Thread: Lord Monckton: THE DOLLAR AND THE USA IS TOAST - China prepping for final collapse

http://www.alipac.us/f19/worlds-larg...-party-273150/

Are We Heading Into a 2008 Style Economic Implosion?

Wednesday, May 8, 2013 7:26
(Before It's News)

Graham Summers * Phoenix Capital Research

The media is jumping for joy over last week’s US jobs numbers. But beneath the veneer of headline numbers lies a truly horrible economic reality.

Let’s have a look at the two key economies for the world: China and the US.

For starters, China’s recent economic data, as massaged as it is to the upside, is downright awful. China’s PMI numbers were the worst in two years. Staffing levels in the Chinese service sector decreased for the first time since January 2009 (remember that year).

China’s LEI also shows no sign of recovery. If anything, it indicates China is heading towards an economic slowdown on par with that of 2008. And if you account for the rampant debt fueling China’s economy you could easily argue that China is posting 0% GDP growth today.

In the US, last week’s jobs report didn’t look too bad until you dug deeper into the report and found that the average workweek declined by 0.2 hours from March- April.

So what you may ask… 0.2 hours? Just under a 15 minutes per week?

The issue here is that if you apply this drop to the total number of people employed in the private sector, this is the equivalent of over 21 million work hours being lost in one month.

That is the single biggest drop since April of 2009 when the US economy was absolutely imploding. It’s the numerical equivalent of firing 718,000+ people.

This is how companies deal with economic contractions. They don’t start laying people off en masse… they start cutting work hours bit by bit. The mass layoffs don’t come until the official numbers announce that we’re in a full-blown recession.

The first stage of this is already happening. 99% of investors fail to see it, but the clear signs are there.

Investors take note, the market may be hitting new highs thanks to traders’ games, but the real economy is contracting sharply. This is precisely what happened during the market peaks before the Tech Crash and the 2008 Collapse.
We are getting precisely the same warnings this time around.

If you are not already preparing for a potential market collapse, now is the time to be doing so.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING.

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Best Regards,
Graham Summers

http://gainspainscapital.com/2013/05/06/are-we-heading-into-a-2008-style-economic-implosion/

http://beforeitsnews.com/economy/201...e-2518168.html

The Next Crash Will Be Unprecedented On A Global Scale

Monday, May 6, 2013 17:34
(Before It's News)

Canadian news agency interview bankers from Canada, the US and Europe. They admitted that the bankers meet in secret and control the governments of the world. The interviewer suggests that our money is no longer safe in the banks.

A Canadian documentary explores the repercussions of globally-coordinated quantitative easing (aka, printing gobs of thin-air money):



http://www.youtube.com/watch?feature...&v=7T_VxdLJdDU

They stated in the interview that we will see a crash unlike any other and there will be no good outcome on a global scale because everything from real estate to stocks are over inflated with nothing holding it up other than printed money. They then said once investors realize this in the stock market they will start withdrawing money like crazy. They also implied that the answer to the crash will be to steal our money out of our bank accounts and pension funds….

Neil Macdonald: The ‘monarchs of money’ and the war on savers

Power Shift: First in a series on the rise of the central bankers and the global imposition of cheap credit…

Stock markets have risen on this tide of cheap money. So has real estate. So, arguably, has everything else.

But there are two big concerns with what this new central banker elite has done.

One is that no one really understands the consequences of pumping such vast amounts of money into the world economy. It’s already distorted the prices of certain assets, and some fear hyperinflation or market crashes are inevitable (the subject of tomorrow’s column).

Read more at http://investmentwatchblog.com

http://beforeitsnews.com/financial-m...e-2546980.html

Why America Fell So Far So Fast

Monday, May 6, 2013 20:48
(Before It's News)

All Empires Crash Soon After They Reach Their Peak

Thomas Edison said, “Dissent is the highest form of patriotism.”

And so – because I love America – I frequently criticize the shortcomings of America.


But the truth is that the United States is not unusual … it is just like all other empires which have hit their peak and then quickly crashed.

We noted in 2009:

In 2000, America was described as the sole remaining superpower – or even the world’s “hyperpower”. Now we’re in real trouble (at the very least, you have to admit that we’re losing power and wealth in comparison with China).

How did it happen so fast?

***
How Empires Fall

Paul Farrel provides a bigger-picture analysis, quoting Jared Diamond and Marc Faber.

Diamond’s book’s, Collapse: How Societies Choose to Fail or Succeed, studies the collapse of civilizations throughout history, and finds:

Civilizations share a sharp curve of decline. Indeed, a society’s demise may begin only a decade or two after it reaches its peak population, wealth and power…

One of the choices has depended on the courage to practice long-term thinking, and to make bold, courageous, anticipatory decisions at a time when problems have become perceptible but before they reach crisis proportions

And PhD economist Faber states:

How [am I] so sure about this final collapse?

Of all the questions I have about the future, this is the easiest one to answer. Once a society becomes successful it becomes arrogant, righteous, overconfident, corrupt, and decadent … overspends … costly wars … wealth inequity and social tensions increase; and society enters a secular decline.

[Quoting 18th century Scottish historian Alexander Fraser Tytler:] The average life span of the world’s greatest civilizations has been 200 years progressing from “bondage to spiritual faith … to great courage … to liberty … to abundance … to selfishness … to complacency … to apathy … to dependence and … back into bondage”

[Where is America in the cycle?] It is most unlikely that Western societies, and especially the U.S., will be an exception to this typical “society cycle.” … The U.S. is somewhere between the phase where it moves “from complacency to apathy” and “from apathy to dependence.”

In other words, America’s rapid fall is not really that novel after all.

How Consumers, Politicians and Wall Street All Contributed to the Fall

On the individual level, people became “fat and happy”, the abundance led to selfishness (“greed is good”), and then complacency, and then apathy.

Indeed, if you think back about tv and radio ads over the last couple of decades, you can trace the tone of voice of the characters from Gordon Gecko-like, to complacent, to apathetic and know-nothing.

On the political level, there was no courage in the White House or Congress “to practice long-term thinking, and to make bold, courageous, anticipatory decisions”. Of course, the bucket-loads of donations from Wall Street didn’t hurt, but there was also a religion of deregulation promoted by Greenspan, Rubin, Gensler and others which preached that the economy was self-stabilizing and self-sustaining. This type of false ideology only can spread during times of abundance and complacency, when an empire is at its peak and people can fool themselves into thinking “the empire has always been prosperous, we’ve solved all of the problems, and we will always prosper” (incidentally, this type of false thinking was also common in the 1920′s, when government and financial leaders said that the “modern banking system” – overseen by the Federal Reserve – had destroyed instability once and for all).

And as for Wall Street, the best possible time to pillage is when your victim is at the peak of wealth. With America in a huge bubble phase of wealth and power, the Wall Street looters sucked out vast sums through fraudulent subprime loans, derivatives and securitization schemes, Ponzi schemes and high frequency trading and dark pools and all of the rest.

Like the mugger who waits until his victim has made a withdrawal from the ATM, the white collar criminals pounced when America’s economy was booming (at least on paper).
Given that the people were in a contented stupor of consumption, and the politicians were flush with cash and feel-good platitudes, the job of the criminals became easier.

A study of the crash of the Roman – or almost any other – empire would show something very similar.

Indeed, inequality was one of the main reasons for the fall of the Roman Empire … and inequality in America is much worse than in Ancient Rome.

And the government and big banks are all wallowing in a pig sty of criminal fraud. The economy has been hollowed out due to looting and fraud. And our institutions are so corrupt that people have lost faith in the economy. They are so corrupt and oppressive that people are more afraid of the government than of terrorists.

Of course, the bigger the bubble, the bigger crash … and we’ve just come out of the biggest bubble in history.

As everyone knows, the war in Iraq – which will end up costing between $5 and $6 trillion dollars – was launched based upon false justifications. Indeed, the government apparently planned both the Afghanistan war (see this and this) and the Iraq war before 9/11.

And empires which fight “one way too many” always collapse:

“Just one more surge!” — The Indus
“Just one more surge!” — The Kushan
“Just one more surge!” — The Scythians
“Just one more surge!” — The Parthians
“Just one more surge!” — The Saffarid
“Just one more surge!” — The Ghaznavid
“Just one more surge!” — The Ghorid
“Just one more surge!” — The Timurid
“Just one more surge!” — The Hotaki
“Just one more surge!” — The Durrani
“Just one more surge!” — The Aryan
“Just one more surge!” — The Persians
“Just one more surge!” — The Sassanids
“Just one more surge!” — The Hephthalites
“Just one more surge!” — The Huns
“Just one more surge!” — The Mughals
“Just one more surge!” — The Arabs
“Just one more surge!” — The Turkic
“Just one more surge!” — The Hazaras
“Just one more surge!” — The Khwarezmids
“Just one more surge!” — The Mongols
“Just one more surge!” — The British
“Just one more surge!” — The British (again)
“Just one more surge!” — The British (Yet again)
“Just one more surge!” — The USSR
“Just one more surge!” — The United States

Source: http://www.washingtonsblog.com/2013/05/why-america-fell-so-far-so-fast.html

http://beforeitsnews.com/economy/201...t-2517664.html

http://www.alipac.us/f19/global-flig...7/#post1343187

http://www.alipac.us/f19/global-flig...ielson-278067/

Let’s Do the Math

Sunday, May 5, 2013 14:19
(Before It's News)

Here’s a quote from Bloomberg.com September 13,2012:

The Federal Reserve said it will expand its holdings of long-term securities with open-ended purchases of $40 billion of mortgage debt a month in a third round of quantitative easing as it seeks to boost growth and reduce unemployment.

The Federal Reserve is buying 40 billion of real estate loans per month. The median price of a home in the US for December of 2012 was $180,000. Figure the banks want a 20 percent down payment. That comes out to 36K with a loan amount due of 144k. Take the 40 billion dollars and divide that by $144,000. That figures out to 277,778 home mortgages purchased per month. Just to kick this dead horse one more time multiply that amount by 12 months. The grand total is 3.3 million homes. The total number of homes sold in 2012 was 4.96 million. It kind of looks like the Federal Reserve holds a hell of a lot of home loans; almost 3/4ths of everything written last year. Of course, I must admit that I thought there was something seriously wrong with my pocket calculator when I first ran the numbers.

The biggest problem for a bank, is loaning money long term at low interest rates. Depositors don’t put their saving in a bank for 30 years; they move it around to get a better rate. Banks have no desire to finance 30 year home loans at these rates, when they can service your Visa card loan at 18 percent. They’ll write the loans and sell them to the secondary market, and guess who that is? The Federal Reserve, in theory, can finance the loans and wait out the full 30 years for repayment and not lose a dime on the deal.

There comes a point where the Federal Reserve has to choose between becoming the financial institution of choice for our real estate market, or get out of it. If and when they exit, interest rates should jump a couple of percent. The neat thing at this transition, a larger portion of the people holding real estate will have “skin in the game.” Most of the liar loans will be off of the books.

What will happen to the real estate market when the Federal Reserve stops buying home loans? Who will step in to provide financing? This implies a future rise in interest rates. A significant rate increase could trash the bond market. And of course the interest paid by us on the national debt would go up accordingly.

Ben’s not traveling to Jackson Hole this year for the meeting of the world’s financial wizards; he has a “previous engagement” which I find hard to believe. Tim Geithner already left at Treasury (very silently) and his replacement has noticeably kept his mouth shut. Bernanke not showing up at Jackson Hole, and Tim leaving, kind of suggests a reshuffling of policy for the world bank which they were the head of, and controlled. Several countries are repatriating their gold from our shores. Nobody has yelled “fire” yet, but this looks like an obvious move towards the exits.

How do we interpret the actions of Tim Geithner and Ben Bernanke? Is there a policy change underfoot that key people disagree with? The only thing that bothers me is the annual 3.3 million home loans the Federal Reserve bought to save our real estate market from ruin. And if you read the papers, real estate sales are picking up –gee, I wonder why? –and for how long?

Source: http://greatdepression2006.blogspot.com/2013/05/lets-do-math.html

http://beforeitsnews.com/economy/201...h-2517262.html

China’s Yuan Ploy Opens New Front in Currency War

http://www.alipac.us/f19/king-world-...5/#post1343280