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Economic crisis: US, China and the coming monetary storm
- Text size
Maurizio d’Orlando
AsiaNews
December 9, 2008
The massive levels reached by the foreign debt of the United States and the excessive and unjustified devaluation of China’s yuan are two high risk factors for the world economy and stability. Solutions found so far may be useful for financial institutions but not for the population. A “transnational” oligarchy is emerging that includes central banks, the Chinese Communist Party, Russia’s oligarchies and oil sheiks.
Milan (AsiaNews) – After the crises in subprime lending, the banking sector and the stock market, the same tsunami is sending a new tidal wave that could crash against the dollar and the Euro but also against China and Asia, Eastern Europe as well other emerging nations.
This view does not fit well with the agreement reached in Washington by G-20 heads of government and heads of state whose countries represent almost 90 per cent (1) of the world Gross Domestic Product (GDP). In the US capital the leaders of these countries pledged not to erect new trade barriers. In their view globalisation must not stop; we should not return to protectionism, making the same error made in the 1929 crisis. However, such a unanimous consensus seems more lips service to an idea than any actual meeting of the minds. In reality the development of globalisation has been based on an unbalanced economic model. Until now it has relied on controlling monetary emission and non tariff barrier protectionism. The coming monetary storm will thus be a violent and dangerous rebalancing act of the system of international exchange.
Many countries, especially the United States, have printed more money in order to cope with the crisis. Solvency, not liquidity is at the root of the current economic turmoil. Flooding the system with debt liquidity will exacerbate the problem, not solve it. In a short period of time the US Federal Reserve and the US Treasury Department are raking up a mammoth level of debt for US taxpayers—US$ 7,740 billion according to Bloomberg (2), 11 times what was in Secretary Paulson’s original plan, or 56,19 per cent of the US GDP in 2007. It is not even clear whether this is legal, but one can wonder whether it is fair not only to the American people but also towards the rest of the World, especially to Asian countries which are among the major holders of wealth in US dollars.
An unbalanced economic model
Globalisation is based on an unbalanced economic model. So far public and private consumption in the United States have driven world demand. US consumers made export-driven growth in many countries possible. The absurdity of this method lies in the fact that producers get underpaid and are forced into saving in order to provide credit for those who do not produce and could hardly afford to buy. Workers in China, Brazil and India get starvation wages to produce goods tailored-made for the US (and Western) market (3) whilst US consumers are unable to generate corresponding resources and value. In fact, the trend for the US GDP is negative since the third quarter of 2000 when calculated on the basis of inflation as calculated prior to the Clinton era (4). Yet US consumers have been pushed, flattered and funded to live above their means, almost forced to buy every kind of goods. This is why there is a solvency problem.
Two factors are at the basis of this absurdity: available financial liquidity and accumulation of monetary reserves. On the one hand, US monetary authorities had agreed to an extraordinary increase in financial bank money supply, the so-called M3. Too much of this, even in the form of large or medium term securities, reduces its real value. It should have led to the devaluation of the dollar, but instead, the monetary mass in dollars as a means of payment was maintained an unchanged worth, especially in Asia and emerging countries. This was possible by the role of the dollar, which was boosted by the collapse of the Soviet Union, as the world’s reserve currency as well as by deliberate policies of the Federal Reserve and the US Treasury Department. Thanks to a series of financial engineering instruments made possible by the abolition of the Glass-Steagall law in 1999 like ABSs, CDSs, interest rate forward contracts, securities in US dollars were declared to be “secure”. Credit rating agencies rated these securities as safe (like those of Lehman Brothers for example), giving them the famous AAA or Triple-A grade. This way debt by private institutions could be treated like currency, at face value, and could be registered as balance sheet without the need to set aside reserves for any risk. Similarly greatly underestimating the exchange rate of some emerging economies, especially China’s, in terms of purchasing power parity resulted in what is an actual subsidy to their exports with the effect that their take-off was far greater than their capacity to guarantee quality, delivery, service, sale network, etc.
Rapidly, the monetary reserves of countries like China, Brazil, India and Russia, not to mention oil exporters, shot up quickly to the benefit of local oligarchies. At this juncture an absurd situation turnes into a tragic one as the international system becomes more unstable. In fact since most people in emerging countries are paid in local currencies, they are denied the benefits brought by higher currency reserves. In China alone this means some 900 million people. The consumptions priorities of by local oligarchies are quite different from those of the rest of the population. Not only can the former expand their ideological or religious influence, but they can also push their countries into a military build-up (conventional and nuclear), raise national prestige (space exploration), and buy luxury items and so on. This could have meant that people in emerging nations might get more food supplied by countries like the United States, Canada, Australia and even the European Union that are rich in water and farmland. Higher food consumption in emerging economies could have balanced capital flows. Instead artificially low exchange rates for emerging nations’ currencies, especially China, pushed up the cost of food. (5) This, in turn, raised domestic tensions to which local ruling oligarchies reacted by re-directing attention externally.
In some countries and under some historical circumstances, export-driven expansion can go hand in hand with a stable system as long as monetary circulation is not distorted. Above all this can happen if the solvency of the system is not jeopardised.(6) But under present circumstances, this risk is high because certain levees have been breached.
US debt
A first parameter of instability is the gross US foreign debt, which rose from US$ 6,946 trillion as of 31 December 2003 to US$ 13.427 trillion as of 31 December 2007.(7) This is how much is in circulation in the world. As of the end of last year it was almost equal to the US GDP (8). Having doubled in a just a few short years, the US economy is not big enough to continue to provide sovereign debt (as monetary reserve currency) in accordance with the growth needs of the world economy.
A second parameter is the staggering rate of growth of the total public debt of the United States. Until 31 December last year, the US public debt stood at US$ 10.6 trillion or 76.75 per cent ratio of GDP. Adding the Paulson plan and the rescue package for Fannie Mae and Freddie Mac (but not counting that of AIG), the ratio jumped to 118.02 per cent.(9)
If the these figures published by Bloomberg are correct—US$ 7.74 trillion in rescue packages—we arrive at about US$ 23.3 trillion of public debt for a ratio of 169 per cent of GDP. In just a short period of time the public debt of the United States almost doubled or tripled. Whatever the case may be, it is by far too high.
Although important, these parameters are not decisive. A study by the International Monetary Fund (IMF) (10) found that when the external public debt of a country reaches 60 per cent of the GDP that country is in dangerous territory and risks a major monetary crisis. Similarly, other circumstances—a high current government deficit (11) and a negative trade balance—contribute to this kind of risk. At present, all of them come together in the United States.
- A d v e r t i s e m e n t
A crucial point is the high percentage of public debt held by foreign investors. For many years after the Second World War the United States was a net creditor to the rest of the world. Since 1987 that is no longer the case. What proportion of the US public debt is held by foreign non-residents after the United States adopted a number of rescue packages this fall remains unclear. The latest available official figures show that at the end last year the ratio between gross foreign debt and net claims of foreigners on the United States (Table 13-5 of the US Government budget for the 2009 Fiscal Year) stood at 61.82 per cent, (12) up from 54.42 per cent in the previous year. It is probable that this year it rose even further. But let us assume that it was the same as that of 2007. Even on the basis of the first number (118.02 per cent of the public debut with respect to the GDP), the threshold indicated by the aforementioned IMF study has been crossed (the ratio is about 73 per cent of the US GDP).
One thing must be made clear. The IMF study obviously referred to emerging economies whose currencies unlike the US dollar are not reserve currencies.(13) It is therefore impossible to determine with any certainty what the level is in the current US case. We can none the less roughly assume that a breaking point is quickly coming up because if we add up US public debt and spending commitment in health case (Medicaid and Medicare) and pensions (social security) we get to 429,27 per cent of GDP.(14)
Last but not least let us not forget that in 2007 Asian investors, especially Japanese and Chinese, led foreigners in investing in financial operations in the United States.
China and the devaluation of the yuan
For years AsiaNews has been focusing on another danger, namely the highly and arbitrarily undervalued currencies of many emerging economies. In the case of China the currency is undervalued by 55.54 per cent. In practice this has enabled China to maintain the devaluation it carried out on 1 January 1994 when it set the yuan (CNY) or renminbi (RMB) at 8.62 against the US dollar when it unified the two different exchanges rates that existed at the time. Devaluation gave China an opportunity to create favourable conditions for itself before it had to drop custom duties to join the World Trade Organisation (WTO).
Currently, because the exchange rate is controlled by the People’s Bank of China, the US dollar is worth about 6.8798 CNY. A simple calculation using 2007 World Bank data can show how much the yuan is undervalued. At the current exchange rate China’s GDP stands at US$ 3.280 trillion. But it that same data is expressed in terms of Purchasing Power Parity (PPP), it rises to US$ 7.055 trillion. What this means is that the real exchange rate should be quite different were it to express the same purchasing power. In fact if we applied the same relationship between China’s GDP in current dollars (6.04 per cent of world GDP) and China’s GDP at purchasing power parity (which is 10.78 per cent of World GDP), a US dollar should be exchanged at 3.821 yuan (hence the latter is undervalued by 55.54 per cent).
At such an exchange rate however, Chinese exports would collapse and most Chinese factories would have to shut down and lay off workers. This would cause social upheavals and threaten the country’s ruling class. Seen as the world’s workshop, China is a great success, but if we consider the amount of human resources, capital and raw materials used with regards to GDP growth per unit then its system of production appears very inefficient. What is more, China’s yuan devaluation in 1994 led right to the 1998 Asian crisis. For Asia that crisis was the price to pay for China’s transition from Communism to a market economy, the equivalent in some ways of the collapse of the 1989 Berlin Wall. Ten years later economic history seems to be repeating itself, many times over.
Trans-national oligarchies
For its transition out of Communism China has adopted an export-oriented development model. As economic history shows, this model lacks internal balance as we are now realising. At present it has led to a mad dash for industrial delocalisation and is a contributing cause of the world’s current financial meltdown. If it goes on any further it runs the risk of provoking an unprecedented monetary crisis with a brutal re-adjustment of the system. So far the model has survived because it has served the interests of those in power, of those who control the purse (the US Federal reserve and to a lesser extent the European Central Bank), manpower (China’s Communist Party for example) and raw materials (Gulf sheiks and Russia’s ruling oligarchy, etc.).
Also the decisions made by the G-20 in Washington to lay the grounds for a new world monetary system in order to save globalisation can serve the transnational oligarchy. Controlling the instruments of payment is the basis of power.
Today an attempt is underway to create on the ashes of the dollar a new de facto world central bank, or perhaps a new Euro-American currency, or perhaps only a North American currency, the Amero. We don’t know. This may be good for the World Bank, the World Trade Organisation, the International Monetary Fund, the Financial Stability Forum, and the various United Nations agencies, the people in charge of the US Federal Reserve, the European Central Bank, the People’s Bank of China, and other central banks. It is not clear whether it is good for the rest of the world.
1. Michael McKee and Simon Kennedy, “G-20 Calls for Action on Growth, Overhaul of Financial Rules,” in Bloomberg News, 16 November 2008.
2. Author’s calculation based on World Bank data for the Gross Domestic Product (GDP) and debt. Other sources say US$ 8,500 billion. See “U.S. Pledges Top $7.7 Trillion to Ease Frozen Credit,” by Mark Pittman and Bob Ivry, in Bloomberg News, 24 November 2008.
3. Private savings by Chinese workers are a must because of the lack of proper social welfare support (pensions, unemployment insure, public health care, etc.). In a context where companies’ bottom lines were not very accurate, to say the least, small investors who put their money in stocks saw their savings wiped out. At the beginning bull markets profited those with inside information; eventually shares lost much more value than other financial products. See “Chinese stocks and the risk of economic crisis,” by Maurizio d’Orlando, in AsiaNews, 22 May 2007. Although people have been forced to save, a situation that has the effect of reducing domestic consumption, they have not been able to invest, except in state banks. The latter are notorious for always being on the brink of bankruptcy and for investing depositors’ savings according to political criteria or turning them over to China’s central bank for investments in Treasury bills and other financial activities in dollars.
4. See John Williams’ Shadow Government Statistics, “Inflation, Money Supply, GDP, Unemployment and the Dollar – Alternate Data Series,” 19 November 2008.
5. See “Food prices reach alarming levels,” by Maurizio d’Orlando, in AsiaNews, 9 August 2008.
6. The precedent of Imperial Germany does not bode well because the demand for raw materials that followed the flooding of world markets by ‘Made in Germany’ goods was one of the causes of the outbreak of war in 1914.
7. US Treasury data. The amount stood at US$ 9.476 trillion as of 31 December 2005.
8. See US Treasury data in http://www.treasury.gov/tic/debtad03.html, http://www.treasury.gov/tic/deb2ad07.html and http://www.treasury.gov/tic/deb2ad05.html
9. Author’s calculation based on World Bank and US Treasury Department data.
10. This is an estimate. See “Depth of the abyss of economic, social, political chaos,” by Maurizio d’Orlando, in AsiaNews, 30 September 2008. See also IMF, World Economic Outlook, Public Debt in Emerging Markets, September 2003.
11. “World Economic Outlook Public Debt in Emerging Markets,” by the International Monetary Fund, September 2003. The problem obtains in case of poor tax collection (Argentina, India, etc.) and excessive public spending in relation to GDP, which is what is happening to the United States since it put into place various financial rescue plans.
12. US$ 8.3 trillion compared to aforementioned gross foreign debt, US$ 13,427 trillion. See “Analytical Perspectives Budget of the United States Government – Fiscal Year 2009,” by U.S. Government Printing Office, Washington, 2008.
13. There is no precedent for this type of insolvency or public debt moratorium, except in wartimes, by a country whose currency is held as a reserve currency.
14. See footnote 9.
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December 9th, 2008 at 5:02 pm
” There ain’t no squarin’ it, NOT this time. This isn’t some bar room brawl, or some creep with a gas can tryin’ to torch some one. Hey ! this is BIG ! This is blood for blood and by the gallons. This is the old days man, the BAD days, the ALL or NOTHING days. They’re BACK. There are no choices left.
AND I AM READY FOR WAR. ”
–Marv
December 9th, 2008 at 5:06 pm
Would you like an F-18 with that ?.
December 9th, 2008 at 5:17 pm
Interesting article indeed!
December 9th, 2008 at 5:31 pm
A nation of debtors. This nation is bankrupt. 23 trillion in debt. Can anyone say Amero?
December 9th, 2008 at 5:46 pm
wow citations. a very rare thing to see on infowars indeed. this is the kind of thing that should be circulated. But look. No comments. Bunch of dumb iliterate hicks only want to read about how obama is wrong, guns are right, and war is inevitable.
December 9th, 2008 at 5:48 pm
becuase we wasted so much of our money on countries that hate us, they just let it sit, and now its worth even less. im going to buy a security system, guns, army rations, and a few other supplies in my house before the foundation of our economy crumbles to the ground. i live in a neighborhood that is middle class, and i guarantee you someone will break into my house sometime. everyone in this nieghborhood have unlocked doors and open safes, its easy targets for people like that, hell i might be the one doing it…
the area i live in, doylestown PA, had their first murder victim EVER a few months ago, in the past couple of months we’ve had about 7 different banks be robbed, one that which i witnessed, and a few thefts have been reported recently too…
times are hard, and if things are bad for an area like doylestown, there will be gangs taking over cities in our country, there will be rebellions, hell there might even be civil war again…
if super-inflation is coming, for the love of god just wait a few years…
December 9th, 2008 at 5:49 pm
With all the ideotic thinking going on with in the system. Some highly respected know nothing may come up with the idea that war got America out of trouble in the 1930-1945 aea. So another one will do the same thing. Wipe the slat clean and start over kind of thinking??
http://www.youtube.com/watch?v=7IrR3o7×1ps. This is so scary it’s funny. It’s wide out in the open and nothing is being done about it !
December 9th, 2008 at 6:33 pm
And the talking heads STILL think inflation won’t take place!
December 9th, 2008 at 6:48 pm
Well this is it. When the other central banks figure out the true depth of the screwing they were handed by these banksters, they will dump the dollar as thier reserve currency. When that happens we will have mega-inflation and the dollar will be reduced to ashes. Looks like that scenario outlined by that Russian not too long ago, the one where he was talking about the US fracturing into small sub-countries and territories, wasn’t such far fetched horse shit after all. I could see that as one possible outcome of the coming melt down. I got my guns, I got some ammo, I just need to get some food supplies in place and Im good- sorta.
December 9th, 2008 at 6:51 pm
“In their view globalisation must not stop; we should not return to protectionism, making the same error made in the 1929 crisis.”
Hate to confuse these globalists with facts but that “error” was not the cause of the Great Depression……
http://en.wikipedia.org/wiki/S.....Tariff_Act
Economic effects
There is no universal agreement about the effect of the tariff. According to the U.S. Statistical Abstract, the effective tariff rate was 13.5% in 1929 and 19.8% in 1933 with 63% of all imports being duty-free. From 1821 through 1900 the United States averaged 29.7% effective tariff rates and peaked in 1830 at 57.3% with only 8% of all imports being duty-free, dwarfing the Smoot-Hawley rate. In addition, imports in 1929 were only 4.2% of the United States’ GNP and exports were only 5.0%. Smoot-Hawley’s effect on the entire U.S. economy may have been small, compared to the monetary policy of the Federal Reserve System. By 1937 the effective tariff rate was reduced to 15.6% when the reaction of 1937-1938 occurred, demonstrating no statistical correlation between this economic downturn and tariff levels. Senator Robert L. Owen testified at the hearings on HR 7230, the bill to make the Federal Reserve banks a national property, that; “In 1937, when the Federal Reserve Board called upon the banks to raise their reserves to twice what they had been before, there was a contraction of credit of two billion dollars.
However, the American Tariff League Study of 1951 which compared the effective tariff levels of 43 countries found that only 7 countries had a lower tariff level than the United States (5.1%). 11 countries had effective tariff rates higher than the Smoot-Hawley peak of 19.8% including the United Kingdom (25.6%). The 43 country average was 14.4% – 0.9% higher than the U.S. level of 1929.
In addition to tariffs, many countries implemented non-tariff barriers to protect their industries in the aftermath of WW II after experiencing the dangers of dependence on imports for vital supplies brought upon by free trade policies. Many nations felt the ill effects of embargoes, naval blockades and submarine warfare upon their national security. An example of this involved Britain and France importing all of their watches and clocks from Switzerland and Germany prior to World War II. They discovered that the lack of a watch industry was a great handicap in building defense equipment during the war. Both nations determined never to be without a watch industry again and placed embargoes on watch imports after WW II.[14]
Non-tariff barriers would become more important in the post-WW II reconstruction period. Japan for example, with an effective tariff rate of 1.6% in 1951 would put many non-tariff barriers in place. In June 1952 Japan’s “Basic Policy for the Introduction of Foreign Investment into Japan’s Passenger Car Industry” placed quotas, tariffs and commodity taxes on imports that closed the Japanese automobile market to American manufacturers for nearly two decades.[15]Japan would also make extensive use of licensing agreements which would transfer foreign technology to Japan in exchange for limited market access as in the case of the U.S. television industry. With Japan’s home market protected, Japanese manufacturers could make large profits at home to off-set the cost of selling their goods at reduced prices in foreign markets (dumping).
Steve
December 9th, 2008 at 7:30 pm
I WISH THIS SHIT WOULD BEGIN IN EARNEST AND QUICKLY ENOUGH TO WAKE UP THE SHEEPLE. IF%10 REALISED WHAT WAS REALLY GOING ON AMERICA COULD STILL BE SAVED. UNTIL THE CRISIS GETS TO BIG TO IGNORE THESE CREEPS WILL GET AWAY WITH THIS ITS A PITY A FEW BIG FTBALL TEAMS DON’T GO UNDER FINANCIALLY THEN THE IDIOT FANS(AFTER THEY HAVE WIPE AWAY THE FAKE TEARS) WILL REALISED THEY HAVE ALSO BEEN SCREWED. ALTHOUGH THEY WILL HAVE NO JOBS AND HOMES BY THIS STAGE. THESE ZOMBIES ARE AN ABOMINATION. THEY MAYBE THE ILLUMINATE IS RIGHT THEY DO DESERVE TO DIE IN THEIR MILLIONS IN FEMA CAMPS WITH THE WOMEN AND SPOILT BRATS SENT TO RAPE CAMPS. GOD HELP US ALL. RUN FOR THE HILLS
December 9th, 2008 at 7:39 pm
Every country part of the NWO is in debt….
Why ? Because money is created at a debt…
Money = debt
Debt = money
Remember 97% of ALL money is digital…
We gotta crack the digital bubble and spread money thruw the poor…
The first one to crack a NWO goons credit-card will be the modern day ROBIN HOOD..
Free money for the poor that’s one way to spend spend spend
December 9th, 2008 at 7:45 pm
Well, my dad’s business closed today. He had to let go of all of his employees. This is truly the beginning of a depression.
December 9th, 2008 at 8:02 pm
“At such an exchange rate however, Chinese exports would collapse and most Chinese factories would have to shut down and lay off workers. This would cause social upheavals and threaten the country’s ruling class.”
Chinese exports of cheap, plastic gadgets would collapse. But their collapse would be quick (albeit painful) as they restructure their factories and begin to consume their own goods. They are in a much better position to recover than us.
December 9th, 2008 at 8:06 pm
I agree with post 5 – “citations” and indicator of the author saying “don’t take my word forit..see for yourself. I like that. The author is presenting resources and not just trying to stir up people’s emotions.
To post 12 Donmen _ am willing to betthe “rich” don’t use credit cards. They invented them knowing the price and debt evils of crredit. They use credit cards to make money, not spend their own.
December 9th, 2008 at 8:09 pm
well #13. sad to hear that. I know the exact feeling having experience it myself while ago. Your dad has still with him his most important asset…. his family..
December 9th, 2008 at 8:11 pm
I am not an American citizen but am a descendant of an American who came to the UK and stayed here. The New World Order will never totally control America. It is not in the program. America is reserved for those who love and serve Jesus Christ. Those who love evil and serve satan, whether they call themselves christian or atheist, will be swept off this continent. America is reserved for the righteous and the wrath of God is about to be unleashed upon the ungodly. An authorized servant of the Lord, a living apostle and prophet, has pronounced that a catastrophe is about to come upon America.
December 9th, 2008 at 8:13 pm
to #13. Sorry to hear that. I know exacly how he must feel, having experience it myself while ago, but your dad still have his most precious asset. His family….
December 9th, 2008 at 9:11 pm
http://www.youtube.com/watch?v=f9oKv0jGrxQ
December 9th, 2008 at 10:06 pm
Government bailout hits $8.5 trillion
Kathleen Pender
Wednesday, November 26, 2008
This article appeared on page A – 1 of the San Francisco Chronicle
http://www.sfgate.com/cgi-bin/.....14C8QR.DTL
December 9th, 2008 at 10:32 pm
I want a million dollars… oops nevermind it will soon be worthless.
December 9th, 2008 at 11:24 pm
Folks, it’s like this.
The average American is TOO ignorant about the underlying cause of current world geopolitics. What’s more, he’s 100% dependent on diminishing employment income to service a tight monetary lifestyle.
The Second Amendment exists in words only. If people try to resist the forthcoming monetary measures, TPTB will simply collapse the US economy for good. Quit kidding yourself otherwise.
The more American resist the current agenda, the more they’re going to get hurt, and badly at that.
It’s too late America. You f*ck up BIG TIME. There’s nothing you can do in terms of resistance. Your only recourse is to make lemonade out of the lemons on your table.
Again, Americans, as a whole, are FAR TOO ignorant to mount any viable resistance.
December 9th, 2008 at 11:25 pm
Check out the site! http://www.propagandawerks.blogspot.com
December 9th, 2008 at 11:28 pm
It is hard to make lemonade out of a leased Lexus and a “Country French” monstrosity, but they can try.
December 10th, 2008 at 12:05 am
How many countries out there owe the United States money. Why don’t we just call their loans due plus the interest. Why dont we demand return of foreign aid money and claim that it was a loan?? Also while we are at it, we should begin rebuilding the United States as an industrial production nation. Restore and reopen the factories, refineries, and mines. Become a producing nation again! Employ those who are out of work by making old factory properties available for pennies to small companies and corporate developers as long as they are forbidden to outsource jobs to other countries. END FREE TRADE NOW!
December 10th, 2008 at 12:48 am
http://xerobank.com/promotions/stop-the-spying/
December 10th, 2008 at 1:19 am
#23 is correct, it is already too late and if America resists it is an instant World War III and the forced collapse of the U.S. economy, taking out the whole world in its wake. It is every other country out there that will call in their loans on the worthless U.S. dollars, not the other way around. The powers that be will simply fund the whole rest of the world against the U.S. in military action. This is why the trillions are being spent on bailouts. So the bankers can get the rest of the gold (and dump paper money) before finishing the U.S. dollar off once and for all. It is only buying time before the inevitible happens.
The average Joe can only get his food supply in order, get off the grid, and wait for the country to finally be totally sold off to the Chinese who will be the new ruling Empire.
The American Empire is finished, same as Rome, Babylon, etc, etc. History has already repeated itself, and the sheep have sat by and done nothing once again. Debase the currency, and its only a matter of time.
December 10th, 2008 at 2:41 am
#26, read confessions of an economic hitman by John Perkins and view Stiglitz’s dvds on the IMF/World bank.
Those so called loans to the third world were used to force these countries to buy things they didn’t want or need, so in a sense it was rigged from the beginning. Blame the world bank, the IMF and assorted NWO types, not the 3rd world. Trust me, the book is a great read.
December 10th, 2008 at 2:56 am
Deflationist by nature.
The moneymongers and liability are nothing new.
Perhaps a Golconda can be arranged?
December 10th, 2008 at 5:49 am
http://www.falsebeliefs.com
December 10th, 2008 at 7:24 am
You got to give to them , this FIAT currency scam is a masterpiece of deception , and they have
a lot of nerve !!! The problem is KARMA…b…bdi…both as far as this happening in the first place
( a…b… big thank to the sheeple out there also !!! ) , and of course , the perpetrators ( I guess some people are hardcore masochists !!! )
December 10th, 2008 at 9:14 am
This article is lying to us. The reall U.S. fiat currency amount in the world is closer to $50 trillion.
December 10th, 2008 at 10:09 am
An interesting article on the capabilities of humans. I see some of that on here. Think about this artcle if you decide to read it and see if the shoe fits you or anyone you know.
http://edition.cnn.com/2008/WO.....cnnSTCText
December 10th, 2008 at 10:12 am
Very informative. Well researched and presented. Thank you.
December 10th, 2008 at 12:34 pm
THAT WAS A GREAT ARTICLE ,THANK YOU.
December 10th, 2008 at 12:46 pm
we don’t even get the choice to choose a world government its chosen for us but lets deny and disprove world governance doesn’t exist and it doesn’t mean world government. the unemployment numbers is a joke. my brother lost his job yesterday, my son hasn’t worked since fire season and unable to hold down a real job since. people this is so bad i don’t think you understand the corruption taking place and has been for a long time. i have a bad feeling my family and i will never see the money owed to us that was stolen by the u.s. government. the treasurer was appointed by george bush but this was going on even before then. our trust accts were looted and the records shredded. the 2008 story that aired briefly in regards to the oil exec. sex scandal had everything to do with this. they were having sex and drug parties on our money and we weren’t even invited. enron was a drop in the bucket compared to this scandal. i’m no longer angry i’m just numb!
December 10th, 2008 at 12:49 pm
I’ve come with a message of information:
There will be no uprising. There are no balls in america, there are no men in america.
The big collapse everyone is waiting for will not happen. The powers are not going to give up control like that. They will provide us with a slow demise.
There are too many traitor cops and traitor troops for the people to handle. Most the troops are traitors, the few good ones have killed themselves.
When the major news networks are all talking up gold and “spilling the beans” about the economy then you know something is wrong. They allow Peter Shiff to spill the beans on tv and that’s not weird?
There will be no uprising. There are no balls in america, there are no men in america and they prove that with each day that passes.
December 10th, 2008 at 1:11 pm
Good article.
Though not necessarily related to the article above, for those of you interested in what the real unemployment is go to Bureau of Labor Statistics provided below. Go to page 19 – Table 12 and see U-6 total unemployed which is as of November 30, 2008 is 12.5%. As many of you that know, during the Clinton Administration the government changed the way they calculate unemployed as well inflation. Don’t be surprised that at this time next year (2009) you will U-6 unemployed at 17-18% even with all of O’bamas machinations regarding putting millions to work installing latrines and “kinder lagers” at the FEMA concentration camps.
http://www.bls.gov/news.release/pdf/empsit.pdf
December 10th, 2008 at 1:14 pm
fools. this is what you get for watching tv instead of educating yourself. you fools get your facts daily from infowars.com as they happen. i don’t watch tv like you useless humans do. i found out about this “recession manufactured by the united states goverment to destroy the dollar and replace it with a new currency called the amero” last year, 2 months before it started, when the dow what 1400+. useless human beings.
the war on terror is fake as everyone here knows…
global warming is fake too…
the NWO will use these to create a one world goverment.
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im 1 year ahead of you guys…heres whats going to happen:
the nwo dont want a third world war.. they want america to control the middkle east. there will be more war in the middle east. there is a chance the NWO will fail if china or russia become a superpower and can stop america from gaining the resources in the middle east.
if americans dont do what the nwo tell them to do… the contingency plan is martial law…it always has been.. and i was happy to see i was right when that guy threatened to use martial law if the bailout plan wasnt passed.
oh and the americans will be technologically enslaved… ie chips, invasive survellence, all personal information collected in a database
and when they have absolute power… they will murder yuo all.. only the 6 wealthy familie bloodlines will remain… and the will have designer babies
they will suceed.. and youll live to see it until the end… when they chase you down with robodog
comment back-im just interested to see if anyone is listening to me, disagrees or whatever. i posted a couple of warnongs on digg last year. could have saved your economy 2 quadrillion dollars if u listened to me..
December 10th, 2008 at 4:02 pm
I totally agree with you #42.
And one more thing: There are no balls in america, there are no men in america and they prove it with each day that passes.