$516 Trillion `Time Bomb' Set To Destroy World Economy
10-15-2008, 05:01 PM
$516 Trillion `Time Bomb' Set To Destroy World Economy
Not entirely comfortable with this source, but the essay is very straightforward and seems well documented...
October 13, 2008
$516 Trillion `Time Bomb' Set To Destroy World Economy
By: Sorcha Faal
Today our World is staring into the abyss of total economic collapse on a scale unseen since the Great Market Crash of 1929, and which has been succinctly stated by London economic expert Will Hutton who has stated:
"In the week of the crash in 1929, Wall Street fell by 23 per cent. Last week, it fell by 18 per cent, London and Frankfurt by 21 per cent and Japan's Nikkei by 24 per cent. Every major financial centre's interbank market is frozen. Trust and confidence have collapsed; the global system is paralysed on a scale that now surpasses 1929. There is a combination of a worldwide bank run, seizure of credit markets and collapse of asset values that could plunge the globe into a depression."
Stanford University economist Nick Bloom has further warned the London Times that "the recent volatility of the stock market is on a par with the 1929 crash and subsequent episodes in that period when the Depression took hold. Bloom, who spends some of his time at the London School of Economics, is one of a number of economists who think it is not the level of the stock market that counts but the extent to which it fluctuates. Recent days have seen some of the wildest fluctuations ever, which leads him to think a bad recession is on the way. Britain, he says, could experience a 3% contraction in the economy next year. That may not sound much, but if it happens, it will count as the worst year since the 1930s."
[Note: "In October 1929 shares on Wall Street fell sharply following a speculative boom during the "Roaring Twenties". In two days the Dow Jones industrial average fell by 25% (ending on Black Tuesday, 29 October). The volume of stocks traded set a record that was not broken for 40 years. When it finally reached its record low in July 1932, the Dow Jones had fallen 89%, and it did not recover to 1929 levels until 1954." BBC Worldwide News Service]
But, to the direst warning of the abyss our World is facing we can read as reported by the London Times News Service in their article titled "IMF warns that markets could collapse by another 20% ", and which says:
"The world is on the brink of financial meltdown, the head of the International Monetary Fund (IMF) said last night. His bleak warning came as finance ministers tried to calm the frenzy in markets that saw share prices crash by more than 20% last week.
Separately, the IMF's chief economist predicted that shares could slump by another 20% before stabilising. G7 finance ministers pledged to take all necessary steps to support the banking system and stave off an economic slump.
Dominique Strauss-Kahn, the head of the IMF, warned that the measures so far "have not yet achieved the goal of stabilising markets and bolstering confidence".
He said: "Intensifying solvency concerns about a number of the largest US-based and European financial institutions have pushed the global financial system to the brink of systemic meltdown."
Even worse, and to what US billionaire Warren Buffett has called the real 'weapons of mass destruction', the ticking $516 Trillion `time bomb' of the Global derivatives market is set to explode upon all of us, and as we can read as reported by London's Independent News Service:
"The market is worth more than $516 trillion, (£303 trillion), roughly 10 times the value of the entire world's output: it's been called the "ticking time-bomb".
It's a market in which the lead protagonists typically aggressive, highly educated, and now wealthy young men have flourished in the derivatives boom. But it's a market that is set to come to a crashing halt the Great Unwind has begun.
Last week the beginning of the end started for many hedge funds with the combination of diving market values and worried investors pulling out their cash for safer climes.
Some of the world's biggest hedge funds SAC Capital, Lone Pine and Tiger Global all revealed they were sitting on double-digit losses this year. September's falls wiped out any profits made in the rest of the year. Polygon, once a darling of the London hedge fund circuit, last week said it was capping the basic salaries of its managers to £100,000 each. Not bad for the average punter but some way off the tens of millions plundered by these hotshots during the good times. But few will be shedding any tears.
The complex and opaque derivatives markets in which these hedge funds played has been dubbed the world's biggest black hole because they operate outside of the grasp of governments, tax inspectors and regulators. They operate in a parallel, shadow world to the rest of the banking system. They are private contracts between two companies or institutions which can't be controlled or properly assessed. In themselves derivative contracts are not dangerous, but if one of them should go wrong the bad 2 per cent as it's been called then it is the domino effect which could be so enormous and scary.
Most markets have something behind them. Central banks require reserves something that backs up the transaction. But derivatives don't have anything because they are not real money, but paper money."
This concept of `not real' money plunging the World's economic systems into the abyss has been further emphasized by Yale economist Robert Shiller, who has stated bluntly:
"If you're looking to track down your missing money figure out who has it now, maybe ask to have it back you might be disappointed to learn that is was never really money in the first place.
The notion that you lose a pile of money whenever the stock market tanks is a "fallacy." He says the price of a stock has never been the same thing as money it's simply the "best guess" of what the stock is worth.
"It's in people's minds," Shiller explains. "We're just recording a measure of what people think the stock market is worth. What the people who are willing to trade today who are very, very few people are actually trading at. So we're just extrapolating that and thinking, well, maybe that's what everyone thinks it's worth."
Shiller uses the example of an appraiser who values a house at $350,000, a week after saying it was worth $400,000. "In a sense, $50,000 just disappeared when he said that," he said. "But it's all in the mind."
But, in our World today, and where perception holds much greater weight than reality, this massive battle between the forces of `real money' and `not real money' are having their intended, and designed effect, and which virtually assures the continued destruction of the current Global economic system, and as we can read:
"For many bystanders, the drama is compelling. Newspapers and TV channels report the crisis much as they did Hurricane Katrina or the Indonesian tsunami: a mixture of shock, awe and lots of computer-generated graphics. We know in our hearts that this will hurt us all, but the lingering feeling that the world has changed for ever in just 30 days leaves us giddy.
The anxiety is also contagious. No matter how secure one's personal finances, it is impossible not to feel a frisson of panic at the thought that bank ATM machines might run out of cash, or pay-cheques might vanish into the ether: both very real prospects until the Government stepped in to underwrite the bank clearing system on Tuesday. Even now, there are scenarios so destabilising they are barely mentioned.
Our fear explains why Friday's sell-off was so brutal. This delayed reaction to a month of almost unbelievably bad news in the credit markets was driven primarily by ordinary investors Mr & Mrs Average finally deciding to cash in their pension nest egg for fear it might be cracked beyond repair by Monday.
All round the world, fund managers reported a huge surge in customers demanding their money back. The professionals panicked long ago.
Ironically, the worst of the financial crisis may, just possibly, have passed. Friday also exhibited many of the hallmarks of what market historians call "capitulation" the moment when even the optimists lose hope.
The sad lesson of past stock-market crashes is that the point when ordinary punters finally realise it is time to get out usually marks the point when it is time for the smart money to get back in again.
But the difference now may be in what happens beyond the financial markets. Usually, a banking crisis follows some form of economic crisis: lenders are hit by wave after wave of customer bankruptcies until they themselves cannot take any more and topple over. This time, the banking collapse has preceded the recession.
Although the crisis started with the default of some sub-prime mortgages in the US, the scale of the global market losses (and government bail-outs) long ago exceeded the size of the initial defaults.
Instead, last week's stock market rout marked the point when the usual direction of cause and effect was reversed: now it is the real economy that is expected to take its cue from the markets.
Countries could be next to see their solvency questioned. Iceland is already seeing its currency under attack. Difficult places such as Pakistan, Ukraine and Kazakhstan are looking vulnerable with devastating consequences for political stability."
The importance of understanding all of these things, no matter how complicated they may seem to be, provides not only true knowledge, but true protection against the worst calamities yet to come.
And towards this end it is first, and foremost, important to come to a full understanding that what is currently being viewed as an `economic' crisis is, instead, a major shifting of our World's current power structure from one of individual Nation States to one frequently referred to as a New World Order, and which calls for the abolishment of all Nations to be replaced with a One World Government.
Now history has given us the guideposts to spot along the road to One World Government, the most important of them being that any major shift in Global governance can only be achieved by its resting upon what is called `The Triads of Reason', and which in our current circumstance two have already been put into place with the Global Warming and now Global Economic Chaos and leaving only the last one, Total Global War, to be thrust upon an unsuspecting World.
For our World's hope there are those factions operating within the United States desperately working to avert the final leg of this triad, Total Global War, from being put into place, and as we have reported on many times in the past including our October 9th report "Top US Generals Reach Out To Russian General Staff To Avert Global War".
European factions against One World Rule are also attempting to avert Total Global War and are reporting that they have `shelved' their differences with Russia in an attempt to avert the current crises from escalating, and which is a most significant move in that Russia now stands alone of all the World's Nations in being able to contain those advocating the complete destruction of our Earth as we know it.
In our discussion of these things it important that we acknowledge the beliefs of those advocating for the establishment of The Triads of Reason, and which are actually based upon sound scientific principles as first espoused by nineteenth-century German philosopher Friedrich Nietzsche who stated "out of chaos comes order":
"According to a computational study conducted by a group of physicists at Washington University in St. Louis, one may create order by introducing disorder.
While working on their model a network of interconnected pendulums, or "oscillators" the researchers noticed that when driven by ordered forces the various pendulums behaved chaotically and swung out of sync like a group of intoxicated synchronized swimmers. This was unexpected shouldn't synchronized forces yield synchronized pendulums?
But then came the real surprise: When they introduced disorder forces were applied at random to each oscillator the system became ordered and synchronized.
"The thing that is counterintuitive is that when you introduce disorder into the system when the [forces on the pendulums] act at random the chaos that was present before disappears and there is order," said Sebastian F. Brandt, physics graduate student and lead author of the study which appeared in the January 2006 edition of Physical Review Letters."
Towards this end, the forces advocating for the Total Global Destruction, through Climate, Economies and War, envision an Earth free from these things in what they intend to rebuild in its place where no more wars will be allowed, poverty will be eliminated as Global wealth is redistributed, the environment is protected by the banning of genetically modified foods and pesticides, where prisons will be emptied of all but the most violent of criminals, and the main focus of the human race will be reaching to the stars instead of remaining on an World rapidly running out resources to sustain us.
To the desired end goal of the New World Order advocates there should be no disagreement. But, to the means they are employing in order to obtain their goals (order out of chaos) one can certainly raise strong objections to them as literally hundreds of millions of human lives are now hanging in the balance should they succeed.
Though too much uncertainly remains in all of these equations as to whom will ultimately prevail in this titanic struggle, it does remain a fact that in these very days we are living these issues will be decided, and which therefore leaves only one option for all of us .how to survive.
© October 13, 2008 EU and US all rights reserved.
[Ed. Note: The United States government actively seeks to find, and silence, any and all opinions about the United States No interviews are granted and very little personal information is given about our contributors, or their sources, to protect their safety.] except those coming from authorized government and/or affiliated sources, of which we are not one.
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10-15-2008, 05:08 PM
$516 Trillion `Time Bomb' Set To Destroy World Economy
The Quadrillion Dollar Powder
Keg Waiting To Blow
By Bob Chapman
Derivatives at the heart of the crisis, catastrophic losses are inevitable, financial system headed for oblivion, the new world disorder, EU doomed, Credit Default Swaps at the heart of the problem, Plunge Protection Team history, coverups for globalization failures, Bloodbath for the Yen...
The heart of the current crisis is the quadrillion plus derivative market. Roughly half of these derivatives are listed on exchanges, but the other half are on the totally unregulated, totally opaque, poorly documented and mostly naked (no reserves or collateral given to secure performance) OTC derivatives market. The subprime and Alt-A mortgage debacles, and the soon to be recognized prime mortgage debacle, are little more than a side show with what will become their one to two trillion in losses which the Phony-Fraudie nationalization and the Paulson Ponzi Plunder Plan are meant to address, albeit futilely. However, the real estate derivative problems created by these debacles have been important catalysts leading to the loss of confidence that is preventing banks from lending to one another, because these problems, like a Zippo lighter on high flame, metaphorically speaking, have lit the fuse leading to the quadrillion dollar powder keg waiting to blow any day now, and Hanky Panky and Helicopter Ben are running around like raving, corporatist, fascist lunatics trying to stomp out the lit fuse before the whole world financial system goes up in a blaze of glory.
It is this powder keg that has everyone trembling with fear and foreboding, because the inevitable losses will be catastrophic, with losses which may exceed the entire world's GDP, thus obliterating the balance sheets of every major Wall Street commercial bank, including the Fed itself, while virtually every major bank and financial institution in nations throughout the world join them on the receiving end of a destructive juggernaut of loss, insolvency, failure and bankruptcy. In the aftermath, most will be nationalized. All of Western Civilization is about to become a smoldering collection of fascist police states.
The entire world financial system is headed for oblivion, and there is nothing on earth that can stop it. All they can do currently is try to delay and hide the destruction so that they can continue to milk their Ponzi system dry, ripping off the sheople in one final orgy of fraud and profligacy before the government and financial system are merged into an all-powerful super-entity that will rule all non-insider institutions with an iron fist. Frankly, from what we have seen lately, we are already there. The final step to nationalization of our financial system will be little more than a formality. Their intention is to take total control, to make markets do whatever pleases them, thus creating their own reality.
The Paulson Ponzi Plunder Plan is the first installment of their final attempt to bankrupt the sheople, who they hope to beat into submission by hyper-inflating and Weimarizing them with bailout after bailout, ad nauseam, knowing full well that these bailouts are futile and useless. The Illuminati will now attempt to force the poor, hapless sheople into a fascist police state as the next giant step toward the creation of a New World Disorder called Novus Ordo Seclorum (a New Order of the Ages), as set forth on the back of every dollar bill under the all-seeing eye overlooking the unfinished pyramid, both symbols of the new age, the occult and the ancient mystery religions. What else would you expect from the satanic trillionaires who hope to become the new lords of the universe. Nice try fellas, but we suspect that God, the current and eternal Lord of the Universe, has other plans. Many of their own henchmen are going to go down in the chaos to follow, but the raving madmen we refer to as the Illuminati will gleefully sacrifice them on the alter of world government.
The New World Disorder is the hope and dream of the Illuminati which they have been planning for centuries. But we believe that something is going to happen on the way to that Forum, and that in the end they are all going to end up "swingin' in the breeze." Their plans are unraveling. The destruction is far greater than they had planned. The whole plan is going up in smoke thanks to the bungling of their "Chaos" henchmen in our government and on Wall Street. To think that they attempted to use naked credit default swaps to cover bonds and derivatives secured by houses borrowers could not afford on such a gargantuan scale tells you everything you need to know about their financial acumen.
They even permitted ownership of derivatives by those who did not own the underlying assets to be hedged (known as "dry derivatives," which are essentially the equivalent of insurance policies taken out on someone or something in whom the policy holder has no insurable interest), thus turning the world's financial markets into a giant gambling casino, with the added bonus that many unscrupulous people were put into a position where they could force an event that would give them a big payoff without suffering any pain on their end. In essence, by coming up with all these obtuse, Byzantine, rocket-scientist-created derivatives, the smugly clever Illuminati have finally outsmarted themselves.
Then there is the one-rate-fits-all plan in the now-doomed European Union. What a freaking blooper that was! We have been saying that this conglomerate banking scheme could not work from the inception of this ill-conceived union of what are very diverse and culturally unique nations, but of course no one listened. They have so thoroughly destroyed the financial system that there is now no hope of keeping the EU together. The plan did not even work well in a period of substantial prosperity, and now they are going to attempt to keep the plan going in circumstances, which are the antithesis of prosperity. Good Luck! If they hadn't allowed their system to be corrupted by all these financial weapons of mass destruction, out of their unending, boundless greed to milk their sheople, they might have had a shot at preserving the EU and then moving on to world government.
Now they are the proud owners of 75% of all the toxic waste derivatives produced by the American branch of the Illuminati. And they have piles of banking bonds covered by credit default swaps issued by AIG, and by who knows what other zombie entity, so their stock and bond ratings, as well as their cost of capital, are in serious jeopardy. As the implosion of these derivatives transpires, the majority of their economies are going down in flames as inflation, recession, and eventually depression set in, adding to their already substantial woes. Their fascist dream is about to go up in flames along with their precious EU, the revived British Mercantilist system and the debt-based, fractional reserve Ponzi scheme of the evil European bankers and their Black Nobility clientele. Their American counterparts will fare little better.
Note that the major Wall Street investment banks, all leveraged to the hilt, are now all gone, whether by bankruptcy, buyout or change of charter. Goldman Sachs, the only investment bank, which has retained its namesake, other than the bankrupt Lehman Brothers, is on the verge of going under in a Bear Stearns-like squeeze on their liquidity and net equity. The recent demise of all these investment banks is just the first round. Things are going to get much worse as the money from the Paulson Ponzi Plunder Plan gets doled out to the various Illuminist toadies. The latest idea, suggested by the Bank of England (what a feeling of confidence we get knowing that this bastion of financial acumen supports this idea!) and now adopted by Hanky Panky, is to make liquidity injections into the fraudster banks in return for equity positions, such as preferred stock ownership.
What a joke. Like that is going to chase the credit default swap monster away and restore a feeling of safety and confidence so banks can start lending again. We have news for you. Even the bondholders of these toxic waste sites are going to get vaporized, so the sheople stockholders can expect to get a Big Zippo. At least by acquiring toxic waste assets we might have an outside chance of picking up some chump change later, but with this new plan to fleece the sheople, you are throwing your money down a rat hole. We are told that this will get the money to where it is needed faster. The only "faster" we see is the rate at which taxpayers will get fleeced.
All these toxic cesspool repositories are headed for bankruptcy and nationalization. All you will be doing is keeping people employed with exorbitant salaries and bonuses as they continue to rip you off with insider trading and fraudulent derivative schemes. These witless, pipe-dreaming dolts seem to think that they can get their fractional reserve multiplier going again as the Illuminati try to reinvigorate and re-inflate rampant market speculation along with their profligate money and credit system. They seem to think they can re-inflate the otherwise tanking real estate markets, using their perfect fraud machines, Phony and Fraudie, because they no longer have to worry about ticking off wealthy, influential and politically connected entities that own their stocks. All losses that are suffered by Phony and Fraudie will now go directly to the sheople, do not pass Go, do not collect $200.
What are these people thinking? Again we say: "It's the swaps, stupid!!!" The credit default swaps will be the first to blow as we move from hundreds of billions to trillions in quarterly losses. That will send risk into the ozone while the bailouts send inflation into the stratosphere. And that of course means double-digit interest rates are on the way, which are the main fuse leading to the interest rate swap powder keg, which is the largest of all the derivative powder kegs by notional value, and thus by potential loss.
Take JP Morgan Chase for example, and their $90 trillion derivative portfolio by notional value. Let's say that $50 trillion are in interest rate swaps. If they have even a mere two percent overhang where they have to pay out variable rates of interest on two percent more of their total interest rate swaps than the portion of swaps on which they are, by contrast, receiving variable rates of interest, they could suffer horrendous losses that could easily put them under. Let's say that everything balances at 4%. But now rates move to 14% as everyone totally ignores the rates set by the central banks sending LIBOR and T-Bill rates to unheard of levels, which are the types of rate indexes commonly used in these swaps. (Note that corporate debt in Europe, due to the lack of so-called insurance from credit default swaps, has already doubled from previous lower single digit rates into much higher double-digit rates in the 12% area).
Two percent of $50 trillion is a trillion dollars of notional value overhang on which you are now paying out ten percent more, and ten percent of one trillion is $100 billion, a killer loss. That would put them under. Even an overhang of only one half of one percent pumps out a loss of $25 billion. And what if the overhang is 5%, or 10%, or 20%? With an overhang of 20%, we hit one trillion in losses. Now, what if rates go to 24%? And this is only one bank! As you can see, assuming that the system can survive the credit default swaps, which we very seriously doubt, we will be jumping out of the fire only to land face down in a red-hot frying pan.
It is only fitting that the credit-default swaps lie at the heart of the problem, which the fraudster banks now face. When you look at what has been done by these reprobates in the past, this is a most fitting fate for them. First, they had President Reagan pass an Executive Order in 1988 forming the President's Working Group on Financial Markets so they could manipulate markets 24/7 with the PPT. That was forced by the 1987 Stock Market Crash, an event orchestrated by the Illuminati to convince everyone that we had to have an interventional team to stop such extreme market gyrations.
Then Slick Willie does away with Glass-Steagall in 1999 to do away with the system of checks and balances that allowed banks to pass on paper that was falsely rated as AAA on to their patsy clients. Then for a double whammy, Slick Willie leaves OTC derivatives unregulated with the passage of the Commodity Futures Modernization Act in 2000, so Wall Street could write insurance policies called credit default swaps without having to comply with annoying, silly and burdensome rules requiring such things as loss reserves or an insurable interest. These were all passed to cover up the devastating losses our economy was suffering on account of free trade, globalization, off-shoring, outsourcing and both legal and illegal immigration.
The PPT moved our markets, contrary to what market fundamentals would indicate, to give the appearance of prosperity when we were really getting hammered by the free trade agenda. Our government chimed in with their deceitful and fraudulent economic statistics by use of hedonics. Then credit default swaps were used to falsely suppress interest rates by insuring the risk of default for potential investors, and never mind that there were no loss reserves, collateral or requirement of an insurable interest. AAA credit was assigned to otherwise risky companies based on Ponzi scam bond insurers who were insuring bonds with little or nothing to back up their promises.
If our corporations were forced to pay the higher rates demanded by the market without the benefit of these swaps, our corporate earnings would have been dismal, and would have reflected the losses suffered by the globalist free trade agenda. Then the falsely rated subprime derivatives were created so that Wall Street could earn oodles of fees, commissions and spreads by continually rolling over the same money which they were borrowing short-term and lending long-term. These earnings helped to boost our GDP and thus to further cover up the losses being suffered by our bloodied manufacturing sector as everyone became Walmart greeters and hamburger flippers instead of being tool and die makers and machinists and as 5 million of our best-paying jobs were moved overseas. Let's hear it for the Illuminist free trade agenda. Yeah, rah.
It appears that for whatever reason the Illuminati now want Obama to become president instead of McCain. The current financial carnage is of course being associated with Caligula, and since McCain is a Caligula Clone, by association he gets hit vicariously with voter ire. Listen to the two of them promise to save the borrowers who were given mortgages based on fraudulent information about their financial circumstances. Let's bail them out too. Why should the fraudsters on Main Street be treated any differently than the fraudsters on Wall Street? Now we will have equal opportunity bailouts. It's enough to make you puke. Worse yet, Obama is the biggest recipient of big banking largesse in the form of campaign contributions, especially from Fannie and Freddie, and he actively encouraged these organizations to pump out mortgages to people who could not afford them. Fortunately for Obama, McCain is not much better.
So, what's going down in Illuminati town? In pondering the current pounding of gold and silver, we smell lots of rats. We hold out to you the following potential scenario: On September 15 and 16, the Illuminati thought they had the precious metals markets under wraps, driving gold below $800 per ounce and silver below $11 per ounce, in anticipation of their coming announcement of the Lehman Brothers and Merrill Lynch debacles that were made public late on September 16. Then the specs go wild, and gold is up $90 in one day, giving the Illuminists a collective myocardial infarction. As punishment for such insolence, on Friday, September 19, the SEC takes away their right to short 800 financial companies, a big money maker. They are told to butt out, or they will never get to place another short again, but if they cooperate, they will get the mother of all crashes, which they can short with impunity. Note how open interest in COMEX gold futures declined from 398,386 contracts on September 15 to 321,021 on October 8.
Yet the price of gold during this period kept pressing past $900, which means that there was some short-covering to the tune of some 77,000 contracts. The specs under threat from the SEC, are told to butt out while the commercials cover their shorts. They are told that a crash is on its way, so they short all the non-financials, and stay out of the commodity markets.
Then the Paulson Plan is introduced around September 20, and prior to the vote, the markets are crashed to make it look like a "no" vote will send us into the deepest depths of Mordor, knowing all along that markets will be crashed anyway no matter how Congress votes. Fortunes are being made shorting with knowledge of when markets will be crashed. A short-covering rally occurs on Tuesday, September 30, as word is received that the Paulson Plan will be reconsidered and probably passed, but insiders know this is all for show as roughly half of Monday's 777 point loss on the Dow is recovered. Markets are crashed again on October 1 and 2 erasing Tuesday's gains, those being the two days leading up to the second vote on October 3, to convince Congressional boneheads that the Paulson Plan must be passed to save the markets, and when the vote starts to look positive on October 3, up the markets go in the early going that day just before the vote in order to give our bribed and threatened Congressional morons the impression that markets will rally if the Paulson Plan is passed.
Congressional dimwitted idiots pass the bill, and the markets nose-dive, all as planned. On October 6, paragon of virtue Jim Cramer scares the living daylights out of retirees, telling them they must get out of the markets. Panic hits the streets, and the cascade of losses is under way. The shorts are now cleaning up and are rolling in dough, but of course that was not enough for them. The Paulson Ponzi Plunder Plan also calls for an end to the ban on shorts against financials just before midnight on Wednesday, October 8, and because the specs have all been good little boys, the SEC lets the ban on shorts expire even though they could have extended it another week.
The bloodbath continues on Thursday and Friday as the financials get bombed, the specs are fat and happy, and down go gold and silver while the grateful specs look the other way. Meanwhile, the carry trade is unwound and both the dollar and the yen go ballistic due to the crashes around the globe which send traders into yen and dollars to buy Japanese and US treasuries, respectively, and the yen even outperforms the dollar, causing precious metal liquidations by thoroughly bloodying carry traders while the stronger dollar hits the metals also. And of course, just as we predicted, oil gets hammered below 80, giving more dollar support through the euro effect, and reducing the need for gold and silver as a hedge against higher oil costs.
http://www.theinternationalforecaster.c ... orecaster_
10-15-2008, 07:55 PM (This post was last modified: 10-15-2008 07:58 PM by ---.)
$516 Trillion `Time Bomb' Set To Destroy World Economy
this was on TIU - I thought it was worth seeing.
Dankner buys more Credit Suisse, minutes before shares skyrocket
10-16-2008, 01:18 PM
$516 Trillion `Time Bomb' Set To Destroy World Economy
Given that this comes from sorcha Fall can it be trusted?
10-16-2008, 08:01 PM
$516 Trillion `Time Bomb' Set To Destroy World Economy
Quote:Given that this comes from sorcha Fall can it be trusted?
IMO, no but Faal aka Booth could tell me the sky is blue and I would have to find three other corroborating sources before I start to consider it.
There are plenty of other more reputable sources that are saying much the same thing, so even after a while the disinfo man has to jump on the bandwagon to give it some credibility.
“Today’s scientists have substituted mathematics for experiments, and they wander off through equation after
equation, and eventually build a structure which has no relation to reality. ” -Nikola Tesla
"When the power of love overcomes the love of power the world will know peace." -Jimi Hendrix
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