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:
·
INDIA FACES DEFAULT, RESTRUCTURING AS DEVALUATION LOOMS - http://economictimes.indiatimes.com/news/economy/indicators/india-faces-default-restructuring-as-devaluation-looms/articleshow/13397208.cms
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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