It is so important with mid term elections coming that we all should take notice of an undercurrent of financial distress that is poised to strike with unparallel swiftness. The onslaught of a economic catastrophe lies in wait. We have come to realize that we all live in perilous times. The world is a powder keg where any spark could unleash a horror of unimaginable terror. The set on the worlds stage is filled with a savage brutality the likes of which dates back to the Dark Ages. Yet, here in the United States there is a complacency, a reluctance to accept that at any moment our lives and our livelihoods could be thrust into a tailspin of financial devastation. When we here of over 5,000 now unemployed workers in Atlantic City this past Labor Day one can actually see that we have to accept the fact that the US economy really isn't what the media claims.
Now, with more imposed sanctions against Russia coming out of Washington and Europe we have inadvertently created more economic imbalance right here in the US. Many economists are certain that a economic Tsunami is fast approaching. There is a clear and present danger not only with ISIS and the crises in the Ukraine but a looming disaster lies in wait right under our noses. A recently released report by the 16 branches of our Intelligence Community specifies that the US dollar will fall as the global reserve currency.
Today, it is not a question of if the dollar will fall but a question of when. When it does our reign as the world's leading super power will cease. So far our political leaders and even the Federal Reserve are either oblivious, ignoring or just don't think that a financial and economic collapse will develop and send the world into a global depression. The warning signs are all around us though, yet the complacency of our political officials remains intact. With the rest of the world on the brink of chaos we have political leaders that continue to miss the boat on our fiscal policies and our international interventions. Miss the boat they not only missed the boat they are no where near finding the right pier. For years the United States has maintained the rational that has only exasperated the deteriorating conditions at home and abroad.
We are already on the verge of entering the darkest economic period in our nations history. With at least three international crisis occurring simultaneously have put the world closer to the brink of World War III questions have to be asked. Are the drums of war sounding revelry where armed forces march off to war? Or are we poised to unleash the unthinkable upon those insurgents that are hiding under their cloaks of misshaped ideologies? Do we dare impose more sanctions that only serve to come back to bite us? Are our elected officials too blind to see that their policies, treaties, decrees and laws for the past thirty five years all they have done is encourage more imbalance in our society and opened the door for more instability through-out the world? Do we have the right leadership to steer this nation out of troubled waters?
One can emphasize that from the onset of World War II ordinary men were called upon to do extraordinary things. They rose up and met the challenge head on with unwavering resolve. Men like Roosevelt, Churchill, Generals Patton, Eisenhower, McArthur and so many more whose heroism made it possible to end the global conflict of World War II. Today, the world is once again threatened by a ruthlessness not seen since the defeat of Nazi Germany. And, complicating matters is the fact that current fiscal policies within the US have opened the door to an financial calamity that is poised to annihilate millions in bank accounts all across the country leaving those millions so destitute making the Great Depression of the 1930's pale in comparison.
The greatest threat to our national security is not ISIS or Al-Qaeda but our reckless fiscal policies by the Fed and our Treasury for the past 40 years. With this past Labor Day Weekend massive layoff of thousands of workers only underscores that the national unemployment figures are closer to 25% and not what is reported by our main stream media or our elected officials either. With unemployment figures this high there is more of a probability that we are in the beginning of a major sociological upheaval worse that we have ever faced. We would be wise to remember that the beginning of our failings in financial and economic policies was made was back in the early 1970's when then President Nixon took the financial markets off the gold standard. The fallout from that sent this country in a prolonged recession. Energy prices soared and inflation took root. Ever since then the dollar has continued to fail to gain the power it had during the 1950's and 60's.
What we are seeing today is the hard cold reality that the US is already in a Depression. Undeniable fact that over 1/3 of our population are already dependent on Food Stamps. As much as people relate the Depression of the !930's with soup kitchens, today those soup kitchens are in the many shelters all around the US that serve homeless individuals, families, and so many other people who can't even afford a hot meal is the reality we face today. When we put this into perspective we come away with what many economists call a Misery Index. The misery index = the real inflation rate + the real unemployment rate. Now, if we compare the Misery Index today to the energy crisis and the period of stagflation of the mid 70's and early 1980's today that Misery Index is far worse. If left unchecked and allowed to grow puts this nations future in grave risk.
There is a more sinister realization that is not in the forefront of debate today. That is our whole financial and banking system is immersed in so much debt it is strangling the life blood out of our economy. Today, there is over $60 trillion of debt within our banking system. It has been for a long time that debt and the banks grew at about two times the rate of growth in the economy. Today, that debt has shot up by over 30 to 1. Meaning the rate of economic growth is dwarfed by the colossal amount of debt we have incurred. We have to remember that another key assault on our economy occurred right after NAFTA was ratified back in 1994. Since then the United States has been losing millions and millions of middle class wage jobs. Instead of creating a balance in our economy all NAFTA did was create a widening of the income disparity gap that has only gotten wider. Consequently more and more individuals have had to rely on those government safety nets pushing the US deeper in debt.
Another startling fact that will have a very adverse effect right here in the United States is occurring in China. In China for the past three years, construction has been over 50% of their GDP growth. Their shadow banking has set the stage in China for a major economic bubble that soon will burst. Basically they are building white elephants, they're building trophy projects, they're building ghost cities. At least seven cities so far have been constructed. Every city has whole clusters of skyscrapers, luxury hotels, athletic facilities, housing facilities, high-end shopping, metro stops, highway access. And an airport to service all seven of these cities. Today, these cities still remain empty. Not one inhabitant. It seems that China today has the earmarks of a economic disaster lying in wait just like the US. When we consider that China for years has been the buyer of US treasury notes now is selling them off and trying to buy gold to shore up the Yen makes you kinda wonder what really is going on. When we compare real estate and home buying today in the US it takes about 7 years of income to by a typical house. In China it takes over 19 years of income to buy that typical house. All that construction was built without the ease of access to the employment opportunities that still would not enable one to afford the high end prices commanded by these newly constructed cities. They are on the verge of trying to rectify by building mass high speed rail systems but that still won't solve the housing bubble that is set to explode.
It is very possible that the construction boom in China is mirror of the recent construction boom right here with so many apartment complexes being built. This is because of the cost factor in buying single family homes. Instead, just like the housing collapse of 2008 soon another housing bubble will burst with all the vacant apartments where so few can afford the high end rents. Just like in China. These events have only solidified that a financial upheaval is poised to strike America. There are more troubling signs ahead. When China which has been the largest purchaser of US treasury notes followed by Russia now unloading them while garnishing more gold reserves signals yet another tipping point for the US dollar.
A slight of hand by the Fed now laundering it's own Treasury securities with an accomplice in Belgium is another indication we have entered troubled waters. This in itself has all the earmarks of Rothschilds influence to control the monetary policies of not only the Euro but that of other nations like Russia and China. With Fed chair Janet Yellen's recent positive update on the US economy hides the fact that the Fed is really insolvent. Let's not be beguiled. There remains the fact that investors are not really investing more money when consumers don't have any money? All this talk of how our economy is growing is just hype. Practically every economy in the world today is in serious trouble. There is really nothing that is going to push the US economy up. The failure of the Fed and Washington is the fact that the QE of the past with QE1 and QE2 really didn't equate to the fulfillment of the Williams Theory of Economic Evolution. In fact all it did was put this nation deeper in debt.
With the crisis in the Ukraine now center stage the Administration and Congress have totally miss the boat, again. We have behaved with an arrogance and really with stupidly. The threat and imposing of sanctions have made Putin realize that the dollar system is really not in their best interest and are abandoning it. The reality is that when any significant part of the world stops using the dollar the price of the dollar falls because the demand for US dollars falls. When that happens the import costs for America goes up which means a drastic rise in the real cost of living which sends this country into a steep depression.
Is there a way to avoid and stop a travesty of unimaginable distress that is pretty much inevitable? There is, but there again we have elected officials that have really not understood or really cared of what our current policies have done and are doing to the economy and international relations. Only through a total economic reform can the US avoid a disaster of epic proportions. Implementation of National Economic Reform's Ten Articles of Confederation is the only way to save the economy from what is going to be the second Great Depression