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Monday, March 7, 2011

People Of Earth: Prepare For Economic Disaster

PROBLEM, REACTION, SOLUTION.

The Economic Collapse



It is not just the United States that is headed for an economic collapse.  The truth is that the entire world is heading for a massive economic meltdown and the people of earth need to be warned about the coming economic disaster that is going to sweep the globe.  The current world financial system is based on debt, and there are alarming signs that the gigantic global debt bubble is getting ready to burst.  In addition, global prices for the key resources that the major economies of the planet depend on are rising very rapidly.  Despite all of our advanced technology, the truth is that human civilization simply cannot function without oil and food.  But now the price of oil and the price of food are both increasing dramatically.  So how is the current global economy supposed to keep functioning properly if it soon costs much more to ship products between continents?  How are the billions of people that are just barely surviving today supposed to feed themselves if the price of food goes up another 30 or 40 percent?  For decades, most of the major economies around the globe have been able to take for granted that massive amounts of cheap oil and massive amounts of cheap food will always be there.  So what happens when that paradigm changes?

At last check, the price of U.S. crude was over 104 dollars a barrel and the price of Brent crude was over 115 dollars a barrel.  Many analysts fear that if the crisis in Libya escalates or if the chaos in the Middle East spreads that we could see the all-time record of 147 dollars a barrel broken by the end of the year.  That would be absolutely disastrous for the global economy.

But it isn't just the chaos in the Middle East that is driving oil prices.  The truth is that oil prices have been moving upwards for months.  The recent revolutions in the Middle East have only accelerated the trend.

Let's just hope that the "day of rage" being called for in Saudi Arabia later this month does not turn into a full-blown revolution like we have seen in other Middle Eastern countries.  The Saudis keep a pretty tight grip on their people, but at this point anything is possible.  A true revolution in Saudi Arabia would send oil prices into unprecedented territory very quickly.

But even without all of the trouble in the Middle East the world was already heading for an oil crunch.  The global demand for oil is rising at a very vigorous pace.  For example, last year Chinese demand for oil increased by almost 1 million barrels per day.  That is absolutely staggering.  The Chinese are now buying more new cars every year than Americans are, and so Chinese demand for oil is only going to continue to increase.

Much could be done to increase the global supply of oil, but so far our politicians and the major oil company executives are sitting on their hands.  They seem to like the increasing oil prices.

So for now it looks like oil prices will continue to rise and this is going to result in much higher prices at the gas pump.
Already, ABC News is reporting that regular unleaded gasoline is going for $5.29 a gallon at one gas station in Orlando, Florida.

The U.S. economy in particular is vulnerable to rising oil prices because our entire economic system is designed around cheap gasoline.  If the price of gas goes up to 5 or 6 dollars a gallon and it stays there it is going to have a catastrophic effect on the U.S. economy.

Just remember what happened back in 2008.  The price of oil hit an all-time high of $147 a barrel and then a few months later the entire financial system had a major meltdown.

Well, as the price of oil rises it is going to create a whole lot of imbalances in the global financial system once again.
This is definitely a situation that we should all be watching.

But it is not just the price of oil that could cause a global economic disaster.
The global price of food could potentially be even more concerning.  As you read this, there are about 3 billion people around the globe that live on the equivalent of 2 dollars a day or less.  Those people cannot afford for food prices to go up much.
But global food prices are rising.  According to the United Nations, the global price of food has risen for 8 consecutive months.  Last month, the global price of food set a brand new all-time record high.  Many are starting to fear that we could actually be in the early stages of a major global food crisis.

The price of just about every major agricultural commodity has been absolutely soaring during the past year....
*The price of corn has doubled over the last six months.
*The price of wheat has more than doubled over the past year.
*The price of soybeans is up about 50% since last June.
*The price of cotton has more than doubled over the past year.
*The commodity price of orange juice has doubled since 2009.
*The price of sugar is the highest it has been in 30 years.

Unfortunately, the production of food in most countries around the world is very highly dependent on oil, so as oil goes up in price this is going to make the food crisis even worse.
Hold on to your hats folks.

Also, as I have written about previously, the world is facing some very serious problems when it comes to water.  Due to the greed of the global elite, there is not nearly enough fresh water to go around.  The following are some very disturbing facts about the global water situation....

*Worldwide demand for fresh water tripled during the last century, and is now doubling every 21 years.

*According to USAID, one-third of all humans will face severe or chronic water shortages by the year 2025.

*Of the 60 million people added to the world’s cities every year, the vast majority of them live in impoverished slums and shanty-towns with no sanitation facilities whatsoever.

*It is estimated that 75 percent of India's surface water is now contaminated by human and agricultural waste.

*Not only that, but according to a UN study on sanitation, far more people in India have access to a mobile phone than to a toilet.

*In northern China, the water table is dropping one meter per year due to overpumping.

These days, one of the trendy things to do is to call water "the oil of the 21st century", but unfortunately that is not a completely inaccurate statement.  Fresh, clean water is something that we all need, but right now world supplies are getting tight.

Our politicians and the global elite could be doing something about this if they really wanted to, but right now they seem perfectly fine with what is happening.
On top of everything else, the sovereign debt crisis is worse than it has ever been before.

All of the major global central banks have been feverishly printing money in an attempt to "paper over" this crisis, but it is not going to work.
Most Americans don't realize it, but right now the continent of Europe is a financial basket case.  Greece and Ireland would have imploded already if they had not been bailed out, and now Portugal is on the verge of collapse.  The interest rate on Portugal's 10-year notes has now been above 7% for about 3 weeks, and most analysts believe that it is only a matter of time before they are forced to accept a bailout.

Sadly, if the entire global economy experiences a slowdown because of rising oil prices, we could see half a dozen European nations default on their debts if they are not bailed out.

For now the Germans seem fine with bailing out the weak sisters that are all around them, but that isn't going to last forever.
A day or reckoning is coming for Europe, and when it arrives the reverberations are going to be felt all across the face of the earth.  The euro is on very shaky ground already, and whether or not it can survive the coming crisis is an open question.

Of course there are some very serious concerns about Asia as well.  The national debt of Japan is now well over 200% of GDP and nobody seems to have a solution for their problems.  Up to this point, Japan has been able to borrow massive amounts of money at extremely low interest rates from their own people, but that isn't going to last forever either.

As I have written about so many times before, the biggest debt problem of all is the United States.  Barack Obama is projecting that the federal budget deficit for this fiscal year will be a new all-time record 1.65 trillion dollars.  It is expected that the total U.S. national debt will surpass the 15 trillion dollar mark by the end of the fiscal year.

Shouldn't we have some sort of celebration when that happens?
15 trillion dollars is quite an achievement.

Most Americans cannot even conceive of a debt that large.  If the federal government began right at this moment to repay the U.S. national debt at a rate of one dollar per second, it would take over 440,000 years to pay off the national debt.

But the United States is not alone.  The truth is that wherever you look, there is a sea of red ink covering the planet.
The current global financial system is entirely based on debt.  If the total amount of debt does not continually expand, the system will crash.  If somehow a way was found to keep this system going perpetually (which is impossible), the size of global debt would keep on increasing infinitely.

Now the World Economic Forum says that we need to grow the total amount of debt by another 100 trillion dollars over the next ten years to "support" the anticipated amount of "economic growth" around the world that they expect to see.

The entire global financial system is a gigantic Ponzi scheme.  It is designed to keep everyone enslaved to perpetual debt.  If at some point the debt spiral gets interrupted in some significant way, we are going to witness an economic disaster that is going to make what happened in 2008 look like a Sunday picnic.

The more research that one does on the current global economic situation, the more clear it becomes that we are absolutely doomed.
So people of earth you had better get ready.

An economic disaster is coming.

9 comments:

  1. SALADIN ~
    Yep, you've pegged it. As I just wrote to a good freind of mine:

    Last week, I heard an interesting guest on the radio program “Coast To Coast”. He is a Christian minister who claims to have inside informants within the Elite or Illuminati, and he says “they” plan to do everything in their power to see to it that oil goes to $200. a barrel. That would absolutely destroy our economy and our way of life since nearly EVERYTHING we use is manufactured with the use of oil. Our economy will collapse and Uncle Sam will renege on its worldwide debts by claiming bankruptcy.

    Then later, the “New World Order” will be raised from the ashes after the U.S. suddenly “discovers” massive amounts of oil that it already knows exists in Montana, the Dakotas, and in Colorado under the Rocky Mountains (according to the Coast To Coast guest, the greatest reservoir of oil in the world).

    I have no way of knowing whether this guy is accurate or not, but I will say that his scenario would explain why another nation might want to nuke New York City! (Did you read my recent blog bit about that on F-FFF? It’s titled “The Ho Bib Tells Me So”.)


    ~ D-FensDogg
    'Loyal American Underground'

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  2. Anyone who has been paying any attention at all to current events can tell you that something wicked indeed this way comes. This whole crash has been orchestrated from the very top. They built a worldwide empire on oil so they could crash it, I would bet money on that. They cause the problem, wait for the reaction, then ride in like knights in shining armor with their "solution," how convenient. But I say the best laid plans are subject to revision. They are greedy and psychopathic, but not very smart. they always fail to take the rest of the world into consideration. Hubris always defeats them.

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  3. “So people of earth you had better get ready.

    An economic disaster is coming.”

    Indeed it is. The only problem, if you want to call it that, is the revolutions that we see cropping up aren’t REAL revolutions when measured against the simple statement written by Gustave Le Bon over 100 years ago.

    “The beginning of a revolution is in reality the end of a belief.”

    We are NOT seeing the end of “a belief” ergo the “revolution” you see has been one of design. Designed to maintain the conditions of our world NOT FREE US.

    It will have to be big and ugly for REAL REVOLUTION to even begin.

    Keep trying.

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  4. Saladin, your analysis in your response here is bang on. Over the past century especially they began to seriously lay down the tiles by making us dependent on oil. Why do you think all the great rail lines were dismantled? So that roads and cars could be pushed so heavily.

    Why do you think they outlawed marijuana so swiftly? One of the major reasons was because Henry Ford's first Model T ran on hemp oil!

    Why do you think they have rearranged the world of food growth as they have so that almost all coffee comes from here, avocados from there, etc etc, because this effects not only the local farmers and grants food control, but also the potential hunger once foods cannot be transported or cost too much for any but the very richest?

    By pushing the automobile as heavily as they did they double dinged Americans. They made cars into a "must have" culture so that people not only became dependent upon them for transportation but also frequently took out loans from the bankers to pay for them. Because they HAD to have them.

    Soon all cars will be good for is for planters in which to grow our veggies and fruit.

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  5. Might I add to this... this ponzi scheme has been organized and carried off for the past few hundred years, at least, to enslave humanity under the yoke of usury.

    We all know who is behind all this and although it is late, it is time for people to just say, Screw you and your debts. Screw us paying off your greedy souls for all that has been going on. Screw you for your wars. Screw you ~ screw you ~ screw you.

    Tell the IMF that this long term goal of theirs as the potential international bankers for the planet .. SCREW YOU! Tell those who buy up the water supplies and hoard them or sell this elixir of life at exorbitant prices, SCREW YOU.

    Once people start to get hungry, if instead of turning on each other they turned upon the common enemy, it would be tough but things could be turned around.

    Now I am going to stand before my mirror and practice saying "Screw you" in my most elegant and emphatic manner... practice and then action.

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  6. Dear Noor, yes and yes! I have been thinking about this for a long time. First they cover up Tesla's discoveries, make us dependent on oil for virtually everything in life, including food, then they take it away thus providing the need for a solution. All their propaganda swirls around energy consumption, peak oil, global warming, over population, pollution, etc. etc. They create a crisis, blame us, then expect us to pay, pay, pay for a solution to a problem that never should have happened in the first place. These devils are beyond evil. I have posted a few solutions because I think we can break the chains of our slavery if we could just get past this idiotic left/right bullshit and focus on the enemy, for it is the enemy of all humanity, it doesn't take sides, it doesn't care about right or wrong, good or evil, it only cares about it's own perpetuation. If we don't stop them who will?

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  7. I don’t really need to add much as you seem to have it well in hand. I just wanted to say great post and commentary folks.

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  8. The fact is, the world simply has too many people to support in a sustainable manner, even if everyone cooperates fully. I don't believe in conspiracy theories unless there is hard evidence to support them.

    As far as the government Ponzi scheme goes, they go on because when a new president gets elected, he realizes there is no easy fix, so continues the former policies hoping things will hold together until he is out of office. But the crash will come and the longer it is put off the worse it will be.

    Iceland did the right thing. They told the banks where they could stuff it and let them default. The Iceland economy was disrupted for two years, but then their recovery began and now they are in better shape than many other countries.

    So we all need to cut off funding from the US Government by not paying taxes. This can be done legally by reducing your income below the taxable level. For more information visit w4resistance.org

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  9. Sorry zerotsm but keep your ideas of people as pollution to yourself.

    Presidents have zero influence on economy. The private ‘federal bank’ tells him what’s happening.

    Are you new at this blogging thing?

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