Wednesday, April 22, 2009

Monday, April 20, 2009

Peter Schiff Video Blog Report April 20th, 2009

Gerald Celente and Peter Schiff accused of "Pessimis Porn" by ABC

Ironically they note them for being so accurate on forecasting everything we've already seen.

Thursday, April 16, 2009

GEAB N°34 is available! Summer 2009: The international monetary system’s breakdown is underway

- Public announcement GEAB N°34 (April 15, 200) -

The next stage of the crisis will result from a Chinese dream. Indeed, what on earth can China be dreaming of, caught – if we listen to Washington – in the “dollar trap” of its 1,400-billion worth of USD-denominated debt (1)? If we believe US leaders and their scores of media experts, China is only dreaming of remaining a prisoner, and even of intensifying the severity of its prison conditions by buying always more US T-Bonds and Dollars (2).

In fact, everyone knows what prisoners dream of? They dream of escaping of course, of getting out of prison. LEAP/E2020 has therefore no doubt that Beijing is now (3) constantly striving to find the means of disposing of, as early as possible, the mountain of « toxic » assets which US Treasuries and Dollars have become, keeping the wealth of 1,300 billion Chinese citizens (4) prisoner. In this issue of the GEAB (N°34), our team describes the “tunnels and galleries” Beijing has secretively begun to dig in the global financial and economic system in order to escape the « dollar trap » by the end of summer 2009. Once the US has defaulted on its debt, it will be time for the « everyman for himself » rule to prevail in the international system, in line with the final statement of the London G20 Summit which reads as a « chronicle of a geopolitical dislocation », as explained by LEAP/E2020 in this issue of the Global Europe Anticipation Bulletin.


Read the rest of the public announcement here

Wednesday, April 15, 2009

The resemblence of Germany pre-hyperinflation to the current US crisis

1) Post WW I Germany was the biggest debtor nation in the world, at that time. Debtor nations are dependent upon foreign cash flows. In contrast, in the 1930s, like Japan in 1990, the U.S. was the biggest creditor nation in the world. That is why Germany had hyperinflation when it printed money, while 1990s Japan and 1930s America had deflation as they did the same thing. Because we are the biggest debtor nation in the world, the current money printing will result in hyperinflation, NOT deflation.

2) Post WW I Germany had just finished fighting a major war on borrowed money, without properly budgeting or taxing. The USA has just fought, and continues to fight, multiple wars on multiple fronts that, while not quite as "big" as WW I, have been extraordinarily costly. We use a professional army, and its pay and equipment add huge costs. We have failed to budget these wars, and have borrowed money instead in order to fight them. By contrast, from an economic point of view, late 1920s and early 1930s America was a net "beneficiary" of WW I, which resulted in huge debts being owed to the USA, and the first stage of the rise of the U.S. dollar to replace the British pound as an international medium of exchange.

3) Post WW I Germany was heavily dependent upon the import of foreign raw materials. Indeed, the USA was one of its biggest creditors. The USA is no longer a creditor. It is now very dependent upon the import of foreign raw materials and finished goods. The temporary improvement in trade figures will disappear as the fake recovery gets under way. By contrast, in the 1930s, the U.S.A. was one of the biggest exporters of raw materials.

4) Post WW I Germany was heavily dependent upon foreign cash flows to plug holes in its budget after the War. Sales of bundesbonds to foreign buyers, including the American financier, J.P. Morgan, were critical. The USA is now even more dependent than post-war Germany once was, upon foreign cash flows. Sales of huge numbers of Treasury bills, notes and bonds are critical, and a lot of those sales are to China, who, unlike America to Germany in 1918, is currently our strategic competitor, and that makes our situation somewhat worse.

5) It is important to point out that Germany was not the only nation affected by the post-War depression and the so-called 1918 "credit crunch." All of Europe experienced it. Not all countries, however, followed the same path to ruin. Similarly, the whole world is now experiencing the so-called "credit crunch". Hopefully, not all nations will follow the path to ruin being forced by the United States, although the tendency to do so is greater, given the leadership position of this nation in the world compared to Germany then.

6) So, Germany led Europe in the effort to spend its way out of the post-war depression, while the rest of Europe, with the exception of the former Hapsburg possessions (the former Austro-Hungarian Empire) did NOT follow Germany's lead. The former Hapsburg possession did follow the German lead, although with less gusto, and ended up with hyperinflation, at a somewhat lower level. Similarly, the USA leads the world in an effort to spend its way out of this depression, and the U.K. is basically following in our footsteps. In 1919, many admired the Reichsbank. Employment rose, unemployment fell...economic output exploded -- or seemed to, at first. No doubt, that will be the case, again, this time as America leads the way into a fake recovery. Most of Germany's recovery amounted to irrational production. The industrial bailouts were improperly allocated and colored by the illicit transfer of wealth that is inherent when a nation chooses to print up new money. The same will be the case with America.

7) Like America, now, the post WW I German money flows, into that nation, continued for quite a while, in spite of the flawed policies of the Reichsbank. American trade interests, for example, supported German spending on U.S. raw material products, because Germany was one of their biggest markets. The USA played a similar role with respect to the Weimar Republic as China plays now to the USA. It was Germany's biggest creditor. It is quite likely that money flows to America may continue for an even longer time. However, eventually, they will be cut off. It is important, once again, to point out that China is our strategic competitor, whereas a large part of the U.S. population has German ancestry that made us a natural friend to Germany.

8) Like the foolish foreigners who now buy U.S. bonds, even otherwise savvy American financiers, like J.P. Morgan, were convinced by officials of the Reichsbank, that the problems were temporary, and that the mark would regain value, just as buyers of Treasury debt are now convinced that the dollar will retain value. The U.S. has a distinct advantage, because it is able to pump the exchange value of its currency with credit default events that must be settled in dollars. This results in a direct benefit to the dollar in terms of exchange value, and allowed the Fed to obtain foreign currency swap lines. The swap lines were obtained because foreign central banks temporarily needed to supply dollars to financial firms who needed to settle CDS events. In addition, most of the U.S. debt is denominated in dollars. So, the temporary party will go on longer in America, until the world's patience is finally exhausted, and the devaluation of the dollar will not be in the trillions, but, rather likely, it will be in the high single digits, or low double digits. My personal estimate is from a 4 to 10 to 1 devaluation, although anything is possible.

9) The Reichsbank claimed that it could control the events it created, just as the Federal Reserve does now. Questionable statistics were regularly published, just as is now the case in the USA. German authorities believed, just as American authorities now believe, that the perception is more important than economic reality. Eventually, however, when the foreign cash flows dried up, reality did reassert itself, as it always does, and the German economy entered hyperinflation.

10) Finally, most tellingly, the German "professional" economists called the 1918 post war depression, prior to the hyperinflation, "the credit crisis", or "the credit crunch", and the prevailing complaint was that banks were hesitant to lend money. Unwittingly, American professional economists, including Mr. Bernanke, have dubbed the present crisis with the same names, and the complaint is exactly the same. Notoriously, the prescribed remedy is also exactly the same, even though, from all the speeches given by Federal Reserve officials, rather than overtly intending to copy the Reichsbank, they seem to be blissfully unaware of the entire German event. Frightening...

Source

China cutting back

04/15/09 Freedom Watch Tax Day w/ Napolitano, Ron Paul, Peter Schiff, Lew Rockwell






Tuesday, April 14, 2009

Gov. Perry Backs Resolution Affirming Texas’ Sovereignty Under 10th Amendment

The illusions of a celebrated recovery

A month-long upturn in the stock market has sparked a round of optimistic media commentaries and statements by Obama administration officials suggesting that the US economy is on the road to recovery. But any serious examination of the state of both the financial system and the broader economy suggests that such celebrations are unwarranted.

• Factory orders have fallen so rapidly that US manufacturers are using less than 68 percent of capacity, the lowest level since records began in 1948.
• March saw 35 corporations default on bond payments, the largest monthly total since the Great Depression, according to Moody’s. The default rate has shot up from 1.5 percent a year ago to 7 percent, and will reach 14.6 percent by the fourth quarter, the rating service said.
• Bloomberg News forecasted that corporate profits for the first quarter will fall 37 percent, the seventh consecutive quarterly decline, the worst since the 1930s.
• As measured by the market for credit default swaps, investors have been making large bets that Citigroup and Bank America will collapse. Similar bets were seen before the liquidation of Bear Stearns and Lehman Brothers last year.
• World trade is shrinking more rapidly than during the plunge of 1929-30 according to a paper published this week by economists Barry Eichengreen of the University of California and Kevin O’Rourke of Ireland’s Trinity College.
The deepening crisis is demonstrated above all in its effects on jobs and living standards for the working class:
• The Bureau of Labor Statistics reported that 24 million workers, 15.6 percent of the labor force, are either unemployed or working only part-time when they want full-time work. This is an increase of 10 million workers in barely a year.
• Forty percent of US companies said they plan to freeze or cut salaries this year, according to a survey reported by Reuters April 7.
• Companies have cut back in five employee benefit areas, including 401(k) matches and tuition reimbursement, according to a report in USA Today.
• The average 401(k) account plunged in value by 27 percent in 2008, according to the huge Fidelity Investments mutual fund.
• Personal bankruptcy filings are up 38 percent compared with a year earlier, according to Mike Bickford, president of Automated Access to Court Electronic Records, a bankruptcy data and management company. In all, 130,793 people filed for bankruptcy in March.

Obama on the economy





Dr. Ron Paul on MSNBC in Response to Barack Obama's Speech 04-14-09

Ron Paul 4/14/2009 "Obama Wrong, Destroying Dollar W/ Economic Fascism & Central Planning"

Peter Schiff Vlog Report 14 Apr 2009

Peter Schiff Vlog Report 13 Apr 2009

Peter Schiff June 2005 explaining housing bubble, recession

V

Sunday, April 12, 2009

Breakdown of US debt

The break out:

$9.7 Trillion in bailouts
$11 Trillion in national debt
$17 Trillion in corporate/financial debt, and $13.8 Trillion in household debt
$1 Trillion in credit card debt
$10.5 Trillion in mortgages
$52 Trillion in social security/medicare obligations

Like other government trust funds (highway, unemployment insurance and so forth), the Social Security and Medicare Trust Funds exist purely for accounting purposes: to keep track of surpluses and deficits in the inflow and outflow of money. The accumulated Social Security surplus actually consists of paper certificates (non-negotiable bonds) kept in a filing cabinet in a government office in West Virginia. These bonds cannot be sold on Wall Street or to foreign investors. They can only be returned to the Treasury. In essence, they are little more than IOUs the government writes to itself.

$200 Trillion in U.S. bank derivatives (notional)

Total excluding derivatives: $115 Trillion
Total including derivatives: $315 Trillion

In budgetary context:

$2.3 Trillion budget deficit this year, $10 Trillion in the next 10 years.

In the context of the consumer balance sheet:

$20.5 Trillion of residential real estate
$8.8 Trillion of equities
$7.7 Trillion of deposits and cash
$4.1 Trillion of consumer durable goods
$1.6 Trillion of corporate bonds
$960 Billion of municipal securities
$920 Billion of agency paper
$273 Billion of treasury notes and bonds

Total: $44.9 Trillion

Source

Saturday, April 11, 2009

What the US national debt looks like in $1 bills

Salbuchi - Will It Be World Government?

Part 1: Summarizes how the Global System REALLY works. "New World Order" as a generic description of periodic global systemic overhauls. Now, the Power Elite want to go for World Government.

Part 2: Describes how the New World Order-promoting Think Tanks, Lobbies and NGO's operate as strategic and tactical DESIGNERS AND PLANNERS. The actual EXECUTION of their plans, however, is done from each Member's "natural place of action", i.e., as CEO or decision-maker at Multinational Corporations, Transnational Banks, Multilateral Institutions, Ivy-League Universities, The Media or Governement. Now, they are going for World Government...!

Saturday, April 4, 2009

Friday, April 3, 2009

Wednesday, April 1, 2009