An article by Michael Krieger of Libery Blitzkrieg blog sums up the global financial system and what lies ahead if we don’t react now. Krieger makes the point that things are going to get much worse than 2008 and no amount of money printing will work this time. The levels of corruption are staggering and more and more people are awakening which is quite disturbing to the global elite.
The Tipping Point
Serfdom has simply been pushed too far. Globally. What we are about to witness, incredibly, is not just a change in the way that one or two countries or even a specific region of the world operates. No, what we are about to witness is a complete transformation globally, a change that I believe will be incredibly positive and will ultimately free us from the shackles upon the minds of humanity as a species. The internet has allowed us to connect with one another in a manner never before possible, and this tool has permitted us to blast through the lies of the global elite that is desperately trying to hang on to control. Whether it was the intention from the outset or not, what globalization has created is a very small class of incredibly wealthy people that are extraordinarily corrupt as a group and also above the law. They are able to hide enormous amounts of money. They are able to insider trade. They are able to deal drugs. They can do whatever they want, yet if anyone below them does the same they are prosecuted in a manner that resembles Medieval torture.
Many people say to me, “but Mike, aren’t things always corrupt, hasn’t it always been this way?” To this I answer yes and no. Of course within any complex societal and political structure there will be elements of corruption. This is obvious. However, there are cycles of corruption and degrees. At some point, particularly toward the end of a cycle where globalization creates this “super corrupt class” of individuals roaming the planet doing as they please with us pawns, you reach a tipping point. That tipping point has already been reached. What we are witnessing now all over the world are merely the effects of that tipping point clashing with the corrupt global elite that refuses to budge an inch and reform even though it is in their best interest to do so. No, they are so arrogant and criminal after decades of doing what they please with zero consequences they would rather attempt to implement a global police state rather than deal with the nightmare of their actions and make the world a better place. Therefore, it is up to us, as a species, to reclaim what is our birthright. Freedom.
As I wrote the other day on twitter, what we have today is not Socialism or Capitalism, it is Ponzism. I am talking on a global level. Basically every country and every region. The biggest pitfall we must avoid as a species is allowing the global power structure to pit us against one another. These guys don’t fight wars, they send you to fight them. Don’t fall for it. Their number one trick once things get bad within their own nations is to attempt to create a war. This checks two very important boxes for them. First, it creates a distraction for the general public and even makes them think that they are part of a team that needs to be cheered. It’s like a big football game but with thousands or millions dying on the field. Second, it allows the government to do pretty much anything they want in the name of “winning the war” or “national security.” This is exactly why the “war on terror” was the perfect war for a kleptocratic elite. It is a war with no end, so theoretically they can constantly claim war as an excuse for taking away civil liberties. The problem for them at the moment though is that the American people are waking up to this scam. Therefore, a larger and much deadlier war is in their best interests. If it is in their best interest you can be sure it is in our worse interests. Therefore, we must do everything we can to prevent it.
Unless you have been living under an economic rock for the past six months, you are aware that China is in the midst of a serious economic slowdown. As I have said for years and continue to say, this is not a small bump in the road. This is a major contraction. Similar to the U.S., China had a choice in the 2008 slowdown. They could have taken the hit and moved toward measures to rebalance the economy away from an over emphasis on investment and construction spend and toward consumption, but they did nothing of the sort. Rather, they doubled down on their prior mistakes and mal-investments in an epic bet on the ponzi economy. After a brief sugar high, this has now failed.
So with the economy back in steep decline, the authorities fear pumping massive stimulus in as they did four years prior due to their justifiable fears of sparking rampant inflation. Meanwhile, thanks to social networking, citizens have become more aware of the incredible corruption and theft of their leadership, whether in the political or business world. They are increasingly acting out about it and it is becoming so blatant that even China’s legendary control of media is unable to direct the plot. The most recent outburst came from the Foxconn (a major supplier to Apple) factory in Taiyuan, China which employs 79,000 people. While details are sketchy, most accounts point to the riot, which reportedly involved 2,000 people, being sparked by a fight between security guards and workers.
Of course, China’s leadership was well aware of all of this before the Foxconn incident came onto the scene, so what is a good authoritarian regime to do? Well, you attempt to direct the rage and angst to an outside enemy. In this case Japan. Zerohedge has a great report on the anti-Japanese violence and hatred that burst onto the scene recently. The link to their piece Postcards from a Furious China really says it all.
Like the Middle East, the Southern countries of Europe have been in and out of rage now for almost two years. The most recent explosions onto the streets of Greece and Spain are particularly disturbing since the inept clownish leadership on the Continent had supposedly “solved” the crisis for the third time just a few weeks ago. Or was it the fourth time? Really, who’s counting anymore…
Let’s start with Spain. While Greece is still on fire, Spain is where the real action is due to the size of its economy and the importance it has to the political EU hacks. Not only were there enormous protests this week in the capital Madrid in reaction to austerity measures, but there is also a very significant secession movement picking up steam in Catalonia. This isn’t about leaving the euro, this is about leaving Spain! For those that aren’t aware of Spanish geography, Catalonia is the wealthiest region in Spain and it is where Barcelona is located. First, we saw enormous protests in Catalonia about a month ago, which I covered here. Now we see that last night the regional parliament approved a referendum on independence that will apparently be voted on during regional elections on November 25. Reuters covers the story here.
While this is hugely important, let’s not overlook the massive demonstrations in Madrid this past week.
Now let’s talk Greece. I think a lot of people brushed off this week’s protests as “oh it’s just the Greeks in the streets again.” This is a mistake. These demonstrations were different and here is why. From the UK’s Guardian:
In a departure from other mass protests, members of the police force, army, navy and judicial system joined public and private sector employees on the streets. One police officer, who preferred not to give his name, said the Greek state “should feel deep shame” at imposing cuts on the very people whose protection it sought.
Once the people that are being paid to defend the regime start opposing the regime it is game over. It appears we are there in Greece. Full article here.
The United States
This is the big one of course. While we have seen outbursts from the Tea Party and Occupy Wall Street movements ever since the banker coup of 2008, these movements have not been as sustained as demonstrations in other parts of the world. This is about to change. I am firmly of the view that the Obama Administration has pulled out every trick in the book in order to get reelected this year, and that this strategy will probably succeed. What I think the vast majority of people voting for him as well as investors fail to comprehend is that once this guy gets in and doesn’t need to worry about getting reelected he will leave everyone outside of his puppet masters out in the cold. You think he has been bad for the poor and middle class so far via his inflationary policies? Well you haven’t seen anything yet. I believe there is a decent chance he will push “austerity” on the public as soon as he is reelected. All the suckers that voted for him will be up in arms and the only ones that will be protected, as usual, will be the crony capitalists that own him. Even if he doesn’t do this, his other option is merely to keep spending and force The Bernank to print more money. The cost of living will surge and the poor and middle class will get crushed no matter what. I covered this in my recent piece “2013: When Money Printing Meets Supply Constraints.” The American Spring will get going in 2013.
Just Say No…to War
The writing is on the wall folks. The global economy is headed back down into depths that will prove worse than 2008, and this time no amount of money printing and propaganda will be enough to hold things together. TPTB know this. We need to remember that this isn’t just a battle between the masses within our distinct nations and the 0.01% of oligarchs that have used the past four years to harvest more of our wealth. This is also a battle between humans collectively and themselves. We need to grow up as a species and take charge of our destiny. We need to stop falling for their tricks and fighting their stupid wars while they hide in their castles, parliaments and skyscrapers. The first thing we need to do is say no. No more. It’s time to evolve.