By Lorimer Wilson
A monumental change is coming, and for most Americans, it will be painful, especially for the unprepared. [Let me explain just what is happening, why it can not go on as is and what we can likely expect in the future.]
So says Greg Hunter (www.usawatchdog.com) in edited excerpts from his article* which Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!) andwww.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) has edited ([ ]), abridged (…) and reformatted (some sub-titles and bold/italics emphases) below for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.
Hunter goes on to say, in part:
In the last week or so, I have noticed an unusual amount of really well written and researched articles warning of impending doom and financial horror. These articles are not written by a bunch of angry uneducated bloggers but by money managers, investors and financial writers. All are people who got it right leading up to the meltdown of 2008, and my bet is they are right again. The mainstream media (MSM) told you after the 2008 crash that “nobody saw that coming,” which is a bold faced lie that will not work again.
Jim Quinn of TheBurningPlatform.com wrote a tour de force of troubling realities (Click here to read this very long but very good Jim Quinn post) you will never hear on the MSM. Quinn lays out the case for coming ruin with stats, charts and razor sharp logic in a post called “Illusion of Recovery–Feelings vs. Facts”. [I edited and abridged Quinn’s article for the sake of clarity and brevity to provide a fast and easy read and titled it (with opening paragraph) as follows:
What passes for journalism at CNBC and the rest of the mainstream print and TV media is beyond laughable. Their America is all about feelings. Are we confident? Are we bullish? Are we optimistic about the future? America has turned into a giant confidence game. The governing elite spend their time spinning stories about recovery and manipulating public opinion so people will feel good and spend money. Facts are inconvenient to their storyline. The truth is for suckers. They know what is best for us and will tell us what to do and when to do it.]
In his summation, Quinn says, “there is no avoiding the final collapse of a boom created solely by credit expansion. Those in power will never voluntarily relinquish their grand game of pillaging the wealth of the nation, so economic collapse will be the ultimate result. They will continue to use propaganda, printing presses, and half-truths to further their agenda but those who examine the facts will come to a logical conclusion that we are being sold a great lie.”
Other headlines read:
This analyst sees the perfect storm of converging criteria almost perfectly timed and aligned with the 2012 election cycle. When the moment arrives, the financial earthquake will rapidly demolish the existing highly precarious financial system. Government will stand by helpless, unable to shield itself, much less its vulnerable citizens or private financial institutions from the tsunami of debt and currency destruction. 2012 is shaping up to be the blockbuster main event of the ongoing financial crisis. Massive amounts of new debt, vast quantities of additional digital dollars and the spark of higher interest rates will set off version 2.0 of the credit-driven financial implosion.
I believe our fiscal situation is much worse than most people realize. True, the situation might be resolvable with a hard-nosed turnaround specialist in charge [Romney?] but, even here, the emphasis is on “might”! In a political context, where citizens have been conditioned to believe they are entitled to live at the expense of government (i.e other citizens because, after all, government has nothing that it first does not take from someone else), the situation is beyond hopeless. Let me address the true economic situation of the U.S. by way of an email I received from a regular reader recently.
The U.S. government is spending more than a trillion dollars more than it takes in every year…[which] all gets into the pockets of ordinary Americans [who,] in turn,…use that money to pay the mortgage, buy food, shop at the mall, etc. – creating a “false prosperity” bubble that is not real. It may feel real to you right now, but it is unsustainable…We are living in the greatest debt bubble the world has ever seen and, as such, a devastating economic collapse is on the horizon no matter what we do [so] don’t let this false prosperity and this “calm before the storm” fool you…There is going to be a massive amount of pain so you might want to get yourself and your family prepared for that.
Each of the above articles -and there were several more I left out for the sake of brevity – all feature sound analysis…[but] only talk about the facts and fundamentals of the economy. War in the Middle East is not mentioned in any article and when you consider hostilities featuring Syria, Iran, Israel, China, Russia and the United States, the mind boggles. War would bring collapse, chaos, and financial calamity in very short order. Oh, and by all means, let’s throw the European debt crisis into the mix for good measure.
Wall Street insider and financial expert James Rickards thinks the most likely scenario coming is“chaos” that will come from the collapse of the U.S. dollar. In an interview this week, Rickards said: “There is still time to pull back from the brink, but it requires a specific set of policies:
- breaking up big banks,
- banning derivatives,
- raising interest rates to make the US a magnet for capital,
- cutting government spending,
- eliminating capital gains and corporate income taxes,
- going to a personal flat tax, and reducing regulation on job-creating businesses.
However, the likelihood of these policies being put in place seems remote – so the dollar collapse scenario must be considered.”
Rickards thinks things will get so bad that: ”The U.S. government will resort to emergency economic powers. Few Americans are aware of the International Economic Emergency Powers Act (IEEPA)… it gives any US president dictatorial powers to:
- freeze accounts,
- seize assets,
- nationalize banks, and
- take other radical steps to fight economic collapse in the name of national security.
Given these powers, one could see a set of actions including seizure of the 6,000 tons of foreign gold stored at the Federal Reserve Bank of New York which, when combined with Washington’s existing hoard of 8,000 tons, would leave the US as a gold superpower in a position to dictate the shape of the international monetary system going forward, as it did at Bretton Woods in 1944.” (Click here for the complete Rickards interview.) [Also read Bock and Rickards Agree: Governments Want Gold to Go Higher!]
The financial collapse is already in progress no matter the MSM happy news spin.
- Real estate prices continue to decline despite a 30-year mortgage rate at or below 4%.
- Millions more homes will be foreclosed on in the next few years.
- The true unemployment and underemployment rate is 22.5%, and there is little hope of turning things around quickly with American manufacturing gutted and shipped to China.
- A record 46 million people are on food stamps.
- At least 90% of all mortgages are supplied by the government.
- The Fed is holding a key interest rate at 0% through 2014 and is starting a new round of money printing (QE)…
- Vehicle sales have been propped up with a new round of subprime financing.
- America’s debt to GDP is 100% or more, and another debt ceiling increase will probably be necessary before the November election.
- The banks are allowed to use government accounting fraud to make them look solvent.
- Most U.S. states are not only flat broke but underwater with massive debt loads.
- Bankers who created this mess with trillions of dollars of fraud are not prosecuted for fear of speeding up the coming collapse.
- Fuel and food prices are rising, and inflation is running at 11% (if it were calculated the way the government did it in 1980).
- As the dollar is debased, inflation will spike.
The above are just a few signs of an unfolding tragedy.
The biggest problem America has is crushing debt that it will never pay back. Dollars are loaned into existence, and many have been created to prop up the banks and the economy. You cannot fight a debt crisis with never-ending bailouts and currency creation. That’s like fighting fire with gasoline.
A monumental change is coming, and for most Americans, it will be painful—especially for the unprepared.