Friday, March 21, 2014

Economic Collapse! How Did We Get Here? (Part 4)


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A Few Words on Monetary Reform
by on April 15, 2014
This video, in Dutch, was made by Studio White Cat, Merlijn Janssen Steenberg. Kudos to him for this very professional production.
Subtitles can be turned on with the cc button at the bottom of the Youtube player.

A Few Words on Monetary Reform
Anthony Migchels Monetair Hervormer  
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Wealth Inequality in America  
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Experts Predict Imminent Collapse of U.S. Dollar
Written by Damon Geller
For the last 600 years, there have been six different global reserve currencies controlled by world superpowers. The latest – the U.S. dollar – has dominated world currency for over 80 years. The alarming fact is, global reserve currencies have collapsed every 80-90 years for the last six centuries! What does this mean for America and the dominance of the U.S. dollar? Based on recent evidence and long-standing historical trends, experts predict the imminent collapse of the U.S. dollar! What’s more alarming? Many Americans aren’t yet doing the one thing that will save their savings & retirement from U.S. dollar collapse.
In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value [with paper currency]. -- Alan Greenspan
The Crisis Generation
600 years of human history has shown that the average lifespan of a global reserve currency is equal to a "saeculum" – or "human lifetime" – of about 80-90 years, broken down into four 20-year generations. The best-selling book, "The Fourth Turning," goes through history and demonstrates this 4-phase evolution:
First generation: High – This is an era when institutions are strong and society is confident about where it wants to go. America’s most recent First Turning was the post-World War II American High, beginning in 1946 and ending with the assassination of President John F. Kennedy.
Second generation: Awakening – This is an era when institutions are attacked in the name of personal and spiritual autonomy. People suddenly tire of social discipline and want to recapture a sense of personal authenticity. America’s most recent Awakening was the "Consciousness Revolution," which spanned from the campus and inner-city revolts of the mid-1960s to the reelection of Ronald Reagan.
Third generation: Unraveling – This is an era when institutions are weak and distrusted, while individualism is strong and flourishing. America’s most recent Unraveling was the Long Boom and Culture War, beginning in the mid-1980s and ending in the late 2000s.
Fourth generation: Crisis – This is an era in which institutional life is destroyed and rebuilt in response to a perceived threat to the nation’s survival. America’s most recent Fourth Turning began with the stock market crash of 1929 and climaxed with the end of World War II.
America is now in this fourth "crisis" phase, about 80-90 years from the beginning of the first phase. It is in this "fourth turning" crisis that institutional life will be torn down and rebuilt from the ground up. This rebuilding is always in response to a perceived threat to the nation’s very survival. Is there any question that right now our nation’s very survival is at risk? Based on history, we are right smack in the crisis period, and full breakdown of all our current "systems" are scheduled to happen sometime between now and 2020. This systemic breakdown means there will be major changes in the world’s financial system and reserve currency.
Want proof? Just take a look at the graph below. It shows the lifespan of dominant currencies going back 600 years. Notice that the U.S. dollar has now been the dominant currency for 88 years, about the same length of time as its predecessors:
So when you combine the lifespan of dominant currencies throughout history with the fact that we’re entering the "Crisis" generation, it’s obvious why experts say that the U.S. dollar’s days as the world’s reserve currency are coming to a climactic end.
All Fiat Currencies Collapse
"Fiat" currency is paper currency backed by nothing tangible. As opposed to "sound money" which is was backed by gold or some other valuable commodity, a fiat currency is backed by nothing more than faith in the government. The U.S. dollar has been a fiat currency since Nixon closed the gold window in 1971 in what was the greatest heist in American history. The scary fact is, the average life span of a fiat currency is 40 years, and the U.S. dollar has now exceeded 40 years as a fiat currency!


Prior to 1933 and for well over 100 years, the dollar was backed by gold, and $20 bought you an ounce of gold. But after the government stole all U.S. citizens’ gold in 1933 for a $20 paper certificate, gold was revalued at $35 U.S.D., meaning the dollar was devalued by 43% overnight and all foreign and domestic holders of dollars were effectively robbed.

After Nixon closed the gold window completely in 1971, it took $67 to buy an ounce of gold, devaluing the U.S. dollar by 50% again. Today, it takes well over a thousand U.S. dollars to buy that same ounce of gold. Why? Because the U.S. dollar is now nothing more than a fast-declining Federal Reserve note backed by a corrupt government that is saddled with $17 trillion in unpayable debt.

Americans Are Living in Denial

Most everyone reading this article was born into U.S. dollar supremacy. So it should come as no surprise that most of America is asleep when it comes to the dollar’s coming doom. Unfortunately, that means that there aren’t a whole lot of Americans preparing for dollar collapse either. Most folks have been brainwashed by Wall Street and the bank-run mainstream-media to believe in what amounts to nothing more than a grand illusion based on lies…
The U.S. dollar will always be king.
Your wealth is safe in a bank.
The financial "system" and stocks are safe (even at ridiculous valuations).
The economy is actually recovering.
The job market is improving.
Inflation doesn’t exist.
The bankers and their politician puppets have your best interest at heart.
People must believe this illusion, because if people were actually thinking critically about these massive and inevitable shifts in power and wealth preservation, there would be even more Americans buying real gold. There would be far less wealth sitting in the corrupt, criminal and insolvent too-big-to-fail banking system. And the Fed, who monetizes a trillion dollars a year with their criminal QE policies, would be shut down. People would insist that our elected officials start working for the people who elected them, instead of banks and corporations, or they’d throw them out.
But instead, most people are sleepwalking through life believing the perpetual propaganda and lies that they have been told for so long that the illusion has become masked by false hope.
Protect Yourself Before It’s Too Late
This "Paper Money Experiment" has run its course. The Federal Reserve, the U.S. government, and Wall Street crooks have misused their power by mismanaging the dollar, and there will be global repercussions. The debt load sitting on top of the U.S. dollar is unsustainable and will continue to crush the dollar’s purchase power until no one wants to hold U.S. dollars, and they are no longer accepted for global trade. The dollar’s collapse means that every single one of your paper investments that are dollar-backed – stocks, mutual funds, money markets, cash accounts, etc. – will go down right along with the dollar! Meanwhile, the government and the banks will find a way to protect themselves at your expense.
So as we say goodbye to the U.S. dollar’s dominance, it doesn’t have to mean goodbye to your savings & retirement. Remove at least some of your savings & retirement from the dollar-backed, paper-based financial system and protect it with the one asset that has outlasted every fiat currency ever invented for the last 5,000 years: Gold. (Call 800-226-8106 to receive your free copy of Damon Geller's popular book, "Rescue Your Money from the National Debt Disaster."

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Economic Misery: The New Normal
The most onerous increasing cost for an employee base? Obamacare
By Arnold Ahlert
Thursday, May 2, 2013
The weakest recovery in the nation’s history continues. On Wednesday, payroll processing firm ADP reported that private sector businesses created a disappointing 119,000 jobs in the month of April. Once again, to use a word that should embarrass those who support the Obama administration’s Keynesian economic policies, this meager total was "unexpected."
Economic "experts" surveyed by Reuters had predicted at least 150,000 new jobs. "Nearly every industry has seen slower growth since the beginning of the year," said Moody’s economist Mark Zandi. "Smaller businesses are experiencing much weaker growth."
Most of the jobs were created in the service industries, which added 113,000 positions, while goods production accounted for the other 6,000. Both figures represented 7-month lows in growth. Adding to the misery, ADP’s March total of 158,000 jobs gained was revised downward to 131,000, and the latest data show the manufacturing sector, which lost 10,000 jobs, has plateaued, or may be slowing down again.
The level of economic weakness is daunting. According to Bespoke Investment Group, the seven year stretch of Gross Domestic Product (GDP) growth below three precent, occurring from 2006 to the present, represents the longest one since 1929, the year which marked the beginning of the Great Depression.
Furthermore, despite a U3 unemployment rate of 7.6 percent, used by the Bureau of Labor Statistics (BLS) to calculate "official" unemployment, the U6 rate that far more accurately reflects reality, is 13.8 percent. The reason the U3 rate is misleading is because people who have given up looking for work aren’t counted as unemployed. Since America’s workforce participation rate is at its lowest level since 1979, reality is being manipulated to make the Obama administration’s dismal economic policies look better than they actually are.
Still more manipulation is being pursued by the feds. They are going to revise how GDP growth is calculated. Research and development spending, as well as the capital value of all "intellectual property," such as books, movies, records, television programs and plays—produced since 1929—will be added to the total.
Michael Pento, founder of Pento Portfolio Strategies, cut to the heart of the subterfuge. "When GDP numbers are chronically bad and the labor force participation rate is perpetually falling, our government will do the same thing they did for the inflation data—tinker with the formula until you get the desired result," he explained.
Pento further notes that no amount of manipulation can obscure the reality that federal revenue intake has remained stagnant for six years, even as the national debt has soared by nearly $7 trillion. "It’s a shame they won’t just implement real measures to grow the economy like reduce regulations, simplify the tax code and balance the budget."
For progressives, such solutions are completely antithetical to their desire for ever-expanding government. Despite historically anemic growth, and $7 trillion of additional debt that is nothing more than stimulus by another name, the Obama administration will continue to pursue such destructive policies.
Thus, it was no surprise that Federal Reserve’s Open Markets Committee (FMOC) voted 11-1 Wednesday to maintain their latest quantitative easing project that consists of keeping interest rates near zero and maintaining $85 billion of asset purchases ($45 billion in Treasurys and another $40 billion in mortgage-backed securities) per month. The one notable change: asset purchases would increase or decrease depending on economic conditions. "The Committee is prepared to increase or reduce the pace of its purchases to maintain appropriate policy accommodation as the outlook for the labor market or inflation changes," a statement said.
Moreover, they criticized the so-called budget cuts imposed by sequestration for holding back the economy. One is left to wonder what held back the economy for the four years preceding the $85 billion in automatic spending cuts. Those years included stimulus spending totaling more than $4 trillion in borrowed money. That "pump priming" was supposed to bring unemployment below 6 percent, a number as inaccurate as the Obama administration’s overly optimistic growth predictions that also fell short—unexpectedly—year after year.
Ken Griffen, head of the Chicago-based hedge fund Citadel, explains what companies do in an artificially created, low-interest rate environment. "As we’ve all learned over the years, if you reduce the cost of capital you increase your use of fixed assets and you take out jobs. Corporate America, seeing an ever increasing cost for its employee base and extraordinarily low interest rates, is taking every step it can possibly take to reduce employment, to build factories abroad and domestically to substitute technology and automated processes for people," he contends.
The most onerous increasing cost for an employee base? Obamacare.
Beginning next year, companies with 50 or more employees in 2013 will have to provide health insurance for their workers. As Mark Zandi notes, business with 20 to 49 employees have cut hiring for three straight months, from 53,000 in January to just 17,000 in March. Other businesses are cutting back employee hours, because only full time workers—defined as those who work 30 or more hours a week—are required to be covered. The food service industry, which currently accounts for one out of every 13 jobs, has acknowledged that keeping shifts below 30 hours may be the difference between remaining open, or going bankrupt. Employers forced to reduce the hours of their workers are now known
by a telling nickname: "The 29ers."
Yet it is not just the food service industry that is hurting. The 22,000-member United Union of Roofers, Waterproofers and Allied Workers International who initially supported the healthcare law, is now calling for its repeal. The union contends the law will "jeopardize our multi-employer health plans, have the potential to cause a loss of work for our members, create an unfair bidding advantage for those contractors who do not provide health coverage to their workers, and in the worst case, may cause our members and their families to lose the benefits they currently enjoy as participants in multi-employer health plans."
Another factor weighing down the economy is weak corporate sales growth. While company earnings haves been robust, sales have been dismal. According to Zacks Investment Research, 38 percent of the 271 S&P 500 companies reporting as of last Friday showed an overall sales decline of 1.45 percent. "The loss of momentum in the U.S. economy has been palpable, but what looks to be a soft patch in yet another 2 percent year for real economic growth now has the potential to morph into something more painful," said RBC Capital Markets economists Tom Porcelli and Jacob Oubina in a report.
The report then spelled out where that pain would be felt. "What is important to consider on the back of these results is that employment tends to become the victim of a disappointing revenue backdrop," it stated. "In other words, headcount tends to become the focus in any effort to extract savings and boost bottom line results."
The bigger picture is even clearer. Despite the populist facade erected by this administration, Wall Street is doing record level business, even as Main Street remains mired uneconomic stagnation and enduring unemployment.
Friday, the "official" unemployment rate for April will be revealed. Measured within the context the smallest labor participation rate since 1979 it will also be irrelevant. Millions of Americans will remain victimized by a reprisal of the Keynesian economic philosophy that turned the 1930s into a lost decade of misery, desperation and despair.
"We have tried spending money. We are spending more than we have ever spent before and it does not work….we have just as much unemployment as when we started… And an enormous debt to boot." Those words were spoken by the Treasury Secretary. Not Obama’s Treasury Secretary, Tim Geithner. FDR’s Treasury Secretary, Henry Morgenthau—in 1939. Thus, the "new normal" is a lot older than most Americans realize.
Arnold was an op-ed columist with the NY Post for eight years, currently writing for JewishWorldReview.com and FrontPageMag.com. Arnold can be reached at: atahlert@comcast.net
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Also See:
Food Shortage, Then Anarchy! 
 25 July 2012
http://arcticcompass.blogspot.ca/2012/07/food-shortage-then-anarchy.html
and
Disasters Happen! Be Prepared!
(Part 1)
31 March 2011
http://arcticcompass.blogspot.ca/2011/03/disasters-happen-be-prepared.html
and
(Part 2)
30 August 2012
http://arcticcompass.blogspot.ca/2012/08/disasters-happen-be-prepared-part-2.html
and
The Collapse of the Entire World’s Economic System has Begun!
18 March 2013
http://arcticcompass.blogspot.ca/2013/03/the-collapse-of-entire-worlds-economic.html
and
Economic Collapse! How Did We Get Here?
(Part 2)
28 September 2013
and
(Part 3)
23 January 2014
http://arcticcompass.blogspot.ca/2014/01/economic-collapse-how-did-we-get-here.html
and
Are We Facing a Global Financial Crisis?
31 May 2011
http://arcticcompass.blogspot.ca/2011/05/are-we-facing-global-financial-crisis.html
and
Financial Crunch! Economic Collapse!
(Part 1)

31 July 2008
http://arcticcompass.blogspot.ca/2008/07/financial-crunch-economic-collapse.html
and
(Part 2)
20 November 2008
http://arcticcompass.blogspot.ca/2008/11/financial-crunch-economic-collapse-part.html
and
(Part 3)
25 January 2009
http://arcticcompass.blogspot.ca/2009/01/financial-crunch-economic-collapse-part.html
and
(Part 4)
17 April 2009
http://arcticcompass.blogspot.ca/2009/04/financial-crunch-economic-collapse-part.html
and
(Part 5)
23 June 2009
http://arcticcompass.blogspot.ca/2009/06/financial-crunch-economic-collapse-part.html
and
(Part 6)
23 August 2009
http://arcticcompass.blogspot.ca/2009/08/financial-crunch-economic-collapse-part.html
and
(Part 7)
30 November 2009
http://arcticcompass.blogspot.ca/2009/11/xxxx.html
and
(Part 8)
23 February 2010
http://arcticcompass.blogspot.ca/2010/02/debt-dynamite-dominoes-coming-financial.html
and
(Part 9)
28 August 2010
http://arcticcompass.blogspot.ca/2010/08/financial-crunch-economic-collapse-part.html
and
(Part 10)
13 January 2011
http://arcticcompass.blogspot.ca/2011/01/financial-crunch-economic-collapse-part.html
and
(Part 11)
29 April 2011
http://arcticcompass.blogspot.ca/2011/04/financial-crunch-economic-collapse-part.html
and
(Part 12)
28 July 2011
http://arcticcompass.blogspot.ca/2011/07/financial-crunch-economic-collapse-part.html
and
(Part 13)
04 April 2012
(Part 15)
02 November 2012
and
Recession? ... Depression? ... What is Going On?
(Part 1)
06 October 2008
(Part 2)
02 February 2009
and
(Part 3)
19 April 2009
and
(Part 4)
02 August 2009
and
(Part 5)
17 September 2010
and
(Part 6)
17 September 2010
and
Jobs, Jobs, Where are the Jobs?
(Part 1)
20 April 2010
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