What you know, what you suspected, and what the facts are.
Dr. A. H. Krieg Feb 1 2015
You know unless you are comatose that we now have a national debt (on the books) of $18.6 trillion. What you probably don’t know is that all those quantified easing’s and monthly $85 billion and then $50 billion infusions into the economy add another $7.3 trillion. I suspect that you are aware that the government has unfunded liabilities but you probably don’t know that the entire American economy produces $14.6 trillion but we have $127 trillion of unfunded liabilities. You might if you believe Obama think America is on the mend, however our actual last quarter 2014 lost more corporations than were created, this is the first time this has happened. Actual GDP growth is now 0.03%, in other words its flat. While Washington keeps telling you that we have a 6.5% unemployment rate, they don’t tell you that the new rating system is different from the old used prior to 2000, using those numbers the unemployment rate would be 14.8%, if however we use ShadowStats ® which counts everyone, the real unemployment number is 23.3%. Every month they report new jobs created, they never tell you that in order to keep up with population growth we need 220,000 new jobs every month. The power elite informs you that unemployment is no longer a problem; they don’t tell you that we have 230.000 fewer private sector employed Americans in 2015 than we had in 2008. They don’t tell you that while government employment in the last six years grew by 6.5% private sector employment fell by 5.6%. They tell you not to worry about the national debt its only paper---sure so long as they can keep the prime interest rate (that’s not your rate, it’s the one bankers get) at 0.25% but if they raise it to over 2.5%, collected taxes will not cover the outstanding interest rate on the debt. The amount of money in circulation, they say is of no consequence, but the velocity of the falling value of the dollar is now so high that it cannot be stopped. In the last 14 -years since Bush and then Obama has come into office the plummeting value (purchasing power) of the dollar has fallen to a level below that of the height of the Great Depression of 1929. In both depressions progressives were at the helm, in fact progressives have been in political power every time we had a depression. Statistically speaking, the velocity of the dollar purchasing power in 2014-15 is identical to the 1929 fall. The so-called misery index in 1929 was 20 today its 33. The FRS is broke, they have no gold, Fort Knox is empty, you don’t believe it, well then tell all of us, why the FRS and the Treasury are opposed to an audit of their books or an audit of their gold holdings. With an existing debt load of $26 trillion on the books and $127 trillion in unfunded liabilities, the FRS has a cash reserve of only $56.2 billion, not even 1% coverage. The FDIC is broke, just in 2014 they increased banks fees for coverage by over 100%, they have a cash reserve of below 1% of the outstanding exposure. In 2008 the FRS was leveraged at a 22 to 1 ration today they are at 77 to 1. Americas’ and the worlds banking systems are leveraged to the hilt; hedge funds dominate the debt, which just for American banks exceeds $60 trillions. The banking situation is atrocious; debt of American commercial banks is expanding at 30 times the rate of economic growth, which is non-existent. To put that in real terms, for every dollar of economic growth the banks create $30 dollars of paper. Inflation contrary to the reported government number of 1.4% is actually closer to 10%. The stock market propped up by the “Plunge Protection Team” and banks which are borrowing from the FRS at .025% and gamboling on the stock market clearing 7%, demonstrate a market cap of 203% today, but prior to the Bush crash was at 204%, prior to the “Great Depression it was 87%. Today the major banking enterprise is derivative trading while the entire world GDP is 72.6 trillion dollars global banking derivative trading is $710 trillion. This is not gambling this is Russian roulette with your money. While you are reading the sell-of has begun. Billionaires and millionaires are buying old antique cars and art by the ton. The exodus of the rich has become colossal, hundreds of Americans every month, are dumping their citizenships, moving to nations whose taxes are lower. Businesses are moving over seas to escape the highest corporate tax rate in the world. Private individual stock ownership is declining, the only buyer in the markets are The Plunge Protection Team, multinationals, banks, politicians, and market traders.
While all this transpires the BRICS (Brazil, Russia, India, China, and South Africa) are hard at work undermining the dollar. Since October 2014 the Russians have dumped $125 billion of treasury notes, China has dumped $ 500 billion, they are buying gold with the cash. . The Plunge Protection Team then began purchasing US treasury paper through a phony front organization in Brussels, about one trillion dollars worth so far. At the same time the BRICS are creating a fund to compete with the International monitory fund and are providing non-dollar denominated loans for raw material purchases by third world nations. Belgium, Switzerland, France, and Germany have requested return of gold deposited with America during the cold war, the FRS lacking the gold has promised paying the gold out over the coming 7 years. The Heinrich Kissinger, created Petrodollar under Nixon, vastly inflated dollar value up 500% 2002, but just since 2002 the petrodollar has fallen back, and is now in limbo. Market capitalization in May of 2014 was $10.5 Trillion today it’s $ 2.5 trillion a fall of 42%. The world reserve currency is the dollar, for now, but not much longer. A reasonable assumption would be that collapse of the dollar as world trading reserve currency and its replacement by something else’s will take place in the coming two years. Central banks especially in Europe and Asia are dumping dollars for gold. The surge of gold increases in non-American central banks is about 400% from 2008 to 2014. Some nations especially China, Russia and India have gold reserves that are much larger than what they officially report. China is now assumed to hold the largest gold reserves in the world at least double of what they claim publicly. Additionally China’s shadow banking system has grown from 0 in 2005 to $7 trillion in 2014. China has so expanded construction through their shadow banks that construction in China is now double that of America. This is not a stable policy, it is what took place here, and the great housing bubble was the result. It will eventually lead to a housing collapse as we had but much worse because their mortgage debt is equivalent to about 18 years of average workers income, ours when the bubble burst was only 4.3 years.
With the FRS leveraging their balance sheets at a factor of 77 to 1 and the IMF at 3 to 1 we can surmise that something is due to fail. While the EU has an estimated 10,784 tons of gold to back the Euro, America’s claimed gold holdings of 8,134 tons are a hallucination. While this is all taking place, the Euro is gaining on the dollar and Germany is now purchasing oil and gas for Euros. At the same time the Caliphate is selling oil below market in any currency, India is buying in Rupees, Iran, Venezuela, and others is trading outside the reserve currency. The Petrodollar is dead. The FRS is no longer able to maintain quantetive-easing policies and a debt-backed dollar is an illusion, because no one will purchase dollar debt any longer. All this can be verified from an extrusive report of the US intelligence agencies called Project Prophesy.
P.S. As most of you know I was employed in the now destroyed American machine tool industry (Free Trade) for 40 years. I also had a machine shop in NH that I sold when we moved south. Just exactly how bad thing are, was made clear to me on Friday morning. I wanted to sell some left over measuring tools, Micrometers etc. and a boering head. What I found in Sarasota was four burned out machine shops, over 2 dozen closed shops, and no one having the cash to purchase even a set of gauge blocks. Not one place that actually repaired anything, they just exchange parts. I do not know if you understand how serious this is; but let me make it clear to you. If our transpiration system fails the or grid goes down, trans-Atlantic and Pacific trade is interrupted America will be dead in the water then moment parts run out.
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