Who Truly Caused the USA and Worldwide Financial Crisis of 2008?
Trillion National Debt, September, 2013
Is this true? No!!! It is absolutely false.
The United States National Debt Is a Lie!
Federal Reserve Chairman, Benjamin Shalom Bernanke, has taken care of it.
The true USA national debt in bonds to people, businesses, and other countries is most likely not more than $3 or $4 trillion. Will the USA default on the debt? Absolutely not. This is why. The USA Secretary of the Department of Treasury prints a $500 Billion bond on his Canon inkjet printer. He sends the bond to Benjamin Shalom Bernanke, Head of the Federal Reserve. Mr. Bernanke buys the bond by sending an electronic credit in the amount to the account of the Department of Treasury. Mr. Bernanke tell the Secretary of the Treasury to have no concern about the maturity of the bond. Mr. Bernanke walks over to his paper shredder and drop the bond down the inlet chute along with several parking tickets. No problem!
The same goes for United States Treasury bonds held by individual and the governments of other countries. The U.S. Federal Reserve has been buying these bonds with printed money at the rate of $85 billion per month for several years. This action is called "quantitative easing" or QE. The Federal Reserve simply drops the redeemed bonds in the shredder. No problem! This does several things. First, it balances the increase in money supply throughout the world with the increase in the money supply in the United States. This tends to keep currency exchange rates constant. Second, it reduce worldwide deflation that was caused by the 2008 worldwide financial crisis. Third, one downside effect is the increase in inflation in some foreign countries, but the Federal Reserve considers that to be their problem not ours.
The governors of California and Illinois along with mayors from Chicago and Detroit give Mr. Bernanke a call. They have some bonds to sell also. No problem!
Who are the stupid, ignorant, thieving critters who caused the accumulation of a massive amount of toxic subprime mortgages that were dispersed throughout the U.S. financial system and worldwide to cause our current financial crisis? The historical evidence is undeniable.
The Zionist Matrix of Power - Dr David Duke
Truth About Zionism, Israel, and the Holocaust
Who are the guilty parties?
Guilty Couple No. 1 - President Bill Clinton and Hillary Clinton (Democrats) promoted and approved a bill in 1996 to allow Freddie Mac and Fannie Mae to accept mortgages from poor, low-income home buyers who had no down payment and no verification of their ability to repay the mortgages. The down payment for conventional mortgages in previous years was 25%, but the new requirement was lowered to zero, none. This was a credit bomb in the making. The Clintons built a default trap. The reduced mortgage requirements were promoted to allow and encourage poor, inner-city blacks to buy a home in the suburbs. This bill was a pure Marxism and Fascism tempt to provide government support for single moms and irresponsible, lazy people -- sluggards. Hillary Clinton, being a liberal feminist, has been fighting against God's ordained plan for mankind that a family shall be a man and a women bonded in marriage with children to follow. Liberal feminists want to raise illegitimate children without a man in the house. Well, God won. The single moms defaulted on the house mortgage and have moved back in with their parents who incorrectly thought they were finally rid of the liberal-feminist, fornicating daughter.
Marxism is a form of government in which money is stolen from the hard-working, responsible citizen in the form of taxes and given to the lazy sluggard in the form of grants or benefits. Marxism is a one party government that does not tolerate opposition or disagreement from the citizens. Naturally Marxist governments are also become Facsist.
Fascism is a form of government in which money is stolen from hard-working, responsible companies in the form of taxes and given to lazy, irresponsible companies in the form of grants, special loans or total governmental control. Fascism is a one party government that does not tolerate opposition or disagreement from the citizens. Naturally Fascist governments are also become Marxist.
In 1999, the requirements for approval of a mortgage by Freddie Mac and Fannie Mae were reduced even further to allow home buyers to obtain adjustable rate mortgages (ARMs) based on the Federal Fund interest rate. These people were allowed to sign long-term loans based on variable short-term interest rates. President Bill Clinton and his wife, Senator Hillary Clinton, should be charged with treason. They are the worst enemies of the poor, inner-city blacks and illegal Mexicans who foolishly believe the Clintons are their best friend.
On October 14, 2008, Senator Hillary Clinton said, "It breaks my heart to see the U.S. in an economic crisis eight years after Democrats left the nation in sound fiscal shape." Wow! What a cover-up! Hillary Clinton was the author of her husband's policy in 1996 to relax mortgage requirements. Senator Clinton is pointing her finger at others, but she is the prime culprit responsible for our present mortgage and credit crisis. Bill was busy "training interns" at the time. Hillary is the prime culprit.
She held no office, had no job, but destroyed the economy of the USA.
Treason by Barack Obama, Hillary Clinton, Robert Gates, John McCain, Susan Rice, and Samantha Power.
Click the image to see an enlargement.
H.R. 3019 - 1996
Title: Making appropriations for the Departments of Veterans Affairs and Housing and Urban Development
"Authorizes the Secretary, subject to the consent of specified parties, to: (1) remove, relinquish, extinguish, modify, or agree to the removal of any mortgage, regulatory agreement, project-based assistance contract, use agreement, or restriction that had been imposed or required by the Secretary . . . "
House of Representative - Vote Database: H.R. 3019 [104th]:
Representative Newt Gingrich - Yea
Senate Vote On Passage: H.R. 3019 [104th]:
Senator Trent Lott - Yea
Senator Robert Dole - Yea
President Bill Clinton - Approved
Senator John McCain - No
Senator McCain has not mentioned H.R. 3019 in his election run. He is so dumb he doesn't even know this bad bill caused the current housing mortgage default crisis. He could have used his negative vote on this bill for support to win the election. He probably doesn't even know why he voted against the bill.
Laws are important. Laws can be very destructive. The one little sentence in H.R. 3019 - 1996 was intended to allow poor, inner-city blacks a chance to own a home in the suburbs. Instead, it has thrown the entire world into a credit, financial, and economic depression because those people defaulted on their home mortgages. Now those people are not only out of their homes, they are out of a job. Marxist policies which intentionally rob responsible, hard-working people and give the money to irresponsible, lazy people have been tried many times and always fail. Senator Obama is an ultra-Marxists to the core whose faulty goal is to create a worldwide Marxist utopia. We are slouching toward Gomorrah, not moving toward utopia. To best understand the faulty workings of Senators Clinton and Obama's Marxist, left-wing, liberal minds, read Judge Robert H. Bork's book, Slouching Towards Gomorrah: Modern Liberalism and American Decline. Judge Robert Bork was the awesome, conservative Supreme Court nominee who was wickedly trashed by Senator Joe Biden (another Marxist) in a move that has come to be called "being Borked."
President Bill Clinton and Senators Barack Obama and Joe Biden teamed up with Republican Senator Phil Gramm to write and approve a bill which deregulated the banking industry. This allowed brokerage companies like Merrill Lynch & Company and Lehman Brothers to become high-risk, unregulated investment banking firms. This eventually lead to the 2008 collapse of Merrill Lynch and Lehman Brothers.
Cause of the Crisis - Professor James K. Galbraith - May 1, 2009.
Who Caused the Economic Crisis? - FactCheck.org - October 1, 2008.
"The bill in question is the Gramm-Leach-Bliley Act, which was passed in 1999 and repealed portions of the Glass-Steagall Act, a piece of legislation from the era of the Great Depression that imposed a number of regulations on financial institutions. It's true that Gramm authored the act, but what became law was a widely accepted bipartisan compromise. The measure passed the House 362 - 57, with 155 Democrats voting for the bill. The Senate passed the bill by a vote of 90 - 8. Among the Democrats voting for the bill: Obama's running mate, Joe Biden. The bill was signed into law by President Clinton, a Democrat. If this bill really had "stripped the safeguards that would have protected us," then both parties share the blame, not just "John McCain's friend.""
Barack Obama has become the first illegal President of the United States. This is proof of his corrupt nature. He is not legally qualified to become president since he was born in Kenya, Africa. His mother was visiting relatives of his father who was also born in Kenya and was planning to return to the United States to give birth. However, she went into labor in Kenya, and Barack was born there. The people of Kenya are erecting monuments in celebration. Barack's mother returned to the United States with the baby where she quickly obtained a false birth certificate. The Republicans were afraid to challenge Obama's qualification because Senator John McCain wasn't qualified either. McCain was born in Panama, Central America.
Guilty Party No. 2 - Newt Gingrich (Republican) was elected Speaker of the House of Representatives in 1995 and presided over the approval of the Freddie Mac and Fannie Mae mortgage bill. The Republicans held a majority in both the House of Representatives and Senate during both of Clinton's two terms as President. Speaker Newt Gingrich and the Republications in the House of Representatives did absolutely nothing to stop the Clinton administration from reducing the home mortgage requirements in 1996 and 1999. Newt Gingrich and the Republicans approved the 1996 bill with a celebration.
$700 Billion Bailout Plan Prequel: Who Started the Subprime Mortgage Fiasco?
Managers from Freddie Mac and Fannie Mae testified before Congress on December 9, 2008, that pressure from HUD (U.S. Department of Housing and Urban Development) who governed them had forced them to accept the high-risk, sub-prime, zero down-payment mortgages. This crisis was not caused by "greed and corruption on Wall street." It was caused by stupid, corrupt politicians in Washington, DC, and their governmental departments (HUD). The primary goal at HUD was that every sluggard should have a house like hard working people.
Speaker of the House, Newt Gingrich, received six-figure campaign contributions from Freddie Mac and Fannie Mae, but Democrats, including president-elect Barack Obama and Senate Banking Committee Chairman Christopher Dodd, received more money in campaign contributions from Fannie Mae and Freddie Mac than any other members of Congress.
AP Blames GOP For Freddie Mac Fiasco, Ignores Obama Donations.
Guilty Couple No. 3 - Robert Dole (Republican) was elected Senate Majority Leader, and Trent Lott (Republican) was elected Senate Majority Whip in 1995, where they presided over the approval of the Freddie Mac and Fanny Mae mortgage relaxation bill. Trent Lott was elected Senate Majority Leader in 1996. Their positions gave them and the Republican party the power to block the dangerous plan sponsored by President Bill Clinton. The Republicans could have simply ignored it. Instead, Robert Dole and Trent Lott gave their full support for the relaxation of home mortgage requirements which has resulted in our present financial crisis.
Senator Trent Lott was one of only 19 senators who also voted in 2006 to lift restrictions on stem cell research, thereby allowing federal funding of research based on the killing of human embryos, an absolutely disgusting act reminiscent of those of Adolph Hitler. He smiles and talks like a "good ole boy" from Mississippi who wouldn't swat a fly, but in reality he is very evil.
Guilty Party No. 4 - Alan Greenspan as the Chairman of the Federal Reserve began to reduce the Federal Funds interest rates in February, 2002, until they reach a record low of only 1% in July, 2003. This ridiculously low interest rate was a redistribution of wealth by stealing interest from responsible people with savings accounts to irresponsible home buyers (sluggards) with no down payment and an adjustable rate mortgage (ARM) based on the short-term interest rates. These ultra-low Fed funds rates caused the housing bubble. The action baited the default trap that was built by President Clinton and his wife, Hillary.
This course of action was a severe penalty to the retired senior citizens who counted on their fixed-rate income from savings to help provide for themselves. This move was a typical Marxist attempt to transfer money from responsible senior citizens to the irresponsible voting sluggards.
Chairman Greenspan began raising interest rates again in July, 2004. This action placed immediate pressure on the holders of adjustable-rate mortgages, as their monthly home-owners' mortgage payment surged with each increase. The sluggard began to feel the pain that the senior citizens had experienced previously. The irresponsible, lazy sluggard simply walked away from the house. Many would send the key to the bank instead of the monthly payment (hence the name jingle mail). Many common people joked about the foolishness of these financial actions taken by Greenspan, President Clinton and President George W. Bush. This is not Ph.D. economic rocket science. Their actions were discerned as nonsense by ordinary street people.
Chairman Greenspan had 200 Ph.D. financial and economic experts at his beck and call. Yet, he didn't see any risk in the sub-prime adjustable-rate mortgages. He even encouraged lenders to develop similar wild mortgage options in his statement before the press that was addressed to lenders, "Create a number of other mortgage options other than the 30-year fixed rate mortgage." Every honest, small business owner knows this was a recipe for disaster. The issuance of the home loans with no money down, no proof of income, no proof of a job, and interest-only payments that never pay off the principle were a common joke on radio, TV, and in conversation by the common people. Yet, Greenspan and his 200 Ph.D.s thought it was great. DUH . . . . . Greenspan should go down in history as the economic bubble maker. Alan Greenspan is a major player in the evil Jewish Oligarchy that controls America.
Chairman Greenspan ruled like the King of the Fourth Branch of Government, or King of the USA. Past presidents of the Greenspan Federal Reserve Banks are now criticizing him because of his domineering disregard for their opinions. Greenspan trumped President George W. Bush, the Senate, the House of Representatives, and those comrades of the past who had elevated Chairman Greenspan to this lofty, unconstitutional throne. Barney Frank, House Finance Committee Chairman, pretended to be in charge out of embarrassment lest he admit that Chairman Greenspan was truly the King of the USA. The US Supreme Court Justices hid in their temple not wanting to address the fact that creation of the Federal Reserve was in violation of the US Constitution and Bill of Rights. The Federal Reserve should not have been created without a change in the Constitution.
We have Representative Barney Frank guarding our financial system. Wow . . . What a joke. He approved all of the stupid moves that lead to our financial crisis of 2008. Representative Barney Frank is not listed as one of the major "Guilty Parties" because he is simply a "gopher."
Duke Exposes the Investment Bankers Who
Sold the World Toxic Sub-Prime Mortgage-Backed Securities
CNN Goldman Sachs & the Zionists' Matrix
Guilty Party No. 5 - President George W. Bush ran for office as a "pro-life" Republican. He won with a majority is both houses of government, but President Bush didn't use is endorsement to support and sign a bill to stop the killing of the unborn (abortion). No, no. He turned away from the citizens who elected him. Instead, President Bush began to undermine the Constitution of the United States of America. He directed illegal searches of American citizens and he promoted detailed governmental control of public economic activities. He was fully supported and actively promoted the ultra-low interest rate plunge that began in February, 2002 after the "dot-com bubble" popped. President Bush was also supportive of the previous decisions which allowed poor, inner-city blacks to buy homes they could not afford. President Bush worked closely with Fed Chairman Alan Greenspan to bait the default trap by enticing the sluggards to enter the trap by obtaining for a home mortgage they could not afford. President Bush said, "Too many minorities can't get a mortgage to buy their own home." He was in full support of the sub-prime, adjustable-rate mortgage (ARM) market where people were given big mortgages with no money down and no proof of income. These were jokingly called liar loans because the applicants and the loan salesmen were all liars. President Bush is a strong Marxist to the core as shown by his "free trade" and "open border" policies. President Bush was thrilled with the housing mania, hoping it would also elevate his ridiculously low public approval rating. It didn't. President George W. Bush has earned the nickname, "Bubble Bush."
Naturally, many irresponsible whites and illegal Mexicans jumped on the bandwagon to buy a new home without any down payment and without requiring them to show they had the ability to make the future payments. President Bush, the Marxist, was proud that Mexican peasants from their hut in the Yucatan Peninsula traveled to the US where they could buy a home in the suburbs with no money down and no job. The only thing they had to do to become a full-fledged US citizen was to purchase a forged birth certificate like Senator Obama's mother did for her little half-white boy born in Nigeria. These home buyers were allowed to take on massive debts via a home mortgage, credit cards, auto loans, business loans, etc. President Bush made extensive efforts to encourage consumers to take on even more debt in his selfish effort to make the economy soar and to improve his dismal approval ratings. It didn't work. Both have crashed. President "Bubble" Bush and his Treasury Secretary made no effort to stop Freddie Mae and Fannie Mac from mixing the subprime, high-risk, adjustable-rate mortgages with low-risk, fixed-rate, 30-year mortgages in packages for resale to financial institutions and banks through the USA and worldwide.
President George W. Bush may have realized his mistake by 2006, but it was too late. Actually, I doubt that he even has a clue what his mistakes were to this day. He took no action to avoid the coming financial crisis. He provided no leadership. In his second term he was straddled with Democrats in control of both the Senate and House of Representatives. Democrats like Senators Hillary Clinton, Ted Kennedy, Chris Dodd, Charles Schumer, Barack Obama, and Representative Barney Frank blocked any feeble attempt of the Bush Administration to change the mortgage loan requirements. These Democrats kept Franklin Raines in charge at Fanny Mae, and he in turn contributed large sums of money to their re-election campaigns. Has anyone in the judicial side of government ever considered these actions to be treason. Well no, but they obviously are.
George W. Bush is perhaps the most hated President in the United States. The Democrats naturally hated him because he claimed to be a true conservative, but many Republicans came to hate him because he proved to be a fake conservative, fake Christian, and a hardcore Marxist. His numerous major mistakes and inactions have caused a total takeover of the United States by Marxist-Fascist, liberal Democrats. Bush congratulated Obama on his "awesome victory." SICK . . .
President George W. Bush always ducks his mistakes.
President Richard Nixon will forever be quoted for his backwards self-assessment, "I am not a crook." Nixon made the statement only because his crookedness had been exposed. President George W. Bush presented a similar summation of his administration in his last news conference on January 14, 2009. Bush whined and dodged, while blaming everyone else in the world for our financial crash of 2008. The summation of his new conference, like Nixon, would have been perfectly backwards if he had said, "I am not a dummy!" Well, Bush is a dummy, and Nixon was a crook. They were both Marxists - Fascists. Nixon imposed wage and price controls. Bush turned the entire United States economy over to the corruption on Wall Street and Federalized the banking system. The economic growth during Bush's mid-years was created on massive debt of the sluggards with their home mortgages and credit cards, investment bankers by their free reign of greed, and hedge funds in their corruption and lies. It is shocking that the Republican Party keeps nominating corrupt and dumb Marxists - Fascists. The only thing worse is the Democrat Party that continues to nominate evil Marxists - Communists. These people have one thing in common. They all lack the indwelling Holy Spirit and are destined to spend eternity in Hell.
Guilty Party No. 6 - Benjamin Shalom Bernanke succeeded Alan Greenspan as Chairman of the Federal Reserve on February 1, 2006. Bernanke continued to raise interest rates, which reached a peak of 5.25% in July, 2006. Fed Chairman Bernanke shares the credit with Alan Greenspan for springing the default credit trap on the sluggard. Chairman Bernanke popped the Greenspan housing bubble. This sharp surge in interest rates squeezed the home buyers who held the subprime ARMs. Millions of these homeowners began walking away from their houses because they couldn't afford the higher interest rates. The mortgage companies dumped the houses on the market for sale when the buyers went into default. So other home owners had negative equity (commonly called under-water or upside-down) because of the drop in home prices. The value of the house was much less than the amount of the mortgage they owed on the house. This continued to depress house values even further. The drop in value for these houses has reached several trillion dollars. Banks holding the mortgages are essentially bankrupt. This action punished responsible homeowners, who saw the value of their homes plunge. Why do Federal Reserve chairmen consistently punish responsible savers and reward sluggards by lowering interest rates? Because they are EVIL. Benjamin Bernanke is a major player in the evil Jewish Oligarchy that controls America.
Who Really Rules America?
Mr. Bernanke said he would throw money from helicopters before allowing deflation. Excuse me, but we still had deflation even though he is throwing trillions of dollars into the system. Calling Mr. Bernanke "helicopter Ben" is an insult. The proper title should be "C-130 Ben" or "Bubble" Ben Bernanke.
Now Chairman Bernanke is creating a new bubble. Starting on March 18, 2009, "Bubble Ben" began buying back Federal Reserve 10-year notes with printed money at the rate of $30 billion per week. This is called monetizing the debt. Bubble Ben started the sharpest stock market rally in 37 years with commodities and bonds also rising. Here we go again. Another bubble. Ok, so the housing bubble was caused by 1% Fed Funds interest rates. Now "Ben Bubble" is building a new bubble by dropping the rate to zero plus throwing $30 billion per week into the markets. How will Ben Bubble end this action without the bubble popping? The year 2000 bubble popped. The year 2008 bubble popped. The Federal Reserve has lost control of the financial system.
Fed to buy $300 of Long-Term Treasuries - Bloomberg - March 18, 2009.
The entire world financial system, stocks, bonds, property, and commodities (including gold) have become completely socialized with Chairman Bernanke as the Czar. Free markets are gone. Those with inside information get rich while the average man looses his shirt in the gyrations. Why study economics? Why evaluate sales and earnings potentials? Why work, save, and invest? It is all vanity or vapor as King Solomon claimed in the Book of Ecclesiastes.
Remember, in 2006, when "no money down", sub-prime, adjustable-rate mortgages were the hottest bubble, Chairman Bernanke jacked up the rates from 1% to 5.25% which popped the housing bubble? Now the "Fed Funds" interest rate is zero, and he is printing money by the hundreds of billions of dollars and spreading around trillions to his favorite banks as "loans" trying to stop the bubble collapse. Does anyone really think his next bubble won't be worse than the last two.
See below why this actions have turned China into a slave nation, and China is furious.
Expect the Treasury Bubble to Continue to Inflate - Mr. Naufal Sanaullah
Seekingalpha.com -May 1, 2009.
Fed Chairman Alan Greenspan built the "dot-com" bubble and then popped it. Ben Bernanke is doing the same thing as of May, 2009. He is building a stock market bubble, a commodities bubble, and a treasury bond bubble. Surely he will pop all of these latest bubbles just like he popped the housing bubble in 2006.
Fed Chairman Ben Bernanke solidified the United States of America as entrenched in Marxism and Fascism. He was the master-mind behind the governments complete or partial take-over of formerly capitalist companies including:
General Motors Corporation
GMAC Financial Services
Bank of America
American Insurance Group
Goldman Sachs Group
Dozens of other banks
List of Companies Receiving TARP Bail-Out Money.
Federal Takeover of Fannie Mae and Freddie Mac.
Guilty Parties No. 7 - Sluggards appeared by the millions between 1999 and 2005, thinking they could purchase a house with no money down and no risk. Other sluggards who had purchased a house a few years earlier realized they could pull all of the accumulated equity out of their house by re-mortgaging over and over. The sluggards squandered their home equity on fun and luxuries. The common joke describe this action as "eating your house." They falsely thought they could simply walk away without penalty. The sluggard always does the wrong thing. The purchases were wrong, and walking away was wrong. Now the millions of sluggards have ruined their credit rating. They will not be able to purchase another home because of their poor credit ratings. In a few more years, those who have walked away from a $300,000 home will gasp when they see the same house selling for $600,000. The government's massive infusion of money into the economy will eventually result in raging inflation after the present deflation has subsided. Sluggards are always wrong. These people are not the victims as claimed by Marxists.
Single moms should not be given credit cards, auto loans, student loans, or home mortgages. They should be told to stop whoring around and get married.
Who are the victims?
The United States Federal Reserve, President, Congress, and investment bankers all sought their own self interest by loading the hourly worker and single moms with enormous debt. It was a dumb, selfish move by the leaders, because the hourly workers and single moms collapsed under the debt load. Everyone lost because the initial policies were stupid.
Many normal banks and investment banks were asleep at the helm. They purchased mortgage-backed securities from Freddie Mac and Fannie Mae even though they contained the toxic, subprime mortgages. These banks were "sucker punched" by the government. It was a setup that most ordinary street people saw coming, but many bank managers were too busy dining at the club. The fact that these banking experts were caught flat-footed is shocking. Many of the worst banks have been closed, and many more will be closed. They should be closed, and these dumb managers should become unemployed. Merrill Lynch and Company had a "Vice-president of Risk Management." He was a dummy. Merrill Lynch went to zero.
The responsible savers are the biggest victims. They had the interest from their savings accounts stolen from them by President George W. Bush and Fed Chairmen, Alan Greenspan and Benjamin Shalom Bernanke. The responsible saver saw the value of his home deflated by the sluggard who lived next door. The responsible citizens are the victims.
Worldwide Financial Crisis of 2008 - 2009 and the Titanic
The 2008 - 2009 worldwide economic crisis is a magnification of the sinking of the Titanic. The US administration under Presidents George Bush and Barack Obama have both developed a strategy of "saving the financial organization that are too big to fail." Little banks and other businesses simply go under. The captain on the maiden voyage of the new, 1912, luxury, Atlantic steamship, Titanic, had a similar strategy of "saving those passengers who were too rich to drown." He placed the rich passengers in boats and pushed them off, even though the boats were only partially filled with people. He instructed the crew to lock the hard-working service staff in their quarters below deck. The "service staff were too poor to save." The captain's actions of mass murder were truthfully and clearly depicted in the movie, Titanic (1997).
How to STOP housing mortgage defaults in 15 minutes.
February 22, 2009.
Dear President Obama,
The current housing mortgage default crisis could be stopped in 15 minutes. I will lay out a few simple concepts below. I am not writing more because I expect this mail to be simply diverted to the trash by the White House staff.
1. President Obama, you should have a 15-minute TV address to the American people about the housing mortgage default crisis.
2. Tell the people that those who have defaulted on their mortgages have made a grave mistake because in a few short years the return of inflation could easily make a $300,000 home increase in value to $600,000. They will never qualify for a home mortgage again in their lifetime, and they most likely could not afford the home at the future higher prices. This shocking truth will convince many home owners that they should not walk away from their homes as many of their neighbors have.
3. Tell those people who are under water on their homes (owe more on the mortgage than the present market price) to sit tight. They should be encouraged to do everything possible to continue paying the mortgage payments because that home could be selling for millions of dollars by the time the mortgage has been fulfilled.
4. Immediately sign an "executive order" forbidding all mortgage lenders from "calling in" loans on homes where the homeowner has positive equity. This nasty practice is an attack on the homeowner to grab liquidity out of a home while the owner suffers the equity loss from the "fire sale" of the home. The government should interfere between the mortgage company and the home buyer to stop these types of foreclosures because of the extreme economic conditions.
5. Immediately sign an "executive order" requiring mortgage lenders and those who cannot afford the monthly payment because they lost their job, or whatever, to agree to the following plan:
5A. Mortgage lenders should allow all payments, including interest, principal, insurance, and taxes to be added to the mortgage loan balance. Therefore, the loan value would be increasing. As housing prices stabilized and rise again in the future, the value of the home would become equal to the mortgage balance at some time. No one will have lost any money. The home should have an independent inspection at the start of this program, and the homeowner is expected to care for the home. When the home is sold in future years, another independent inspection would be done. Excess damages would be subtracted from the homeowner's part of the excess equity, if any. Some normal aging and wear would be exempt so as to prevent the lender from gouging the borrower.
5B. Homeowners could certainly pay toward the loan in any way they desires so as to increase their portion of the equity. The homeowner could make partial payment as their ability to pay returned. The mortgage lender would not have to monitor or harass the homeowner if a payment were missed. The deficient amount would simply be added to the mortgage loan balance.
6. Benefits of this plan:
6A. Nearly all homeowners would STOP abandoning their homes. Why should they leave under this plan? There is no reason.
6B. Nearly all of the mortgage lenders would STOP foreclosure proceedings on homeowners who have delinquent payments. Why should they under this plan? In the past, the value of homes has increased faster than the amount of the loan payment. Sitting tight on the loan will result in a full recovery of the loan plus the interest long before the term of the loan arrives.
6C. The plunge in housing values would stop, and the crisis would simply evaporate. The housing deflation spiral would be reversed.
6D. The stock market would soar, thereby returning the lost capital to investors at no cost to the US government. The effect would be worldwide, so this plan could also be employed in other countries who would see the instant benefits.
6E. This plan would not require any government spending whatsoever.
6F. This plan would not punish responsible homeowners who have equity in their homes.
6G. This plan would not reward those irresponsible people who have already walked away from their homes. Rewarding irresponsible home buyers is harshly criticized by responsible buyers.
6H. This plan would benefit everyone, lender and borrower. It would be fair to everyone no matter the status of their home ownership.
Only 15 minutes of TV air time during prime time is required. The plan should be kept secret until delivery, but the speech should be hyped beforehand in order to get everyone's attention. The general topic would be revealed two days in advance without revealing details of the plan.
Kent R. Rieske
Boulder, CO 80301
My additional comments that were not included in the letter to President Obama:
The sluggard (those stupid people who bought a home at the market top with no money down) has proven how stupid he really is by walking way from his home simply because the estimated value is less than his mortgage. This dummy doesn't realize that he has lost no money. He has no equity in the home to loose. The mortgage lender actually owns his home, not the sluggard. The mortgage company has a "paper loss" which becomes a realized loss when sold after default. It doesn't matter if the value of a home goes down or up over the years if the home buyer continues living in the home and paying off the mortgage over 30 years.
What should the USA do now?
Nouriel Roubini is Professor of Economics at the Stern School of Business at NYU and Chairman of RGE Monitor. He wrote a paper called The Twelve Steps to our Financial Crisis in February, 2008. He has appeared on many TV programs here and in the UK. Unfortunately, he is soft spoken and has a strong European accent. Therefore, many "talking heads" who are full of nonsense shout right over him. He was right on the money in his February projections, and he sees serious problems with the plan presently being approved by Congress and President Bush. It is not enough and will benefit the wrong people. Here are some of the most interesting links:
Professor Nouriel Roubini biography.
RGE Monitor Content: Weekly Roundup.
BBC HARDtalk Interview with Roubini: "US Bail-Out Special".
Nouriel Roubini: Conference Call Replay September 24, 2008. Nouriel Roubini summarizes the stages that led us to the current economic and financial situation and lays out a 10-step proposal to solve this most severe financial crisis.
Download audio file.
The Rising Risk of a Systemic Financial Meltdown: The Twelve Steps to Financial Disaster.
Professor Roubini has been correct to date while everyone else was asleep. He will be proven correct about coming events as well. We are in BIG TROUBLE. Congress' October, 2008, plan will not be enough to help us through this serious financial crisis.
Revisiting my February paper "The Risk of a Systemic Financial Meltdown: The 12 Steps to Financial Disaster" And Some New Policy Recommendations to Avoid the Meltdown
by Nouriel Roubini - October 8, 2008.
Nassim Nicholas Taleb, author of The Black Swan, is angry with economists. The interviewer was just a journalist who was clueless about his ideas, but he got them across anyway by ignoring her questions. We may be just at the beginning of this crisis. - October 12, 2008.
October 15, 2008 - Nouriel Roubini, "U.S. will suffer worst recession in 40 yrs lasting 18-24 months with unemployment rate rising up to 9%, credit losses hitting close to $3 trillion and home prices falling another 15%."
All the bubbles are bursting By Nouriel Roubini - Saturday, October 18, 2008, Page 9.
"Radical, coordinated action among all advanced and emerging-market economies is needed to avert the looming possibility of a decade-long global recession."
"Do the recent measures go far enough? When policy actions don't provide real relief to market participants, you know that you are one step away from a systemic collapse of the financial and corporate sectors. A vicious circle of deleveraging, plummeting asset prices and margin calls is underway."
"So we cannot rule out a systemic failure and global depression. As we have seen in recent days, it will take a big change in economic policy and very radical, coordinated action among all advanced and emerging-market economies to avoid disaster."
Benoit Mandelbrot, mathematician, thinks the global economy is in dire straits - October 23, 2008. The current financial and economic crisis may be worse than the Great Depression.
I fear the worst is yet to come by Nouriel Roubini - Monday, October 26, 2008.
"What does Roubini think is going to happen next? Rather worryingly, in London last Thursday he predicted that hundreds of hedge funds will go bust and stock markets may soon have to shut -- perhaps for as long as a week -- in order to stem the panic selling now sweeping the world."
RGE Content: Weekly Roundup
RGE Lead Analysts | Nov 1, 2008
"On Nouriel Roubini's Global EconoMonitor, Nouriel Roubini warns that the worst in markets and economies is yet to come. On October 23rd, Nouriel predicted the potential shutdown of financial markets. A day later U.S. stock futures suspended trading after declines of more than 6% at opening tripped the circuit breakers. Nonetheless, Nouriel does not expect another Great Depression, but states that policymakers must act quickly and wisely."
"Here are the main elements of Nouriel's outlook: Tsunami of corporate defaults; 2-year U-shaped U.S. recession that threatens to turn into an L-shaped one if policymakers do not regain control of the financial system; global re-coupling to the U.S. will advance from non-U.S. markets to non-U.S. real economies -- not even the strongest emerging markets such as Brazil and China will escape global re-coupling; vicious cycle of deflation in goods markets, labor markets, commodity markets, financial markets, corporate and household earnings, and aggregate demand; de-leveraging to reduce excess debt in municipalities, households and some firms; U.S. stock markets declining another 20-30%, bottoming fall 2009 at the earliest, then moving sideways for years post-recession if growth remains anemic as it did in Japan after its 1990s real estate and equities bust; U.S. unemployment rise to reach 8-9%; the demise of the shadow banking system."
"According to Nouriel, USD assets, commodities, U.S. and international equities, housing, and the USD are quite risky right now. Seek safety in cash or cash-like instruments such as T-bills and bonds of safe, large governments. Though he believes the U.S. dollar will retain its reserve currency status for decades, its status will gradually erode."
How to avoid the horrors of 'stag-deflation' By Nouriel Roubini - December 2, 2008.
"The worst is not behind us."
"In the next few months, the flow of macroeconomic and earnings news will be much worse than expected. The credit crunch will get worse, with de-leveraging continuing as hedge funds and other leveraged players are forced to sell assets into illiquid and distressed markets, leading to further cascading falls in prices, other insolvent financial institutions going bust and a few emerging market economies entering a full-blown financial crisis.
The worst is not behind us: 2009 will be a painful year of a global recession, deflation and bankruptcies. Only very aggressive and co-ordinated policy actions will ensure the global economy recovers in 2010 rather than facing protracted stagnation and deflation."
8 really, really scary predictions - Fortune Magazine - December 11, 2008.
Dow 4,000. Food shortages. A bubble in Treasury notes. Fortune spoke to eight of the market's sharpest thinkers and what they had to say about the future is frightening.
Known as Dr. Doom, the NYU economics professor saw the mortgage-related meltdown coming.
"We are in the middle of a very severe recession that's going to continue through all of 2009 - the worst U.S. recession in the past 50 years. It's the bursting of a huge leveraged-up credit bubble. There's no going back, and there is no bottom to it. It was excessive in everything from subprime to prime, from credit cards to student loans, from corporate bonds to muni bonds. You name it. And it's all reversing right now in a very, very massive way. At this point it's not just a U.S. recession. All of the advanced economies are at the beginning of a hard landing. And emerging markets, beginning with China, are in a severe slowdown. So we're having a global recession and it's becoming worse.
Things are going to be awful for everyday people. U.S. GDP growth is going to be negative through the end of 2009. And the recovery in 2010 and 2011, if there is one, is going to be so weak - with a growth rate of 1% to 1.5% - that it's going to feel like a recession. I see the unemployment rate peaking at around 9% by 2010. The value of homes has already fallen 25%. In my view, home prices are going to fall by another 15% before bottoming out in 2010.
For the next 12 months I would stay away from risky assets. I would stay away from the stock market. I would stay away from commodities. I would stay away from credit, both high-yield and high-grade. I would stay in cash or cashlike instruments such as short-term or longer-term government bonds. It's better to stay in things with low returns rather than to lose 50% of your wealth. You should preserve capital. It'll be hard and challenging enough. I wish I could be more cheerful, but I was right a year ago, and I think I'll be right this year too."
Helicopter Ben goes ZIRP, QE and More…While the Global Economy Enters Stag-Deflation - Noriel Roubini - December 17, 2008.
Nouriel Roubini Describes Continued 20% Market Downturn in 2009 - December 24, 2008.
The world's biggest bond fund manager, Pimco's Bill Gross, has denounced the US economy as being just another Ponzi scheme - January 9, 2009.
Leading economist fears decade of weakness in US - Professor Robert Shiller, Yale University and Kenneth Rogoff, International Monetary Fund - January 12, 2009.
U.S. stimulus not enough, TARP bailout misused: George Soros - Reuters - January 19, 2009.
Albert Edwards of Societe Generale SA says S&P 500 will drop 40% more to 500 - January 23, 2009.
Société Générale - Corporate & Investment Banking - Home
Edwards of Société Générale sees the "deflationary quagmire"
wiping another 40% off the S&P.
MoneyWeek.com - January 30, 2009.
S&P500 = 825 and DOW Industrial = 8000 on January 30, 2009.
"In short, what most pundits don't seem to realise is that this isn't just a nasty recession. It's a deflationary credit-bubble collapse, and with inflation already heading for zero, a Japan-style slump is a real possibility. Throw in the fact that US equities typically bottom with p/es in single digits after major bear markets – we are still at 16 – and there's still lots of downside. In fact, Albert Edwards of Société Générale sees the "deflationary quagmire" wiping another 40% off the S&P."
Albert Edwards Exposes the Media Bias and Lies - February 9, 2009.
"Albert Edwards, a market strategist at Societe Generale, is even gloomier about this year. “We remain at the bearish extreme of the market. It is not a pleasant place. It is cold, dark and damp. People either don’t speak to you or send you abusive emails,” he wrote, with a tinge of humor. “In this industry, commentators like to bring clients ‘good’ news. Hence, despite the once-in-a-generation collapse in the global economy, virtually every economist was looking for a soft landing. Similarly, now we are in the deep, deep recession no one felt able to predict and commentators are busily looking for signs of economic recovery.”
Bank of America's Bernstein Says Bank-Rescue Plan Won't Work - Bloomberg.com - February 11, 2009.
The media, politicians, hedge fund managers, bankers and investment counselors all hate Professor Nouriel Roubini because he has told the truth and exposed their ponzi schemes. They call him "Dr. Doom," "doom-saying party-animal," "pessimism prone," "renowned economic pessimists," "NYU Playboy," etc. They jealously joke and mock his "parties." What is the big deal? He is a bachelor who has fun bachelor parties. That's what bachelors do.
Roubini - The Joe Francis of Pessimism Porn
--- Warning ---
Alex Pareene, the author, of the story on the above link is so mad and jealous that he uses the "F" word.
Dr. Doom - New York Times Magazine - August 15, 2006.
Nouriel Roubini - I fear the worst is yet to come - The Times Online - October 26, 2008.
Nouriel Roubini - US has invented socialism for the rich - Guardian.co.uk - September 18, 2008.
Nouriel Roubini - No. 21 of 25 Market Movers - U.S. News - February 14, 2009.
Nouriel Roubini on prospects for 2009 - Financial Times - February 9, 2009.
Gerald Celente - 2009 Worst Economic Collapse Ever - Trends Research Institute - February 13, 2009.
President Barack Obama selected Timothy Geithner as Secretary of the Treasury and Lawrence Summers as director of the National Economic Council.
The Japan Fallacy - Today's U.S. Financial Crisis Is Not Like Tokyo's "Lost Decade."
From Foreign Affairs, March/April 2009
It's Deflation, Stupid!
UK - House prices may fall by a further 55 percent, and there is a "very real probability" that Britain will be bankrupted, a leading investment bank has warned in a private note to clients.
Telegraph.co.uk - March 11, 2009.
Don't Be Surprised If We See $20 Oil Says Roubini - March 10, 2009.
The talking heads on financial TV programs rave on and on about the fear of inflation because the US Federal Reserve is pumping money into the credit system and because of the approval of the $700 billion rescue bill. These people are stupid. None of them ever mentions deflation, but as of October 10, 2008, we have the most massive deflation crash of a lifetime. Equities are plunging. Commodities are plunging. Corn is down 50% in two months. Wheat is down 50%. Houses are down 30% in many cities. The S&P500 index was down 45.8% from the October 9, 2007, high of 1565.15 to 848.92 on October 27, 2008. The talking heads on financial TV programs keep repeating the old lie that "money market accounts don't keep up with inflation." Well, I guess stock do? The S&P500 is down 45.8%, and corn down 45.8% in December, 2008. The gain from the 1929 DOW high of 386 to the present DOW 8500 is only 4% per year. During a crash, they never tell you to buy stocks because they keep up with deflation. Talking heads have been saying "buy - buy - buy" all the way down. Never take advice from your stock broker either. I got a telephone call about a year ago (2007) from my stock broker's account manager. She asked what my investment goals were. I said, "Preservation of the principle." She belly laughed loudly before controlling her amusement. Again, never take advice from your stock broker. They never say "sell" at the top.
Deflation has become inevitable by London Banker - December 12, 2008.
Federal Reserve Chairman Ben Bernanke (Helicopter Ben or C-130 Ben) said, "I will throw money from helicopters before I will allow deflation." Well, the first little $300 stimulus package of 2008 was not enough to pay the mortgage for even one month. Bernanke did not act soon enough or with enough money.
Talking heads on TV keep saying the money must be borrowed from China and our grandchildren must pay it back. No. No. No. Print the money. Throw it out of helicopters as Bernanke promised to do but didn't. That is the only way to stop deflation.
Other idiots says we must go back on the "gold standard." This is beyond dumb and impossible. A gold-based currency would make the gold producing-countries the new rulers of the world. Can you visualize the Republic of South Africa as the ruler of the world? The thought is stupid. They can't even produce enough electricity to keep the lights on. In the summer of 2008, South Africa forced the shutdown of the gold mines because of a shortage of electricity.
The world is already on the "energy standard" or "crude oil standard." The value of any currency is measured against the cost of one barrel of crude oil. Other energy sources are proportional. The standard of living in each country is based on the amount and cost of energy used per citizen. The highest energy usage at the lowest cost produces the highest standard of living. Therefore, the United States should embark on a massive program to build nuclear-powered electrical generating stations, which is the lowest cost energy production method.
Top Ten Scientific Facts About Hybrid Cars, Hydrogen Cars, Diesel Vehicles, Corn Ethanol Flexfuels, Biofuels, and Photovoltaic, Solar, Wind, Nuclear, Hydro, Coal Fired, Combined Cycle Turbines and Refuse-Fired Power Plants.
Forget President Bush. He does things backwards. Forget the USA Senate and House of Representatives. They are politicians who don't have a clue about finances except slick ways of stealing money from the people. They have made no attempt to remove the default trap.
Forget about President Barack Obama. He is a stupid Marxist, too.
Long-Term Economic and Deflation Expectations
The stock markets worldwide will slump into the fall of 2009, with prices that could drop another 20% to 30% to a S&P500 Index of 600 to 700. The DOW Jones Industrial Index will most likely fall below 7000 and possibly below 6000. Many banks will be forced to declare bankruptcy. Many states, county governments, and cities will be forced to declare bankruptcy with defaults on municipal bonds. Thousands of companies will be forced to declare bankruptcy, with several of those in the S&P500 Index.
Deflation will continue into the fall of 2009, with housing prices continuing to drop another 20% to 30% from Obama Day, 11/04/2008. Inflation in housing will not occur. That would only bale out the sluggards who never get an easy bale out. Natural economic forces work in the opposite direction to Marxism.
2009 through 2020 will see boring, boring, boring stagnation as the enormous debt of the states, counties, cities, and citizens slowly abates.
Energy inflation will soar in or about 2020 as the failed energy programs of President Obama are revealed. This will cause another worldwide recession lasting years. Obama should promote massive building programs in safe nuclear electric generating stations, but he won't. Nuclear plants should have a "Master Run" switch controlled by the National Nuclear Agency that cannot be overridden by plant operators or management. Fifty (50) nuclear power plants of 1000 MWe each should be the initial construction program with plans for doubling the size of each. Obama may build one as a "test unit," but probably not.
Nuclear electric power would allow Obama and future presidents to shut down all oil-fired power plants, but they won't. Fuel oil deliveries to homes should be curtained as the nuclear electrical power comes on line, but Obama will kiss up to OPEC instead. He should promote coal liquification programs for the production gasoline and diesel fuels from coal, but he won't. Wind fans and solar panels will be the heart of Obama's energy program, but they simply won't do the job. The wind stops and the sun goes down, you know! DUH! He should be promoting electric cars for commuters that will be recharged from the cheap nuclear electricity, but he won't.
The United States has massive energy resources of coal, natural gas, and nuclear that can be used immediately to reduce our dependence on imported crude oil, but Obama will ignore all of these proven and available resources even though the Earth will enter a severe cooling period.
Global Warming, Cooling, or Ice Age?
What are the climate projections for the Earth?
Top Ten Scientific Facts About Hybrid Cars, Hydrogen Cars, Diesel Vehicles, Corn Ethanol Flexfuels, Biofuels, and Photovoltaic, Solar, Wind, Nuclear, Hydro, Coal Fired, Combined Cycle Turbines and Refuse-Fired Power Plants.
Trends Research Institute - Gerald Celente - World's No. 1 Trends Forecaster.
Bernanke Has Turned China Into a Slave Nation
The Chinese have been "sucker punched" by Federal Reserve Chairman Benjamin Shalom Bernanke who has turned China into a slave nation. Bernanke's move is called monetization of the debt or printing free money. It goes like this.
Over the last 20 years China has produced two trillion dollars worth of goods to export to the United States. In return the Chinese purchased US treasury bonds.
Imagine millions of Chinese working a billion man-hours at $1 per hour to receive a $1 billon treasury bond, just a piece of paper.
Now imagine the Chinese doing this over and over 2000 times. They already did this.
Beginning in March, 2009, Ben Bernanke filled out a Federal Reserve form on his computer to print one US Treasury Federal Reserve Note with a value of one billion dollars. He clicks "print." He uses the note to buy one billion dollars worth of Federal Reserve bonds on the open market and sends the seller the note. That was quick and easy.
Slick move. Ben Bernanke just wiped out one billion man-hours of Chinese labor for a piece of paper. He is planning to do this 300 times in the new few weeks, maybe thousands of times in the coming months.
China worked all of those billions of man-hours for NOTHING, but a piece of paper. What fools. China should have spent the US dollars on infrastructure, highways, railroads, hydroelectric dams, nuclear power plants, modern farm machinery, car and truck manufacturing plants, oil reserves, mineral reserves, foreign land, and tangible resources, but they didn't. They picked a piece of paper. China was a fool for buying our debt.
Bernanke tells his secretary that he has set his printer to make 299 more one billion dollar Federal Reserve notes. He says, "Please keep the paper supply tray filled while I am at lunch, and just stack the printed notes on my side table."
The Federal Reserve is trying to push up the price of the 30-year bonds and thereby lower the interest rates so home mortgages can be obtained at a lower rate. This is not likely to work because there is a huge mountain of sellers, like China, waiting anxiously to dump their holdings of US 30-year bonds. China alone has 2,000 billion dollars worth of bonds to sell, but Bernanke only plans to buy 300 billion dollars' worth.
Fed to buy $300 of Long-Term Treasuries - Bloomberg - March 18, 2009.
China's Dollar Trap by Paul Krugman - April 2, 2009.
Who will want to buy US treasuries now? Not China. They are desperately searching for a way to exchange their US treasury bonds for some other currency, commodity, or anything else, but there are no buyers except the US Federal Reserve. China is trapped in the US dollar and can't get out. Bernanke pays for 300 billion man-hours of labor with play money he printed while having a two-hour lunch. Wow! That is brazen. Monetizing the debt is highly addictive to politicians, and it will prove so for the US Federal Reserve. Many countries have taken this easy path which always turned their currency into "funny money," "play money," or Monopoly money. It is a signal to the world that the US dollar is toast. Of course, the dollar has been toast for years. My house purchased in 1990 has tripled according to the April, 2009, county assessment based on comparable neighborhood sales, even though the 2009 appraisal is down 6% from the 2008 assessment. In other words, the dollar has plunged 66%. Think of the tremendous gain China would have had if they had purchased oil reserves instead of US Treasury bonds. The US Federal Reserve promoted the debt bubble which has now exploded in their faces.
So, what should China do now?
One absolutely awesome move by China would be to print or monetize the yuan, China's currency. They should print all they possibly can to buy products they can use and need from the United States and Europe. These items should be things which improve productivity, construct infrastructure, mining equipment, energy development equipment, and high-tech scientific equipment. The monetized yuan would tend to offset the tendency of the yuan to rise against the dollar and euro, thereby making a fixed yuan/dollar rate easier to maintain. This would prevent the United States from redeeming the US Treasury Notes with cheap devalued dollars. The monetizing of the yuan would neutralize the effect of the US monetizing the dollar. China would benefit greatly. The renminbi (literally "people's currency") or the yuan is the official currency in the mainland of the People's Republic of China (PRC).
China could receive FREE imports from the USA and Europe. Yes, absolutely FREE.
China could receive the yuan back as they exported sales to the USA and Europe.
China could receive a multiple benefit for the monetized yuan, exports, and imports.
China could develop infrastructure using FREE equipment.
China could develop mining projects using FREE equipment.
China could develop energy projects using FREE equipment.
China could import FREE highly sophisticated scientific equipment.
China could continue to fix the yuan against the US dollar to protect the US Treasury Notes from devaluation.
China, you owe me.
US Debt on Default Path by W. Joseph Stroupe - Asian Times - May 8, 2009.
Pimco's Gross sees Fed bond purchases accelerating - Reuters - May 8, 2009.
History suggests stocks have not yet bottomed by Martin Hutchinson - May 12, 2009.
Based on previous bear markets, the S&P 500 could retreat from the current 909 to 470.
The Chinese yuan is preparing to overtake the US dollar as the world's reserve currency, economist Nouriel Roubini has warned. Telegraph.co.uk - May 14, 2009.
More Inflation: The Easiest Call on the Planet, but Bob Prechter (Elliot Wave Theory) says it is Wrong. - June 19, 2009.
"In this excerpt from Bob Prechter's latest issue of The Elliott Wave Theorist, he explains why he still firmly stands on his statement that the world economy is in the early stages of the "greatest deflation ever.""
We are in the earliest stages of the greatest deflation ever, not inflation and certainly not hyperinflation. Inflation would simply bale out the sluggard and start him on another spending spree, wasting the equity in his house. That will never happen again for a long, long time.
Score: Deflation = 11, Inflation = 2, Neutral = 2
Expect Lower Prices in Houses, Commodities & Equities - June, 2009.
FED: Household Net Worth off $14 Trillion - 1st Qty 2009.
It seems obvious this
deflationary crash in net worth will not result in inflation as many claim.
The value is still not down to the average for the pre-double-bubbles, say 325% of GDP.
It could return to the 1974 low of about 290% of GDP given the financial collapse.
Either case would erase the 2nd Qtr 2009 rally.
Click the graph to see an enlargement.
China's banks are an accident waiting to happen to every one of us - Telegraph.co.uk - June 28, 2009.
"If the world's biggest surplus state ($400bn) is too structurally deformed to help offset the demand shock as Western debtors retrench, we are trapped in a long deflation slump."
Debt Deflation the Reason Why Government Economic Stimulus is Doomed to Fail.
Dr. Lacy Hunt - July 14, 2009.
MARC FABER July 2009 Expect Total Collapse Soon.
Bob Prechter: Deflationary Cycle Just Beginning
August 11, 2009
Does the world have the courage to deal with its debts? Telegraph.co.uk - September 6, 2009.
"Deflation is spreading from the core of the global system to the most unexpected regions of the world. It has even reached Latin America. Prices are sliding in Peru, Chile, Colombia, Paraguay, Bolivia, Ecuador, Guatemala, and El Salvador, to the consternation of everybody."
"Enough of the world has already fallen so far into pre-deflation conditions that any misjudgment by the big central banks from now risks setting off a chain-reaction that may prove very hard to stop. CPI inflation has dropped to –2.2pc in Japan (a modern record), -2.1pc in the US, -1.8pc in China, -1.4pc in Spain, -0.7pc in France, and -0.6pc in Germany."
Truth About Zionism, Israel, and the Holocaust
"And you shall know the truth,
and the truth shall make you free." John 8:32
Test all things; hold fast what is good.
1 Thessalonians 5:21
"Zionism and Christianity: Unholy Alliance" full-length film by Ted Pike
This video explains why the Bible says Jerusalem is the Whore and Babylon.
However, the Rapture and End Times doctrine are incorrect in this video.
See the correct End Times in the following web page.
Major Christian Doctrines in the Bible
The Zionist Matrix of Power - Full Documentary by Dr. David Duke
Greatest Lie Ever Told - The Holocaust - 2015 Documentary HD
Activist News Australia
The Holocaust Hoax Exposed - Steven Anderson
to Zion' Official Full Film
Exposes the Treacherous Creation of Israel as Children of the Devil
Jew World Order Exposed
Jew World Order Exposes Jewish Treachery Worldwide
Treachery by Which the Zionist Were Given Palestine
Zionist Jew Agenda Exposed - SHOCKING Truth
How the Jews Are Destroying America
‘Did Hitler Have Reason to Hate the Jews?’
Is the Holocaust a Hoax?
The "Six Million" Myth
Holohocaust Survivors who Tell the Truth - YouTube
Declares War on Germany (Full Version)
Facts About the Holocaust you DIDN'T know! - YouTube
The Lies of the Holocaust by a Jewish Investigator David Cole - YouTube
The Holocaust Hoax Exposed - Interview with author Victor Thorn - YouTube
Holocaust Facts vs. Fiction Part 1 of 3 by Ernst Zundel - YouTube
Holocaust Facts vs. Fiction Part 2 of 3 by Ernst Zundel - YouTube
Holocaust Facts vs. Fiction Part 3 of 3 by Ernst Zundel - YouTube
Christians were murdered in the USSR under Jewish Marxism between 1917-1945
This Is BAD News.
Even Senator Ted Cruz Is an Israeli Lackey
ZIONIST Israeli Plant, TED CRUZ, Booed Off Stage By Fed Up Christians and Arabs
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