Tag Archives: IMF

The West Is Collapsing As The East Ascends

The 24 Mega Green City infrastructure project in India will connect Delhi with Mumbai, creating a commerce corridor incorporating 21st century technologies and amenities. – Interview with ZincOne Resources’ Jim Walchuck, The Daily Coin

It seems absurd that Asia is willing and able to build high-speed “bullet” trains to connect large population centers while the United States struggles with an antiquated Amtrak rail system often beset with service interruptions and lethal accidents.   The truth of the matter is that the major U.S. metropolitan areas are beset with massive loads of debt, including a ticking-time debt-bomb in the form of several trillion dollars in unfunded public pension funds.

The Delhi-Mumbai Industrial Corridor is a major infrastructure project that India is developing with Japan. The project will upgrade nine mega industrial zones as well as the country’s high-speed freight line, three ports, and six airports. A 4,000 MW power plant and a six-lane intersection-free expressway will also be constructed, which will connect the country’s political and financial capitals.  – The Daily Coin

The 24 Mega City project underscores the economic, political and cultural contrast between the eastern and western hemisphere countries, with the sun setting in the west and rising in the east.  The west is mired in a catastrophic web of Government-heavy economies that exist on the life support of trillions in money printing and debt issuance. True, some countries like China have relatively high debt levels but they are offsetting that form of fiat currency debasement with massive gold accumulation.  The heart of the problem is highlighted by the graphic below (click to enlarge):

The budget for the U.S. Government will primarily be spent on social security, defense, medicare/medicaid and interest on the Government’s debt. Those five items will burn more two-thirds of the Government’s budgeted expenditures in Fiscal Year 2017.

But don’t bother asking how the Government plans on paying for that.   The funds will come from oldest forms of currency debasement: money printing and debt issuance.  And Trump’s proposed spending agenda will accelerate the growth rate of both .

It’s amazing that the U.S. Government seems to have unlimited funds available to spend on guns, bullets and surveillance of the citizenry.   Ranked in order of expenditures, The U.S. spends more on its military than the next 14 highest ranked countries.  “On the books,” the U.S. spent $597 billion in 2015.  That was 4x more than China and 9x more than Russia (source:  International Institute for Strategic Studies).

While the west, led by the United States, advances its collapse with rampant currency debasement and unbridled imperialism, the east is investing its resources in the future – in the advancement of its civilization.  Perhaps the hallmark of this contrast is best represented by the flow of physical gold from west to east.  The Shadow of Truth has devoted today’s episode discussing some of the signs pointing to the collapse of the west and the rise of the east:

The SDR Is A Trojan Horse For Global Elitists

An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions. They seem to sense – perhaps more clearly and subtly than many consistent defenders of laissez-faire – that gold and economic freedom are inseparable, that the gold standard is an instrument of laissez-faire and that each implies and requires the other.  – Alan Greenspan, “Gold And Economic Freedom” (1966)

The Daily Coin posted an interview with Dr. Warren Coats, one the architects of the SDR.   This is a must-listen for anyone who wants to understand how and why the SDR is nothing more than the monetary instrument of the one world, one Government globalists.

At first, Coats’ statements are infuriating – especially the assertions that are entirely incorrect, like “China doesn’t produce much gold” [sic] – but if you stick with it, you begin to understand why Sun Tsu said “keep your friends close and your enemies closer.”

TDC’s conversation with Dr. Coats provides invaluable insight into the “belly of the beast.” Throughout the interview, you can hear Rothschild’s famous quote about money echoing: “GIve me control of a nation’s currency and I care not who makes the laws.”

In this latest episode of the Shadow of Truth, we dissect Coats’ answers to several of Rory’s questions and explain why the SDR is nothing more than a Trojan horse of sorts designed to provide a “plausible” replacement of the dollar and, more significantly, to advance the New World Order implementation.

Willem Middelkoop: The New SDR Will Lead To Gold And Silver Shortages

My Shadow of Truth partner has posted a compelling interview on his Daily Coin website with Willem Middelkoop.  “The Chinese are not too happy about the current dollar world reserve system and have been quite open and vocal about their wish to change the existing monetary system toward a next phase…”

The Daily Coin/Willem Middlekoop:

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$100 Billion BRICS Fund: Yet Another Nail In U.S. Dollar Hegemony

The BRIC coalition’s alternative to the United States’ IMF is now fully funded and operational.   This new emergency lending agency will disrupt the United States Government’s and EU’s ability to conduct predatory financing raids on countries seeking international financial aid.

Perhaps it means that the next time a Greece event develops, it won’t end with either the U.S. or the EU engaging in full-scale confiscation of the target country’s primary national assets.

The $100 billion BRICS Contingent Reserve Arrangement (CRA) has become fully operational following the inaugural meetings of the BRICS CRA Board of Governors and the Standing Committee in the Turkish capital of Ankara.

“The first meetings of the governing bodies mark the start of a full-scale operation of the BRICS Contingent Reserve Arrangement as an international institution with activities set to enhance and strengthen cooperation,” said a Russian Central Bank statement on Friday.

BRICS leaders Xi Jinping, Vladimir Putin, Jacob Zuma, Narendra Modi and Dilma Rousseff witnessed the signing of the agreement on the CRA in the Brazilian city of Fortaleza in July 2014.

You can read the rest of this article here:  $100 Billion BRICS Monetary Fund Now Operational

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Tsipras Sold Out – Who Cares? The Global Economy Is Still Collapsing

The Greece situation was “fixed” once the the United States IMF began to flex its muscles openly.  Former Assistant Treasurer, Paul Craig Roberts – who can speak from a position of authority on these matters – explained to the world why this was the case a week ago:  Greece And The EU Situation.

So Tsipras, like every modern political leader in every western country, took a big bag of cash from the U.S., and capitulated to the EU’s demands.

Who cares?  Anyone with two brain cells to rub together could have figured this one out.  If Greece fell, it would have triggered the nuclear daisy chain of credit default swaps, of which Deutsche Band, Citigroup and JP Morgan are the largest bag-holders.

Furthermore, how does this change the fact that the global economy – including and especially the U.S. – is collapsing?  Seriously.   Greece is getting stuffed with more debt that it will never be able to repay in exchange for some key national assets that the EU will own once Greece defaults again.  At best this just puts out the fuse which will inevitably light the global debt and derivatives time bomb for a while longer.

In fact, the last several weeks of Greek drama have done nothing more than provide a great cover for ongoing and obvious economic deterioration occurring.  The numbers are especially prevalent in the U.S.:

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The graph above shows the year over year change in retail sales.  Despite $3.6 trillion in monetary stimulus, the Fed has been unable to stimulate a boom in retail spending.  This reflects that fact that the real median household income of lower now than it was in 2007.

The percentage of Americans who are counted as part of the labor force is at its lowest level since 1977, when the majority of households were still one-income families.  So much for Obama’s self-congratulatory job boom.  Obama wouldn’t know a real job if Henry Kissinger shoved it up is ass.

As for auto sales, it’s taken a record level of debt issuance and, more troubling, a record level of subprime auto loans, in order to stimulate a mini-bubble in auto sales.  This has only succeeded in getting auto sales to bounce back to their 2004 levels.  But where will the next round of debt-stuffing come from, as the average loan term now extends well beyond 7 years?

The housing market is next.  I know first-hand that home listings in Denver are starting to spike up in good ‘ole 2007 parabolic fashion, especially in the over $750k segment.   I receive “price change” alerts in my email several times a day for homes listed in central Denver in every price segment.  In the “McMansion” suburban neighborhoods, many areas have several listings per block now.  It’s quite stunning.

I know from reports from readers in other large MSA’s that they are seeing a similar occurrence in their area.  In fact, the Dr. Housing Bubble blog is now reporting the home inventory is up 70% from 2013 in three major inland counties:  Dr. Housing Bubble Blog

Point of note:  Colorado and SoCal led the last housing bubble implosion.  We may see a continued bounce in home sales for June, which will be reported soon.  But most of the data that go into the June sales reports – both existing and new homes – are lagged and ultimately reflect contracts that were signed in April in May, when mortgage rates were 100 basis points lower.

Despite the fact the Fed has directed $1.8 trillion of its $3.6 trillion QE directly into the housing market via direct mortgage purchases, home sales volume for both new and existing homes is less than 50% of the housing bubble peak.  The only result accomplished by the Fed has been to ignite rampant home price inflation, which has pushed a lot of suckers into chasing homes that they will have been able to have buy a year from now at a substantial discount.  These newly minted homeowners and stuck flippers will find themselves significantly underwater in their mortgage.

As you can see, the Greek drama has served the purpose of providing a redirection from the ongoing economic collapse.  In fact, lost in this absurdity of the past week’s Kabuki theatre are other points of trouble quickly rearing their ugly heads…What ever happened with Puerto Rico’s impending debt collapse?…