by Mark Sircus Ac., OMD
Director International Medical Veritas
17 October 2009
Did you know they had some warning at Pearl
Paul Craig Roberts was Assistant Secretary of the Treasury in
the Reagan administration. He is coauthor of
The Tyranny of Good Intentions.
“The worst part of the decline is yet to
come. Bank failures and home foreclosures are yet to peak. The
commercial real estate bust is yet to hit. The dollar crisis is
building. When it hits, interest rates will rise dramatically as the US
struggles to finance its massive budget and trade deficits while the
rest of the world tries to escape a depreciating dollar.”
Once the majority of voters and special
have an interest in increasing spending
– even by borrowing –
rather than in limiting taxes and debt,
the game is practically over.
A second leg down in the U.S. economy is all but
certain and we won't have to wait long to see how things are going to shake
There are many likely triggers for the next
phase of the crisis and likely they will merge and rise up against us in a
simultaneous assault on our present system and way of life. It may already
be "dire" and "severe" out there but it's going to get a whole lot worse.
Now that the Dow has pierced the 10,000 level
we are ripe for a steep ride down where a lot of people are going to
lose a lot more money.
The U.S. has balanced its budget
only five times in the past 50 years.
The four straight years of surpluses
starting with 1998 now look like a
Our next crisis, due sometime soon (any
day, week or month now; for many millions it is already here), will likely
be much more dangerous than what we saw in the fall of 2008; and its
probably going to come on like an unannounced force five tornado but the
government and the media have been sounding the all clear sirens for months.
Jim Sinclair and others on the other hand
are riding down the virtual streets like Paul Revere did on his horse
“Everything we have discussed here for many
years is NOW taking place. Everything we have suggested is coming is NOW
on your doorstep.”
California is on the verge of becoming
the first failed state in America.
Professor Kevin Starr
Karl Denninger asks,
“Is It Time to Recognize Reality?”
We are at a rare moment in history and events
will come on at dizzying speed.
“Every nation that has ignored the
foundational principles of sound banking and credit for a sufficient
period of time has suffered either severe economic depression or
monetary collapse. There are no exceptions.”
“The real threat to national security lies
in the finance sector rooted in Wall Street. Almost all talk about
foreign threat is a grand distraction from the internal threat, even as
incredibly grand fraud is committed in the name of patriotism,” writes
Richard C. Cook says,
“The U.S. is increasingly in a state of
political, economic, and moral paralysis, caught as it were between the
“rock” of protracted recession and the “hard place” of terminal
government debt. The underlying cause of the crisis is in fact the
debt-based monetary system, whereby the U.S. ruling class long ago sold
out our nation and its people to the
international banking cartel of which
Rockefeller and Morgan interests have
been the chief representatives for over a century.” 
Congresswoman Marcy Kaptur makes a
compelling case of a Financial Coup
New York’s Wall Street is stealing the
rest of the country blind;
California is going down hard
as the bankers ride home laughing in
Richard C. Cook says,
“Bankers, mainly those in the U.S., have so
shattered the world economy by debt mounted on debt that there may be no
reprieve except the creation of a slave society based on rule by the
rich over the masses of whatever peons should happen to survive the
downturn and its tragic effects on employment, health, the food and
water supply, and even our ability to cope with climate change.”
Did you know that some people think the
biggest bank robbers are the banks themselves?
The real crooks are the bankers and they
hold top positions in the American government.
Jerome Celente’s audio gives a birds eye
view into all of this.
Bankers are literally pillaging and raping
everything around them, something they are good at because it is
something they have always done.
Humanity has been lead to slaughter (wars) for
over two hundred years in a fashion that the banks have profited handsomely
from; and the fractional reserve banking system, creating money from nothing
and charging interest on it, the biggest crime scam in the history of our
race, which few have the courage, intelligence or perspective to fight
against even in their imaginations.
Now Americans are having to face the unpleasant
fact that its economy has nothing to show for all the bailout money borrowed
and spent but we are supposed to be happy because at least the wealthy have
been bailed out.
On 7 December 1941 the greatest disaster in United States history occurred
but now we have certain banking interests that have surpassed the infamy of
that attack through a financial attack on the entire nation. In the
attack at Pearl Harbor less people were
killed then at
the World Trade Center.
The present suffering and the tidal wave of pain
that is arriving for uncountable millions is an infamy that will ring down
through future ages but the bankers don’t really care and they really do
love their limousines.
Many Americans do not see a threat from
They see a threat from greedy corporate interests
that allegedly own governments, like our own.
Jeffrey R. Nyquist
Of course it is not the United States alone that
is facing the financial hangman.
The Baltic States are once again in the eye of
the storm after leaked reports that Sweden is bracing for a full-blown
economic and political "breakdown" in Latvia with financial markets
elsewhere in the region are likely to be hit by contagion, with Hungary,
Romania, and Ukraine most vulnerable.
The Svenska Dagbladet newspaper said
Sweden's finance minister Anders Borg had told banks secretly
that Latvia's political order was unraveling, advising them to prepare for
the collapse of Latvia's rescue talks.
Gov. Paterson will propose $2.5 billion
in budget cuts today - primarily in health and education - to close a
mushrooming deficit the controller says could hit $4.1 billion.
Asked to describe the latest round of
proposed budget cuts, Paterson had a one-word answer:
"It's going to be pretty grim," Paterson
told the Daily News.
State tax collections are continuing to take a
dive and this is a huge blade beginning to further gut the American economy.
Our financial system and
fiat money will soon be toast so I am
sounding the emergency horn and am pushing hard on the button.
But, “Exuberant markets and slap-happy
finance ministers, combined with record profits at the investment banks
of Mordor/Wall Street, are supposed to convince us that the worst is
over, calamity has been averted, and with sober and moist eyes we roll
up our sleeves to prevent the ghosts in the machine from re-emerging.
A more masterful symphony of optical
delusion has never been conducted, and the invisible puppeteers
manipulating the strings of marionettes Ben Bernanke and Timmy
Geithner are smug in their continued anonymity,” writes James
West, who says we better “prepare for the next leg down.” 
West also reminds us that,
“The long term deterioration of the U.S.
Dollar has been underway for decades.”
The only thing preventing a dollar collapse it
seems is an international race to the bottom in terms of paper currencies;
meaning if the Americans are doing it everyone feels compelled to play the
currency debasement game.
If this recovery continues long enough
be a single person left in America who still has a job.
The economy is growing weaker not stronger
and central banks are already in a panic over the severe backwardation of
gold, meaning to cover short positions certain banks are offering up to
1,250 dollars an ounce in paper currency instead of having to deliver on
physical gold that they don’t have but legally should.
“Indeed, the disposition of Western central
bank gold reserves is a secret more closely guarded than the blueprints
for the manufacture of nuclear weapons,” writes Chris Powell.
“There is a headline that has been all over the media ever since
September 2008,” Amerman continues: “Bank Bailout Will Soak Taxpayers.
As obviously true as this headline appears to be, it is in fact,
dangerously misleading. Indeed, as we will cover in this article, the
idea that taxes will pay for the bailout is ludicrous, an insult to both
your intelligence – and your net worth. Instead, the real source of the
bailout monies will not be the taxes you pay, but the value of your
The value of your checking account, the
value of your IRA or Keogh, and the value of all your investments are
the true source of payment for Wall Street’s reckless mistakes. When we
combine the bailout with the trouble the US was already in, the result
could be a 95% reduction in value for all of our savings, retirement
and otherwise, as we will illustrate step by step in this article.”
What is certainly coming is a collapse of
entitlement programs and pension plans and this will hit hard.
Real money, real value is being sucked out of
the masses but there is only so long this funny money con came can last
before the dealer steps up and says game over, collect your chips, but then
you find out at the cashiers window those chips are worth nothing.
I am a firm believer in the people. If
given the truth,
they can be depended upon to meet any national
crisis. The great point is to bring them the real facts.
Financial analyst Max Wolff says,
“We have done almost nothing to solve any of
our structural economic problems. In our ‘recovery’ of the last six
months, we have seen the lives of the bottom 80% of Americans get harder
The long-running positive mood that has
prevailed these past few decades is on its last legs and we should have
compassion for the resistance people put up to seeing what is laying ahead.
It is not going to be a joyous time as modern
civilization passes through its zenith to face a hard downturn and entrance
into what can only be described as the most treacherous moments ever for
The data confirms that government
stimuli are worsening the
structural imbalances underlying our economy. The recent
'rebound' in GDP is not resulting from increased economic output,
but merely from the fact that we are borrowing more than ever.
Though hyper inflation/currency collapse is
still a future possibility the short term has credit and debt collapse on
the table. The debts are simply too overwhelming so stand for all hell to
Most officials are still counting on a recovery
proving human penchant for fantasy.
“To claim that the system can be put on
proper stable footing is lunatic. To expect that the nation can be
recalibrated so as to return to the Good Ole Days of US global dominance
and leadership is lunatic.
To urge that the economic signposts,
megaphones, and billboards be once again guided by policies best
described as Bubbly Economic Mythology is lunatic. Yet delusional
Americans actually believe the dominant ship at sea can lead as
flagship, when it has taken on more water than the Titanic,” writes Jim
World Bank in October warned the
economy was on unsteady legs, saying that 2010
would be "a highly uncertain economic year."
Talking about the federal budget deficit, which
tripled to a record $1.4 trillion for the 2009 fiscal year 
that ended at the end of September, House Minority Leader John Boehner,
"This new CBO data makes it clear that our
children and grandchildren will end up buried under a mountain of debt
if we continue taxing, spending and borrowing at these dangerous levels.
How many alarm bells have to be set off before Washington Democrats get
serious about tackling dangerous budget deficits?"
A million seconds is 11.5 days. A
billion seconds is
about 32 years. A trillion seconds is 32,000 years.
John Allen Paulos
It is no small thing that the United States
government fiscal deficit is running at a trillion and a half dollars a
There are other big threats that could trigger a
180-degree change in the trajectory of our lives though. Collectively we are
living in the shadow of some terrible bombs besides the nuclear ones, any of
which could go off at any time and set in motion a truly catastrophic change
in the human collective.
There is the debt bomb, the climate bomb
 and an agricultural bomb ticking away and of course there is the
medical bomb with
the pharmaceutical companies keeping up the
race with the banks to suck the life blood out of the public.
Instead of a recovery it seems that
the misery is just getting started.
We have flooding conditions (central banks
around the world are creating fiat money) yet most people today are
suffering from monetary dehydration.
What is beyond our imagination or courage to
imagine is right around the corner so expect to receive the blow of a two by
four right on the nuke of your neck unless you prepare.
The changes that are coming will be difficult
ones, the kinds that “just drain the heart right out of you," said the son
of a ninety two year old woman forced from her nursing home.
We have reached the end of our rocket like ride to riches and have passed
the apex of our financial and economic trajectory.
The wealth of the entire world is still
contracting forcibly with the next leg downward destined to be especially
In his 1982 book
Infamy: Pearl Harbor and Its Aftermath,
Pulitzer-prize winner John Toland reveals that almost everything the
Japanese were planning to do "was known to the United States" on the
morning of the attack, via intercepted messages never communicated to
commanders at Pearl Harbor. President Roosevelt (FDR) provoked the
attack, knew about it in advance and covered up his failure to warn the
FDR needed the attack to sucker Hitler to
declare war, since the public and Congress were overwhelmingly against
entering the war in Europe. The US was warned by, at least, the
governments of Britain, Netherlands, Australia, Peru, Korea and the
Soviet Union that a surprise attack on Pearl Harbor was coming. All
important Japanese codes were broken. FDR and Marshall and others knew
the attack was coming, allowed it and covered up their knowledge.
He needed massive public outrage and that
required big sacrifice. Roosevelt saved all the important elements of
the fleet. In the spring he had sent many ships to the Atlantic. He kept
the aircraft carrier Saratoga on the West Coast. And his sending of the
two carrier groups out of harbor meant that not only they but also their
fast escort ships would be saved - all the new ships stationed at Pearl
Harbor were saved.
Only WWI junk was left in harbor.
 The BBC is weighing in on global cooling meaning the mainstream
press is finally working out that the entire climate debate about global
warming is about to collapse so they had better get ahead of the game
and come clean with what is happening with the sun and what that means
for planet earth and all the people on it.
global warming gig has played itself
out and has only gone on as long as it has because climate change was a
weapon for more mass taxation. Global warming takes a holiday as heaters
across the country seemed to go on much earlier than usual. Stunning
records for cold were set across the nation increasing the demand for
heating fuels over the weekend.
The Chicago Marathon, according to the
Chicago Tribune, had its coldest start since a 33 degree low in 2002
which they say was a far cry from 2007 when temperatures soared into the
upper 80s and officials canceled the marathon after 3 1/2 hours into the
event. In Denver it was reported that an arctic cold front moved in and
broke a cold temperature record that stood for 104 years. In fact last
Friday the 9th of October Denver saw temperatures plunge 23 degrees in
five hours setting the stage to make that record low.
There were record lows in many parts of the
country like Wyoming, Utah, Illinois and Iowa and if records were not
broken in many areas it was extremely close.
"We are certainly in a deflationary state,"
said David Rosenberg, chief economist and strategist with Gluskin Sheff
and Associates in Toronto. "Of that, there's no doubt. I think people
still have no clue as to just how weak the economy is," Mr.
Rosenberg said. Remove the "impressive medication" administered by
governments, and most economies are at a virtual standstill.”
On October 6, 2009, the entire world saw
how quickly the value of the US dollar
From that day forward, central banks and
will include in their financial planning
the risk of the failure of the US dollar.
From now on, the US dollar is on a
Patrick A. Heller
“The pain of allowing Lehman to fail will be
dwarfed by the agony of bailing out the rest of Wall Street, which is
now a foregone conclusion. Just because the Lehman bankruptcy created
unpleasant consequences does not mean it was a mistake.
On the contrary, sometimes doing the right
thing hurts – especially if it is done to avoid even greater pain down
the road. It just seems that our representatives are incapable of asking
for short-term sacrifice. There is no price they are not willing to
force the rest of us to pay to assure their own reelection,” writes
Spain is sliding into a full-blown
economic depression with un-employment
not seen since the Second Republic of
and little chance of recovery until well
into the next decade.
“Investors are celebrating an incipient
“recovery,” but the interventions that were responsible for it are
sowing the seeds of a more violent contraction down the road. The
problem, quite simply, is debt. We’ve accumulated record amounts, yet
many economists tell us we need more,” writes Rolfe Winkler who
continues saying, “Leading the charge is
Paul Krugman. He exhorts us to borrow
our way back to prosperity, but he doesn’t acknowledge that his brand of
Keynesian economics ignores the consequences of debt. If you look at a
chart of America’s total debt burden, he’s leading us over a cliff.”
If we refuse to allow the economy to experience
a real recession, we will never have the benefit of a real recovery but our
leaders are resisting such an experience with all their might.
There is no question that the sense of panic has
temporarily subsided in public but the underpinnings and reality is
deteriorating as the recent jobs report in the US revealed to everyone.
“Is there anyone in Washington DC, besides
Ron Paul, who is sincere in action,
character, and utterance? Truth is no longer practiced in Washington DC.
Political agendas are forced upon American citizens through the exercise
of lies, deception, half-truths, and fear tactics,” writes James Quinn.
Truth will ultimately prevail
where there is pains to bring it to
The truth is that over the last six months,
notices of home foreclosures have been running about 350,000 a month, which
is over 4 million a year.
Bigger loan losses lie ahead.
The actual total losses to come is anyone’s
guess, but the $11 trillion in outstanding home mortgages could easily
produce over $2 trillion in defaulted mortgages, and another $600 billion of
“For my part, whatever anguish of spirit
it may cost, I am willing
to know the whole truth; to know the worst and provide for it.”
And that says nothing of the trillions of
dollars in commercial real-estate losses the present financial system is now
weaker then at the end of 2008 so hardly in a condition to weather the even
greater storms coming over the horizon.
Millions of Americans have gone from feeling
safe and secure to having nothing. Millions more are feeling a whole lot
poorer relative to their past experiences of wealth. People are hunkering in
not expanding out their chests and emptying out their wallets at the mall.
What was life in the west will never be recovered. No recovery is even
imaginable until all that is present and corrupt crumbles.
There will be a tipping point in the near future
when the public wakes up from this massive scheme and robbery happening on
Wall Street and the government it has hijacked.
Japan's exports tumbled 36 percent in
August - with car shipments
falling by half - and imports also
contracted sharply showing the world's
No. 2 economy
remains mired in a deep tailspin.
“Historically, a collapse in the value of a
currency necessarily forces a major redistribution of wealth, and the
segment of the population that is most devastated by this seems to
always be the same. It’s the retirees, and the people close to
When we look to Germany, when we look to
Argentina, when we look to Russia – it is the pensioners who are
impoverished more than any other group,” writes Daniel R. Amerman.
Alt-A universe covers over 2 million
And with 2 million mortgages nearly
30 percent are already at the 30 days
22 percent are already 90 days late.
"The biggest and most secretive gathering of
ships in maritime history lies at anchor east of Singapore. Never before
photographed, it is bigger than the U.S. and British navies combined but
have no crew, no cargo and no destination..."
It’s a ghost fleet that grows the further
international trade falls into the pits. These are expensive ghosts.
“The country is being buffeted by a violent
tempest and driven towards a jagged reef that will rip a fatal fissure
in the hull of our ship of state.
As our ship flounders in violent seas driven
by gale force winds, the weak pathetic excuses for leaders in our
country, rather than lighten the load and reversing course, have chosen
to increase our speed straight into the teeth of the cyclone," writes
New orders for long-lasting U.S.
goods fell unexpectedly in August, dropping
by their biggest margin in seven months.
Bundesbank chief Axel Weber sees
no crunch now, yet fears a second pulse of the crisis this winter.
"We are threatened by stress from our
domestic credit industry through the rise in the insolvency of firms and
households," he says.
Peter Schiff says,
“The Chinese government will come to its
senses and stop buying Treasuries. This will cause the U.S. dollar to
collapse, but it will also allow Chinese citizens to fully enjoy the
fruits of their labor. Once the Chinese begin consuming more of their
own products, those products will no longer be available to Americans.
Once they start spending more of their
incomes on themselves, those funds will no longer be available for us to
borrow. Unfortunately, that is when our real economic crisis will begin.
The worst part is that the longer these
imbalances are allowed to continue, the larger they grow and the more
painful the ultimate adjustment process becomes.”
In real life our species has such a
modest ability to
deal with distant outcomes or to defer gratification that
a bad ending is probably inevitable. We need, it seems, the
shock of a Pearl Harbor to really gear up and make sacrifices.
Before the dollar hits the wall or before the
inflation that is now baked in the cake arises it’s a good idea to start
shifting your financial decisions (buy gold) and prepare oneself and ones
family for hard times ahead.
Stocking food and non
pharmaceutical medicines and preparing ones heart and spirit for the
challenges ahead are all good ideas as is getting to know your neighbors and
other people better, people to cooperate with when life gets driven abruptly
to a more local level of existence.
Western central banks will have to
deficits on a huge scale to stave off debt deflation.
The longer they think otherwise, the worse it will be.
“The dollar's collapse through the loss of
its reserve status has already begun. But it is the political risk, this
political will inside the US that ensures that this collapse will be a
hyperinflation the likes of which the world has never seen. Never before
has a global reserve currency imploded. The stage is now set, the
audience seated, the lights dimmed, and a low, rumbling, tympanic drum
roll can be heard rising from under the stage,” writes
FOFOA continues saying,
“In our current crisis, it is the dollar
that is at risk. The collective has given implicit support to unlimited
government printing in hopes that it will slow the fall from the
collapse of credit derivatives. We now also have the central bank of
central banks suggesting printing support to guarantee the sum total of
bank credit derivatives numbering five to ten times larger than the
entire value of all equity on the planet earth.
Never before has a global reserve
currency imploded. The stage is now set, the audience seated,
the lights dimmed, and a low, rumbling, tympanic drum roll can be heard
rising from under the stage.” 
In banking it has been said:
“Loan someone a few thousand and you have a
borrower. Loan someone millions or billions or trillions and you have a
“Too big to fail” now also applies to the
United States and this is what has saved America so far.
Everyone will lose when the dollar goes into the
graveyard of currencies so no one is willing to pay for a coffin yet but if
you are ready to go out and buy one be sure it is lined with gold.
There is no subtler, no surer means of
overturning the existing
basis of society than to debauch the currency. The process engages
all the hidden forces of economic law on the side of destruction,
does it in a manner which not one man in a million is able to