Time is fast running out. Financial collapse once thought impossible now is looming. When the world’s recession began, countries with the heaviest debt loads experienced the unforgiving brutality of reverse leverage. Now that payback time has arrived, not just individuals and corporations, but nations are threatened with default. Meaning there is a world of deadbeats who will never be able to pay back their debts and investors are just starting to realize this.
“April was a wild month. Not only were there massive upheavals in the physical earth: earthquakes, volcanoes and tornadoes; but people: countries and institutions this month have been moving into a fresh wave of unease and flux. Whether it is the sovereign debt crisis in the EU, Greeks protesting in the streets, Tea Parties and bank closures in the USA, or the SEC versus Goldman Sachs: people are upset, and the free world is struggling through uncomfortable revelations and change. People everywhere are awaking from the daze of the past decade to realize that most are poorer than they thought. Many are just plain broke,” writes Danielle Park.
Thursday was a wild day and today Friday things are not looking so hot in Asia or in Europe. Thursday the Dow Jones industrials at one point lost 1,000 points, nearly a tenth of their value, with 60 percent of the drop happening in less than half an hour. It was the biggest drop ever during a trading day. That half hour sent a lot of shivers down a lot of peoples’ spines. "Today … caused me to fall out of my chair at one point. It felt like we lost control," said Jack Ablin, chief investment officer at Harris Private Bank in Chicago.
On Wednesday President Carolos Papoulias said that Greece was standing on the "edge of the abyss." The situation is turning nasty and things are looking darker all of a sudden to the masses that have been euphoric in green shoot la-la land. The Euro is dropping like a stone and now markets are panicking and remember Wall Street was already down by 400 points before things went crazy possibly due to some mistake.
New York City Mayor Michael Bloomberg on Thursday unveiled his revised $63 billion budget plan for fiscal 2011, which includes shedding 11,000 public employees through layoffs and attrition.
What is happening in Greece and elsewhere is but a footnote, the main event is about to unfold. Global financial crisis part II has begun and we are going to see things blowing up all over the world right before our very collective eyes. This is the final assault and death agony of capitalism and on what little freedoms are left though it could be complete chaos that undermines the best plans of the elite class.
Where do you think California’s 30% drop in state revenues will lead? The governor did not base his budget for the present fiscal year on a 30% plunge in revenue.
Investors are looking around and quivering in their boots. 2010 will go down as a final chapter before all hell breaks loose around the world. “A great drama is unfolding. What we are seeing is the slow, steady decline of the greatest fraud ever perpetrated on the people of the world. The fraud I am referring to is fiat money. This is the so?called "money" created by the central banks. Fiat (non?intrinsic) money can be created at will by a central bank via a computer. You work all your life to make a total of $900,000. The Fed, with no work or sweat on its part, can create a billion or 10 billion fiat dollars at will. Is that logical or moral? It allows politicians to spend whatever they want, and the bills are paid for in fiat money. The result is that many nations have spent far more than they ever should have, and oceans of fiat money have swept across the planet,” writes Richard Russell.
Latvia laid off one in 3 of its government workers and whoever was lucky enough to keep their jobs saw their pay cut by 25%. These kinds of cuts are headed for California and then New York and then New Jersey and Ohio and then we will see where we are.
The entire edifice of trust and awe that the powers-that-be has inculcated regarding the monetary system is eroding. People have seen for themselves that the system is not a fair one and is in fact manipulated. Faith and trust is increasingly rare commodity these days. Recent polls show 4 out of 5 people do not trust Washington, and they trust Wall Street the same for these days it is really hard to separate the politicians from the bankers. “People aren’t idiots,” writes the Daily Bell. “They have seen the trillions disbursed to the banking community while their own lives are correspondingly reduced and even ruined. They wonder why their pensions, their jobs, their lives have to be so dramatically constrained while the elites spend trillions to prop up a system that doesn’t work.”
One out of every 12 city workers will be let go in the city of Fresno California. Those in the know expect this to happen in hundreds of cities around the US.
Dictatorship is already upon us as elected representatives defy the will of the people they represent and work against the public interest. Confusion is raining down hard today especially in England (Election Day) where they have not the slightest idea what to do. The entire sociopolitical construct of the West is in jeopardy as the first world is like Humpty Dumpty falling off a very great and rich dry wall made in China.
Chris Laird writes, “We have a looming war threat in the Mid East as well, which if it is not avoided could lead to World War 3. Israel stated again unofficially that the West has another two months before they act unilaterally on Iran. Obama has pretty much squelched the Israeli efforts to contain Iran, and has essentially halted US military aid purchases for Israel, and this has now been a year of that much to their chagrin. Does not mean, however, that they won’t act alone. Since they are being pushed into a corner, get ready for a real show over there.”