2013 – The Year When SHTF – Economic Meltdown Inevitable This Year

InvestmentWatch

This is why the economic crash is inevitable and only months away.

In 1970, after a WW2 boom, the PEOPLE of the “free” world only buy that much, while the companies produced double than what people could ever buy.

Instead a 50% unemployment (read world wide anarchy) the chosed the safer and better way : LOAN money to people, at very low interest.

A great boom followed : the 1974-1987 boom.The boom was sustained by a healthy 4-5% natural growth, “delivering” more babies, so more workers, so more consumers.

Up until 1987-1990, the natural growth not only stagnated, but became negative.The US and Western EU countries become weary of the inevitable.With all the laws encouraging birth, they couldn’t do shit.

They decided to open the borders to immigration, but keep it inbetween 4-5%.What they realized after about 5 years (somewhere areound 1995-1996), is that the immigrants, instead to work for native salaries, they accepted the jobs that were offered by the greedy emplyees : 30% to 50% less.

In 5-6 years after the “smart” 1990 immigration opening, there were about 10% natives without work thaat were replaced by a number of immigrants working for 50% less and spending accordingly.

This shit was all over US and Western Europe, hitting a point were not only didn’t orked anymore, but was unhealthy, threatening more unemplyoment.

The solution was, for US mainly, to move companies in China, and for Western Europe to move them in Eastern Europe.This was mainly in between 1990-2000.

This solution was great for Americans and western Europeans : their companies paid 70%-90% less salaries, making more money, giving those money to the banks for 1-3% profit, the banks gave those money to the governments in order for those governments to PAY social, a social big enough to keep people of the streets.

It is easily understandable that the money made in poor eastern European countries and China, were enough to keep social payment longer and higher.

However, this only worked until eastern European countries, faced with rebellion, HAD TO increase the salaries.The foreign companies that moved to India, Phillipines, Bangladesh and other poor, while secure countries with generally seni-dictatorial governments. This took place in between 2000-2007.

The loan industry, started in early 1970′s, kept growing until reached a peak in 2005-2007.The borrowed money were so many, that they surpassed not only the GDP of western world, but also become UNABLE to be paid.The only way to keep western world afloat was to loan MORE MONEY (only on paper lol) while implementing heavy burdens to the people.

At this point, most of the people in western world are either unemployed, either on social, either working for less.
While in 1970′s, the solution was immigration paired with cheap loans, this is impossible today.
While in the 1990′s, moving jobs to eastern EU and China was the solution, this is not only impossible today, but the jobs were ALREADY moved to poorer countries.