Tag Archives: economic collapse

Elite Are Prepped And Ready For The Economic Crisis

The following is an interesting overview, via X22Report.com, of our current economic situation and the behavior of the elites going into the next stage of the collapse process.

https://i1.wp.com/www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/03/09/20170314_world.jpg

As Alt-Market’s Brandon Smith notes, take special note of the information on the abrupt decline in bank issued loans (debt); is it not rather coincidental that as the Federal Reserve presses forward with the interest rate hiking process that credit issuance suddenly freezes up?

This is what I have been warning about since last year, and now we are watching it unfold


Lawyer Joke:

One afternoon a lawyer was riding in his limousine when he saw two men along the roadside eating grass.

Disturbed, he ordered his driver to stop and he got out to investigate.

He asked one man, “Why are you eating grass ?”

“We don’t have any money for food,” the poor man replied. “We have to eat grass.”
“Well, then, you can come with me to my house and I’ll feed you,” the lawyer said.
“But sir, I have a wife and two children with me. They are over there eating grass under that tree”

“Bring them along,” the lawyer replied.

Turning to the second poor man he stated, “You may come with us, also.”
The other man, in a pitiful voice, then said, “But sir, I also have a wife and six children with me!”

“Bring them all as well,” the lawyer answered.

They all entered the car, which was no easy task, even for a car as large as the limousine. Once under way, one of the poor fellows turned to the lawyer and said,

“Sir, you are too kind. Thank you for taking all of us with you.”

The lawyer replied, “Glad to do it.

You’ll really love my place.

The grass is almost a foot high.”

Did you really think there was a heart-warming lawyer story?
Look at Congress — over 300 LAWYERS

“It’s Pure Chaos Now; There Is No Way Back” – Venezuela Morgues Are Overflowing (video)

When we previewed Venezuela’s upcoming hyperinflation, which in January was predicted to be 720% and as of this moment is likely far higher…


… we said “This Is What The Death Of A Nation Looks Like” and said “there is no good news in any of the above for the long-suffering citizens of this “socialist paradise” which any minute now will be downgraded to its fair value of “socialist hell.

Subsequent news that Venezuela was now openly liquidating its gold reserves while its president, in an amusing twist, announced last week, that henceforth every Friday will be a holiday, (the term there was a slightly different meaning) to cut down on electricity usage (while blaming El Nino for its electricity rationing) merely confirmed that the end if nigh for this once flourishing Latin American nation.

Sadly, while we have been warning for years about Venezuela’s inevitable, economic devastation, we said it was only a matter of time before the chaos spreads to broader society and leads to total collapse.

That may have arrived because as even the FT now admits, after visiting the main Caracas morgue, Venezuela risks a descent into chaos.

But back to the morgue of central Caracas, where FT correspondent Andres Schipani writes that the stench forces everyone to cover their nostrils. “Now things are worse than ever,” says Yuli Sánchez. “They kill people and no one is punished while families have to keep their pain to themselves.

Ms Sánchez’s 14-year-old nephew, Oliver, was shot five times by malandros, or thugs, while riding on the back of a friend’s motorcycle. His uncle, Luis Mejía, remarked that in a fortnight three members of their family had been shot, including two youths who were shot by police.

Sounds a little like Chicago on a Friday… only in Venezuela things are even worse: “an economic, social and political crisis facing Nicolás Maduro, Venezuela’s unpopular president, is being aggravated by a rise in violence which is prompting fears that this oil-rich country risks becoming a failed state.”

Even the morgue employees are asking if they should give up.

“What can we do?” Mr Mejía asks. “Give up.” The morgue employee in charge of handling the corpses notes that a decade ago he received seven or eight bodies every weekend. These days, he says, that number has risen to between 40 and 50: “This is now wilder than the wild west.

Critics say that the Venezuelan government is increasingly unable to provide citizens with water, electricity, health or a functioning economy which can supply basic food staples or indispensable medicines, let alone personal safety.

In other words, total socioeconomic collapse. This is what it looks like:

Last month alone, Venezuelans learned of the summary execution of at least 17 gold miners supposedly by a mining Mafia, the killing of two police officers allegedly by a group of students who drove a bus into a barricade, and a hostage drama inside a prison at the hands of a grenade-wielding criminal gang. On Wednesday, three policemen were killed when an armed gang busted a member out of a lock-up in the capital.

At least 10 were killed in a Caracas shanty town after a confrontation between local thugs armed with assault rifles, while a local mayor was gunned down outside his home in Trujillo state last month. There are widespread reports of lynchings.

All this is creating a broad unease that Mr Maduro is unable to maintain order… There is a lack of basic goods. Analysts warn that the economic crisis risks turning in to a humanitarian one.

Some refuse to acknowledge that a state erected on so much oil wealth can be a failed state:

“Failed state is a nebulous concept often used too lightly. That’s not the case with today’s Venezuela,” says Moisés Naím a Venezuelan distinguished fellow at the Carnegie Endowment for International Peace. “The evidence of state failure is very concrete in the country that sits on top of the world’s largest oil reserves.”

Alas, a failed state is precisely what Venezuela has become: Venezuela is already one of the world’s deadliest countries. The Venezuelan Observatory of Violence, a local think-tank, says the murder rate rose last year to 92 killings per 100,000 residents. The attorney-general cites a lower figure of 58 homicides per 100,000. This is up from 19 per 100,000 in 1998, before Maduro’s predecessor Hugo Chavez took power.

It gets worse, because in addition to a soaring murder rate, the government itself is implicated.

“Venezuelans are facing one of the highest murder rates in the hemisphere and urgently need effective protection from violent crime,” said José Miguel Vivanco HRW’s Americas director. “But in multiple raids throughout the country, the security forces themselves have allegedly committed serious abuses.”

Their findings show that police and military raids in low-income and immigrant communities in Venezuela have led to widespread allegations of abuse, including extrajudicial killings, mass arbitrary detentions, maltreatment of detainees, forced evictions, the destruction of homes, and arbitrary deportations.

And like all other failed governments, Maduro’s administration is quick to deflect blame, instead accusing violence within its borders on Colombian rightwing paramilitaries “engaged in a war against its revolution.” But as David Smilde and Hugo Pérez Hernáiz of the Washington Office on Latin America, a think-tank, recently wrote: “Attributing violence in Venezuela to paramilitary activity has been a common rhetorical move used by the government over the past year, effectively making a citizen security problem into a national security problem.”

For many Venezuelans it no longer matters who is to blame. “It is a state policy of letting anarchy sink in,” says a former policeman outside the gates of a compound in Caracas.

The FT adds that the former police station now houses the Frente 5 de Marzo, one of the political groups that consider themselves the keepers of socialism’s sacred flame. The gates bear the colours of the Venezuelan flag and are marked with bullet holes. The man believes there is something akin to a civil war going on.

Venezuela is pure chaos now. It seems to me there is no way back,” the former policeman says.  He is right.

* * *

And since words can not fully do a failed state justice, here is a video clip from Jeff Berwick showing the reality on the ground in the country where “socialism’s sacred flame” is about to go out for good … WATCH what’s really going on in Caracas !

Bernie Sanders Praising Bread Lines and Food Rationing

source: ZeroHedge

Venezuela: the land of 500% inflation

Schiff Warns: “The Whole Economy Has Imploded … Collapse Is Coming”

https://s16-us2.ixquick.com/cgi-bin/serveimage?url=http%3A%2F%2Fcdn3.freedomoutpost.com%2Fwp-content%2Fuploads%2F2015%2F06%2Feconomic-collapse.jpg&sp=3b7a581e9216ee06e81159dcf33fa4c6Back before 2008 Peter Schiff was harshly criticized and laughed at for his predictions about a coming economic collapse. Among other things Schiff warned that consumer spending had hit a wall, stocks were overpriced and lax credit lending practices would lead to a detonation of the banking system. Rather than heed the warnings, the biggest names in mainstream media tried to discredit him for not toeing the official narrative. Shortly thereafter, of course, Schiff was vindicated and much of the doom he had forecast came to pass.

Today, Schiff continues to argue that the economy is on a downhill trajectory and this time there will be no stopping it. All of the emergency measures implemented by the government following the Crash of 2008 were merely temporary stop-gaps. The light at the end of the tunnel being touted by officials as recovery, Schiff has famously said, is actually an oncoming train. And if the forecast he laid out in his latest interview is as accurate as those he shared in 2007, then the the train is about to derail.

We’re broke. We’re basically living off of debt. We’ve had a huge transformation of the American economy. Look at all the Americans now on food stamps, on disability, on unemployment.

The whole economy has imploded… the bottom hasn’t dropped out yet because we’re able to go deeper into debt. But the collapse is coming.

Fundamentally, America is worse off now than it was pre-crash. With the national debt rising unabated and money being printed out of thin air without reprieve, it is only a matter of time.

Schiff notes that while government statistics claim Americans are saving again and consumers seem to be spending, the average Joe Sixpack actually has a negative net worth. But most people don’t even realize what’s happening:

I read a statistic… The average American has less than a $5000 net worth… it’s pathetic… we’re basically broke… but in fact it’s much less… If you actually took the national debt and broke it down per capita, the average American has a negative net worth because the government has borrowed in his name more than the average American is able to save.

What’s happening is pretty much what we would anticipate. I don’t see from the data any real economic recovery, certainly not in the United States.

We’re spending more money, but it’s not because we’re generating more wealth. We’re generating more debt. We’re using that borrowed money to consume and so temporarily it feels that we’re wealthier because we get to spend all that money… but we have to come to terms with paying the bill.

The bills are going to come due. Right now interest rates are being kept at zero which makes it possible to service the debt even though it’s impossible to repay it… at least we can service it. But once interest rates go up then we can’t even service it let alone repay it.

And then the party is going to come to an end.

The problem, of course, is that no one with any real influence over public perception, like our elected officials or the media, will do anything about it. They’ll continue the party until it comes to an abrupt and irreversible end, and anyone who goes against the official narrative will be branded a lunatic gloom and doomer or extremist.

But vilifying those who are blaring the warning sirens will do nothing to change the end result:

We’re going to have a crisis… There are always going to be people who say ‘well, you’re a stopped clocked… you keep predicting doom and eventually it happens’… but you have to back and listen to why… Why are they saying it?

If you look back at things that I’ve said and the things that Ron Paul has said… This is why it’s happening… it’s not like we’re just saying negative things to be negative and then when something negative happens we can claim credit for it happening.

If you look back at the events it bears out that we’re right… unfortunately our opinions are in the minority… and you have governments that have a vested interest in ignoring these opinions because they don’t want to change because they’re at the root cause of the problem. But they don’t want to acknowledge their role in creating the problem. They don’t want to acknowledge that the problem is more government and that we need less government because that’s not how they stay in power. They promise something for nothing… they promise that government is the solution for your problems, not the cause of your problems.

They’re never going to acknowledge people like Ron Paul for what they’re saying… but they’ll try to discredit you by saying ‘well, you’ve been saying this for years and nothing bad has happened.’

But look around. A lot of bad stuff has happened. We just haven’t had the final and complete collapse. But what good is it when that happens? Now it’s too late to do anything about it.

The reality is that the American economy is on its last leg. Black Friday sales were pitiful, some of the world’s leading companies are warning of recession, and U.S. national debt will soon surpass $20 Trillion.

Just as was the case before the Crash of 2008, all of the signs are there. And just like before, the stock market continues to hover near all-time highs.

If you’ve been paying attention you know what happens next.

Source: Zero Hedge

Russian Propaganda Newspaper: declares World War III on America, promises to topple the U.S. by early 2016

war(NaturalNews) As news broke recently that Russian warplanes had dropped their first ordnance in civil-war-ravaged Syria, a noted Russian propaganda newspaper, the Komsomolskaya Pravda, was making a dire prediction: The U.S. will become embroiled in World War III by the end of 2015.

Only, it won’t be a war like the first two global conflagrations. The next world conflict will be waged economically, the article states, adding that, in fact, the first economic “shots” have already been fired.

The article, translated at the WatchingAmerica website, first claims that, during World War II, the U.S. “profited” by selling weapons to many of the countries involved in the conflict, “including the Soviet Union exclusively in exchange for gold.”

“After sewing chaos and instability throughout the world, the U.S. has received a strike in retaliation,” the article continued. “The thing that Americans feared most has come to pass: Russia and China’s united war against the dollar.”

It also contained a direct reference to covert acts of aggression that were exposed by Natural News editor Mike Adams, the Health Ranger, on August 17, who said sources in China confirmed that a chemical plant explosion was no accident, that it was caused by the U.S. in retaliation for Beijing’s recent currency devaluation.

Vindication

“With maneuvers in the East China Sea and accidents at chemical plants, the Chinese decided they would no longer tolerate the situation, and so they pulled the trigger in the first economic world war,” the Pravda article said, which is a virtual acknowledgement of the revelations in Adams’ report. The piece continues with a mention of a Chinese yuan devaluation and the August stock market plunge on Wall Street.

“First, China devalued the yuan, which caused the collapse of the Shanghai Exchange Composite Index by 7.6 percent,” the article said. “Next, China began to interfere heavily in the exchange market by using its reserves. Within a short period of time, Beijing had sold a fantastic number of American bonds, and this has affected the profitability of those bonds.”

Continuing, the article stated, “As of Aug. 19, the traditionally synchronized movement of U.S. stocks and bond yields had been destroyed. This way of life had persisted for almost 30 years, but in one day, everything changed.”

“Since early 2015, China has sold $107 billion in treasury bonds. That was how it began, and now, the entire year will be defined by the last two weeks,” it said, noting that both Russia and China have been dumping U.S. bonds for a couple of years, only doing it slowly.

“Large quantities of American stock make China’s economy dependent on the U.S. because falling prices would hurt China as well. But everyone understands this, so they have been gradually getting rid of the stock in order to minimize loses,” said the article.

“According to experts, if sales continue at this same pace, it will allow the PBOC to carry out an intervention for another 18 weeks,” which will be January 2018, as of this writing.

‘Not Fought With Tanks And Cannons’

The article states that it isn’t clear that the U.S. economy can withstand such a blow, but opines that “more than likely” it will not because the U.S. financial system has never endured such a hit.

“Therefore, it is obvious that a military conflict is overdue. Specialists are of the opinion that with every percent that the market falls, the amount of infusion that would be necessary grows by roughly $200 billion,” said the article. It went on to warn that Russia would not support another ceasefire agreement in Ukraine, but would instead seek full capitulation of the country, and that Russia “has the right to a peacekeeping operation if force is used in Kiev, similar to what it did in Georgia in 2008.”

“However, there will not be a world war with tanks and cannons. Black Monday, Aug. 25, 2015, has already become the economic equivalent of Pearl Harbor and will likely go down in history as the beginning of the first economic world war,” the Pravda piece noted.

It’s important to note that article’s author is Alexander (Oleksandr) Luzan, the chairman of Ukraine’s Slavic Party, founded in the early ’90s after the Soviet collapse to campaign for improving and maintaining relations with Russia and other former Soviet Republics.

A cornerstone of Slavic Party ideology is the unification of all Slavic lands, which means uniting Ukraine with Russia, as well as other Slavic nations in Eastern Europe.

You can stay up to date on the unfolding economic collapse and the rising possibility of global war at Collapse.news and NationalSecurity.news. Make sure to also check out AlternativeNews.com for comprehensive independent news that the mainstream media refuses to touch.

Sources:

ZeroHedge.com

NaturalNews.com

WatchingAmerica.com

Collapse.news

Venezuela Increasingly Looks Like A War Zone

Over the years, we have repeatedly poked fun at the transformation of Venezuela into a “socialist utopia” – an economy in a state of terminal collapse, where the destruction of the currency (one black market Bolivar is now worth 107 times less than the official currency’s exchange rate) and the resulting hyperinflation is only matched be barren wasteland that local stores have transformed into now that conventional supply chains are irreparably broken.

Just this past Wednesday we showed a clip of what is currently taking place inside Venezuela supermarkets, noting that “the hyperinflationary collapse in Venezuela is reaching its terminal phase. With inflation soaring at least 65%, murder rates the 2nd highest in the world, and chronic food (and toilet paper shortages), the following disturbing clip shows what is rapidly becoming major social unrest in the Maduro’s socialist paradise… and perhaps more importantly, Venezuela shows us what the end game for every fiat money system looks like (and perhaps Janet and her colleagues should remember that).”

Unfortunately, while mocking socialist paradises everywhere is a recurring theme especially once they have completely run out of other people’s money to burn through, what always follows next is far less amusing – completely social collapse, with riots, civil war and deaths not far behind.

That is precisely what the video shown below has captured. In the clip, a demonstration against Venezuela’s poor transportation services quickly turned violent. End result: one person dead from a gunshot wound, more than 80 arrested and four shops looted on the Manuel Piar Avenue in San Felix.

What is most disturbing is how comparable to an open war zone what was once a vibrant, rich and beautiful Latin American country has become.

This is just the beginning: with the ongoing collapse of the economy, the resultant acts of social violence will only deteriorate and claim more innocent lives, until the “socialist utopia” ends as it always does: with the arrival of a military coup or a full blown civil war.

Source: Zero Hedge

War And Chaos Ahead: How Mega-Rich Are Preparing

Exclusive: Barrett Moore previews West’s ‘impending implosion of the empire of debt’

Candidly, I don’t have the time right now to be writing an article that most in the West would ignore or repudiate. I wrote this piece, however, for the staff of WND with whom I have consulted over the years. WND is one of the few news organizations in America that is interested in truth, and unconcerned with the consequences of reporting it. I admire that, and so should you. Few news organizations remain that are not just inundating us with misinformation and propaganda. But I digress.

We are at the precipice of war, and this is a call to action. While it might not come tomorrow, the threat does grow by the day as conflict between the largest and most powerful nation states becomes inevitable, driven by the impending implosion of the empire of debt accumulated by Western democracies, and by the yearning of Russia and China (and their surrogates) to escape the constraints of almost 70 years of American hegemony.

I am not talking about another one-sided skirmish in the desert, but rather a real war, where satellites fall from the sky, ships sink, supply chains are disrupted and there is a loss of life not seen since the last century; a war of such a magnitude that few Westerners alive today can comprehend it. Such a war will alter the world as we know it. And, reading the tea leaves, it seems there is little we could do now to stop it. At this stage, all that is missing is the spark that ignites the inferno. It might come tomorrow, it might delay a while longer. We can prepare, but preparation takes years and years, and requires a threshold level of certainty that the threat exists, that it merits attention, that it demands action.

Why do our kids’ novels and movies (“Hunger Games,” “Divergent”) assume a game-changing war, but writers and talking heads on our mainstream news sites and channels serve up mindless banter about the Kardashians, the climate, Twitter trends and gender engineering? Even thinking Americans have traded serious conversation about geopolitics for Facebook page updates, thereby providing every intelligence organization on the planet the opportunity to further profile them. We are sinking further and further into blind ignorance about how the world really works, even as we strengthen the powers threatening us.

Are you still with me? Then read on. You need to re-prioritize your life today and start fulfilling the most important obligation you have to your family aside from serving God. It’s not your next vacation, a new car, or a club membership that I am talking about. No. It is the need to protect and provide for your family in a conflict situation where the supply chain no longer works. Do you think your wealth will protect you? Or that ready access to modern aircraft will make a difference? Or maybe you are fortunate enough to own a second home, or even a boat? I am sorry to say that these luxuries will prove all but useless when the coming storm arrives.

If you question my advice, then tell me, why did Mr. Jamie Dimon buy an island? Or why does Hank Paulson actually live on one? Or what about James Cameron, who up and moved to New Zealand? Or the thousands of bankers and hedge fund managers that have sought safety in havens throughout the Caribbean, and in Central and South America? Oh, you didn’t know about that? Or maybe you are having trouble placing those names? Well, Mr. Dimon is the current chairman and CEO of J.P. Morgan/Chase Bank. Mr. Paulson was the chairman of Goldman Sachs, before becoming the U.S. secretary of the Treasury. And Mr. Cameron is the director and creative genius behind the movie “Avatar,” among others – which made him a billion dollars or so. But don’t be envious. Based on my experience building havens, Mr. Dimon and Mr. Cameron overlooked some serious geopolitical threats during their haven selection process, and this is despite their huge resources, connections and intuition about where the world is going. In my opinion, Mr. Paulson made a wiser choice to stay in North America, and so have hundreds of others.

Let me explain further. You see, each of these very smart and successful people understands that the political leadership of our nation, irrespective of party affiliation, are as much in denial regarding the threats we face as they are wholly unprepared and ill-equipped to make the hard financial decisions that are essential to preserving our way of life. They recognize that we are steaming right along, business as usual, such that virtually every governmental action is partisan and is made without restraint or consequence, and that the population remains blissfully ignorant as to how this inability to change direction tightens the proverbial financial noose around our necks. Think about it – how many times have you heard a politician or member of the media comment about the size of our national debt and how our path is unsustainable? Yet nothing changes.

The WND Superstore’s Preparedness section has everything you’ll need to survive societal or natural upheaval – from freeze-dried meals to gas masks. Prepare now!

While it sounds like a joke, ask yourself, what is the difference financially between Greece and the United States? In many ways, very little. Both nations are broke, both are living well beyond their means, and both are hobbled by politicians incapable of making the hard (i.e., right) decision for their citizens. Think about the news lately. If it were not for the Federal Reserve and the ability of the U.S. Treasury to borrow with impunity, our leadership would be begging for loans from creditors, much like Greece is begging its EU creditors (read: Germany), for additional financial help.

In short, our leadership won’t change the trajectory we are on until they are forced to do so. Don’t listen to what they say, but observe what they do. For example, the Reagan, Bush (41), Clinton, Bush (43) and Obama administrations have each saddled the nation with successively larger and now record amounts of debt (and please, don’t give me any nonsense about Clinton not adding to the debt; he was just a little more clever about trying to market the narrative). We have all seen these numbers before, but, to refresh your memory, they are as follows (approximately):

Think about the implications. The federal government is spending $5-$5.5 trillion annually (using GAAP-adjusted accounting) yet taking in approximately $3.1 trillion in annual revenues. We are thus only paying for, roughly, 60 percent of expenditures; the rest is being borrowed. How would that go over in your household?

Yawn, you say, I have heard all this before and we are still here – what makes it different this time? Answer: The Federal Reserve has, in the last year, begun to monetize our national debt, which means we are buying our own debt back with borrowed (or newly created) dollars. So what? Well, this is the sign that sophisticated financial insiders have looked for as the beginning-of-the-end, and this is why they are preparing to flee their metropolitan bases of operation.

Bear with me while I explain: The insiders understand that the monetization of our debt will eventually drive an increase in interest rates, which will in turn increase the cost of the nation’s borrowing (think of it as an increase in the rate on your credit card), thus creating the need to spend more money to pay the increased interest cost to service the national debt, which increases the budget deficit, that in turn increases the need to borrow more money and monetize even more debt, eventually creating a self-fulfilling prophecy of increasing interest rates to attract more and more capital, which in turn increases the cost of servicing the underlying debt etc. etc.; eventually hastening the coming financial collapse insiders fear. Furthermore, they know the Federal Reserve’s current and careful balancing act is susceptible to an upset due to some black swan event that triggers a global financial panic, thereby ripping the legs out from under the debt-supported Western democracies with the United States at the hub of that collapsing wheel. What does this mean? No one is quite sure, but analysts predict a forced bank holiday, (i.e., the banks, including ATMS, close for some indefinite period of time), massive employment layoffs, disruptions of the usual supply chain (i.e., of truck and rail transportation of food, medicine and other staples), non-payment of pensions and social assistance programs (welfare) and the destruction of much of the nation’s paper-based wealth (i.e., your stock portfolio, among other assets), along with the emergence of broad social upheaval to include gangs, mobs, riots and other social disruptions. Remember that following the financial crisis in 2008, Mr. Paulson, as U.S. Treasury secretary, stated that at the time of the $700 billion bailout from the Federal Reserve, we were within 24 hours of the collapse of the global economy. If this information does not create a pit in your stomach, then perhaps this story will.

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While you were preparing to celebrate this past Christmas with your family, in mid-December 2014, hidden away on page 615 of a 1,603-page Continuing Resolution that was passed by Congress and signed by the president, there was a little-known provision that put the American taxpayer on the hook for derivative trading loses by major trading banks. What? Really? What does that mean? Well, our illustrious leaders thought it appropriate for the American taxpayer to guarantee any derivative trading loses the banks suffer, through subsidiaries that are insured by the Federal Deposit Insurance Corp. In other words, the banks can continue to write, sell, and trade these sophisticated financial instruments, and profit from them, and, if they become financially untenable (read: BAD), walk away from them and let the American taxpayer wear the liability. Oh yes, I forgot to tell you the best part: These same banks currently have over $303 trillion of these financial instruments (derivatives) on their books.

Going just a bit deeper, remember (what my fourth-grader knows) that a trillion dollars is a thousand-billion dollars. Further, in 2014, the value of ALL the economic activity in the world, commonly referred to as the global domestic product, or GDP, was $72.6 trillion. So, yes, the guys on Wall Street figured out how to stick the federal government (read: you, the American taxpayer) with a potential further liability of $303 trillion, representing over four times the world’s entire GDP. And you wonder why Jamie Dimon bought an island?

I remind you of the adage of MI-5, the British Internal Security service: Western civilization is only four meals away from anarchy.

People like Dimon, Paulson and thousands of other members of the banking and financial communities recognize that during the financial crisis of 2008, our leadership did not make the hard decisions necessary to fix the system, but merely applied a $700 billion Band-Aid. By kicking the proverbial can down the path, they simply delayed and laid the groundwork for an even larger and broader crisis in the future. Hence the reason that so many have established havens where they can ride out the coming financial tsunami that will envelop the world; while others have killed themselves, with some 60 odd bankers/financiers dying either by their own hand or under mysterious circumstances in the last couple years.

So this is the lens through which many in the financial and banking industry look. They know the system is untenable, yet they know they have been provided a once-in-a-generation opportunity to legally make obscene sums of money. (Note: Many won’t admit this fact; they just think they are (were) much smarter than everyone else.) Yet they know that it is mathematically and financially impossible for the United States, much less all the other Western democracies, to repay the mountains and mountains of debt they have borrowed to finance our lifestyles. They have resigned themselves that a collapse is inevitable. They don’t yet know the date, the time, or the ferocity of that collapse, but they intend to use their wealth to insulate themselves as best they can, e.g., by buying an island in the South Pacific, stocking it well and hiring a bunch of Navy SEALs for protection.

What I believe most people overlook is that politicians will always be politicians, and there is no way they will ever allow themselves to be blamed for the excesses of the last 30-odd years. Think about it. If a collapse were to take place, the politicians would need to hide from the citizens who lose everything. Literally. What would you do if, in a matter of days, you lost almost everything you had worked for during your entire life, including your pension, IRA, Social Security benefits, insurance benefits, etc.?

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Interestingly, the government has done much to protect itself. Or might I rephrase that statement to say that our government leaders have done a great deal to protect themselves and their families. Over the course of the last two decades alone, the federal government spent hundreds of billions of dollars designing, building and refining an elaborate Continuity of Government Plan (COG) that consists of over 100 classified facilities designed to protect the leadership of the nation during crisis – any crisis, of any magnitude and any duration.

Oh, you say, you have not received the briefing necessary, nor been issued the credentials by FEMA or DOD, to access one of these facilities? Well, don’t feel bad, you are in the same situation as most Americans … unprepared and suffering from Normalcy Bias. All the while the Russians have built the most formidable offensive (nuclear) rocket force in the history of mankind and have increased their investments in their impenetrable Yamantau mountain complex that is rumored to be over 400 square miles in size. (Yes, miles). The Chinese have made similar investments in offensive nuclear capability, including the construction of 3,000 miles of underground tunnels to protect their populace. In the meantime, and particularly under the current administration, the United States accelerates its voluntary disarmament.

So where am I going with this? Where we started, or should I say, where it ends. War. Unfortunately, this is the only way that no one group can be held accountable for decades of poor decision making and the financial calamity that is upon us. Whether they be bankers, politicians, or their advisers, they are all culpable. They are, however, way too connected and way too smart to take any blame for the coming financial collapse.

Other players are emerging on the world stage who have their own agenda and will likely facilitate, or at the very least, take advantage of, the financial crisis that looms over the West. Most Americans are ill-equipped to recognize such threats, much less foresee their logical outcome. In follow-on articles, I hope to explore specific geopolitical threats the United States faces and why our cultural blinders prevent us from acknowledging or preparing for them.

“The Dead Man’s Curve” is an expression used by helicopter pilots to describe a particular flight profile where the aircraft is flown so low and slow that, if the engine were to quit, the pilot would surely die, as there would be insufficient altitude to complete an auto rotation.

Due to the monetary house-of-cards outlined here, and the confluence of growing geopolitical threats, political impotence and pressing cultural change, the United States and most other Western democracies are operating well within “The Deadman’s Curve.”

You have been warned. Recalibrate your mindset. Now prepare.