SkyWatch Canada
March 4, 2010

Unemployed line up at a job center.

Most non-delusional people who understand a little bit about basic macroeconomics know that the reason for the present intentional economic crisis is that banks in late 2008 started cutting off credit which then effected everyone and everything in all sectors of the world economy. These banks decided to loan out gobs of money secured by fictitious toxic derivatives (bets), supplied by crooks who never intended to make good on these derivative obligations. Then as these derivatives matured and the crooks didn’t pay up those loans became unsecured and the banks started to panic. This panic caused them to cut the worlds credit off plunging the global financial system into a slump comparable to the great depression. But the buck doesn’t stop there. That’s just phase one of the collapse. When the credit markets seized up in late 2008 the governments of the world started their money printing presses and started bailing out the banks who had cut off the credit. By the end of 2009 credit was once again available and despite a few million jobs being lost in the US alone, jobless claims started slowing down. In Q4 2009 , Canada and the US reported record surges in their GDP giving some people false hope that the good times are here again and the economies of the developed world are going to start once again down the path of infinite growth. Nothing is farther from the truth.

It is known by many that the sum of the worlds outstanding derivative obligations is around 1.4 quadrillion dollars (1,400,000,000,000,000), which is about eight times the worlds GDP. These debts can never be repaid. Unfortunately the intention was never to repay them. The intention was to provide an excuse for the central banks of the world to run the money printing presses unendingly until the world enters global hyperinflation and paper money and all national currencies disintegrate. Then out of this chaos a solution will arise. We will probably see the dawn of a new global currency, a digital currency. Just don’t expect a fair exchange rate for you old dollars.

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So where in this disintegration process are we now ? Jobless claims are slowing and GDP is rising, which is good right ? Wrong. GDP isn’t actually increasing, nor does the decrease in jobless claims mean the good times are back. The only reasons these things are happening is because of the so called liquidity injections (aka printing fiat worthless paper) are increasing the money/credit available to employers and companies. So we are only seeing the illusion of recovery, as hyperinflation is just taking flight. It is important to note that although officially GDP can’t increase due to inflation as it is inflation adjusted, governments use a trick known as hedonic quality adjustments to hide the real inflation from the people. Since 1967, this trick has allowed the financial oligarchs of the world to rob the middle class slaves silly through massive inflationary price increases, and not matching the true rate of inflation with fair cost of living increases as those cost of living increases are based on incredibly understated inflation numbers. It’s safe to assume today that the official inflation figures in North America are at least under stated by a factor of three or four. This is the only reason GDP has ‘increased’ in the 4th Quarter of 2009. We are now on the brink of hyperinflation and can expect a devaluation of the US dollar by 30-50% in 2010 alone. Watch oil and gold prices as they are the best indicators of dollar devaluation. Now prepare for phase two of the great unraveling and go and buy some gold, food and ammo.

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