We have been living for decades under what Catherine Austin Fitts calls the Slow Burn where all of our assets are stolen from us by the Power Elite on Wall Street. She said Wall Street has stolen $40 trillion from us over the years through fraud and coercion. And they will steal more. She was the former Housing Commissioner in the first Bush administration and had been the managing partner at Dillon Read. Catherine was run out of Washington for being too honest. She once found a single block in San Diego with $20 million in defaulted HUD loans. Not one of the ten fictitious properties even had a postal address. Catherine does not believe that there is a crash coming when one day it all ends. She says the Slow Burn of being robbed by the trillions will continue for a long time.
I follow her works closely but I have also been following the move to end the US dollar as the world’s international reserve currency. This will force the repatriation of $16 trillion form overseas. And it will destroy America with a sudden surge in the domestic money supply resulting in Hyperinflation. It will take this current Depression into a phase far worse than in the 1930s when millions of Americans starved to death. Paul Volcker said we must end the dollar as the world’s international reserve currency but he gave no time frame other than the next couple of years. Jim Rickards said we will have a series of 20 to 30% devaluations over a period of say two years. When we are through, the dollar will be devalued 80% so imported goods will cost 500% more.
We currently are experiencing price increases in the range of 9% per year. But wholesale food prices are ramping up with retail to catch up soon. In the last year pork chop and Rib eye prices both jumped 40 percent. Utility prices are up 40% to an all time high due to government regulations. The current administration plans to levy fines on coal fired electrical generation plants because they emit carbon dioxide. These fines will be passed on to consumers in their utility bills. Our new heath care system was written by the insurance industry. Some states saw premiums only rise 15%. Others were sharply higher. But look at those increased deductibles. Deductibles depending on the plan range upwards from $3,000 for a single person and from $5,500 for a family. Consumers are being squeezed to their limits. On their first trip to the hospital for the year, new patients will have to pay $3,000 to $5,500 before they receive any treatment at all. This is after having paid their much higher premiums.
The Economist magazine recently calculated fraud in America’s government run medical system to run at $272 billion a year. The system is difficult to administer. In 2015 the administration will have 140,000 coding categories for doctors and nurses to fill lot. There are 9 different coding choices to make in case a patient is attacked by a turtle. Was this a wild turtle? Did this turtle have evil intent? Was the turtle a male or a female? Maybe all this complexity is to keep the fraud alive.
Look at the Department of Defense. On 9-10-2001 Donald Rumsfeld said he could not trace $2.3 trillion in DOD spending. And he promised to do better in the future. He put his man rabbi Dov Zakheim at the Comptroller of the Pentagon’s office on the job looking for that money. I read recently that the total amount of DOD funds that cannot be traced has risen to $8.5 trillion.
Apparently, this economic model of squeezing the taxpayer until he coughs up blood is not going away soon. This is as I said what Catherine called the Slow Burn. I recently wrote of the other more common means of stealing our money. The Bankers lease gold from the Treasury and the Federal Reserve which they sell five times as paper certificates of gold on deposit. The Bankers were also allowed to sell $2.3 trillion counterfeit US Treasury bonds. The Bankers are allowed to steal billions of dollars every week from the Department of Defense and other agencies because taxpayers are not allowed to audit the books.
Catherine once asked a programmer who had considerable skill to develop a model of the US economy without fraud, theft and abuse perpetrated by the federal government. The growth rates were fantastic. Everything went straight up when the government stopped robbing the people. She had him check his figures. He already had but did it again. He said the growth was even more amazing than he originally thought. She did at one time have a program that listed federal spending by zip code. A friend of hers hit the ceiling when he saw the government had paid out millions of dollars on a flood claim in a one zip code town in upstate New York that never had a flood in the past 70 years. In case you hadn’t noticed it: The $272 billion a year in medical fraud works out to more than $5 billion a week. If you add in the money stolen from HUD, the DOD and other agencies plus the counterfeit US Treasury bonds and the Federal Reserve’s gold sold five times over, then you are talking about a Slow Burn of a lot more than $10 billion a week.
At some point, the American taxpayers will be squeezed so tightly that their eyes might pop out of their heads.
But before that day arrives there is an event looming on the horizon that will put a stop to this exploitation of the American public. Foreigners will say No to abuse from Washington and New York before Americans stand up and say No More.
The Federal Reserve has been creating dollars by the trillions which they swap with the European Central Bank whose President Mario Draghi is a former Goldman Sachs VP. A lot of people around the world have been dumping US Treasury bonds but the Federal Reserve is buying them through agents in Belgium. Only $320 billion to date but that will double and then quickly pass a trillion dollars. Gazprom now sells 90% of its gas in currencies other than the dollar. American discount stores are saving money on currency exchanges by buying their imports in Chinese yuan. The BRICS nations (Brazil, Russia, India, China and South Africa) have aligned themselves with 80 other nations to take down the dollar as the international trading reserve currency. When the the dollar is no longer used to settle 50% of all international trade and the Chinese can no longer pull a thousand metric tons of gold out of the markets in London and New York, China will feel free to attack the dollar.
But we might not have that much time left. China has trillions of dollars in fraudulent loans to deal with. They could be forced to deal with their severe internal problems by dumping a trillion dollars in US Treasury bonds. That would lead to a 21st century Asian Gold Rush and a collapse of the dollar.
180 million Americans live paycheck to paycheck. Millions are going further into record levels of debt. A lot of supposed students are just taking out loans to keep their families from starving. 90% of all new car loans are subprime. Native Born Americans under 55 have 4.9 million fewer jobs than in 2007. So what happens when prices double after the dollar is devalued the second time? First a 30% devaluation followed by a 20% devaluation is likely in a Jim Rickards scenario. Rickards is the Pentagon’s most famous financial consultant.
48 million people are on Food Stamps. If prices double, then the food that was supposed to last a month will only last 15 days. To cover up unemployment the federal government has doubled the number of people on Disability since 2007. Now more than 11 million are living on Disability. They won’t have anything to eat. 46 million are either on Social Security or Survivors benefits. More than half of these people will be struggling to find food. How about the unemployed? America in 2014 has the highest unemployment rate since the Great Depression. The real unemployment number is around 25%. Some of these people are on Food Stamps. Most have been timed off unemployment benefits. In fact a lot of unemployed Americans are employed. Their hours have been cut to a level that makes their present take home pay unacceptably dismal. Doubling prices will hurt them in days not weeks. 180 million Americans have little or no savings if you subtract what they owe on credit cards, car loans and student loans from the amount of money they have in the bank.
There are other people the billionaires might worry about. When the state of Hawaii ran into budget difficulties a few years ago, they cut back on the number of meals for state prisoners from 3 per day to 2. Not healthy for billionaires when the Dollar Dies. I read the other day that 40% of American workers make less than the 1968 minimum wage. The median family income in the US is a little over $50,000. If we could limit the coming Hyperinflation to 100%, that would cut that average family’s before taxes income to $25,000 and a lot less after taxes. Not good. 60% of American families now make less than $65,000 a year. But after Hyperinflation those 60% would be making less than $32,000 before taxes. And they would not be eligible for Food Stamps and free health care. A lot of families making over $80,000 a year have two parents working. So if one spouse loses a job during Hyperinflation, their entire family will be struggling to eat and pay bills.
There will be Nationwide Food Riots. And they will not stop even after every major American city has been burned to the ground. Why? Because the government, both political parties, the press, the Foundations and Wall Street will neither suggest nor even mention the basic reforms we need.
We need to arrest the Bankers. Seize their assets. Cancel Unpayable Debts. Issue a non-interest bearing currency like Lincoln’s Greenbacks. Ban fractional reserve banking. And systematically cancel Unpayable Debts worldwide.
We will do that or America will die and take most of the world with her.
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