Prepare For The Coming Economic Collapse

Federal Reserve Chairman Ben Bernanke is not going to save our economy.  He supposedly didn't see the last financial crisis coming, and even after things started falling apart he continued to insist that that everything was fine. Housing prices would not go down and that we would not have a recession.

Wrong. We had the worst housing crash and the worst recession since the Great Depression of the 1930s.

But still millions of Americans are trusting him to save us this time around. It didn't happen in 2008 and it's not going to happen now.

One of the biggest flaws in our financial system is with the Federal Reserve system itself. The U.S. government is 16 trillion dollars in debt is because the system is designed to create gigantic amounts of government debt. And even if we replaced every corrupt and/or incompetent politician our economic problems would still persist.

Most Americans are pinning their hopes for an economic turnaround on the upcoming election, but the truth is that neither Obama or Romney has a plan that will fix it. The total amount of all debt in the United States has gone from less than 2 trillion dollars to almost 55 trillion dollars in 40 years...and 8 Presidents. Economic collapse is going to happen no which political party is in power.

It is very probable you could wake up one day soon and discover that because Ben Bernanke has printed trillions upon trillions of new dollars to "fix" the financial system your life savings have been devalued by 50 percent.

That may sound extreme but this is what millions of Europeans are extremely worried about right now. In Spain there has been a full-blown run on the banks. In July alone, 94 billion dollars was pulled out of the Spanish banking system - the equivalent of 7 percent of Spain's GDP...in one month!

Time is running out.  In fact, we might not have much time left at all before the next major downturn. September will be a pivotal month. Be ready.

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Economic Collapse Will Happen No Matter Who Wins Election

Our incumbent President says that things are getting better, jobs are being created, and America is on the road to recovery. His opponent, Governor Mitt Romney, says the opposite, but claims he has a plan that will turn things around and bring prosperity back.

According to free market proponent Peter Schiff, it doesn’t matter who wins, because the crunch is coming – and it’s going to become apparent during the next President’s administration.

He [Mitt Romney] is not going to prevent the crisis. 

We’re headed for a real economic collapse regardless of who wins this election. 

The government has over-promised. There are gigantic Ponzi schemes. They do not work. Meanwhile, the only reason the economy has not collapsed is because interest rates are artificially low. the Fed cannot keep interest rates low indefinitely, and when interest rates go up the party is over. And then we’re not going to have a choice anymore.

We’re going to have to finally deal with these problems or destroy our currency, and that is a real economic crisis that is going to make 2008 look like a walk in the park. 

[The crunch] is going to happen in the next administration.

We can’t fix these problems by repealing Obamacare and cutting taxes. We have structural problems that underline the U.S. economy that are very deep that require real free market reforms, and unfortunately none of the major candidates are even talking about that right now.

Peter Schiff was ahead of the collapse of 2008, warning clients of his firm Euro Pacific Capital that global equities would crash as a result of fraud, unservicable debt levels and a failed monetary policy. After the crash he, like many others, urged Congress to address the fundamental problems within the US economy, including fiscal, monetary and economic policy reform.

He and the American citizenry were ignored as Washington not only didn’t listen, but engaged in exactly the opposite of what should have been done.

Four years on we’re worse off than ever before, with more money having been borrowed from foreign creditors and stolen by the government from taxpayers under the guise of bailing out essential financial and manufacturing sectors of the global economy.

We’re in too deep folks. At this point, it cannot be stopped.

Trillions of dollars are owed, and as a country we have no way to make good on that debt.

Confidence in the US dollar will soon be lost, and when that happens we will experience a collapse in the United States and the global economy unlike any that has ever been witnessed in the history of the world.

Historians will write about this era for centuries to come, just as they write of Rome today.

Mac Slavo

Hedge Funds Betting On Collapse

Hedge funds are betting on a disaster hitting the financial markets within the next several quarters, with managers holding onto historic levels of cash.

That so-called dry powder gives them the cash they need to quickly jump in if markets sell off, according to numerous hedge fund managers and industry consultants.

”Most hedge funds I see are carrying lower market exposure than I’ve seen in some time,” said Brad Balter, founder of investment advisory firm Balter Capital Management. “This is not to say they are net short. They simply want to conserve their buying power and be ready for major opportunity sets that may arise.”Many are anticipating that Europe’s debt crisis, the U.S. fiscal cliff, or the slowdown in China will cause a 2008-like reaction around the globe, when stocks swiftly sold off in the wake of the financial crisis.

But betting on a downturn in this environment is a risky play.

The latest Fed minutes showed central bankers leaning toward more stimulus. Should Fed chairman Ben Bernanke suggest another round of bond buying next week in Jackson Hole, Wyo., stocks could swiftly move higher. On top of that, Greece is still in limbo and talk of the European Central Bank intervening in the bond market makes predictions about an end-game for Europe nearly impossible.

"I have not seen the level of uncertainty this high for a long long time," said Komal Sri-Kumar, chief global strategist at TCW . "If you were a hedge fund and you didn't know when the correction would come but were concerned, it would makes sense to keep cash available."
Because of this defensive posture, hedge funds have missed out on the 2012 stock rally. The S&P 500 (SPX) has gained 11% through July 31, while Morningstar's hedge fund index of nearly 1,000 funds gained just 3.7%.

"They could've picked stocks poorly, but with these returns, it looks more like they're not even close to being fully invested in the market," said Nadia Papagiannis, Morningstar's director of alternate fund research.

The SEC only requires hedge funds to disclose stocks they own, and not how much cash they're holding or what stocks they're betting against.
Holding onto cash is actually one of the boldest moves a hedge fund can make. Hedge fund managers get a 2% fee for all the money they manage, so investors quickly grow irritated with managers who sit and wait. "It's a natural reaction to say why am I paying you to hold cash," said Daniel Celeghin, partner at hedge fund consulting firm Casey, Quirk & Associates.

Some funds have outperformed the S&P. Among them: Tiger Global Management, which focused on technology stocks and counts Apple as its top holding, is up more than 20% as of July 31, according to a source with knowledge of the fund's returns. And the flagship hedge fund at Citadel run by billionaire Ken Griffin is up 11.5% through July 31, according to sources familiar with its returns.

Hedge funds betting on the mortgage market and those focused on financials have also scored big in 2012. Bay Pond Partners, owned by asset manager Wellington Partners, is up 11%, largely through its investments in bank stocks, said two sources. Two key funds at SPM, a $3.4 billion fund focused on residential mortgages, are up 13.4% and 11.3% respectively. Another mortgage focused hedge fund, Metacapital, is up 25% through July.

Despite the industry's overall recent poor performance, investors haven't shied away. In the first quarter of 2012, the hedge fund industry held a record $2.13 trillion of assets, according to Hedge Fund Research. During the second quarter, investors pulled back slightly, leaving them with $2.10 trillion.

Since the financial crisis, investors have been drawn to hedge funds because they have the ability to bet on all types of markets and don't simply expect stocks to move up. "The thought now is that I need to have at least some of my capital with managers who have the flexibility and skill set to take advantage of unpredictable sideways markets," said Casey, Quirk & Associates' Celeghin.

Governments And Big Banks Preparing For Financial Collapse

All over the world, governments and big banks are preparing for imminent financial collapse. Hushed conversations are taking place in corporate boardrooms and in the halls of power in places such as Washington D.C. and London. The clues are all around us. 


It is now known that the U.S. government has been secretly directing five of the biggest banks in America "to develop plans for staving off collapse" since 2010.  

U.S. regulators directed five of the country's biggest banks, including Bank of America Corp and Goldman Sachs Group Inc, to develop plans for staving off collapse if they faced serious problems, emphasizing that the banks could not count on government help.

The two-year-old program, which has been largely secret until now, is in addition to the "living wills" the banks crafted to help regulators dismantle them if they actually do fail. It shows how hard regulators are working to ensure that banks have plans for worst-case scenarios and can act rationally in times of distress.

When combined with the dozens of other clues of imminent collapse, a very troubling picture begins to emerge.  Over the past 12 months, hundreds of banking executives have been resigning, corporate insiders have been selling off enormous amounts of stock, and a significant number of Wall Street bankers have been shopping for properties in rural areas this summer to escape urban war zones.


The U.S. government has been stockpiling food and ammunition. President Obama has signed executive orders that would potentially be implemented in the event of a major meltdown of society.  

So what does all of this mean?  That a financial collapse is coming. Over the past 40 years, the total amount of all debt in the United States has grown from about 2 trillion dollars to nearly 55 trillion dollars.  That is a recipe for financial armageddon, and it is inevitable that this gigantic bubble of debt is going to burst at some point.


The situation in Europe continues to get worse and worse.  The authorities in Europe have come out with "solution" after "solution", and yet unemployment continues to skyrocket and economic conditions in the EU have deteriorated very steadily over the past 12 months.

Of course the historic drought that is ravaging food production in the United States this summer is not helping matters either.  Another summer or two like this one and we could be looking at a return of Dust Bowl conditions.

Our resources are dwindling, war in the Middle East could erupt at any moment and our planet is becoming increasingly unstable.  The following is from a recent article by Paul B. Farrell on Marketwatch.com....

Fasten your seat belts, soon we’ll all be shocked out of denial. Some unpredictable black swan. A global wake-up call will trigger the Pentagon’s prediction in Fortune a decade ago at the launch of the Iraq War: “By 2020 ... an ancient pattern of desperate, all-out wars over food, water, and energy supplies is emerging ... warfare defining human life.”

A "perfect storm" is brewing. Prepare yourself.

More Countries Remove Protection from Military

Germany has became the latest country to remove protections for civilian populations from Military intervention in domestic conflicts. In a new court ruling, which repealed laws created out of the Nazi era in Germany, the government can now use the military against citizens in extreme cases, joining the U.S. and other nation states who have removed the dividing line between civilian and military policing.


In America, Northcom was created shortly after 9/11 to be an military command dedicated to threats within the homeland, and instituted a discontinuation of Posse Comitatus, which had separated civilian police from military use on citizens since the end of the Civil War. Since its inception in 2002, the Federal government has expanded its influence over Americans by creating the Department of Homeland Security, and the militarization of many bureaucratic agencies, with the majority of increases taking effect since the banking crisis in 2008.


In 2010, the Federal Reserve secretly ordered five major U.S. banks to develop plans in case of an economic and banking collapse. This order coincides with several well respected economists declaring that a major economic collapse is inevitable, and could come within months.


Over the past six months, our government has been stockpiling nearly a billion rounds of ammunition for agencies that do not have a military. This growing supply of bullets questions the purpose and plan for militarizing domestic economic agencies outside their scope and mission.


Our government, along with our allies, Britain, and Germany, have increased their military and surveillance presence on their own civilian populations, even as potential and actual terror plots have decreased. The growth in domestic militarization increased due to the 2008 banking crisis and not due an increase in terror events.


The potential for economic collapse, civil unrest, revolution, and societal collapse are increasing exponentially across the West, and in other global economies. Since the credit crisis of 2008, several nations have removed longstanding civilian protections from military policing of domestic events, with Germany now being the newest country to overrule decades long legislation that assured protections for their citizens in domestic disputes.