What will another major terror strike mean? Should an attack hit one of the major NATO nations, the effects, this time, will go global. Bank holidays will be called, the US and other fragile economies will crumble, gold and silver will soar, and already-troubled currencies will crash. Economic martial law will be declared. Introduced as a temporary measure, once in place it will remain in place (like the curfews and draconian security precautions installed by despots and dictators everywhere). Civil rights will be suspended and, particularly in America, Homeland Security, already intolerably intrusive, will achieve an Orwellian omnipresence.
With banks closed and economic martial law inplace, restrictions will be set on the amounts, times and frequency of withdrawals. As we have cautioned before, it will be essential to have a stash of cash on hand. Even though governments will devalue their currencies, it will happen in stages. Speaking only for ourselves, we at The Trends Research Institute will not be storing precious metals in bank safe deposit boxes.
Since “terrorism” is now a term we can use to describe just about any action deemed a threat to the public and government infrastructure, the possibilities for what the next “terror attack” will look like are endless. It can come in the form of suicide bombers at your local shopping mall, a cyber attack on financial markets launched via the internet, or any number of other potential threats that have been recently highlighted by our Department of Homeland Security.
There need be only a single event that occurs at an opportune time and is pushed by the mainstream media and all hell will break loose.
Imagine, for a minute, what America would look like if nationwide curfews were implemented, civil rights were suspended (including confiscation of guns), the US dollar crashed, ATM’s and credit card transactions were restricted, and food and gas purchases were limited.
The Presidential executive orders are in place, Fusion Centers and FEMA detention camps are operational, and 20,000 US troops have been trained to deal specifically with economic collapse and civil unrest and are ready to be deployed immediately.
Author: Mac Slavo
Date: August 1st, 2011
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Spending Has Collapsed, the Economy Is Next
We’ve been warning about it since the beginning of this crisis – that consumers are simply not interested in spending money they don’t have. In the first quarter of 2011 the government attempted to convince us that the economy was growing at a slow, but steady, rate of 1.8%. This was used as evidence the economic recovery had taken hold.
President Obama and his administration specifically told us that a depression had been avoided:
We can safely say that we are no longer facing the potential collapse of our financial system and we’ve avoided the depression many feared.
President Barrack Obama – December 9, 2009
But today’s growth domestic product revisions suggest otherwise.
That 1.8% that convinced the average uninformed American economic activity had increased was nothing but a fabrication – a bold faced lie – and that’s official. The government revised that number to 0.4% – a significant difference. They were only off by about 75%.
Today, the government released it’s second quarter GDP numbers, and as was predicted in many alternative media circles, it’s a clear indication that things are turning for the worse. Karl Denninger weighs in:
Sorry guys, the clock has rung. It’s not ringing any more, it has rung and the spring-powered alarm has run out.
There is no recovery to speak of.
Four years into this the policies of the government and Fed have failed.
It gets worse:
“The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 3.2 percent in the second quarter, compared with an increase of 4.0 percent in the first Excluding food and energy prices, the price index for gross domestic purchases increased 2.6 percent in the second quarter, compared with an increase of 2.4 percent in the first.”
(source: US Dept. of Commerce)
Your standard of living is being shredded.
“Real personal consumption expenditures increased 0.1 percent in the second quarter, comparedwith an increase of 2.1 percent in the first.”
(source: US Dept. of Commerce)
Spending has effectively collapsed.
This puts into stark relief the reality of the government deficit spending – it is doing nothing more than covering up an economic Depression, and the so-called “exit plan” – that private consumption, investment and borrowing will “take the baton back” is not working.
Some analysts – those who are either in the tank for the government or are completely ignorant to the real facts – will claim that while the second quarter GDP is low, it’s still positive, which suggests there’s still growth.
As we have pointed out in several reports previously, this is simply not the case once you factor in price inflation and monetary easing:
Note that they have the CPI at 10%. If we use that to convert nominal GDP to actual GDP, then we get big negative economic growth. In other words, the reported GDP growth is just price increases.
If it wasn’t clear up until today, it should be now. Nothing the government tells us can be trusted. They will say anything and do anything to avoid panic. But despite their “best” efforts they cannot stop the inevitable. Rest assured, panic is coming.
Author: Mac Slavo
Date: July 29th, 2011
Chapman: ‘There Is No Question Now That the Game Is Over’
Bob Chapman doesn’t mince words in his most recent report Crisis And Collapse Unfortunate but Inevitable:
The euro zone foisted one interest rate fits all, all on countries that should have never had the same interest rates as say Germany. We talked about both these issues 14 years ago, but as usual, no one was listening. From the very beginning the EU and the euro zone were doomed. Both are going to now begin the process of disintegration, as both are a failure. The six countries will go bankrupt, as will the banks. That will dislodge England and push it into bankruptcy and that in turn will force the US to follow. That may be the catalyst that forces a meeting of all nations to revalue, devalue and multilaterally default, hopefully such a meeting will occur long before this stage is reached. There is no question now that the game is over. The question now is when?
Workers have become a form of inventory just like widgets. For years now companies have laid off and rehired workers at will, keeping the expensive worker participation to a minimum. If you use total figures and include discouraged workers the unemployed are 20.6 million, up 483,000 in June. We do not see stimulus 3 coming from Congress, so we expect unemployment to resume its relentless rise upward from 22.6%. Mind you unemployment reflects $1.7 trillion in stimulus 1 and 2, and QE 1 and QE 2, which takes us well over 44 trillion. All those injections did was to bail out the financial sector and government. As we know our President tells us the administration created three million jobs, at a cost of $266,000 per job. That is hardly something to write home about.
Year-on-year in the municipal sector 450,000 workers are going to lose their jobs, because many of these entities are close to broke. They and the states want more money from the federal government, which it doesn’t have to give.
If the Fed does not inject $850 billion into the economy we are looking at a minus 3% to 5% in GDP. That is in addition to buying $1.7 trillion in treasuries and other associated toxic waste.
The newest recession began a few months ago, or should we say downturn in an inflationary depression. There will be no recovery this year or next without $850 billion additional being thrown into the economy. No 3.5% growth. Perhaps a minus 4% if we are lucky. That should put unemployment close to 25% by 2012.
They may pretend like everything is fine and dandy but the facts are clear: Everyone is broke.
Greece, Ireland, Italy, Portugal, Italy, Spain and the UK are broke.
The US government is broke.
The American people are broke.
When 25% of the people have no income coming in and prices for basic goods continue to rise, there will be no upward movement in the economy. Consumers cannot spend, because they have nothing left – their incomes have been eliminated and so too has their credit.
The only hope for growth is more easing by the Fed and more stimulus from Congress, but even that is masking the problem. We may see positive GDP growth as a result, as we have “officially” seen in recent quarters, but this is strictly a mathematical result of rising inflation and increased government sector spending.
It does not mean that there is job creation or traditional consumer spending and economic growth.
The mathematics of this makes our eventual economic destruction an inevitable reality. There is simply no way to stop it.
Hat tip John Rolls
Author: Mac Slavo
Date: July 20th, 2011