WHAT’S BREWING IN THE WORLD’S ECO. KETTLE?? 1 JUL 2014
WHAT’S BREWING IN THE WORLD’S ECO. KETTLE?? Crisis & Change in the World’s Equity-market System. This post presents some interesting thoughts on the anatomy of this system. Just as your body parts are linked, so is the global economy, so a 1997 currency crisis in SE Asia triggered stock market crashes globally. Likewise, the 3rd world debt crisis in the early ‘80’s destabilized much of the world’s banking system. The Economic System is one of 6 major World systems. It is complex like the human body. Complex enough that the World’s top economists make obvious blunders, & frankly many of their economic theories the last 300 yrs. were inadequate, bogus & misleading. The System is a multitude of dynamic processes, sometimes volatile, & one has to wonder if the elite themselves are not experiencing future shock from all the technology & new regs. & changes they have unleased.
EXPANDING OR EXPLODING?? PESSIMISTIC EXPECTATIONS. It’s true, the World’s global eco. structure is stressed. Combine the dark prophecies of the news & Scriptures with the cynical view that the wealthy’s eco. forces are too powerful to oppose, & you have a demoralized populace. Everyone wants the means for a decent life; while for many it has become a struggle just to find work. And the mild crises of today may turn into tomorrow’s struggles for survival. Keep in mind, your life story is not written in stone, & so I offer this lesson on economics in the spirit of helping us to better grasp a complex system that is even more confusing due to its smoke & mirrors.
DECEIVED OR DECEIVING?? MAGIC, MIND CONTROL & SMOKE & MIRRORS. My uncle, a farmer, listened to the advice of his banker, that the economy was expanding, farm prices would get better, now was the time to buy farm equipment that would easily pay for itself. The opposite happened. Years later, I saw the equipment & asked how often they used it…”Never” was the reply. Was the banker himself deceived or was he intentionally deceiving? “Market trends” is a fancy word for “fads”, which is a fancy word for “herd behavior”, which strongly suggests someone is likely manipulating the herd! You likely know that banks run on confidence, and when there is no confidence there is a run on the bank. (A run is when lots of people try to pull their money out….Banks only have a small %, perhaps 2% of their deposits actually in the bank; the rest is loaned out or invested.) You may hear that the U.S. govt. gave eco. aid to some country or that U.S. banks loaned money. The reality may be the opposite of the image. “Aid” may be an official in country X being bribed to take out a loan for something his country doesn’t need or want. He mortgages the lives his country’s future generations to line his own pockets. There are story after story of such boondoggle projects called “Aid”, & the typical man-in-the-street Amer. is upset because he thinks this aid was a free handout. Food shipments sent to Ethiopia to stop starvation were sold by their govt. to Russia to buy arms to kill their own people!
Amer. trade deficits are handled by U.S. banks extending long term credit to foreign firms & govt. & then this credit is redeposited as short-term bank deposits. What is the Fed. Reserve? Is the Fed. Reserve owed money by others or owing money to others?? Is the U.S. in charge of its own finances or the private Illuminati elite? Note for instance, the Fed Reserve (private investors) monitors & approves the U.S. Treasury’s bonds.
THE ECONOMIC SYSTEM. It’s a difficult matter to assemble a stable global economic system, which has a series of markets globally. For this series of markets to function smoothly requires an understructure of political cooperation. So you can see why the bankers would like a global govt., it would provide market stability. And in fact, this is what they have quietly put in place.
It is almost an unknown fact that the post WWI world govt. League of Nations (forerunner to the U.N.) was also the forerunner of the IMF as well as on a lesser degree carried out the functions of the WT0 & World Bank. The League of Nations’ Secretariat became the Economic, Financial & Transit Dept. Its 65 member staff worked in Geneva & became known as the Economic & Financial Organization (EFO) of the League. The EFO’s foundation was laid in a 1920 Brussels meeting called the International Financial Conference, where an international consensus was reached on how to guide national policies. These consensus principles exercised a powerful influence on govts. according to Martin Hill, a participant, whose observations were printed by the Illum.’s Carnegie Endowment for International Peace. The League went on to help nations economically: Czechoslavakia (in ’22), Austria (in ’23) & Hungary (in ’24)…. Louis Rasminsky, part of the EFO, became an important establisher of the IMF. So much for the false notion of history that the IMF was created from a clean slate after the 1944 Bretton Woods Conference!
So now you have been led up to learning that the IMF plays a buffering role between the political system & the market system. National policies need to line up with market realities for those who run the eco. system. Additionally, when govts. change to these pro-market policies, when the new policies are unpopular, they have the IMF as a convenient scapegoat. The IMF has been the Illum.’s bad guy. The core of its mandate comes from the League’s activities. One role is to carry out comprehensive eco. surveillance of member states.
SAFETY FEATURES BACKFIRE. The World has put various safety features in place, like “circuit-breakers” to stop runaway stock markets. Firms like Fannie Mae have been bailed out. The problem with safety features in the World’s System is that they often don’t promote prudent behavior. They have at times created the problem they were to solve. Knowing they could act irresponsibly led to the S&L scandal in the ‘80’s. Some think they are too big for the govt. to allow to fail, & that the tax payer can pick up the tab for their irresponsible behavior. The World Financial system works best with 2 kinds of stability in place: monetary stability (prices) and financial stability (markets). Both help each other. Greedy speculation will undermine them.
HITLER’S ECO. MIRACLE. Hitler’s military victories are nothing compared to his economic victories prior to the war that allowed him to create his military. Hitler spoke to the German financial leaders on Jan. 1932 at the Duesseldorf Industry Club & got a standing ovation. It is also clear from the record the Illuminati financed him. Germany’s debt was given a 1 yr. moratorium by Pres. Hoover, which was accepted by France & the U.K.; Germany would deposit money in the Bank of Int. Settlements to pretend to pay its debts, which would then quietly be returned to Berlin. When he gained power, he took over Germany’s banking in ’33 to secretly finance a re-armament program for which he created Mefo bills for. Mefo was a joint stock co. created by the Nazi govt. In Apr. ’38, Mefo bills were replaced by “delivery treasury bonds”. I am giving you just a glance at the creativity of Hitler & his govt. At one point, the German mark had hundreds of different values—no one knew what it was worth. He immediately had emplaced price & wage freezes. He borrowed money from many foreign sources, so that they became friends by virtue they didn’t want Hitler to default on what he owed them! (Side lesson: while people mistakenly think that the Illum. is a group of Aryan racists—if such were the case—they could have backed Hitler when he was winning in 1940. It is obvious they put in power, & then for some reason broke with him. In the end, Germany & the German people were ruthlessly destroyed.)
CHINA’S RED PLUM CURRENCY. Two years ago, I broke the secret about China’s East Asian Red Plum currency that they have secretly created. They have negotiated w/ other Asian nations for adoption by Asian nations, to use when the U.S. is dethroned as the world’s reserve currency. People around the world watch the merry-go-round of the U.S. govt.’s spending spree, & are no longer happy to pay for our lavish life style. They are tired of our arrogant financial hegemony. Like Spain who got cheap silver dollars from its American colonies & did not build infrastructure, America is living the good life off its Fed Reserve dollars, & have little infrastructure to show for its money. Like Spain, when the money runs out, we will be poor. And yet do investors & govt.s really want to put their assets into a Red Chinese currency…we are talking about a totalitarian regime that has capital controls & no property rights & a shady corrupt govt.?? Perhaps, the U.S. dollar as the world’s reserve currency will be replaced by several currencies. One blueprint for the future is the European Central Bank because, in contrast to the Fed & the Bk. of England, it has no fixed geographic jurisdiction & continues to grow. Conceivably it could change its policy from EU members to incl. any nation the ECB wanted.
PROBLEMS: a short review. Two thirds of the IMF members had banking crises in the 80’s & 90’s. Today, some banks are using accounting tricks to record bad loans as good. Misaligned exchange rates create both opportunities to make money & tension between nations. Markets (incl. bond markets) have many weak factors that can lead to a crash. Real investment suffers when stocks crash, and then investment into productivity shrinks, & in turn the level of real output is reduced. Interest rate manipulation affects the real estate market. Real estate is both often used as collateral in borrowing, and in turn its usually bought by borrowing. While prices help to guide a nation in its allocation of resources, volatile price instability—such as gold fluctuations—are dangerous to an economy.
FINAL THOUGHT. Weaknesses in the System are a threat not just to prosperity but to peace & justice & FREEDOM. May the World’s Economic leaders use wisdom!
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