A STUDY OF MARKET CRASHES!

“A lie repeated often enough, is still a lie believed by most.”

What year, 1921 or 2006, did Congress awaken to the fact that it could use the Federal Reserve System to obtain revenue without taxes?  When did deficit spending become institutionalized?  When did the gradually increasing issuance of Treasury bonds from the Fed provide a source of debt to convert money more reliable for spending than bank loans or bankers acceptances?  Actions always have consequences and when purchasing Treasury bonds the money created eventually ends up in the commercial banks where it expands credit ten-fold.  Next interest rates were kept artificially low so other countries could borrow and invest in their country and earn higher interest.  In just eight years the quantity of dollars increased 62%, substantially more than the GDP, while the amount of currency in circulation remained unchanged.  The money was, actually not money at all, but bonds and loan contracts.

The average investor was on a roller coaster ride of confusion.  Military actions of war had to be paid for causing market increases.  The Federal Reserve raised interest rates in an effort to cool inflation which caused a recession and many banks were forced into receivership and closed.   Then the Fed raised interest rates to stop the recession and help other nations.  Inflation expanded as did debt.  Next the Fed tightened credit to slow down inflation which encouraged banks to borrow new reserves to expand the money supply.  Then the boom of speculation grew on borrowed money and the stock market rose drastically.  Next the real estate market collapsed so the Fed pumped new money into the system and the boom returned.  The year it started was 1921 and it was called ‘The Great Depression’, strikingly similar to today!

Now, for the rest of the story!  In the spring of 1928 the Fed contracted credit and the banks shifted their reserves into time deposits requiring a smaller reserve than demand deposits and the banks were able to issue more loans than ever which offset the contraction of credit.  The British government had used its subsidy on the welfare state.  When the pound sterling was again dropping the gold began to flow back into the U.S. and the Fed came to the aid of the Bank of England and bought huge amounts of bankers’ acceptances to depress interest rates and halt the flow of gold.  Walla!  The money supply increased $2 Billion and in the fall when the Fed reversed its expansionist policy of selling Treasury Bonds in the open market and raised interest rates the money supply contracted and the final collapse was in!  The crash may not come at anytime soon, but it may come at anytime now!

OUR ECONOMY MAY NOT CRASH ANYTIME SOONBUT IT WILL CRASH AT ANYTIME

Everyone is waiting for some big, history making event that will signal the start of the collapse.  It’s the economy, stupid! The crisis is already snowballing and rolling downhill, the “Big Final Economic Collapse” is coming to your main street VERY soon.

When gold prices started setting record highs in 2011 it signaled the end time was very short. The final manipulated smack down of gold and silver will be the final staging orchestrated by the global controllers through the big bankers of Wall Street so they can stock their coffers with the shiny currency.  The common man flees the ‘beat down’ of gold and moves into stocks.  We may have already seen the final downward price manipulation when gold reached $1188 and $1195.  The populace won’t believe that this is a deliberate collapse of the U.S. economy with the approval of the White House and the Justice Department.

Most people haven’t a clue!  The ruse will be up when people wake up and can’t log in to their bank accounts, use their ATM cards and find out that their private IRA’s, 401k’s and pension funds have been confiscated.  They have already told us what they plan to do yet the populace doesn’t believe them and why should they?  They never tell the truth about anything else.  True, but this is the one thing that they will do.  The regulation for bail-ins has been written, printed and approved on the FDIC website for you to read but the 90% either doesn’t care or doesn’t have the time to read it and continues to trust in the big banks and our unworthy shill leaders.

The mainstream media has been repeating the Obama script over and over that the economy is getting better.  Unemployment is under 7% and the Fed has started its taper and the Federal Open Market Commission (FOMC) has cut purchase 12%.  Why everything must be getting better!

The reality is that we should have seen some sort of economic recovery by now.  Those running our system have literally been mortgaging our future in a desperate attempt to keep the economy on life support while they raid the coffers of the only real currency in history of the world, gold.  The Feds have been printing money like crazed counterfeiters and the federal government has been handing out goodies and presents on a drugged debt binge.  Why hasn’t their “toilet paper stimulus” had some positive short-term effects on the economy? Interest rates are rising, doubling in fact, and the 10 yr. bond rate has increased to 3.0%!

Guess what?  All of their ’emergency measures’ have done nothing of real meaning to effect a positive change in the economy.  In actuality the percentage of Americans that are working has stayed under 59% since 2009, 4 years, while the long term average had been 65%.  Less than 47% of Americans have a full-time job.  The rate of home ownership in the United States has fallen for eight years in a row.  Small businesses have failed in record numbers and the percentage of self-employed Americans is at an all time low in favor of corporations that outsource American jobs overseas.  Corporate profits compared to wages just hit a new all-time high.  The propaganda media machine is lying and the dumbing down of the public through the “Department of Indoctrination Education” has done the poor job they set out to do when they were made a Cabinet level agency in 1979.

American is becoming a third world nation in support of corporate “globalism”.  Today the Census Bureau reports that the median household income in the United States has fallen for 5 years in a row.  Our G.D.P. has shrunk to its lowest level in our history while the stock market attains a higher mark every week in 2013 and our trade deficit with China has tripled in just ten years!   Homeless rates amongst children are up 72 %, the highest rate ever in the U.S. while 1 of 5 households are on food stamps and the gap between the rich and the poor is at another all time high.

Welfare entitlements are skyrocketing as half of the population receives some type of benefit run by the federal government. Welfare spending has tripled and the U.S. debt will double during this administration’s eight years.

Obama Care will, by virtue, literally kill Americans instead of providing insurance by forcing millions more people into the system who already had private insurance.  They will be charged higher costs to purchase that insurance while doctors, unwilling to work and lose money to Medicare and Medicaid prices, will be forced to quit, opt out or ration healthcare.

But is “Obama’s Scare”, from his voting base, about to be changed from his message of “Change”?  Are people awakening to the truth?  Is the propaganda machine willing to report this awakening?  Today CNN is reporting that according to their new survey 59% of Americans believe the economy is getting far worse!  Do you think?  A billion has been borrowed and invested in the stock market instead of precious metals just this year by the populace.  Will Americans protect their savings by getting rid of the worthless paper they currently subscribe to before it crashes or will their greed or ignorance of history ruin 80% of Americans future in, “The Greatest Depression of the World”?  Protect your family while you still can by storing your wealth in gold, silver, platinum and palladium!

http://www.gold-eagle.com/article/lie-repeated-often-enough-still-lie-believed-most