Global Red Alert: US Will Not Be Able to Service Its Debts B


Brödtext: http://www.futurefastforward.com/fina ... alysis/415-matthias-chang

FINANCIAL ANALYSIS




Global Red Alert: US Will Not Be Able to Service Its Debts By H2-2009 - Market Shut Down After Declaration of Force Majeure
- By Matthias Chang (LATEST UPDATE)
Matthias Chang
Saturday, 04 October 2008 06:30

This is the most important Red Alert to be issued by me. Do not take my word for it. Verify my facts and analysis, word for word, paragraph by paragraph, as your fortune (if any) and more importantly your family’s livelihood depends on you taking all the necessary steps now to avoid the inevitable pain that will follow.




All the signs are there that the Bush regime may impose stringent measures before the year is out, and if not, his successor will definitely do so when he assumes power in 2009. This will take place, at the earliest, by year end 2008 and latest by H2 – 2009. This is a given.




You have the means to verify it. Do it now! Google it before you read the next sentence. Once you have verified the same, you will be scared, very scared as I am now. We have an urgent duty and responsibility – that is to warn every American citizen as the first priority, and then fellow citizens in your country. This is because the impact and consequences will be global.




US Has Not Been Servicing Its Debts For Years



Sometime ago, before the Beijing Olympics, I had warned that the financial crisis would unravel rapidly after the Olympics, as China could not afford a calamity before and during their version of the greatest show on earth.




We are now witnessing the U.S. economy’s slippery slide to the financial hell hole.




Not many Americans are aware that the US has to service annually, debt-interest to the tune of US$400-500 billion! Being in perpetual deficit (both trade and budget), the only way that the US can continue borrowing and paying its ever increasing interest burden is by borrowing in larger and larger amounts from the central banks in Asia, Middle East and Europe.




Additionally, the US banks have been insolvent for years but they were able to cover up their bankruptcy because Alan Greenspan and his masters in Wall Street and Thread-needle Street were able to come up with an incredible Ponzi scheme – the selling of financial toxic wastes (CDOs, MBS, CDS etc.
) which enabled these bankrupt banks to fleece both central banks and private investors, and create digital profits by fraudulent creative accounting and corruption of politicians in Congress!



Everyone was borrowing to pay off the previous debts and interests.




In 2000 / 2001, the US economy almost collapsed and the false flag operation of September 11, provided the pretext and the opportunity for the Military-Industrial-Financial Complex to wage a global war (the “War On Terror”) to avert the financial crisis – the massive US debt default. The Bush regime was able to delay the crisis for seven odd years.




China, Japan and other major central banks, given the then prevailing circumstances, accepted the status quo and grudgingly allowed the US to be in default and to part-pay the interests due on past debts and the monthly new debts to pay for the war in Iraq and other misadventures.




China realized that unless she accommodated the US predator, her economy would suffer a major blow and even a war with the US. Bush’s challenge that you are either with us or with the terrorists, was and is directed at creditor countries and served as a warning not to ditch the dollar and derail the US controlled global fiat money / fractional reserve banking system. To the Bush war cabal, any attempt to call a default would be considered a “terrorist threat” on America.




It was a brute’s message: Any threat of economic war would be countered by a hot war and all military options would be on the table, including nuclear war.




The Japanese Yen Carry Trade



For more than two decades the Yen Carry Trade was the main pillar that shored up the shaky foundations of the US controlled global banking system. The Japanese was feeding the hungry US banking system, knowing full well that it would be a matter of time, before the hungry US financial beast would choke on its debts.




Of late, there have been several articles in the American mass media singling out China as the main threat to the security and financial interests of the US. I beg to differ. The principal threat to the US is Japan. She has been, and will be in the future, the greatest threat to the US.
This is because Japan’s war party never forgave the US for its disastrous defeat suffered in World War II and the humiliation of the nuclear destruction of Hiroshima and Nagasaki!



But for China’s agreement to finance the US’s ever growing appetite for debt, the financial crisis would have erupted much earlier. The Japanese grand plan has therefore been delayed.
But no longer! Why?



The End of The Road



Given the present state of financial health of the US, China can no longer sustain the massive handouts to the US without damaging its economy. This is also the situation faced by other central banks.




This is a matter of simple arithmetic and common sense as every honest banker (if ever there was one) will tell you. Interest is revenue. If interest is not paid, there is no revenue to the lender. It is the interest payments that will enable the lender to lend more monies to borrower as well as other borrowers eager for loans. Once a borrower fails to service the interest payments or service it adequately, the lender will have a cash-flow problem. In the result, the lender will not be able to lend or unwilling to lend further unless and until the delinquent interest payments are remedied.




In the present scenario, we are not even addressing the payment of the principal loan. If interest payments are in default, the lender can forget the repayment of the principal sum.




For all intent and purposes, the US cannot in the next 50 years at the earliest, pay off the principal outstanding to global central banks! And this is conditional on the US not waging any more wars.




Declaration of Default, Only Way Out



For the past 16 months, we have witnessed borrowers defaulting on their loan installments and walking away from their mortgaged homes, because it does not make any sense for them to continue making payments when the mortgaged homes’ values have collapsed to two-thirds of its original value or even worse.




The same situation applies to the US. America knows that it cannot pay the principal which is now in the trillions. It cannot continue to pay the ever increasing interests due on past debts and new debts to finance the deficits and the wars in Iraq and Afghanistan.
So, why continue with the pretense that it is still credit worthy?



The Bush regime, and for that matter any other future regimes, will not be able to cut back on defence spending. The Military-Industrial-Financial Complex will not allow it. If any President attempts to do so, he would be removed from office by a bullet to the head or an induced heart attack.




Neither would it be possible to raise taxes to pay off the over-due interests as it has been estimated by several economists as well as Paul O’Neill that the taxes would have to be increased from the present 28% to 65%. No President can impose such a hefty tax and remain in office.




David Walker, US Comptroller-General and Head of GAO have warned repeatedly that the US could no longer service its debts beyond 2009! And he is being optimistic. I would say that by year end, the US would hit the dead end.




The recent US$700 billion “bailout” approved by Congress is an attempt to prolong the inevitable. Bush hopes that he can pass the buck to the next president. But I doubt it.




And if I am right, and the shit hits the ceiling fan, Bush will have no choice but to declare a force majeure, tell the world that US is in default and impose martial law to prevent social unrest.




To the skeptics, I would like to remind them that when President Nixon was faced with the demand by France that their dollar holdings be redeemed in gold, he announced to the stunned world that the US dollar would no longer be convertible to gold, as there were insufficient gold in Fort Knox to meet the demand.




And because the Western world was facing the threat of war with Russia (an engineered threat at that), countries outside the communist bloc all fell in line and kow-towed to the “mighty US paper tiger”!



Today, the US and the Western world are reaping what they have sowed in the 1970s! The chickens have all come home to roost.




Government protocols for economic collapse are all in place.
All the relevant institutions have the necessary legal powers to enforce government decrees and edicts to ensure that when banks are closed and markets shut down, there will be minimum resistance or else blood will flow on the streets!



This is the scenario that we will be facing in the coming months.


Personligen tror jag det går fortare........

AIG Execs Receive a 'Flogging from Congress' (NO JAIL?!)

http://www.alternet.org/blogs/video/1 ... a_flogging_from_congress/

In the wake of the $700 billion bailout, the public is finally getting a look at the faces behind the financial crisis. On October 7, the Committee on Oversight and Government Reform grilled former AIG CEOs Robert Willumstad and Martin Sullivan. During the five-hour hearing the executives tried to dodge blame as congress members harshly criticized their management of AIG and questioned their compensation.

http://link.brightcove.com/services/l ... 417423198/bctid1842856413

WTF först ska dom bailas ut sedan åker dom på ett spa å får pedikyr för skattepengarna, det här visar vilka dom är, å dom är fan lika allihop å Pettersson på Scandia också......skamlöst.


..

Amerikansk statsskuld för hög för New York-skylt

publicerad: 9 oktober 2008, 13.54. Senast ändrad: 9 oktober 2008, 13.57

Den amerikanska statsskulden har blivit så stor att den så kallade skuldklockan i New York inte hinner med. Det finns helt enkelt för lite utrymme för de sista nollorna på skylten i Times Square.

Det var när statsskulden passerade 10 biljoner dollar för några veckor sedan som skylten The national debt clock i Times Square fick problem. Skylten sattes upp 1997 i samband med den dåvarande finanskrisen för att illusterera statsskulden som då låg på på 2.7 biljoner dollar, rapporterar BBC.

Nu lovar skyltens skapare Douglas Durst, son till den avlidne fastighetsmagnaten Seymour Durst att skylten ska uppgraderas. Syftet har hela tiden varit att uppmärksamma amerikaner på hur stor statsskulden är och att påminna politiker om att hålla nere kostnaderna.

För tillfället har klockan ersatts med en billigare version med extra utrymme för några nollor till. Men det ska inte ses som en indikator på hur finskrisen kommer att utveckla, i början av nästa år ska en ordentlig skylt vara på plats igen lovar Douglas Durst.

Frågan är dock hur många fler nollor som behövs. Enligt en del bedömare kommer 700-miljarderskrispaketet som nyligen röstades igenom att öka på statsskulden till 11 biljoner dollar, skriver BBC.

http://www.svd.se/nyheter/utrikes/artikel_1856857.svd

http://finance.yahoo.com/marketupdate/overview

Raset fortsätter.............

Quote:

Morgan Stanley 38% ner nu......

Saxat ur stycket.
(The Fed can't print enough money to paper over the $531.2 trillion in derivatives and credit swaps,)



http://www.rense.com/general83/bailo.htm


Bailout A Bust -
Depression To Follow
Gerald Celente
10-9-8

RHINEBECK, NY 9 October 2008 -- Once again, Washington has proven that anything it touches is doomed to failure. Unable to win wars, repair levees, fix voting machines or rebuild its Twin Towers, the colossal $700 billion bailout package passed last week by Congress proved to be an instant bust.



As we predicted in our 26 September 2008 Trend Alert® Put the Bailout on the Ballot -- "The bailout plan will only bail out CEOs and preferred stakeholders of failing financial firms while sinking the American people deeper in debt."



With not one major success to their credit and a long history of unmitigated disasters to pin their reputations on, the Wall Street rescue package did nothing to solve the credit crisis as those in Congress who rammed it through had promised.



"Without immediate action ... America could slip into financial panic and a distressing scenario would unfold," said President Bush, urging quick passage of the bill. In a fearsome tone reminiscent of the nation's rush to war with Iraq, Bush warned that quick passage was "essential to the financial security of every American."



"Think about it," said Barack Obama promoting its immediate passage. "If your neighbor's house is burning you're not going to spend a whole lot of time saying well that guy was always irresponsible ... his house could end up affecting your house. And that's the situation we're in right now," he said on the campaign trail while also taking time to arm-twist the congressional Black Caucus to support the bailout plan.



Weighing in with his brand of fear, the self-professed economically uneducated John McCain warned, "... the direct consequences of inaction will be far more damaging to the economic security of American families, and the fault will all be ours."



One after another, the leaders of both houses in both parties pushed for passage of the bailout bill that was pushed on them by the Treasury Czar and the Wall Street Gang. (See DC Heist: Wall Street Gang Hijacks Washington, Trend Alert®, 22 September 2008.)



"Supporting this legislation is the only way to make the best of a crisis and return our country to a path of economic stability, prosperity and growth," championed Democratic majority leader Harry Reid, who had admitted several days earlier that "no one knows what to do."



"This isn't about a bailout of Wall Street, it's a buy-in, so that we can turn our economy around," declared Democratic House leader Pelosi. Her Republican counterpart Boehner urged "every member whose conscience will allow them to support this," giving assurances, as did the others, that the $700 billion taxpayer-funded package would stop financial panic from spreading.



But even before the ink dried on the pork-infused bill that fattened greedy congressmen and lined financial insiders' pockets, the news of its passage sunk the Dow 157 points on the day.



When the overseas markets opened Monday, they reacted to the bailout by registering one of their worst market crashes in decades. And with each passing day, the economic news just kept getting worse, and with each passing day the Federal Reserve just kept throwing good money after bad.



Beyond the $1 trillion subprime problem that's been erroneously targeted as the prime culprit behind the credit crisis are more serious financial catastrophes that are barely reported, mostly overlooked and can't be remedied. The Fed can't print enough money to paper over the $531.2 trillion in derivatives and credit swaps, the trillions in the overbuilt commercial real estate market ready to collapse, the multi-trillions in leveraged buyouts going bust, and other "exotic" financial instruments that have turned toxic.



Trendpost: The Panic of '08 is "On." Yet, the instant the Dow crashed 678 points today, Bloomberg Radio brought on an expert who declared "most of the crash is behind us" and said the market plunge presented "a good buying opportunity." We see things differently. Yesterday's lowering of interest rates and the continual Fed action to flood the markets with money will lead to an era of hyper-inflation, the likes of which no living American has ever seen.



Gold prices shot up some $24 after being down over $20 earlier in the day. We continue to forecast gold $2000. And once again, we urge you to take precautionary measures in view of a worsening global market meltdown.





Gerald Celente

Founder/Director, The Trends Research Institute

Publisher, The Trends Journal

E-mail: gcelente@trendsresearch.com

Website: www.trendsresearch.com

Telephone: 845.876.6700 - Ext. 4



© MMVIII The Trends Research Institute ®

New World Order har nu helt tagit över Wall Street.
Kanske någon slags 'predictive programming'? NWO nämns ju av alltfler nyhetsankare och reportrar, vill de vänja oss vid tanken eller trotsar de sina bolag och sprider information istället för propaganda?

New World Order on CNBC
http://www.youtube.com/watch?v=RJJ6OYVsLtc

Ron Paul och producenten bakom Money Masters på The Alex Jones Show idag, kan kanske vara intressant.

"Alex talks with Patrick Carmack, producer of the documentary the Money Masters about the economy. Ron Paul also makes an appearance."

Läget i USA verkar förvärras snabbt.

Ron Paul on The Alex Jones Show 10/17/08 PT. 1
http://www.youtube.com/watch?v=ZYSvZJ5BHfc

Ron Paul on The Alex Jones Show 10/17/08 PT. 2
http://www.youtube.com/watch?v=XPbycQSlEos

Patrick Carmack on Alex Jones Tv"The Money Game"1/3
http://www.youtube.com/watch?v=c8NQGpo1htg&feature=related

Patrick Carmack on Alex Jones Tv"The Money Game"2/3
http://www.youtube.com/watch?v=kRBUQ7EFbgs

Patrick Carmack on Alex Jones Tv"The Money Game"3/3
http://www.youtube.com/watch?v=KBR9k-dCHi8&feature=related

Varför jobba när man kan be banken trycka upp de pengar man behöver?

Så djävla självklart att ett litet barn skulle ställa frågan.

Ron Paul, fredag morgon CNN;

Ron Paul/The peoples champion.

Ron Paul beskriver finansbubblan som kan kollapsa dollarn.

Ron Paul at John Birch Society 50th Anniversary
http://www.youtube.com/watch?v=eqJIfqb9cTc

The Fed Reserve Corporation Is Who Benefits!!
http://www.youtube.com/watch?v=EefEeb0Rfx0

Fooled by globalization
A sobering discussion on the nature of the current economic crisis and why this one may be very different from ones in the past.

The problem: globalization adds exponentially to the complexity of potential outcomes, but the banking system is not designed to absorb the kind of rapid and massive changes globalization makes possible.

These aren't two hippies railing against the system. This is one of most insightful mathematicians and one of the most accomplished options traders of our time.

http://www.youtube.com/watch?v=H3zZ6qNWeGw

Marc Faber : Buy Buy Buy GOLD before the dollar collapses !

http://www.youtube.com/watch?v=JNAUYXvO16I