The Coming Financial Armageddon
The day began auspiciously enough for it was a bright and sunny Monday morning. But, in the back of John Hopkins mind he knew that something was not quite right. It was at this moment when John was just starting to pour his first cup of coffee that the phone rang. "Hello" answered John. "Mr. Hopkins this is Rick Smith the financial officer at Bank America." The moment that John heard Bank America he knew something unraveling was about to happen. Ever since last night's news a very ominous feeling came over John. The news of another impending financial crisis that was about to strike was the major lead story on every news station. Holding the receiver in one hand John quickly turned on the TV to CNN to catch the latest financial news and sure enough the news was even more dire than ever. "Mr. Smith what do you want? " replied John. "Well! Mr. Hopkins the Bank as you have probably heard by now has been hit with another blow from our over seas investments and in order to cover any damage we are taking the very last measures of financial means to do so. Let me get straight to the point we are calling in your mortgage. You have 24 hours to comply or we will be forced to foreclose on your home."
Just as John hung up the phone a large knot hit his stomach as if the wind had been knocked out of him. Gathering his thoughts since he just purchased his house two years ago with a 30 year fixed rate mortgage at 4.5% with a monthly payment of $950 including insurance have continued to put a drain on his finances considering his job only paid less than $30,000 per year. Considering himself lucky to have been accepted in the first place to qualify for such a mortgage when his credit was like down in the dumps sort of speaking John nevertheless eagerly awaited the day when he could finally move in with his wife of four years and their two year old son. The feeling of utter frustration and anger soon took over because his mortgage due in 24 hours was far and away more than three years salary. A loan of $120,000 was beyond his or any of his neighbors could ever hope to come up with. Frantic desperation soon swooped over and replaced the rage and anger that John was feeling.
He knew the last thing he needed to do was loose his job. But, little did John realize that this banking crisis would soon put millions out of work. Another repeat of 2008? For a moment John thought that it just might be, maybe. But, now it was beginning to look like this time around this crisis will have a far greater impact than anyone ever imagined. Like a tital wave gushing in, this meltdown of the nations financial institutions hit like a sledge hammer. When John went to work that morning he was called into the managers office. A few moments later pink slip in hand John was now facing not only foreclosure but he was also faced without any means of supporting his wife and child. Fraught with disbelief that this could actually happen to him, no job, no home and very little money John made his way to the only possession he had left, his old trusty Honda Civic.
Could this story happen today. The answer is yes and it has been repeating everyday all across the country for years. Sure, there are some bright spots on the horizon but the hard cold facts support the chances that too many people are still caught in and more will be swept up in a Tsunami of economic and financial desperation. Today, John has become just another statistic in the growing number of families who are swept up into the white water of new found poverty and homelessness. According to recent reports many more people just like John's situation have put the United States well on the way to becoming a third world country. Who would have ever thought that it was just 50 years ago that America's promise for a better future was being made. Now, the harsh reality has put millions into that vicious cycle of poverty from which they will never be able to escape. What is looming behind this most recent financial crisis and lurking poised to evaporate those bright spots is a juggernaut of financial Armageddon lying in wait. Hidden behind the facade of the Federal Reserve is an undercurrent of economic disaster that has been gaining momentum to hit the financial markets with more devastating results that will cripple the economics of most of industrialized world.
Today, the known industrialized world is on the verge of being thrust into a cataclysmic new economic era. A bigger crisis than the last financial fiasco of 2008 and even a far greater crisis than the Great Depression will soon hit the United States. The darkest night in financial history is about to be unleashed.
To understand the complexity of this coming doom in the worlds biggest economy we have to trace it's roots as far back to 1910. It was in that year that a clandestine meeting of the United States biggest bankers, at the time these individuals represented one sixth of the world's wealth, met in Hoboken, New Jersey. Inside a private railcar proceeded by a US Senator and under the cover of darkness, these financiers were on their way to organize the greatest financial and economic threat the United States has seen since Andrew Jackson. Attending were Rockefeller, Assistant Secretary of the Treasury, two Presidents of the largest US banks, Paul Warburg, a German partner of another large New York bank and an aid to J.P. Morgan. this meeting was no coincidence either it was planed well in advance but to keep it secret as to what their intentions were that secrecy had to be kept. Upon arriving at Jekyll Island they set out to devise and create an financial institution that would maximize profits, eliminates competition and would be able to freely utilize the power of the US government. It has become known as the Secretive Committee of 7 that now controls the world. The creation of the Federal Reserve was born and signed into existence by President Wilson in 1913.
The Federal reserve created by the power brokers of the day created an independent institution that today is the most powerful financial institution in the world. It pays no income taxes and it enables un-elected individuals to control Americas currency system which is against what the Constitution states. While most Americans still don't realize is that the Federal Reserve is not an arm of the government it is a private institution. A recent book has emphatically stated that the Federal Reserve was the brain child of the Rothchilds along with Moses Seif, Goldman, Sachs and the Rockefellers to replace the Bank of America that Andrew Jackson closed.
Today, the harsh reality is that the United States is deeper in debt than in any other time in history. In creating the worlds largest fractional reserve banking system, a system which lets its members create money out of thin air especially with the current QE2 endeavors is now over 17 trillion in debt. The United States debt has reached into every persons wallet today. In essence it has created the biggest Ponzi scheme in history. With so much debt that America is faced with has created a financial future the likes of which is too terrifying to contemplate. It's like the four Horsemen of the Apocalypse causing devastation all across the countries of the world.
To fully understand the scope of this coming financial disaster we have to realize that the fed was set up first to line the pockets of our rich bankers and then to protect the value of the dollar. Before 1913 the US dollar was very resilient. Between 1813 and 1913 the value of the US dollar increased by more than 95%. But, ever since 1913 the United States have been witnessed to the greatest financial panics in all of history. The Great Depression of the 1930's, the draining of gold reserves in the 60's, the stagflation of the 70's, the dotcom bubble in the early part of the 21 st century, and the current housing bust and recession all occurred because of the Federal Reserve's policies. As for protecting the value of the dollar, well one hundred years ago that dollar today is only worth 4 cents.
All across the globe a wave of disinflation has engulfed practically every country. The European Union has continued to wallow in economic recession, China's economy has continued to be a real cause for concern, and here in the United States we are experiencing a continued grueling case of economic recession, contrary to what our leaders of state continue to emphasize. Even Japan like the United States despite all the massive QE2 programs cannot seem to break the back of the deflationary pressures on their economy. In reality the truth is the same here in the United States. All those QE2 injections of billions of dollars has only increased the national debt, increased the widening of the wealth disparity gap, and put millions of citizens having to grab on to any safety net they can. When in actuality these safety nets have disappeared just when millions need them most leaving millions destitute.
In the recent report from both the Producer and Consumer Price Indexes continue to show deflationary forces at work. Wages continue to stagnate, economic production has been stalling for years, employees are more and more disenchanted with their jobs, all the while prices continue to fall. One of the largest concerns and a major cause to worry is even with falling prices the majority of people have so little disposable incomes or none at all to even be able to make purchases. Hence the deflationary trend only continues thrusting this nation deeper in a depression. The battle against deflationary economic pressures has been lost. Why, because the Fed failed realize what many have been saying all along. the QE2 measures went to the wrong places. Despite the trillions of dollars injected into those too big to fail financial institutions and the auto industries back in 2009.
The real concern now is that ever since 1944 the world has used the US dollar as the medium currency of exchange. But, the fact of the matter is major nations like China, Russia, Japan, Brazil, Iran and South Africa, to name a few, are already actively trading directly with one another in local currency. They have begun to sidestep the dollar altogether and that signals a financial day of reckoning that is about to hit the United States. A monumental shift in global trade is already taking shape and the demand for US dollars has continued to decline. We have to understand it is that demand for US dollars that has kept our interest rates low and the prices for various commodities less expensive for Americans. To compound the problem is the other fact that too many Americans still cannot afford them because of so little disposable incomes. A continued deflationary trend only intensifies.
The handwriting is already on the wall. On June 1st of this year China and Japan began trading using their own currencies. Just recently a new trade agreement between Brazil, Russia, India, China and South Africa have now promoted the use of their national currencies when trading instead of the US dollar. In other African nations China is it's largest trading partner and is doing everything it can to replace the dollar with the Chinese yen. When Standard Bank Africa's largest financial institution has predicted that by 2015 trade between China and Africa will be equivalent to over $100 billion. And, when you have China buying oil directly using their own currency from the United Arab Emirates the Chinese National Bank is reporting that it is worth an equivalent of over $5.5 billion annually. Now, when Iran is beginning to buy shipments of rice, sugar, and soybeans from India to circumvent U.S. sanctions on its oil shipments India is now paying Iran using the Indian rupee and gold.
Fact is, the Fed’s fiscal ploys over the past 100 years that have only managed to make a few people super wealthy while draining the nations financial resources in in the process, our ballooning debt, along with today's political incompetence in Washington has given the world no choice but to abandon the dollar. Everywhere we turn the US dollar has begun to cease being the world's first currency. Here's the real hard truth; If the US dollar is no longer the world's reserve currency then life here in America will have many more people in situations like John Hopkins.
A political reality, yes. An economic opportunity to vastly improve the situations for all those John Hopkins depends on the course of direction the United States takes today. But, a dysfunctional congress that is so inept at doing what is right for the majority of Americans continues to thwart the chances of ever creating economic opportunities that will keep the US dollar as the worlds first currency. So it all comes down to this; we the people. It is defined by the Bill of Rights: " But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security." To that end and to ensure our future we have an obligation to pressure the President and congress to implement National Economic Reform with it's ten Articles of Confederation. A total reform of this nations political and financial structures is the only way to resolve this impending crisis before it really is too late. To secure the future of all those like John Hopkins all across America and restore the vitality of the American experience is paramount that National Economic Reform is the course this nation takes now and for the future.