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Ominous, Or What?

Mike

Well-known member
When even the New York Times and CNN are admitting that the United States faces not only a double-dip recession but potentially a new great depression, any alarm bells that have not been rung should now be sounding loudly.

Following in the footsteps of the New York Times’ David Krugman, who in June wrote that the United States had entered a third depression similar to the Long Depression of the 19th century, CNN Money carried an article yesterday brazenly entitled, Is this finally the economic collapse?.

The piece, written by Keith R. McCullough, points out that the Fed’s announcement that it will start buying Treasury debt, is a “crossing the Rubicon” moment and “could lead the country to the brink of collapse”.

“Crossing the 90% debt/GDP threshold is the equivalent of crossing the proverbial Rubicon of economic growth. It’s a point from which it’s almost impossible to return,” states the article, adding that the market has not responded to quantitative easing so to engage in more of the same would be completely futile.

“With 40.8 million Americans on food stamps (record high) and 45% of the unemployed having been seeking employment for 27 weeks or more (record high), what’s left if (or when) QE2 doesn’t kick start GDP growth? Should we start begging for QE3? Should we cancel the bomb of the National Association of Realtors’ existing home sales report, scheduled for public release on August 24th? Or should we bite the bullet and accept that current economic policy dictates 0% returns-on-savings, even as Washington continues to lever-up our future to the point of economic collapse?” writes McCullough.

A d v e r t i s e m e n t
The Dow Jones slipped by 265 points yesterday as both the Bank of England and the Federal Reserve indicated that, as we predicted all along, the happy clappers who blithely talked of “robust recovery” were in fact completely wrong and now that the futile and transitory life-support machine of quantitative easing has been turned off, the picture looks almost as bad as when the crisis began in 2008.

Predictions on GDP growth seem to be shrinking by the day as Ben Bernanke greases the skids for QE2 – a fresh round of printing money out of thin air, destroying the long term value of the dollar which has already had 9 consecutive down weeks since June but ensuring the central bankers that run the United States continue to reap lucrative interest payments on the spiraling national debt. The U.S. government, via the taxpayer, paid out nearly $20 billion in interest on debt last month alone, as the Federal Reserve enjoys record profits, only 20 per cent of which is returned to the Treasury.

With Barack Obama’s political dynasty crashing and burning just as fast as hopes of an economic recovery combust, while rhetoric and tension with Iran reaches a crescendo, from different directions these three developments race towards an identical and ominous consequence – war.

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Just as the Great Depression was only really neutralized by the involvement of American forces in World War II in 1941, conflict on a similar scale could be the only tool with which to reverse the decline.

The elitists who run the planet would seemingly prefer to opt for a slow, suffocating, anemic decline that gradually lowers living standards and stealthily deflates the American dream without the victims being able to sufficiently rouse themselves from their fluoride-induced slumber to do anything about it. But with the pace of events seemingly now getting out of hand even for the custodians of the new world order, more drastic action may be called for.

With the agenda for world government frustratingly behind schedule, the more daring move would be to launch another catastrophic global war in a desperate effort to kill innumerable birds with one huge stone. The consequences would of course be horrific for mankind, but from the ashes of world war three, the globalists would be able to re-build the globe in their image.

The stakes have not been this high for some 70 years, and as Marc Faber advised recently, the best things to do to prepare for whatever is coming are to buy gold, move away from urban areas and purchase farmland, and be prepared to defend that land with force should civil unrest and food riots occur, as many are now forecasting.
 

Faster horses

Well-known member
And if that isn't bad enough, how about this:

TARP Billions Shipped Overseas Can't Halt Global Slowdown
Thursday, 12 Aug 2010 02:04 PM Article Font Size
By: David A. Patten

Economists and conservatives reacted sharply Thursday to reports that tens of billions in TARP bailout money flowed out of the United States and into the coffers of big banks in France, Germany, and other nations during the government rescue of the U.S. financial system.

That news came as the U.S. economic picture continued to worsen, with rising unemployment claims and a surge in U.S. homes lost to foreclosure.

CATO Institute budget analyst Tad DeHaven tells Newsmax: “The economy has become increasingly global, so it’s not shocking that TARP bailout money ended up at foreign financial institutions. Nonetheless, bailing out U.S. financial firms was bad enough — that foreign institutions also benefitted from the largesse just adds insult to injury.”

J.D. Foster, senior economics fellow at The Heritage Foundation, said: "The overwhelming force slowing the economy down now is a lack of confidence among American businesses and consumers. The primary reason for that lack of confidence is the policies out of Washington seem completely out of touch with that reality."

That reaction follows Thursday's report from the Congressional Oversight Panel report that, when the United States injected hundreds of billions of TARP money to stabilize the U.S. financial system in September 2008, it also bailed out more than 40 major institutions based overseas that had invested in collateralized debt obligations and mortgage-backed securities.

"There were no data about where this money was going," Elizabeth Warren, head of the panel investigating the bank bailout, explained in a conference call with reporters on Wednesday. "The American people have a right to know where the money went."

The TARP money flowed to overseas banks largely because of their investment in AIG, which received about $182 billion in federal bailout funds. Roughly half of the 87 banks and investment firms who would have lost billions without the AIG bailout were headquartered overseas, the Oversight Panel reports.
 
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