- by Tate Ulsaker
The crash of 2008 has given Wall Street its worst year since the Great Depression. As a result, negative growth has been projected for the world economy in 2009, an event not seen since the 1950’s. According to Lewis Alexander, the chief economist at Citigroup, “Since their peak over the summer, global equity markets have lost about $25 trillion in value. This represents about 40 per cent of global GDP.”
The losses are widely predicted to grow during 2009 as hyperinflation and rebounding commodity prices come into play alongside further cleansing of toxic debts. The Wall Street Casino might even collapse global banking structures if the 500+ trillion dollars in derivatives begin to unpredictably unwind.
Treasury Secretary Henry Paulson, a former CEO of Goldman Sachs, admitted on December 18 to a sold out crowd in New York that the initial $700 billion rescue legislation was intended to support companies solely in the financial sector. Current projections for the bailout are 8.5 trillion US dollars, or 60% of United States GDP, much of it hidden from public view and secretly given to unknown entities, with Goldman Sachs a likely priority for Mr. Paulson.
Paulson threatens martial law on congress if the bankers don’t get trillions… is that extortion?
In a popular video going viral on the internet, Congressman Brad Sherman told Americans, "The only way they can pass this bill is by creating and sustaining a panic atmosphere. That atmosphere is not justified. Many of us were told in private conversations that if we voted against this bill on Monday that the sky would fall, the market would drop two or three thousand points the first day, another couple of thousand the second day, and a few members were even told that there would be martial law in America if we voted no.” (emphasis mine – ed.)
According to Senator James Inhofe of Oklahoma, Henry Paulson was behind the threat of martial law, an act unprecedented in US history. These coerced bailouts that are given out in secret, without checks and balances might be called National Socialism or Soviet Corporatism, but the one thing they cannot be called is free market Capitalism. In free market capitalism, we let failure go bankrupt, whether large or small.
Who are these bankers and financiers that cause the economy to crash as they give themselves windfall profits while pretending to be our saviors? The media tells us that elite bankers like Ben Bernanke and Henry Paulson are fighting for our interests and they just need more time or more money or, in some cases the media will tell us that that these elite bankers are acting like incompetent fools and they don’t know what they are doing.
If we are able to look beyond the media hype, past the personality disorders and into the core of the money system itself, we see the truth. Follow the money trails, not the small ones but the ultra giant tsunami of money flows. To understand this, we will first look at the fundamentals of the money system and how it works. If we dare to stare, we will see a highly competent criminal system that is deliberately crashing the value of real assets and they are preparing to take control over those assets as their new owners. The greatest crime in the history of the world happening right now because the scale of theft is far greater than what was done in the last great wealth transfer of 1929.
Prepare to be shocked.
Here are a few facts on Federal Reserve System: It is not a government organization, but is a private entity owned by international bankers and financiers. It has never been taxed. It has never been independently audited. It has been functioning illegally for almost 100-years according to the guidelines of the US Constitution that strictly prohibit any entity other than Congress from minting the nation’s currency. In the truest essence, the Federal Reserve is an illegal counterfeiting operation. It was voted into existence by just a few Congressmen, during the last hours December 23, 1913 when most Congressmen had already left for the holidays. Shares of ownership in the Federal Reserve System cannot be purchased on the open market but are privately owned and passed down through the generations by many of the old financial names in Europe dating back to ancient banking times. These Anglo-Saxon banking families are in the business of transferring wealth to themselves through their fraudulent system of usury. They have an extremely long view on this process as shown by their consolidation and ownership in media, industry, government and non-government entities. As one prominent European banker said long ago, “Let me issue and control a nation’s money and I care not who writes its laws.” - Mayer Rothschild. The nature of the Federal Reserve System is well documented by G. Edward Griffin for his book, “The Creature from Jekyll Island”.
To easily learn more, please google search words like “Federal Reserve” and “Fiat currency” and “debt-based monetary system”, etc… to find thousands of credible resources in every type of media at no cost instantly at your fingertips for as long as the free internet is available in present form. Use your own discernment regarding the sources of this information and double check everything. In the end, you will come to understand that these people own more than simply the money system. They also control a large share of everything that uses their money system.
Unfortunately, most of the world now functions according to the same type of system. They are able to do this because we let them. We willingly give them power over us because we have pledged our assets and goals and children’s future into their fraudulent money system and we falsely expect them to represent our interests. Instead, they use our assets against us and against our countrymen and against most of the world to varying degrees.
"If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered." Founding Father of the United States, Thomas Jefferson wrote that in 1802 to then Secretary of the Treasury, Albert Gallatin.
Let’s examine what happens when you go to a bank and take out a loan against your home. First, the borrower goes to the bank and puts his home up as collateral in exchange for the bank loan. Once the loan is approved, the banker simply credits the account of the borrower with principal made out of thin air. Money creation is literally as simple as counterfeiting money from your Xerox machine. Bankers just hit “Print” and money is brought into existence. From that point, the bank asks the borrower to repay the principle of the loan PLUS also he must pay interest on the loan. The only problem is that the interest was not created and so it does not exist in the market. The only way that borrowers can repay interest is when debts are increased or some borrowers go bankrupt or both. Now we see the essence of counterfeiting and usury within the same process of money creation.
Every dollar printed comes into existence only when a debt is taken by someone or by a business or a governmental entity. If all dollar debts were repaid, there would be no dollars in existence. Total money supply and total debts are intimately intertwined and run the exact same curve. They expand because that is how the system functions. And then they crash because that is how the system functions. End of story.
Additional tools for making the crash bigger, faster, and more under Federal Reserve control include Fractional Reserve Banking and Derivatives.
Fractional reserve banking is used to accelerate money creation and to bring more vulnerability in times of a bank run, ultimately benefiting the bankers with deflationary bargains at the time of collapse. As defined by Wikipedia: “Fractional-reserve banking is the banking practice in which banks keep only a fraction of their deposits in reserve (as cash and other liquid assets) with the choice of lending out the remainder, while maintaining the simultaneous obligation to redeem all deposits immediately upon demand.”
Derivatives undermine confidence in markets by generating wild price swings due to paper multiples that are now far in excess of many original underlying assets throughout the market. The Wall Street Journal reported that “Derivatives grew into a massive bubble, from about $100 trillion to $516 trillion by 2007.” Who knows where derivatives are now in 2009?
Nothing destroys a productive society faster than a debauched monetary system. Our current money system is based on counterfeit wealth generation and usury and derivative pricing in investment markets resulting in crash, which entails wealth transfers that benefit schemers and hurt honest hard working society. Such a system is clearly identifiable now and the crime is obviously taking place and such a crime has no place in our world. Look at the personalities that gravitate towards these systems! They bring nothing good to the world, but only wars, slavery, corruption and death. They don’t have the heart of a producer or a saver. Rather, they have the heart of a parasite that enjoys killing its host.
These bankers and money managers didn’t produce a bushel of wheat or an ounce of gold or a single item for sale at the market, and yet they have gained obscene control over the levers of global industry, government and currency. Now, during this 2008 crash event, they are again positioning for another massive transfer of wealth. We don’t have to participate in our own monetary slavery. Rather, we can get out of their system and benefit greatly while decreasing their control and ability to wage economic war against us, and against the world.
I woke up to the evil nature of this system in the year 2000. Since that time, I have been learning and warning others about the crash that we see unfolding right now. Whereas, a few years ago people would tend to laugh it off, at this time people are not laughing. Most people today are either listening or engaging in active dialogue because they feel that something is seriously wrong with the foundations of money and they sense that the money system is one of the fundamental reasons for the dire situation in the world today on many levels, not only related to this crash.
I wish to clearly explain the problem of debt-money in this article so that you can find your own personal solution and benefit greatly during the process of reducing your exposure to this system and so you can sleep more peacefully at night knowing that your assets are safer and your children have a better chance to achieve their dreams.
To make my point about the nature of this crash, I need only one graph. The most illustrative graph showing the monetary system driven crash tendencies of both 1929 and 2008 is the “Total Debts to Total Gross Domestic Product (GDP)” graph.
Chart taken from - http://www.urbandigs.com/total-credit-debt-percentage-gdp.jpg
There are a number of ways to count debt and GDP. So long as the measurements are constant through the whole period, the graphs always look the same. Let this graph above become very clear in your mind and you might even test it in another country of interest. As you can see, the graph covers approximately 100-years and shows the point of debt-cleansing crash on both ends. The numbers follow along a giant “U” shaped curve that peaks just before the crash of 1929 when the high debt to GDP was corrected sharply down. Then the debts began compounding again until they rose even higher to historically unprecedented levels at the right side of the “U”.
When the market builds up prior to the crash, bankers are taking your interest payments and expanding debts ever more because ever more principle is required to repay interest that keeps compounding on aggregate new debts. Money supply increases. Then, after the tipping point is reached, the market crashes. At this time, the bankers are using liquidity created by themselves in the form of profits and bailout money and additional debts and anything they can find to buy up artificially depressed real assets. They always win because the casino always favors the house.
What can you do?
At this late hour, a huge crash is inevitable. It is like a train going 300 kilometers per hour down a mountainside. Meanwhile, as the train begins to lose control, the conductors are putting more coal into the fire and they are cutting the break wires and they are loosening the wheels from the axels in an effort to guarantee a massive and profitable crash as soon as possible. Many of us are so busy calling them incompetent and we don’t realize that these managers and the owners of the train want it to crash. The conductors are people like Paulson and Bernanke. Their job is to keep us artificially confident in their system, calmly sitting in their train while they crash our assets into their ownership.
But the world is backing out of the dollar based system, and you should too.
Much of the world has been unwinding dollar-based debt as evidenced by this current temporary rise in the demand for the dollar. The dollar index is not rising on fundamentals of dollar value but simply relative value compared to the other devaluing currencies within the fiat currency basket. Think of the dollar index as a comparative between the world’s largest parachutists jumping out of an airplane. All of them are floating downwards, but some are going downwards faster than others giving the illusion that some are rising while others are falling. Make no mistake, the dollar is worth about 2% of what it was worth 100-years ago. The trend is uni-directional towards eventual zero value. This is true of all fiat currency systems without exception among thousands of examples.
Very soon, due to pressures too numerous to name here, the dollar is about to reach runaway inflation (devaluation) on levels not seen in the history of the US. In an article called “Ten Major Threats Facing the U.S. Dollar in 2009”, By Eric_deCarbonnel on January 02, 2009, the summary concludes “The downside of being the world's reserve is that everyone is sitting on a great pile of your money, which they could decide to dump back into circulation.”
At this moment, increasingly more people are getting out of their dollar-based investments and many of them haven’t yet decided where to put their dollars. Please do not find the false comforts of another debt-based currency. Remember that global economic systems today are based on fiat currency systems like what the Federal Reserve System represents and this is the time of asset transfer for many of those systems as well.
Many smart people will trade in their devaluing dollars for precious metals. Gold and silver have always done well in times of currency inflation. Others will go into commodities or niche business sectors where growth is possible in difficult times. Your strategy will depend upon your priorities and opportunities. You can make your own strategy more easily if you have a clear and factual understanding of debt-based currency and this is what I have tried to give you here in this article. Was I successful? Do you have questions or comments? Don’t hesitate to write at InfoHive@gmail.com
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Tate Ulsaker was born in India in 1965. He received his BA in Business from the University of Central Florida. He currently owns a 12-year old market research company in Russia with a staff of 25 and a client base of more than 350 large multinational clients. Mr. Ulsaker would like to thank his mentor, Dr. Nazeem Seyed-Mohamed, Senior Lecturer at Uppsala University's Department of Business Studies for his success.
Wall St closes out worst year since Depression - http://uk.reuters.com/article/governmentFilingsNews/idUKN3135558320081231?pageNumber=2&virtualBrandChannel=0
Diagnosing depression, - http://www.economist.com/finance/displaystory.cfm?story_id=12852043
Financial tsunami wipes out banks and $25 trillion off global shares - http://www.thenational.ae/article/20081221/BUSINESS/563432405/-1/NEWS
World stocks end up after historic losses -http://uk.reuters.com/article/governmentFilingsNews/idUKN3160376120081231
Economy to shrink 0.4% next year: IIF - http://www.taipeitimes.com/News/worldbiz/archives/2008/12/20/2003431569
Where'd the bailout money go? Shhhh, it's a secret - http://news.yahoo.com/s/ap/20081222/ap_on_bi_ge/meltdown_secrets
Paulson has no regrets as he readies to leave office - http://www.marketwatch.com/news/story/paulson-isnt-looking-back-he/story.aspx?guid=%7B432C02BE-96EF-4D23-ADC6-EE3EC21BB58B%7D&dist=msr_1
Rep. Brad Sherman says Congress threatened with Martial Law if bill is not passed - http://www.youtube.com/watch?v=HaG9d_4zij8
Derivatives the new 'ticking bomb' - http://www.marketwatch.com/news/story/derivatives-new-ticking-time-bomb/story.aspx?guid=%7bB9E54A5D-4796-4D0D-AC9E-D9124B59D436%7d
Ten Major Threats Facing the U.S. Dollar in 2009 - http://marketoracle.co.uk/Article8031.html
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