Nassim Taleb popularized the theory of the Black Swan in his 2004 book Fooled By Randomness as an unexpected event that is not seen until it arrives. What I want to do here is to make people understand they are living inside a Bubble and there are many Black Swans, such as, Bear Stearns, AIG and Lehman Brothers out there on the horizon. We cannot rely on former Goldman Sachs VPs like Gary Gensler at the CFTC, Adam Storch at the SEC and Mario Draghi at the ECB. The two candidates mentioned to replace Mervyn King at the Bank of England are both former Goldman Sachs VPs.
We have had collapses of corporations due to fraud that was not detected by the SEC because they are paid not to investigate. This fraud discourages clients from doing business with Wall Street. And that can destroy markets. I cite Bernie Madoff, MF Global and Peregrine Best.
The US bond market is in a Bubble. The Federal Reserve has announced they will continue its policy of low interest rates. The value of an existing bond varies inversely with interest rates. People overseas are still willing to buy US Treasury and corporate bonds. They see the dollar as a haven of safety. It is not. An investor needs a return of his capital. The US does not have enough employed people making wages above the poverty line to pay the interest on its 20 trillion dollars in federal, state and local government debts. At some point, someone will figure out that the US inflation rate is three times interest rates so they are losing money. The first person to exit the US bond market will keep his money. Everyone else will lose their fair share of tens trillions of dollars.
The dollar is in a Bubble. The value of a currency is set by supply and demand. The demand for the dollar should be lowered because interest rates are a third of the inflation rate. The demand for the dollar is less than for other countries because American politicians shipped 50.000 manufacturing plants and 12 million jobs overseas. The dollar is doing well compared to the yen, the euro and the pound. But compare them to gold and silver. At less than $35 an ounce, the entire annual global output of silver could theoretically be purchased for 35 billion dollars. That is less than 1/10 of 1% of the value of the bond market. Situations that cannot last will not last.
The US housing has not yet completed its price correction. Ben Bernanke has kept interest rates low so banks can keep bad loans on their books. Jamie Dimon CEO of JP Morgan said the admitted that his bank had 138 billion dollars more in bad assets than his banks admit to. Jimmy Rogers is shorting US bank stocks. Gregory Mannarino has been doing charts of the S&P, the DOW and individual stocks like Apple and Amazon which are in a Bubble. At some point investors will sell their stocks. At some point this will become common knowledge and the housing, stock, dollar and bond markets will collapse.
Herds in America will be slaughtered because it is too expensive for farmers to feed their animals. If there is no money to feed animals, what will happen to parents trying to feed their children? How will they continue to pay the taxes the government needs to feed the bankers?
Some people have been investing in agricultural commodities to get out of the bond and dollar markets. But Genetically Modified food has been banned in 49 countries. What happens if American food cannot be exported? In 2001 Epicyte Corporation isolated a protein that causes sterility and spliced its gene into corn so that men and women eating the corn would become sterile. They sold that technology to Monsanto You might be better off investing in either a garden or sprouting seeds inside your house. So what happens if you are invested either in corn futures or in the shares of Big Agriculture and the buyers overseas do not want your GMO corn?
Utility bills in many areas in the US and UK are increasing 15% a year. At some point the rate payers are not going to be able to afford to eat and to pay their taxes and utilities. Utility rates are a Bubble.
3,400 tons of German gold is missing. Separately, Jim Willie said 40,000 tons of gold allocated in customer accounts is missing. Gerald Celente has said the Federal Reserve has stolen the gold of every nation that deposited their bullion in New York. Germany has made moves to take 50 tons of gold a year from the New York Federal Reserve bank. Venezuela has received its gold. But only a few allocated bars will be returned. After that all markets will collapse.
Just in Time inventory systems and Globalization means that your job and your economy depends on the ability of someone 8,000 miles away to supply you with parts and even food. What happens when Europe collapses in anarchy? What happens if the Straits of Hormuz are mined and nothing can reach you from half way around the world?
Stewart Rhodes of Oathkeepers was talking to Alex Jones when he said, “The American people are the enemy of this government.” When people learn this, they will refuse to cooperate and stand down. Peter King, Chairman of the House Homeland Security Committee, and Attorney General Eric Holder have both said that the government has the right to kill Americans with a drone. Mike Rivero has said all this government repression will all collapse as soon as investors overseas hear Americans say ‘We won’t pay taxes for Bailouts ‘. Those words will burst every Bubble in the world on the same day.
Pedophiles are an important cog in the machine of repression in every nation run by the NWO. Jimmy Savile, the BBC presenter who was recently exposed as a pedophile after his death, used to be taken to the Isle of Jersey on Prime Minister Ted Heath’s yacht. While on the yacht the Prime Minister and Jimmy Savile, were given children from the local orphanage. The Russian Jewish and Israeli mafia together with major corporations and the governments they own traffick more than 250,000 women and children every year. We allow the Banker Occupied Government to grope our children at the airports to prepare them to accept being molested by their government leaders. At some point the Jimmy Savile scandal will start a wave of people who will say No to the Pedophile Occupied Government. At some point the TSA which is now groping people on the streets and at highway checkpoints will goad Americans into saying No to the Banker Occupied Government of, by and for Pedophiles.
Notes: This first article outlines how IMF economists have finally admitted that what they were doing was wrong.
IMF Economists: ‘We Were Wrong.’ Will Someone Please Tell The Press And The Politicians.
This next article tells how Debt Cancellation would work.
The New Economics, Radical Solutions Required And Offered
Video: GMO Ticking Time Bomb, The Bankers Want You Sterilized And Then Dead
If A Virus Shuts Down All Of The Banks, You Have 72 Hours Til Martial Law
The above essay was inspired by a radio interview dated October 27th. I heard that is available at http://iamthewitness.com/