The hurricane approaches...
Less than 40 days ago, the second-largest bank failure in U.S. history became public as federal regulators seized IndyMac Bancorp Inc. following a run by depositors. Meanwhile, astonished investors looked on while Fannie Mae and Freddie Mac cratered into financial insolvency and were taken over by the United States government, instantly doubling the U.S. national debt and absolutely guaranteeing the eventual financial burn out of the U.S. government. (President Bush is scrambling right now to keep it off the government's accounting books... just more smoke and mirrors, huh?)
This happened barely two weeks after the bailout of Bear Stearns Co. by the Federal Reserve, a private organization of the world's elite who create money out of thin air and use it to bail out financial institutions it consider "too big to fail." Remember this, folks: Every time the Fed bails out another group of rich, criminal bankers, your own dollars become increasingly worthless.
A month ago, I thought the U.S. financial system might make it to 2012 (or even beyond). Now, I'm deeply concerned the total collapse of the U.S. financial system is imminent. Just yesterday, Lehman Brothers collapsed and is now bankrupt. The AIG insurance company is collapsing as we speak. Merrill Lynch just plummeted into financial disaster and was rescued by BofA. WashingtonMutual bank is plummeting rapidly and may crater before the end of the week.
(If it all smacks of the dot-com crash, that's because it's all the same scam: Take money from the People, and bail out the rich.)
Who will save us all?
Right now, many Americans are practically in a financial panic, and they're watching their life savings vanish from financial institutions they once thought were rock solid stable. Wachovia is reportedly about to plummet as well... the bank runs have begun, folks. The financial end game is upon us. America's highly-leverage financial system is about to be toppled by the de-leveraging of money.
But wait, you say: Won't the FDIC save us? I got news for ya, friends: The FDIC is bankrupt, too. There's no possible way it can cover the cascade of financial failures ricocheting through Wall Street right now. And every time the Fed creates more money out of thin air, they make it increasingly less likely that foreign central banks will keep buying worthless U.S. debt. If you were a country like China, would YOU keep loaning money to a bankrupt nation like America? No way. Not if you have any financial sense.
And remember this: Once the other nations of the world stop lending money to the United States government, the whole system collapses. The U.S. is running on fumes and fictitious, leveraged financial instruments that don't even exist! These banks have literally been trading each other pieces of paper with larger and larger numbers written on them, then calling them gains!
The whole thing is a hilarious house of cards, and it's all about to come crashing down. It could literally happen overnight, or it could limp along for a while longer. I don't have a crystal ball on the timing, but I know the ultimate result: The complete financial wipeout of the United States government and either the hyperinflation or outright abandonment of the U.S. dollar.
The financial downfall of the American empire is under way
You are right now witnessing an historical event: The financial downfall of the American Empire. I'm not even sure America as we know it will survive these unfolding events, because once the masses wake up and realize they've lost their homes, their jobs and their life savings, they're going to riot in the streets. We could be looking at a whole new era of martial law and police state crackdowns.
Meanwhile, you know who's getting bailed out? The rich bankers, of course. They're getting bailed out with taxpayer dollars while financially strapped American workers foot the bill.
In fact, the situation is even worse than you probably thought: Every dollar created by the Fed to bail out rich bankers is a dollar stolen from the U.S. population due to the inflation caused by the increase in the money supply. In other words, when the Fed creates money to bail out rich bankers, it is effectively devaluing all the dollars held by everybody else.
Want proof? Just check your grocery bill. Did you notice that food prices have risen 50% in the last year? Did you notice the price of gasoline at the pump? How about the cost of health insurance and medical care? These rising prices -- which are bankrupting American households at an unprecedented rate -- are caused in large part by the Federal Reserve's runaway money creation addiction.
The great financial blowout of the U.S. government
The Fed is churning out so many billions of dollars that you'd think a bus-load of Senators had arrived at a hooker convention in Vegas and discovered ATM machines wired directly into Washington.
To say the Fed is creating (and spending) money like a drunken sailor is a vast understatement of what's happening in Washington right now. I characterize it all as the opening act in the great financial blowout of the United States of America, and when it's all over, America is going to end up as a bankrupt, Communist-like nation where the state runs the financial institutions and the People get silenced into obedience. Your money -- and your rights -- are about to be stripped away by a desperate police state clinging to delusions of global leadership.
Mark my words: There may be localized bank rescues here and there, and politicians will continue to lie to you about how bad the problems really are, but we will reach a point in the U.S. financial quagmire where the smoke and mirrors are shattered, and the entire U.S. banking system will come crashing down upon those foolish enough to be left holding dollars.
The evidence is right in front of you. You are watching the great leading edge of a financial sh*t storm swarming towards the shores like a Category 5 hurricane, ripping apart all the fictitious financial instruments as if they were loose fragments of thin plywood and sheetrock. And this financial hurricane isn't stopping anytime soon. We haven't even reached the eye of the hurricane yet...
Once it's all over -- which may take anywhere from a few months to a few years to completely unravel -- the end result is that anybody holding their savings in U.S. dollars will be wiped out. The dollar will likely be abandoned by the U.S. Treasury, replaced with a new currency, and the cost for the U.S. to issue new debt will be so high that borrowing money from the other countries around the world will become virtually impossible (because nobody will want to loan money to a bankrupt nation that has no ability to repay its debts, at least not without charging a huge premium for it).
Do the math
Imagine the United States of America borrowing money from the rest of the world at credit card rates! That's what's coming. Twenty percent interest on the national debt. That would double the debt every four years, even if the federal budget were balanced right now! (Which it isn't...)
Do the math on this, folks. It's a logarithmic suicide run into a financial abyss from which the United States government will never emerge. You are living in the final days of the American empire, friends. It's as historic as watching Rome burn. They'll be writing about this one in the history books for a long, long time.
Because, think about it, friends:
• The FDIC bailed out the banks...
• The FED is bailing out the FDIC...
• Who's gonna bail out the Fed?
Nobody. The Fed is going to print money faster than post World War I Germany, sucking the value out of your existing dollars overnight. In fact, as I was writing this, the Fed just created another whopping $70 billion of fictional money (U.S. dollars) and pumped it into the banks. It's been secretly doing this week after week, month after month, for nearly two years now.
And it's accelerating.
With each bank failure, each investment house collapse and each mortgage disaster that's absorbed by the system, the Fed has to print another $50 billion or so of fictional money. It's all reached the point of financial insanity... the U.S. is desperately attempting to bail itself out with play Monopoly money! It's only a matter of time before People figure out that the U.S. dollar -- backed by the "full faith and credit of the United States government" -- is worth about the same as a scrappy I.O.U. from the local street corner crack addict.
The financial fallout is now obvious
Don't say I didn't warn ya about all this. The writing on the financial wall is as clear as day. This is not debatable by anyone who can do math: It's simply a matter of time before the U.S. is declared insolvent, and the dollar is declared worthless. The only people arguing against this conclusion are people who can't add (or subtract, in this case).
The U.S. economy isn't just running on fumes, it's running on delusions! Virtually nothing useful is manufactured in the U.S. anymore, and an alarming portion of the U.S. economy is running on the sickness industry (pharmaceuticals, surgery and bogus medical treatments propped up by a criminal medical industry).
An astonishing 96% of the U.S. government budget is spent on three things: War, Disease and Debt. See these figures based on published 2006 federal budget numbers:
1) WAR: Department of Defense + Veterans' benefits ($580.5 billion)
2) DISEASE: Medicare + Medicaid ($614.1 billion)
3) DEBT: Debt to the people (Social Security + Welfare) and to debt holders (interest on national debt) ($1,115.4 billion)
Did you read that? 96% of the federal budget is spent on war, disease and debt. Do the math, folks. The collapse of this system is a no-brainer.
Meanwhile, the U.S. is borrowing money from the rest of the world to prop up its delusional economy, much like a teenager that borrows the Porche from her rich daddy to make believe she's wealthy. Take away all the loans from China, Japan and the Middle East, and the U.S. instantly slams head first into a brick wall of fiscal reality. Government will literally cease to function for some period of time, and when it reopens for business, it will have to be slashed to a fraction of its current size.
I guess the Libertarians will win out after all. Government WILL be reduced, one way or another.
In the coming months, we're going to see yet more bank failures, more Fed-induced inflation of the currency and yet more desperate financial moves by the wealthy elite to secure their own financial safety even while the savings of everyday Americans are being destroyed.
Three urgent points to understand now
Given what's coming down the pike, there are three urgent points you need to understand RIGHT NOW. They are:
1. There will be NO universal health care plan. The U.S. government is already broke. And when the dollar collapses, we will witness a period of true financial turmoil, during which the U.S. government will be unable to pay for almost anything -- including health care services.
Don't count on any health care plan to cover you. Get healthy and learn how to use herbs as your medicine chest (see below).
Action to take: Get healthy now! Get onto superfoods, a plant-based diet, and lots of exercise to reverse disease and enhance your health. When the U.S. economy implodes, you will NOT be able to afford to be sick. So get healthy now. (And that means keep reading NaturalNews to stay informed!)
2. When the U.S. government goes bankrupt, Big Pharma will implode. Why? Because Big Pharma earns a significant portion of its revenue based on government handouts like the Medicare prescription drug benefit plan. Without Big Government to steal money from taxpayers and redirect it into the coffers of drug companies, those companies will find themselves in dire financial straits.
Virtually every drug company in the industry is engaged in criminal price-fixing practices and fraudulent cost accounting that bilks the taxpayers for billions of dollars. Once the government is broke, Big Pharma will virtually collapse. That's one silver lining in this whole scenario, by the way: The ending of Big Pharma! (See, there is something good that comes from all this. The FDA will also cease to function when the U.S. government stops paying its federal employees... I can't wait to offer them jobs writing books about the crap that really went on at the FDA...)
At the same time, bankrupt families, cities and states will almost universally stop buying brand-name prescription drugs and either turn to generics or natural therapies that are far less expensive and a whole lot safer.
All this will usher in good times for natural health practitioners, herbal product formulators and nutritional product manufacturers. Drug companies, on the other hand, will find themselves priced out of the picture. (Astute investors might recognize this as a great time to short Big Pharma stocks, but I'll leave that up to you to explore on your own...)
3. Anyone left holding U.S. dollars when the music stops will see their life savings go up in smoke. That's because U.S. dollars -- which are based solely on the "good faith and credit of the United States government" -- will be abandoned and declared worthless. This is the ONLY way out for a nation that owes money it can never repay. (The timing of that, however, is uncertain...)
Ultimately, the U.S. government will do exactly what millions of homeowners are doing right now: They will walk away from their debt and abandon their homes, leaving the lenders with the burden of all the losses. In this case, of course, the lenders are the central banks of countries like China, Japan and the United Arab Emirates.
Action to take: Don't put your savings in U.S. dollars! Right now, you can trade soon-to-be worthless paper dollars for real things like land, stock in companies, gold or even other currencies. Learn about my LIVE audio event, below, where I reveal detailed strategies for maximizing your financial protection. This is the time to take action. Anyone failing to convert their dollars into other "real" assets may ultimately lose everything.
Most people are clueless about what's about to happen to them and their money
Take these points to heart. Realize, too, that virtually no conventional financial advisors, real estate advisors or bankers have any clue whatsoever about what's happening. They do not understand fractional reserve banking, nor international finance, nor derivative financial instruments, nor even how savings are stolen from people by planned inflation policies that provide "free" spending money for a spending-addicted government.
Most financial advisors, I dare say, are complete idiots on matters of investing. That's why they lost billions for their clients on the dot-com crash (which I also strongly warned people about, starting in 1998), and they continued to urge people to throw all their money into real estate over the last few years (which I also warned you about starting in 2006).
What are the results of all this? Huge losses for anyone gullible enough to believe mainstream financial hype.
Remember: The financial news put out by CNBC, CNN, Fox News, the Wall Street Journal and other mainstream information sources is produced for suckers. Truly wealthy people do not follow the masses; they take money from the masses at every opportunity!
Remember: For every sucker willing to believe the foolish advice of bankers, investors and brokers who promise the U.S. dollar is safe, there's an international currency speculator like George Soros who's ready to take possession of their life savings.
If you follow the masses on all this, you can already write off every dollar you have in any bank account, any retirement account, or stuffed under your mattress. On the other hand, if you are awakened, informed and alert about what's happening in this world, you can not only protect your assets, you can GROW them during these difficult times ahead.
Economic Collapse
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