Financial Crisis

THE COMING FINANCIAL CRISIS - BIGGEST STORY IN THE WORLD

The coming financial crisis is the biggest story in the world. Everyone thinks inflation will come roaring back. Actually, it will someday because there is no gold backing the counterfeit paper money made by the Federal Reserve Bank (a fraudulent monopoly and a cartel) owned by the Anglo American financial power elite. The elite I'm talking about are the 1,100 or so families that own the 110 central banks of the world and their "Directed History" is the problem. You and I are just pawns in their game of one-world government and cradle to grave control which they have in mind for us. The elite have been printing money out of thin air at these central banks for 100's of years and getting richer and richer. Now, they are in mad dash to form a one world government. It is a collectivist conspiracy to make you and I their slaves (and if they get their way) depopulate the earth from 6.6 billion inhabitants down to 500,000 in a New Dark Ages. All this with the idea of making the worlds natural resources last longer in their new kingdom. THINK MAFIA!

First, according to Robert Prechter there will be a nasty credit deflation (I call it the Greater Depression - 3 times as big and long as the 1930's depression) to wring out most of the credit inflation the governments of the world have piled up over the last 100 years. The FED was formed in 1913, by the way. It was a brainchild of the elite and is totally owned by them. It is a private corporation and there has never been an audit of it. Since 1913 (a time when money was still 1 ounce gold coins) the dollar's value has dropped to 2 cents. The elite planned it all to grind the poor and now the middle class into submission to their nefarious and insidious global governance scheme.

This is exactly what the study called the Austrian School of Economics predicts, a financial crisis. Excess credit generation at the same time as fiat money printing (again with no gold backing) means everyone has been borrowing thinking they will pay back the loans with (worth less) inflated dollars. History has always shown credit inflations crash burn in a financial crisis. Every time! I have an article at my site about Austrian Economics. Of course, hardly any college, school, university or ECONOMIST subscribes to the Austrian way of thinking. They have been brainwashed into thinking government can micro-manage and stimulate the economic system to keep a perpetual boom going by a guy named Keynes back in the 1930's. Look up Keynesian economics. Then an economist by the name of Milton Friedman, a monetarist, convinced our leaders that one could raise and lower interest rates to control the economy. Both Keynesian and monetarism will be bad words in the future along with Alan Greenspan who's name will be mud for following the same bad ideas. With the recent quantitative easing (QE1! & QE2), and maybe a QE3, the FED is probably just about out of bullets - I mean money - to fire at the system. It is deflating too fast to print (and they don't print anymore. They just create electronic US bonds and T-Bills. The FED then buys them and credits the US government account. Anyway, just the drop in real estate since 2006 has meant 25 trillion dollars vaporized.

Next, if stocks crash (Robert Prechter says the Dow will go to 400 and it is 12,500 today) poof more trillions of money gone. Then, if and when interest rates rise up bond prices crash - poof go the last of peoples 401K's and other retirement plans. Prechter says assets will lose 90% or more of their value by 2016 to 2018. He also says the Greater Depression started in 2000 with the Dot Com stock mania and bust!!! We are only half way through this economic mess and the worst is yet to come with 50% unemployment and food riots etc.

"A deflationary crash is characterized in part by a persistent, sustained, deep general decline in peoples' desire and ability to lend and borrow. A depression is characterized in part by a persistent, sustained, deep, general decline in production. Since a decline in production reduces debtors' means to repay and service debt, a depression supports deflation. Since a decline in credit reduces new investment in economic activity, deflation supports depression. Because both credit and production support prices for investment assets, their prices fall in a deflationary depression. As asset prices fall, people lose wealth, which reduces their ability to offer credit, service debt and support production. The mix of forces is self-reinforcing." That's what Robert Prechter's book, "CONQUER THE CRASH" (2002) says. The multiplier effect in economics says high unemployment means those out of work can't buy things. Businesses see this right away in the computer generated reports and lay off workers. Next year those people don't buy as much. Employers lay off more. It snowballs down hill unless corporation heads get optimistic again. How can they with ObamaCare’s unknown costs and Obama using tax the rich class warfare to beat them up. They just sit on their hands and don't hire. They mainstream media was falling all over themselves about the 200,000 jobs added in December which lowered the unemployment rate to 8.5 percent from 8.7 percent.

Ha! Those were most likely seasonal (Christmas) jobs and not permanent. Everything is hidden behind smokescreens of subterfuge by the financial power elite!

Cash is king - and don't think the financial power elite aren’t planning on buying all these assets back at 10 cents on the dollar. Your house that was $400,000 at the peak times X 10 per cent equals $40,000 (or less). Probably the best way to even is to get rich so short the stock and bond markets and go long the dollar right here in December of 2011/ January 2012 and get back in to gold mine stocks at lower price levels in a couple of years. There are short the market ETFs (Exchange Traded Funds) which trade as stocks and could go way up in price. There are even ETFs for gold, silver and currencies.

First store food and water. A mob mentality develops and goes ballistic in 4 days if a people do not have water. Grow a garden. Start a business like car repair that people will need as they keep there automobiles longer and longer. Get out of debt. Sell your house and rent. Rents will be dropping. I sold houses for $20,000 in Livermore, California in 1968, so prices of homes could go that low or lower in this financial crisis.

Lobby for a honest private gold backed money. Only gold is not someone else's debt. Otherwise we get runaway inflation 2020 or so??? Plan on it and get gold when prices drop into the $700 per ounce range in the next couple years. Solid large gold mines will be mining money, won't they? In the 1930's gold mine stocks ramped way up and paid dividends equal to the price of their shares at the start of the depression. Buy at much lower levels than those of today since they have had a pretty good run. Gold has gone up to a parabolic price peak of $1,912 per ounce and is dropping fast right now. Wait a year or two for gold to go back near $650 per ounce.

Follow the truth out there in the "Internet Reformation." The Reformation was a time 500 years ago when Gutenberg invented the printing press. That allowed the common man to afford Bibles and other books in a language other than Greek and Latin - which the Roman Catholic Church had been using to lie to and keep people in the dark.

Lastly, stand up for the US Constitution and Bill of Rights. That is the only protection from totalitarian tyrants and socialist statists.

PS World War Three started 9/11/201. Go to my other websites.

http://www.deflationeconomy.com

http://www.one-world-government.org

Copyright 2012 by Delwyn Lounsbury - THE DEFLATION GURU Use of this article allowed with attribution back to: http://www.deflationeconomy.com