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The Eminent Collapse Of The Global Economy

Saturday, February 6, 2016 11:28

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Thank you JS!………… THE EMINENT COLLAPSE OF THE GLOBAL ECONOMY

HOW DO WE,
AS AN
“AWAKENED PEOPLE”
COME TOGETHER

AND ‘ UN-ORCHESTRATE ‘ THIS

CREATED – PLANNED ‘ CATASTROPHE ‘ ???

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” ORCHESTRATED CATASTROPHE “

The EMINENT COLLAPSE of the GLOBAL ECONOMY

THE LAST ACT OF A TYRANNICAL GOVERNMENT IS TO LOOT IT’S PEOPLE

THE LOOMING WORLD FINANCIAL CRISIS IS AN ORCHESTRATED CATASTROPHE.

THE FINAL STAGES BEGAN IN THE EARLY 2000′S WHEN FINANCIAL RISKS WERE TRANSFERRED FROM THE RICH WHO MADE BAD INVESTMENTS TO THE TAXPAYERS IN THE FORM OF BAILOUTS UNDER THE GUISE OF THE TOO-BIG-TOO-FAIL FALSE DOCTRINE.

THE CENTRAL BANKING GLOBALIST CREATED MULTIPLE FINANCIAL HEGELIAN DIALECTIC PARADIGMS COMPRISING THREE STAGES OF DEVELOPMENT:

THEIR ORCHESTRATED PROBLEM GIVING RISE TO OUR REACTION TO BE RESOLVED BY THEIR SOLUTION.

UNLESS WE, THE PEOPLE, UNDERSTAND HOW THEY ARE SETTING US UP FOR ENSLAVEMENT, WE WILL CONTINUE TO PROVIDE THEM WITH THE MORAL AUTHORITY TO SUCCEED.

THE FOLLOWING IS A SYNOPSIS OF A FEW OF THEIR SECONDARY ENGINEERED PROBLEM – REACTION – SOLUTION PARADIGMS WHICH IS CONTRIBUTING TO THEIR PLANNED EMINENT COLLAPSE OF THE GLOBAL ECONOMY WHICH MAY REQUIRE A MAJOR DISTRACTION SUCH AS WWIII AS EVIDENCED BY THE WORLD FINANCIAL CRASHES IN 1917 PRECEDING WWI AND 1929 PRECEDING WWII:

Government policies and the subprime mortgage crisis

…’The Great Recession was a period of general economic decline observed in world markets beginning around the end of the first decade of the 21st century. The exact scale and timing of the recession, and whether it has ended, is debated and varied from country to country. In terms of overall impact, the International Monetary Fund concluded that it was the worst global recession since World War II. According to the US National Bureau of Economic Research (the official arbiter of US recessions) the US recession began in December 2007 and ended in June 2009, and thus extended over 19 months. The Great Recession was related to the US financial crisis of 200708 and subprime mortgage crisis of 200709.’…

The U.S. subprime mortgage crisis was a set of events and conditions that led to a financial crisis and subsequent recession that began in 2005. It was characterized by a rise in subprime mortgage delinquencies and foreclosures, and the resulting decline of securities backed by said mortgages. Several major financial institutions collapsed in September 2008, with significant disruption in the flow of credit to businesses and consumers and the onset of a severe global recession.

PROBLEM

Government housing policies, over-regulation, failed regulation and deregulation have all been claimed as causes of the crisis, along with many others.’…

…’In finance, subprime lending (also referred to as near-prime, non-prime, and second-chance lending) means making loans to people who may have difficulty maintaining the repayment schedule, sometimes reflecting setbacks, such as unemployment, divorce, medical emergencies, etc. Historically, subprime borrowers were defined as having FICO scores below 640, although “this has varied over time and circumstances.”

These loans are characterized by higher interest rates, poor quality collateral, and less favorable terms in order to compensate for higher credit risk. Many subprime loans were packaged into mortgage-backed securities (MBS) and ultimately defaulted, contributing to the financial crisis of 20072008.

Proponents of subprime lending maintain that the practice extends credit to people who would otherwise not have access to the credit market. Professor Harvey S. Rosen of Princeton University explained, “The main thing that innovations in the mortgage market have done over the past 30 years is to let in the excluded: the young, the discriminated-against, the people without a lot of money in the bank to use for a down payment.”‘…

REACTION

…’The financial crisis of 2007-08, also known as the global financial crisis and 2008 financial crisis, is considered by many economists to have been the worst financial crisis since the Great Depression of the 1930s.

SOLUTION

It threatened the collapse of large financial institutions, which was prevented by the bailout of banks by national governments, but stock markets still dropped worldwide.’…

PROBLEM

…’The emergence of sub-prime loan losses in 2007 began the crisis and exposed other risky loans and over-inflated asset prices. With loan losses mounting and the fall of Lehman Brothers on 15 September 2008, a major panic broke out on the inter-bank loan market. There was the equivalent of a bank run on the shadow banking system, resulting in many large and well established investment and commercial banks in the United States and Europe suffering huge losses and even facing bankruptcy, resulting in massive public financial assistance (government bailouts).’…

Margin Call is a 2011 American independent drama film written and directed by J. C. Chandor. The story takes place over a 36-hour period at a large Wall Street investment bank [Lehman Brothers?] and highlights the initial stages of the financial crisis of 200708.

https://en.wikipedia.org/wiki/Margin_Call_(film)

PROBLEM

…’The core activities of investment banks are subject to regulation and monitoring by central banks and other government institutions – but it has been common practice for investment banks to conduct many of their transactions in ways that do not show up on their conventional balance sheet accounting and so are not visible to regulators or unsophisticated investors. For example, prior to the 2007-2012 financial crisis, investment banks financed mortgages through off-balance sheet (OBS) securitizations (e.g. asset-backed commercial paper programs) and hedged risk through off-balance sheet credit default swaps.’…

…’The volume of transactions in the shadow banking system grew dramatically after the year 2000. Its growth was checked by the 2008 crisis and for a short while it declined in size, both in the US and in the rest of the world. In 2007 the Financial Stability Board estimated the size of the SBS in the U.S. to be around $25 trillion, but by 2011 estimates indicated a decrease to $24 trillion. Globally, a study of the 11 largest national shadow banking systems found that they totaled $50 trillion in 2007, fell to $47 trillion in 2008, but by late 2011 had climbed to $51 trillion, just over their estimated size before the crisis. Overall, the worldwide SBS totaled about $60 trillion as of late 2011.’…

...’The shadow banking system makes up 25 to 30 percent of the total financial system, according to the Financial Stability Board (FSB), a regulatory task force for the world’s group of top 20 economies (G20).’…

…’Like regular banks, shadow banks provide credit and generally increase the liquidity of the financial sector. Yet unlike their more regulated competitors, they lack access to central bank funding or safety nets such as deposit insurance and debt guarantees. In contrast to traditional banks, shadow banks do not take deposits. Instead, they rely on short-term funding provided either by asset-backed commercial paper or by the repo market, in which borrowers in substance offer collateral as security against a cash loan, through the mechanism of selling the security to a lender and agreeing to repurchase it at an agreed time in the future for an agreed price.’…

REACTION

…’The shadow banking system has been implicated as significantly contributing to the global financial crisis of 20072012.’…

…’Economist Paul Krugman described the run on the shadow banking system as the “core of what happened” to cause the crisis.’…

SOLUTION

…’The “too big to fail” theory asserts that certain corporations, and particularly financial institutions, are so large and so interconnected that their failure would be disastrous to the greater economic system, and that they therefore must be supported by government when they face potential failure. The colloquial term “too big to fail” was popularized by U.S. Congressman Stewart McKinney in a 1984 Congressional hearing, discussing the Federal Deposit Insurance Corporation‘s intervention with Continental Illinois. The term had previously been used occasionally in the press.

Proponents of this theory believe that some institutions are so important that they should become recipients of beneficial financial and economic policies from governments or central banks. Some economists such as Paul Krugman hold that economies of scale in banks and in other businesses are worth preserving, so long as they are well regulated in proportion to their economic clout, and therefore that “too big to fail” status can be acceptable. The global economic system must also deal with sovereign states being too big to fail.’

Opponents believe that one of the problems that arises is moral hazard whereby a company that benefits from these protective policies will seek to profit by it, deliberately taking positions (see Asset allocation) that are high-risk high-return, as they are able to leverage these risks based on the policy preference they receive. The term has emerged as prominent in public discourse since the 20072010 global financial crisis.’…

…’In economics, moral hazard occurs when one person takes more risks because someone else bears the burden of those risks.’…

PROBLEM

…’A taxpayer-funded government bailout of financial institutions during the savings and loan crisis may have created a moral hazard and acted as encouragement to lenders to make similar higher risk loans.’…

REACTION

…’For example, with respect to the originators of subprime loans, many may have suspected that the borrowers would not be able to maintain their payments in the long run and that, for this reason, the loans were not going to be worth much. Still, because there were many buyers of these loans (or of pools of these loans) willing to take on that risk, the originators did not concern themselves with the potential long-term consequences of making these loans. After selling the loans, the originators bore none of the risk so there was little to no incentive for the originators to investigate the long-term value of the loans. A party makes a decision about how much risk to take, while another party bears the costs if things go badly, and the party isolated from risk behaves differently from how it would if it were fully exposed to the risk.’…

SOLUTION

…’Failure to regulate the non-depository banking system (also called the shadow banking system) has also been blamed. The non-depository system grew to exceed the size of the regulated depository banking system, but the investment banks, insurers, hedge funds, and money market funds were not subject to the same regulations. Many of these institutions suffered the equivalent of a bank run, with the notable collapses of Lehman Brothers and AIG during September 2008 precipitating a financial crisis and subsequent recession.

The government also repealed or implemented several laws that limited the regulation of the banking industry, such as the repeal of the Glass-Steagall Act and implementation of the Commodity Futures Modernization Act of 2000. The former allowed depository and investment banks to merge while the latter limited the regulation of financial derivatives.’…

…’The Commodity Futures Modernization Act of 2000 exempted derivatives from regulation, supervision, trading on established exchanges, and capital reserve requirements for major participants. Concerns that counterparties to derivative deals would be unable to pay their obligations caused pervasive uncertainty during the crisis.’…

PROBLEM

…’When investment bank Lehman Brothers went bankrupt in September 2008, there was much uncertainty as to which financial firms would be required to honor the CDS contracts on its $600 billion of bonds outstanding.

Economist Joseph Stiglitz summarized how credit default swaps contributed to the systemic meltdown: “With this complicated intertwining of bets of great magnitude, no one could be sure of the financial position of anyone else-or even of one’s own position. Not surprisingly, the credit markets froze.

REACTION

Former President Bill Clinton and former Federal Reserve Chairman Alan Greenspan indicated they did not properly regulate derivatives, including credit default swaps (CDS). A bill (the “Derivatives Markets Transparency and Accountability Act of 2009″) (H.R. 977) was unsuccessfully introduced to further regulate the CDS market and establish a clearinghouse. This bill would provide the authority to suspend CDS trading under certain conditions.

SOLUTION

Author Michael Lewis wrote that CDS and synthetic CDO derivatives enabled speculators to stack bets on the same mortgage bonds and CDO’s. This is analogous to allowing many persons to buy insurance on the same house. Speculators that bought CDS insurance were betting that significant defaults would occur, while the sellers (such as AIG) bet they would not. A theoretically infinite amount could be wagered on the same housing-related securities, provided buyers and sellers of the CDS could be found. He referred to this as a “Doomsday Machine.’…

https://en.wikipedia.org/wiki/Main_Page

THE MAJOR PARADIGM THEY CREATED IS A DEBT BASED ECONOMIC SYSTEM PYRAMID SCHEME WHICH CAN NEVER STAND INDEFINITELY. ONCE IT CRASHES, WHICH IT IS IN THE PROCESS OF DOING NOW WITH FALLING MARKETS, RETAILS SALES, OIL PRICES, RUNAWAY INFLATION, ETC., WE, THE PEOPLE ARE ENSLAVED ABSOLUTELY BY DESIGN, BECAUSE THEIR SOLUTION WILL BE TOTAL FASCISM.

Money As Debt

The Eleventh Marble

http://whatreallyhappened.com/WRHARTICLES/11thmarble.php#axzz3z5p1vU24

NESARA- Restore America – Galactic News

Source: http://nesaranews.blogspot.com/2016/02/the-eminent-collapse-of-global-economy.html

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