Feb 07

Landmark study links pesticides to high depression rates (Natural News, Feb 6, 2015):

Globally, one person dies by suicide roughly every 40 seconds. Around the world, over one million people commit suicide each year — an increase of 60 percent over the last four and a half decades. Incredibly, farmers have one of the highest rates of self-inflicted death.

Newsweek reports that suicide for farmers in the U.S. is about twice the average of the general population. However, this isn’t just a problem in America; it’s an international crisis.

“India has had more than 270,000 farmer suicides since 1995. In France, a farmer dies by suicide every two days. In China, farmers are killing themselves to protest the government’s seizing of their land for urbanization. In Ireland, the number of suicides jumped following an unusually wet winter in 2012 that resulted in trouble growing hay for animal feed. In the U.K., the farmer suicide rate went up by 10 times during the outbreak of foot-and-mouth disease in 2001, when the government required farmers to slaughter their animals. And in Australia, the rate is at an all-time high following two years of drought.” Continue reading »

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Dec 26

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Nov 03

Antidepressant drugs are murdering babies before they’re even born: SSRIs cause birth defects, miscarriages and complications (Natural News, Nov 1, 2012):

Big Pharma wants pregnant women to take prescription drugs, vaccine shots and even chemotherapy. It’s the latest insanity from an industry that kills more Americans ever year than died in the entire Vietnam War. And the latest science reveals that antidepressant use during pregnancy is causing babies to be born with physical defects — or sometimes not born at all because they’re miscarried.

This disturbing new science published in the journal Human Reproduction was authored by Dr. Adam Urato, obstetrician and chairman of the department of obstetrics and gynecology at MetroWest Medical Center in Framingham, Mass., and Dr. Alice Domar, a psychologist and assistant professor at Harvard Medical School.

The study shows drastically increased rates of birth defects in children who are exposed to SSRI drugs (antidepressants) while in the womb. The risk of miscarriages also skyrockets with antidepressant drug use during pregnancy.

Study author Dr. Urato is also warning that at least 40 studies now link SSRI use during pregnancy with pre-term births.

The abstract of the study lays out the findings in clear language:

Antidepressant use during pregnancy is associated with increased risks of miscarriage, birth defects, preterm birth, newborn behavioral syndrome, persistent pulmonary hypertension of the newborn and possible longer term neurobehavioral effects.

As The Telegraph reports: Continue reading »

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Jul 13


YouTube Added: 09.07.2012

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Jun 07

This is the ‘Greatest Depression’.

Dr. Paul Craig Roberts: Collapse At Hand – Gold And Silver Price Manipulation

Collapse: Record Number Of US Households On Foodstamps – 46,405,204 People At Or Below Poverty Level And Thus Eligible For Foodstamps, A 79K Increase In The Month

Peter Schiff Exposes And Destroys Fed Chairman Ben Bernanke (Video) … ‘The Collapse Is Coming Soon’

‘THE END GAME’: ‘It Is The Big Reset’ – ’2012 And 2013 Will Usher In The End’ – The Scariest Presentation Ever?

Collapse: Foreclosures Made Up 26 Percent Of U.S. Home Sales In First Quarter Of 2012

Collapse: 100 Million Americans Don’t Have A Job!

1 In 3 Americans (100 Million People) Living Either In Poverty Or Just Above It

Flashback:

Jan 2011: Hiding The Greatest Depression: How The US Government Does It:

The real US unemployment rate is not 9.8% but between 25% and 30%. That is a depression level of job losses …

Aug 2010: Welcome to the Recovery (New York Times, by Timothy Geithner)


The US Labor Market Is In A Full-Blown Depression (ZeroHedge, June 6, 2012):

Now that stocks are back to reflecting nothing more than expectations of how many times the Chairsatan dilutes the existing monetary base in a carbon copy replica of not only 2011 but also 2010… and 2009 (because contrary to what purists may believe, the only way to inflate away unsustainable debt in a growth-free economy is by destroying the currency), and manic pattern chasers have crawled out of their holes proclaiming the death of the bear market after a two day bounce, what is happening in the actual economy, no longer reflected by the market, has once again been pulled back to the backburner. Which is sad, because while ever fewer people reap the benefits of artificial, centrally-planned S&P rallies, the rest of the population suffers, and what is worse: hope for a quiet, middle-class life is now an endangered species. Nowhere is this more evident than in the following list from David Rosenberg which summarizes how, quietly, the US labor force slipped back into a full-blown depression.

From David Rosenberg:

One Sick Labor Market

There were so many disturbing elements to the May jobs data that we’re not sure we can do justice to the litany of disappointments (with some help from our friends at the Investor’s Business Daily): Continue reading »

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Apr 24

The US Has Finally Done It: Mexican Immigrants Become Emigrants (ZeroHedge, April 24, 2012):

You know its bad when…the net flow of Mexicans into the US has fallen so much that there is a high probability that it is now in reverse ending around forty years of inward migration. The Pew Hispanic Center notes that the standstill – after more than 12 million current immigrants have entered the US – more than half of whom are illegal – appears to be the result of many factors including a weakened US job and construction market, tougher border enforcement, a rise in deportations, growing dangers associated with border crossing, a long-term decline in Mexico’s birth rate, and changing (read perhaps more opportunistic) economic conditions in Mexico (especially if you work at WalMex). This sharp downward trend in net migration has led to the first significant decrease in at least two decades in the number of unauthorized Mexican immigrants living in the U.S. – to 6.1 million in 2011, down from a peak of nearly 7 million in 2007. In the five years from 2005 to 2010, about 1.4m Mexicans immigrated to the US – exactly the same number of Mexican immigrants and their US-born children who quit the US and moved back or were deported to Mexico. By contrast, in the previous five years to 2000 some 3m Mexicans came to the US and fewer than 700,000 left it. It will be interesting to see the spin that the Obama and Romney camps put on this hot-button topic as the ‘Dream Act’ turns into a nightmare and hardline anti-illegal immigration stances become, well, less relevant as Mexicans become Mexican’ts.

Among the report’s key findings: Continue reading »

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Apr 24

For first time since Depression, more Mexicans leave U.S. than ente (Washington Post, April 24, 2012):

A four-decade tidal wave of Mexican immigration to the United States has receded, causing a historic shift in migration patterns as more Mexicans appear to be leaving the United States for Mexico than the other way around, according to a report from the Pew Hispanic Center.

It looks to be the first reversal in the trend since the Depression, and experts say that a declining Mexican birthrate and other factors may make it permanent.

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Apr 05

You Ain’t Seen Nothing Yet – Part Two (ZeroHedge, April 3, 2012)

See also:

You Ain’t Seen Nothing Yet – Part One (ZeroHedge, April 2, 2012)

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Mar 13


YouTube Added: 12.01.2012

Related info:

Dr. Mary Newport: Coconut Oil May Stop And Reverse Alzheimers

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Mar 07

Spain’s sovereign thunderclap and the end of Merkel’s Europe (Telegraph, Mar 5, 2012):

The Spanish rebellion has begun, sooner and more dramatically than I expected.

As many readers will already have seen, Premier Mariano Rajoy has refused point blank to comply with the austerity demands of the European Commission and the European Council (hijacked by Merkozy).

Taking what he called a “sovereign decision”, he simply announced that he intends to ignore the EU deficit target of 4.4pc of GDP for this year, setting his own target of 5.8pc instead (down from 8.5pc in 2011).

In the twenty years or so that I have been following EU affairs closely, I cannot remember such a bold and open act of defiance by any state. Usually such matters are fudged. Countries stretch the line, but do not actually cross it.

Continue reading »

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Feb 27

Antidepressants Proven to be Useless, Pushed on Public Anyway (Natural Society, Feb. 24, 2012)

 

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Dec 05

See also:

And Now: Lithium – The Next Fluoride – To Be Added To Your Drinking Water For Mental Health (Mind-Control)

For the many ‘benefits’ of fluoride see the links below.

Some history: Fluoride: A Chronological History


Psychiatrist calls for lithium to be added to water (Irish Times, December 2, 2011):

A consultant psychiatrist last night called on Government to add lithium salts to the public water supply in a bid to lower the suicide rate and depression among the general population.

At a mental health forum on “Depression in Rural Ireland” in Ennistymon, Co Clare, Dr Moosajee Bhamjee said that “there is growing scientific evidence that adding trace amounts of the drug lithium to a water supply can lower rates of suicide and depression”.

Lithium is used by doctors as a mood stabiliser in the treatment for depression.

Dr Bhamjee said: “A recent article in the British Journal of Psychiatry found the beneficial uses of lithium when it was added to the water supply in parts of Texas.”

He said the Government should consider a pilot project for a town in Ireland where lithium salts could be added to the water in very small doses and examine the results.” He said there was already strong precedent for governments intervening in the operation of public water supply for health benefits by adding fluoride.

Continue reading »

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Oct 02

See also:

Independent Scienctist Leuren Moret: New World Order – Depopulation Agenda – Genocide (Video)


THEY WANT US DEAD! – Red Level Alert America (The Intel Hub, Sep. 30, 2011):

While we are all focusing on the coming financial collapse, as bad as that is something much more sinister is in the works.

It’s very subtle if you are not paying attention.  But, to the aware, it’s blatant, insidious, and just as horrific as Hitler’s Germany.

There is a small group of the world’s banking elite who have worked for a few hundred years with ingenious precision and unlimited money, to corral, coerce, and conquer every country of value on earth.

For people who are normal and not rabidly greedy, it’s hard to fathom the idea of anyone trying to get control of the whole world, and taking a chunk of every measure of value traded between its people.  What’s even harder to grasp is that they will stop at nothing to do it.  And I mean nothing! Look around you!

Continue reading »

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Aug 21

The Great Collapse Has Officially Begun (ZeroHedge, Aug 20, 2011):

I’ve been warning of this for well over two years. My primary warnings were:

  • 1)   That 2008 was just a warm-up
  • 2)   That the REAL Crisis had yet to unfold
  • 3)   That the REAL Crisis would make 2008 look like a picnic

Well, the period I’ve been warning of is now here.  What’s happening right now is not just a market crash, bear market, deflation, or any other item related to just one asset class.

Instead, this is a collapse of the entire US monetary and political system and the mentality of spending one’s way to wealth.

For 80+ years, the US has operated under a crony capitalist system in which politicians dole out political and economic favors to the chosen few whose bribes/donations funded their campaigns.

Continue reading »

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Aug 13

Recessionspotting: “You Are Here” (ZeroHedge, Aug 13, 2011):

Now that even the likes of Joe LaSagna are starting to throw out the R-word about as casually as they did a 4% 2011 GDP target as recently as 2 months ago, it is becoming increasingly clear that the market is pricing in the fact that post a few more historical BEA revisions, the prior two real GDP reads will end up having been, shockingly enough, negative, i.e., your garden variety recession. So where does that put us on a market performance continuum, for those wishing to extrapolate how much further stocks and, yes, bonds (because credit is and always has been a far better indicator of objective market reality) have to drop before we hit the proverbial floor. Well, according to Morgan Stanley, quite a bit lower: “Despite the recent decline in risk assets, we do not believe that recession is in the price. Exhibits 3 and 4 show the typical declines in developed market risk assets in recession. Compared to corrections in past recessions, S&P prices and corporate credit spreads would have more to go, though spreads are starting from a higher level than typically precedes recessions.” What is startling is that should central planners lose all control (and with central bank intervention upon intervention, one can argue that should all artificial props be removed, the market really ought to plunge in a Great Depression-style tailspin), the drop from the April 29 peak to the bottom will be roughly 4 times greater… which means the S&P would hit the proverbial “S&P 400” which is the long-term target of the likes of some more popular skeptics such as Albert Edwards and Russell Napier. As for credit: watch out below.

Equities:

and Credit:

And completing the pain, again from Morgan Stanley:

Continue reading »

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Jul 15

Now there is NOTHING left and all those taxpayer looting bailouts and the useless stimulus package made things much worse.

This is the Greatest Depression and the greatest financial collapse in world history is near.

The No.1 Trend Forecaster Gerald Celente: Collapse – It’s Coming! Are You Ready? (06/14/2011)



YouTube Added: 21.01.2008

When a country embarks on deficit financing (Obamanomics) and inflationism (Quantitative easing) you wipe out the middle class and wealth is transferred from the middle class and the poor to the rich.
– Ron Paul

“Deficits mean future tax increases, pure and simple. Deficit spending should be viewed as a tax on future generations, and politicians who create deficits should be exposed as tax hikers.”
– Ron Paul

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Jul 08

Mike Krieger Explains Why QE 3 Will Merely Keep The Lights On (ZeroHedge, July 8, 2011):

From Mike Krieger of KAM LP

“Whenever the economic life of a nation becomes pre¬carious, the central government is forced to assume additional responsibilities for the general welfare.  It must work out elaborate plans for dealing with a criti-cal situation; it must impose ever greater restrictions upon the activities of its subjects; and if, as is very likely, worsening economic conditions result in polit¬ical unrest, or open rebellion, the central government must intervene to preserve public order and its own authority. More and more power is thus concentrated in the hands of the executives and their bureaucratic managers. But the nature of power is such that even those who have not sought it, but have had it forced upon them, tend to acquire a taste for more. “Lead us not into temptation,” we pray — and with good reason; for when human beings are tempted too enticingly or too long, they generally yield. A democratic constitu¬tion is a device for preventing the local rulers from yielding to those particularly dangerous temptations that arise when too much power is concentrated in too few hands.
– Aldus Huxley, Brave New World Revisited

“A nation can survive its fools, and even the ambitious. But it cannot survive treason from within. An enemy at the gates is less formidable, for he is known and carries his banner openly. But the traitor moves amongst those within the gate freely, his sly whispers rustling through all the alleys, heard in the very halls of government itself. …He rots the soul of a nation, he works secretly and unknown in the night to undermine the pillars of the city, he infects the body politic so that it can no longer resist.
– Marcus Tullius Cicero (106 BC—43 BC)

QE3:  It Will Merely Keep the Lights On

This is a piece that has been festering in my head for quite some time now and I was waiting for the right moment to pen it.  That time is now.  In some ways The Bernank made a huge mistake by not launching QE3 right away when he had the chance.  Now don’t get me wrong, I am not in favor of any of this nonsense and I think The Bernank’s profession needs to go the way of the dodo bird, but I mean from the perspective of a Central Banker I think he made a big mistake by taking a breather from at least the printing and manipulations that they admit to.  The reason I say this is because up until the last month or so The Fed had been essentially telling the American sheeple that all was under control and that since The Bernank had studied the Great Depression and Japan he could save us from all the mistakes that were made back in those less enlightened times.  The Fed was saying that they could pull off the equivalent of preventing a serious hangover for someone that chugged an entire bottle of tequila.  They basically claimed to have found a way to break the laws of the universe.

Unfortunately for them, the cruel forces of reality have intervened and proven that they actually did not figure out how to change the immutable laws of physics.  This truth became abundantly clear at The Bernank’s most recent press conference (which if he is smart will be his last) where it became all too clear that even he comprehends on some level that his theories and in fact his entire life has been a complete waste of time and energy.  That would be ok if he were confined to some University lecture hall; however, his lunacy was unleashed on the entire planet and we will all suffer the dire consequences of it for many years to come.  He has basically shoved another bottle of tequila down the throat of the already passed out drunkard and now he not just unconscious but is DYING.

Continue reading »

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Jun 14

See also:

The No.1 Trend Forecaster Gerald Celente’s Dire Warning For The World

Urban Danger (Free Documentary) – Congressman Warns: ‘Those Who Can, Should Move Their Families Out of the City’


If Nostradamus were alive today, he’d have a hard time keeping up with Gerald Celente.
– New York Post

When CNN wants to know about the Top Trends, we ask Gerald Celente.
– CNN Headline News

There’s not a better trend forecaster than Gerald Celente. The man knows what he’s talking about.
– CNBC

Those who take their predictions seriously … consider the Trends Research Institute.
– The Wall Street Journal

A network of 25 experts whose range of specialties would rival many university faculties.
– The Economist

KINGSTON, NY — Everything is not all right. And things are going to get worse… much worse. The economy is on the threshold of calamity. Wars are spreading like wildfires. The world is on a razor’s edge.

Not so, say world leaders and mainstream media experts. Yes, there are problems, but the financiers and politicians are aware of them. Policies are already in place and measures are being taken to correct them.

Whether it’s failing economies, intractable old wars or raging new wars, the word from the top always maintains that steady progress is being made and comforts the populace with assurances that the brightest minds and the sharpest generals are in charge and on the case. On all fronts, success is certain and victory is at hand. Only “patience” is required … along with more men, more time and more money.

As far as these “leaders” and their media are concerned, the only opinions that count come from a stable of thoroughbred experts, official sources and political favorites. Only they have the credentials to speak with authority and provide trustworthy forecasts. That they are consistently, if not invariably, wrong apparently does nothing to diminish their credibility.

How can any thinking adult possibly imagine that the same central bankers, financiers and politicians responsible for creating the economic crisis are capable of resolving it? Within days of its announcement, we predicted that Bush’s TARP (Troubled Asset Relief Program) was destined to fail, and subsequently predicted the same for Obama’s stimulus package (The American Recovery and Reinvestment Act). They were no more than cover-ups; there would be no recovery.

Meet the New Plan, Same as the Old Plan

Continue reading »

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Jun 05

… and created it, together with the government, following orders from their elite masters.

Again, this is the ‘Greatest Depression’.


Wall Street Baffled by Slowing Economy, Low Yields: Trader (CNBC, June 1, 2011):

Wall Street is having a hard time figuring out what to do now that the U.S. economy appears to be sputtering and yields are so low, Peter Yastrow, market strategist for Yastrow Origer, told CNBC.

“What we’ve got right now is almost near panic going on with money managers and people who are responsible for money,” he said. “They can not find a yield and you just don’t want to be putting your money into commodities or things that are punts that might work out or they might not depending on what happens with the economy.

“We need to find real yield and real returns on these assets. You see bad data, you see Treasurys rally, you see all bonds and all fixed-income rally and then the people who are betting against the U.S. economy start getting bearish on stocks. That’s a huge mistake.”

Stocks extended losses after the manufacturing fell below expectations in May and the private sector added only 38,000 jobs during the month.

“Interest rates are amazingly low and that, thanks to Ben Bernanke, is driving everything,” Yastrow said. “We’re on the verge of a great, great depression. The [Federal Reserve] knows it.”

Continue reading »

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May 31

Falling Home Prices Hit Big Banks, Fannie, Freddie (CNBC, 31 May 2011):

Home prices began double-dipping months ago, but now that S&P/Case Shiller has chimed in, it really must be so.

This report is the most widely-followed home price index, equally quoted in bank boardrooms, Treasury Department back rooms, and Congressional Committees.

The report finds home prices in Q1 of this year are now 2.9 percent below the previous quarterly bottom in Q1 of 2009, effectively giving up all the gains of the past few years, which were of course fueled by the home buyer tax credit.

“Just about everybody agrees we’re going to miss the seasonally strong period in 2011, which we should be at the very beginning of right now with May, but nobody thinks that will make any difference,” says S&P’s David Blitzer. “Everybody’s now keeping their fingers crossed for 2012 and wondering whether people just don’t want to own homes anymore.”

Keeping your fingers crossed for the housing market is just the tip of the iceberg. Prices have now fallen, on this index, more than they did during the Great Depression. “On that occasion, the peak in prices was not regained until 19 years after they first fell,” notes Paul Dales at Capital Economics. Continue reading »

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Mar 16


Walter J. “John” Williams was born in 1949. He received an A.B. in Economics, cum laude, from Dartmouth College in 1971, and was awarded a M.B.A. from Dartmouth’s Amos Tuck School of Business Administration in 1972, where he was named an Edward Tuck Scholar. During his career as a consulting economist, John has worked with individuals as well as Fortune 500 companies.

John Williams of Shadowstats.com:

The U.S. economic and systemic-solvency crises of the last four years only have been precursors to the coming Great Collapse: a hyperinflationary great depression. Such will encompass a complete collapse in the purchasing power of the U.S. dollar; a collapse in the normal stream of U.S. commercial and economic activity; a collapse in the U.S. financial system as we know it; and a likely realignment of the U.S. political environment.”

“Outside timing on the hyperinflation remains 2014, but there is strong risk of the currency catastrophe beginning to unfold in the months ahead. It may be starting to unfold as we go to press in March 2011, but moving into a full blown hyperinflation could take months to a year, beyond the onset, depending on the developing global view of the dollar and reactions of the U.S. government and the Federal Reserve.

Continue reading »

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Mar 15

“When a country embarks on (record) deficit financing (Obamanomics) and inflationism (Quantitative easing) you wipe out the middle class and wealth is transferred from the middle class and the poor to the rich.”
– Ron Paul

The other 93% will be destroyed in the coming greatest financial collapse. (1% will get richer.)

This is the Greatest Depression.


Wall Street at least temporarily relieved of the burden of having to buy Treasuries & Agency bonds, is looking at the jump in oil prices as nothing more than an irritant to their plans for a higher market. Bill Dudley of the NY Fed, a most powerful member, continues to make a vigorous defense of Federal Reserve policies. He, and a few other Fed participants, and Chairman Bernanke believe liquidity is the key for solving problems. That is not only in the realm of debt purchases, but in the relief it brings to Wall Street and banking. It relieves them of the responsibility of having to make those purchases to assist the Fed. Those funds can then be directed toward other investments, such as la liquidity-driven stock market rally. The correlation between the movements in the Fed balance sheet and market can be traced to 85% of market movement for the past 2-1/2 years. An interesting result of Fed manipulative policy is low level of short interest during this period. Most of the professional market players knew the market was headed higher, because they knew such overwhelming liquidity injections would have to take it higher.

They also knew that the Fed had to keep the wealth affect going, because the market was the only generator of wealth left, as the bond market bubble would be broken eventually. The Fed has engineered a market recovery and Wall Street knew what they were up too. QE1 saved the financial community and QE2 saved the government debt structure at least temporarily. The wealth effect has been saved temporarily as well. The public has been left with a pile of crumbs as they struggle for survival. Unemployment has improved ever so slightly and now we have a new problem to increase the suffering and that is much higher oil prices.

Continue reading »

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Feb 25

And this is the Greatest Depression!


Eric Sprott made an appearance at Casey Research Gold and Resource Summit where in addition to providing a succinct summary of all his monthly letters from the past year, whose forecasts are all gradually panning out, he spoke about the prospects for gold, and particularly silver.

We will leave it to readers to parse through the brief must watch clip, but here is the punchling for those wondering why increasingly more distributors are reporting indefinite lack of physical silver inventory:

“There’s $22 billion of silver available in the world, of which the ETFs already own half, and between you guys and us we probably own the other half… Which means there’s nothing left.”

Submitted by Tyler Durden on 02/23/2011 15:05 -0500

Source: ZeroHedge

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Feb 05

1 of 2:

Added: 3. February 2011

2 of 2:

Added: 3. February 2011

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Sep 07

Just in case you still haven’t watched this:

George Carlin: The American Dream


1 of 3:

2 of 3:

3 of 3:

An ABC – Four Corners documentary about the coming economic crisis, featuring Gerald Celente and Peter Schiff. Original air date: 23rd August, 2010.

See also:

– Prof. Nouriel Roubini: No Defence Left Against Double-Dip Recession

American Deaths In Afghanistan Surpass Highest Annual Record

US: Record 1 in 6 Americans in Government Anti-Poverty Programs

California Delays $2.9 Billion School, County Payments In September Amid Budget Impasse

US Home Sales in July: Record Drop Of 27 Percent, The Largest Monthly Drop On Record

US Cities Sell Parking, Airports, Zoo To Help Closing Budget Gaps

Nearly 50 Percent leave Obama Mortgage-Relief Program

The No.1 Trend Forecaster Gerald Celente: And Now We’re Headed For The GREATEST Depression

US: Jobless Claims Jump to Highest Level Since November

US: Bankruptcies Reach Nearly 5-Year High

US Cities Face Up To MASSIVE Cuts

Why the US is as busted as a busted flush – IMF analysis suggests the US is fiscally bankrupt

John Williams: ‘Times That Try Our Souls’ (U.S. Bankruptcy – Hyperinflation – Great Depression), Preparedness Can Save Your Life:

The government is effectively bankrupt. Using GAAP accounting principles, the annual deficit is running in the range of $4 trillion to $5 trillion. That’s beyond containment. The government can’t cover it with taxes. They’d still be in deficit if they took 100% of personal income and corporate profits. They’d also still be in deficit if they cut every penny of government spending except for Social Security and Medicare. Washington lacks the will to slash its social programs severely, to change its approach to ever bigger government. The only option left going forward is for the government eventually to print the money for the obligations it cannot otherwise cover, which sets up a hyperinflation.

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Aug 20

The fake “recovery” was nice while it lasted, says famous apocalyptic forecaster Gerald Celente, founder of the Trends Research Institute. But now the fun’s over, and we’re headed for what Celente describes as the “Greatest Depression.”

Specifically, the always startling Celente says the country is headed for rising unemployment, poverty, and violent class warfare as the government efforts to keep the economy going begin to fail.

The crux of the problem, Celente argues, is that the middle class has been wiped out. America used to be a land of opportunity for all, where hard-working people could build their own small businesses in their own communities and live prosperous and fulfilling lives. But now a collusion of state and corporate interests that Celente describes as “fascism” have conspired to help only the biggest companies and the richest Americans. This has put a shocking amount of the country’s wealth in the hands of a privileged few and left the rest of the country to subsist on chicken-feed wages and low job satisfaction as Wal-Mart “associates” — or worse.

Continue reading »

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Aug 12

Listen to Gerald Celente America!
Rome is burning:

John Williams: ‘Times That Try Our Souls’ (U.S. Bankruptcy – Hyperinflation – Great Depression), Preparedness Can Save Your Life

So what have the elitists planned for the US? Total collapse and/or WW III?

Former CIA And Military Officials To Obama: Israel Prepares To Attack Iran This Month


Part 1 of 3:

Added: 11. August 2010

Part 2 of 3:

Added: 11. August 2010

Part 3 of 3:

Added: 11. August 2010

Continue reading »

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Aug 11

Highly recommended reading.

The Greatest Depression is here.


john-williams-shadowstatscom

When Fed Chairman Ben Bernanke admits to seeing an “unusually uncertain” economy ahead, it’s pretty terrifying to imagine what he’s really thinking. What John Williams envisions-and he’s by no means looking to the far horizon-is a systemic collapse, a hyperinflationary great depression and the cessation of normal commerce. Despite that bleak outlook, however, when the economist and editor of ShadowStats.com sat down for this exclusive Energy Report interview, he also had some good news.

The Energy Report: A few months back, John, you said, “if you strangle liquidity you always contract an economy and deliberately or not, liquidity is being strangled, resulting in sharp declines in consumer credit, commercial and industrial loans.” Does this mean it would spur more economic growth if banks actually started lending?

John Williams: It sure wouldn’t hurt. We’re still seeing contractions in liquidity, and that’s adjusted for inflation. In real terms, M3 money supply is down almost 8% year-over-year. It’s the sharpest fall in the post -World War II era. It’s not so much the depth of the decline in the liquidity or the duration, but the fact that the liquidity turns negative year-over-year that signals the economy turning down.

We had the signal in December of 2009 indicating intensification of the downturn, in this case, within six to nine months. We’re in that timeframe now and see softening numbers. People are talking about a weaker economy. Even Mr. Bernanke has described the economy as “unusually uncertain” in terms of its outlook. Wording like that from the Fed is a pretty good indication that something’s afoot. Continue reading »

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Aug 07

There is no recovery! This is the Greatest Depression.

US: Food stamp Use Hit Record 40.8 Million in May


• American firms shed 131,000 jobs in July

• UK thinktank warns British ‘depression’ will last until 2012

us_job-losses-in-july-are-double-expected-figure
Job seekers speak with recruiters during a career fair in Chicago but there are fears that a recovery in the US economy will not mean a revival in employment (Getty Images)

Employers in the US shed twice as many jobs as expected in July, adding to fears that the recovery in the world’s largest economy will not see a revival in employment.

The dismal US job figures came as the National Institute of Economic and Social Research predicted a protracted depression for the UK economy.

Across the Atlantic talk of a double-dip recession was revived when the government revealed 131,000 jobs were lost last month. That dwarfed forecasts for a fall of 65,000. June’s drop was also revised to a far steeper 221,000 from 125,000. Continue reading »

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Apr 23

Mike Krieger, formerly a macro analyst at Bernstein, and currently running his own fund, KAM LP, summarizies the pretend reality we are all caught in now, knowing full well America is set on a crash course with reality at some point, yet sticking our collective heads in the sand, as the collapse will be some time in the “indefinite” future. In the meantime, banks will continue to boost US GDP by peddling “financial innovation” and restructuring advice to countries like Greece… and nothing else.


Goodbye Disneyland, by Mike Krieger

In the end the Party would announce that two and two made five, and you would have to believe it.  It was inevitable that they should make that claim sooner or later: the logic of their position demanded it.  Not merely the validity of experience, but the very existence of external reality was tacitly denied by their philosophy.  The heresy of heresies was common sense.  And what was terrifying was not that they would kill you for thinking otherwise, but that they might be right.  For, after all how do we know that two and two make four?  Or that the force of gravity works?  Or that the past is unchangeable?  If both the past and the external world exist only in the mind, and if the mind itself is controllable – what then?
– Winston Smith in George Orwell’s 1984

A government big enough to give you everything you want is a government big enough to take from you everything you have.
– Thomas Jefferson

We Must Move to a Free Market and Shun the Welfare-Warfare State or all will be Lost

Unfortunately for all of us, the primary economic policy of the U.S. government as well as many others around the world is an extend and pretend strategy that is economic suicide primarily in that it keeps the irresponsible in their assets and it makes the responsible shudder and shun productive investments.  Whether it be a homeowner that is subsidized to stay in a home that he cannot afford or a bank that doesn’t want to come clean on the extent of its bad assets, the result is the same.  Complete economic inertia.  Now of course there has been a rebound in demand, but my argument has been and continues to be that this is the most unproductive rebound in aggregate demand that perhaps the world has ever seen.  Whether it be in the U.S. or China, the demand is taking away spare capacity in many areas indeed but we must question the methods.  This is where the whole idea of inflation comes into play.  The whole reason why printing a million dollars and giving it to everyone doesn’t work is because this “liquidity” is not created through a productive process.  It is purely an injection of new dollars into the economy.  The basic rule of supply/demand kicks in.  In the average person’s pocket, this money is unlikely to be “invested” in productive capital endeavors, rather the vast majority of it will simply be spent to consume the resources of that which can be supplied by the already existing capital stock.  So in many ways it isn’t that the creation of the money itself that is the biggest problem, it is the distribution channel of that money.  Only a small percentage of the population that receives the million dollars has the ability, drive and discipline to invest the money into something that will create economic value for the society at large rather than just blow it on a flat screen television.  This is the entire premise of why a free market economy works when it is allowed to work (which I would argue is not possible under the current Federal Reserve system).  The Fed is a socialist organization that SETS the most important price in the economy, the price of money.  Even worse, when they set that price at say 0% as is basically the case today that 0% or anything close to it is not offered to all the small businessmen or potential entrepreneurs out there.  It might not even be so bad if the low interest rates weren’t simply being used to gamble or play a carry trade with treasuries.  Of course, the banks or anyone else for that matter playing a spread by borrowing at near zero to buy long-term treasuries is doing irreparable harm to this nation.  They are complicit in the gross misallocation of capital to the government, capital that can then be doled out at will to favored interests.  So all we have today is essentially a creation of money and credit out of thin air that is allocated to two major constituents.  First, it has primarily been used to maintain the people of wealth, power and political connections (on both sides of the isle) before the crash entrenched in their socioeconomic roles.  Second, is to pay off political favors.  Those who supported the President in his campaign have been paid back handsomely and are today much more powerful and secure than before whether we are talking unions or the oligopoly banks.  If we wish to have any hope of a sustainable recovery preventing the inevitable social unrest to come from truly getting dangerous we must restore the free market and end the union of big business and government, which historically has presented an extremely dangerous situation.  For those that are in big business and think they have made a great move by joining forces with the state I suggest you go back and read your history.  You never will possess the ultimate power, you will be seduced into thinking you do and then when the time is right government can eliminate you and your fortune with the stroke of a pen.  Power is granted to you by this authority when you engage in this unholy union and it can be taken away on whim and your wealth confiscated. Selling out freedom and your fellow citizens for some extra money or government contracts will come back to haunt you.  Your legacy to the United States will be a neo-feudalistic, gulag casino economy that has already begun. Below is a link to an excellent interview with Bill Moyers on PBS about our financial oligarchy (I believe many industries here are becoming oligarchies but the financial one is the most powerful) and the need to stop its cancerous growth.

http://www.pbs.org/moyers/journal/04162010/watch.html

There Will be Surplus…In 2050!

Continue reading »

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Mar 28

‘Fascism is coming to America’


Added: 28th Mar 10

More from Gerald Celente:

Gerald Celente: ‘It’s the greatest bank robbery in world history and the banks are doing the robbing.’

Gerald Celente: ‘The Crash is Coming in 2010.’

The No.1 Trend Forecaster Gerald Celente: Financial Mafia Controlling US and Wall Street

Survivor, America: ‘It’s Only Going to Get Worse,’ Gerald Celente Says

The No.1 Trend Forecaster Gerald Celente: The Terror And The Crash of 2010

If Nostradamus were alive today, he’d have a hard time keeping up with Gerald Celente.
– New York Post

When CNN wants to know about the Top Trends, we ask Gerald Celente.
– CNN Headline News

There’s not a better trend forecaster than Gerald Celente. The man knows what he’s talking about.
– CNBC

Those who take their predictions seriously … consider the Trends Research Institute.
– The Wall Street Journal

A network of 25 experts whose range of specialties would rival many university faculties.
– The Economist

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Mar 12

vitamin-d

(NaturalNews) There is an epidemic of vitamin D deficiency sweeping across our modern world, and it’s an epidemic of such depth and seriousness that it makes the H1N1 swine flu epidemic look like a case of the sniffles by comparison. Vitamin D deficiency is not only alarmingly widespread, it’s also a root cause of many other serious diseases such as cancer, diabetes, osteoporosis and heart disease.

A new study published in the March, 2010 issue of the Journal of Clinical Endocrinology and Metabolism found that a jaw-dropping 59 percent of the population is vitamin D deficient. In addition, nearly 25 percent of the study subjects were found to have extremely low levels of vitamin D.

Lead author of the study, Dr. Richard Kremer at the McGill University Health Center, said “Abnormal levels of vitamin D are associated with a whole spectrum of diseases, including cancer, osteoporosis, and diabetes, as well as cardiovascular and autoimmune disorders.”

This new study also documents a clear link between vitamin D deficiency and stored body fat. This supports a theory I’ve espoused here on NaturalNews for many years: That sunshine actually promote body fat loss. Vitamin D may be the hormonal mechanism by which this fat loss phenomenon operates.

The research findings on vitamin D, by the way, get even better…

Activator for the immune system

Recent research carried out at the University of Copenhagen has revealed that vitamin D activates the immune system by “arming” T cells to fight off infections. Continue reading »

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Feb 13

Must-read!


Prepare for an apocalyptic anarchy ending Wall Street’s toxic capitalism

ARROYO GRANDE, Calif. (MarketWatch) — Wake up investors. Are you prepared for the economic anarchy coming after a global-debt time bomb explodes? Are you thinking outside the box? Investing differently? Act now — tomorrow will be too late.

Start by looking past the endless cable skirmishes between Rush, Glenn, Bill and Shawn versus Harry, Nancy, Ben and Barack. Look way past the insurgency bonding Sarah and her diehard Tea Party revolutionaries with Ron Paul’s Neo-Reaganite ideologues, Fat-Cat Bankers and the Party of No, all planning a massive frontal assault on the 2010 elections, hell-bent on destroying the presidency. All that’s the sideshow.

The Big One is coming soon, bigger than the 2000 dot-com crash and the 2008 subprime credit meltdown combined. A huge market blowout. And as Bloomberg-BusinessWeek predicts: “The results won’t be pretty for investors or elected officials.”

After the global-debt bomb explodes don’t expect a typical bear correction followed by a new bull. Wall Street’s toxic pseudo-capitalism is imploding. Be prepared for a massive meltdown. Yes, already the third major bubble-bust of the 21st century, triggered once again by Wall Street’s out-of-control Fat Cat Bankers. And it’s dead ahead.

Can your family survive in the anarchy after the debt bomb explodes?

America’s already descending into economic anarchy. We’re all trapped in a historic economic supercycle, a turning point that must bleed through a no-man’s land of lawless self-destructive anarchy before a neo-capitalistic world can re-emerge. Investors tell me they “feel” it at a deep level, “know” it’s happening. They keep asking: “What’s the best investment strategy to prepare now?”

This is no joke, folks. Are you prepared? Or preparing? Will your family survive in a post-apocalyptic world, when anarchy is rampant in America? Look at Washington, Wall Street and Corporate America today. You know it’s already begun.

You are witnessing a fundamental breakdown of the American dream, a systemic breakdown of our democracy and our capitalism, a breakdown driven by the blind insatiable greed of Wall Street: Dysfunctional government, insane markets, economy on the brink. Multiply that many times over and see a world in total disarray. Ignore it now, tomorrow will be too late. Continue reading »

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Jan 23

“The collapse of the financial system is still in its early stage.”

“The social unrest will illicit cries for the government to exert unusual force to head off a complete breakdown of law and order. The ultimate trap will be set for a system of government claiming to protect a free society.”

“If more power and police authority are not given to the Federal government, it will be argued that only anarchy will result. If more government policing power is given, it will mean a lethal threat to civil liberties.”

“We are rapidly moving toward a dangerous time in our history. Society as we know it is vulnerable to political and social unrest. This impending crisis comes as a consequence of our flawed foreign and domestic economic policies, a silly notion about money, ignorance about central banking, ignoring the onerous power and mischief of out of control intelligence agencies, our unsustainable welfare state and a willingness to sacrifice privacy and civil liberties in an attempt to achieve safety and security from an inept government.”

“Dangerous times indeed.”

“The only way that we can prevent blood from running in the streets is to offer a better idea of the proper role of government in a society that desires, first and foremost, liberty.”

1 of 3:

Added: 21. Januar 2010

2 of 3:

Added: 21. Januar 2010

3 of 3:

Added: 21. Januar 2010

The Fed and the US government are destroying America:

America’s Impending Master Class Dictatorship! (MUST-READ!)

The CFR Controls American News/Media

Senate Proposes Increasing US Debt Limit to $14.3 Trillion: “If Congress does not enact this legislation, and soon, then the Treasury would default on its debt for the first time in history,” said Senate Finance Committee Chairman Max Baucus

US: Unfunded Benefits Dig States’ $3 Trillion Hole

Illinois enters a state of insolvency: ‘We’re close to de facto bankruptcy, if not de jure bankruptcy.’

The No.1 Trend Forecaster Gerald Celente: Financial Mafia Controlling US and Wall Street

Peter Schiff: The Lunacy of US Government Programs

– Former Dean of Harvard College Harry R. Lewis: Larry Summers, Robert Rubin: Will The Harvard Shadow Elite Bankrupt The University And The Country?
Continue reading »

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Jan 11

“It’s only going to get worse,” is the sobering forecast of Gerald Celente, director of the Trends Research Institute.

As discussed in a prior segment, Celente believes the “bailout bubble” is going to burst and the U.S. economy will slip back into recession, if not worse, in 2010.

Like all forecasters, Celente isn’t always right but he has predicted a number of major events, as detailed here.

So if Celente is right about 2010, what will that mean for the average American? Celente says we’re going back to basics, making do with less and adopting the following mantra: “Waste not, want not. Use it up wear it out. Make it due, due without.”

On his Website, Celente offers the following predictions, further discussed in the accompanying video: Continue reading »

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Jan 11

December was the worst month for US unemployment since the Great Recession began.

wall-street-crash-of-1929
History repeating itself? President Obama has been accused by some economists of making the same mistakes policymakers in the US made in the Great Depression, which followed the Wall Street crash of 1929, pictured Photo: AP

The labour force contracted by 661,000. This did not show up in the headline jobless rate because so many Americans dropped out of the system. The broad U6 category of unemployment rose to 17.3pc. That is the one that matters.

Wall Street rallied. Bulls hope that weak jobs data will postpone monetary tightening: a silver lining in every catastrophe, or perhaps a further exhibit of market infantilism.

The home foreclosure guillotine usually drops a year or so after people lose their job, and exhaust their savings. The local sheriff will escort them out of the door, often with some sympathy — just like the police in 1932, mostly Irish Catholics who tithed 1pc of their pay for soup kitchens.

Realtytrac says defaults and repossessions have been running at over 300,000 a month since February. One million American families lost their homes in the fourth quarter. Moody’s Economy.com expects another 2.4m homes to go this year. Taken together, this looks awfully like Steinbeck’s Grapes of Wrath.

Judges are finding ways to block evictions. One magistrate in Minnesota halted a case calling the creditor “harsh, repugnant, shocking and repulsive”. We are not far from a de facto moratorium in some areas.

This is how it ended between 1932 and 1934, when half the US states declared moratoria or “Farm Holidays”. Such flexibility innoculated America’s democracy against the appeal of Red Unions and Coughlin Fascists. The home siezures are occurring despite frantic efforts by the Obama administration to delay the process. Continue reading »

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Jan 09

On Thursday I had posted Bloomberg’s summary on the monthly investment outlook by PIMCO’s Bill Gross:

PIMCO’s Bill Gross warns on risks of US deficit: ‘Our government doesn’t work anymore, or perhaps more accurately, when it does, it works for special interests and not the American people.’

But that summary missed a lot of important points.

Here is just one excerpt as a starter:

“Here’s the problem that the U.S. Fed’s “exit” poses in simple English: Our fiscal 2009 deficit totaled nearly 12% of GDP and required over $1.5 trillion of new debt to finance it. The Chinese bought a little ($100 billion) of that, other sovereign wealth funds bought some more, but as shown in Chart 2, foreign investors as a group bought only 20% of the total – perhaps $300 billion or so. The balance over the past 12 months was substantially purchased by the Federal Reserve. …”

If that doesn’t bother you, then I do not know what will. The Federal Reserve is creating money out of thin air like there is no tomorrow and the bad news is that that is exactly what the elite that controls the US government and the Federal Reserve has planned for America:

In the next two years (or just a little more than that) we will see hyperinflation in the US, people in America will become desperately poor and the Greatest Depression will turn the US into a Third World country.

(In 2009 Bill Gross was named the world’s 32nd most powerful man by Forbes.)

Now here is the full article by Bill Gross, ‘The King of Bonds’ (Must-Read!):


Let’s Get Fisical

bill-gross-1

Quixotic journeys often make for great literature, but by definition are rarely productive. I am, after all, referring to windmills here – not their 21st century creation, but their 17th century chasing. Futility, not productivity, was the ultimate fate of Cervantes’ man from La Mancha. So it is with hesitation, although quixotic obsession, that I plunge headlong into a discussion of American politics, healthcare legislation, resultant budget deficits and – finally – their potential effect on financial markets. There will be windmills aplenty in the next few pages and not much good can come of these opinions or my tilting in their direction. Still, I mount my steed, lance in hand, and ride forward.

Question: What has become of the American nation? Conceived with the vision of liberty and justice for all, we have descended in the clutches of corporate and other special interests to a second world state defined by K Street instead of Independence Square. Our government doesn’t work anymore, or perhaps more accurately, when it does, it works for special interests and not the American people. Washington consistently stoops to legislate 10,000-page perversions of healthcare, regulatory reform, defense, and budgetary mandates overflowing with earmarks that serve a monied minority as opposed to an all-too-silent majority. You don’t have to be Don Quixote to believe that legislators – and Presidents – often do not work for the benefit of their constituents: A recent NBC News/Wall Street Journal poll reported that over 65% of Americans trust their government to do the right thing “only some of the time” and a stunning 19% said “never.” What most politicians apparently are working for is to perpetuate their power – first via district gerrymandering, and then second by around-the-clock campaigning financed by special interest groups. If, by chance, they’re ever voted out of office, they have a home just down the street – at K Street – with six-figure incomes as a starting wage.

What amazes me most of all is that politicians can be bought so cheaply. Public records show that combined labor, insurance, big pharma and related corporate interests spent just under $500 million last year on healthcare lobbying (not much of which went to politicians) for what is likely to be a $50-100 billion annual return. The fact is that American citizens have never been as divorced from their representatives – and if that description fits the Democratic Congress now in control – then it applies to Republicans as well – past and present. So you watch Fox, or is it MSNBC? O’Reilly or Olbermann? It doesn’t matter. You’re just being conned into rooting for a team that basically runs the same plays called by lookalike coaches on different sidelines. A “ballot box” pox on all their houses – Senators, Representatives and Presidents alike. There has been no change, there will be no change, until we the American people decide to publicly finance all national and local elections and ban the writing of even a $1 check for our favorite candidates. Undemocratic? Hardly. Get on the internet, use Facebook, YouTube, or Twitter to campaign for your choice. That’s the new democracy. When special interests, even singular citizens write a check, it represents a perversion of democracy not the exercise of the First Amendment. Any chance that any of this will happen? Not one ghost of a chance. Forward Don Quixote, the windmills are in sight.

Distressed as I am about the state of American democracy, a rational money manager cannot afford to get mad or “just get even” when it comes to investing clients’ money. Still, like pilots politely advertise at the end of most flights, “We know you have a choice of airlines and we thank you for flying ‘United’.” Global investment managers likewise have a choice of sovereign credits and risk assets where stable inflation and fiscal conservatism are available. If 2008 was the year of financial crisis and 2009 the year of healing via monetary and fiscal stimulus packages, then 2010 appears likely to be the year of “exit strategies,” during which investors should consider economic fundamentals and asset markets that will soon be priced in a world less dominated by the government sector. If, in 2009, PIMCO recommended shaking hands with the government, we now ponder “which” government, and caution that the days of carefree check writing leading to debt issuance without limit or interest rate consequences may be numbered for all countries.

Continue reading »

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Dec 26

The US is already beyond hope!

See also:

John Williams of Shadowstats: Prepare For The Hyperinflationary Great Depression

This is the Greatest Depression.


ShadowStats.com founder John Williams explains the risk of hyperinflation. Worst-case scenario? Rioting in the streets and devolution to a bartering system.

john-williams-shadowstatscom
Courtesy of John WilliamsEconomist/statistician John Williams shifts through the government’s rose-tinted data

Do you believe everything the government tells you? Economist and statistician John Williams sure doesn’t. Williams, who has consulted for individuals and Fortune 500 companies, now uncovers the truth behind the U.S. government’s economic numbers on his Web site at ShadowStats.com. Williams says, over the last several decades, the feds have been infusing their data with optimistic biases to make the economy seem far rosier than it really is. His site reruns the numbers using the original methodology. What he found was not good.

Maymin: So we are technically bankrupt?

Williams: Yes, and when countries are in that state, what they usually do is rev up the printing presses and print the money they need to meet their obligations. And that creates inflation, hyperinflation, and makes the currency worthless.

Obama says America will go bankrupt if Congress doesn’t pass the health care bill.

Well, it’s going to go bankrupt if they do pass the health care bill, too, but at least he’s thinking about it. He talks about it publicly, which is one thing prior administrations refused to do. Give him credit for that. But what he’s setting up with this health care system will just accelerate the process.

Where are we right now?

In terms of the GDP, we are about halfway to depression level. If you look at retail sales, industrial production, we are already well into depressionary. If you look at things such as the housing industry, the new orders for durable goods we are in Great Depression territory. If we have hyperinflation, which I see coming not too far down the road, that would be so disruptive to our system that it would result in the cessation of many levels of normal economic commerce, and that would throw us into a great depression, and one worse than was seen in the 1930s.

What kind of hyperinflation are we talking about?

I am talking something like you saw with the Weimar Republic of the 1930s. There the currency became worthless enough that people used it actually as toilet paper or wallpaper. You could go to a fine restaurant and have an expensive dinner and order an expensive bottle of wine. The next morning that empty bottle of wine is worth more as scrap glass than it had been the night before filled with expensive wine.

We just saw an extreme example in Zimbabwe. … Probably the most extreme hyperinflation that anyone has ever seen. At the same time, you still had a functioning, albeit troubled, Zimbabwe economy. How could that be? They had a workable backup system of a black market in U.S. dollars. We don’t have a backup system of anything. Our system, with its heavy dependence on electronic currency, in a hyperinflation would not do well. It would probably cease to function very quickly. You could have disruptions in supply chains to food stores. The economy would devolve into something like a barter system until they came up with a replacement global currency.

What can we do to avoid hyperinflation? What if we just shut down the Fed or something like that?

We can’t. The actions have already been taken to put us in it. It’s beyond control. The government does put out financial statements usually in December using generally accepted accounting principles, where unfunded liabilities like Medicare and Social Security are included in the same way as corporations account for their employee pension liabilities. And in 2008, for example, the one-year deficit was $5.1 trillion dollars. And that’s instead of the $450 billion, plus or minus, that was officially reported.

Wow.

These numbers are beyond containment. Even the 2008 numbers, you can take 100 percent of people’s income and corporate profit and you’d still be in deficit. There’s no way you can raise enough money in taxes.

What about spending?

If you eliminated all federal expenditures except for Medicare and Social Security, you’d still be in deficit. You have to slash Social Security and Medicare. But I don’t see any political will to rein in the costs the way they have to be reined in. There’s just no way it can be contained. The total federal debt and net present value of the unfunded liabilities right now totals about $75 trillion. That’s five times the level of GDP. Continue reading »

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Dec 15

“The US Has No Way of Avoiding a Financial Armageddon,” Says John Williams.

us-hyperinflationary-great-depression

John Williams, who runs the popular counter government data manipulation site Shadowstats, has thrown down the gauntlet to deflationists, and in an extensive report concludes that the probability of a hyperinflationary episode in America over the next year has reached critical levels. While the debate between deflationists and (hyper)inflationists has been a long and painful one, numerous events set off in motion by the Bernanke Fed (as a direct legacy of the Greenspan multi-decade period of cheap and boundless credit) may have well cast America as the unwilling protagonist in the sequel of the failed monetary policy economic experiment better known as Zimbabwe.

Williams does not mince his words:

The U.S. economic and systemic solvency crises of the last two years are just precursors to a Great Collapse: a hyperinflationary great depression. Such will reflect a complete collapse in the purchasing power of the U.S. dollar, a collapse in the normal stream of U.S. commercial and economic activity, a collapse in the U.S. financial system as we know it, and a likely realignment of the U.S. political environment. The current U.S. financial markets, financial system and economy remain highly unstable and vulnerable to unexpected shocks. The Federal Reserve is dedicated to preventing deflation, to debasing the U.S. dollar. The results of those efforts are being seen in tentative selling pressures against the U.S. currency and in the rallying price of gold.

And even as Bernanke continues existing in a factless vacuum where he sees no asset bubbles, Williams takes aim at the one party almost exclusively responsible for the economic carnage that will soon transpire:

The crises have been generated out of and are centered on the United States financial system, triggered by the collapse of debt excesses actively encouraged by the Greenspan Federal Reserve. Recognizing that the U.S. economy was sagging under the weight of structural changes created by government trade, regulatory and social policies — policies that limited real consumer income growth — Mr. Greenspan played along with the political and banking systems. He made policy decisions to steal economic activity from the future, fueling economic growth of the last decade largely through debt expansion.

The Greenspan Fed pushed for ever-greater systemic leverage, including the happy acceptance of new financial products, which included instruments of mis-packaged lending risks, designed for consumption by global entities that openly did not understand the nature of the risks being taken. Complicit in this broad malfeasance was the U.S. government, including both major political parties in successive Administrations and Congresses.
As with consumers, the federal government could not make ends meet while appeasing that portion of the electorate that could be kept docile by ever-expanding government programs and increasing government spending. The solution was ever-expanding federal debt and deficits.

Purportedly, it was Arthur Burns, Fed Chairman under Richard Nixon, who first offered the advice that helped to guide Alan Greenspan and a number of Administrations. The gist of the wisdom imparted was that if you ran into problems, you could ignore the budget deficit and the dollar. Ignoring them did not matter, because doing so would not cost you any votes.
Back in 2005, I raised the issue of a then-inevitable U.S. hyperinflation with an advisor to both the Bush Administration and Fed Chairman Greenspan. I was told simply that “It’s too far into the future to worry about.”

Indeed, pushing the big problems into the future appears to have been the working strategy for both the Fed and recent Administrations. Yet, the U.S. dollar and the budget deficit do matter, and the future is at hand. The day of ultimate financial reckoning has arrived, and it is playing out.

Looking at the events over the past year demonstrates that Williams is not just being a drama queen.

Effective financial impairments and at least partial nationalizations or orchestrated bailouts/takeovers resulted for institutions such as Bear Stearns, Citigroup, Washington Mutual, AIG, General Motors, Chrysler, Fannie Mae and Freddie Mac, along with a number of further troubled financial institutions. The Fed moved to provide whatever systemic liquidity would be needed, while the federal government moved to finance corporate bailouts and to introduce significant stimulus spending.

Curiously, though, the Fed and the Treasury let Lehman Brothers fail outright, which triggered a foreseeable run on the system and markedly intensified the systemic solvency crisis in September 2008. Whether someone was trying to play political games, with the public and Congress increasingly raising questions of moral hazard issues, or whether the U.S. financial wizards missed what would happen or simply moved to bring the crisis to a head, remains to be seen.

More on the impending timing of the complete economic collapse of the US financial system: Continue reading »

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Nov 01

Quotes from the Great Depression


The large-scale government intervention in the economy is going to end badly.

ron-paul-be-prepared-for-the-worst

Any number of pundits claim that we have now passed the worst of the recession. Green shoots of recovery are supposedly popping up all around the country, and the economy is expected to resume growing soon at an annual rate of 3% to 4%. Many of these are the same people who insisted that the economy would continue growing last year, even while it was clear that we were already in the beginning stages of a recession.

A false recovery is under way. I am reminded of the outlook in 1930, when the experts were certain that the worst of the Depression was over and that recovery was just around the corner. The economy and stock market seemed to be recovering, and there was optimism that the recession, like many of those before it, would be over in a year or less. Instead, the interventionist policies of Hoover and Roosevelt caused the Depression to worsen, and the Dow Jones industrial average did not recover to 1929 levels until 1954. I fear that our stimulus and bailout programs have already done too much to prevent the economy from recovering in a natural manner and will result in yet another asset bubble.

Anytime the central bank intervenes to pump trillions of dollars into the financial system, a bubble is created that must eventually deflate. We have seen the results of Alan Greenspan’s excessively low interest rates: the housing bubble, the explosion of subprime loans and the subsequent collapse of the bubble, which took down numerous financial institutions. Rather than allow the market to correct itself and clear away the worst excesses of the boom period, the Federal Reserve and the U.S. Treasury colluded to put taxpayers on the hook for trillions of dollars. Those banks and financial institutions that took on the largest risks and performed worst were rewarded with billions in taxpayer dollars, allowing them to survive and compete with their better-managed peers.

Continue reading »

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