Wednesday, December 31, 2014

Janet Yellen’s Christmas Gift to Wall Street

Infowars.com
by Ron Paul
Dec 23, 2014
http://www.infowars.com/janet-yellens-christmas-gift-to-wall-street/

Last week we learned that the key to a strong economy is not increased production, lower unemployment, or a sound monetary unit. Rather, economic prosperity depends on the type of language used by the central bank in its monetary policy statements. All it took was one word in the Federal Reserve Bank’s press release — that the Fed would be “patient” in raising interest rates to normal levels — and stock markets went wild. The S&P 500 and the Dow Jones Industrial Average had their best gains in years, with the Dow gaining nearly 800 points from Wednesday to Friday and the S&P gaining almost 100 points to close within a few points of its all-time high.

Just think of how many trillions of dollars of financial activity occurred solely because of that one new phrase in the Fed’s statement. That so much in our economy hangs on one word uttered by one institution demonstrates not only that far too much power is given to the Federal Reserve, but also how unbalanced the American economy really is.

While the real economy continues to sputter, financial markets reach record highs, thanks in no small part to the Fed’s easy money policies. After six years of zero interest rates, Wall Street has become addicted to easy money. Even the slightest mention of tightening monetary policy, and Wall Street reacts like a heroin addict forced to sober up cold turkey.

While much of the media paid attention to how long interest rates would remain at zero, what they largely ignored is that the Fed is, “maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities.” Look at the Fed’s balance sheet and you’ll see that it has purchased $25 billion in mortgage-backed securities since the end of QE3. Annualized, that is $200 billion a year. That may not be as large as QE2 or QE3, but quantitative easing, or as the Fed likes to say “accommodative monetary policy” is far from over.

What gets lost in all the reporting about stock market numbers, unemployment rate figures, and other economic data is the understanding that real wealth results from production of real goods, not from the creation of money out of thin air. The Fed can rig the numbers for a while by turning the monetary spigot on full blast, but the reality is that this is only papering over severe economic problems. Six years after the crisis of 2008, the economy still has not fully recovered, and in many respects is not much better than it was at the turn of the century.

Since 2001, the United States has grown by 38 million people and the working-age population has grown by 23 million people. Yet the economy has only added eight million jobs. Millions of Americans are still unemployed or underemployed, living from paycheck to paycheck, and having to rely on food stamps and other government aid. The Fed’s easy money has produced great profits for Wall Street, but it has not helped — and cannot help — Main Street.

An economy that holds its breath every six weeks, looking to parse every single word coming out of Fed Chairman Janet Yellen’s mouth for indications of whether to buy or sell, is an economy that is fundamentally unsound. The Fed needs to stop creating trillions of dollars out of thin air, let Wall Street take its medicine, and allow the corrections that should have taken place in 2001 and 2008 to liquidate the bad debts and malinvestments that permeate the economy. Only then will we see a real economic recovery.

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VIDEO: 2015 - The Year Of Collapse

Tuesday, December 30, 2014

VIDEO: Big Banks Preparing To Loot Pensions And 401K's

Chain Reaction of Problems Coming In 2015: “Collapse Will Be On A Scale That Is Many Magnitudes Greater Than 2008″

Mac Slavo
SHTFplan.com
December 30, 2014

If you’re like most Americans, then you are absolutely loving the price you paid this week for a gallon of gas. Just a couple of years ago it was not uncommon to see a $75 price tag for filling up your car. Today, you might be driving off for half that amount.

On the surface the recent drop in the price of oil has been a huge boost to America’s pocket books. But according to some analysts we shouldn’t be to quick to celebrate. The U.S. Oil and Gas industry has seen incredible job growth during the recession, with nearly 800,000 new jobs being attributed to domestic fracking and drilling expansion. At over $100 barrel, there was plenty of money to go around.

But with a sub-sixty dollar price point, it’s quite possible that all economic hell is about to break loose.

For many it has already begun.
Thousands of recently highly paid workers have been laid off after the oil price plummeted 50 percent in 2014. At least four American oil-producing states are already facing budget problems due to decreasing oil revenues.
[...]
In a study published last year, the Council on Foreign Relations warned the largest job losses caused by sharp decline in oil prices are going to take place in North Dakota, Oklahoma and Wyoming, where the number of drilling rigs is decreasing.
[...]
According to Tom Runiewicz, a US industry economist at IHS Global Insight, if oil stays around $56 a barrel till the middle of the next year, companies providing services to oil and gas industry could lose 40,000 jobs by the end of 2015, while oil and gas equipment manufacturers could slash up to 6,000 jobs.

These workers can earn more than $1,700 a week, much higher than the average $848 a week payment for other workers, the WSJ reported. When experienced workers lose their highly paid jobs, they stop paying their bills.
Source: RT
Those are the conservative estimates and they are based on a $56 price point, which is almost exactly where we are today. But Saudi Arabia and other OPEC nations have suggested the price could drop to $40 or even as low as $20.

In such a scenario we could easily see widespread layoffs in an industry that currently employs over 10 million Americans.

But that’s not even the worst of it.

While losing 50,000 or even a million jobs will have a major impact on consumer spending, and thus the economy, the real problem is the massive amount of leveraged bets and debt currently in the system. There are trillions of dollars of derivatives and leverage at play in financial markets, much of it centering around the oil & gas industry. Should the price of oil remain at these levels or go even lower then a lot of major financial institutions are going to be in trouble.

In a recent interview with King World News, John Ing says that not only did Congress remove financial safeguards when they passed their latest budget bill, but by doing so they left America susceptible to a disaster that will make 2008 look like a dress rehearsal.
While everybody appears to be celebrating the record highs on Wall Street, we are also seeing a loss of public trust.  One key example of this loss of public trust is when you look at the $1.1 trillion spending bill in the U.S., where there was the dilution of the Dodd-Frank Act which now allows for bail-ins in the United States… This will lead to disastrous consequences…
[...]
Meanwhile, the derivatives monster has gotten even bigger.  With the drop in the oil price we have yet to see the impact of the credit default swaps and what this will mean for the stability of the global financial system. 
This will certainly set off a chain reaction of problems in 2015.
[...]
The 2008 collapse was just a dress rehearsal compared to what the world is going to face this time around.  This time we have governments which are even more highly leveraged than the private sector was.

So this time the collapse will be on a scale that is many magnitudes greater than what the world witnessed in 2008.
 Full Interview: King World News via Steve Quayle

On top of all the other problems being faced by Americans – low wages, lackluster job growth, increased medical care costs, rising prices on essential goods, and more taxes to name a few – could the sudden drop in the price of oil could be the trigger that sends the whole thing crashing down?

As we saw in 2008 it can happen quickly. Within a matter of a few weeks trillions of dollars in wealth were vaporized and America fell into it’s worst recession since the 1930′s.

This time, as John Ing notes, the magnitude of the crash will be significantly worse and even the U.S. Treasury Department has warned that the system is so volatile that should there be even a single hiccup in our government’s ability to borrow money it would lead to a catastrophic effect lasting more than a generation.

America sits on the brink of the largest financial and economic collapse in the history of the world and the recent drop in the price of oil could be the Black Swan no one saw coming.

Those who fail to position themselves accordingly could experience serious damage to their wealth and well-being if and when this happens. Time is running short and now is the time to prepare. After the panic starts it will be too late.

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Obama Imposed 75,000 Pages of New Regulations in 2014

Alex Newman
The New American
December 30, 2014
http://www.thenewamerican.com/usnews/constitution/item/19803-obama-imposed-75-000-pages-of-new-regulations-in-2014

Just in the last few weeks, the Obama administration has proposed or imposed over 1,200 new regulations on the American people that will add even more to the already crushing $2 trillion per year cost burden of the federal regulatory machine. According to data compiled from the federal government’s Regulations.gov website by the Daily Caller, most of the new regulatory schemes involve energy and the environment — 139 during a mere two-week period in December, to be precise. In all, the Obama administration foisted more than 75,000 pages of regulations on the United States in 2014, costing over $200 billion, on the low end, if new proposed rules are taken into account.

Just one of those “rules” by the out-of-control Environmental Protection Agency (EPA), the so-called “coal ash” regulation, is expected to cost as much as $20 billion, estimates suggest. Another oncoming rule, which experts and analysts say is likely to be the most expensive federal regulation in all of U.S. history, could wreak havoc across the nation and crush the economy to the point that economic growth halts completely, experts said. Even Christmas lights, though, are now in the administration’s regulatory crosshairs, along with virtually everything else.

While the insatiable Obama White House “pen and phone” machine has been spewing costly and draconian regulatory edicts at a fast and furious pace since taking power six years ago, it seems that the Holiday season has featured an even larger than usual number of wild decrees. Late last month, for example, as Americans were occupied with Thanksgiving, the Obama administration emitted what has been widely decried as the most costly single regulation in American history.

The so-called “ozone rule,” which estimates suggest could cost as much as $270 billion per year and put millions of American jobs at risk under the guise of further regulating emissions of the natural gas, was formally put forward the day before Thanksgiving. Lawmakers decried the timing of the massive regulation, suggesting the scheme was released during the holidays so “stupid voters” — as ObamaCare’s architect infamously described the American people — would be distracted with other matters.

Experts also pointed out that the EPA’s own 2007 studies showed no adverse health effects from exposure to even high levels of ozone. Even people suffering from asthma experienced no adverse effects from high levels of ozone, the EPA itself found. More than a few experts have disputed the notion that ozone causes any harm at all — but that has not stopped the EPA from imposing the regulation under the guise of “protecting health.”

“Bringing ozone pollution standards in line with the latest science will clean up our air, improve access to crucial air quality information, and protect those most at-risk,” claimed scandal-plagued EPA boss Gina McCarthy in a statement celebrating the latest proposed decree. “It empowers the American people with updated air quality information to protect our loved ones — because whether we work or play outdoors — we deserve to know the air we breathe is safe.”

Air concentration of ozone gas, which largely occurs naturally, has been plummeting across the United States in recent decades even without the EPA’s “most expensive” regulation in history. According to the American Action Forum, which analyzes the impact of regulations, the ozone standards are so extreme that 100 state and national parks could be in danger of violating them — despite the fact that they have virtually no traffic or manufacturing bases. Ironically, the EPA claims an array of other recent EPA regulations could “help” states satisfy the new federal ozone decrees.

American industries, meanwhile, warned that the consequences of the “ozone” regulation on the fragile U.S. economy could be devastating. “This new ozone regulation threatens to be the most expensive ever imposed on industry in America and could jeopardize recent progress in manufacturing by placing massive new costs on manufacturers and closing off counties and states to new business by blocking projects at the permitting stage,” explained Jay Timmons, president of the National Association of Manufacturers.

In an analysis posted on the NAM website, the association included a map showing that, depending on how extreme the final ozone standard was, virtually all of the United States could be out of compliance with the EPA mandates. “With nearly all of the country in nonattainment, U.S. manufacturing growth would come to a standstill; our domestic energy boom could go bust; and existing plants would be required to install additional expensive equipment,” the organization said, citing EPA data.

According to a study released by NAM earlier this year, federal regulations imposed on the United States were costing the American people more than $2 trillion every year by 2012, the most recent year for which data is available. And the cost is growing quickly. In 2014 alone thus far, the Obama administration has imposed regulations that will cost the American people over $200 billion in addition to the pre-existing $2 trillion burden, according to low-end estimates by the American Action Forum. That does not include the cost of numerous “executive” decrees and assumes, contrary to findings presented in the NAM-commissioned study, that the cost of the “ozone” rule will be relatively small.

Another major regulation imposed by the Obama administration in recent weeks surrounds the so-called “coal ash” rule regulating waste produced by electricity generation. The new scheme, finalized shortly before Christmas, could cost over $20 billion. Senator James Inhofe (R-Okla.), presumably the next chairman of the Senate Environment Committee, blasted the plot as “a continuation of the president’s war on fossil fuels.” Among other concerns, he said the new regulations would “make states and utility companies vulnerable to new regulatory costs and expensive litigation.”

Other costly regulations in the pipeline include the Obama EPA’s radical bid to severely curtail emissions of CO2. The natural gas, which makes up a fraction of one percent of all the “greenhouse” gases present naturally in the atmosphere, is exhaled by humans and is described by scientists as the “gas of life.” Still, the White House and the United Nations continue their outlandish campaign to demonize the essential molecule as “pollution,” even threating to shackle humanity to a draconian global CO2 regime under the guise of stopping “global warming.”

Next year, meanwhile, the Obama administration is plotting to unleash yet another deluge of federal regulations targeting everything from fracking to power plants. State governments, lawmakers, and citizens have been fighting back, but so far, the White House shows no signs of backing off or even slowing down the pace when it comes to devastating decrees to pummel the economy and the American taxpayer. More “climate” decrees are coming, too, with the White House even threatening to impose a UN carbon regime on America without obtaining Senate ratification.

Separately, as The New American reported this month, the Obama administration’s increasingly dangerous and anti-constitutional usurpations of power have been accelerating. Despite White House attempts to dupe the American people by claiming it has imposed fewer “executive orders” than previous presidents, the administration was recently exposed by USA Today concealing most of its unilateral decrees by calling them “presidential memoranda” instead of orders. Obama has issued more than any president in history, doing everything from purporting to change federal law to even attacking the American people’s God-given rights using illegitimate executive edicts.

With the sprawling regulatory leviathan growing perpetually more costly and oppressive, critics say the American people’s elected representatives and the courts must both take action. “Congress should examine how executive agencies are exceeding key authorities granted to them and both narrow the substantive grants that are most subject to abuse and improve administrative procedures on multi-billion dollar regulations,” wrote attorneys Todd Gaziano and Mark Miller with the pro-liberty Pacific Legal Foundation in a recent Forbes column about the need to regulate what constitutes a regulation. “Until then, the courts must police these two areas, particularly in the rulemaking context.”

While Republican lawmakers have become adept at loudly complaining about the administration’s non-stop executive power grabs and regulations on the campaign trail, so far, they have done virtually nothing to stop it. In fact, despite all of the promises to rein in the Obama administration’s “imperial” presidency if elected to Congress, victorious Republicans, who already dominated the House of Representatives, recently passed a massive spending bill fully funding virtually every decree the White House has spewed since coming to power through next September.

In other words, GOP lawmakers, sent to Washington by outraged voters in November to stop Obama, gave up their most powerful tool to restrain the administration for almost a full year — before the new members could be seated, and for no good reason. The solution to the growing regulatory lawlessness, though, remains simple: Congress can and should defund the decrees and the unconstitutional agencies behind them before Obama’s “fundamental transformation” of America is complete.

Monday, December 29, 2014

The 2.6 Billion Dollar Welfare Payment That The U.S. Government Gives To Wal-Mart

Michael Snyder
Economic Collapse
December 29, 2014

Should the federal government be spending billions of dollars to pump up Wal-Mart’s profits?  I know that question sounds really bizarre, but unfortunately this is essentially what is happening.  Because Wal-Mart does not pay them enough money, hundreds of thousands of Wal-Mart employees enroll in Medicaid, food stamps and other social welfare programs.  Even though Wal-Mart makes enormous profits, they refuse to properly take care of their employees so the federal government has to do it.  And of course this is not just a Wal-Mart problem.  There are hundreds of other major corporations doing exactly the same thing.  And they will keep on doing it as long as they can because relying on the federal government to take care of their employees allows them to make much larger profits.  This gives these companies an enormous competitive advantage and it distorts the marketplace.  If you love the free enterprise system, you should be aghast at this.  Our big corporations have become the biggest “welfare queens” of all, and Wal-Mart is near the top of that list.

Does your local Wal-Mart store seem like it needs help from the federal government?

Continue reading here:  http://theeconomiccollapseblog.com/archives/2-6-billion-dollar-welfare-payment-u-s-government-gives-wal-mart

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Wednesday, December 24, 2014

VIDEO: EXPOSING Satanic 2014 Grammy Awards and a STRONG WARNING from the Lord!


Junk Bonds Are Going To Tell Us Where The Stock Market Is Heading In 2015

The Economic Collapse
By Michael Snyder
December 18th, 2014
http://theeconomiccollapseblog.com/archives/junk-bonds-going-tell-us-stock-market-heading-2015 

Do you want to know if the stock market is going to crash next year?  Just keep an eye on junk bonds.  Prior to the horrific collapse of stocks in 2008, high yield debt collapsed first.  And as you will see below, high yield debt is starting to crash again.  The primary reason for this is the price of oil.  The energy sector accounts for approximately 15 to 20 percent of the entire junk bond market, and those energy bonds are taking a tremendous beating right now.  This panic in energy bonds is infecting the broader high yield debt market, and investors have been pulling money out at a frightening pace.  And as I have written about previously, almost every single time junk bonds decline substantially, stocks end up following suit.  So don’t be fooled by the fact that some comforting words from Janet Yellen caused stock prices to jump over the past couple of days.  If you really want to know where the stock market is heading in 2015, keep a close eye on the market for high yield debt.

Continue reading here: http://theeconomiccollapseblog.com/archives/junk-bonds-going-tell-us-stock-market-heading-2015

A Cyber War With North Korea And An Economic War With Russia

The Economic Collapse
By Michael Snyder
December 22nd, 2014
http://theeconomiccollapseblog.com/archives/cyber-war-north-korea-economic-war-russia 

In addition to all of our wars in the Middle East and the war that has erupted on the streets of America, we are now engaged in a cyber war with North Korea and an economic war with Russia.  Without a doubt, the United States has the capability to do a tremendous amount of damage to both of them.  But what about the damage that they could potentially do to us?  We have a society that is absolutely teeming with soft targets.  Our Internet infrastructure is extremely vulnerable, our debt-based economic system is already teetering on the edge of disaster, and government officials freely admit that security at key facilities such as power plants is sorely lacking.  And these kinds of bitter conflicts have a way of escalating.  The North Koreans and the Russians are both very proud, and neither one is going to back down any time soon.  If a foreign power wanted to really make us hurt, it wouldn’t take much imagination at all.  There are thousands of ways to do it.  So Americans should not just smugly assume that we are untouchable.  In a war, it is often those that are overconfident that get hurt the worst.

Continue reading here:  http://theeconomiccollapseblog.com/archives/cyber-war-north-korea-economic-war-russia

VIDEO: The Calm Before The Collapse


It’s WAR On The Streets Of America

The Economic Collapse
By Michael Snyder
December 21st, 2014
http://theeconomiccollapseblog.com/archives/war-streets-america 

Make no mistake – there is now a state of open warfare on the streets of America.  Earlier this year it was being reported that the number of police officers killed on the job was up 40 percent in 2014, and that was before all of the civil unrest caused by the deaths of Michael Brown and Eric Garner.  At this point, attacks on police officers are becoming a frequent occurrence all over the country, but no incident has stunned the nation as much as the “execution-style” murder of two NYPD officers on Saturday by a radical Islamic gunman identified as Ismaaiyl Brinsley.  Just prior to the attack, Brinsley posted a message on Instagram in which he declared that he was “putting wings on pigs today”.  Many would like to dismiss this as an “isolated incident” and pretend that everything is just fine in America, but that is not the truth.  The reality of the matter is that anti-police sentiment in this country is at an all-time high, and the level of anger and frustration in our increasingly radicalized urban communities has reached a boiling point.  As economic conditions continue to deteriorate and police tactics become even more brutal in the years ahead, the kind of rioting, looting and senseless violence that we witnessed in Ferguson is going to become commonplace in major cities all over the United States.

Continue reading here:  http://theeconomiccollapseblog.com/archives/war-streets-america 

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Monday, December 22, 2014

The Economic End Game Explained

Alt-Market.com
by Brandon Smith
 Nov 12, 2014
http://www.alt-market.com/articles/2403-the-economic-end-game-explained

Throughout history, in most cases of economic collapse the societies in question believed they were financially invincible just before their disastrous fall. Rarely does anyone see the edge of the cliff or even the bottom of the abyss before it has swallowed a nation whole. This lack of foresight, however, is not entirely the fault of the public. It is, rather, a consequence caused by the manipulation of the fundamental information available to the public by governments and social gatekeepers.

In the years leading up to the Great Depression, numerous mainstream “experts” and politicians were quick to discount the idea of economic collapse, and most people were more than ready to believe them. Equities markets were, of course, the primary tool used to falsely elicit popular optimism. When markets rose, even in spite of other very negative fiscal indicators, the masses were satisfied. In this way, stock markets have become a kind of dopamine switch financial elites can push at any given time to juice the citizenry and distract them from the greater perils of their economic future. During every upswing of stocks, the elites argued that the “corner had been turned,” when in reality the crisis had just begun. Nothing has changed since the crash of 1929. Just look at some of these quotes and decide if the rhetoric sounds familiar today:

John Maynard Keynes in 1927: “We will not have any more crashes in our time.”

H.H. Simmons, president of the New York Stock Exchange, Jan. 12, 1928: “I cannot help but raise a dissenting voice to statements that we are living in a fool’s paradise, and that prosperity in this country must necessarily diminish and recede in the near future.” 

Irving Fisher, leading U.S. economist, The New York Times, Sept. 5, 1929: “There may be a recession in stock prices, but not anything in the nature of a crash.” And on 17, 1929: “Stock prices have reached what looks like a permanently high plateau. I do not feel there will be soon if ever a 50 or 60 point break from present levels, such as (bears) have predicted. I expect to see the stock market a good deal higher within a few months.”

W. McNeel, market analyst, as quoted in the New York Herald Tribune, Oct. 30, 1929: “This is the time to buy stocks. This is the time to recall the words of the late J. P. Morgan… that any man who is bearish on America will go broke. Within a few days there is likely to be a bear panic rather than a bull panic. Many of the low prices as a result of this hysterical selling are not likely to be reached again in many years.”

Harvard Economic Society, Nov. 10, 1929: “… a serious depression seems improbable; [we expect] recovery of business next spring, with further improvement in the fall.” 

I hear nearly identical statements from pro-mainstream, pro-dollar skeptics all the time. And all of their assertions rest solely on the illusion of the Dow and the dollar index, not to mention statistics that are sourced from the very government that has much to gain by fooling the public into believing all is well.

In 2009, Paul Krugman, perhaps the worst and most famous economist of our age, lamented on the fact that no one in mainstream finance saw the derivatives and credit crash coming. Yet it is the same kinds of manipulative policies that Krugman champions that caused this collective ignorance in mainstream circles to begin with.

What the past proves, time and time again, is that establishment trained and educated economists are perhaps the most useless of all analysts. They are perpetually wrong. Only independent analysts have ever been able to predict anything of value as far as our economic future — not because they are psychic, but because they have the advantage of standing outside the foggy propaganda of brainwashed financial academia.

It also proves that the appearance of prosperity means nothing if the fundamentals do not support the optimism. That is to say, a bullish stock market, a high dollar index and a low unemployment percentage mean nothing if such stats are generated by false methods and fiat.  The fundamentals ALWAYS matter.  As we saw during the Great Depression, the markets cannot hide from reality forever.

I relate these points because the future I am about to suggest here might sound outlandish to some, because it is so contrary to the “official” accounting of our current financial world. It is important to remember that the mainstream, the majority, is almost always wrong and that the truth is very rarely accepted broadly until calamity has already fallen.

I outlined the hard facts behind the reality of economic downturn in my article “We Have Just Witnessed The Last Gasp Of The Global Economy.” 

The bottom line is that the stock market, the greatest false indicator of all time, is on the verge of implosion; and the banking elites are positioning themselves to avoid blame for this implosion while the rest of us are being sold on the most elaborate recovery con-game ever conceived. But what is the purpose behind this con-game? Lies are generally only told by those who hope to gain something through deception. What do the elites hope to gain by creating a facade of recovery?

They have openly admitted to the public on numerous occasions EXACTLY what they want — namely, the institution of a truly global and centralized economic system revolving around a highly controlled world currency framework and dominated by a select cult of banking oligarchs. Anyone who claims that this is not the goal is either a liar or an uneducated fool.

I have covered the evidence supporting this program many times in the past, but it would seem with the precariously surreal nature of our world today that much needs repeating. In 1988, the financial magazine 'The Economist' published an article titled “Get ready for a world currency by 2018,” in which it outlined the framework for a global currency system called the “Phoenix” (a hypothetical title), administered by the International Monetary Fund by the year 2018, which would erase all national economic sovereignty and require governments to borrow from the world central banking authority, rather than print, in order to finance their infrastructure programs. This would mean total control by the IMF over member nations as they beg and plead for more capital under the global currency umbrella.

If this sounds familiar, it is because I have been warning about the IMF takeover of the global monetary system for at least six years. The Economist actually admits that the Phoenix system would start out in the format of the Special Drawing Rights basket currency:
 
The phoenix would probably start as a cocktail of national currencies, just as the Special Drawing Right is today. In time, though, its value against national currencies would cease to matter, because people would choose it for its convenience and the stability of its purchasing power…

The plan is to introduce a basket currency system as an alternative to the dollar as world reserve, then slowly but surely phase out all sovereign currencies until the basket becomes a currency itself - the ONLY currency.  Former World Bank Chief Economist Justin Yifu Lin seems to agree with this ideology, arguing that national currencies must be replaced with a supranational currency, and pointing out that no single currency has the strength to stand alone as world reserve:

"I think the dominance of the greenback is the root cause of global financial and economic crises...The solution to this is to replace the national currency with a global currency..."

I would mention that a "Phoenix" rises from the ashes of calamity reborn.  What ashes are the elites expecting the new global currency to rise from?

It is important to note that 'The Economist' is not just any random financial publication; it is in large part owned by the Rothschild banking family and is based out of the London financial center, meaning, The Economist does not have to “guess” on the economic developments of the future; it has an inside track on exactly what is planned to occur.

You can see my more recent analysis on the IMF global currency scheme here.

A plan for global governance has also been touted by international elites over the years, the roots of which would supposedly begin around 2015. The Gorbachev Foundation, which boasts many American elites as members, has long predicted the rise of a global government. In 1995, the executive director of the foundation, Jim Garrison, had this to say to the San Francisco Weekly:

"Over the next 20 to 30 years, we are going to end up with world government. … It’s inevitable. It will happen and become just as normal to have a relationship with the rest of the world as we now have, say, if you are a Californian and you go to Vermont."

At the Gorbachev-led State of the World Forum in 1995, Council On Foreign Relations member Zbigniew Brzezinski had this to say:

“We do not have a New World Order. … We cannot leap into world government in one quick step. … In brief, the precondition for eventual globalization — genuine globalization — is progressive regionalization, because thereby we move toward larger, more stable, more cooperative units.”

Regionalization is already occurring as the BRIC nations form their own bilateral trade agreements and their own global bank, and this is by design.  The catalyst to trigger the end of the dollar and the dominance of a global currency system, I believe, will be the false East/West paradigm. I have seen an incredible array of analytic interpretations of the macro-economy by multiple mainstream and independent financial writers, but very few of them recognize that the conflict between the West and the eastern BRICS is nothing more than a farce. I have compiled a considerable profile of evidence on the reality that governments like Russia and China are actually complicit in the formation of a global currency and global government controlled by the IMF. You can see that evidence here, here and here.

China in particular has loudly pronounced a need for a global currency system to replace the dollar, and they have suggested that this system be controlled by the IMF:

The world economic crisis shows the "inherent vulnerabilities and systemic risks in the existing international monetary system," Gov. Zhou Xiaochuan said in an essay released Monday by the bank. He recommended creating a currency made up of a basket of global currencies and controlled by the International Monetary Fund and said it would help "to achieve the objective of safeguarding global economic and financial stability."

China is NOT anti-establishment or anti-new world order, nor is Russia. Eastern opposition to the NWO is a lie. Period. In fact, the BRICS have argued only for greater inclusion in the IMF system and have no intention of developing a legitimate alternative to “Western” globalization. If you do not understand that the BRICS are part of the NWO, not opposed to it, then you do not understand a thing.

With the BRICS on board with the plan for global currency, what is likely to happen over the course of the next few years if the schedule for an economic reset is on track for 2018?

As I outlined in my last article, the U.S. in particular has been prepped like a sacrificial lamb, with the populace for the most part oblivious to the extent of the threat. Middle-class wealth is being driven into bonds and will be driven more so by market declines, which will progress over the next few months. This “herding” of capital into bonds is only in preparation for the death of the dollar’s world reserve status, thus erasing what little savings were left among the common citizenry.

The ceremony initiating our nation’s fiscal destruction will likely take place in the near term. To achieve global centralization by 2018, the elites would need a serious crisis soon in order to provide the proper collective panic required to generate public consent for global economic governance in four years’ time.

The first, most important factor to consider is the fake conflict between the IMF and the U.S. Congress over the approval of IMF policy changes agreed upon in 2010. The U.S. has yet to officially sign off on the IMF policy measures that would bring more “inclusiveness” for developing nations like Russia and China, and this has led the IMF to assert that a move forward without the U.S. is necessary. IMF head Christine Lagarde is now demanding that Congress pass the reforms of 2010; but with the election of a predominantly Republican government, those reforms have little or no chance of being approved.

Lagarde recently joked that she would be willing to "belly dance" to get IMF reforms passed (I would pass them just to avoid the gut churning image of that belly dance), but the joke will ultimately be on the U.S. as IMF heads suggest that if the current Congress does not pass reforms by the end of this year, they will be forced to apply a "Plan B".  The details of this Plan B are not public.

It is now highly likely that the IMF will set policy WITHOUT the input of the U.S., as they have warned they would, crippling the assumptions by many that the IMF is somehow a “U.S.-owned institution.” It is actually the reverse; the IMF is setting the stage for ownership of the U.S. monetary structure, along with the Bank Of International Settlements, which appears to be the capstone of the NWO system.

The next IMF meeting on SDR inclusion is not set, but will probably take place in early 2015. It is expected that China and the Yuan will be officially added to the SDR basket. Gold should also be watched carefully. There is a reason why the BRICS have been accumulating thousands of tons of the precious metal. The IMF introduction of gold into the SDR basket is inevitable, and a new Bretton Woods style-agreement has already been called for by a number of elites.

The IMF has been openly discussing the ascension of the SDR to replace the dollar as the world reserve currency since at least 2011.

With developing nations already asking for help from the IMF due to volatility caused by the Fed taper and the BRICS well into their own programs to remove the dollar as the world reserve, the only question left is: How will the banks be able to accomplish the currency reset without taking blame for the resulting catastrophe that will no doubt bury the majority of middle-class and poor?

There is no way around it. The elites need a geopolitical disaster so overwhelming that all economic changes taking place in the background go completely unnoticed. They also need to set themselves up as the prognosticators and rescuing heroes in the midst of the coming chaos, as outlined in my last article.

I do not know what that disaster will specifically look like, because there are too many possibilities to consider. Think about this honestly, 10 years ago, would you or your friends and family have ever thought that the U.S. would be at war in Syria with a terrorist organization we created ourselves out of thin air? That we would be immersed in renewed tensions and the possibility of economic warfare with Russia? That our presidency would have attempted and failed the initiation of socialized healthcare? That our military would be tapped as a possible response force for domestic unrest? That an outbreak of Ebola would be suggested as a trigger for medical martial law?

How many conspiracies have been exposed in just the past few years? How many government crimes have hit the headlines and then disappeared? Benghazi, Fast and Furious, IRS targeting of activists, government-aided illegal immigration, etc. — a nonstop parade of corruption that few would have thought possible a decade ago. We are being boiled slowly, economically as well as politically. We are being conditioned to accept imminent crisis as a way of daily life, to become used to it and to blame these crises on hundreds of various scapegoats, but never the international banks.

And while the Titanic sinks, the band plays on, as mainstream pundits and dupes accuse independent analysts of “crying wolf.” The economic endgame is not about collapse alone. Collapse is nothing more than a process that ends abruptly only when public faith is finally lost. The endgame is about acceptance — the acceptance by the masses of a “new normal” in which financial and political terror become the foundation of daily life. The endgame is, first and foremost, about the psyche of mankind and its mutation into something unrecognizable. This kind of pervasive conditioning requires immeasurable fear. Our economic philosophy of sovereign trade and identity cannot be erased without it. The elites have already given us their timeline. The crash of 2008 was only the beginning of the program, and 2014-2015 looks to be the next stage. I have written hundreds of articles on how to prepare and defuse the dangers of the impending reset, but the most important issue of all is that people understand the threat is at their doorstep. It’s not a few years off or a decade away; it’s here now. We are right in the middle of collapse, even if many cannot see it.  Watch global developments carefully, as market volatility increases and international conflicts escalate. Time is up.

IMF Now Ready To Slam The Door On The U.S. And The Dollar

Brandon Smith
Alt Market
December 18, 2014

As I write this, the news is saturated with stories of a hostage situation possibly involving Islamic militants in Sydney, Australia. Like many, I am concerned about the shockwave such an event will create through our sociopolitical structures. However, while most of the world will be distracted by the outcome of this crisis (for good or bad) for at least the week, I find I must concern myself with a far more important and dangerous situation.

Up to 40 people may be held by a supposed extremist in Sydney, but the entire world is currently being held hostage economically by international banks. This is the crisis no one in the mainstream is talking about, so alternative analysts must.

As I predicted last month in “We Have Just Witnessed The Last Gasp Of The Global Economy,”severe volatility is now returning to global markets after the pre-game 10 percent drop in equities in October hinted at what was to come.

We expected such destabilization after the wrap-up of the Fed taper, and the markets have not disappointed so far. My position has always been that the taper of QE3 made very little sense in terms of maintaining the manipulated illusion of economic health — unless, of course, the Federal Reserve was implementing the taper in preparation for a renewed financial catastrophe. That is to say, the central bankers have established the lie of American fiscal recovery and then separated themselves from blame for the implosion they KNOW is coming. If the markets were to collapse while stimulus is officially active, the tragedy would be forever a millstone on the necks of the banksters. And we can’t have that now, can we?

This is not to say that individual central banks and even currencies are not expendable in the grand scheme of things. In fact, the long-term goal of globalists has been to consolidate all currency systems and central banks under the outward control of the International Monetary Fund and the Bank Of International Settlements, as I outlined in “The Economic Endgame Explained.”

That particular article was only a summary of a dangerous trend I have been concerned about for years; namely the strategy by international financiers to create a dollar-collapse scenario that will be blamed on prepositioned scapegoats. I have no idea what form these scapegoats will take – there are simply too many possible triggers for fiscal calamity. What I do know, though, is the goal of the endgame: to remove the dollar’s world reserve status and to pressure the American people into conforming or even begging for centralized administration of our economy by the IMF.

The delusion perpetuated in the mainstream is that the IMF is a U.S.-dominated institution. I have outlined on many occasions why this is false. The IMF like all central banks is dominated by the international corporate banking cartel. Central banks are merely front organizations for globalists, and I am often reminded of the following quote from elitist insider Carroll Quigley when I hear people suggest that central banks are somehow independent from one another or that the Federal Reserve is itself the singular “source” of the world’s economic ills: 
It must not be felt that these heads of the world’s chief central banks were themselves substantive powers in world finance. They were not. Rather, they were the technicians and agents of the dominant investment bankers of their own countries, who had raised them up and were perfectly capable of throwing them down.

The substantive financial powers of the world were in the hands of these investment bankers (also called “international” or “merchant” bankers) who remained largely behind the scenes in their own unincorporated private banks. These formed a system of international cooperation and national dominance which was more private, more powerful and more secret than that of their agents in the central banks.

No one can now argue against this reality after we have witnessed hard evidence of Goldman Sachs dictating Federal Reserve policy, as outlined here.

And, most recently, we now know that international bankers control political legislation as well, as Congress passed with little resistance a bill that negates the Frank-Dodd restrictions on derivatives and places the U.S. taxpayers and account holders on the hook for more than $303 trillion in toxic debt instruments. The bill is, for all intents and purposes, a “bail-in” measure in disguise. And it was pushed through with the direct influence of JPMorgan Chase CEO Jamie Dimon.

The Federal Reserve, the U.S. government and the dollar are as expendable to the elites as any other economic or political appendage. And it can be replaced at will with yet another illusory structure if this furthers their goal of total centralization. This has been done for centuries, and I fail to see why anyone would assume that globalists would change their tactics now to preserve the dollar system. They call it the “New World Order,” but it is really the same old-world monetary order out of chaos that has always been exploited. Enter the IMF’s old/new world vision.

While the investment universe has been mesmerized by the deterioration of the Russian Ruble and oil prices, the IMF has been a busy little bee hive…

In articles over the past year, I have warned that the plan to dethrone the dollar and replace it with the special drawing rights basket currency system would be accelerated after it became clear that the U.S. Congress would refuse to pass the IMF reforms of 2010 proclaiming “inclusiveness” for developing economies, including the BRICS nations. The latest spending bill removed any mention of IMF reforms. The IMF, under Christine Lagarde, has insisted that if the U.S. did not approve its part of the reforms, the IMF would be forced to pursue a “Plan B” scenario. The details on this “plan B” have not been forthcoming, until now.

The Financial Times reported on the IMF shift away from the U.S. by asserting the authority to remove the veto power America has always enjoyed over the institution. This action is a stark reminder to mainstream talking heads and to those who believe the U.S. is the core economic danger to the world that the IMF is NOT an extension of American policy. If anything, the IMF and the U.S. are extensions of international banking power, just as the BRICS are nothing more than puppets for the same self-serving financial oligarchy clamoring for the same IMF-controlled paradigm, as Vladimir Putin openly admitted:

“In the BRICS case we see a whole set of coinciding strategic interests. First of all, this is the common intention to reform the international monetary and financial system. In the present form it is unjust to the BRICS countries and to new economies in general. We should take a more active part in the IMF and the World Bank’s decision-making system. The international monetary system itself depends a lot on the US dollar, or, to be precise, on the monetary and financial policy of the US authorities. The BRICS countries want to change this…”

And of course the Chinese have pronounced their fealty to the IMF global currency concept:
The world economic crisis shows the “inherent vulnerabilities and systemic risks in the existing international monetary system,” Gov. Zhou Xiaochuan said in an essay released Monday by the bank. He recommended creating a currency made up of a basket of global currencies and controlled by the International Monetary Fund and said it would help “to achieve the objective of safeguarding global economic and financial stability.”

The BRICS are not the only nations demanding the U.S. lose its supposed “influence” over the IMF.  Germany, the core economic pillar of the EU, called for America to relinquish its veto power back in 2010 just as the reforms measure was announced.

The IMF decision to possibly eliminate U.S. veto power and, thus, influence over IMF decisions may come as early as the first quarter of next year. This is the great “economic reset” that Largarde has been promoting ad nauseam in multiple interviews and speeches over the past six months. All of these measures are culminating in what I believe will be a more official announcement of a dump of the U.S. dollar as world reserve currency.

Along with the imminent loss of veto power, I have also written on the concerns of the coming SDR conference in 2015. This conference is held only once every five years. My suspicion has been that the IMF plans to announce the inclusion of the Chinese yuan in the SDR basket and that this will coincide with a steady dollar dump around the globe. Multiple major economies have already dropped the dollar in bilateral trade with China, and engineered tensions between the U.S. and the East have exacerbated the issue.

The timing of the SDR conference has now been announced, and the meeting looks to be set for October of 2015. Interestingly, this linked article from Bloomberg notes that China has a “real shot” at SDR inclusion and official “reserve status” next year, but warns that the U.S. “may use its veto power” to stop China’s membership. I have to laugh at the absurdity of it all, because there are many people in the world of economic study who still believe the developments of globalization and fiscal distress are all “random.” I suppose that if it is all random, then it is a rather convenient coincidence that the U.S. just happens to be on the verge of losing veto power in the IMF just before they are about to bring the BRICS into the SDR fold and supplant the dollar.

This is it, folks; this is the endgame right in front of our faces. The year of 2014 is the new 2007, with all the negative potential but 100 times more explosive going into 2015. Our nation has wallowed in slowly degrading financial conditions for years, hidden by fake economic statistics and manipulated stock prices. All of it has been a prelude to a much more frenetic and shocking event. I believe that we will see continued market chaos from now on, with a steep declining trend intermixed with brief but inadequate “dead cat” stock bounces. I expect a hailstorm of geopolitical crises over the next year to provide cover for the shift away from the dollar.

Ultimately, the death of the dollar will be hailed in the mainstream as a “good and necessary thing.” They will call it “karma.” They will call it “progress.” They will even call it “decentralization” and a success for the free market. But it will not feel like a positive development for the American public, who will suffer greatly as the dollar crumbles. Only those educated in the underpinnings of shadow banking will understand the whole thing is a charade designed to hide the complete centralization of sovereign economic governance into the hands of the globalists, using the IMF and BIS as “fiscal heroes,” saving the world from a state of economic destruction the elites themselves secretly created.

VIDEO: The UN Sets Its Sights On American Gun Owners

VIDEO: Gerald Celente Predictions 2015 - Disastrous Christmas, World War 3, US Economic Collapse

Sunday, December 21, 2014

Banks Win Again – They Have Delayed (Repealed) the Volcker Rule

Martin Armstrong
December 20, 2014

The NY money center Banks won again in Washington, the second time in a single month. They succeeded in repealing Dodd-Frank and have now succeeded in repealing the Volcker Rule, which it is officially put on “delay” that will be permanent. The Federal Reserve has repealed the Volcker Rule that will let the highly speculative banks hold onto billions of dollars in private-equity and hedge-fund investments for at least two more years until it is delayed again if not just forgotten about silently.

Continue reading here:  http://armstrongeconomics.com/2014/12/19/banks-win-again-delay-repeal-volcker-rule/

Tuesday, December 16, 2014

VIDEO: New Law Will Force You to BAILOUT the Quadrillions in Derivatives!

VIDEO: Economic DISASTER as Debt Hits $18 TRILLION! Social Security Fund EMPTY!

1 in 5 Millennials Live in Poverty, Census Bureau Says

Ali Meyer
CNS News
December 16, 2014

(CNSNews.com) – One in five young adults – ages 18 to 34 years old – live in poverty, according to data from the U.S. Census Bureau.

“More millennials are living in poverty today, and they have lower rates of employment, compared with their counterparts in 1980,” the Census states. “One in five young adults lives in poverty (13.5 million people), up from one in seven (8.4 million people) in 1980.”

The data comes from a new Census release called “Young Adults: Then and Now,” which “illustrates characteristics of the young adult population (age 18-34) across the decades using data from the 1980, 1990 and 2000 Censuses and the 2009-2013 American Community Survey.”

In 1980, according to the Census, 14.1 percent of the total population ages 18 to 34 were living in poverty, which is determined by the millennial’s income in the past 12 months. In 1990, the percentage of millennials in poverty increased to 14.3 percent. In 2000, it climbed to 15.3 percent. And in 2009-2013 it reached the highest level recorded in the dataset of 19.7 percent.

Full story here.

VIDEO: The Real Story Behind Lower Oil Prices

Russia Shocks With Emergency Rate Hike, Boosts Interest Rate From 10.5% To 17%

Zero Hedge
December 16, 2014

Following the biggest rout to the Ruble in ages, Russia – unlike Mario Draghi – instead of talking the talk decided to walk the bazooka walk and shocked all those long the USDRUB by unleashing an emergency rate hike (at 1 am in the morning) from the recently raised interest rate of 10.50% to… hold on to your hats… 17.00%, a 650 bps increase!
From the press release:

The Board of Directors of the Bank of Russia has decided to increase from December 16, 2014 the key rate to 17.00% per annum. This decision was driven by the need to limit significantly increased in recent devaluation and inflation risks.
 

Sunday, December 14, 2014