Stunning Chart: Today’s Stock Market is Eerily Reminiscent of 1929…

Mac Slavo

With the holiday shopping season off to a slow start according to preliminary retail sales numbers and with the stock market sitting near all time highs, one can’t help but wonder what will happen when investors realize the economy isn’t really doing as well as we’ve been told by the experts.

The evidence suggests that we can expect devastating global economic changes in 2014 as a result of our national debt, further impoverishment of the working class, and massive new tax burdens resulting from President Obama’s health care legislation. The fundamentals, by most accounts, are indicative of an economy on the cusp of a total detonation within the next year.

Market Strategist: “We’re on the verge of a great, great depression”

Dees Illustration

Margo D. Beller
CNBC

Wall Street Baffled by Slowing Economy, Low Yields: Trader

Wall Street is having a hard time figuring out what to do now that the U.S. economy appears to be sputtering and yields are so low, Peter Yastrow, market strategist for Yastrow Origer, told CNBC.

"What we’ve got right now is almost near panic going on with money managers and people who are responsible for money," he said. "They can not find a yield and you just don’t want to be putting your money into commodities or things that are punts that might work out or they might not depending on what happens with the economy.

"We need to find real yield and real returns on these assets. You see bad data, you see Treasurys rally, you see all bonds and all fixed-income rally and then the people who are betting against the U.S. economy start getting bearish on stocks. That’s a huge mistake."

Stocks extended losses after the manufacturing fell below expectations in May and the private sector added only 38,000 jobs during the month. 

"Interest rates are amazingly low and that, thanks to Ben Bernanke, is driving everything," Yastrow said. "We’re on the verge of a great, great depression. The [Federal Reserve] knows it.

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PREPARING FOR REVOLUTION: PROGRESSIVE MEDIA KNOWS FOOD CRISIS AND VIOLENCE ARE COMING

The Blaze


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Europe stumbles blindly towards its 'Great Depression' moment

It is the European Central Bank that should be printing money on a mass scale to purchase government debt, not the US Federal Reserve.

Ambrose-Evans Pritchard
Telegraph

Unless the ECB takes fast and dramatic action, it risks destroying the currency it is paid to manage, and allowing a political catastrophe to unfold in Europe.

If mishandled, Ireland could all too easily become a sovereign version of Credit Anstalt - the Austrian bank that brought down the central European financial system in 1931, sent tremors through London and New York, and set off the second deeper phase of the Great Depression, the phase when politics turned ugly.

“Does the ECB understand the concept of contagion?” asked Jacques Cailloux, chief Europe economist at RBS. Three EMU countries have already been shut out of the capital markets, and footloose foreign creditors hold €2 trillion of debt securities issued by Spain, Portugal, Ireland and Greece.



“If that is not enough to worry about financial contagion, what is? The ECB's lack of action begs the question as to whether it is fulfilling its financial stability mandate,” he said. That is a polite way of putting it.

The eurozone’s fiscal fund (European Financial Stability Facility) is fatally flawed. Like Alpinistas roped together, an ever-reduced core of solvent states are supposed to carry the weight on an ever-widening group of insolvent states dangling beneath them. This lacks political credibility and may be tested to destruction if – as seems likely – Ireland is forced to ask for help. At which moment the chain-reaction begins in earnest, starting with Iberia.

It was a grave error for Germany’s Angela Merkel and France’s Nicolas Sarkozy to invoke the spectre of sovereign defaults and bondholder “haircuts” at this delicate juncture, ignoring warnings from ECB chief Jean-Claude Trichet that such talk would set off investor flight from high-debt states.

EU leaders have since made a clumsy attempt to undo the damage, insisting that the policy shift would have “no impact whatsoever” on existing bonds. It would come into force only after mid-2013 under the new bail-out mechanism. Nobody is fooled by such a distinction.

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Behind federal government's lies: real economic numbers prove US in Great Depression

Terrence Aym
Helium

The US government has been playing with the economic numbers for years and now the statistics have become nothing more than a carnival shell game.

Unfounded allegations? Read on...

John Williams* of American Business Analytics & Research LLC, has meticulously compiled the real numbers for inflation, unemployment, the money supply, and several other closely watched economic indices. The real numbers are more than just eye-opening, they are downright disastrous.

Numbers reveal an economy as bad as 1930s depression.

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UN Policy Paper Describes Incremental Steps Toward World Government

Jurriaan Maessen
Infowars.com
September 30, 2010

“The governments of Europe, the United States, and Japan are unlikely to negotiate a social-democratic pattern of globalization – unless their hands are forced by a popular movement or a catastrophe, such as another Great Depression or ecological disaster”

Richard Sandbrook, Closing the Circle: Democratization and Development in Africa, Zed Books limited, London, 2000.

	Self-described ‘ecosocioeconomist’ professor Ignacy Sachs.

A 1991 policy paper prepared for the United Nations Conference on Environment and Development (UNCED) by self-described ‘ecosocioeconomist’ professor Ignacy Sachs outlines a strategy for the transfer of wealth in name of the environment to be implemented in the course of 35 to 40 years. As it turns out, it is a visionary paper describing phase by phase the road to world dictatorship. As the professor states in the paper:

“To be meaningful, the strategies should cover the time-span of several decades. Thirty-five to forty years seems a good compromise between the need to give enough time to the postulated transformations and the uncertainties brought about by the lengthening of the time-span.”

In his paper “The Next 40 Years: Transition Strategies to the Virtuous Green Path: North/South/East/Global”, Sachs accurately describes not only the intended time-span to bring about a global society, but also what steps should be taken to ensure “population stabilization”:

“In order to stabilize the populations of the South by means other than wars or epidemics, mere campaigning for birth control and distributing of contraceptives has proved fairly inefficient.”

In the first part of the (in retrospect) bizarrely accurate description of the years to come, Sachs points out redistribution of wealth is the only viable path towards population stabilization and- as he calls it- a “virtuous green world”. The professor:

“The way out from the double bind of poverty and environmental disruption calls for a fairly long period of more economic growth to sustain the transition strategies towards the virtuous green path of what has been called in Stockholm ecodevelopement and has since changed its name in Anglo-Saxon countries to sustainable development.”

“(…) a fair degree of agreement seems to exist, therefore, about the ideal development path to be followed so long as we do not manage to stabilize the world population and, at the same time, sharply reduce the inequalities prevailing today.”

“The bolder the steps taken in the near future”, Sachs asserts, “the shorter will be the time span that separates us from a steady state. Radical solutions must address to the roots of the problem and not to its symptoms. Theoretically, the transition could be made shorter by measures of redistribution of assets and income.”

Sachs points to the political difficulties of such proposals being implemented (because free humanity tends to distrust any national government let alone transnational government to redistribute its well-earned wealth). He therefore proposes these measures to be implemented gradually, following a meticulously planned strategy:

“The pragmatic prospect is one of transition extending itself over several decades.”

In the second sub-chapter “The Five Dimensions of Ecodevelopment”, professor Sachs sums up the main dimensions of this carefully outlined move to make Agenda 21 a very real future prospect. The first dimension he touches upon is “Social Sustainability”:

“The aim is to build a civilization of being within greater equity in asset and income distribution, so as to improve substantially the entitlements of the broad masses of population and of reduce the gap in standards of living between the have and the have nots.”

This of course means, reducing the standards of living in “The North” (U.S., Europe) and upgrading those of the developing nations (“The South and The East”). This would have to be realized through what Sachs calls “Economic Sustainability”: “made possible by a more efficient allocation and management of resources and a steady flow of public and private investment.”

The third dimension described by the professor is “Ecological Sustainability” which, among other things, limits “the consumption of fossile fuels and other easily depletable or environmentally harmful products, substituting them by renewable and/or plentiful and environmentally friendly resources, reducing the volume of pollutants by means of energy and resource conservation and recycling and, last but not least, promoting self-constraint in material consumption on part of the rich countries and of the privileged social strata all over the world;”

In order to make this happen Sachs stresses the need of “defining the rules for adequate environmental protection, designing the institutional machinery and choosing the mix of economic, legal and administrative instruments necessary for the implementation of environmental policies.”

Dimension 4: “Spatial Sustainability”:

“directed at achieving a more balanced rural-urban configuration and a better territorial distribution of human settlements and economic activities (…)”.

The fifth and last dimension described in the UN policy paper is “Cultural Sustainability”: “looking for the endogenous roots of the modernization processes, seeking change within cultural continuity, translating the normative concept of ecodevelopment into a plurality of local, ecosystem-specific, culture-specific and site-specific solutions.”

But to realize such a dramatic new direction for the world, Sachs once again stresses the importance of incremental implementation. A matter of boiling the frog slowly as opposed to throwing the poor animal into a boiling-hot cooking pan:

“Even if we know where we want to get, the operational question is how do we proceed to put humankind on the virtuous path of genuine development, socially responsible and in harmony with nature. It is submitted that UNCED 92 should give considerable attention to the formulation of transition strategies that could become the central piece of the Agenda 21.”

This is the word- Agenda 21: the UN strategy for redistributing the wealth accumulated by the “North” in order to create a completely “balanced” world society- under auspices of the United Nations of course and the private central banks controlling it. This can only come about by destroying the middle-class. A sudden redistribution and industrialization would not do- for the middle-class would undoubtedly rise in defiance against it. Therefore, Sachs argues for an incremental and carefully planned dissolution of the middle-class phase by phase:

“To be meaningful, the strategies should cover the time-span of several decades. Thirty-five to forty years seems a good compromise between the need to give enough time to the postulated transformations and the uncertainties brought about by the lengthening of the time-span. The retooling of industries, even in periods of rapid growth, requires ten to twenty years. The restructuration and the expansion of the infrastructures requires several decades and this is a crucially important sector from the point of view of environment.”

Then Sachs plunges into his most shocking statement:

“However, the single most important reason to consider the transition strategies over a minimum of thirty-five to forty years stems from the non-linearity of these strategies; they should be devised as a succession of changing priorities over time. A good illustration is provided by the population transition. In order to stabilize the populations of the South by means other than wars or epidemics, mere campaigning for birth control and distributing of contraceptives has proved fairly inefficient.”

Sachs argues that “an accelerated programme of social and economic development of the rural areas should be the outmost priority in the first phase of a realistic population stabilization scheme.”

Who or what is to coordinate all this, according to Sachs, and how exactly is the UN to take control?

“The solutions”, says Sachs, “can vary in terms of their boldness and take the form of global, multilateral or bilateral arrangements.” These arrangements should as far as Sachs is concerned ensure “at least partially the automacity of financial transfers by some form of fiscal mechanisms, be it a small income tax or an array of indirect taxes on goods and services whose production and consumption has significant environmental impacts.”

Over time, gradually, these taxes should increase:

“Starting the operation with a one per ten thousand tax and increasing it so as to reach one per thousand in ten to twenty years seems a fairly realistic proposal, the more so that the scheme creates an interesting market for the private enterprises involved in R and D.”

Reading all this, the question as to what entity should take charge is not difficult to answer. Sachs:

“In order to generate maximum synergies between the national strategies and global action, the United Nations should create a forum for the periodical discussion and evaluation of these strategies and a research, monitoring and flexible planning facility to put them in a global perspective.(…). The forum should have a fair representation of all the main actors involved: governments, parliaments, citizen movements and the business world. Given its importance, it should be lifted from specialized agencies to a central place in the UN system.”

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The “fair representation” Sachs is talking about is of course only a pretext to get everybody on board. As the “Danish Text”, drafted for the Copenhagen conference in late 2009, clearly illustrates, the IMF and World Bank will always have final say in the construction of any international system.

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It’s the Dollar, Stupid

Kurt Nimmo
Infowars.com
September 27, 2010

For the sixth day in a row, the price of gold has skyrocketed. On Monday, the precious metal climbed to a 30-year high as fiat paper money values tumbled. Gold for immediate delivery rose as much as 0.3 percent to an all-time high $1,300.15 an ounce.

Instead of rushing into government created paper assets, investors are buying gold and silver.

Instead of rushing into government created paper assets, investors are buying gold and silver.

“There is a net devaluing of currencies,” James Moore, an analyst at TheBullionDesk.com in London. told Bloomberg this morning. Gold gained as Ireland prepares to bail out Anglo Irish Bank Corp. and speculation over European banks lacking adequate capital.

The dollar fell after Ben Bernanke announced the Federal Reserve is prepared to launch a new round of quantitative easing by buying millions of dollars of bonds.

The Federal Open Market Committee’s September 21 statement said it “will continue to monitor the economic outlook and financial developments and is prepared to provide additional accommodation if needed to support the economic recovery.” Quantitative easing is a term used when the Fed increases the size of the money supply and floods financial institutions with capital in order to promote increased lending and liquidity.

It should be noted that the Fed used quantitative easing during the first Great Depression. The Fed began to purchase securities in the open market in April of 1933 and eventually shifted to the Treasury and the White House through gold purchases. On August 28, 1933, Roosevelt moved to confiscate all gold held by citizens.

JPMorgan Chase & Co. said there is a 75 percent chance that the Fed will start another round of “asset purchases” before the end of this year to boost the economy, supporting Treasury bond prices, according to Bloomberg.

However, as Bob Chapman of the International Forecaster noted earlier this month, the Fed effort is doomed to fail in a spectacular way. “What the Fed has been approaching since June is a ‘liquidity trap.’ That is when loans are offered to business and they refuse to borrow. They stop using credit because they question the future of the economy, their government and the specter of new taxes in the future. Money and credit is available, but few want to assume the risks to borrow,” writes Chapman.

Instead of rushing into government created paper assets, investors are buying gold and silver. “This market is the exact opposite of the gold and silver markets, which are in an 11-year bull market. The metals separated from the dollar 15 months ago and they have already won the battle of the world’s only real currency. Gold has gained 15% a year for those last 7 years. This is a secular bull market and cannot be denied. Further, gold has appreciated annually against every currency,” writes Chapman.

Central banks around the world have moved into gold, a trend that began in the 1980s. India, China, Russia, and other nations have increased their gold reserves as fiat currencies hit the skids and the Greatest Depression picks up steam.

The continued gold rush and the remarkable rise in prices of both gold and silver represent a bellwether for the demise of the dollar. The decline of the dollar means millions of Americans will suffer a huge loss of purchasing power and a sharp decline in living standards. In fact, this process is now already well underway as unemployment rises and the middle class shrinks in size.

It is not the vagaries of the stock market or inept government economic policy that has ushered in the Greatest Depression.

The Federal Reserve is not run by clueless government bureaucrats. It is a subsidiary of the bankster cartel and federal only in name.

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The Greatest Depression now underway is an engineered event. The destruction of the dollar, the increase in the fiat money supply that will create merciless inflation, and the slow withering away of the middle class — all of this is part of the plan to remake the world as the globalists see it.

If the Greatest Depression is allowed to continue unabated — and it looks like it will — billions of people will be reduced to serfdom under a global government scheme cooked up by the elite.

–

Kurt Nimmo edits Infowars.com. He is the author of Another Day in the Empire: Life In Neoconservative America.

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Why Hyperinflation is Coming and How to Prepare Now

Eric Roseman
Sovereign Investor

“We all keep worrying deflation, but it can turn so fast” – Adam Fergusson

Back in 1980 when my late grandfather, Abe Roseman, passed away, I inherited numerous personal items. These included tie bars, cufflinks, his old desk and lamp, and several other reminders of my childhood that to this day always put on a smile on my face.

Thirty years later, rummaging inside my late grandfather’s desk, I found 55 ounces of silver. Somehow, after all those years, I failed to pry open every drawer; what a surprise! How did he know I was a silver bull?

Or, perhaps, he wanted to be prepared for hard times.

Wisdom in Experience

I was pretty close to my grandfather. Abe was born in 1911 and lived through the Great Depression in Montreal. My grandmother would later remind me how bad things were in Canada at the time with unemployment at absurdly high levels from coast-to-coast. My grandparents knew how to be frugal and understood the value of money.

My generation (I’m in my early 40s) doesn’t know what it means to suffer an economic catastrophe; but we came darn close in 2008. I think we’re already in a “soft” economic depression. By “soft” I mean that without government backstops two years ago, we’d see blood in the streets, civil chaos and, possibly, runaway inflation by now.

In my view, this is a depression.

When 2 Million Marks Won’t Buy a Loaf of Bread

One item I inherited from my grandfather in 1980 was a bunch of old German bank notes, neatly tucked away in a plastic folder. At the ripe age of 14, I had no clue what these bills were worth, let alone what the German inscription meant. So I just buried Grandpa’s stash in my safety deposit box for the next 30 years.

Last month, however, I decided to review the causes and effects of the German Weimar Republic’s hyperinflation in the 1920s. I went to the bank and got Abe’s German notes. To refresh my history I read Adam Fergusson’s When Money Dies, first printed in 1975. I urge every investor to grab a copy ahead of “Quantitative Easing Part II” this summer.

It turns out my grandfather kept a bunch of German marks from periods ranging from 1922 to 1924; the note below is a scan. The amount is Zwei Millionen Mark or 2 Million Marks printed on Aug. 15, 1923 – exactly the same year that mind-boggling inflation started to run out of control in Germany.

Unbelievably, two million marks could barely buy a loaf of bread. Within hours, prices would escalate rendering that loaf to 3 million marks, four million marks etc. German paper had become almost worthless. Hyperinflation wiped out the entire middle class.

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