The latest forecast by LEAP/2020 predicts the global economy will be ‘sucked into a black hole’ by October, that the Fed’s QE∞ will be ineffective at staving off the collapse, and that all signs indicate a massive downturn (‘without modern historical equivalent‘) in the economy is ‘dead-ahead‘.
Because it is indeed that. As we have underlined on many occasions in the GEAB, the United States has, since the beginning of this crisis, refused to face reality (5) by having increasing recourse to financial, monetary,… (and military) subterfuge to try and mitigate the consequences of the crisis. All this however is proving to be ineffective at the end of summer 2012, in spite of the trillions of Dollars thrown down what is proving to be a bottomless hole.
The best proof is the Fed’s September 13th decision to maintain its Operation Twist programme of Treasury repurchases by adding to it an unlimited programme (in time and amount) of mortgage backed securities repurchases (40 Billion USD/per month) to try and revive the US property market and, through the latter, employment and consumption. The Fed is aware that this decision will cause a backlash and damaging consequences internationally. In fact it has been hesitating for months ahead of a new QE3 (6). But, in trying to avoid a socio-economic implosion and a stock exchange collapse on Wall Street ahead of the November 2012 elections (7) whilst trying to save its own credibility under heavy attack from the Republican camp, it chose “Psychological Easing” rather than “Quantitative Easing”. Indeed all the signals are already on red: employment isn’t moving up, the jobs created are paid very much less than those lost (9), poverty is exploding throughout the country (10), … and the US multinationals (11) have increased announcements of falling profits for the second half of 2012 and 2013, returning to the levels of 2008/009, typical of a recession period (12).
Today John Embry gave a stunning interview to King World News. In it he made some rather frightening predictions. Embry believes, “... we are in the early stages of a global ‘Weimar’ event.” Embry stated, “This is very historic what’s happening here,” as we have now entered “the end game.”
“We started the money printing in Europe, then the US followed, and today Japan has now joined the counterfeiting spree. The Chinese are also in trouble. Their economy is far weaker than anybody acknowledges. So on a worldwide basis we are in the early stages of a global ‘Weimar’ event.
The money printing is absolutely essential to keep the end game from occurring yesterday. There are two aspects to this. The banking system is for all intents and purposes bankrupt. But more importantly, if you superimpose the virtual banking system on top of the already bankrupt banking system, there is no other option but for central planners to print money into the hereafter to try to keep the system from totally collapsing.
As I said earlier, we are truly in the end game now. We are coming up to the fiscal cliff in the United States, there are no solutions in Europe, China’s economy is imploding faster than anybody wants to acknowledge, and Japan is a train wreck. These are all signs that we have now entered into the end game.
...it’s no longer possible to hide the global economy’s tragic state behind the pretext of the “Euro or Greek crisis”. The more Euroland advances constructively, the more the “Potemkinien” (2) character of the US, Chinese, Japanese and Brazilian... economies’ « health » will show itself. The tree will no longer hide the forest, namely that all the major global economies are entering recession or slowing growth simultaneously, leading the socio-economic and financial world into a black hole.
At the same time summer 2012 will have marked a major acceleration in world geopolitical dislocation with a Syrian conflict which becomes more dangerous for the Middle East and the world day by day (3), Israeli-Iranian tension which is ready to explode at any time, and widespread testing of declining US power – from the China Sea to Latin America via the whole Muslim world. The strategic-military world is heated white-hot as the massive resumption of arms sales worldwide illustrates for that matter, with the United States supplying 85% of the total (4).
The Fed is increasingly becoming the key player in the US property market, thus persisting in confusing the problems of liquidity and solvency. US households don’t have any more money to buy or build houses (8). Mortgage interest rates won’t change anything here. Only Wall Street, for a certain time, will be able to continue surfing on record levels until one “beautiful morning” everything collapses due to a sudden awareness that the real economy is sinking into depression.
With the death toll in Syria soaring on Wednesday, the world began returning its attention to the devastating civil war there after a week in which the controversy over a US-made film denigrating the prophet Muhammad dominated headlines around the Middle East.
On Sunday, for the first time, Iran acknowledged that it has a military presence in Syria in the form of the Islamic Revolutionary Guards Corps. Their commander, Muhammad Ali Jafari, was quoted in the Iranian media as saying that a number of the Guard’s Quds Force members are present in Syria and that they provide “intellectual and advisory help,” according to Voice of America news.
In another major development, the former head of Syria’s chemical arsenal said in an interview in Turkey with The Times that the Syrian regime has plans to deploy chemical weapons against its own people “as a last resort.”
The US has recently warned Israel that an Israeli strike on Iran will likely cause Egypt and Jordan to annul their peace agreements with Israel and sever ties, according to a senior Israeli official quoted by the Hebrew daily Yedioth Ahronoth on Thursday.
“These days, Arab leaders don’t rule their people. Rather, the street rules its leaders,” the official was quoted as saying. “An Israeli strike is exactly what the Iranians need: the entire Arab and Muslim street will go out to demonstrate.”
The Israeli official reportedly linked between the anticipated Arab reaction to an Israeli strike and the current rage-fueled wave of anti-Western protests in the wake of the publication of a trailer for a new film, “Innocence of Muslims,” that denigrates Islam’s Prophet Muhammad.
“What we’ve been seeing with the anti-Muhammad film is nothing but a preview for what’s going to happen if Israel attacks,” the official was quoted as saying.
Iran has been using civilian aircraft to fly military personnel and large quantities of weapons across Iraqi airspace to Syria to aid President Bashar al-Assad in his attempt to crush an 18-month uprising against his government, according to a Western intelligence report seen by Reuters.
In a speech to army commanders today, Iran’s Supreme Leader Ayatollah Khamenei asked for more advanced military capabilities to deter any possibility of “enemy aggression.”
Khamenei, while praising Iran’s achievement on the nuclear front, made it clear to the world that there will no turning back on Iran’s illicit nuclear program and that Iran will never bend to Western pressures.
According to a former intelligence officer of the Revolutionary Guards who has defected to Europe, the current events in the Middle East provide an opening for the Islamic regime to divert attention from its nuclear program and deteriorating conditions at home due to sanctions, and to delay any attack on its nuclear facilities by Israel.
As long as the uncertainty continues in the Middle East, Iran believes Israel will be under immense pressure not to take any action that would almost guarantee further instability in the Islamic world, the source concluded.
U.S. Homeland Security is preparing for an all-out “American Spring” rebellion and has bought 1.2 billion bullets for counterterrorist snipers.
The new purchase is for .223 rifle ammunition, plus another 176,000 rounds of .308 caliber 168 grain hollow point boat tail (HPBT) rounds in addition to 25,000 rounds of blank .308 caliber bullets.
“It is the type of ammunition and not necessarily the quantity that is troubling,” James Smith Prepper Podcast was quoted as saying.
“All of the sniper grade ammunition is being used by trained, or in-the-process-of-being-trained snipers,” Smith. Adding up the number of lethal bullets tallies a potential 135,384 kills for the snipers, based on U.S. Army and Marine figures from the Vietnam War, when soldiers used 1.3 rounds of ammunition for each verified kill.
Homeland Security’s purchases of the huge arsenal “is both worrying and ironic given that Americans are being harassed and treated with suspicion for buying a couple of boxes of ammo at their local gun store,” Watson wrote.
Government officials have refused to comment.
Nearly half a billion rounds of ammunition purchased last March expand on entry into a body to cause maximum wounds. The large number of bullets raises questions if such large quantities are needed only for training.
In addition, 750 million bullets can penetrate walls.
The Homeland Security purchases are in addition to a controversial 174,000 bullets purchased by the Social Security Administration and reported by mainstream , which has largely overlooked Homeland Security’s huge arsenal or has considered it a result of paranoia.
However, the U.S. Army has been preparing for rebellion in the streets, and a Police training manual, entitled “Civil Disturbance Operations” describes how to suppress riots and kill civilians when confronting “dissidents." The manual states, “Warning shot will not be fired,” Watson reported.
There are 314 million Americans, men, women and children living in the United States this morning. This year alone, DHS has purchased four rounds for each and every American. We don't know how much more ammo the DHS may have accumulated during the preceding 36 months of the Obama Administration. This enormous DHS stockpile supplements the ammunition already held by the US Armed Forces, the National Guard, hundreds of local and state police departments, plus other Federal agencies such as the ATF, Secret Service, FBI, TSA and U.S. Marshals Service.
Why did DHS purchase 28,000 tons of ammunition? Why did DHS purchase almost half a billion rounds of hollow point ammunition, banned by the Hague Convention of 1899 for use in international warfare, that is carefully designed to kill it intended targets? Americans have no good answers to these questions since the DHS is now refusing to respond to media inquires on the subject. Pull back the curtain of silence by asking your Congressmen and Senators these questions.These huge inventories are extremely troubling from the standpoint of a free society. DHS and other Federal governmental agencies will be much less inclined to ever use this ammunition as long as Americans citizens stand firm in supporting our Second Amendment rights to bear arms. We must never forget that tyrants throughout modern history (Pol Pot, Hitler, Stalin and Mao) always disarmed their opponents before rounding them up and sending them to the killing fields.We must never forget.