They did not explain to people that their houses could plummet in value while the interest rate on loans could soar to oblivion.
The next leg of the overall economic downturn will come on quick and hard like a tornado and those who fail to prepare will be blindsided, and suffer their denial. We have an uncanny ability to dismiss the seriousness of events which makes matters much worse for the unprepared. It will be a dark time worldwide, a catastrophe that none of us are imagining.
We live in a world being changed for good. This is the time to spell out the hard truth about what that crisis means to the future and what it means to us. “In the coming years, the world is likely to change as radically as it did entering the industrial revolution. This is going to be a really major change, economically, politically, technologically, demographically, socially, militarily – the whole ball of wax,” concludes Doug Casey.
Who we are, what we do and where we live matter very much in the world today. Ty Andros says, “As the commencement of the next leg down in the developed world’s economies continues to unfold like the sunset at the end of the day, the emerging world is healthier than ever and economic sunrise is still on their horizons. Economic trains traveling in completely different directions. In the emerging world, growth, capitalism, creative destruction and competition are embraced; they know the recipe for an expanding economy which means more food on everyone’s plates.” Though there is some truth to what Andros is saying I believe he is discounting the interconnectedness of central banks everywhere and the trillions of American greenbacks sitting in their vaults.
Important Videos on What is Coming
Today is an era of astronomical numbers going off the charts. From Alt-A and option ARM negative net worth and the amount banks are exposed in these mortgage categories (which threaten them with having their guts ripped out) to the federal governments debt and deficit, which has already gone to another galaxy, the future is bleak. There are black holes all around us, literally uncountable trillions in derivatives, debt default swaps, and huge trillions in health, social security and pension obligations.
Look at the chart again and imagine you’re in a plane diving directly for earth at increasing speed and the ground is looming up and you will get an idea of where we are and where we are going. It’s not stupid for someone in the plane’s cockpit to shout out “Hey we are going to hit the ground,” nor would it be stupid to start praying.
It is a fiscal crisis of the Western world. Its ramifications are far more profound than most investors currently appreciate but daily more and more smell blood in the debt markets. The U.S. and the world’s financial systems are literally coming apart at the seams, and at this point there is very little that can be done to prevent a total economic breakdown. We are coming down to choices that are either dire or disastrous as we are caught between a rock and a hard place; on the devils anvil with all hope being but diversions from the harsh reality facing us en mass.
It is a no-win situation for the system as a whole. It’s impossible to think about Greece or any other country or State without thinking about the system as a whole, because, of course, each part is embedded in the entire system. The global financial system faces threats from many fronts, any one of which can bring it down like a house of cards. Nightmare economics have dominated the scene and we will have exactly what might be expected from selfish dehumanizing activities.
Germany, the spine of the European Union said its economy shrank 5% in 2009 leaving them and all of Europe more vulnerable than a year ago.
We are entering stage four (financial) cancer where debt growth takes on the shape of a deadly tumor eating whatever is healthy and wholesome left of the host. The tumor’s rate of growth has grown too large and the debt hole has been dug too deep. The ability to pay has come to its mathematical limit and now threatens the value of an entire planet-full of savings including both private and public pensions like Social Security.
Corruption runs rampant in the United States as elites try to preserve the past at any cost and they will print money and manipulate markets to foster illusions. – Ty Andros
We have enormous and multiple hazards embedded in the system yet the markets barely react unless we have an entire country on the chopping block. Things have never been worse but most go on hoping the worst will not happen with investors being on top of the list. But day by day “the lumbering, clumbering wheels roll on…towards bigger governments with greater debts,” says Bill Bonner.
Where is this all Going
Courtesy Grant Abston/AP
A software engineer furious with the Internal Revenue Service launched a suicide attack on the agency by crashing his small plane into an office building containing nearly 200 IRS employees, setting off a raging fire that sent workers fleeing for their lives. The dead pilot left a note citing run-ins he had with the IRS and ranted about the tax agency, government bailouts and corporate America’s “thugs and plunderers.” “I have had all I can stand, I choose not to keep looking over my shoulder at `big brother’ while he strips my carcass.”
U.S. Homeland Security Secretary Janet Napolitano says authorities are becoming more concerned about American citizens or legal residents becoming involved in terrorist plots against the United States. Speaking to a gathering of state governors, Napolitano said law enforcement officials do not have good methods for preventing people from becoming violent extremists.
“Should the government really be surprised that an American flew a plane into an IRS building in a fit of rage as we all get repeatedly fleeced by the political and social elites of this country? Let me preface all of this by saying violence is not the answer here. However, why shouldn’t every American be infuriated by what has occurred since this crisis began?” asks one unidentified blogger.
Once established, the intellectual class continues to feed politicians and bureaucrats with ideas that point toward one solution: big government, interventionism, wealth redistribution, and other egalitarian absurdities. – J. R. Nyquist
No mention of government sponsored violence or the tendency of the federal government itself to act and be involved in terrorism around the globe even at home against its own people, is ever mentioned by officials. The federal government did not think twice about dropping two atomic bombs on civilians in Japan nor do they think twice about poisoning their own population with fluoride dumped directly into its own water supplies. This same government defends injecting babies with highly toxic substances like mercury containing Thimerosal (a lethal vaccine preservative). And of course we have the infamous IRS, though the rest of the world has to face the CIA.
An Ohio man says he bulldozed his $350,000 home to keep a bank from foreclosing on it.
The headlines will only get worse from here so brace your selves. “There is no way out of the current crisis – which has been decades in the making – without even more pain. But best to suffer the pain sharply than to drag it out,” writes David Galland of Casey Research. “There is no recovery. The only real economic question facing the world is: Will the economic bottom fall out all at once or will it be a chain reaction? The guillotine or death by a thousand cuts?” published Gerald Colente in his Trends Journal.
Resentment of the U.S. government and suspicions over the 9/11 attacks have surfaced in writings by the gunman who shot two Pentagon police officers. There are a lot of people who do not love the government and what we are seeing is probably just the tip of the iceberg in the United States, which is about to undergo dramatic changes that will alter the fabric of society there. And even state governments are priming the pumps against anti-federalism.
Wyoming has joined a growing list of states with self-declared exemptions from federal gun regulation of weapons made, bought and used inside state borders – but lawmakers in the Cowboy State have taken the issue one step further, adopting significant penalties for federal agents attempting to enforce Washington’s rules. According to a law signed into effect by Democratic Gov. Dave Freudenthal, any agent of the U.S. who “enforces or attempts to enforce” federal gun rules on a “personal firearm” in Wyoming faces a felony conviction and a penalty of up to two years in prison and up to $2,000 in fines.
“Trust in the American financial system and its leaders is dissipating rapidly. At some point in the not-too-distant future, the U.S. Treasury will attempt to sell debt and foreign buyers will boycott the auction. That will mark the point of no return. The unprecedented levels of debt propping up the American Empire cannot withstand higher interest rates. When it collapses under the weight of its massive debt, the dollar will crash and hyperinflation will result. People need to prepare for a future of turmoil and uncertainty,” concludes James Quinn.
Can what is happening in parts of Russia spread to the United States? The New York Times reported that in the Russian region of Dagestan, in the North Caucasus fifty-eight police officers were killed in attacks last year many of them while running errands or standing at their posts. Last month alone 13 officers were killed in bombings and gangland-style shootings. The gunmen — some combination of Islamist militants, alienated young people, ordinary criminals and foot soldiers in private armies — just melt back into the city, to be described in the next day’s news reports as “persons unknown.” The number of attacks doubled, to 201 last year from 100 in 2008.
One of the greatest mistakes we have made is to alienate ourselves from our neighbors, who sometimes live on the other side of the world. Globalization is a two edged sword. If we cannot realize ever that what is happening to one is happening to all (in a spiritual but eventually even in a physical sense) then we will have to face the consequences no matter what they may be. Prepare as well as possible for the worst for it is the worst side of humanity that is beginning to see the light of day.
Special Note: To highlight the ridiculousness of modern civilization American style a woman in jail for public intoxication was accused of assaulting a jailer by squirting breast milk at her. As she was changing into an inmate uniform, she squirted breast milk into the face of a female deputy who was with her. The woman now faces a felony charge of third degree assault on a police officer.