Planetary Bankruptcy

Black clouds are gathering above the horizon. The IMF just announced that the world trade collapsed by staggering 45% in the last quarter of last year. Even the euphoria of Obama's inauguration didn't last long. The same day Dow closed below 8,000 as banking fears were gripping the European markets and bringing shockwaves from the United Kingdom too. British Banks got a £1TN injection which didn't prevent RBS shares to plunge 70%. London is faced with a bloodbath. Brown admitted there is not yet a limit on how much risk taxpayers must bear as a result of his rescue plan, but he even promised financial institutions that they will get more cash if they pass it on. Looks like the Brits are too being set up for the mother of all crashes. With the UK government debt alone and future liabilities not included, this means that every new baby is born with £17,000 debt. Checkmate! UK cannot take Iceland's soft option, Evans-Pritchard explains:

The parallels with Iceland are disturbing. The country was ruined by the antics of its three big banks. They built up foreign liabilities equal to 900pc of GDP. Operating as hedge funds, they borrowed in dollars, euros and pounds to speculate....If Britain walked away from UK banks' $4.4TN of foreign liabilities – worth eight times Lehman Brothers – it would destroy the credibility of the City and take the whole world into deeper depression... The sovereign debt of Russia, Ukraine, Greece, Italy, Belgium, Austria, The Netherlands, Ireland, Australia, New Zealand and Korea is all being tested by the markets. The core of countries deemed safe is shrinking by the day to a half dozen. Sadly, Britain is no longer one of them. (01/20/09)

Describing in length the fundamentals of the American economy at this stage is more or less a naughty intellectual exercise. As the bank bailout is expected to cost $4Tn, U.S. financial losses could reach $3.6TN and suggest that the banking system is 'effectively insolvent' contends Nouriel Roubini, New York University Professor and former financial Clinton's adviser. Back to spending orgy. The clock is really ticking; even the legendary investor Jim Rogers predicts a total decline in 2009. We can get a better sense of absolute gloom and doom if we take into account the Asset 3 Level also known as ‘mark to make believe,’ thus whose market prices are based on the banks' 'unobservable inputs' that 'reflect management’s own assumptions'. So now we have phantom asset values which remind of the CDOs' notional values, also called by the Warren Buffett WMDs. The Titanic is about to hit the iceberg. Gerald Celente doesn't chew his words when commenting on the ongoing dreadful meltdown. The situation is so dire out there that global banks have joined the clamour for bailouts. Do our demented global elites deserve to be rescued - honestly?

Almost every teenager has been warned about the dangers of getting into debts, but they all grew up accepting that a government debt was acceptable and even honorable. As this editorial points out earlier, if the scheme is run by the top managers of a country, the amount of debts can only grow exponentially. One doesn't need to be a rocket scientist to figure what happens when the national debt exceeds the GDP. For the bankers it doesn't really matter, they operate for profits and when money is debt (does not exist) massive liquidations are ineluctable. The (bank) shareholders and the taxpayers are simply left holding the bag. As stipulated in 'Beyond The Age of Usury', today's events are far from being isolated. Luckily, such facts are everywhere on the Internet: we only have to keep an open mind and allow reality to reveal itself. They represent a recurrent pattern that is concealed to preserve a feudal hierarchy. The book titled The Bankers That Broke The World and written by Liaquat Ahamed - here reviewed by the New York Times - tells us about a macabre monetary story that looks much like today. The parallels are uncanny. That book should be on your must read list this year. If your budget is tight, there are plenty of free online books that will do the job and which you can find in the library of the site.... time is running out. As financial illiteracy and corruption are about to engulf the whole planet, some speculate more and more about the meanings of The Mayan 2012 prophecy. One thing is certain though: it is The End Of The World As We Know It - or TEOTWAWKI as an acronym frequently used by the doomsayers.

It is going to take the collapse of the dollar to have a mentality change and address central banking, Congressman Ron Paul conceded recently on MSNBC. Since we cannot escape what is coming toward us, a Biblical debt jubilee and the implementation of 'honest money' are the only long-term answers. The people have to free themselves because the 'powers that be' will never admit to being the rulers by deception. More positively, this battle cannot take place on the streets but in each of us individually; and it can only be won if waged peacefully and spiritually. There is no such a thing as a war to end all wars.

And ultimately, everything is bound to be overcome or disappear eventually. If 'We The People' were able to find our way back to prosperity, we'd no longer be living in a world where destruction is more profitable than peace and with the fear of technology. It would also enhance the smooth transition to the development of a resource based economy as advocated by Jacky Fresco who dedicated is entire life to The Venus Project... (to be continued)

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