Thursday, October 2nd, 2014

Economic Alert: If You’re Not Worried Yet…You Should Be

Brandon Smith
Alt-Market.com
May 8th, 2012
Reader Views: 169

For the past four years I have been covering the progression of the global economic crisis with an emphasis on the debilitating effects it has had on the American financial system.  Only once before have I ever issued an economic alert, and this was at the onset of the very first credit downgrade in U.S. history by S&P.  I do not take the word “alert” lightly.  Since 2008 we have seen a cycle of events that have severely weakened our country’s foundation, but each event has then been followed by a lull, sometimes 4 to 6 months at a stretch, which seems to disarm the public, drawing them back into apathy and complacency.  The calm moments before each passing storm give Americans a false sense of hope that our capsized fiscal vessel will somehow right itself if we just hold on a little longer…

I don’t have to tell most people within the Liberty Movement that this is not going to happen.  Unfortunately, there are many out there who do not share our awareness of the situation.   Debt implosions and currency devaluation NEVER simply “fade away”; they are always followed by extreme social and political strife that tends to sully the doorsteps of almost every individual and family.  The notion that we can coast through such a tempest unscathed is an insane idea, filled with a dangerous potential for sour regrets.

There are some people who also believe that the private Federal Reserve with the Treasury in tow has the ability to prolong the worst symptoms of the collapse indefinitely, or at least, until they have long since kicked the bucket and don’t have to worry about it anymore (the ‘pay-it forward to our grandkids’ crowd) .  I can say with 100% certainty that most of us will live to see the climax of the breakdown, and that this breakdown is about to enter a more precarious state before the end of this year.  You can only stretch a sun-boiled rubber band so far before it snaps completely, and America’s financial elasticity has long been melted away.

A pummeling hailstorm of news items and international developments have made the first half of 2012 almost impossible to track and analyze.  The frequency at which negative information has surfaced is almost dizzying.  However, a pattern and a recognizable motion are beginning to take shape, and, I believe, a loose timeline is beginning to form.

At the end of January, I covered the incredible nosedive of the Baltic Dry Index (a measure of global shipping rates that signals a fall in global demand) to historic lows.  I pointed out the tendency of stocks and the general economy to crash around 8 months (sometimes a little longer) after the BDI makes such a dramatic downturn.  Mainstream analysts, of course, attributed the fall to an “overproduction of ships”, which is the same exact excuse they used when the BDI collapsed back in 2008 just before the derivatives bubble burst.  It would seem that the cable TV talking heads were wrong yet again, as the international market facade quickly evaporates right in line with the BDI’s almost prophetic knack for calling an economic derailment in advance.

Here are some of the most important reasons why every American should be prepared for much harder days, especially before the end of 2012:

The European Union Is Officially Dead In The Water

Stick a fork in er’, the EU is done!  We are talking about full scale dismantlement, likely followed by a reformation of core nations and multiple collapse scenarios of peripheral countries.  The writing is all over the wall in the wake of the latest election results in Greece and France, where, as alternative researchers have been predicting for some time, the battle between the government spending crowd and proponents of austerity has reached a fever pitch.

The Greeks and the French are royally pissed over draconian cuts in public programs and the destruction of pensions which have been a mainstay of their economies for quite some time.  They are also furious over being sold off like collateral to the IMF and World Bank.  Rightly so.  Like the American taxpayer, the taxpayers of floundering EU nations are wrongly being held responsible for the financial mismanagement and fraud of their governments and global banks which have remained untouched and unpunished for their trespasses.  The problem is, the voters of both countries are signing on to the socialist/quasi-communist bandwagon in response.  In Greece, the Left Coalition Party, a splinter group of the traditional communist party, has now taken a primary position of power:

http://www.reuters.com/article/2012/05/07/us-greece-idUSBRE8440DG20120507

In France, voters have elected socialist Francois Hollande (a Bilderberg attendee), whose latest promise is to spend France into recovery through his “pro-growth agenda”:

http://news.yahoo.com/blogs/ticket/french-president-elect-hollande-won-t-difficult-obama-195617064.html

I have no doubt that the elections of the EU are as manipulated by elitists as they are here in the U.S., and I’m sure false paradigms abound.  Have Europeans forgotten that it was overt government spending that set them on the path to calamity in the first place?  Or, are they like Americans; just desperate for any change in the ranks of leadership?  One would think that they would take note of the problems here in our country and realize that electing a socialist to replace another socialist is no way out of economic hardship.

Former officials like Nicolas Sarkozy may have claimed to be distanced from the socialist ideal, but, as with all globalist puppets, their actions did not match their rhetoric, and they have always supported policies of centralization and big government.  The French and the Greeks have essentially replaced closet collectivists with outspoken collectivists, and will see NO relief from the crisis in the Euro-zone as a result of the political reordering.  In fact, the stage has now been set for a volatile chain of dominos.  Germany, which is the only economy left holding the EU together, has been unyielding on austerity cuts.  A conflict between France and Germany is now inevitable.  Neither will compromise their position, and I can see no other eventual result than a reexamination and perhaps abandonment of the EU charter.

How does this affect America?  Being that international banks and corporations have forced our countries into interdependency through the engineered chicanery of globalization, any collapse in Europe is going to strike hard around the world, but the worst will hit the U.S. and China.  Which is probably why China is disengaging trade away from the U.S. and the EU and focusing on other developing nations:

http://www.reuters.com/article/2012/05/08/us-china-economy-trade-idUSBRE84702N20120508

If you thought the Greek rollercoaster was a pain in the neck for investment markets, just wait until the whole of the EU is in a shambles!

Spain is next in line, with a 25% official unemployment rate and a massive black market economy forming.  As I have been saying for years now, when governments disrupt the financial survival of the people, they WILL form their own alternatives, including black markets and barter markets.  It is about survival.  The Spanish government does not care much for these alternatives, though, and has now banned cash transaction over 2500 euros in a futile attempt to squeeze taxes out of the populace through digitally tracked payment methods:

http://thedailybell.com/3814/Spain-Bans-Cash

Another major concern for Americans is the fact that Europeans are inching towards an abandonment of the dollar.  Francois Hollande has openly called for an end to the dollar’s world reserve status, and with a majority backing of the French people, he could easily make this happen, at least where France is concerned.  All it takes is for a few key countries to publically and completely drop the Greenback and the dollar’s reputation as a safe haven investment will be quashed.  This could very well happen before 2012 is over.

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Contributed by Brandon Smith of Alt-Market.com.

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  • Evie

    Just because they say stimulous is not being provided does not mean it is not. Banking crisises lead to the worst kind of collapses in history. I guess the elite did not know how to read history books. Gatekeepers not_just out for themselves and now blame the people.

  • den1313

    Each congressman get billions of dollars to play with which would corrupt anyone.

    The 16 TRILLION dollar “deficit” is the yearly payment on the “mortgage”, that is what is really owed, which is almost $200,000,000,000,000 or about three million dollars per working American and it is increasing by BILLIONS every DAY. We owe this debt (there is no real money) to the international bankers just like the stupid Europeans do. The international bankers thru the Federal Reserve are the ones that control our government. With all this “money” floating around the Federal government the only thing that can change anything will be the State governments, but even that is highly unlikely.

    We have the highest corporate taxes in the world forcing companies out of the country just to compete, mostly to China. We have 50% of American families getting a check from the government, in effect paying them NOT TO WORK (as long as they vote democrat). Because of that we now have 30 MILLION illegal workers taking American jobs.

    Each one of us needs to be preparing for when this house of cards, created in the most part by the democrat party, collapses. Out generation really made a mess of it and our children, if they realize what was done to them, should be spitting on our graves.

    Good luck and God bless.

  • Ed_B

    I find it fascinating that most Americans do not know that the US dollar IS the world’s reserve currency and that most of those who do know it do not understand its importance.

    Having WRC status means that international debts are settled in dollars, so all countries except the US must convert their currencies into USD to settle their international trades. This creates a huge demand for USD around the world and that demand supports the value of the USD. If WRC status is lost, the demand for USD would fall very suddenly and with less demand the price of the USD in other currencies would fall precipitously. Although estimates for the size of this fall vary, many economists who discuss this issue say that this would be equal to about a 1/3 devaluation of the USD. Put in everyday terms, everything that Americans now purchase would become as much as 1/3 more expensive and virtually over-night. That would be one terrific smash to the US economy and to the livelihoods of millions of our fellow citizens, many of whom are barely making ends meet now.

    Recently, a number of countries have been moving away from the USD and towards alternative international payment methods. These include China, Russia, India, Brazil, South Africa, Iran, and perhaps South Korea. These are important countries in their regions and other smaller countries are sure to follow their lead. These countries are using their own currencies and / or gold to settle their international debts. Irresponsible monetary policy in the US will continue to drive this move away from the USD. It is only a matter of time, possibly as soon as 2-3 years from now, before WRC status is lost and we suffer from terrible inflation as the huge quantity of USD are repatriated. Make no mistake… this WILL happen and it will be a terrible event that will be much worse than the economic collapse of the 1930s. Those who prepare will fare the best but no one will be unscathed by such a terrible and widespread financial collapse.

    In spite of all this, only the alternative media on the Internet ever discusses this story. This is why those of us who can still think for ourselves have completely given up on the so-called “main stream media”, often referring to it as the “lame stream media”. Considering their lack of investigative reporting skills, their adherence to the official government, Wall Street, and Fed lies, and no real desire to truly inform the American people, this name seems much more appropriate as they continue to destroy any credibility that remains while they relegate themselves to the ash heap of American history.

  • Evie

    We probably have the lowest tax rate for corporations when you consider subsidies and handouts. If there taxes are so high where does the lobby money come from. Liberterin not democrat.

  • Arizona

    Well ,you can tell the chinese who visit america are ready in case theres a problem while there here! a whole bus load of young chinese kids were walking around town last summer and all of them had AK-47s in there back packs,when I talked to them I told them it probly wasn’t legal for them to have fully automatic weapons in this country.I guested they didn’t come thru the regular airport securty like we have to or they got here some other way????? OF course they were the right age to be chinese military!!!HUMM maybe they were casing out our town too??

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