now speeding up the process by savaging the dollar. How long before foreign creditors see through this ruse and dump their dollar-backed assets on the open market? The hoax can’t go on forever.

Of course, some market analysts think the banking system will make it through this rough patch, even though it is likely to take a real pasting. Economics guru, Gary North, for example, expects a slightly different outcome which he details in his latest article on Lew Rockwell’s web site “Ben Bernanke’s Hush Money”:

“There is an enormous difference – a literally life-and-death difference – between individual bank failures and a systemic banking failure. I do NOT believe we are facing a systemic banking failure. But we are facing more individual bank failures…

Beginning in December 2007, the Federal Reserve System has sold Treasury debt whenever it has increased its purchase of questionable assets that it has bought from banks and large financial institutions. It has unloaded about 40% of its holdings of liquid Treasury debt. This has kept it from inflating the money supply at a dramatic rate. At some point, it will run out of Treasury debt to sell to the general public in order to offset the increase of its purchase of questionable assets held by the financial system. At that point, the great inflation will begin. This could be a year away. This could be a month away. All we know is this: when the Federal Reserve system runs out of Treasury debt to sell, its purchase of all assets will be inflationary. The banking system as a whole is protected. What is not protected is the purchasing power of the dollar.” (“Ben Bernanke’s Hush Money”, Gary North, lewrockwell.com)

North makes a good point; when the Fed runs out of US Treasuries, they’ll have to rev-up the printing presses and monetize the debt. That’ll be doomsday for the dollar. When foreign central banks see the greenbacks a-gushing like the blood from a harpooned whale; they’ll have to sell off their dollar stockpiles and take the loss. That will trigger a period of hyper-inflation in the US. Everyone will pay for the excesses of the few.

The whole system has been rejiggered to serve the needs of a few greedy bankers on top of the food chain. They could care less whether the whole country blows up or not as long as they get their slice of the pie. That’s all that matters. Congress is just as bad. They abdicated their most important responsibility by giving Paulson the authority to take whatever money he needs to do whatever he wants. If that’s their attitude, then what do we need congress for? Let’s just board up the House of Representatives and send them all home. It would be a lot cheaper.

The truth is, the big money guys have taken a wrecking-ball to the financial system and have now moved on to the real economy. By the time their done, we’ll all be picking through the wreckage just to feed our families.

2 Responses to “Thar She Blows: The Last Hurrah for the Banking System”

  1. KB said

    Excellent article….but you wonder what else the banking interests have up their sleeve. See here:

    Paper Sold To Pools of Liquidity
    The International Forecaster – July 28, 2008

    Lindsey Williams, who has been an ordained Baptist minister for 28 years, went to Alaska in 1971 as a missionary. The Transalaska oil pipeline began its construction phase in 1974, and because of his concern for the spiritual welfare of the “pipeliners,” Mr. Williams volunteered to serve as Chaplain on the pipeline, with the subsequent full support of the Alyeska Pipeline Company. Because of the executive status accorded to him as Chaplain, he was given access to the information that is documented in his book, “The Energy Non-Crisis,” which shows that peak oil is a scam because our domestic reserves in the North Slope of Alaska alone are at least as large as those in Saudi Arabia and are potentially large enough to power the US with domestic oil for two centuries. Recently this year, due to the sensitive nature of his book, Mr. Willians’ life was threatened and he was forced to shut down his web-site and stop selling his books and CDs. At the urging of Dr. Stanley Monteith of Radio Liberty, he called back the same oil executive who had warned him about the danger he would be in if he continued to disseminate certain information to ask if in fact there was any information that he could in fact convey to the public without upsetting the powers that be. The oil executive, who Mr. Williams had known for years, gave Mr. Williams some startling revelations which he could safely reveal to the general public. As you know, the Illuminati are arrogant enough to reveal some of their plans because they believe there is nothing we can do about it.

    Basically, Mr. Williams was told that over the next twelve months, from mid-2008 to mid-2009, (1) news of super giant oil fields, ready to produce, would be announced for two locations, in the Northern Slopes of Russia and in Indonesia, which oil fields would together contain more oil reserves than the entire Middle East; (2) that this news would drive oil prices down to $50/barrel; (3) that OPEC countries, especially in the Middle East, would be bankrupted by this price decrease; (4) that this would cause the financing of our foreign trade and current account deficits through purchases of treasury paper by foreign nations with their surplus oil profits to collapse, leading to the collapse of the dollar; (5) that the collapse of the dollar would cause unprecedented financial strife and turmoil in the US, and that it would take many years for the US to recover from this financial debacle; (6) that they (big oil) support John McCain for President; and (7) that US domestic oil reserves would never be tapped, and that any legislation which might allow domestic reserves to be tapped would not be allowed to pass, leaving the US dependent on foreign oil forever.

    News of the Russian oil field has been announced just as predicted, but whether the rest happens as stated above remains to be seen. Nevertheless, many of these revelations seem quite feasible, so we thought we would comment on how these revelations might play out under the current financial scenario.

    Certainly, if the world’s oil reserves, ready to produce, are increased by an amount equal to the total oil reserves of the Middle East, oil could easily be brought down to $50 per barrel. It would almost be like starting all over again from an oil reserve perspective. This would destroy the economies of countries that are currently giving us trouble, such as Iran and Venezuela, allowing us to defeat them without ever firing another shot. Russia would get less per barrel, but would be selling an awful lot of oil out of their vastly increased reserves, so they would be weakened, but not bankrupted. Nations in the Middle East, whose reserves are rapidly dwindling, would all be destroyed from an economic perspective at first, but the ensuing civil unrest would also eventually topple all Middle East OPEC regimes, allowing the US to move in and take over control of their governments and their remaining oil reserves. Countries such as China, Japan and India, who import large portions of their oil, would get a huge shot in the arm from reduced oil prices, and this would also be a great help to the free trade-globalization agenda, which is being strained by high oil prices because transportation costs are offsetting the advantages of cheap labor.

    What we envision happening under the scenario revealed to Mr. Williams would certainly start with the stated reduction in oil prices well ahead of elections. This would produce great joy and relief for the sheople and ignite a huge, worldwide stock market rally just prior to elections, making George Bush and congressional incumbents look a lot better and lending support to John McCain, the stated preferred presidential candidate of big oil. Much lower oil prices would support the dollar and suppress precious metals by reducing inflation by the amount attributable to recent oil price increases, but only at first. The huge rally would give the elitists the chance they were looking for to bail out of paper assets such as stocks, bonds (which would include treasuries) and derivatives at the top of the markets using the dark pools of liquidity known as Project Turquoise and Baikal. The proceeds from the sale of paper assets would then be plowed into real, tangible assets such as commodities, precious metals, real estate, infrastructure, machines and equipment and corporations whose values are heavily weighted in tangible assets, such as resource stocks. The prices of such real, tangible assets would be bought on the cheap due to their ongoing suppression, or at least that would be the Illuminati’s hope, but we see most of these items skyrocketing long before the elitists get their fill of these goodies. Many nations with large forex reserves, like China, Japan and Germany, and especially nations “friendly” to the US, such as Saudi Arabia, who would be hurt by lower oil prices, would be given free reign to invest in tangible, real assets of the US, and this ties in with the cessation of the FTC’s publication of statistics regarding foreign investment in the US as a cover-up for this huge flood of foreign money. These foreign investment reports allegedly were discontinued because such reports cost too much to produce, but essentially this is the same bologna we got from the Fed when they discontinued the publication of M3 to cover up their profligate issuance of money and credit.

    All this money pouring into tangible, real assets from the sale of paper assets through dark pools of liquidity outside the view of the public and outside the view of non-insider institutional investors would then ignite a fresh round of wildly spiraling inflation. Such hyperinflation, compounded by direct monetization of treasuries by the Fed to bail out big commercial banks and other financial institutions, including Fannie and Freddie, and to finance burgeoning foreign trade and current account deficits caused by the cessation of foreign investment in treasury paper, would take us to a historical reenactment of Germany’s former Weimar Republic and today’s Zimbabwe. The dollar would collapse, along with our economy, and stock, bond and derivative markets would be devastated. The public, as usual, would be left holding the bag, precisely as happened in the days leading up to the Stock Market Crash of 1929 and the ensuing Great Depression.

    As an aside, all insiders were warned early in 1929 when to get out (i.e. when the Fed was going to turn off the money and credit spigot) while all non-insiders were left like lambs for the ensuing slaughter. Rest assured that the elitists are planning a repeat of that rip-off, but on a much grander scale. During the Great Depression, FDR outlawed ownership of gold in the US, but elitist insiders were warned of this in advance and moved their gold holdings overseas. FDR then raised the redemption rate for an ounce of gold from $20 to $35, giving the elitist insiders an instant 75% profit, showing that crime does pay, and pay well, when you are a part of the group of reprobates and sociopaths who comprise or support the Illuminati. This type of treatment of public gold holdings will most likely not happen under the current scenario, because US citizens hold very little gold, the gold standard has been eliminated, and most of elitist gold holdings are now held overseas in any case, especially in Switzerland. Also, gold bullion holdings of the US treasury have all been stolen, leased, swapped out or otherwise compromised. That is why our so-called gold “reserves” have not been properly audited since 1954, and why they are referred to as “deep storage gold” in the US Mint’s and Treasury Department’s statements of account. Elitists may use their thousands of tons of failsafe gold, which, incidentally, they have acquired over the ensuing decades either by stealing them from national treasuries or by buying them at fire-sale prices such as the bargains made available through Gordon Brown’s sale of the UK’s national gold at the bottom of the market, to back a new regional currency for North America such as the proposed Amero once the dollar has been destroyed.

    Getting back once again to Mr. Williams’ scenario, in order to protect scum-bag incumbents who always do whatever the Illuminati tell them to do because they are bought-and-paid-for or compromised, the elitists would attempt to support the dollar and prevent it from collapsing prior to elections. They would do this by temporarily stemming the flood of foreign investment in tangible, real assets located within the US and by getting certain nations like China and Japan to keep buying up treasuries by giving them sweetheart deals on such future investments in tangible, real assets located in the US, especially on real estate, infrastructure and investment in surviving elitist financial institutions and transnational conglomerates. Many Arab nations would break their dollar pegs, but would delay doing so until after elections based on promises of security for what will be their outgoing regimes once their economies collapse from cheap oil prices. This could be why Paulson and Bernanke are flying around the globe meeting with various heads of state, namely, to arrange all of the above.

    Once the new round of hyperinflation got started, the dollar would be destroyed and replaced with a new currency such as the Amero which would be the de facto start up of the North American Union which the elitists continue to vehemently deny is a work-in-progress for the US, Canadian and Mexican governments.

    During the ensuing financial conflagration, the elitists would attempt to nationalize many industries, and take control over the regulation of the entire financial sector through the Fed or its super-nasty successor which may well be planned by the Illuminati. Civil unrest may ensue in the US, and this would be used to increase police state powers, perhaps through the implementation of martial law, which has all been set up in the Patriot Acts and the Military Commissions Act. Off to the concentration camps will go all the truth-seeking and truth-disseminating troublemakers while the rest of the sheople are led blindly around with a ring in their nose to wherever the elitists decide to take them. The troublemakers have already been identified by the CIA, NSA, Pentagon and FBI using Project Echelon and scads of illegal wire-taps and other nefarious spying techniques which the Bush Administration has rampantly implemented in pursuance of a surveillance society and Nazi-like police state. The end result that is planned is a corporatist, fascist state that would make Mussolini and Hitler green with envy. Next comes the elimination of the “useless eaters” and the creation of Plato’s vision, which is George Orwell’s “1984” on steroids, the ultimate worldwide feudal system.

    The above scenario is not without its problems, however. Lower oil prices reduce elitist profits, and could put a big hit on struggling elitist financial institutions that are exploiting the Enron loophole and cheap credit from the Fed to save their balance sheets. However, once the Illuminati control the world’s oil, they can price oil as high as they like using whatever excuse suits them at the time, just as they have done for decades. But control over oil in Russia and Indonesia may be problematic, since these regimes are not typically friendly to US interests. Further, confrontations may occur with China, India and other big oil importers who may feel that their continuous supply of oil would be under constant threat if the Illuminists controlled most of the world’s reserves, and some of those big oil consumers may try to cut deals with the bankrupted nations in OPEC as a failsafe against Illuminist control assuming that such bankrupted nations are able to shirk off Illuminist attempts to take them over. This may entail much war and conflict, which the financially strapped US is unable to handle with its stretched-to-the-limit military. Also, civil unrest and protests may get out of control in the US and abroad and the Illuminati may get a much bigger backlash than they are planning. People are going to get wise to what has been done to them, and a good number of them are going to do something about it. Many Illuminists may start to disappear without a trace if people start to get their dander up, and the civil unrest may spiral beyond elitist control. Further, the Illuminati are very vulnerable due to the credit-crunch, asset-backed derivative and real estate debacles plus the inevitable addition of a quadrillion dollar, smoldering caldera of interest rate and credit default swaps. Also, what would happen if certain nations did not cooperate, and started to by precious metals and commodities with their sovereign wealth funds or broke their dollar pegs too soon. It’s not as easy as it might first appear, and we can always count on the forces of “Chaos” to show the same acumen as those in the old “Get Smart” series, so the Illuminati really have their work cut out for them. We believe they will ultimately fail, and that world government will once again become a far-in-the-future objective for the would-be lords of the universe.

    If you don’t own gold, silver and their related shares under the Williams scenario, you will quite simply be vaporized.

    The rollover process for COMEX gold futures got underway this week, which is why gold is showing some weakness, in addition to lower manipulated oil prices and dead-cat PPT dollar rallies that will soon peter out. This process will be complete by the end of July, and then its Katie-bar-the-door against the explosion in precious metals prices. Earnings will continue to disappoint, the credit-crunch will worsen, bank failures will continue to occur, the dollar and assets denominated in dollars will continue to be shunned, ardent de-leveraging will continue unabated keeping pressure on the stock markets, the real estate market will continue to worsen and derivatives will soon implode as inflation spirals out of control, consumer spending drops into nothingness and real interest rates continue to rise, giving rise to a potential bear market in bonds that could bring the whole Illuminist financial house of cards tumbling down as their main source of power explodes and goes down in flames like the Hindenberg. The Fed continues to be irrelevant because their power over real interest rates is greatly diminished. The Fed’s governors are boxed in and cannot get out, as their European counterparts take rates in the opposite direction the Fed governors would really like to go if it would not stoke inflation in the process. The fraudsters will continue to fail, and the sheople will continue to bail, unless we rise up and do something about it. Throwing out all incumbents would be a good start
    http://theinternationalforecaster.com/International_Forecaster_Weekly/Paper_Sold_To_Pools_Of_Liquidity

  2. inthesenewtimes said

    Current trends in the anglosphere certainly point to the monopoly of all tangible wealth land, real estate, commodities, food by the elite. This monopoly also implies of course the destruction of the market since the purchasing power of the people tends to zero. This would be a kind of destruction of capitalism from above and the return to feudalism. The realization of such a programme seems an awfully long shot in today’s conditions and would imply a culling of a large portion of the population in accordance with the massive diminution of the productive forces. Therefore, I think it fair to assess the elite’s response as being largely instinctive aimed at protecting themselves and their monololy of wealth and power, without offering any perspectives at all of a way forward to the people as a whole. This impasse is basically a result of their failed imperial agenda and the way should now be open for a positive programme to be put forward, breaking with imperialism and beginning reconstruction.

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