Gas Prices Indicate Economic Collapse

In Sept. of 2008, gas prices reached a median record high of $3.84 per gallon, peaking just before the economic crash and credit crisis in the economy and banking system. Two years later, as the recession hit full steam in the U.S., and oil prices dropped down to $35 a barrel, the price of a gallon of gas had fallen back under $2.50.

However, since reaching that bottom in 2010, gas prices across the country have been climbing steadily higher, even as fuel consumption by most Americans has remained low. Now, just two years later, these same economic indicators are mirroring those of 2008 , and gas prices on Sept. 1 are once again nearing record highs, foreshadowing a potential new economic crash.

AAA said the national average price of gasoline was $3.83 per gallon Saturday, a decline from Friday, but still a record high for a Labor Day weekend.

The record Labor Day weekend pump price is a sharp increase from the previous high for the holiday, which was $3.67 per gallon in 2008, the year crude oil prices set a record high in July above $147 per barrel.

CNN reported Saturday that the average price of gasoline jumped 9.4 percent in August, the largest monthly climb in more than three years. - UPI

On Friday, oil prices, along with other commodities, rose on the outlook given by Fed Chairman Ben Bernanke following his speech in Jackson Hole, Wyoming. In Aug. of 2008, Chairman Bernanke gave a similar speech regarding systematic risk, that would become a self-fulfilling prophecy for the economy a little over a month later.

Contrary to government, or Federal Reserve analysis, the economic landscape, both in Europe, and in the U.S., has not improved beyond minor fluctuations upward after vast amounts of quantitative easing programs. GDP projections for 2012 have increasingly been lowered, with estimates by Goldman Sachs and other investment banks focusing on numbers below 2% growth. Consumer spending, which makes up nearly 75% of our entire GDP, is falling so much that GM had to shutdown some automobile plants due to excessive inventories, and lowered demand.

There are a number of legitimate reasons for gas prices being higher going into labor day weekend, especially with recent fires occurring at two refineries, and oil drilling shutdowns due to Hurricane Isaac, however, these events do not account for the decrease in consumption by many Americans out of work, and those taking fewer trips on the nation's highways. Thus the primary catalyst for near record gas prices is inflation.

The Federal Reserve, along with Congress, spent a vast amount of resources staving off complete economic collapse in 2008. Yet four years later, neither agency has these tools available in case of another market crash since interest rates have remained near zero for over four years, and the national debt has increased to where America now owes more than our annual GDP.

With bank runs taking place all across Europe, and analysts like Peter Schiff and Jim Rogers projecting economic collapse occurring very soon, the entire global economic system stands on the edge of a cliff, and the lifeblood of all industry, that of oil and gasoline, are foreshadowing a repeat of the economic crash that encompassed the West just four years ago.

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

2013 Great Depression: America Heading For Economic Collapse

Fear continues to grow in America. Drought, soaring food prices, unemployment, big banks up to their same old greed-driven tricks, threat of war with Iran, and degrading loss of liberty through legistation such as the Patriot Act, SOPA, and the NDAA all add to a comprehensively negative outlook for the future. However, of the multitude of real and perceived catasrophies that could inevitably fall upon the American people, one primary fear outweighs all the others... that of an economic collapse.

Here is the list of Feared Catastrophies as measured in a survey by the Ecohealth Alliance, and their percentage of importance.

• Economic Collapse: 46%
• Natural Disaster: 46%
• Terrorist Attack: 44%
• Global Disease Outbreak: 33%
• Global War: 27%
• Nuclear Accident: 25%
• Global Warming: 22%
• Fuel Shortage: 15%
• Cyber War: 8%
• Famine: 8%
• Oil Spill: 6%
• Industrial Accident: 5% 

Overwhelmingly, the people's trust in a secure economy, and the leaders who administer economic policies, is failing. Nearly two-thirds of those polled fear a complete economic collapse based on the news and evidence provided to them in both the media, and financial experiences such as unemployment, higher retail prices, and lifestyle changes such as losing a home, or falling home values.

Besides polling, the raw economic data also suggests an economic collapse as being of high probability in the near or medium term future. Global banks. which make up the primary central bank shareholders for governments in the west, have all fallen in value, been downgraded by ratings agencies, and have experienced liquidity problems that have forced them to the brink of insolvency at one point or another in the past three years.

• BofA: -60.38%
• Citi: -44.76%
• Goldman Sachs: -46.41%
• JPMorgan: -23.03%
• Morgan Stanley: -45.24%
• RBS: -50%
• Barclays: -34.32%
• Lloyds: -63.02%
• UBS: -29.33%
• Deutsche Bank: -28,55%
• Crédit Agricole: -56.04%
• BNP Paribas: -37.67%
• Société Générale: -59.57%

Lastly, the American people have had the opportunity to see what an economic collapse in nations can do to the people, and the policies of governments in both Greece, and in several Middle Eastern countries in 2011. When the solvency of a government fails, and international monetary agencies such as the ECB and IMF attempt to impose austerity measures such as added taxation, or cuts in public safety nets, businesses begin to fail in large numbers, and people grow the internal fortitude to lash out at the system.

If you want to see what happens when a collapse happens and a depression begins, just look at what is happening in Greece....

• 100,000 businesses have been closed since the beginning of the crisis.
• About a third of the nation is now living in poverty.
• The unemployment rate for those under the age of 24 is 39%.
• The number of suicides has increased by 40% in the past year.
• Thefts and burglaries have doubled.
• Things have gotten so bad that hundreds of families in Greece are abandoning their children.

Little has changed in the economic outlook for the United States in the past year, the growing fears of an economic collapse remain very high in the minds and fears of many Americans. In the past 10 years, millions of jobs, and hundreds of thousands of businesses have failed, or move overseas, and governments on a local and Federal level have borrowed themselves into insolvency. With more people expected to fall outside of the safety nets of unemployment, and the ability of their legislators to solve the economic problems hanging over the country like a Damocles Sword, the remaining avenue for Americans will be the streets, not the ballot box if their primary fear of economic collapse does take place.

Gov't Explains 750 Million Rounds of Ammunition

I'm sure you've read about the multiple agencies of the federal government have ordered and are stockpiling 750 million rounds of ammunition, especially hollow point bullets. Why? Well, the official explanation does nothing but raise more questions.

Our government states that the hollow point bullets it has procured are "standard issue" and that they are used to train security agents used by each of the various federal agencies.

However, according to retired Maj. Gen. Jerry Curry, a decorated Army war veteran, the Feds' explanation about the bullets fails to pass the smell test.

Yeah, right.  As every gun owner knows if they are serious about developing and maintaining their shooting skills, the type of bullets used for practice at the firing range are normally different from the ammunition one would use when getting the firearm set to be used in the event of a home invasion or other situations in which one's life is in mortal danger.

Firing range bullets are much less expensive and are not designed for the day to day use of the gun for maximum self protection. One uses the more expensive variety, such as hollow point bullets, for real-life danger.

Something is wrong. Most citizens are likely unaware that such ammo is not used for practice and will accept the government's explanation at face value. This is in all likelihood what the Feds are counting on.

it became clear that the our government has not been honest with the public concerning the current mass stockpiling of ammunition.

Hollow point bullets are so lethal that the Geneva Convention does not allow their use on the battle field in time of war. Hollow point bullets don’t just stop or hurt people, they penetrate the body, spread out, fragment and cause maximum damage to the body’s organs. Death often follows.

During the Iraq War the U.S. military used 70 million rounds of ammunition per year. Compare that with the 750 million rounds of hollow point bullets that the Department of Homeland Security (DHS) ordered in March. And then it further ordered another 750 million rounds of various types of ammunition, some of which can penetrate walls. 

This is enough ammunition to empty five rounds into the body of every living American citizen. Is this something we and the Congress should be concerned about? What’s the plan that requires so many dead Americans, even during times of civil unrest? Has Congress and the Administration vetted the plan in public.

I fear that Congress won’t take these ammunition purchases seriously until they are all led from Capitol Hill in handcuffs. Why buy all this ammunition unless you plan to use it. Unknown to Congress, Does DHS plan to declare war on some country? Shouldn’t Congress hold hearings on why the Administration is stockpiling this ammunition all across the nation? How will it be used; what are the Administration’s plans?

The other factor that is raising significant concerns about the ammo purchases is that the U.S. military and various law enforcement agencies at both the federal and local levels have enough fire power to adequately respond to any emergency or threat. But DHS now has enough ammo on its own to kill every single American citizen plus potential invaders such as Syrians, Iranians, or Mexicans.

You have to ask yourself: Why? And for what purpose?

Special thanks to Anthony Martin. Please visit his ministry at  Martin Christian Ministries.

PSYOP Missions Target US Citizens

An American military document just uncovered appears to detail an US Army plan that calls for detaining “political activists” at re-education camps staffed by military-hired “PSYOP officers” in both America and abroad.

The website Infowars.com has unearthed the smoking gun, a copy of a United States military manual entitled FM 3-39.40 Internment and Resettlement Operations, which appears to offer Defense Department insiders instructions on dealing with the imprisonment of anyone considered an enemy to the American way of life and how to go about indoctrination them with an “appreciation of US policies and actions” through psychological warfare.

The PDF made available is dated February 2010 but has only now been leaked online. A copy of the document has been uploaded to the website PublicIntelligence.net for viewing, and additionally a version appears to be hosted on the US Military’s Doctrine and Training Publications page at armypubs.us.army.mil, although access to papers published there are unavailable to those without the Pentagon’s authorization, therefore making it impossible to verify the authenticity of the manual at this time. The military site that appears to host a copy has also implemented security measures on its servers that it cautions visitors are “not for your personal benefit or privacy.”

Further, the title page of the manual warns that the material contained in its 326 pages is be distributed to US Defense Department and its contractors only, and that must be “destroy[ed] by any method that will prevent disclosure of contents or construction of the document.”

“This manual addresses I/R [Internment and Resettlement] operations across the spectrum of conflict, specifically the doctrinal paradigm shift from traditional enemy prisoner of war (EPW) operations to the broader and more inclusive requirements of detainee operations,” the paper’s authors explain in the first paragraph of the documents preface. From there, it goes on to explain that the methods of psychological warfare and brainwashing of persons applies to “US military prisoners, and multiple categories of detainees (civilian internees [CIs], retained personnel [RP], and enemy combatants), while resettlement operations are focused on multiple categories of dislocated civilians (DCs).”

The manual continues by describing categories of personnel whom are certain guidelines of the manual apply. A detainee, for example, is any person captured by an armed force, but does not include personnel held for law enforcement purposes — except where the US is the occupying power. Civilian internees are described as anyone “interned during armed conflict, occupation, or other military operation for security reasons, for protection, or because he or she committed an offense against the detaining power.” 

“An adaptive enemy will manipulate populations that are hostile to US intent by instigating mass civil disobedience, directing criminal activity, masking their operations in urban and other complex terrain, maintaining an indistinguishable presence through cultural anonymity and actively seeking the raditional sanctuary of protected areas as defined by the rules of land warfare,” reads the paper. “Commanders will use technology and conduct police intelligence operations to influence and control populations, evacuate detainees and, conclusively, transition rehabilitative and reconciliation operations to other functional agencies.”

Fifty-six pages into the manual, its authors explain the role of psychological operations officers regarding internment and resettlement, and explain that they will be responsible for developing methods designed “to pacify and acclimate detainees or DCs to accept U.S. I/R facility authority and regulations.” PSYOP officers, the manual adds, identify “malcontents, trained agitators, and political leaders within the facility who may try to organize resistance or create disturbances.” The manual also demands that the PSYOP officers overseeing the detainment camps identify “political activists” for indoctrination.

False Unemployment Numbers

The US Labor Department declared that the unemployment rate has dropped to 8.2 percent. While economists applaud the latest news, the reality is improvement comes only after 3 million jobless Americans are unaccounted for. 

While job creation exceeded expectations for January, those experiencing long-term unemployment — those jobless for longer than six months, that is — remains at a record high. 

In a new report from the Pew Charitable Trusts, it’s revealed that those suffering the longest from the unemployment epidemic exceed any monthly statistic dating back to the World War II. The Labor Department figures that 5.5 million would-be workers have been without employment for 27 weeks or longer, accounting for around 42.9 percent of the total tally of unemployed Americans.

The consulting firm Hamilton Place Strategies based out of Washington estimates that as many as 3 million additional unemployed workers have been without jobs for just as long but are not taken into consideration by the US government. For those, the Department of Labor simply stops counting them. 

The government has also identified around 2.8 million Americans “marginally attached” to the job market in January. Per their own definition, that accounts for those who want to work and have looked for working during the last year but have not concentrated their efforts on the job hunt during the last month. 

They are also not accounted for in the Labor Department’s unemployment figure.

Speaking before the US House of Representatives Committee on the Budget, Federal Reserve Chairman Ben Bernanke addressed the issue. He admitted that the US economy “has been gradually recovering from the recent deep recession,” but called long-term unemployment figures still “particularly troubling.”

“More than 40 percent of the unemployed have been jobless for more than six months, roughly double the fraction during the economic expansion of the previous decade,” explained Bernanke. “We still have a long way to go before the labor market can be said to be operating normally.”

Easy for Mr. Bernake to say - he has a job.

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.

Corn Shortage: The Next Big Crisis

By now you know we're experiencing the worst drought in over 50 years which has sent corn prices soaring to record highs. With over 60% of the US in the midst of drought conditions, the USDA has said that 50% of America's corn crop will be in poor to very poor condition.

With corn supplies are at their lowest levels in 17 years and with corn being such a large part of the industrial food chain, we have the 'perfect storm' for serious food shortages.

Corn feeds the chickens that provide us with eggs. Corn feeds the cows that provide us with beef and dairy products. Nearly all soda contain high fructose corn syrup. Even beer is fermented from glucose that originated in corn.

Corn is in margarine, coffee sweetener, icing, gravy, hot sauce, mayonnaise, soups, cake mixes, snacks foods, salad dressings, frozen waffles, and on and on. If you eat produce in any form, it’s likely got corn in or on it: corn was in the pesticide, the cardboard in which it was shipped, even the wax applied to its surface to give it a sheen.

Corn is in toothpaste, disposable diapers, matches, trash bags, disposable batteries, make up, even magazines covers.

Corn in approximately 25% of all items located in your local grocery store. And of course, all the fuel for our cars and trucks contain ethanol which is made from, you guessed it, corn.

And the situation is equally bad for soybeans, the second largest produced crop in the US: today inventories are at their lowest levels in 32 years. And the current drought has resulted in 39% of this year’s soybean crop being in poor to very poor condition.

Forget about Europe and the imminent global financial collaspe, the corn (and soybean) shortages is the REAL CRISIS.

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.