It’s Official: The Crash of the U.S. Economy has begun

Wow! Mass replies

I know back in March there was a sub-prime mortgage collapse, where 40 or so high risk lenders went bankrupt, and since then more have gone under, and so have some alt-a lenders. Since then, things have seemed to have a dominoe effect. April was the highest month for foreclosures in like 16-17 years I think. There's a lot of people losing their homes.

I believe the collapse is being engineered, but we must first go back and look at the crash in '29 and GD1. In 1913 the The 16th Amendment and Federal Reserve Act was created, thanks Woodrow Wilson :/ Right then we lost the Revolutionary War. It wasn't just to get freedom from King George III and the taxes, It was also to get freedom from the Rothschilds Bank of England.

Next came WW1. This spurred economic growth as we had to build weapons, ships, tanks, trucks, etc. Jobs were created, and at the end of the day, their wasn't as much competition for the post WW1 jobs because so many people died.

The economy was booming, people were borrowing from the banks left and right to start new businesses and build homes. The Fed kept the money supply wide open to continue this economic growth until inflation occurred (more dollars in the money supply = each dollar is worth less = inflation). Then they restricted the money supply to stave off inflation, and thus began the bust cycle of the boom/bust cycle. The economy tanked, the dollar was slipping and in '29 the stock market crashed, and people had to go into foreclosure on their homes which means the banks take them.

So, who benefitted from the crash? The Banks. They engineered the crash by creating this boom/bust cycle that would transfer wealth from the low and middle classes to them. That wealth was Proporty, the only thing left of real value.

Enter Roosevelt era. Socialist policies were implemented to create jobs and infrastructure. It eventually succeeded in getting America back to work, but as 1 person pointed out, some of those polices never ended. WW2 begins in Europe, and regardless of his platform to get elected (no fighting wars in Europe), we start building up the war machine, which creates jobs, again. Again we fight a world war, people come home, and there are less people to compete for the post war jobs because of the hundreds of thousands that died.

Economic boom continues. We have more of the war/boom/bust cycle type of thing in the 60's-70's and then we went off the gold standard. We then make some agreement with OPEC that we will provide security for their oil interests in exchange for them only excepting "U.S. Dollars" for oil - Dollar Hegemony begins.

In 90 we were called to hold up our end of the bargain, and kick Saddam out of Kuwait. They did not want us to destabilize Iraq by taking him out though. We couldn't do regime change 91, they would not let us... War/Boom/Bust - .com crash, etc., so on, and so forth.

Today, more War/Boom/Bust. I say this coming crash is engineered cause we cam look back in our history and see examples of this cycle, some large, some small. Today's methodology is different than GD1, but the effect will be the same or worse. Instead of the Fed restricting the money supply, they have done away with reporting M3, which is the measure of our money supply, because they do not want us to know how much they are flooding out there. This makes the value of each dollar worth less and less, which is the root cause of inflation.

95% of our money is created out of thin air by banks whenever someone signs on the dotted line on a mortgage. 5% is by the Fed, who is the shield for the banks counterfeiting racket. As mortgage lenders go belly up, who benefits? The banks do cause they gobble 'em up. Who gets all of the property then? The banks. This time they are engineering the crash by not restricting the money supply, and our borrowing 3 billion per day from China to fund our empire isn't helping.

As 1 poster pointed out, yes, things are heating up between us and China right now. China has been artificially keeping their Yuan low and not letting it float freely against the dollar and other currencies, which gives them a competetive price advantage and allows them to use us as a dumping ground for all their goods. We need to start voting with our dollars and stop shopping at Walmart and buying from China, well it's too late for that now, we should have done that 5 years ago.

China will sell off all of it's 1.2 trillion dollars it holds in reserves, and buy Euros to buy oil from Iran with. This would crash the dollar at the snap of a finger. If our dollor goes dow, many, maybe most economies in the world go down with us, especially Japan, who has over 70% of their reserves in U.S. dollars.

Bush is harping on China about their currency, and shaking hands with Taiwan to antagonize them on purpose. Here's why. We have been borrowing 3 Billion dollars per day to fund our empire. From who? China! War with China means we can say "F00k J00" to that debt we owe them. We are going to screw them over on the money we owe them by provoking them into invading Taiwan.

Russia, Iran, and N. Korea will back China in this war. India is 50/50. Our Taiwan defense strategy hinges around them holding out for 30 days while we get troops there. What troops? Their all in Iraq! We'll use our Navy. The Reagan carrier group is in the area atm. We'll use our air force, and drop bombs.

China knows our strategy, and I have read white papers by their generals. They have plans that call for pre-emptive nuclear attack on Guam, Diego Garcia, Hawaii, and the whole west coast to disable us from countering their invasion of Taiwan. I doubt they'll do it.

Taiwan has a better trained and better equipped airforce, but China's airforce is better now days with their new JIN-21, which has alot of ripped off avionics from the F-16. Taiwan has an Indigenous Defense Fighter, or IDF. It's a good plane! Their IDF2 is beautiful, but they have only 1 atm. Taiwan has a better navy, but China has advanced anti-ship missiles, and a lot of them.

Ultimately, we can't stop China from invading Taiwan because we don't have the troops. We can launch lots of pretty missiles though, have some really cool lookin air and naval battles not seen since WW2, but at the end of the day, China wins Taiwan, and we won't owe them a dime cause we'll say "F00k J00!" We don't need to repay our debt's, we can just start wars!

So, what can you do? Get out from under your adjustable rate mortgage and go to a fixed rate, sell all your stocks bonds and mutual funds and close out your 401-k's and IRA's early, screw it, pay the 33% penalty, and buy gold/silver (30/70), get a safe to keep it in and a gun to defend it with. When the dollar goes down, precious metals go up, and vice versa. That's how you can profit from the collapse.

Buy lots of freeze dried food and canned food and bullets, just in case we are looking at a Mad Max scenario. Stock up on vitamins and minerals and any medicines you need.

If some of the stories about UN troops already being here on US soil are true, and stories about Chinese troop incursions into the U.S. from Mexico on the border are true, then plan accordingly as well. I am not able to validate these claims, but have been trying. All I can say is I saw a whole bunch of German troops at this truck stop once, and later saw some Canadian troops there too. I do think the economic collapse and the NAU are related, and I think the NAFTA super highway would sure be an easy way for China to get troops into the US if they want. Maybe that's why Bush is pushing so hard again to get us to allow mass Mexican truckers access to the U.S., not sure though.

Good luck all, and take care.

Kelldor

P.S. To the 65 monk, WOOT! I'm from Terris Thule originally, but we merged with Prexus. I'm a retired 75 Paladin. I log in once in a while.

My question is this:

How much time do we have? I would like to help some of my family get their money in order, but I do not know how to verify this for them, other than some "Crazy conspiracy guy" language and links to underground wesbites. I would really like to know the time-frame we are dealing with on this issue.

Can we look for this failure to occur in the next 6 months, or 6 years? If months, then I should be loading my safe/gun now. If years, then maybe I can let the money build up a bit before taking a hit on the interest/taxes.

Any ideas on how to formulate a timetable? GD1 experts, speak up! ;p

I will find an internet article about World War Three.

The article sets it in 2009, I think, and the war lasts for 3 days then the United State give in to Chinese demands.

If war was to happen with China, it would result in US economic collapse because you cannot afford a major war.

And yes, this is ALL linked to NAU

here is the article

War With China

Charles R. Smith
Tuesday, Aug. 14, 2001

On the first day of World War III, the United States lost two-thirds of its military and nearly half its population, yielding superiority to communist China. U.S. orders of the day were of high alert, and there is simply no evading the fact that we were not ready.

The Chinese rain of missiles on U.S. installations and homeland cities was a military masterpiece. The People's Liberation Army Second Artillery Corp achieved complete surprise, armed only with a small force of more than 300 tactical and 10 strategic missiles.

Defenseless against the attack, U.S. forces in Hawaii, Alaska, South Korea and Japan were quickly overwhelmed by the guided warheads of the Chinese missiles. The bombs plunged out of the inky blackness of space, striking within seconds of each other. The rain of death fell swiftly upon a sleeping America with precise and devastating accuracy.

www.newsmax.com...

Nice fiction story,

total rubbish of course. The US is like a large animal the biggest predator on the planet today. A smaller less powerful critter (Iraq) and its clan (Afghanistan, etc) have bitten the bigger beast and its bleeding (money and personal) if the bleeding does not stop the big critter is in danger of passing away.

Look at Britain (the last big empire) it started a war that lasted 6 years it stood alone for a while and bled (financially) then at the end of the war completely bankrupt and empire no more.

The worrying bit though is that the real enemies of the west are sitting back getting stronger using lesser countries to do there work.

12SeVeN34

That's a tough question and anyone that tries to answer it with any certainty is just scrying into a crystal ball. There's some things we can look at though, but the stock market really isn't one of them, cause if/when it plummets, then your too late :/ If you would like to show someone an official government document then I would show them the GAO report called "Fiscal Stewardship: A Critical Challenge Facing our Nation".

The federal government’s financial condition and fiscal outlook are worse than many may understand. Despite an increase in revenues in fiscal year 2006 of about $255 billion, the federal government reported that its costs exceeded its revenues by $450 billion (i.e., net operating cost) and that its cash outlays exceeded its cash receipts by $248 billion (i.e., unified budget deficit). Further, as of September 30, 2006, the U.S. government reported that it owed (i.e., liabilities) more than it owned (i.e., assets) by almost $9 trillion. In addition, the present value1 of the federal government’s major reported long-term “fiscal exposures”—liabilities (e.g., debt), contingencies (e.g., insurance), and social insurance and other commitments and promises (e.g., Social Security, Medicare)—rose from $20 trillion to about $50 trillion in the last 6 years.

The federal government faces large and growing structural deficits in the future due primarily to known demographic trends and rising health care costs. These structural deficits—which are virtually certain given the design of our current programs and policies—will mean escalating and ultimately unsustainable federal deficits and debt levels. Based on various measures—and using reasonable assumptions—the federal government’s current fiscal policy is unsustainable. Continuing on this imprudent and unsustainable path will gradually erode, if not suddenly damage, our economy, our standard of living, and ultimately our domestic tranquility and national security.

And..

GAO is responsible for auditing the financial statements included in the Financial Report, but we have been unable to express an opinion on them for the 10th year in a row because the federal government could not demonstrate the reliability of significant portions of the financial statements, especially in connection with major financial management challenges at the Department of Defense. Accordingly, amounts reported in this publication taken from the Financial Report may not be reliable. GAO also reported that the federal government did not maintain effective internal control over financial reporting (including safeguarding assets) and compliance with significant laws and regulations as of September 30, 2006. Further, GAO’s audit report also included an emphasis paragraph for the 3rd consecutive year noting that the nation’s current fiscal path is unsustainable and that tough choices by the President and the Congress are necessary to address the nation’s large and growing long-term fiscal imbalance.

These are exerpts from the Preface. Note the use of terms like "fiscal path is unsustainable", and "unsustainable federal deficits and debt levels", and "Continuing on this imprudent and unsustainable path will gradually erode, if not suddenly damage, our economy, our standard of living, and ultimately our domestic tranquility and national security."

Our spending and debt is a threat to "National Security!" The GAO points out that for 10 years straight the federal government has been breaking the law in its financial reporting to the GAO. Thats why the "real" national debt is now 59.1 Trillion, over 400% greater than our GDP.

Rules 'hiding' trillions in debt - Liability $516,348 per U.S. household

US debt could trigger dollar collapse, UN warns

I hope this helps.

Originally posted by infinite

War With China

Charles R. Smith
Tuesday, Aug. 14, 2001

On the first day of World War III, the United States lost two-thirds of its military and nearly half its population, yielding superiority to communist China. U.S. orders of the day were of high alert, and there is simply no evading the fact that we were not ready.

The Chinese rain of missiles on U.S. installations and homeland cities was a military masterpiece. The People's Liberation Army Second Artillery Corp achieved complete surprise, armed only with a small force of more than 300 tactical and 10 strategic missiles.

Defenseless against the attack, U.S. forces in Hawaii, Alaska, South Korea and Japan were quickly overwhelmed by the guided warheads of the Chinese missiles. The bombs plunged out of the inky blackness of space, striking within seconds of each other. The rain of death fell swiftly upon a sleeping America with precise and devastating accuracy.

I really don't think the US will be caught sleeping while thousands of missiles fall on them. The idea that China is somehow now the equal of the US forces is preposterus. US citizens seem to take what the US government says with a grain of salt these days, but for some unknown reason will beleive China's propoganda that their the US's military equal.

China has huge problems people. From their environment(which costs them 17% of their GDP and is increasing rapidly), to their population growing beyond civil control, to a potential conflict with the US and its allies, and finally the potential of revolution in China. Anyone remember Tiamen Square? Does anyone really believe the Chinese people have forgotten?

Wake up and stop listening China's communist propoganda.



[edit on 15-6-2007 by FreeSpeaker]

The above described scenario mirrors what I read in the Chinese white papers I read a long time ago. That's what some Chinese generals would like to see happen, but I don't think it's realistic. China would cease to exist as a nation and a nuclear winter would engulf the planet.

Hey look! I wrote a short post, lol

china has so many people that if they drafted everyone to go to war for them we would be screwed. it would be like a spider trying to fight a thousand fire ants. you better all hope and pray we don't go to war against them.

Jesus Christ, are you kidding me? No one here thinks enough to question the validity of such a statement? If some guy tells you that the sky is going to fall, will you believe him and be on your way, or will you do your own research into the sky?

My question is this: Why do we think that the U.S. economy will "crash"? What would cause it? How will it happen?

The world is no longer made of individual economies. It is a gobal economy. Whatever happens to the US economy will has drastic effects on the world.

Remember the market 'ripple' duirng the Asian market crash a couple of years ago.

If the US economy collapses then welcome to the next 'darkages'.

I love to read the Mogambo King at 123 gold and the daily reckoning usually access his sarcastic and truthful witty outlook on the real world of economics on Steven Quayles site.

www.dailyreckoning.com...

www.stevequayle.com...

Several years ago I had a telephone conversation with Steve about where to place my extra cash for the largest returns. After talking he told me the best place would be for the long run in silver.
I am not a rich person and at that time you could pick up silver very inexpensively. I discovered that physical junk silver would be the least expensive way to go and when the bottom dropped out of the economy I would have silver dimes to make purchases and barter with.
Well although he makes money in the financial arena, and could have made money on me that day, he instead lead me in the direction with the integrity of a Father's advice. Within 2 years time I watched my silver go from 5 USD per ounce to almost 20USD per ounce. I was then able to invest it in what ever I chose, gold was looking pretty good at that time, but remembering what Steve had told me, I chose to invest the still relatively small amount in more silver.
I was keeping in mind that when I go to make a mortgage payment on our farm or pay the taxes on the property, they are going to want physical and monetary exchange. As far as the rest of life, you cannot eat gold or silver but you can have it taken away.
I guess what I am attempting to contribute here is that you can still get small amounts of silver at a very reasonable price. Silver is more of a commodity for everyday use than gold. Silver is more difficult to mine than gold.
Gold will always be gold, but with silver,when you do the math it is potentially worth alot more than gold for the smaller investor. One more VERY important point is that it must be physical silver and NOT paper. There is 'not' enough gold or silver to back the paper notes that are out there even as we speak.
It will be difficult to find anyone able to purchase your gold bar worth 60,000 an ounce when the bottom drops. But will you have enough spare dimes (pre 1963) to purchase bread when it is 200.00 a loaf? It is here we are just living in a pre WWIII illusion of security.
I hope the best for everybody when the SHTF, and all of the canned goods in the world will not help. Being prepared will help.

This is Nothing more then a bunch of Canadians from a Canadian website slamming the US economy based on their opinions.

I am with Johnmike people need to start asking questions rather then assume it is fact.

Looks around for FoxyLoxy

this is the site I use to know when the collapse will happen:
bulliondirect.com...
Once gold reaches 700 it will start.

Originally posted by piacenza
this is the site I use to know when the collapse will happen:
bulliondirect.com...
Once gold reaches 700 it will start.

And why do you say that?

The whole fiasco is deliberately engineered to scare the public and create a smokescreen as capitalism pulls its next master stroke.

Capitalism has come to realize that there is a lot (LOTS AND LOTS) of money to be ripped off by charging people to stop capitalism from making Global Warming worse. Businesses that are environmentally neutral are actually more profitable but capitalism would have the public believe the opposite so that increased charges and prices can be inflicted on the population without question. They are going to charge us for the privelege of having them make even more obscene profits.

All this talk of economic decline is to keep the people twitchy so they don't ask too many hard questions as capitalism tears the heart out of more and more citizens.

Originally posted by antar

Several years ago I had a telephone conversation with Steve about where to place my extra cash for the largest returns. After talking he told me the best place would be for the long run in silver.

Good advice.

But will you have enough spare dimes (pre 1963) to purchase bread when it is 200.00 a loaf? It is here we are just living in a pre WWIII illusion of security.

Pre 1963 Dimes ? Is that the trade medium of the future ? DANG !!!

And, $200.00 a loaf ? Really ?

You been with Titor ?

Where, oh where do you get your statistics ?

Wondering,
Lex

The next president of the US just unloaded her stocks:
news.yahoo.com...

Originally posted by seisen

Originally posted by Ironside

Originally posted by seisen
I don't think that Act itself caused the Great Depression I think it helped worsen the Great Depression. Thanks for providing me a link.

The depression would not have been near as bad if it was not for the Tariff, that's for sure. It's the Tariff that caused the Global Depressipon.

The thing that slays me is you never hear about the global depression here in the United States, all we here about was the Great Depression that happened here.

Well it was disasterous to our natiopn and we were not yet a global power. We had no time to worry about other nations.