U.S. isolated and bankrupt

“There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.” Ludwig von Mises

Today we’re going to make a quick review of the trends of interest that impinge on the ability of the New World Order to hold itself together and control us. In the Era of Constant Crisis, certain trendlines have played themselves out, and others have emerged as influential. This review will set you up for a change in mini-era, a change to the next phase of the New World Order.

Europe has stabilized its financial system after the Greece bailout crisis. The European Union is going to hold itself together while debt issuers pay off debts. European governments’ austerity measures should work to prolong the EU’s future. European banks are stress-tested; most will survive. Shutting out U.S. influence means Europe can survive, alone. The long-term trend of anti-white immigration policies can continue. European nations will have to deal with street violence, but we assume they can control their populations with force.

Some sharp economists are still predicting bond default by the PIIGS or in Eastern Europe, but even if this turns out to be the case, Europe has bought itself time.

In the United States, attention is going to turn to the Fed as quantitative easing is the only thing holding the financial system together. None of the fundamental financial problems that caused the crash has been solved. We are in the same position as in 2008. The recent five quarters of economic growth were purchased with trillions in stimulus. Basically, we got nothing for it but a few jobs, higher corporate profits, and a pile of debt.

But the Democrats continue to spend us into national bankruptcy. Thanks to Michelle Bachmann for explaining how the latest state-aid spending bill (aimed at saving teachers’ jobs) will play out. The unions will get a pile of federal cash. They will transfer much of it to Democratic candidates running for office. It doesn’t get any more corrupt than that.

“Conservative” economists devoted to “free markets,” supply-side stimulus, low taxes, and balanced budgets keep launching attacks against Obama and the Fed, but nothing keeps the Democrats from spending. That is because “Neo-Keynesian” economics holds that the Fed can pay for increases in government spending simply by “printing money.” This formula has worked for a couple of decades, obviating the necessity for tax increases to pay for the wars, banker bailouts, and state bailouts. But the extreme overspending and zero interest rate policy now have the rest of the world’s attention.

Even though the Federal Reserve itself, the IMF, China, European leaders, and leading economists have warned that Obama’s spending is unsustainable and will lead to financial disaster, the Fed continues to support socialist deficit spending with its low interest rates and quantitative easing.

If you only take one thing from today’s post, understand that the Fed quantitative easing policy enables Obama to continue his reckless spending, corruption, and police-state takeover.

The Fed’s policies are designed to enrich the big banks, and the big banks are interested in keeping everyone in debt to them, including governments. The bankers and the socialists are in the same camp. Debt peonage is the silent slavery of the New World Order. Global socialism is the public propaganda arm (“hope and change”). The police state benefits both parties by checking potential resistance from below.

U.S. imports are soaring and exports are shrinking. In China exports are soaring and imports are shrinking. The economists call this a “trade imbalance.” The term is not strong enough to describe the wealth flow out of the U.S. and toward China. The “imbalance” is so one-sided that the world is trying to abandon the dollar. China has downgraded U.S. debt from AAA to AA.

U.S. credit agencies are attempting to remove their ratings from all bonds due to the new financial regulation bill, which holds them legally responsible for their credit ratings.

Everyone but the Fed and the Democrats knows the U.S. can no longer issue debt based on future productivity of the economy. The people are beginning to understand that there may be no economic recovery for them. Talk of recovery is only a statistical measure, anyway, indicating growth from present levels. Growth would have to be very much higher than projected to service the debt. Growth or no growth, the loss of wealth, estimated at $8 trillion in the U.S., will never be replaced.

The economic trendline of greatest danger is continued housing and real estate price deflation. Fannie and Freddie cannot support the current mortgage default rate, banks are loaded with risky mortgages, and the derivative mortgage market is so huge that marking their true value would bankrupt many banks.

The propaganda line that the Fed and the Treasury saved the economy from a Depression deflects attention from the possibility of a Depression ahead.

State and local government layoffs have not yet reached their peak, meaning unemployment has not yet reached its peak. With real unemployment rates over 20 percent in many countries, pools of desperate people are forming. Visibly desperate people are a minor embarrassment to the socialists. They can be explained away and controlled with state force. They only become significant if they change their orientation away from supporting socialist government and form armed gangs.

With U.S. financial regulation now forbidding bank bailouts, bank credit ratings are diving.

Home ownership has fallen to its lowest level, millions of houses are standing empty in foreclosure. Many economists are forecasting a commercial real estate collapse in the next year. Many forecasters explain that housing prices have not yet bottomed.

Capitalist scavengers are now swooping in to pick up these distressed assets for pennies on the dollar. This always happens after a recession. Recessions work to the advantage of the wealthy because they are able to buy at cheap prices when prices deflate. But this time it’s different. Obama and the Fed are so dangerous that wealthy investors fear the potential of a dollar collapse.

Obama has no foreign supporters except radical Islam, which he is funding. They are not powerful enough to save him.

Check in with Mish for recent economic statistics. Sentiment is poor. Consumers are trying to save and are not spending enough to support retail “recovery.” Increasing tax burdens also threaten “recovery.” We want to orient you away from talk of recovery on TV. Sending more women to shop at the mall is not the purpose of life. “Recovery” is an abstract, statistical concept. Waiting for recovery and being satisfied with recovery is a formula for supporting New World Order takeover. Even economic hardship can be good if it orients you toward taking control over your future rather than waiting for government policies to put money in your pocket.

We will help you in future posts with identity cleansing and value recovery. Start by ridding yourself of the false idea that the federal government is your friend and the United States is a great country.

The most positive outlook of the moment is for a stagnant economy, but in the next few months the underlying instability of the credit markets could prompt the Fed to do something drastic. There could be a big, destabilizing economic change in Fed policy during the fall months. Economists are debating this change in terms of a battle between inflation and deflation, but behind the scenes the elite global gangsters are debating the role of the Federal Reserve in terms of U.S. collapse and the ripple effect it will have on the rest of the world.

The next era will either feature a huge economic and financial crisis inside the United States or some retrenchment of Obama’s socialist policies, leading to stagnation. At the moment there is a huge divide between the bulls and bears on Wall Street, signaling extreme uncertainty about the economic outlook. Dribs and drabs of bad economic news are actually good news in such an environment because it will mean the economy is limping along rather than imploding in catastrophe.

Having isolated America and rejected the dollar, the rest of the world will shape their economies more locally. The United States has not addressed any of the problems that caused the financial crisis, with one possible small exception. We do not hear the Communists in the UN continuing to call for writing mortgages to illegal immigrants and other poorly qualified minority home buyers.

Europe

Newsweek assesses European banks. Recently, Newsweek sold for a price of $1. That’s what liberal media are worth.

A better analysis by Chan Akya.

Some news on political forces in Germany. Germany is recovering its industrial production thanks to the austerity policies and rejection of Obama.

England sets the model for green taxes, energy control. Obama and Al Gore are envious of how easily England was taken over.

Greece unions strike, Communists threaten terror. What unions do when their subsidies are cut. Street violence in Greece could be a problem because it is organized by the Left.

Slovakia refuses to pay for Greece bailout. We love EU disunity.

The Netherlands became the first NATO country to withdraw from Afghanistan. Elections matter when they can affect major national policies.

John Mauldin on why Belgium may split apart. We hope all multi-ethnic nations split apart.

Review of the Europe/U.S. policy split. Forecasts about the endless fall of the euro are not playing out. The Europeans’ decision to split away from Obama and Goldman favors Europe. America is going to be left alone to implode.

Hungary’s forint drops against euro, faces further devaluation. But we’re not overly worried about currency devaluations in the Era of Constant Crisis. The declining Eastern European population means, whites can flock there and reproduce, right in the heart of the greatest culture in human history, even if the currency collapses.

An investor looks at Eastern Europe.

Eastern Europe and Russia are open to white migration, though we caution about being naive about present political leaders. Eastern Europe is still oriented toward European Union socialism, and Russia faces big economic problems. But it’s not safe to be white in the United States under Obama’s black Marxism, depopulation, pro-feminist, pro-gay, and forced integration policies.

U.S. economy

There is talk of economic recovery, but what we are going through is not a cyclical recovery from recession. Recovery is not what the controllers are planning. They are planning a split into three general classes, the privileged elites, the bureaucratic controllers, and those enslaved in debt peonage and dependent on the government for income. Sort of like the Soviet Union.

Obama is running monthly deficits triple those of George Bush. U.S. debt passes $13 trillion.

A very comprehensive explanation for why high debt service levels will kill the economy.

The United States is bankrupt. Ditto. We told you that over a year ago.

Chapman on the deflation scare and why the dollar is falling.

Chapman on the economic trendlines and why governments will need to return to the gold standard.

Steve Betts on the falling dollar.

Gary Dorsch on quantitative easing, commodity prices, and currency fluctuations.

Jim Willie on what the criminal syndicate is up to, hiding Treasury bill purchases. The global cabal of central bankers have a lot of tricks that are difficult to expose. The Fed can invite examination of its assets by hiding assets overseas. Clever.

The Fed wants to inflate, but Mish argues that quantitative easing may not lead to inflation. This would be the worst-case scenario for the Fed.

“The big corporations are sitting on piles of cash” myth.

A look inside J.P. Morgan’s trading desk. Big Wall Street firms continue to use obscenely high leverage to siphon money out of the markets. The world financial system will threaten the productive economy as long as these banksters are allowed to do business as usual. Wall Street has not been reformed, despite the financial regulation bill. But other nations are blocking Wall Street banksters from doing business overseas, so increasingly the problem is being localized to the damage they can do to the United States.

A summary of Glenn Beck’s analysis of Obama’s “Crime, Inc.” cap and trade scam. On the back burner for the moment, but only because Obama’s power is slipping away. Cap and trade remains the chief building block of the global socialist takeover. The UN is still pushing for a carbon tax.

Martin Weiss analyzes the economy.

As all eyes turn to what the Fed will do next, study paragraph 7 in this post.

Bloomberg diagnoses California. California is in worse shape than Greece. California’s budget is several weeks overdue, and in August state workers will be forced to take days off without pay. California has run out of revenue and will again issue IOUs. Arguing over reforming public pensions is the issue delaying a budget.

More on the budget standoff in California.

Wyoming seeks to sell off prime land in Grand Teton National Park. A very strange game of blackmail between the state and the feds. States are now offering stiff resistance to federal mandates, but this issue will end up in the courts and the states will lose. The logical next step would be for a group of states to band together and declare their independence. If that happens, you can migrate there and fight.

Unions resisting pension reform are the chief obstacle to balancing state budgets. There won’t be a “recovery” scenario unless the government unions are broken, but this may never happen.

Firefighter layoffs in Philly.

Police layoffs in St. Louis.

This would be a good time to join a white gang. At least buy a gun. When socialism breaks, it devolves into gang violence. Oh yeah, and stay out of debt, otherwise you end up supporting the corrupt banker/socialist criminal syndicate. The voluntary abandonment of further credit expansion is the optimum alternative to continued credit expansion.

Of interest:

Congress reports on where the TARP money went, to overseas banks. We told you this over a year ago. What is missing from the report is who threatened Henry Paulson with what retaliation for predatory bankster practices abroad. Congress will never report on that.

We are getting leaks (possibly disinformation) that the global gangsters who rule the world are not going to let Obama and the Fed continue to spend and issue funny money. Too much is at stake for the rest of the world. The sign that Obama’s jive jig is up will be the replacement of the present vice-president, Joe Biden, by someone else, probably Hillary. We don’t understand how the Clintons are able to maintain their global power, but there it is. Some enterprising reporter should interview Poppy Bush to see if he lets the cat out of the bag. The big decision to replace the president is his to make. We’re not sure that he is powerful enough to bring down or hobble the Federal Reserve, but good luck with that anyway.

Which global criminal are you rooting for?


About The Author

I read over 500 books on the history of the New World Order, but you only need to read one book to make up for the poor education they gave you in the public schools. The Hidden Masters Who Rule the World is a scholarly history that will take you beyond all parties, all worldviews, all prophecies, and all propaganda to an understanding of the future that the global controllers have planned for us.

Comments

4 Responses to “U.S. isolated and bankrupt”

  1. pi says:

    Thanks for share! It’s really useful for everyone!

  2. You really make it seem so easy with your presentation but I find this topic to be really something which I think I would never understand. It seems too complicated and very broad for me. I am looking forward for your next post, I will try to get the hang of it!

    Future posts won’t help you. You need The Hidden Masters and the posts on the global economic war for background.

  3. Found your post via Yahoo. Improvement of the US new home market is the only way to fix the economy. It’s how the US came out of the last Great Depression.

    Waiting for recovery and being satisfied with recovery is a formula for supporting New World Order takeover.

  4. It’s going to happen, gold is going to $5000 an ounce. It could, take a couple years but the USD is going down and the gold price is rising. Determining what the price is going to be is tough, but Peter Schiff and Jim Rogers have already accurately predicted the current $1200 and the $5,000.00 price soon. Throw your TV out the window and read more online, instead!

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