In the mind of a schizophrenic person, internal elements of fantasy (negative and positive) are made manifest in the psyche and projected out onto the real world. Often, the daydream images of the mind are not merely images to them. Rather, what they imagine subconsciously becomes reality. Their faculties of observation become so limited, either due to a reaction to trauma or merely an inherent inability to cope, that they cannot decipher between fact and fiction. A person could go on like this for quite some time if all his needs are provided for by someone else. But the moment that support ends (and it will), the realities of necessity, not to mention supply and demand, take hold. One cannot live in a schizophrenic world indefinitely.
The current global mishmash of interdependent and socialized economies are, at bottom, schizophrenic. Our markets are not based in any fundamental reality. There is very little tangible foundation left to stand on, and this has been the case for several years. Yet some people might argue that since the derivatives crash of 2008, most of the world has continued to walk on air and there is little for us to worry about.
The power of fantasy is that it is self-perpetuating. Fantasies are fueled most commonly by misplaced hopes and unhealthy or unrealistic desires, and such things are darkly and grotesquely energizing. Fantasies can indeed keep economies around the world functionally alive even when they are clinically dead. But again, there is always an end.
Equities and commodities markets in particular have levitated despite economic fact, making their eventual fall ever more spectacular. That fall has now begun halfway through 2015.
Let’s look at the cold hard truths of our current situation.
New signals of market crisis are generating every two to four weeks as we grind on into the third quarter. This is in stark contrast to the relatively predictable and "stable" market behavior of the past three years. I realize that we are experiencing a “slow boil” and that many people may not even be taking note of the exponential increase in negative economic signs, but really, think about it - at the beginning of 2014, what was the general financial sentiment compared to today?
Europe has just experienced the worst “near miss” yet with the Greek crisis, a crisis that is still not over and will likely end in chaos as the last-minute deal with the European Central Bank is derailed by International Monetary Fund intervention.
Keep in mind that Europe is overwhelmed with debt as peripheral countries border collapse and core nations like France float in a recessionary ether they refuse to openly acknowledge.
Asia is the biggest story right now, with Chinese markets in veritable free fall despite all attempts by the communist government to quell stock selling and shorting, to the point of threatening arrest and imprisonment for some net short sellers.
China’s Shanghai Stock Exchange has experienced a 30% drop in market value in a month's time. The mainstream argument meant to marginalize this fact is that less than 2% of China’s equities are owned by foreign investors; therefore, a crash there will not affect us here. This is, of course, pure idiocy.
China is the largest importer/exporter in the world; and it’s set to become the world’s largest economy within the next two years, surpassing the United States. China’s economy is a production economy, and the nation is a primary supplier for all consumer goods everywhere. Thus, China is a litmus test for the fiscal health of the rest of the world. When Chinese companies are struggling, when exporters are seeing steady overall declines and when manufacturing begins to crawl, this is not only a reflection of China’s economic instability, but also a reflection of the collapsing demand in every other nation that buys from China.
Collapsing demand means collapsing sales and collapsing market value. For a global economic system so dependent on ever growing consumption, this is a death knell.
In the U.S., markets have experienced a delayed reaction of sorts, due in great part to the Federal Reserve’s constant injections of fiat fantasy fuel since the credit crisis began. This kind of artificial support for markets has become an expected and essential part of market psychology, resulting in utter dependency on easy money siphoned into big banks that then use it to bolster equities through massive stock buybacks (among other methods). Now, however, quantitative easing has been tapered and zero interest-rate policy is nearing the chopping block. The stock buyback scam is nearing an end.
Already, U.S. stocks are beginning to feel the pain as reality slowly nibbles away once dependable gains. There is a good reason for this - Wages are in constant decline; manufacturing is in steady decline; retail sales are in decline, and government and personal debts continue to rise. We are not immune to the financial chaos of other nations exactly because we have been railroaded into a highly interdependent global economic system. In fact, much international fiscal uncertainty is tied directly to the fall of the American consumer as a reliable cash cow and economic engine.
So where is this all headed?
Commodities tell part of the story, with oil sliding steadily, signaling what we in the alternative economic community have been saying for years: Fiat stimulus propped up markets (including energy markets) that should have been allowed to deflate long ago, and now we are suffering the consequences. Crude oil prices fell 19 percent in July alone as energy companies the world over scramble to adapt. Gold and silver have taken considerable hits to their paper value while physical purchases continue to skyrocket, meaning the street price of metals may soon decouple from illegitimate and manipulated market prices.
Smaller and some medium-sized economies will continue to “surprise” markets with volatile debt issues, like Puerto Rico (nearing possible default) and Venezuela (nearing certain doom). These are more canaries in the coal mine to watch carefully.
It is also important to keep in mind that prices on necessities including food and housing remain high despite deflation in other areas (like wages). This suggests we are in the midst of a stagflationary fiscal environment.
Centralization is the key to every single economic development we’ve seen since the 2008 crash. Venezuela, in particular, is a marker for where we are all headed: total price controls, food confiscation from farms, rationing and even computer-chipped ration cards in order to thwart any attempts by citizens to stockpile essentials. Do not assume that such draconian measures are limited to third world socialist hellholes. Or, at the very least, do not assume that a country like the U.S. is not on the verge of becoming a third world hellhole.
As for Europe, French president Francois Hollande has openly called for a centralized “eurozone government” in order to deal with the ongoing economic crisis there (something I have been warning about for several years). Supranational government is the endgame for sovereign humanity, and the EU is on the fast track.
In China, the march continues toward the inclusion of the yuan in the IMF’s SDR currency basket, the greatest economic centralization scheme of all time. The recent suggestion by an IMF panel to "delay" inclusion until 2016 only reinforces the likelihood that the Yuan will be entered into the basket. If the IMF had no intention to bring China into the fold, they would have suggested a 5 year delay just as they did back in 2010. For those who think China’s recent market crisis will somehow thwart their inclusion into the SDR, think again. The IMF has already announced that the market route in China will have no bearing on the SDR conference, which is set to end in November.
In the U.S., the markets wait for the Federal Reserve’s rate hikes. The rate hike issue is an underestimated one by some analysts, who seem to think that initial hikes will be "minor" and will result in little to no reverberations. Interest rates affect more than just overnight bank lending; they are the primary pillar supporting current market psychology. There is NO other financial element giving positive influence to investor psychology. There is no good economic news out there to warrant the bull market of the past few years. There is no open form of QE (and future QE seems unlikely as renewed stimulus would only be an admission that the first three attempts at QE failed miserably, derailing any point to new easing). There is no recovery. And when any even minor or engineered "good news" is presented in the mainstream, markets have reacted NEGATIVELY for fear that this will hasten higher interest rates.
Beyond psychology and false hopes, even minor increases in interest rates will essentially kill most large scale bank lending. We know through the limited audit of the TARP bailouts that trillions in fiat was created simply to feed international banks and corporations through ZIRP and that this kind of free money lending has been a mainstay ever since. ZIRP is the primary driver of stock buybacks and the equities bull market. But this will only continue as long as the Fed loans remain free (or almost free). Trillions in loans can equal billions in interest even with a minor rate rise, meaning, with the end of ZIRP and free money, banks and corporations will stop borrowing, stock buybacks will dissolve, and equities will lose the artificial support they have so far enjoyed.
Even mainstream financial news outlets are beginning to question why the Fed would push at all for rate hikes and pretend that the American fiscal system is in recovery, when ALL other information would lead the rational person to the contrary conclusion. I would point out that in order to understand central planners and globalist motives, you need to look at what they chase.
The Fed’s job is to destroy the U.S. economy and the dollar, not save them, which is why the Fed continues to deny economic turmoil and charges headlong into a rate hike scenario even though no one in the mainstream asked them to. The Chinese central bank’s job is to make all arrangements for Yuan inclusion in the SDR, despite the fact that China is supposedly in conflict with Western banks. The ECB and Europe are obsessed with centralized government even if they have to break several eggs to get it. And the IMF and Bank of International Settlements are set up to be the economic heroes of the day, warning us all (too late, of course) of the potential downfall of central bank stimulus policies and government debt obligations.
In a murky world of market fantasy, our first guideposts are the fundamentals themselves. Supply and demand can be misrepresented for a time through manipulated statistics, but the tangible effects of decline cannot be. Our secondary guideposts are the paths that internationalists and central banks bulldoze through the fiscal forest. To anyone with any sense, the endgame is clear: Total centralization is the goal, and economic fear is the tool they hope to use to get there. I have written on numerous solutions to this threat in past articles; but the first and most important action is for each of us to acknowledge, wholeheartedly, that the system we know is ending. It is over. What replaces that system will either be up to us or up to them. Only by admitting that there is an end to the fantasy, a painful end, will we then be able to help determine our future reality.
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written by Daniel-grig , August 07, 2015
Totally agree, we live in a esqhisofrenica illusion, a fantasy in a world paradicmatica the revers.
But the elite has a great plan developed-weighing and total centralization.
Until then there are stages to go through.
A stage or a solution formula that will offer the globalists, is the NEXT coin / currency / asset sovereign global reserve on SDRs to replace the dollar as international reserve currency.
This shift from a global unit of account to another unit that substituie to the first, is the backbone of all current movements in geopolitics.
This means that the garbage bag-inflation of the dollar, not going has tirrar but will have to save and go has put in another bag much larger garbage, which SDRs are called, through the debt restructuring sovereign of each country.
Thus the fiat system will continue for a few more decades.
Brandon think it would be nice if you write more about DEG, that there is only one blog in the world that is professional, continuous way, for almost two years this issue SDRs.
Only a blog, which is the blog of JC Colins.
His latest article is here http://philosophyofmetrics.com...s-freepom/
and agrees with you on the fact that the change of date for the inclusion of the yuan in the SDR basket, is only question of time and strategy.
written by Brandon Smith , August 07, 2015
@Daniel
I think JC Collins is doing a great job of spreading the truth about the SDR situation. Though, I would point out that I have been warning about the SDR longer than anyone else in the movement. Here is an article from 2011 under my pen-name (Giordano Bruno), and an article from Alt-Market in 2012:
http://www.infowars.com/economic-consequences-of-the-new-world-order/
http://www.alt-market.com/articles/784-how-the-us-dollar-will-be-replaced
written by Andy Sloan , August 07, 2015
The inclusion of China in the SDR basket is the completion of the spinal architecture for a One World currency/government.
However, there is likely an intermediate step before then. The "Elite" will use the next coming global crash to consolidate even further wealth into their hands. The accumulation of gold will be used to re-capitalise the BRICS nations and a new currency arrangement, will be instituted, which will suck capital dry from the West. Concomitantly the West will be left to founder in social chaos/civil war and this will provide a platform to remove more liberties and suffocate the will of resistance of Westerners - an absolute imperative for the globalists!!.
Then, the East Wing of the conspiracy;
"They [the Soviets] intend...to induce the Americans to adopt their own 'restructuring' and convergence of the Soviet and American systems using to this end the fear of nuclear conflict.... Convergence will be accompanied by blood baths and political re-education camps in Western Europe and the United States. The Soviet strategists are counting on an economic depression in the United States and intend to introduce their reformed model of socialism with a human face as an alternative to the American system during the depression."
Anatoliy Golitsyn - Perestroika Deception
The one amendment to this plan, will be an actual WW3 (we know this from Holy Catholic prophecy), predesigned, with the West choreographed as the "baddie".
(Excluding WW3), the plan is well laid out here;
http://redefininggod.com/understanding-the-nwo-strategy/
Amidst all the carnage, will come the antichrist, as related in the Book of Daniel, to "save the day".
Catholic prophesy has WW3 scheduled for 2017. Therefore, repent and get to confession, any non/bad Catholics and accumulate as much grace, while you still have the time!!
Matthew 7:24-27
"Every one therefore that heareth these my words, and doth them, shall be likened to a wise man that built his house upon a rock, And the rain fell, and the floods came, and the winds blew, and they beat upon that house, and it fell not, for it was founded on a rock.
And every one that heareth these my words, and doth them not, shall be like a foolish man that built his house upon the sand, And the rain fell, and the floods came, and the winds blew, and they beat upon that house, and it fell, and great was the fall thereof."
Invoke the Blessed Virgin Mary, for a sure path to Our Lord and salvation and for protection during what is to come (see Apocalypse 12).
See;
http://www.michaeljournal.org/secretrosary.htm
God bless all!
written by Useless Eater , August 07, 2015
You keep talking like this and nobody will listen. Believe me, I know.
Debt-free, interest-free, local competing currencies where the supply is increase alongside of the commerce created in the community. When alternatives crash (FRNs), the only thing left standing will be the aforementioned commodity-backed currencies.
Only problem is, in the beginning, we will be forced to protect is with our lives and only when blood is shed in defense of it will it have a chance to succeed. To keep it, we must never forget why we died and killed for it - like we have since the colonial script.
Gotta stop using the dollar (and all other central bank fraud notes). Gotta become independent from the government. Gotta withdraw our consent from them, too. Do these things (along with the killing and dying part) and we will have a small chance at surviving another five generations.
written by Enil Selnad , August 08, 2015
I believe that we may "MAY" be at the point where the collapse comes worldwide and the IMF/BIS declares one world governance and one currency where each person must have the proper mark to buy, sell and work. We shall see.
I don't know whether to pray for it to come or to pray that it does not.
His will be done.
written by wholy1 , August 08, 2015
1) " . . . but the first and most important action is for each of us . . ." [is to] REPENT.
2) the second is PREPARE.
3) the third is GIVE to fellow repentants in greater need.
If One has "prepared" physically, mentally, socially and spiritually, One has already established the parameters of "needs" to other Repentents still unprepared.
What are "the Blessings from the Beginning" being revealed?
Are You having fun yet?!
written by Andy Sloan , August 08, 2015
"Another major event to occur under the ‘Long-Range Policy’ involves China. Watch for the Chinese Communist government to ‘collapse’ due to a manufactured economic crisis in several years (circa 2015). This prediction comes from Golitsyn’s second book published in 1995, The Perestroika Deception. In it Golitsyn says about China on page 166:
“A campaign for a new system of World Government will be launched at Summit level and will be accompanied by pressure from below, the active use of agents of influence and secret assassinations of leaders who are seen as obstacles. The campaign will come as a surprise to the US Administration. In the ensuing negotiations, the US President of the day will find himself facing a combined pressure from the Russians and the Chinese. The Chinese will by then have adopted a ‘reformed’, pseudo-democratic system.”
So, according to Golitsyn, the new democratic government to arise in China will be controlled by the Communists from behind the scenes."
Part of the reason China has been made such a economic powerhouse, is so when it is deliberately collapsed it will be a major instrument (one of several - including the mining of the world economy with unregulated derivatives) in collapsing the West. Thus Michael Pento's solid analysis as follows;
http://kingworldnews.com/the-deflationary-implosion-on-the-road-to-full-blown-global-collapse/
God bless all!
