Monday, March 17, 2008

the Storm Is Coming

The Storm Is Coming

“IMF chief says contagion risk ‘very high’ By Reuters, March 17 -The global economic outlook is worsening and the risk of contagion from a financial markets crisis that began in the United States is now very high, IMF chief Dominique Strauss-Kahn said on Monday. At a news conference in Paris, he welcomed the overnight steps taken by the US central bank and said the International Monetary Fund would be cutting its growth forecasts again soon. He also said the European Central Bank and the US Federal Reserve were managing the market liquidity troubles very well, and that the situation in currency markets, while tricky, did not in his view call for central bank intervention. “Obviously the financial markets crisis which started in the United States is now more serious and even more global than it was a few weeks ago. The risks of contagion are very high,” he said.” http://www.ft.com/cms/s/0/86e11670-f41b-11dc-aaad-0000779fd2ac.html?nclick_check=1

The economic climate is worsening daily. It is getting so bad the IMF is now predicting the failures and defaults will spread globally. Of course the US corporate mind control apparatus suppressed the story. The ruling oligarchy doesn’t want the sheep to know we are about to be sheared big time. Because when the smoke clears nothing will be the same. There will be a humongous transfer of wealth from the working and middle class to the rich. The standard of living will plunge dramatically and a police state will be instituted to keep the masses from striking out against those who sold them into debt serfdom and wage peonage.
If you really want to know what is going on you have to seek out alternative sources like the foreign media, the Internet or shortwave radio. I do not relish being a harbinger of ill tidings but the Anglo-AmeriKKKan economic system and its appendages around the world are imploding like a supernova. We can see the initial collapse in the housing, credit, credit card and auto industries, it is spreading as unemployment rockets and consumption slows. Now some are saying we are heading for a depression. At the very least given the Federal Reserve Bank’s ( a privately owned banking cartel that sets Us monetary and credit policies) response to the crisis; printing more money and lowering interest rates to save Wall Street at the expense of the US dollar, we will experience hyper inflation as the Fed prints more and more money making it less and less valuable. We will see economic paralysis as credit continues to tighten, economic expansion freezes, unemployment skyrockets and the housing and debt implosion worsens.
The failure of one of the biggest and oldest investment houses on Wall Street, Bear Sterns has caused a sense of foreboding and fear. JP Morgan Chase rushed in to gobble Bear Sterns up while the Fed is using worthless bonds and defaulted mortgages as collateral to lend to cash strapped commercial banks so they don’t slip into insolvency due to the crescendo of bad loans and mortgages they have been forced to eat. To add to the crisis on Wall Street and the commercial banks, the Shadow Banking System (made up of unregulated hedge funds, speculative futures trades and bets, derivatives and other exotic financing schemes) is experiencing meltdown tremors. It all started with the collapse of a Bear Sterns hedge fund last summer. Then last week assets from the Carlyle Capital Fund were ceased as they defaulted on over sixteen billion dollars worth of loans and counting. Keep in mind Carlyle Capital is an affiliate of the Carlyle Group, the very well connected and successful private equity firm where George W Bu$h’s father and many other global “leaders” are major players. Carlyle Capital’s failure raised eyebrows and questions about the health of hedge funds in general. The prognosis is not good. Fear about “contagion” is spreading globally. Several other major hedge funds are on the bubble and bubble is about to pop. “Justin Urquhart Stewart, co-founder of Seven Investment Management, said he expects to see more funds blow up as credit lines disappear and lenders become more cautious. ‘Lending that might have been available three months ago just isn't there any more,’ Urquhart Stewart said. Edmund Shing, a strategist at BNP Paribas, said a ‘raft of hedge funds’ with similar investments are also shutting up shop. The forced sale of Carlyle Capital's assets is a concern because there aren't many buyers around, he added.’” ttp://www.marketwatch.com/news/story/carlyle-capital-verge-collapse-talks
The Fed’s policies have impaled the US dollar and now other currencies are threatened. The IMF is worried the toxic loans and defaults will spread. Evidence seems to validate their fears. The only things keeping the US stock market afloat now are the massive amounts of money being injected into it by the Plunge Protection Team and Fed in addition to the usual inflow of global drug money and money laundering from the various crime syndicates and covert government agencies. Things do not look good and the sooner we brace ourselves and prepare for a worst case scenario the better. If ,like the Y2K scare, it doesn’t come to pass, so much the better. But I think this is a real crisis and to be unprepared is to court disaster. We need to call a symposium or working/study group to come up with solutions that help our people survive the coming economic tsunami. If we don’t, we could be looking at nation wide Hurricane Katrina type devastation, only without the, rain, wind and water.

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