The U.S. and Europe are being governed by a small group of elitists. You can recognize them in most of the countries, and, of course, in the international financial institutions.
These are very intelligent and sophisticated people, but they lack long term perspective. Under their hands, the economies of the U.S. and Europe are crumbling. A salient piece of evidence is the behavior of the large international bank HSBC. HONG KONG and SHANGHAI BANKING CORPORATION got out of New York State, by selling all its branches to an American Bank.
HSBC then announced it would cut 30,000 jobs worldwide.
HSBC is a very experienced bank with a long history of working around the world in all sorts of economic situations. Its financial strength is excellent.
It is getting out of the U.S. and reducing its work force because it sees the world economy slowing in the next few years.
The Directors of HSBC have a very clear vision of the Balance Sheet of the world: “ The U.S. is facing 60 TRILLION dollars of debt!” This statement was made by the CEO of the world’s largest bond fund PIMCO by Bill Gross, its CEO.
“Eventually there’s a downgrade coming, it just depends on Moody’s, S&P and Fitch and they’re very slow-moving,” Gross said. “This country has $10-12 trillion worth of outstanding debt. In addition however we’ve got about $60 trillion worth of liabilities. I call this Debt Man Walking.”
There is absolutely no way that the U.S. can repay or even reduce this debt, since the interest carrying costs are so great.
“Reuters – Financial market pressure on Italy intensified on Tuesday, sucking Europe’s biggest debtor nation deeper into the euro area danger zone and prompting Italian authorities to call emergency talks.
Italian bond yields hit their highest level in the euro’s 11-year lifetime, ominously reaching the same level as Spain’s in a sign that Rome is overtaking Madrid as the main focus of investors’ concern about debt sustainability.”
Europe is in a downward spiral.
As I mentioned above, both Europe and the U.S. are controlled by a small elitist group, whose major area of earnings are from banks and financial institutions.
This is a historical fact that goes back three centuries to the beginning of European banking.
From the days of the Rothschild banking empire, which began in 1744 in Germany, and spread across Europe, banks have continually loaned money to governments which then spent that money in useless endeavors such as wars. This systemic looting of the population by banks has not ended.
However, it seems to have reached an end phase where the quantity of debt is now so great that the European population cannot repay it.
Approximately twenty years ago, the banks which lent money to the governments reached the end of their resources. They could not lend more unless they could find a new source of money.
Europe and the U.S. were financially dry. The bankers turned to Asia. The Asians were intrigued. They did not have the capital, but they were already selling their products to the West.
Instead of demanding cash, the governments of China and Japan decided to accept U.S. and European government debt.
Russia, a source of oil and gas and other raw materials, also began to accept U.S. Government debt.
These three countries now hold in excess of FIVE TRILLION dollars worth of U.S. and European governmental debt. When a lender loans too much money to one or two clients, the lender becomes as weak as the entities that are borrowing. China and Japan are now dependent on the viability of the Western economies!
Approximately 80 years ago, the entire world went through the devastation of the world’s worst economic collapse: The Great Depression of the 1930’s. The living standards of the entire world plummeted and people faced starvation and lack of housing. Unemployment was universal. The societal evolution of mankind halted and reverted to a primitive level of subsistence.
In that period of time the population of the Earth has more than doubled and technology, based on the energy derived from petroleum, has catapulted living standards to heights undreamed of in the previous century.
People no longer walk or use their body for anything except holding a phone to their ear. People travel across and around the planet effortlessly on huge flying ships. They communicate, as if by magic, to each other, by voice and sight, as though they were in the same room.
This unbelievable jump from utter poverty to incredible material wealth and effortless communication is all based on an economic fiction: No one individual or group or society has the financial capacity to pay for this accumulation of material and technological wealth.
The entire world has entered history’s most expansive, expensive and all inclusive Ponzi Scheme. What we have we cannot pay for and when we realize that it is all based on a fictitious arrangement between financial institutions and an unwitting public it will all crumble.
The investors of the world who are the most observant, the most cautious and the most analytical people, are already pulling away from paper money, stocks, bonds and all things written.
Only those currencies backed by hard working populations, such as the Swiss and the Japanese, are rising in value. All the rest are falling. Gold and all the precious finite metals are going skyward.
There is a small percentage of very observant people on this planet and they can see the economic future clearly.