CIA Insider Warns: “25-Year Great Depression is About to Strike America”

CIA Insider Predicts a $100-Trillion Worldwide Economic Breakdown and an Extended Period of Global Anarchy

The 5 Catalysts That Will Trigger an Economic Collapse

Jim Rickards Infomercial - A Summary of his Views

LoneStarWhiteHouse
September 2, 2014

We'll kick off September by providing a link to an infomercial that Jim Rickards has just done. It is a fairly in depth interview that summarizes his views. The interview emphasizes Rickards' background and experience in working for US intelligence agencies who consult with him on forecasting possible future economic scenarios.

Readers should know this is an infomercial designed to get the listener to purchase a package of materials Jim Rickards has produced which includes his new book The Death of Money. Normally I don't link to this type of promotional material because I am not in the business of selling anything here. For the record, I have no affiliation with Mr. Rickards or any of the published materials he offers. I don't have affiliations with anything I link to on this blog, period. Just to be clear, by affiliations I mean an arrangement whereby I would receive compensation for linking to their product or service. By design, I receive no compensation of any kind from anyone related to articles I post on this blog. 

In this case I am providing the link because the free infomercial itself does provide quite a bit of useful information and some good charts and graphs Jim Rickards uses to make his points. It shows you how he backs up his opinions with factual data you can verify yourself, which I think is important. And Rickards does obviously have connections with the US intelligence agencies, which add credibility to his views in my opinion. Some, of course, take the view that Mr. Rickards may be a "disinformation agent" for those intelligence agencies. I disagree as noted in this article. But readers can decide for themselves.

For those who may want to get his book, this infomercial will end with a sales pitch that offers you his book plus some other materials for about $40. The book itself sells for about $20 on Amazon so the extra materials cost about $20. 

I did order this package for my own benefit in preparing articles for this blog. For those who like Jim Rickards and want to get his book anyway, you will probably feel like this package is worth the $40. I felt the price was appropriate for the materials offered.

It includes some additional material left out of his book and also his recommendations to people as to how to allocate their investments to prepare for what he thinks is coming. He also lists 7 "signposts" to watch for that will help let people know when the big changes might be about to take place. I will say that we have covered 5 of the 7 signposts here on this blog pretty extensively. He also adds a list of what he says are the safest banks and credit unions and the 10 safest cities in the US to weather an economic storm. Viewers can decide if they are interested in that information.

For those unable to afford it, you can find a lot of what is in this material right here in the archived articles on this blog. For example, a couple of the 7 signposts mentioned are to watch the price of gold and to watch for final approval of the IMF reforms. We have covered both of those topics extensively here (without realizing they were on his list).

But I have no problem saying that for those interested, the package of materials is worth $40 if you would like to have a comprehensive summary of Rickards forecasts and more detailed suggestions on how to prepare for the changes he sees coming. Regardless, the linked infomercial above is also a very good free overall summary of his forecasts and some of the data supporting his forecasts. He also provides some limited general comments on how to prepare.

I will add that we have Jim Rickards forecasts on record here and we will track them over time to see how well he hits them into next year. Right or wrong, we will report it here. If his forecasts prove to be accurate, then people need to be aware of them and make what preparations they can ahead of time. If he misses on his forecast, we need that information as well to assess the reliability of his future forecasts.

There are very few people who have connections "inside the system" who will discuss these issues in public. So we focus on people like Jim Rickards and Andrew Huszar here because they offer a credible alternative view to the conventional mainstream view for readers to consider.

Added note (1-01-2015): A question I get here regularly is how can people prepare for the upcoming change. On January 1, 2015 I wrote this blog article to address that question.

CIA Insider Warns: “25-Year Great Depression is About to Strike America”

RonMamita
September 17, 2014

I found this interesting report today, and obviously it is a marketing ploy to sell gold, books and subscriptions, but could it also be a disclosure? Over the years of hearing Jim Rickards speak, I have suspicions he may be a agent for the IMF or the banking cartel. I post it below for curiosity value, as some insiders may disclose factual information…~Ron
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By MONEY MORNING STAFF REPORTS

According to one of the top minds in the U.S. Intelligence Community, that is when the United States will enter the darkest economic period in our nation’s history.

A 25-year Great Depression.

Does This Signal the End of the Dollar?

An alarming pattern has caused many in the Intelligence Community to secretly prepare for a “worst-case scenario.”

Click here to see it….

Jim Rickards: Coming Economic Depression

In an exclusive interview with Money Morning, Jim Rickards, the CIA’s Financial Threat and Asymmetric Warfare Advisor, has stepped forward to warn the American people that time is running out to prepare for this $100 trillion meltdown.

“Everybody knows we have a dangerous level of debt. Everybody knows the Fed has recklessly printed trillions of dollars. These are secrets to no one,” he said.

“But all signs are now flashing bright red that our chickens are about to come home to roost.”

During the discussion, Rickards shared a series of dangerous signals he fears reveals an economy that has reached a super critical state.

One of the signals the CIA is most concerned with is the Misery Index.

Decades back this unique warning sign was created for determining how close our country was to a social collapse. It simply adds the true inflation rate with the true unemployment rate.

However, the Federal Reserve has repeatedly changed the way the Misery Index has been calculated over the years. Which Rickards believes is now being used to cover up the true scope of the problem.

“Today you rarely hear the government talk about the Misery Index with the public,” Rickards said. “The reason is they may not want you to know the truth. And the truth is, the Misery Index has reached more dangerous levels than we saw prior to the Great Depression. This is a signal of a complex system that’s about to collapse.”

During the shocking interview Rickards revealed the 5 dangerous “flashpoints” the Intelligence Community is closely monitoring that they believe will unleash this catastrophe.

And he also described how it would all unfold.

“I expect the first phase will appear as a nearly instantaneous 70% stock market crash. From the outside, nobody will see it coming.” Rickards explained.

“Once it becomes clear that it’s not a flash crash – it’s a systemic meltdown in the economy itself, that’s when the gravity of the situation will sink in. And there will be no digging out from it.

“$100 trillion is a conservative estimate for the damage. A lot can happen over 25-years as our country struggles to recover from this.”

Along with his CIA responsibilities, Jim Rickards has spent more than three decades on Wall Street as a leading international investment banker, hedge fund manager, and as the architect behind the technology nicknamed “the brains” of the NASDAQ.

This unique skill set has placed him at the center of some of the most important events in recent history.

For instance, Rickards helped negotiate an end to the Iranian Hostage Crisis in the early 1980s.

Then, in the late 1990s, despite being one of its most outspoken critics, the Federal Reserve called on him to step in to prevent a $1.25 trillion Wall Street meltdown during the Long Term Capital Management crisis.

And after 9-11, the CIA tasked him with tracking down potential terrorist insider trading that took place prior to the attacks.

Over 2X More Dangerous Than The Great Depression

Does this chart prove a 70% stock market crash is imminent?

This led to him helping lead a sensitive operation called Project Prophecy.

The mission was to use the financial markets to predict pending national security threats from terrorists, rival nations, and from internal weaknesses lurking inside our economy.

The system he built through Project Prophecy proved its accuracy on August 7, 2006, when it detected the warning signs of an impending terrorist attack.

Three days later, in London, a plot to blow up 10 U.S. passenger jets was thwarted. And 24 Pakistani extremists were arrested.

However, Rickards now warns that the next attack is going to come from within. And he is not alone in his fears.

Recently, a sensitive report containing the consensus view of all 16 branches of the U.S. Intelligence Committee surfaced.

It revealed that these agencies have already begun to jointly estimate the impact of  “the fall of the dollar as the global reserve currency.”

Details of Government’s “Day After Plan” Emerge

Warning: Emergency measures have already been put “in play” for this 25-year Great Depression.

And our reign as the leading superpower being annihilated in a way “equivalent to the end of the British Empire in the post-World War II period.”

The nightmarish endgame presented in this report involved “a worldwide economic breakdown and an extended period of global anarchy.”

And Jim Rickards believes we can no longer stop this, we can only prepare for it.

“Look at it this way. Americans are standing at the bottom of a very tall mountain – Mt. Everest, Mt. Kilimanjaro…they look up and see an avalanche barreling down. Determining the one snowflake that started this chaos shouldn’t be our focus. Recognizing the severity of the situation and moving to safety should be,” Rickards explained.

The question we should all be asking ourselves now is “what if he’s right?”

Source: http://moneymorning.com/ext/articles/rickards/25-year-great-depression.php?iris=252778

Jim Rickards: The Coming 25-Year Great Depression

By Money Morning

CIA Insider: Project Prophecy 2.0

Should the rise of conflicts across the Middle East and Ukraine serve as a warning sign that something much more dangerous is approaching? According to Jim Rickards, the CIA's Asymmetric Warfare Advisor, the answer is yes. In a startling interview he reveals that all 16 U.S. Intelligence Agencies have begun to prepare for World War III. Making matters worse, his colleagues believe it could begin within the next 6 months. However, the ground zero location for this global conflict is what makes his interview a must-see for every American. Take a few moments to watch it and decide for yourself.

Many in the U.S. Intelligence Community fear a 25-year Great Depression is unavoidable…

What if Jim's Right?

STEVE MEYERS:

My name is Steve Meyers.

And I want to thank you for taking part in this exclusive Money Morning interview with Jim Rickards, the Financial Threat and Asymmetric Warfare Advisor for both the Pentagon and CIA.

Recently, all 16 branches of our Intelligence Community have come together to release a shocking report.



These agencies, that include the CIA, FBI, Army, and Navy, they've already begun to estimate the impact of the fall of the dollar as the global reserve currency.

And our reign as the world's leading super power being annihilated in a way equivalent to the end of the British Empire, post-World War II.

And the end game could be a nightmarish scenario, where the world falls into an extended period of global anarchy.

Jim Rickards fears he and his colleagues' warnings are being ignored by our political leaders and the Federal Reserve, and we're on the verge of entering the darkest economic period in our nation's history.

One that will ignite a 25-year Great Depression.

Today, we're going to examine everything he's uncovered because the bedlam could begin within the next six months.

Which is why every American should hear his warnings before it's too late.

Jim Rickards, thank you for joining us.

JIM RICKARDS:

It's my pleasure, Steve. Glad to be with you.

STEVE MEYERS:

In the early '80s, you were a member of the team that helped negotiate an end to the Iran hostage crisis.

In the late '90s, when it was discovered that the Wall Street firm Long-Term Capital Management was about to cause a total collapse of the financial markets, the Federal Reserve had to turn to you in order to stop this catastrophe from plunging America into a recession.

And then, after 9/11, you were tasked by the CIA with investigating potential insider trading that took place prior to the terrorist attacks.

JIM RICKARDS:

That's exactly right.

The problem was the CIA didn't have any capital markets expertise.

And why should they?

Prior to the beginning of globalization, capital markets weren't really part of the battle space.

So the CIA engaged in some outreach, they recruited certain people, myself included, to bring the Wall Street expertise to the agency.

This Led to Project Prophecy

So, what the CIA said was, well, if there's going to be another spectacular attack…

Using price signals to determine the actions of participants in the market, whether it be terrorists, or strategic rivals of the United States…

Could you spot it?

Could you get the information, and actually break up the plot, and save American lives?

STEVE MEYERS:

This system you built with Project Prophecy actually predicted a terrorist attack that was thwarted in 2006.

JIM RICKARDS:

On August 7, 2006, I got an email from my partner.

She said, "Jim, we've got a bright signal on American Airlines.

It looks like a possible terrorist attack."

We documented that.

I was up at 2:00 in the morning in my study, watching CNN, and all of a sudden MI-5 and New Scotland Yard emerged to break up this terrorist attack.

They were arresting suspects and removing files.

So this showed that the system worked.

However, it's not just good for predicting terrorist attacks, but also strategic attacks by rivals and enemies of the United States.

STEVE MEYERS:

For years now, you've been helping the Pentagon and CIA prepare for a rise in asymmetric warfare and financial threats, because today there are immense fears we'll be struck by – as you've described it before – a financial Pearl Harbor.

JIM RICKARDS:

There's now concern in different branches of the U.S. government…

Historically in Washington, the Treasury and the Fed take care of the dollar.

The Pentagon and the Intelligence Community take care of other threats, but what happens when the dollar IS the threat?

Americans generally know that:

• The Fed has increased the money supply by $3.1 trillion.
• We have $17.5 trillion of debt.
• We have $127 trillion of unfunded liabilities.

What are those?



Medicare, Medicaid, Social Security, student loans, Fannie Mae, Freddie Mac, FHA.

You go through the whole list and it goes on and on and on.

There's no way to pay it.

Debt can no longer be used to artificially grow our economy.

During the boom years of the 1950s and 1960s, every dollar of debt that was created, we got $2.41 worth of economic growth.

So that was pretty good bang for the buck.

But by the "stagflation" of the late 1970s that relationship had actually collapsed.

So now for a dollar of debt in the late 1970s, we were only getting $.41 in growth, so, obviously, that's a huge drop-off.

You know what that number is today? Today, we only get $.03 in growth for every $1 of debt.

So we're piling on the debt, but we're getting less and less growth.

As the trend goes from $2.41 to $.41 to $.03…

It's soon going to go negative.

This is a signal of a complex system about to collapse.

STEVE MEYERS:

This really speaks to what you wrote about in your new book, The Death of Money, the title strongly alludes to this, the hourglass is now empty.

You warn we're about to fall into a 25-year Great Depression…

That the stock market could plunge overnight 70%.

JIM RICKARDS:

(Interrupts)

You know, when I use the phrase 25-year depression, it sounds a little extreme, but historically it's not.

We had a 30-year depression in the United States from about 1870 to 1900. Economists actually call it the Long Depression.

That was before the Great Depression. The Great Depression lasted from 1929 to 1940, so that was quite long.

The U.S. is in a Depression Today

STEVE MEYERS:

A lot of folks might disagree with you that we're currently in a depression.

That word brings to mind images of the 1930s and soup kitchens.

JIM RICKARDS:

Well, we have soup kitchens today…

They're just at Whole Foods and your local supermarket, because 50 million Americans are on food stamps.

It's not that we don't have distress.

We have enormous distress, but it's being hidden in different ways.

The unemployment rate today is actually 23% when you calculate it the right way.

STEVE MEYERS:

And you point the finger right at the Fed, Congress, and the White House.

JIM RICKARDS:

(Interrupts)

I was in a meeting in the Treasury and I said:

"The Fed and the Treasury are the greatest threats to national security, not Al- Qaeda."

Right here in this building with this group…

You people are destroying the dollar and it's just a matter of time before it collapses.

And I testified before the United States Senate about this.



I warned the Senate, maybe we can't stop earthquakes on the San Andreas Fault…

But nobody thinks it's a good idea to send the Army Corps of Engineers out there to make the San Andreas Fault bigger.

But by money printing, credit creation, and reckless monetary policy by the Fed, we're making the San Andreas Fault bigger every day.

And when you make a complex system bigger – the risk doesn't go up a little bit – it goes up exponentially. So the risk is unimaginable at this time.

The collapse hasn't happened yet, but the forces are building up and it's just about to snap.

STEVE MEYERS:

Jim, your take, and that of many in the Intelligence Community…

Is much different than what we're hearing out of Capitol Hill.

Which is why the allegations you make in this book are causing quite a controversy in Washington.

JIM RICKARDS:

I was at a recent conclave in the Rocky Mountains with a couple central bankers, one from the Federal Reserve and one from the Bank of England.

They'll say things privately that they won't say publicly.

And I was handed a copy of Janet Yellen's playbook.

The Fed is trying to kind of use propaganda…

Lie to us about economic prospects, talk about green shoots, use happy talk to try to get us to spend our money.

The Fed doesn't know what they're doing.

Don't ever think that they know what they're doing.

You can print all the money you want, but if people are not borrowing it, if they're not spending it, then your economy is collapsing, even with money printing.

So you can understand it this way…

Let's say I go out to dinner and I tip the waiter.

And the waiter takes my tip and he takes a taxicab home.

And the taxi driver takes the fare and puts some gas in her taxicab.

Well, in that example, my dollar had the velocity of three.

$1 supported $3 of goods and services: the tip, the taxi ride, and the gasoline.

But, what if I don't feel great? I stay home, and watch television.

I don't spend any money.

Well, that money now has a velocity of zero.

I leave my money in the bank, but I don't spend it.

Let's look at what's actually happening with the velocity of money.

It's plunging… It's going down very rapidly.

But compare this decline of velocity today to what we saw leading up the Great Depression.

Now, in the depths of the Great Depression velocity was even lower…

But…

If you compare what's going on today to what happened in the late 1920s just prior to the Great Depression, there's a very striking resemblance.

So, it doesn't matter how much money the Fed prints.

Think of it as an airplane that's coming in for a nosedive.

It's crashing… crashing… getting closer to the ground.

The Fed is trying to grab the joystick and pull the plane up out of the nosedive and get it back in the air…

But, unfortunately, it's not working, we're heading for a crash.

STEVE MEYERS:

We've just covered a lot of these startling numbers, these signals of this coming Great Depression.

Let me see if I can quickly put it all together.

Nobody denies that we have a debt crisis in this country, but you're saying we can no longer grow our debt without causing our economy to aggressively slow down.

We're barely above water now.

So that's signal number one.

Signal number two is this dangerous slowdown in our velocity of money.

It's already plummeting to levels not witnessed since the Great Depression in the 1930s.

Are there any other signals the Intelligence Community is monitoring that suggest this collapse is right around the corner?

Editor's Note: Jim Rickards reveals the early warning signs the U.S. Intelligence Community is tracking in advance of this coming 25-year Great Depression in his book, The Death of Money.

Money Morning believes this is a must-read for every American. So you can have a copy rushed to you for free.

JIM RICKARDS:

There are, Steve.

There are a lot of signals out there and they're very, very troubling.

One of the ones I'm watching closely, and I know people in the Intelligence Community focus on also, because it covers so much ground, is called the Misery Index.

The Misery Index = Real Inflation Rate + Real Unemployment Rate

If you look at the Misery Index today compared to the period of stagflation in the late 1970s and early '80s that Americans remember so well…

It's actually worse.

This can lead to social instability…



Take this back to the Great Depression… The Misery Index in the Great Depression was 27.

Today it's 32.89.



Believe it or not, it's worse today than it was during the Great Depression.

What happens as a depression worsens?

Businesses can't pay their debts. The bad losses fall on the banks. The banks ultimately fail.

That's happened before.

The Fed has had to bail out the banks.

But what happens when the Fed, itself, is in jeopardy?

STEVE MEYERS:

Based on these signals you've been tracking, the Federal Reserve is going to fail?

JIM RICKARDS:

The Federal Reserve actually, in some ways, already has failed.

I spoke to a member of the Board of Governors of the Federal Reserve and I said, "I think the Fed is insolvent."

This Governor first resisted and said, "No, we're not."

But, I pressed her a little bit harder and she said, "Well, maybe."

And, then, I just looked at her and she said, "Well, we are, but it doesn't matter."

In other words, here's a Governor of the Federal Reserve admitting to me, privately, that the Federal Reserve is insolvent, but said, it doesn't matter, because central banks don't need capital.

Well, I'm going to suggest that central banks do need capital.

Look at this chart.



What it shows you is that the Fed has increased its capital they currently have about $56 billion.

That sounds good.

You say, "gee, $56 billion is a lot of money, that's a pretty good capital base."

But That's Not the Whole Story

You have to compare the capital to the balance sheet.

How much in the way of assets and liabilities is that amount of capital supporting.

When you look at that it's a much scarier picture, because the actual liabilities, or debt, if you will, on the Fed's books is $4.3 trillion.

So you've got $4.3 trillion sitting on this little skinny capital base of $56 billion…

That's very unstable.

Prior to 2008, the Fed's leverage was about 22 to 1.

Meaning they had $22 in debt on their books for every $1 of capital.

Today, that leverage is 77 to 1.

So, yes, the capital has increased, but the debt and the liability has increased much more.

STEVE MEYERS:

Your warnings haven't gone completely ignored.

In the budget he presented this year, Senator Rand Paul cited your work and how we've driven our economy to the edge of a Roman Empire-like collapse.

In fact, we have footage of Senator Paul instructing Americans to listen to your warnings.

SENATOR RAND PAUL:

Jim Rickards notes the Fed is insolvent on a mark-to-market basis.

The Fed has wiped out its capital on a mark-to-market basis.

Of course, the Fed carries these notes on its balance sheet at cost and does not mark them down to market.

But if they did, they would be broke.

JIM RICKARDS:

First of all, I give Senator Paul Rand credit.

He's one of the few people who understand the dangers here.

But, the problem is not limited to the Fed.

It's infecting the private banking system as well.

There's about $60 trillion of debt on the balance sheets of our banking system.

For a long time, debt and the banks grew at about two times the rate of growth in the economy.

But lately, this has exploded.

Today it's up to 30 to 1.

In other words, for every dollar of economic growth, there's $30 of credit being created by the banking system.

The Whole Thing is Unstable

I can give you a very good example of this and this actually comes from physics.

If you had, let's say, a 35-pound block of uranium shaped like a cube, it would actually be fairly harmless.

It's what we call sub-critical. It's radioactive, but it's kind of tame.

But now imagine you engineer it.

You take that 35-pound block.

You take one piece and shape it into something about the size of a grapefruit.

Take another piece, shape it into something like a bat.

Put the ball and the bat in a tube and fire them together with high explosives.

That sets off a nuclear detonation.

That destroys a city.

The way it's been shaped and configured is what takes it from what we call sub-critical to super-critical.

STEVE MEYERS:

Jim, are you seeing any signs that our stock market has reached a super-critical state?

JIM RICKARDS:

Well, unfortunately, yes.

We're seeing a lot of signs of this.

One of the signs that's really fundamental, and really important, is the ratio of stock market capitalization to GDP.

Because, remember, the value of all the stocks in the stock market, that's supposed to represent the fundamental economy.

It's not supposed to be off in a world of its own.

But if you look at what's been happening to that ratio recently, it's going sky-high.

It's 203%.



Just prior to the recession…

That number was 183%.



Go back to the famous tech bubble, the dot com implosion of 2000.

At that time, it was 204%.



And if you want the scariest news of all…

Just prior to the Great Depression that number was 87%.



In other words…

The stock market capitalization, as a percentage of GDP, is twice as high as it was just prior to the Great Depression.

So, that's a really good metric for saying, "Hey, is the stock market heading for a crash?"

All the data says, "Yes, we are."

But there's another metric, another warning sign, if you will, that's even more frightening, which is the Gross Notional Value of Derivatives.

There are a certain number of shares of IBM that are outstanding, but we know what that number is.

But there's no limit on the derivatives.

I can write options and futures on IBM stock all day long and all the other stocks on the stock market.

And that's what's been going on.

Now, the Gross Notional Value of Derivatives in the world today is over $700 trillion. Not billion.

$700 trillion.

That's ten times the global GDP.

This collapse is unavoidable.

So, we ask ourselves, how bad can this be?

Well, what happened in 2007, 2008 when the markets collapsed…

We all remember the value of stocks going down…

Real estate going down, housing going down…

All that lost wealth was $60 trillion.

The problem is now the system is bigger, so I would expect the lost wealth this time to be $100 Trillion – possibly a lot more.

We're in this critical state, getting close to the super-critical state where the system implodes.

But it takes a catalyst, it takes a flashpoint.

There are a number of potential flashpoints I've investigated.

STEVE MEYERS:

Jim, in a few moments I want to discuss the steps Americans need to take with their investments and personal finances to prepare for everything you and your colleagues are predicting.

But now let's quickly focus on some of these major flashpoints.

JIM RICKARDS:

One of the key flashpoints we're looking at is foreign ownership of U.S. government debt.

Now, this is a very important thing to understand.

We all know that the Treasury has issued over $17 trillion worth of debt, the question is who buys it?

A lot of U.S. debt is owned by foreigners. Who owns it?

China, Russia, other countries…

Countries that are not necessarily our friends.

But they can dump it when they want to.

Well, guess what, that's actually what's been going on.

Recently, foreign holdings of U.S. government debt have been plummeting.

But it gets even more interesting than that.

We talked earlier about the project I did for the CIA…

Project Prophecy.

And we said, you can see not only market action, but rivals, enemies, terrorists and others, operating in financial markets.

So, we all know that Russia invaded Crimea in the spring of 2014.

Let's say you're Putin. You know you're going to invade Crimea. You can expect U.S. financial sanctions.

So what do you do?

You basically mitigate the impact of the sanctions, start dumping treasuries in advance so that when you make your move and the Treasury tries to come against you, you've insulated yourself.

So go back and look at October 2013, here's Russia dumping Treasuries month after month.

That was a clear signal that they were getting ready to do something…

To engage in financial warfare against the United States.

But guess what? It's worse than that.

We know the Russians and Chinese are working together.

So is it any surprise that when the Russians started dumping…

The Chinese started dumping also?

STEVE MEYERS:

Does the Intelligence Community have the ability to defend our country in the event that this escalates even further?

JIM RICKARDS:

Believe it or not, there's an intelligence unit inside the Treasury.

And they actually have a war room.

That tells you that financial warfare is here and it's real.

So if the Russians are dumping…

The Chinese are dumping…

Who is going to buy all this debt?

Well, a mystery buyer has shown up.



Recently, Belgium has bought enormous amounts…

In the hundreds of billions of dollars of U.S. government securities.

STEVE MEYERS:

So Belgium started loading up on treasuries, coincidentally at the exact same time Russia and China began dumping theirs?

JIM RICKARDS:

(Interrupts)

It's not the Belgians.

These amounts are bigger than the Belgian current account surplus.

These are not Belgian dentists who are buying these things.

Belgium is a Front

You know, could it be the Fed itself?

That's the point.

Maybe the public doesn't know who the mystery buyer is, but the national security community does.

Now, the Treasury, operating through this war room, and the Fed – the mystery buyer in Belgium…

For now, they have managed to prop up the treasury market.

It hasn't collapsed yet.

But they're not going to be able to keep pulling these rabbits out of a hat, there's a limit.

This should be very scary, because if the Fed is tapped out – we talked earlier about how the Fed is leveraged 77 to 1.

So the Fed is at the limit of what they can do.

The foreigners are now dumping treasuries and if no one buys it, guess what, interest rates go up.

That'll sink the stock market, that'll sink the housing market.

Higher interest rates mean the debt gets higher, so interest rates go up some more.

So you start a death spiral and there's no way out of it.

STEVE MEYERS:

An attack on our treasury market is obviously a very serious flashpoint that could ignite this Great Depression you predict in your book.

Let's talk about another flashpoint.

JIM RICKARDS:

What I call flashpoint number two has to do with the petrodollar.

STEVE MEYERS:

Can you explain what you mean by the petrodollar?

JIM RICKARDS:

It's basically a system whereby oil exports are priced in dollars.

Oil doesn't have to be priced in dollars.

It could be priced in euros, Japanese yen, Swiss francs, gold.

It could be priced in a lot of things.

But, in fact, the whole global oil market is priced in dollars.

I was actually very close to the birth of the petrodollar system.

My first visit to the White House on official business was in 1974, with a small group, about five of us.

We met with Helmut Sonnenfeldt, who was the Deputy National Security Advisor at the time.

He was the number two to Henry Kissinger.

And, this was at a time you have to remember…

At the beginning of the '70s oil was $2 a barrel.

At the end of the '70s, oil was $12 a barrel.

This Was an Oil Shock



The price of oil was skyrocketing.

Inflation was getting out of control.

There were gas lines.

You know, a certain generation of Americans remembers this very well.

We were in the White House talking about what to do about this.

One of the scenarios we discussed was the U.S. military would invade Saudi Arabia.

We would secure the oil fields and create a military perimeter around them.

We would pump the oil and set it at a price that was favorable to us.

Now, we would give the money to the Saudis.

We didn't want to steal their money.

We didn't want to steal their oil.

We just wanted to set the price.

Now, fortunately, that plan was not carried out.

But it shows you how desperate things were at the time.

But what did happen?

Why did we not invade Saudi Arabia?

Well, the answer is Kissinger and the Saudis worked out a deal.

And the Saudis said, "Okay, we'll price oil in dollars, so that secures the role of the dollar as the global reserve currency."

But there was a quid pro quo.

We agreed to guarantee the continuation of the House of Saud, the royal family of Saudi Arabia.

And by extension, the national security of Saudi Arabia.

Because they're a relatively weak military power.

And it's a bad neighborhood – a lot of enemies in the region starting with Iran and others.

So the question would be, obviously, did this petrodollar deal work?

And it ABSOLUTELY did work.

Once it kicked in, the dollar roared.

This was the period – sometimes people call it the king dollar period, the strong dollar period.

This was after Volcker and Reagan in the 1980s.

But this only continued up to a certain period of time…

Up until around 2000.



And since then, the dollar has been in a decline.

STEVE MEYERS:

So what could cause the fall of the petrodollar?

JIM RICKARDS:

Well, we're seeing it in real time.

Think of the petrodollar, or the dollar as the global reserve currency…

Think of it as a three-legged stool.

So, here's the stool and it's got three legs.

As long as the legs are standing, the foundation is firm and the dollar will remain as a global reserve currency.

But, one by one, those legs are being pulled out.

What are the legs?

Well, the first one is Saudi Arabia.

That was where the petrodollar deal began.

Our side of the deal was we would guarantee the national security of Saudi Arabia.

But lately – going back to December of 2013…

President Obama stabbed the Saudis in the back by anointing Iran as the regional-hegemonic power.

You know, the President has been withdrawing American power from around the world and his view is, well, we'll leave a friendly cop on the beat.

Every sort of bad neighborhood around the world will have a cop on the beat.

The President has decided that Iran is going to be the cop on the beat in the Middle East.

They're going to be the heavyweight regional power.

Where does that leave Saudi Arabia? Out in the cold.

So now Saudi Arabia is saying…

"Wait a second, you've undermined our national security, you've reneged on your side of the petrodollar deal, why should we hold up our end?

Maybe we'll start pricing oil in gold or euros or maybe Chinese yuan."

Because now, increasingly, Saudi Arabia is selling more and more oil to China.

So, the first leg of the stool has been pulled out.

The Saudis are going to back away from the petrodollar, because we are no longer guaranteeing their security – we're playing footsie with Iran.

The second leg of the stool is Russia.

Now, Russia is not a member of OPEC, but they are the world's largest oil exporter, one of the world's largest energy exporters, actually bigger than Saudi Arabia.

So even though they're not a member of OPEC, they also price oil in dollars.

So, they've signed onto the petrodollar deal in their own way.

But, we're now engaged in financial warfare, Russia is ready to fight back.

And this is not classified information.

This is being said publicly.

Andrei Kostin, President and Chairman of Russia's VTB Bank, it's one of the largest banks in Russia, he recently said…

"It's time to change the entire international financial system that considers the dollar the key reserve currency. The world has changed."



A member of the Russian Parliament, he said…

"The dollar is evil.

We will sell rubles to consumers that rely on gas and later we'll exchange the rubles for gold.

If they don't like this, let them not do it.

Let them freeze to death."

So, two of the legs of the stool, Saudi Arabia and Russia, have already been pulled out.

The third leg is China.

And that is coming out too.

STEVE MEYERS:

As far as Russia and China's role in taking down the petrodollar…

This recent $400 billion energy alliance they signed, is that the purpose of it?

JIM RICKARDS:

Sure.

Russia is the world's largest energy exporter, China is the fastest growing economy in the world, they need energy.

So this is a natural partnership between the two. But the dollar is out in the cold.

And, China is actually putting these yuan bilateral trade agreements in place all over the world.

They're doing them one-by-one.

But once there's enough trade and enough volume in a certain currency, it can become a reserve currency.

These are all straws in the wind, leading to the collapse of the dollar as the global reserve currency.

STEVE MEYERS:

Jim, in your book, you investigate how nations are now using gold as a financial weapon.

Is this one of the most dangerous flashpoints?

JIM RICKARDS:

It's absolutely one of the most dangerous flashpoints and, here's why…

A lot of people look at the dollar and say, "Look, you may not like the dollar, you may worry about the dollar, but you've got nowhere else to go."

But there is another place to go, which is gold.

You don't have to buy treasuries, you can buy gold.



And countries are actually doing that.

So this is basically a global rebalancing of gold reserves.

This is one of the things that the Intelligence Community is watching most closely.

And China is our number one case.

Here's why: China has acquired more than 3,000 tons in the past four years.

Now they lie about this.

They officially say they have 1,054 tons.



The reason is, China is using their own military and their own intelligence assets to acquire some of this gold in stealth.

I recently ran into a senior officer of one of the major secure logistics firms in the world.

Secure logistics that means these are people who operate vaults and armored cars.

So they handle the physical metal.

They're not central banks.

They're not government agencies.

These are Brinks and G4S and ViaMat.

These are the big players in this field.

One of these officials said he recently brought gold into China at the head of an armored column of the People's Liberation Army.

In other words, he was in an armored car and they had Armored personnel vehicles bringing gold into China.

I guarantee that did not show up in the official Hong Kong import figures.

Now, why is China doing this?

A lot of people speculate that they want to launch their own gold-backed reserve currency, to take the Chinese yuan, back it with gold, make it a global reserve currency.

That's extremely unlikely.

That's not what China is doing.

What they are trying to do is hedge against the collapse of the dollar.

China can't prevent that from happening.

What they can do is build up the gold reserves.

This is known to the Intelligence Community.

This is NOT publicly revealed.

What if it were publicly revealed?

Here's what global gold reserves would look like if the amount that China owns were actually suddenly revealed.

This is a dagger aimed at the heart of the dollar.

STEVE MEYERS:

Jim, so far all of these flashpoints have involved China.

Isn't this an economic suicide mission to attack America?

JIM RICKARDS:

There's something else here, another flashpoint that could meltdown the global financial system.

What if the U.S. doesn't bring the entire pyramid crashing down, what if it's China?

Well, it could very well be.

They have a highly leveraged banking system.

But the banking system is just the beginning.

There's also something called a shadow banking system.

This is now a $7.5 trillion industry and it's up 4,067% since 2005.



STEVE MEYERS:

This term shadow banking, it's starting to get play in the press.

How would you explain it?

JIM RICKARDS:

If you put your money in the bank in China, they – it's just like the United States.

They pay you nothing, zero maybe, one quarter of one percent, something pathetically small.

But, they're offering these wealth management products that pay five, six, seven percent.

Well, what are they?

Well, they're actually – they take the money and they buy mortgages on worthless assets, inflated assets and bubble assets that are going to crash.

Before the crash in the United States, before 2008, new construction, as a percentage of GDP growth, that was about 16%.

16% is a pretty big slice.

But, look at China.



In each of the last three years, construction has been 50% of GDP growth.

They're building white elephants, they're building trophy projects, they're building ghost cities.

I've been to China – I was with the Communist Party officials and provincial officials, they were trying to get me to bring some businesses there.

I went to one place near Nanjing.

They weren't building seven buildings, they were building seven cities.

Every city had a whole cluster of skyscrapers, luxury hotels, athletic facilities, housing facilities, high-end shopping, metro stops, highway access…

And an airport to service all seven of these cities.

This construction was going on as far as the eye can see.

It was all empty.

All of it.

Now, here's the point.

In the U.S. before the crash, it took about 4.3 years of income to buy the typical house .

In China, it takes 18 years of income.



If they're building apartments, co-ops and condos, and people can't afford them, you know their prices are going to collapse.

One of the senior banking officials in China said, "This is a Ponzi scheme."

Those are his words, not my words.

I happen to agree.

But, we all know what happens to Ponzi schemes, eventually you run out of suckers and they collapse.

Once you have enough collapses, there's going to be a run on the banks.

The bankers are going to say sorry, we can't pay you, it's not our problem.

Well, that's not going to be good enough.

Riots are going to break out.

What does it mean when the world's second largest economy hits the brakes?

That's going to be disastrous to global growth; it's going to pull the rug out from under the sky-high valuations we're seeing in the U.S. stock market.

This is a set-up for an entire collapse of the global economy.

STEVE MEYERS:

Jim, there's one more flashpoint I'd like to talk about.

It has to do with a premeditated plan you believe exists inside the IMF, and it involves high-ranking U.S. officials…

To replace the dollar as the world's reserve currency.

JIM RICKARDS:

It's not just my belief.

This is actually documented.

It's a ten-year plan to replace the dollar as the global reserve currency.

The IMF released a report this year, it was called – and get this title – "The Dollar Reigns Supreme By Default."

And here's a direct quote…

"The aggressive use of unconventional monetary policies by the Federal Reserve, the U.S. central bank, has increased the supply of dollars and created rifts in the financial system. The dollar status should be in peril."



Reserves are nothing more than a savings account for a country.

That's the amount of money they've saved.

But, the problem is, when you have it you have to decide what to do with it.

You can't just stick it under a mattress, so to speak.

A lot of people think that the dollar will prevail because there are no good alternatives.

That's not true.

The dollar is declining sharply, as a percentage of total global currency reserves.

Imagine if that continued.

The euro comes up.

Swiss franc comes up.

Some of the other currencies come up.

That's one outcome.

But, there's another outcome, that's probably coming a lot sooner.

We have a financial panic in the world.

If a central bank has to re-liquefy the world, where is that money going to come from?

It can't come from the Fed, they're leveraged 77-to-1.



There's only one clean balance sheet left in the world… the IMF's.

The IMF, believe it or not, is only leveraged 3-to-1.

When the next crisis comes, it's going to be bigger than the Fed.

The only source of liquidity in the world is going to be the IMF.

Think of it this way.

The Federal Reserve has a printing press, they can print dollars.

The European central bank has a printing press, they can print euros.

The IMF, the International Monetary Fund, has a printing press too.

They can print something called the Special Drawing Right, or the SDR for short.

These SDRs can come along as a new reserve currency.

The reason they came up with the name Special Drawing Right is because if they called it "world money" that would sound a little spooky and scary.

But that's exactly what it is.

Here's the point.

This may be a ten-year plan.

We're not going to make it ten years.

This collapse will happen a lot sooner than that.

So they're going to have to dust off this playbook and run out these SDRs and print trillions of them to prop up the system.

Now, if the Fed bailed out private credit in 2008…

And the IMF now bails out the Fed in the next financial panic…

Who runs the IMF? Who's really in charge?

Well, it's a nice crowd.

We've got kings, dictators, communists…

They're unelected, unaccountable.

And this is the next flashpoint, really, the IMF taking over the world monetary system and becoming the central bank of the world…

Printing "world money" called the SDR.

STEVE MEYERS:

Jim, these flashpoints…

The attacks on our treasury market and petrodollar…

China's stealth gold run…

China's inevitable collapse…

Even this alarming inside job to take down our dollar that's escalating at the IMF…

You've only scratched the surface of what you reveal in your book.

However, the most important message I took away from The Death Of Money is:

Regardless of which flashpoint unleashes the 25-year Great Depression, folks need to understand it's coming, and coming quick.

JIM RICKARDS:

Steve, that's exactly right.

There is a mission in this book and it's urgent and it's important.

We're talking about:

A prolonged depression…

• Massive deflation
• Massive unemployment
• Rampant bank collapses
• A 70% best case scenario stock market drop

This could all start within the next six months.

Look at it this way.

Americans right now are standing at the very bottom of a tall mountain… Mt. Everest, Mt. Kilimanjaro.

About halfway up the mountain, there's a catastrophic avalanche barreling down towards us.

Determining the one snowflake…

The one flashpoint that's going to speed this chaos up shouldn't be our focus.

Recognizing the severity of the situation and moving to safety should be.

So, mission one is helping people hold on to what they've got.

That's going to be more than half the battle ahead.

The Banksters are Pushing for a World Economic Government under Their Direct Control to Solve the Financial Crisis They Created

Planned Takedown of the Financial System

Overloads of Chaos
2011

Radio host Pat Campbell:

"Somebody in D.C. was feeding you guys quite a story prior to the bailout, a story that if we didn't do this we were going to see something on the scale of the depression, there were people talking about martial law being instituted, civil unrest …. who was feeding you guys this stuff?"

Senator James Inhofe:

"That's Henry Paulson. We had a conference call early on, it was on a Friday I think – a week and half before the vote on Oct. 1. So it would have been the middle … what was it – the 19th of September, we had a conference call. In this conference call – and I guess there's no reason for me not to repeat what he said, but he said – he painted this picture you just described. He said, 'This is serious. This is the most serious thing that we faced.'"

Senator James Inhofe, speaking on Tulsa Oklahoma's 1170 KFAQ, identifying when Treasury Secretary Henry Paulson as the source behind threats of martial law and civil unrest if the "banker bailout bill" failed (24th January 2009):

"City Minister Paul Myners disclosed that on Friday, October 10, 2008 Britain was 'very close' to a complete banking collapse after 'major depositors' attempted to withdraw their money en masse. Both Royal Bank of Scotland and HBOS were nearing complete collapse — but Lord Myners, who built up his fortune during a long career in the City, said the problems ran far wider. 'There were two or three hours when things felt very bad, nervous and fragile ... Major depositors were trying to withdraw — and willing to pay penalties for early withdrawal — from a number of large banks.' ... The Treasury was preparing for the banks to shut their doors to all customers, terminate electronic transfers and even block hole-in-the-wall [ATM] cash withdrawals. If the moves had failed, [Gordon] Brown would have been forced to announce that the Government was nationalising the entire financial system and guaranteeing all deposits. Only frantic behind-the-scenes efforts averted financial meltdown." - Mail on Sunday: article entitled "Revealed: Day the banks were just three hours from collapse."

Bertolt Brecht (1898-1956) German German dramatist and poet:

"It is easier to rob by setting up a bank, than by holding up a bank clerk."

The last quarter of 2008 was a shock to those who do not understand the nature of the world in which they live. In 2008:

• People saw £30 trillion wiped off the value of the world's stock markets as huge financial organisations collapsed and their net worth destroyed.


• People saw the ability of big global banks to conduct normal business and make market-moving loans severely curtailed.


• People saw the housing and commodity bubbles pop, the stock markets crash and pensions funds siphoned of their value.


• People witnessed the world's central banks rush to save struggling banks by pledging trillions of taxpayers' dollars, pounds, euros and yen thereby allowing the reckless and profligate banks to remain somewhat solvent and stay in business.

They witnessed all these and yet the majority of people do not understand the reasons for it or the true architects of it.

Most people do not have the slightest idea of the significance of the vast sums being pledged, lent, spent or squandered in their name by their governments. The so-called "credit crunch" and the massive banker bailout has reduced most people to silence since they find the implications and ramifications beyond their comprehension.

The crises does not directly imperil their well-being or personal safety: no bombs, metaphorically speaking, are falling. Shoppers still pack suburban malls, revelers still throng the pubs and night-clubs, cars crowd motorways and passengers jam airports. Thus far only abstract statistics reveal the bad news. The dire implications have yet to work through into real life.

• There is a depressing and increasing sub-group of giggling ignoramuses that revel in their ignorance who have no grasp of reality and to whom such things are as remote as the planet Pluto.


• There is another larger group that knows that something is amiss but are too distracted by their everyday struggle of existence and too indoctrinated by the mass media to bother to search out the true nature of the events unfolding before their eyes.

In other words, the vast majority are truly ignorant about the greatest issue of modern times. An overwhelming public mood of fatalism exists but one devoid of righteous anger: the dire consequences have not literally reach home. In the short term, this wholesale public ignorance helps the incumbent political parties. For, electorates are always grateful for any government action — however wrong — that promises to stave off immediate pain: job losses, bankruptcies, factory closures etc.

The financial meltdown has yielded a flood of global figures that makes proper understanding of what is involved very difficult. Especially difficult for the ordinary, put-upon taxpayer burdened with the enormous debt wantonly created by their spendthrift politicians. For instance, the execrable Gordon Brown Government's October 2008 bailout of British banks was a staggering £500bn (more than one-third of UK GDP); supposedly made available to the banks to "kick-start lending." The even more execrable Bush Government pledged an eye-watering 8.5 Trillion dollars of US taxpayers hard earned money to bailout American banks ... staggering sums and all without proper accountability or oversight.

Every conceivable incentive is being offered to the banks to expand lending, at stupefying cost to the taxpayer, yet the banks still will not oblige. They refuse to lend in sufficient amounts; and have even in the first days of the new year every major bank has announced that they expect to reduce lending in the first quarter of 2009.

Most people think this banker bailout using taxpayer funds came with a quid pro quo in that banks maintain lending to businesses and homeowners at 2007 levels. It is not true. Banks are not willingly to increase lending nor are they compelled by governments to do so.

This begs the question, 'What is really going on?'

Is it merely a question of greedy and incompetent bankers hoovering up as much Treasury largesse and taxpayer's grace as possible and using the obscene amounts to not only prop up their precarious balance sheets but also pay themselves their even more obscene bonuses? Moreover, is it simply a matter of survival: are the potentates of the Speculative Economy (at whose heart is the banks) using the resources of the Real Economy (manufacturing, commerce and trade) to save themselves from destruction?

Are the oligarchs of the Speculative Economy (the Banksters) — despite the crash they have now visited on the Real Economy and despite the eye-watering mountains of taxpayers' aid they have absorbed — still determined to save themselves, and not the businesses and individuals they supposedly exist to serve? Are the Financial Oligarchs determined to sacrifice the Real Economy for their own selfish ends? Or, is this Financial Meltdown of the West an integral part of a dark, sinister agenda known by a select few? Part of an Ancient Evil Agenda for World Government?

People ignorant of the Ancient Evil Agenda for World Government witnessed huge convulsions in the world economy, several times nearly crashing to the ground, and still were unknowing of the true nature and reason for this. They do not know that the Financial Meltdown of the West and the wholesale de-industrialisation of the Western World are long-planned prerequisites for World Government. The Feudal Fascist World State under the direct and absolute control of the Invisible Money Power, the Power Elite, known to those who have a sound understand of the phenomenon as the Synagogue of Satan.

"The lack of confidence is total ... The inter-bank [lending] market is not functioning and this is generating vicious cycles: consumers are not consuming, businessmen are not taking on workers, investors are not investing and the banks are not lending ... There is an almost total paralysis from which no-one is escaping ... This is the worst financial crisis since the Great Depression." - Miguel Angel Fernandez Ordonez, governor of the Bank of Spain, said in an interview with Spain's El Pais 21.12.2008

"Marxism also had a goal, and it, too, has a constructive activity even if it is only to erect a despotism of international world Jewish finance" - Adolf Hitler, Mein Kampf, p. 453.

During the financial convulsions, massive propaganda was spewed out by the controlled mainstream media that persuaded the unwitting and unwary that the "sub-prime mortgage market" caused a "credit crunch" that caused the Interbank Markets to freeze up that brought about the turmoil. Further, that the pledging of trillions of taxpayer dollars was necessary to "save the world." Necessary, so the propagandists warned, to "jump-start" the crucial inter-bank money markets that froze after the US high-risk, "sub-prime mortgage market" collapsed in mid 2007, which locked even tighter after the US investment bank Lehman Brothers declared bankruptcy in September 2008.

Thus, the credit markets froze, we are told, because of two primary causes: one, collapsing consumer purchasing power; and two, collapse in confidence that all and every bank are able to repay any and all loans.

Regarding the first: Individuals can no longer get loans because they can not afford to repay them and businesses can not get loans because consumer income is insufficient to buy their products.

Regarding the second: Banks have made mega-bets with one another through complicated instruments such as derivatives, credit-default swaps, and so forth.

With these exotic credit instruments one party paid another if certain events happen or conditions were met; for example, if gold plummeted in value or if the dollar soared or a financial institution went bankrupt. Such instruments were supposedly created to help manage risk, to spread large risks around, however, they can also be used to gamble. Hence, if one felt confident that the dollar was going to fall, one could make a big bet accordingly, and if the dollar indeed fell, your profits would soar. Unfortunately, if the contrary happened and the dollar rose in value the loses were very significant indeed.

The great problem is that in a global financial meltdown, such complicated intertwining of bets of great magnitude bring great fear and uncertainty such that no one could be sure of the financial position of anyone else — or even of one's own position.

Thus, the widespread belief that the "bankers" who have got the world into this mess are merely greedy, grasping Shylocks and hardcore gamblers totally unconcerned with the devastating consequences of their actions. Thus, people who have no true understanding of the problem think it is purely a manifestation of the "evils of Capitalism": that naked greed and rampant corruption are the natural consequences of an economic system based upon private ownership of capital.

That unfettered, free-market capitalism is the main culprit with political corruption playing a minor role in the financial crisis. In short: widespread criminality, corruption and calamity are natural consequences of a society governed by an iniquitous political system and funded by a financial system run like a giant Ponzi scheme.

Thus, for example, David Nason, New York correspondent for The Australian echoed the prejudiced view of those who know nothing of market processes or the Dark Forces manipulating them when he wrote that:

"The unfolding financial crisis continues to illuminate the idiocies of deregulated, anything-goes capitalism [that is the result of] 30 years of free market foolishness." - ("US needs to stand up to hedge funds," 27 October 2008).

Free Market critics such as Nason are not only ignorant of economic principles but also equally ignorant of economic history and the history of economic thought. He is also ignorant of the true nature of the World Financial System, who controls it and their ultimate aim. Yet, it is such critics who are allowed to shape public opinion and prejudice it against the Free Market.

Hence the public dichotomy: Libertarians and free marketeers versus the Marxist.

The first instinctively understand that government is part of the problem, not the solution. Moreover, that the "magic" of the marketplace, the enigmatic deeds of the Hidden Hand of the Free Markets, is the best guardian and not Big Government.

The second, the Marxists and other critics of Free Enterprise, argue that this Free Market magic is illusory. That greed, crony capitalism and vested interest distorts and corrupts and the only solution is benign, rational government intervention and regulation of the markets.

While the first instinctively understand that Government is the enemy of the freedom and the private sector, the second regard Government, the bigger the better, as a not only their partner but their essential guardian.

But this dichotomy is merely another manifestation of the Dialectic Process used by the Satanic social engineers behind the World Revolutionary Movement for World Government. And in this context it is a dialectic founded upon a fiction: the Myth of the Free Market.

There is no such thing as the Free Market. Even at the beginning of the Modern Age with the advent of the Industrial Age and Mercantilism, Government has sought to control trade and markets. An impulse to control that took on a more sinister and far more dangerous form when the Secret Group sitting enthroned at the head of the Dark Empire of the Secret Societies (the Occult Hierarchy) moved to gain control of the entire world financial system by controlling the credit of nations via the Central Banks.

Why? Because, for them to consummate their five-thousand-year old Luciferian Agenda for World Government, the Secret Masters of the Dark Empire of Secret Societies needed to CONTROL everything necessary to achieve their goal. They needed CONTROL of everything that could be used to socially engineer Western Christian Civilisation into oblivion. And the most potent means to engineer the destruction of Western Christian Civilisation was to CONTROL the financial system: to CONTROL the credit of the Western nations. Thus, the centuries-long agenda orchestrated by the Secret Group to gain CONTROL of the financial system.

Put differently: the laissez-faire economy, the so-called "Free Markets," do not exist and have not existed ever since the time the Secret Group achieved a coup d'état by getting the governments and the people to accept the Central Banks as the guardians of their credit. Such that the Secret Group — the Invisible Money Power — and their faithful lackeys (oft called the Global or Power Elite) now constitute the de facto Shadow Government of the World: a Parallel Government that circumvents every check and balance of accountable government. A situation described by an insider thus:

"[The ultimate aim of the Invisible Money Power is] nothing less than [the creation of] a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole ... controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences." - Carol Quigley

The usual explanation of the depressing sight of politicians (ever profligate with taxpayers' money) throwing good money after bad is that they, like addicted gamblers, willingly squander future generations' inheritance for their immediate political gain. There is, of course, truth in this. However, in the present situation this is not the ultimate reason why politicians are spending trillions they do not have: why they are planning to add trillions to the debt mountain, without allowing for the natural forces of the ailing free market economy to balance themselves.

There is a sinister and more substantive reason behind the $trillions of dollars, pounds, euros and yens in planned bailouts, loans and guarantees supposedly to prop up failing banks and "provide a significant boost to economic activity." The true nature of the phenomenon is thus concealed by a false reality.

The false reality is this: That debt crisis that first appeared in the US "subprime mortgage market" accelerated and precipitated a Wall Street meltdown that hammered down the American economy into its sharpest decline since the Great Depression: a financial meltdown, which has now spread to the entire world and driving the economies of Western Europe and Japan into an unprecedented tailspin.

In short: the spiraling out of control "credit crunch" is setting the stage for a global depression of epic dimensions. Moreover, a global financial meltdown that threatens the economic and political stability of the Arab Oil States, Russia, China, Brazil and several emerging market nations. As halting production stalls on assembly lines due to decline in foreign demand for goods, unemployment surges and massive amounts of foreign capital flees these countries for safer havens.

Although these things are indeed occurring, their root cause was not the "subprime mortgage market" induced "credit crunch." It is far more complex and sinister than that. The "subprime mortgage market" induced "credit crunch" is smoke and mirrors to conceal the true source of the phenomenon: to conceal the dark actors involved in the sinister drama. To divert attention away from the Secret Group — the Invisible Money Power — that has the world financial system in its Satanic grip and is deliberately taking it down.

The Secret Group that has been carrying out a secret plan for world domination and is making its final power moves. The Secret Group that is orchestrating the last stages of an Ancient Secret Plan to plunge the world into total chaos and Total Global War out of which they plan to erect their New World Order.

In other words, we are in the ENDGAME of the Globalist Agenda when the finishing touches to the Global Gulag are being made. When the mask begins to slip off the New World Order Agenda revealing its true, dark Satanic nature for all who have eyes to see. And key aspects of this unfolding nightmare is the engineered economic collapse of the world economy, the Financial Elite's take-over of the world's financial system and its wholesale looting of the world.

"Capital must protect itself in every way ... Debts must be collected and loans and mortgages foreclosed as soon as possible. When through a process of law the common people have lost their homes, they will be more tractable and more easily governed by the strong arm of the law applied by the central power of leading financiers. People without homes will not quarrel with their leaders. This is well known among our principal men now engaged in forming an imperialism of capitalism to govern the world. By dividing the people we can get them to expend their energies in fighting over questions of no importance to us except as teachers of the common herd." - Civil Servant's Year Book, The Organizer (1934)

"Widespread civil violence inside the United States would force the defense establishment to reorient priorities in extremis to defend basic domestic order and human security. [Potential causes civil unrest includes another terrorist attack] unforeseen economic collapse, loss of functioning political and legal order, purposeful domestic resistance or insurgency, pervasive public health emergencies, and catastrophic natural and human disasters ... these conditions and at their most violent extreme civilian authorities, on advice of the defense establishment, would need to rapidly determine the parameters defining the legitimate use of military force inside the United States." - US Army War College report entitled "Known Unknowns: Unconventional 'Strategic Shocks' in Defense Strategy Development" detailing how economic collapse, terrorism and loss of legal order are among possible domestic shocks that might require military action within the US

Those with a less superficial understanding of the global financial meltdown know that it is not the Capitalist system per se at fault but a clique of men at its highest level who have set up a global criminal enterprise to fleece the people of the world by exploiting human greed. Moreover, who understand that with the founding of the Central Banks a veritable 'State within the State' has evolved. That a Parallel Government exists and is beyond all checks and balances of accountable government. That is, an Invisible Government, a Shadow Government, which has its hands on every lever of power. In short:

• A Shadow Government that has usurped not only the executive power of the United States of America founded as a Republic on Christian Principles but also the governments of the Western World.
• A Shadow Government that now controls the governments of the Western World and beyond.
• A Shadow Government that is a criminal enterprise: a corrupt, self-financing criminal organisation, protected by Statute, which is permanently engaged in every reprehensible and vicious activity that depraved humanity can invent.
• A Shadow Government whose every act not only clashes daily with the Rule of Law and Proper Government but also with Natural Moral Order itself.
• A Shadow Government that breaks all and any laws and is a parody of Proper Government and the concept of the Rule of Law.

However, those who truly understand the way of the world know that although this Shadow Government is a veritable Kleptocracy it is not simply a criminal enterprise set up by sophisticated gangsters engaged in petty personal aggrandisement. Nor is it simply a criminal alliance between International Usurers and deluded, traitorous operatives and lackeys within the corrupted structures of Western Governments and their intelligence agencies. It is far, far more dangerous than this.

Those who truly understand the way of the world know that under orders from the Shadow Government an international gang of elite criminals and their corrupted, conspiring lackeys in the political class and banking sector have been ransacking, pillaging and stealing every financial balance they can lay their hands on with apparent impunity.

This Secret Group of arch-criminals are the Invisible Money Power often called the Illuminati and people like Greenspan, Bernanke, Bush, Blair, Clinton Merkel, Sarkozy and Obama are merely its public face.

These politicians and financial operatives are part of the international gang of elite criminals bringing ruin to the world. Moreover, they are apparatchiks of the Shadow Government, the Parallel Government, who slavishly work to bring about its ultimate goal: the establishment of a World Government under its direct and absolute control.

But they are also part of the agenda to bring ruin to the middle classes and to deliver the world's people into the vassalage of the coming all-powerful World Bank.

These apparatchiks are the agentur of the Illuminati, and creatures of the New World Order, and like all its creatures they are dedicated to the cause of World Government. Consequently, they and their like are dedicated to the destruction of all sovereign nations and the eradication of all human freedom and liberty from the face of the Earth.

Such things are no surprise to those people who truly understand the way of the world; those who know that an ancient conspiracy for World Government not only exists but is rapidly approaching its apogee: people who know that the Dark Force behind the Ancient Evil Agenda for World Government is near to its goal of erecting a New International Economic Order under is complete and absolute control. A situation called by those with a spiritual insight into its true nature as the Beast System. A situation the former Georgetown professor Carroll Quigley (who was the official historian of the Secret Conspiratorial Society plotting World Empire, i.e. the Round Table) described thus:

"[The ultimate aim of the Invisible Money Power is] nothing less than [the creation of] a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole ... controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences."

And crucial to this Ancient Dark Ambition of the Empire of Secret Societies for world financial domination was:

1. First, to conspire to have private corporations, the Central Banks like the Bank of England and the Federal Reserve System, get control of the monetary systems of sovereign states;


2. Second, to use this inordinate power to bring about certain conditions propitious for the establishment of World Government; and


3. Third, the planned destruction of paper currencies and the Financial Meltdown of the West as necessary events to bring about World Government.

The Banksters who want World Government under their direct control are pushing for a World Economic Government to solve the financial crisis they created. The Invisible Money Power and its minions in politics and finance have long planned to engineer a global financial and banking crises out of which they will create the machinery of world economic governance under the pretext of preventing a repeat of the global financial crisis. That is, forge "a new global financial order."

The Banksters who have plotted World Government have deliberately created the problems besetting the world: they created the inherently unstable but gloriously paper-profitable Speculative Economy founded upon fractional reserve banking, debt bubbles and credit crashes. An unreal and unsustainable creation that accrued power and wealth to a few but to the detriment of the many who live, work and prosper in the Real Economy.

They have engineered a severe deterioration within the world economy involving an almost total collapse of confidence, a fall in business investment, ruin in retail demand, an avalanche of job loss, and a spread of corporate breakdown beyond the Speculative Economy into the Real Economy.

Moreover, they have engineered the precipitous slowdown of world trade. That is, the distribution channels within the Western World are now at risk from lack of credit and trust as too are the overseas shipping channels into the West at risk from refused letters of credit.

Such distrust and uncertainty has never seen before. In other words, the entire Global Economy is collapsing ... and, reader, this Financial Meltdown of the West is by design ... as a precondition for World Government.

And, gentle reader, understand this: the wicked and evil men behind the five-thousand-year old Luciferian Conspiracy for World Government manifest as the World Revolutionary Movement and summarised in the Protocols of the Learned (Elders) of Zion are also behind the Planned Takedown of the World Financial System ...

US, EU Economies Set to Collapse

Press TV
December 10, 2011

Many experts believe that the sold out EU leaders’ failure to address the Block’s deepening financial recession may possibly end in collapse of an EU dream.

In the meantime, professionals believe that the EU leaders’ failure to deal with the core issue, which, they say, is the endless rise of unrepeatable debt, is considered the same as, digging the hole still deeper, which may, eventually lead to disintegration of the Union and put an end to its common currency.

Press TV has interviewed Rodney Shakespeare, professor of Binary Economics, from London

Following is a transcription of the interview.

Press TV: Ok, Rodney Shakespeare, let me ask you what Germany wants to do, ask German taxpayers to bailout the Euro, only if the euro countries agree to iron clad fiscal rules, which removes, euro countries budgetary powers and it commits tens of millions of people to years of austerity. Isn’t that kind of the game plan that Germany has ?

Rodney Shakespeare: the Europeans are in a hole and digging deeper, alternatively you can say, they have got their heads in the sand and their bottoms up in the air. Either way, they have now completely and utterly sold out, to Goldman Sachs and the bankers; and the result is going to be, that the people of Europe are going to lose their jobs, lower standard of living, lower pensions, more trouble, or go on for decades.

So I am afraid, that is the basic situation, and as regards to the UK, we are already ruled by the bankers who are trying to be in charge using the financial system to control everybody else. The situation is quite disgraceful, we have to throw off this global elite, and go to a new paradigm of thinking.

But at this moment there is not the slightest sign of any new thinking or addressing the underline problem, which as Max has indicated, is in fact an endless rise of unrepayable debt.

Press TV: Rodney Shakespeare, roughly, just a couple of hours back, interesting piece of news coming from an orthodox source, and that is from a US military officer, General Martin Dempsey, who has said, extraordinary concern about the viability of the Euro because of the potential for civil unrest and the breakup of the European Union.

Rodney Shakespeare: Yes , at the moment the Americans have tended to be blaming the Europeans, but of course, the Americans are just as much part of this collapsing fraudulent system as the Europeans, but he is quite right.

I think that Europe is going to collapse, and when, for example, the bonds etc are defaulted, that is going to hit the derivatives, commitments of the American banks and is going to be big, big trouble. If you look at it, if only a tiny percentage of the derivatives go wrong, three or four percents of the total might be equivalent to nearly the same as the world’s GDP.

Press TV: but how about the fact that is the American general, I am sorry to jump in, why would American General, come up with a warning like that, isn’t that signifying something there?

Rodney Shakespeare: It is signifying something, not only awareness of the overall connections, but of course what is also happening, is America in particular, incited by the Zionist entity, is going for war as a means of hiding the whole thing up.

The Americans want to blame Europe, and then when the blame comes back to them, then they’ll be going to war, that is the underlying reason, why they are heating up the tension at this moment and of course it can easily get completely out of hand.

Press TV: So, Rodney Shakespeare, is the United States and the UK, then on one side and Europe on another side? Is this breakup of Europe, from, in this case, within Europe from the UK and then with the United States?

Rodney Shakespeare: well , I think there is going to be divisions with the breakup in Europe, but it is the whole system, which is going down; a system which relies on, endlessly creating money, compound interest, and putting it for anything, except the real economy.

And since they are not going to address that, it really does not matter which way it goes, The thing is going down, and war is going to be the way they are going to hide it.

The one thing they are not going to do is to challenge the bankers, the way they should do, is in fact, to control the bankers, and then get the national banks to issue interest free loans for public capital projects, for micro credit, for environmental capital projects, for spreading the ownership in the big and medium cooperation’s, and they can use that same mechanism to get with their national debt.

But they are not going to do that, because, they are controlled by the mindset of interest and of sucking the wealth up to that one percent and they are not going to change that. Until they do, Europe has had it and ordinary people have had it, in the USA, where it is getting worse and worse, and in Europe.

Press TV:Rodney Shakespeare, I am going back to UK, and the fallout geopolitically speaking for the decision that the prime minister David Cameron has taken, I mean, they do, after all have represented, at least a portion of the contribution based on trade or what have you, so now, with this to have occurred, how are other countries supposed to react, economically speaking, in terms of financially at least, with the UK – isn’t that going to drive the UK into a deeper recession?

Rodney Shakespeare: There is a deepening recession going on right across Europe and our exports are going to be held back, and yes we are part of the whole downward turn. Just one quick point on Europe, they are now going to have decisions by completely unelected bureaucracy, with that Belgian twit Ron Frey running it all.

There is going to be huge political tensions between the people who do not want this centralization and people who are suffering the economic consequences. So I see high stress and breakup of some sort coming for Europe.