We are on the verge of war!
A lot of people have been speaking of the possibility of a hot war between the west and China and Russia. This is possible as both sides have mutually assured destructive plans to blow each other to pieces, but I think we are very much more likely to see a Financial War than Nuclear attacks. We are even more likely to see Civil Wars before a global destructive war.
As a matter of fact we are seeing a Financial War going on right now globally. Between countries desperately trying to keep a cheap currency in order to have a surplus in their trade budget as today’s world has become a global competitive market place. The problem with what is called a currency war is that now you are also attacking your own constituents! The people that live in that country who is now cheapening their currency will suffer as inflation the newly created money made to cheapen the currency will chase all kinds of assets and commodities and prices will go up and as interest rates will continue to be low the more money will be created out of thin air and the more and more those hard earned money you have become less worth.
Japan is one of the biggest competitors in the race to 0 around the world monetary systems. In Japan the Print to cheapen currency policy known as Abenomics are failing as exports grew very little and the people of Japan are ending up buying assets that hold their value against FIAT currencies and most people loose as they have their life savings in devalued Yen. What people doesn’t seem to understand is that we are at war today against the global banking cartel. They are destroying our wealth by making money creation cheap by near 0% interest and printing currency. If you study the world around you it becomes apparent that more and more families are struggling as their wealth is getting destroyed or played with by bankers in their investment accounts. Most people are not seeing any raises in their salaries and if you don’t increase your salary by the same number as the inflation and we are not talking the CPI(Consumer Price Index) a fancy economic word for inflation. We can account for the CPI, but we also need to earn on top of whatever percent it is more as the CPI is highly manipulated and most things you buy is not calculated into the CPI by default.
As we are seeing our wealth destroyed if we hold it in paper FIAT, there are far more and bigger dangers lurking in the Shadows of finance and Military plans that can destroy our life’s and wealth a lot faster.
Financial Warfare
As we have our wealth eradicated by the failed Central Bankers around the world there are way bigger problems ahead. Derivatives, Bonds, Stocks, Gold, Silver, Bitcoin and other assets are both positive and negative tools that is in use by bankers, every day people and in military plans as a way to save a country, your wealth or destroy a country.
The inventions of derivatives was talked about in the financial sector as a safer financial world, but as seen in 2008 the leverage used in these types of investments can be as Warren Buffet says Weapons of Mass Financial Destruction.
China
Derivatives lurks in what is called the Shadow Banking system which is the banks way of using a Ponzi Scheme(Today’s Monetary System) to create a ponzi scheme on top of that. They use the big accounting firms like KPMG and others to hide their “Books” their real assets and liabilities as they invest in Shadow Banking Derivatives such as CDO(Collateralized Debt Obligations), CLO(Collateralized Loan Obligations) and MBS(Mortgage Backed Securities). These securities are highly leveraged full of bad assets and ready to blow at any moment. When they blow the Too Big To Fail banks sits ready to get Bailed Out or Bailed In! The CDO’s are very popular in China as the corrupt State Owned Enterprises are using these bad investment techniques from the banks to create malinvestment through giving them the power to produce steel, copper and concrete while the corrupt government with banks invests in infrastructure and building cities that never might get inhabited as there are no one to move into them, but the SOE’s benefit, the shadow banking industry in China wins and the $3T in CDO, CLO and MBS investments that could blow up as the ponzi scheme comes down when there is no more money left to feed it! If this unravels it could send ripples into the global economy way bigger than the $100B+ CDO crash of 2008 in the Western banking system.
US
Our Economic and Monetary system have been totally demolished since 1971. The US is in the worst shape as they are supposed back the world with their continuously failing policies. After Obama took office in 2008 as the melt down on Wall street and the global economy was apparent he made some very bad decisions with his team to bail out wall street’s bad investment programs after they brought down the world economy with CDO’s as talked about above. Some people say the reason why it happened is that Obama had the biggest amount of Wall Street donors in history of any president and he were willing to do whatever it takes to keep them happy.
After the 2008 an economic recovery is long gone, the US government shut down, the world is moving away from US dollars as world reserve currency and the never ending sink hole of US Government unfunded liabilities now topping over $17.5T+. This number will increase faster and faster as the US continue to spend way more money than they have.
The US Federal Reserve the Central Bank of the US has also failed as their policies of 0% interest and Quantitative Easing or the buying of bad and toxic assets from the US banks in trouble giving them new cash to go out and do the same as they did in the first place to get into the toxic assets and then the FED takes these bad assets and put it on it’s own books.
The problem is how will they exit? Thinking about investment. One of the first and most important question an investor should ask himself is how do I exit? Well how will the FED exit as who would like to buy assets that have failed and are under performing? The US have created to gigantic bubbles of epic proportions still building up today. 1. The Stock Market and 2. US Housing markets. There are no fundamentals that say stock prices or housing prices should go up, but the underlying cause is of course leverage and debt made available from the FED to Wall Street and friends. The new Wall street slum lords making it impossible for people to fix their houses as they can’t contact their land lord or how about the massive rise in margin debt following the US Stock exchanges?
Wait there is more. I said fundamentals are not there. Monetary Velocity is at record lows actually lower than the depression in the late 20’s early 30’s. Consumption is falling rapidly as people have no money to spend and the US Economy who is 71% consumption has put many retailers into either bankruptcy or to cut jobs or stores all over the country. Also the so called economists are using faulty numbers where they wont even count in people who have stopped looking for job as unemployed. We live in an illusion and the bad derivatives who blew up the US are in full force coming back as the same Wall Street Ponzi schemes continue.
EU
As I was writing this blog it became news that the ECB the European Central Bank has issued negative interest rates. Negative interest rates means that they have made a war against the savers as suddenly when you borrow the bank your money they charge you an interest and on top of that they can do whatever they want with that money. The European Union also have it’s own plans and the the Forth Reich to prevent wars in-between countries in Europe can become so successful that they can take over where the US failed?
The EU also have strong ties to making their currency a global reserve currency and they are positioned better than the US. But no FIAT Currency in it’s current states can survive the coming global FIAT default carnage as Central Banks world wide print themselves to death as people loose total faith in their failing system!
Financial War plans?
So what is happening now financially war vice? Have you heard about sanctions and capital controls as Russia, Iran, Cuba, Iraq, North Korea and a couple more are seeing restrictions on the use of US Dollars for their trade as the US only wants people to cooperate with them on their terms. Capital Controls and Embargoes are set in place to hurt economies. They makes it hard for you to move money around and they slow down your economy, can create massive inflation and forces you to think out side the dollar world reserve box. The world around the west are getting tired of getting bullied by the US Empire and are moving away from the Dollar.
There are 1000’s of different trade deals since 2008 that have moved countries away from using US Dollars to settle debts, do trade or investments. The US is cheapening it’s dollar to keep it’s “Partners” in check and are letting wall street interests steal the wealth of whole nations having US Dollars as reserve currency.
Financial war what can countries do and are doing to protect themselves and to attack back?
I don’t know if you remember the islands in the South China Sea dispute between Japan and China? It was a lot of war mongering and the US was not sure which side to be on as they were in a double whammy. China and Japan are the biggest holders of US debt aka. bonds. China holds a whooping $3T worth and Japan about $1T. If these countries went to war then who would the US back? Both countries if dumping their US dollar reserves would be capable to sink the US and the world economy with it. One strength that China had that the Japan doesn’t have is their Gold holding that unofficially can be as high as 5-8000 tonnes. Gold has real value and cannot be devalued. This put China way ahead of Japan which would have their reserves dwindle to near 0 which is the real value of any Fiat currency.
Also by buying big shares in companies world wide rouge Hedge Funds could also pose a threat to any economy as they could use derivatives and their positions in any companies to explode an economy. There are way many more ways states protect themselves. Ex. when Iranian’s had a halt in the possibility to use US dollars they started settling oil trade with Turkey in gold.
It sounds like we the people are put in the middle of war mongering psychopathy that are craving power and might just like Kings and Queens in the old days.
What can we do to protect ourselves?
3 words Gold, Silver and Bitcoin. How can these three protect us or even work as financial militia warfare back against the centrally planned wealth stealing economy?
These three have been mentioned a lot lately together and I believe that a combination of this 3 can help you a lot when the global carnage comes due. Another good commodity to have during the coming global monetary system meltdown is food. Food might be needed as transportation and other systems together with banks might shut down for weeks as a global reset button will be hit by elites as explained above.
Food has been shown to be a great asset as people might starve to death during cities lack of access to food as supermarkets rely on a 3 day supply only.
Gold and Silver protects your wealth as FIAT paper currencies are printed by greedy elites. Elites use gold and silver to protect against paper failures and this has happened 1000’s of times throughout history, but it is funny how we forget. During the 1900’s about 50-100 fiat currencies failed got devalued or replaced or people stopped using them as they lacked trust in them. It is all about trust, but in today’s case and many times before government law forces us to use the bankers failed system who only enriches the government and the banks.
Bitcoin should also be mentioned here as it is a currency without any real tangible value, but it has a limited supply which cannot be increased. This is great! As Bitcoins will not really loose their value unless we choose to not use them. Bitcoins also eliminates today’s crony system as there are no need for banks or governments in a Bitcoin system. A Free market approach helps Bitcoin emerge as a solution to help the people!
Be prepared and protect yourself!
As I am not giving you financial advice, but just repeating what a dozen of financial experts are saying it is very important you take my word very seriously and do your own due diligence on what I have been talking about. There are so many risks out there today and the system is built to enrich those in control the bankers and governments world wide.
If we don’t protect ourselves a globally controlled crony capitalist system could quickly emerge and as the US fails the bailout will not come from tax payers but a globalist bank called the IMF!!!
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Before Chaos comes intelligence. Prepare for the worst and hope for the best! We might have only months, but at the best we have a couple of years. Wealth protection is important as elites don’t want you to have wealth as wealth gives you economic power and something to say when the day of failure comes.
John Thore Stub Sneisen
The Economic Truth
The Economic Truth 