The Global Economic Crash Is Imminent-Are You Prepared?

When the Titanic was sinking, who did they save? They saved 70% of the wealthy as they were the ones that got into the life boats while the coach passengers were locked into steerage in which only 10% of those poor persons survived. This is exactly what is going on now. The government is still not bailing out small business owners, pension holders and the average investor. They, we, are only bailing out the rich friends of the international bankers. The rest of us are locked into middle class steerage. Get your money out of the bank. Cash in your 401K and your pensions. The game is over and you only have time to jump from this sinking ship. America, there is a price for our collective ignorance and it is called enslavement. Our moms were wrong, what you don’t know can and will hurt you!

I have interviewed several prominent economists, multiple times such as Joseph Meyer of Straight Line Money Analysis and John Williams of Shadowstats.com. the following is a compilation of my interviews with the two men, plus other lesser known economists.

Why America Can Never Recover

Derivatives are not stocks or bonds or anything of tangible value. The value of a derivative is technically viewed as “anticipated future value.” Therefore,derivatives have no real value. However, a derivatives transaction must have the backing of a financial institution such as a brokerage or a bank. The assets used to back up and collateralize the worthless derivatives are real and substantial. When the derivatives market crashed, it took down hard assets of tangible value. In effect, the economy had stupidly used something in order to back up nothing and the something is now in the total control of the central bankers. To cover the losses of the “too-big-to-fail” entities, the bailouts were initiated in what constituted the largest wealth transfer in world history.

This is the ultimate money game in which paper derived from other paper, such as futures and options, has served to bolster the balance sheets on Wall Street. Futures and options are exchanged traded derivatives, but the largest group of derivatives is not even traded on the exchanges. These are called “counterparty derivatives” and consist of such financial entities as mortgage backed securities and credit default swaps.

It is estimated that total derivative exposure of the financial system is one and a half quadrillion. A quadrillion is 1,000 trillion dollars and it has largely collapsed. The entire Gross Domestic Product (GDP) of all the world’s countries is approximately 77 trillion dollars. GDP is an economic term for everything that is produced for sale. The American middle class, through the bail outs, is being asked to bear the burden of the entire derivatives market collapse which totals over 16 times the net value of the entire planet. No amount of bailouts can ever cover the loss. This is simply the bankers way of transferring what is left of middle class wealth before the final collapse.

IT IS MATHEMATICALLY IMPOSSIBLE TO PAY OFF THE DERIVATIVE DEBT!

Where do you think the bail out money went? Ask yourself why so many corporate heads are building homes overseas? Why did George Bush build a 100,000 acre ranch in Paraguay? Why is NORTHCOM, a combat organization, is engaged in urban riot control training along side of foreigh troops and UN troops? A few years ago, we need ask again, why did DHS purchase 2.2 billion rounds of ammunition to go with their 2700 armored personnel carriers? Even the National Weather Service has purchased million of rounds of ammunition.  Speaking of foreign troops, why are the Russians training on American soil with FEMA in a bilateral agreement signed by Obama? Why are we seeing one disaster drill after another being carried out in this country? Why is UWEX 16, as I write these words engaged in training to combat American troops who have “gone guerrilla”? I can tell you why. Very simply, the system is very close to crashing and there is going to be a civil war.

The Straw That Breaks the Camel’s Back

Three years ago, I wrote an article detailing how the Federal Reserve had backstopped Bank of America and Wells Fargo to the tune of %75 trillion each in case they get taken down by the derivatives collapse. Each bank is insured to the level equal to the entire collective wealth of the world. How can that debt ever be paid off.

Everyone of our financial institutions is interlocked with Deutsche Bank  This German based bank is on the very of insolvency because of the derivatives. The German government has said no to a bailout. When this banks collapses, please note they just laid off a quarter of their work force, this will send a tsunami racing across the Atlantic and it will collapse every American-based major financial institution from Bank of America to Goldman Sachs. This is far worse than the Lehman Brothers fiasco back in 2008. The next crash, which could happen any day, and it will make 1929 and 2008 seem like holiday.

Conclusion

When absorbing the enormity of what is written, just remember these numbers:

  1. National debt will quickly be going $21 trillion dollars.
  2. Unfunded, but mandated liabilities are approximately $240 trillion dollars. This includes Medicare, Medicaid and Social Security. There are approximately 54 million Americans on Social Security. This is a prescription for disaster as this country cannot care for its elderly and infirm.
  3. The elephant in the room, as stated, is the credit swap derivatives which is $1.5 quadrillion. The annual interest rate is $505 trillion.

The United States government takes in $2 trillion dollars per year. Get out your calculator and begin figure out how long it would take to pay off these debts, even if we spent all the revenue taken in by the U.S. in order to pay down these debts.

  1. The national debt of $21 trillion would take 10.5 years to pay off if the government did not spend one dime on Social Security, build a bridge or arm a soldier that it could not afford to pay
  2. It would take 120 years to pay off the unfunded, mandated liabilities. Of course, the elderly would totally be on their own, as we all would.
  3. WE CAN NEVER PAY OFF THE DERIVATIVES DEBT. THE INTEREST ALONE HAS EXCEEDED OUR ABILITY TO PLAY CATCH UP.

The only answer is total debt repudiation. Hit the reset button because the game is over. However, Rockefeller, LORD Rothschild and their criminal friends would not like that any country that renounces the debt and refuses to stay enslaved in this criminal system based on a Ponzi scheme, would have its country invaded and its leaders killed.

THE GAME IS OVER, ARE YOU PREPARED?

Survivalist expert, Bob Griswold, talked about the seven things you must do to survive the first three days following an economic collapse. Can you name the seven things? Are you prepared?  Details are in the video.

Written by Dave Hodges 

The Common Sense Show  

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