A global economic disaster in preparation

on Tuesday, 01 March 2011. Posted in Crisis

A global economic disaster

It is not just the United States that is headed for an economic collapse. The truth is that the entire world is heading for a massive economic meltdown and the people of earth need to be warned about the coming economic disaster that is going to sweep the globe. The current world financial system is based on debt and there are alarming signs that the gigantic global debt bubble is getting ready to burst. In addition, global prices for the key resources that the major economies of the planet depend on are rising very rapidly. (...)

As the price of oil rises it is going to create a whole lot of imbalances in the global financial system once again. But it is not just the price of oil that could cause a global economic disaster.

The global price of food could potentially be even more troubling. As you read this, there are about 3 billion people around the globe that live on the equivalent of 2 dollars a day or less. Those people cannot afford the fact that food prices will just keep rising. (This has been the basic reason for the revolt in Egypt, for example, 60 to 80 percent of people’s incomes go for food, compared to just 10 to 20 percent in industrial countries.)

But global food prices are rising. According to the United Nations, the global price of food has risen for 8 consecutive months. Last month, the global price of food set a brand new all-time record high. Many are starting to fear that we could actually be in the early stages of a major global food crisis.

The price of just about every major agricultural commodity has been absolutely soaring during the past year.:

l The price of corn has doubled over the last six months.

l The price of wheat has more than doubled over the past year.

l The price of soybeans is up about 50% since last June.

l The price of cotton has more than doubled over the past year.

l The commodity price of orange juice has doubled since 2009.

l The price of sugar is the highest it has been in 30 years.

Unfortunately, the production of food in most countries around the world is highly dependent on oil, so as oil goes up in price the food crisis will be even worse. Hold on to your hats, folks.

Our politicians and the global elite could be doing something about this if they really wanted to but right now they seem perfectly fine with what is happening.

On top of everything else, the sovereign debt crisis is worse than it has ever been before.

All of the major global central banks have been feverishly printing money in an attempt to “paper over” this crisis, but it is not going to work. (New money should actually be issued to represent new production only.)

Uncle Sam, the United StatesMost Americans don’t realize it but right now the continent of Europe is a financial basket case. Greece and Ireland would have imploded already if they had not been bailed out and now Portugal is on the verge of collapse. The interest rate on Portugal’s 10-year notes has now been above 7% for about 3 weeks and most analysts believe that it is only a matter of time before they are forced to accept a bailout.

Sadly, if the entire global economy experiences a slowdown because of rising oil prices, we could see half a dozen European nations default on their debts if they are not bailed out.

A day or reckoning is coming for Europe and when it arrives the reverberations are going to be felt all across the face of the earth. The euro is on very shaky ground already and whether or not it can survive the coming crisis is an open question.

The biggest debt problem of all is the United States. Barack Obama is projecting that the federal budget deficit for this fiscal year will be a new all-time record 1.65 trillion dollars. It is expected that the total U.S. national debt will surpass the 15 trillion dollar mark by the end of the fiscal year.

Shouldn’t we have some sort of celebration when that happens? 15 trillion dollars is quite an achievement. Most Americans cannot even conceive of a debt that large. (For example, to spend $15 trillion at the rate of one dollar per second, you would need over 475,000 years...)

But the United States is not alone. The truth is that wherever you look, there is a sea of red ink covering the planet.

The current global financial system is entirely based on debt. If the total amount of debt does not continually expand, the system will crash. If somehow a way was found to keep this system going perpetually (which is impossible), the size of global debt would keep on increasing infinitely.

Now the World Economic Forum says that we need to grow the total amount of debt by another 100 trillion dollars over the next ten years to “support” the anticipated amount of “economic growth” around the world that they expect to see.

The entire global financial system is a gigantic Ponzi scheme. It is designed to keep everyone enslaved to perpetual debt. If at some point the debt spiral gets interrupted in some significant way, we are going to witness an economic disaster that is going to make what happened in 2008 look like a Sunday picnic.

source: http://theeconomiccollapseblog.com/archives/people-of-earth-prepare-for-economic-disaster

Editor’s note: Debt finance is the bridge that leads us from a free society to complete dictatorship. And the only thing the Financiers fear, the only thing that can stop them in their plan of world conquest, is the reform of the present financial system, the establishment of an honest debt-free money system, along the lines of the Social Credit philosophy. Then one is able to realize all the importance of the Social Credit solution and the importance of spreading it and making it known.

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