“But why did it take so long for the banks and the mortgage bond market to realise the scale of the problem that sub-prime lending would cause? The main reason was that the new system broke the link between the lender and the borrower. The institutions who owned the loans - the people who bought bonds - had too little information about how dangerous they were.
They relied on the ratings agencies to reassure them that the complex mortgage bonds they were buying were indeed investment-grade. But those ratings agencies did not understand how, under conditions of "stress," i.e., falling house prices, those bonds would fall in value. And since most pension funds are managed by several different fund managers who all compete with each other to get the best quarterly rate of return, there was a strong incentive to buy as much as they could of these supposedly safe yet high-yielding bonds.” Carnage on Wall Street as loans go bad By Steve Schifferes Economics reporter, BBC News, New York http://news.bbc.co.uk/2/hi/business/7086909.stm
The ancients understood the relationship between cause and effect. Our African ancestors postulated the connection/nexus between all there is and an unseen source/cause. They also recognized that certain laws and principles seemed at work in all areas of life and existence on this planet. One of the laws they articulated was the law of Karma, also referred to as the Law of Sowing and Reaping, Cause and Effect. In modern times the ruling elites and their flunkies have worked assiduously to obfuscate and minimize the importance of this great Law. They deliberately attempt to pooh pooh Karma and make is seem as if things happen willy nilly, that there are no causative factors at work on the physical plane. Hence Western culture eschews teaching metaphysics and the Law of Cause and Effect. That is why most AmeriKKKans are clueless about what is going on in the macro and micro-economic spheres. The ruling elites’ mind control machine is working overtime to keep us dummied down, distracted, discombobulated and totally unaware of the why’s and wherefores of the current economic and political meltdown. The fact of the matter is, the mortgage and credit crisis that is engulfing the global economic system has its roots in greed, deception and fraud at the highest levels of the investment, banking, media and governmental establishments (which for the most part are all interrelated and interdependent upon each other.).
This is what happens when truth is deliberately suppressed so a few insiders can fleece the masses by creating and executing policies they know will result in their enrichment at the expense of massive hardships, privation and suffering for the people of the world. This crisis is systemic, the cancers of greed, avarice and heartlessness are spreading aggressively throughout the global economic system. They now threaten to devolve global capitalism into a worldwide economic catastrophe not seen since the 1930's. “A remarkable work conducted by Thomas Piketty and Emmanuel Saez on the evolution of high revenues in the US, shows that the revenue disparity ratio is now comparable to what it was on the eve of the Great Depression at the end of the 20s. According to this work, the revenue ratio between the richest 0.01% richest and the poorest 90% lingered around 170/180 all along the years 1950 to 1980, and lept to 880 in 2005, i.e. about the same level (891) as in 1928. According to LEAP/E2020, beyond the mere economic analyses, such a situation corroborates the idea that 2007 will signal the entry of the US into the « Very Great Depression » because it conveys tremendous social and political tensions, already illustrated by the amount of foreclosure evictions that the economic recession will multiply even further. The US society is being split into two groups, one poor and the other very rich, with the middle class about to fall in the poor group. Thus, according to our researchers, the on-going economic trends, because they relate to heavy historical trends affecting all social and economic balances for many decades, convey a increased devastating impact. As we indicated in the previous issue of GEAB, the 1929 crisis happened in a historical context of US ascent. Underlying fundamental trends were therefore favourable to the United-States. The current depression takes place in the opposite historical context. In April 2007, as we pass by the tipping point of the global systemic crisis, trends speed up and their impact intensify and become visible to each and everyone. The recent example provided by Circuit City Stores, second largest U.S. consumer electronics retailer, leaves no hope for the contrary. Indeed, at the end of March, the company announced that it would lay off 3,400 sales workers, or 8.5 percent of its in-store staff, due to excessive salaries (10-11 USD per hour) and hire an equivalent amount of lower-paid workers (8 USD per hour): downgrading the middle class to the lower class, this type of process also presents the statistical advantage to raise employment figures.” A Chronicle of America's Very Great Depression – Two growing trends: A historical reversal of global financial balances / An implosion of the US society - Public announcement GEAB N°14 (April 16, 2007) - http://www.leap2020.eu/A-Chronicle-of-America-s-Very-Great-Depression-Two-growing-trends-A-historical-reversal-of-global-financial-balances-An_a570.html
This is Karma, the natural consequence (effects) of the policies created by the banking, financial and media elites. The chickens are coming home to roost big time. Unfortunately Joe and Jane Sixpack. Pookie and Shanaynay have no clue what is about to befall them. They acknowledge it is harder to make ends meet as the ends keep getting further and further apart but they don’t want to accept the fact that these conditions were deliberately created to suck them into a vortex that will eventually turn their worlds upside down. “The US economy and society currently floats on the false assumption that it is possible to perpetually borrow increasing sums of money from the rest of the world, to pay for ever-increasing manufacturing and energy imports, while the price of those imports steadily escalates. In particular the US economy and polity floats on the notion that free money (fiat petro-dollars and US Treasury notes) will always be able to buy energy imports from foreign lands. This use of free money equates to FREE energy. But good things don't last forever and so the US's free petro-dollar scam is a transient condition. Once the US dollar loses its world reserve currency status based on its role as the petro-dollar (as is now happening) the flow of FREE energy to the US will cease and much of the US economy will be forced to shut down. Fuel shortages will precipitate shortages of food, medicine, and countless consumer items, outages of electricity, gas, and water, breakdowns in transportation systems and other infrastructure, hyperinflation, widespread shutdowns and mass layoffs, along with a lot of despair, confusion, violence, and lawlessness. Moreover, there is no evidence that the US governing elite has any grand rescue plans or innovative technology programs with which to prevent the coming socio-economic catastrophe, nor does US society evince any signs of manifesting any miracles of social cohesion during the impending economic implosion.
US society is based on money. In the coming economic collapse the governing elite is already fuelling that collapse by pumping excessive quantities of virtual (credit) money into the banking system. The result will be hyperinflation, which wipes out savings. As oil and
other import prices escalate they will be accompanied by rampant unemployment, which wipes out incomes. The result is a population that is largely penniless. As most employment in the US is in the private sector, the transition to permanent unemployment of much of the workforce is likely to be sudden as businesses rapidly shed workers in an effort to stay viable, or go into liquidation.” Preparing for the Coming US Economic Collapse By Ron Chapman http://abundanthope.net/pages/article_834.shtml
I am not sharing this to frighten you or to cause you angst and anxiety. This is to prepare you for the rough times ahead. They are coming and there is nothing you can do to prevent them. (This is our Karma, we wrought this on ourselves by our willingness to go along with the okey-doke). However you can be proactive and prepare yourself to survive and thrive amidst the turmoil and chaos that is coming. First, do not be afraid, do not panic. Develop an action plan a practical survival plan for yourself and extended family. Start getting your finances in order. Balance your household budget without using credit cards to buy necessities. Stop trying to keep up with the Joneses. Make plans to get out of debt as soon as you can. Find out the most practical ways to do so and begin right now!
Stop spending frivolously. Don’t think the banks, credit card and finance companies you owe money to won’t come after you; they will because they will have to recoup their massive consumer losses. They will have the corrupt courts on their side!! Get with conscious folks to plan how to survive: start food co-ops and buying clubs, learn how to fix and repair things and help each other out. Decrease your spending, wear warmer clothes and reduce your household thermostat to save on energy costs. Cut back on eating out and start planning nutritious meals and cook at home. Hold off taking on any new debt, keep your current car unless it is a gas guzzler. Go on an austerity plan, adopt a psychology of thrift rather than one of conspicuous consumption. More importantly take care of yourself and your family, eat nutritious foods and exercise more and be more active doing simple inexpensive fun things together.
Do not despair, think good thoughts, do not panic and do good deeds as you prepare to transcend the catastrophe the ruling elites intend for us. We can alter our Karma but it will take a concerted conscious effort to do so.
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posted by Junious Ricardo Stanton @ 11:51 AM
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