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Thursday, May 24, 2012

Economic Collapse Update May 24, 2012

Economic Collapse Update May 24, 2012 - Zombie Collapse close to death


Transcript of video report:


Hello: This is Paul Sandhu with another Economic Collapse News Update on Wed. May 24, 2012. Today I want to reference a few reports that will prove to us once again, and hopefully for all time, that the world is in the midst of an unprecedented Economic catastrophe not just another crisis. For the longest time the MSM was telling us that the BRICS nations would save the day for the Global Economy. Most analysts who were not on the payroll of the banksters / gangsters that run the world warned that the emperor had no clothes, especially in regards to India. Now as facts fast overtake the fiction of CNBC, Bloomberg, the WSJ and others, it turns out that these nations are on the precipice themselves; it is highly doubtful that they will be able to save their own hides let alone that of America and Europe. How shameful it is that the world has come to this stage where the wealthiest and most developed nations of the world have to look for handouts from two of the most destitute nations on Earth, China and India. Yes they both have shiny new glass and steel towers in Shanghai and Mumbai but the majority of people in these countries do not earn enough to afford two subsistence level meals a day let alone 3 square meals. Everyone thinks of some sub-Saharan nations in Africa as the most destitute in the world but the fact is that India has the largest percentage of malnourished people, especially malnourished children, in the world. A country that cannot even afford to feed half its population is supposed to save the world? Hundreds of millions of people in China are similarly poverty stricken and destitute; yet the media paints China as the next Economic / military power in the world. Pull all the Western corporations out of China and India, and these nations will not only be third world, they will be fifth or sixth world. These obvious truths continue to elude the MSM, and therefore the majority of people that watch CNN, CNBC etc. remain forever ignorant, believing media hype like the Facebook IPO rather than studying for themselves and becoming educated in facts, not in media fictions.

Let me begin with this report on India from The Economic Times:

SINGAPORE: India's mounting economic and political woes are prompting market players to raise the spectre of a crisis in Asia's third largest economy.  "It could go to stratospheric levels against the dollar and it looks to me as if the Indian government is aiming at a de facto devaluation in an effort to prop up flagging economic growth. And you then have to worry about all the unpleasant consequence such an action would inevitably lead to, such as straining further the country's already strained balance of payments as well as bringing on an almighty wave of inflationary pressure," said a credit analyst at a ratings agency in Singapore. As the country's government faces political impasse amid infighting, principally between prime minister Manmohan Singh and finance minister Pranab Mukherjee on the subject of tax reform, and India limps from one corruption scandal to the next, the sense of decay is palpable. 

I have been saying for years that India’s Economic miracle is actually a mirage, and when reality bites, it will be catastrophic for that nation. I personally see their problems developing into a civil war, or to prevent that from happening, India may launch a war against Pakistan to detract from their domestic Economic problems that cannot be resolved even if the uber-corrupt politicians had the will to try and resolve the Economic woes of this mostly destitute nation.

In my report last week I had mentioned that the problem with the statistics coming out of China and the world as a whole are about as reliable as those that came out of Stalin’s Soviet Union. Now Bloomberg is reporting that CHINA IS A BLACK BOX OF MISINFORMATION: Here’s a quote: China as a whole is a giant black box -- no one really knows what is in it. Chinese bureaucrats don’t have any interest in reporting anything that doesn’t paint a good picture, and, even if they did, the statistics bureau remains woefully inadequate.” So once again that which was obvious to any reasonable person is now dawning upon the MSM; it has taken them only 30 years to figure out that China’s Statistics Bureau is woefully inadequate. The reason that Bloomberg and others have suddenly seen the light in regards to China is that we are close to the point where China will implode internally and will therefore refuse to buy any more US Treasuries sending the dollar into a tailspin whereas it is now soaring. Don’t believe for a moment that the dollar will become strong again, it is destined to die an inglorious death, and in the near future. When the true state of China’ Economy can no longer be hidden, Bloomberg, CNBC and their ilk will come out and say, ‘we told you Chinese statistics cannot be trusted’, whereas they have been reporting these very same Chinese Govt. Propaganda statistics as Gospel truth for 30 years now!

·        In this clip on China, Charles Biederman, posted this video report on his Daily Edge update titled, IS CHINA IN RECESSION? Since Charles quite succinctly explains the true state of China’s Economy, I will just play this 3 minute video and let Charles do the talking.

To add to what Charles Biederman stated in the video clip I just played, I will quote from this News report from Bloomberg:

“Chinese Premier Wen Jiabao’s pledge to focus more on bolstering growth spurred speculation the government will step up efforts to combat a slowdown in the world’s second-largest economy. Wen called for “putting stabilizing growth in a more important position” and didn’t mention concerns about inflation in remarks published yesterday by the official Xinhua News Agency. China may announce stimulus actions in the near term, according to a front-page commentary today in the China Securities Journal, which is published by Xinhua.” http://www.bloomberg.com/news/2012-05-21/wen-growth-pledge-spurs-speculation-of-china-stimulus.html

So the leader of the 2nd largest Economy in the world has announced publicly and loudly that the Chinese govt. will do everything it can to support growth. We need to ask ourselves does a healthy economy really need to be supported? For example if a person is healthy and has strong legs, does he need crutches? However if a leg is broken, crutches or support is required. If the body is weak and old and the legs can no longer support the weight of the body, then a wheelchair is required. If a leg got injured and infection set in, eventually the gangrenous leg will need to be cut off, and if the infection spreads to both legs, a double amputation will be required. So the worse the condition of the body, the more support it requires. Just the fact that some type of support is required proves that the body is not healthy.
Similarly, the more support a government has to provide to its economy, the unhealthier it is. The state of a nation’s economy or that of the Global Economy can be determined by the amount of support it is receiving from a government or governments. So let’s see which economies are currently being supported, and by how much:

In the US, since 2007, we have seen TARP, bailouts of banks and corporations, QE 1 and QE 2, Operation Twist (sounds like a fun Saturday night from the 50’s but is anything but that), unlimited access for dollar swap lines to European governments and banks. For the first time ever, a foreign nation, China, has been given direct access to treasury purchases, bypassing Wall Street. UE benefits were extended to 99 weeks, double the normal length of time for such benefits. Billions in stimulus checks were mailed out to Americans and probably much more was done, and is being done behind the scenes. The support of the Economy that began with the $700 billion TARP bailout has by now increased to over $20 trillion, possibly a lot more, yet the market is screaming for QE3. Does this prove that the Economy is recovering or that is it more terminal than ever before?

The same schemes and scams have been practiced in Europe by the European Central Bank, and by the Bank of England, and also by the Bank of Japan; even Switzerland has supported its banks and intentionally devalued its currency. China engaged in a bigger stimulus program than the US, and Canada and Australia did the same. Even India that can hardly feed half its citizens one square meal a day has spent billions in stimulus to maintain the illusion of growth. The problem with illusions is that they are exactly that, illusions, not reality! No matter how strong the illusion, it is only a matter of time before the illusion is shattered. And we are fast approaching that day!
In order to peek behind the curtain that has been erected by the Economic physicians to hide the true state of the patient even as they are busy amputating more and more parts of the Global Economy. To hide this fact they have created a wonderful illusion of growth and recovery that is blasted 24/7 by the MSM into the psyches of the uninformed masses. However, it is easy to determine the true state of the patient by calculating the amount of support that is being offered to keep the patient alive. The greater the amount of stimulus and money printing, aka QE, the worse the condition of the patient. Since we have gone from offering 700 billion in support to an amount at least 20 times greater, it is obvious that the condition of the patient is 20 times worse than it was in 2007. So is the Global Economy closer to recovery or is it closer to death? I think the answer to that question is obvious. Keep a close eye on how much support governments will throw at the Global Economy in the form of stimulus, bailouts and Quantitative Easing; the greater the amount of support that is offered, the worse the Economy is getting not better. If after offering support equal in value to half the GDP of the entire planet, more support is required then I’m afraid the patient is terminal, maybe already dead! What we may have is a Zombie Economy, but the trouble with zombies is that they devour everything in their path. So have no more illusions; the Global Economy is dead, all that is left to be done is to bury it. That day will come when there is a run on the US dollar, and it may well happen in 2012, if not, then almost certainly in 2013. A Zombie Apocalypse is coming, get out of Dodge while you can; and by that I mean get out of big cities like New York, LA, Chicago, London, Toronto etc. Goodbye, meaning God be with you: till next time, this is Paul Sandhu. 

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