US, world headed for 25 year depression: Jim Rickards

US, world headed for 25 year depression: Jim Rickards

“When I use the phrase 25 year depression, it sounds extreme but it’s not. We had a 30 year depression in the United States from about 1870 to 1900…The Great Depression lasted from about 1929 to 1940. The U.S. is in a depression today.” Well, it's been in the works for

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Canadian banking haven myth exposed

Canadian banking haven myth exposed

"One of the reasons that Canadians (and international commentators, other finance ministers and global financial institutions) buy this Canadian banking fairy tale is the way the government accounts for the money borrowed to support the banks." The sorry spectacle of Conservat

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Get rid of your mortgage, loans, because interest rates set to rise

Get rid of your mortgage, loans, because interest rates set to rise

Get rid of your loans, guys and gals, because we are going into a high interest rate period. Very high. It will be the equivalent of going into the double digit interest rates we had in the 80s where many people threw their house keys at the bank and we had record numbers of ba

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E-cigarettes save lives, money

E-cigarettes save lives, money

"We know that cigarettes have thousands of chemicals in them and we know that they are killing us. They have been for over a hundred years. So now, the e-cig industry comes along with only one or two chemicals in their mixture and people are freaking out over these as well. Whe

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US inches closer to big bank charges

US inches closer to big bank charges

Federal prosecutors are nearing criminal charges against some of the world’s biggest banks, according to lawyers briefed on the matter, a development that could produce the first guilty plea from a major bank in more than two decades. In doing so, prosecutors are confronting

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Canada’s home sales top predictions; why a real estate crash is inevitable

Canada’s home sales top predictions; why a real estate crash is inevitable

“The assurance of relatively low borrowing costs has likely given home buyers confidence while rising home values have kept new listings at a healthy level. Stable employment has provided some assurance to owners and buyers alike.” Our website is back after many months of

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Comparing today’s recession/depression to the 1980 recession

Comparing today's recession/depression to the 1980 recession

"Much like today, Americans were concerned not only with high unemployment but increasing budget deficits in the early 1980s. A September 1983 Gallup poll found that three-fourths of the public agreed that the federal government's budget deficit was a great threat (42%) or some

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Why savers are getting screwed

Why savers are getting screwed

"Without the intervention of economic policymakers, interest rates would be naturally higher. That would increase the cost of borrowing for businesses and consumers, but there would be some offsetting economic benefits. Savers are getting screwed by the current monetary policy

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Geithner admits USA bankrupt to US Senate

Geithner admits USA bankrupt to US Senate

"Never in our history has Congress failed to increase the debt limit when necessary. Failure to raise the limit would precipitate a default by the United States. Default would effectively impose a significant and long-lasting tax on all Americans and all American businesses

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World economies on verge of currency revaluations to deal with debt

World economies on verge of currency revaluations to deal with debt

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -- Henry Ford Basically what the world central banks are doing is increasing their money by devaluin

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Is Obama the next Mugabe of Zimbabwe?

Is Obama the next Mugabe of Zimbabwe?

"America, Britain, Japan, Germany, France, Sweden, Holland, Norway, Canada and Australia make up the Fishmongers Group and their meeting on Tuesday will deliberate on the state of the inclusive government, debt relief, public finance administration and the controversial economi

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US raiding foreign countries with dollars, not soldiers

US raiding foreign countries with dollars, not soldiers

""The United States is going to China and saying: we want you to commit economic suicide, just like Japan did. We want you to follow the same thing: we want you to revalue your currency, we want you to squeeze your companies, we want you to go bankrupt,” says Michael Hudson,

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Content By: The Coming Depression Editorial Staff (dates cited below)
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bernanke on explosive box

“Brazil’s central bank president, Henrique Meirelles, said “excess liquidity” in the U.S. economy is creating “risks for everyone.” In China, Vice Foreign Minister Cui Tiankai said “many countries are worried about the impact of the policy on their economies.” He also said the U.S. “owes us some explanation on their decision on quantitative easing.” ” — Matthews & Homan, Bloomberg news

Federal Reserve Chairman Ben S. Bernanke said the central bank must focus on the U.S. rather than overseas economies when trying to spur the recovery by purchasing an additional $600 billion in Treasuries.

$600 billion? Considering banks can “create” approximately 100 times their reserve currency in loans (and yes, they are also allowed by law to collect interest on those loans of imaginary money) this means that the US economy will be flooded with $60 trillion in additional dollars from these loans. Considering there’s only $10 trillion currently in the economy that means each dollar will be worth 1/6th of what it is today, that is, unless the US mysteriously starts producing 6 times it’s current GDP over the next few years (impossible).

fractional reserve banking spread chart

fractional reserve banking spread chart

Are you beginning to wonder if the Feds are too small to buy themselves out of this recession? Obama didn’t start this downward spiral but he’s certainly in the thick of it now. It is amusing with the simple assertion by some that say just stop spending as it would be like kicking the train off of the rails only with the global economy in the rail cars.

Did you know about Quantitative Easing before you read this article?

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What’s going on is not deflation but a correction to overstated prices for assets. The fact is several consumer consumables have not grown tremendously in price, but certain assets (including stocks) have, largely on speculation (This is baby boomers pushing to have it all and retire wealthy and part of the Myth of Wealth). Having downward pressure on consumer goods is only natural during this economic swing, people have less money to buy so vendors will have to be more competitive on price.

One issue pressing issue is oil since demand is still increasing and with winter coming diesel and furnace oil will only push the price of gasoline higher. This is going to eat up more of peoples disposable income and reduce further purchases, leading to further downward price pressure.

China’s exports to North America will suffer too, meaning they will have less money to buy US debt. It’ll be interesting to see what North America spent for Halloween as a precursor to Christmas. I think the belt tightening is only starting and we’ll be mirroring Japan’s recession but deeper. This recession hasn’t hit China and other exporting nations severely yet, watch for that to come.

Bernanke Defends Bond Purchases, Predicts Stronger Growth by Bloomberg

Federal Reserve Chairman Ben S. Bernanke said the central bank must focus on the U.S. rather than overseas economies when trying to spur the recovery by purchasing an additional $600 billion in Treasuries.

“Our first objective, the first goal that we have, is to meet our mandate to get price stability and maximum employment in the United States,” Bernanke said yesterday in response to questions from college students in Jacksonville, Florida. “A strong U.S. economy, a recovering economy, is critical not just for Americans but it’s also critical for the global recovery.”

Bernanke came under fire yesterday from officials in Germany, China, and Brazil, who said his plan to pump cash into the banking system may jar other economies and fail to fuel U.S. growth. Critics including Michael Burry, the former hedge-fund manager who predicted the housing market’s plunge, have said Fed policy is encouraging investors to take on too much risk and threatens to undermine the dollar.

“It’s our problem as well if the U.S. is no longer certain that the old recipes don’t work anymore,” German Finance Minister Wolfgang Schaeuble said yesterday in Berlin. The Fed’s injection of $600 billion was “clueless” and won’t revive growth, he said.

Brazil’s central bank president, Henrique Meirelles, said “excess liquidity” in the U.S. economy is creating “risks for everyone.” In China, Vice Foreign Minister Cui Tiankai said “many countries are worried about the impact of the policy on their economies.” He also said the U.S. “owes us some explanation on their decision on quantitative easing.” Source: Bloomberg

So to sum up, we have:

• Rising commodity prices, the effects of which (because of hedging) will be felt most severely in the period January–March of 2011.

• A beggar-thy-neighbor race-to-the-bottom Currency War, that might well devolve into a Trade War, which would force up prices on imported goods.

• A Federal Reserve that does not seem to know what it is doing, as regards another round of Quantitative Easing, which is making the financial markets very nervous—nervous about the Fed’s ultimate responsibility, which is safeguarding the U.S. dollar.

• A U.S. economy that is weak to the point of collapse, where not even 0.25% interest rates are sparking investment and growth—and which therefore prohibits the Fed from raising interest rates, if need be.

• A U.S. fiscal deficit which is close to 10% of GDP annually, and which is therefore unsustainable—especially considering that the total U.S. fiscal debt is well over 100% of GDP. (These 4 points were gathered from Silver Bear Cafe).

These factors all point to one and the same thing: An imminent currency collapse.

One more step in the intentional collapse of the US economy, and the bringing down the the American middle class. The American middle class has to be brought to its knees in order for them to possibly accept global governance by these international bankers. (though I don’t think they will accept it as easily as they think)

Many people worry about different groups taking our freedoms away, but our freedom (and sovereignty) has been long gone to financial terrorists. Debtors are ALWAYS beholden to their creditors and countries are no different. The creditors of the countries are the ones making the decisions; like all this “free trade,” which only benefit their global aspirations.

This all because certain politicians sold their countries and people out to these international financial terrorists. Indeed, the one world government is the plan with a few self declared chosen running the show and you and I as serfs – if we survive.(maybe if we are self sufficient)

Related posts:

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This entry was posted on Saturday, November 6th, 2010 at 9:35 pm and is filed under Main Street. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

1 Comment

  1. April 15, 2011 @ 2:38 pm


    I was well aware that this would cause hyperinflation. I also know that at the Bilderbergers, one of their stated goals was to cause hyper inflation. What many business mags have failed to mention is that this stupidity was all planned in order to cause the population to capitulate to bankster control.

    I repudiate this concept. I want to stop this insanity. I want Bernanke and all the Bilderbergers arrested for TREASON.

    MK

    Posted by MK

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