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Economic Collapse – This is How It Begins

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John Little – OmegaShock.com

As I continue to build up the Ezekiel’s Fire website, it has become more and more clear to me that catastrophe is headed towards America. America must fall, and it will fall. And, I wish that it wasn’t going to happen. I really, really do.

However, we have sinned against God, so this is our just reward.

For those of you who want to see evidence that this calamity approaches, we’ve had two warning shots fired across our bow, over the last few days. And, we will see more in the coming weeks and months.

My hope is that you will be ready when the warnings stop, and the collapse begins.

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Economic Collapse – This is What It Looks Like

People always want to talk about a conspiracy, whenever things go bad. That is completely understandable, and there is some truth to it.

However, not everything is a conspiracy. Some events occur naturally, and you will find the most conspiracy amongst those who are trying to avoid that which is natural.

I like to think of it as jockying for the best position in the lifeboat.

Yes, there IS a conspiracy, and the conspirators are a foul, evil bunch that God is going to knock down, but that is a discussion for another day.

Now, where was I… oh yes …economic collapse.

Economic Collapse

An economic collapse comes from you and me. We Little people are the cause. (And yes, my last name really is Little.) And, we cause this economic collapse by the choices that we make.

When you don’t have very much money…

…you buy less.

When your neighbor loses his job, you get scared about your own job, and start saving money. Of course, saving money means…

…you buy less.

When you retire from your job…

…you buy less.

When healthcare costs go up…

…you buy less.

And, when you buy less… those who produce the stuff you buy… well …THEY also are forced to buy less.

China

Who do Americans buy from?

China

And, America is China’s biggest trading partner. So, when America buys less stuff from China… well …the Chinese buy less stuff from everyone else.

What do the Chinese normally buy?

Oil.

From Saudi Arabia.

Saudi Arabia

China buys other stuff, but oil is a big one. And when Chinese companies have fewer orders, they consume less oil. Those companies also lay off their workers, which means that those workers ALSO consume less oil.

…and so on…

…and so forth.

The next question is…

What does Saudi Arabia do about this?

Well, they ultimately find themselves with lots of extra oil, because China isn’t buying it. This means that they need to offer that extra oil to others. However, those ‘others’ won’t buy it for the same price that China is buying it for.

So, what does Saudi Arabia do?

They lower the price until people start buying.

They could lower production, and Saudi Arabia has done that in the past. But, the results of lowering production was a loss of market share, and they don’t want to do that this time. Also, the king of Saudi Arabia is on his last legs, and his vile little kingdom is in trouble.

So, to keep the masses happy and unwilling to revolt, the Saudis want to keep pumping their oil.

As Shakespeare said:

Uneasy lies the head that wears a crown.Henry IV

Please remember also that the Saudis have not increased production. All that they have done is maintain their production at previous levels. To put it another way, the only thing that the Saudis have done is… nothing.

Those of you who think that the Saudis have lowered their prices for any number of conspiratorial reasons are missing the point. The Saudis haven’t lowered their prices.

You have.

YOU are buying less oil, so they have no choice.

Remember this quote from the Washington AP bureau chief, in 1932:

All politics is localByron Price

(NOT Tip O’Neill)

The Saudi king is far more interested in his own ability to survive for the next few years than in destroying US shale oil production, hurting Russian hegemony or taking a whack at Iran. Yes, all of those oil producers are going to hurt, but the main focus of the Saudis is keeping their people from rising up and throwing them out of power.

Really. They hate that.

Russia

Unfortunately, this puts Russia in something of a bind, since half of all their income comes from petroleum and natural gas production. This means that Russia will not be able to fulfill all the promises that they have made. Lots of those promises were made to people outside of Russia, and lot of those promises were made to people inside Russia.

Remember:

All politics is local

So, you can guess which promises that Russia is going to break:

The ones made to non-Russians.

Now, Russia is going to work hard to keep from breaking those promises, but she will ultimately be forced to.

What are those promises that Russia is going to break?

Bonds sold to foreigners.

Ouch.

Why ouch?

Financial Organizations

Because banks and institutional investors hold those bonds. And worse, there are lots of derivatives swimming around, ready to bite somebody. If enough banks and institutional investors get hurt by all this…

Well, do you know what happens when banks and investors get hurt?

They sell stuff. Lots of stuff.

This causes the price for ‘stuff’ to fall. Those investors who own the same ‘stuff’ lose money, and THEY are also forced to sell – especially those who bought investments using debt, also known as ‘margin’.

Have you ever heard of a margin call?

Yup. We’re going to get lots of those. And THAT means a collapse of the US stock market, bond market and… well …a LOT of other stuff.

It will be a ‘domino effect’ and it will sweep away a huge number of people that still have their money in financial institutions of ANY kind.

That means YOU.

GET OUT

If you have ANY money in an insurance policy, 401K, IRA, bank or any other company or organization… you will lose ALL of it over the coming months, if you do not get it out.

And, you will get NO warning.

Well, actually, that’s not true. What I’m telling you now is a warning. And, I’ve given you lots and lots of warnings in the past. And, you might have a couple more warnings before we’re done. But, it’s hard to say what your LAST warning will be.

Please. Do NOT try to figure out what or when your last warning will be. It will hit you when you least expect it, which is what the US government wants. They do NOT want you forewarned.

Please take your money out now, and buy something of tangible value. My preference is silver, followed by gold. But, you might think that something else will hold its value in the coming collapse. Food, water, ammunition and Bibles come to mind.

But, whatever you buy, it must be something that will hold its value in a collapse situation – which means that someone will want to buy it from you for at least a high fraction of the price you paid for it.

I really wish that this was some half-baked conspiracy theory that we could all wave away, but it isn’t. This is life and death.

And you are NOT ready for this.

I truly hope that you’ll be ready for this
(That’s a link. There’s not much time left.)

A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.Proverbs 22:3

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note – I am not offering financial or disaster preparation advice in a professional capacity. These are merely my own thoughts on what I would do in these situations.

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If you find a flaw in my reasoning, have a question, or wish to add your own viewpoint, leave a comment on the website. Your input is truly welcome.

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Click the following link and SHOCK your inbox with The Shock Letter:

http://eepurl.com/Epr5H

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Categories: Economy, Finance, Gold and Silver, Russia | Tags: China, Conspiracy Theory, Crude Oil, Domino Effect, Economic Collapse, Oil, Saudi Arabia

 



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    Total 4 comments
    • Sun Rabbit

      I don’t know man, I think you’re overstating the painfully obvious and preaching to the choir at the same time. Everyone knows about the inevitability of the USD going to wallpaper just that nobody knows exactly when. Not like it’s gonna happen in the next 20 minutes because the big boys are still using it as a vehicle to buy supercheap Silver in the USA. I found a source @24 Euros/z and I’m glad to be glad, as it were because the prices over here are hideous due to VAT.
      I’m not a chapter-and-verse guy, but when I last did the calculation, when you look at the USA national debt not in Dollars but in man-hours, it would take 230 years of all 7 billion people on this planet working @20 USD/h and taxed at 100%. That is flat-out not doable. Never gonna happen.
      The real question is what happens after. Some people speculate that the Gold-backed Chinese Yuan will take over as the world’s reserve currency, but they got problems of their ow. For one thing, they hold all this soon-to-be-worthless USA debt on their books which after adjusting for inflation is yielding them 0.011% in the best case scenario. The other thing is their massive internal debt which is many times their GDP, another unsustainable situation. The only remaining viable option is the Russian Ruble. Last time I checked it was backed up by 130% of its value in Gold, other hard currencies and yes, American bonds. But still they have a massive trade surplus and also, I think the west is more likely to accept the use of Rubles versus Yuan if purely for psychological reasons because a lot more westerners speak Russian than they do Chinese, and they can easily check up on what their central bank is really doing by going to the original documents rather than their English translations, which may not be as accurate (at least I’ve noticed this personally).
      The real anomaly is why the Dollar HASN’T collapsed yet. Same reason as to why the Ruble is falling so sharply for no apparent reason whatsoever. None. The price of the Ruble has nothing to do with crude oil, and if anything, there should be an INVERSE correlation between the two. It’s blatant market manipulation. It’s the reason why the price of Gold is NOT 10,500/z and Silver 550/z when all the fundamentals indicate that it should be. Back in 2009 I did those calculations for my bank and they were replicated by the late Edgar Steele. In short, use the opportunity to buy Silver, Gold, and (maybe, just maybe) Rubles. I did a study, which was pretty much confirmed by my contacts in Russia that the rebound should come @cca 80/USD. So I opened up a RUR acct. and I’m just waiting. Should be fun (or not).

    • liberty

      BEAR WITH ME AS THIS IS A BIT LENGTHY BUT I HAVE 2 REPORTS TO SHARE.

      WANT TO SEE WHOM THE “QUEEN BLACK WIDOW” is whom is trying to kill all her “prey”?This is where the the “hidden nest” is folks:
      YOU WANT TO SEE EVIL OF ALL EVIL? JOHN BRENNAN.

      Look at what that one monster is attempting to do round the Globe:Look at what I found:

      ********************************

      WMR has learned that Brennan’s agents inside Saudi Aramco convinced the firm’s management and the Saudi Oil Ministry to begin fracking operations to stimulate production in Saudi Arabia’s oldest oil fields.
      By pumping salt water into older wells, some at a depth of 3 to 6 thousand feet, an inordinate amount of pressure was built up. 

      The CIA’s oil industry implants knew what would occur when the fracking operations began.
      Due to the dangerously high water pressure, the Saudis were forced continuously pump oil until the pressure became equalized. That process is continuing.

      If the Saudis ceased pumping oil, they would permanently lose the wells to salt water contamination. In the current “pump it or lose it” situation, the Saudis are forced to pump at a rate that may take up to 5 years before they can slow down production rates.

      The net result of the CIA-inspired fracking operations, which the Saudis were warned not to pursue by petroleum engineers working for some foreign-based firms like Schlumberger, is that there will be an oil supply glut for the next 5 years.
      The glut will be followed by a reduction in Saudi oil production unless new oil fields are brought on line.

      There is now a major push by U.S. and Canadian oil companies to bring the Keystone XL pipeline from Canada to the United States to offset the expected sharp rise in oil prices in five years.

      The CIA operation to frack Middle Eastern oil fields was not only limited to Saudi Arabia. WMR has learned from oil industry sources that similar fracking caused over production problems in Kuwait and Iraq.

      CIA engineered Saudi overproduction by fracking old wells.

      The result of the sudden decline in oil prices has resulted in heavy damage to the economies of the CIA-targeted countries of Russia, Iran, and Venezuela.

      Brennan and his economic warfare operatives banked on the Saudi over-production to harm the economies of all three countries and the CIA has not been disappointed.

      The CIA figures that the governments of Vladimir Putin in Russia, Ayatollah Ali Khamenei in Iran, and Nicolas Maduro in Venezuela will have long since collapsed and been replaced by pro-Western regimes within 5 years.

      Already, from his base in Switzerland, exiled Russian tax evader billionaire Mikhail Khodorkovsky has called for Putin’s overthrow and even his assassination.
      Meanwhile, the U.S. Congress and the Obama administration have taken cues from the CIA to impose devastating economic sanctions on both Russia and Venezuela.

      Similar congressional legislation to increase sanctions on Iran is pending.
      Russia has been harmed the most by the CIA’s Saudi oil production scheme.

      The Russian ruble fell 56 percent in value against the U.S. dollar while Russian interest rates climbed to 17 percent. The price of shares of Russia’s largest lending bank, Sberbank, fell 18 percent.

      Although the Russian economic collapse has resulted in financial ripples around the world, with Austrian and French banks losing their stock values and the value of the Polish zloty and Hungarian forint falling against the dollar, the Obama administration says that there will be no easing on economic sanctions imposed on Russia over Ukraine.
      Obama has put the investments of American holders of Russian bonds in dire jeopardy.

      The Pacific Investment Management Company’s (PEBIX) Emerging Markets Bond Fund, which holds over $800 million in Russian bonds, has lost almost 8 percent in value in the past few weeks.

      Russian Central Bank vice chairman Sergei Shvetsov said, “What is happening is a nightmare that we could not even have imagined a year ago.”

      Meanwhile, basic staples in Venezuela, including cooking oil, rice, and corn flour, are becoming hard to obtain.

      The U.S. dollar has jumped 1700 percent in value against the Venezuelan bolivar on the black market.

      The CIA is using the financial collapse to push for an undemocratic overthrow of the Venezuelan government.
      Iran, which has been under punitive Western economic sanctions for a number of years over its nuclear power program, is probably best able to weather the storm.

      Iran has built up a rather impressive domestic food production, telecommunications, and oil industry infrastructure to survive the sanctions.
      However, Iranian President Hassan Rouhani appears very aware of the Saudi role in the conspiracy to drive down oil prices.
      Rouhani recently said, “The main reason for [the oil price plunge] is [a] political conspiracy by certain countries against the interest of the region and the Islamic world and it is only in the interest of some other countries . . . Iran and people of the region will not forget such conspiracies, or in other words, treachery against the interests of the Muslim world.”

      Brennan’s and the CIA’s industrial sabotage of the Saudi and other Middle East oil industries will continue to have far-reaching effects on the world economy.
      Oil industry insiders fear that the CIA has unleashed something that may deal a devastating blow to the global economy.

      NOW THE SECOND REPORT:

      Free Fall of the Ruble – A brilliant ploy of Russian economic Wizards? Who’s chess game?

      The world is still hell-bent for hydrocarbon-based energy. Russia is the world’s largest producer of energy. Russia has recently announced that in the future she will no longer trade energy in US dollars, but in rubles and currencies of the trading partners.
      In fact, this rule will apply to all trading.

      Russia and China are detaching their economies from that of the West. To confirm this decision, in July 2014 Russia’s Gazprom concluded a 400 billion gas deal with China, and in November this year they signed an additional slightly smaller contract – all to be nominated in rubles and yuan.

      The remaining BRICS – Brazil, India and South Africa – plus the members of the Shanghai Cooperation Organization (SCO) – China, Russia, Kazakhstan, Tajikistan, Kirgizstan, Uzbekistan and considered for membership since September 2014 are also India, Pakistan, Afghanistan, Iran and Mongolia, with Turkey also waiting in the wings – will also trade in their local currencies, detached from the dollar-based western casino scheme.
      A host of other nations increasingly weary of the decay of the western financial system which they are locked into are just waiting for a new monetary scheme to emerge.
      So far their governments may have been afraid of the emperor’s wrath – but gradually they are seeing the light.

      They are sensing the sham and weakness behind Obama’s boisterous noise. They don’t want to be sucked into the black hole, when the casino goes down the drain.

      To punish Russia for Ukraine, Obama is about to sign into law major new sanctions against Russia, following Congress’s unanimous passing of a recent motion to this effect. – That is what the MSM would like you to believe.

      It is amazing that ten months after the Washington instigated Maidan slaughter and coup where a Washington selected Nazi Government was put in place, the MSM still lies high about the origins of this government and the massacres it is committing in the eastern Ukraine Donbass area.

      Congress’s unanimity – what Congress and what unanimity? – Out of 425 lawmakers, only 3 were present for the vote http://www.informationclearinghouse.info/article40489.htm.

      The others may have already taken off for their year-end recess, or simply were ‘ashamed’ or rather afraid to object to the bill.
      As a matter of fact, of the three who were present to vote, two at first objected.

      Only after a bit of arm-twisting and what not, they were willing to say yes. This is how the ‘unanimous’ vote came to be, as trumpeted by the MSM – unanimous by three votes!

      The public at large is duped again into believing what is not.

      What new sanctions does this repeatedly propagated bill entail? – It addresses mostly Russian energy companies and defense industry with regard to sales to Syria, as well more anti-Russia propaganda and ‘democratization’ programs in Ukraine – and Russia; all countries with the objective for regime change.

      How do these sanctions affect Russia, especially since all Russian energy sales are no longer dollar denominated? – Sheer propaganda.

      The naked emperor once more is calling an unsubstantiated bluff. To show his western stooges who is in power. It’s an ever weaker showoff.

      Now – as a consequence of declining oil prices and of western ‘sanctions’ – of course, what else? – Russia’s economy is suffering and the ruble is in free fall. Since the beginning of the year it lost about 60%; last week alone 20%.

      As a result and after serious consideration, says MSM, the Russian Central Bank decided a few days ago to increase the interest of reference from 10.5% to 17% to make the ruble more attractive for foreign investors. It worked only for a few hours. Raising the interbank interest was Putin’s reply to Obama’s bluff – feeding at the same time western illusion about Russia’s decline.

      The propaganda drums tell you Russia is helpless because the world has lost the last bit of confidence in President Putin – of course. Regime change is on the agenda.
      Mr. Putin must be blamed as the culprit, hoping to discredit him with his people.
      He is leading Russia into a deep recession; the worst since the collapse of the Soviet Union.
      The mainstream media show you interviews with average mainstreet Russians saying they have lost all their savings, their salaries and pensions are worth nothing anymore and they don’t know how to survive this coming calamity.

      In reality, at least 80% of the Russian population stands solidly behind Vladimir Putin.
      He has brought them universal education, health care and fixed infrastructure that was decaying after the fall of the Soviet Union.
      President Putin is literally revered as a hero by the vast majority of Russians – including the country’s oligarchy.

      In fact, nobody in the western economic system these days is dealing in rubles.

      In short-sighted connivance with Washington, the treasuries of the western vassals are releasing their ruble reserves – which Russia does not buy, thereby flooding the market.

      Russia not only has large dollar reserves, plus the ruble is backed by gold, a fact consistently omitted in the MSM.
      For now, Russia prefers to let the ruble plummet.

      Under another ‘arrangement’ by bully Obama, Middle Eastern oil producing puppets like Saudi Arabia and the Gulf States are overproducing and flooding the market with petrol and gas, thereby driving the price down to the ostensible detriment of Russia and Venezuela, both countries where Washington vies for regime change.

      A double whammy thinks Washington, buying kudos with the stooges. The sheiks that control their energy output apparently have been promised enough goodies from Washington to bite the bullet and take their own losses.

      Russia needs rubles. That’s her currency.

      That is the currency Russia needs for future trading – detached from the western monetary system.

      When Russia deems that her currency has reached rock-bottom, she will buy back cheap rubles in the market with massive amounts of dollars.

      Russia may then flood the western market – with dollars, and by now we know what that does to a currency – and simultaneously buy back rubles from the West.
      A brilliant move to reestablish Russia’s currency in a new emerging monetary system – which Europe would be welcome to join, but willingly, no by Washington style arm-twisting.

      Is this another precursor to war?
      A nuclear confrontation or Cold War II? – Precursor to a false flag attempting Moscow to fall into the trap? – Not necessarily.
      Russia is playing a clever chess game, diplomacy at its best.

      Instead of sabre rattling – Russia is coin rattling. It might lead to a western financial fiasco early in 2015 for the dollar and euro denominated economies. And the winner is…?

      • Sun Rabbit

        That pretty much confirms what I’m saying, that the only viable option to the USD is the RUR, and that the RUR rates are being manipulated by the west. The fact that the Ruble lost 56% of its value and the interest rate is 17% now is pretty much proof that this is so. The CZK has remained unchanged vs. the USD yet they lowered their rates again to 0.05% on a 2-year. That’s another country with a really well-backed currency and a strong economy, only problem is that there’s nowhere nearly enough Crowns to satisfy worldwide demand.
        Also, don’t forget why BRICS was formed in the first place. With the Dollar being the world’s reserve currency, sooner or later those Dollars end up in a US bank, and if on some whim, the USA decides that they don’t like your country, they freeze and/or steal all your Dollars. That’s why.

    • Sun Rabbit

      Forgot to mention the obvious: the Euro. I don’t think the Euro could serve as a long term replacement for the USD as a world reserve currency simply because of the ECB’s inflexible interest rate policy. They got their hands tied by all the massive internal EU debt, and raising the interest rate just 0.1% could drive countries like Greece into bankruptcy. And we all know about what happened to all the EUR deposits in Cyprus. That was outright theft, and anybody seeing that is going to think twice about holding any Euros simply because sooner or later, those Euros eventually wind up either in transit or parked at a European bank in the Eurozone, and nobody knows who will be the next Cyprus.
      A lot of the non Euro EU countries have their currencies pegged to both the USD and the EUR, and if you want to know where the market really is heading, just look at their exchange rates vis-a-vis the EUR/USD and that tells you everything. I let all their hardworking analysts at their central banks do all the work for me, and all you gotta do is look at their exchange rates. For one thing, they’re not putting a lot of confidence in the Euro, that’s for sure.

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