Originally published September 27 2008
Financial Bailout will Lead to Demise of the Dollar as Hyperinflation Saps Savings
by Mike Adams, the Health Ranger, NaturalNews Editor
(NaturalNews) This is an important analysis and update on the financial bailout situation. It was posted first to our Mindful Wealth Email List (see below).
ANALYSIS and PREDICTIONS*:
* See financial disclaimer at the end of this article...
1. The financial bailout will be approved
Lawmakers are privately being warned that if they do not pass this bill, the entire global financial system will collapse. Publicly, they only say we "might have a recession," but behind closed doors, they realize the whole system is at stake. That's why a bailout bill will ultimately be approved.
2. Temporary euphoria will spike the stock market.
You'll likely see this on Monday: A declaration that "the problem has been solved!" and a huge spike in stock prices. For a day or two, everyone will talk about how great it is that we've all been saved, and what wonderful leadership we have in Washington, and look how the stock market is proving them right!
This is all, of course, a smokescreen. It will, however, be a great opportunity to buy the dips in gold stocks, gold mining stocks and other equities that run counter to stock market euphoria.
3. Foreign central banks will reassess their purchasing of U.S. debt.
With the U.S. taking on another $1 trillion in debt, foreign central banks will realize the game's over, and the U.S. is never going to be able to pay back its IOUs. As a result, many foreign banks will either stop buying U.S. debt, or even start trying to sell off the U.S. debt they already carry.
The result of this is increased costs of borrowing for the U.S. There is a small chance that there could be a panicked sell-off of U.S. debt, but I put this chance at only 10% or so. However, this is an important article worth considering on this point: http://www.bloomberg.com/apps/news?pid=newsa...
Regardless of what foreign banks do, it will suddenly become MORE expensive for the U.S. to borrow money. Imagine the country paying credit card interest rates just to borrow money that it's using to pay the INTEREST on the debt it already owes to other countries!
4. Following the false euphoria, investors will sober up as they learn about the actions of central banks, and the stock market will begin to teeter, then head downward. Yet more banks will fail (Wachovia now looks dangerously close...).
Yet more money will be created out of thin air to bail them out, and every time another bank is bialed out using new (created) money, foreign central banks get closer and closer to pulling the trigger on a fire sale of U.S. debt.
5. The Christmas shopping season will be sharply down
With consumers increasingly concerned about their finances (and many losing their jobs), the upcoming Christmas shopping season will be quite bad. Expect to see massive discounting across most retailers. Newspapers will report how terrible the Christmas season is, and even retailers like Wal-Mart will report seasonal sales dropping compared to 2007.
6. A wave of bankruptcies will sweep through retailers
Following the poor Christmas performance, a wave of bankruptcies will sweep through mass-market retailers.
This wave of retailer bankruptcies will spell yet more financial chaos for the banks already walking on thin ice. Expect to see yet more financial institution failures announced in January, 2009.
Why? Because as retailers fail, their landlords will be left holding devalued commercial real estate! It's like the housing bubble, but now in the commercial markets, all over again. And guess who holds the mortgages on all the commercial retail space? Banks, of course. The same banks that are already leveraged beyond all reason.
7. The Fed cranks up the printing presses
All this time, between now and January, 2009, the cost for the U.S. federal government to borrow money will steadily rise. As the cost to borrow money becomes too much to bear, the U.S. government (in conspiracy with the Fed) will fire up the printing presses (metaphorically speaking, of course) and start creating hundreds of billions of dollars of fictitious money.
If you or I did this, we'd be arrested for counterfeiting, but when the Fed does it, it's somehow legal. So instead of taking money from foreign central banks (which will increasingly refuse to loan money to the U.S.), the government will start taking the money from YOU.
This could start happening in early 2009, or depending on events, the crooks in Washington might be able to delay this for a few months (or even a couple of years), but this looks like the most likely outcome.
What it's all REALLY about...
In all, this grand financial bailout is not about bailing you out, it's about ripping you off. It's all about stealing the savings of hard-working people like you and me, and transferring that money to the government where it's redirected into the pockets of criminal bankers who fettered away all that cash over the last twenty years (and now want us to pay for it).
Thus will begin the runaway hyperinflation of the U.S. dollar, and the draining of your savings.
The key tipping point here will be when foreign banks stop buying U.S. debt or, just as dangerously, when foreign banks start SELLING OFF U.S. debt.
Either one will trigger a landslide rush to dump U.S. debt, flooding the market with useless paper that no one wants to buy.
Germany, China and many other countries are already calling for an end to the American Empire (see http://www.reuters.com/article/newsOne/idUST... ).
Sadly, China actually has a way to accomplish that end. All they have to do, right now, is start a fire sale of U.S. debt, and the American empire crumbles within days.
This is what happens when you're a debtor nation. You give up control and power to those who own your debt. As the U.S. claimed to be "fighting for freedom" in Iraq and the Middle East, it was actually imprisoning its own citizens in a matrix of never-ending debt, handing over the keys of control to China, Japan and Middle Eastern nations who now decide the fate of this country.
There is no way out of this financial mess that does not involve depleting the savings of American citizens. Your government is not going to BAIL you out; it's going to SELL you out as it moves to protect itself and its corporate buddies.
Stay informed to protect yourself
Check out my LIVE financial preparedness event: http://www.truthpublishing.com/ProductDetail...
You may also wish to subscribe to my Mindful Wealth Email List which discusses strategies for protecting your wealth from the coming financial tsunami:
http://www.naturalnews.com/MindfulWealthRegi...
Also, now is a good time to find innovative ways to earn more money, but only those ways that don't require large capital investment up front. If you can start bringing in some extra cash as a buffer -- and then learn how to protect it from hyperinflation risk -- you'll be way ahead of the crowd. I offer lots of business ideas and wealth attraction strategies on my Mindful Wealth Email List (above).
There's good news to report, too...
Want to know the good news in all this? All the unindicted criminals working for the FDA, FTC, USDA, DEA and other organizations are all one paycheck away from complete disloyalty to their employer. Soon, their employer (the government) will be broke.
We may very well witness the rebooting (or at least the radical shrinking) of this system of evil, brought down by its own excesses; its crimes; its greed and its arrogance.
I can't predict exactly when, or exactly how this is all going to happen. I just know it's coming. It's inevitable. The American empire was a fascinating experiment in the history of nations, and it is an experiment that is now approaching its final curtain. The conclusion? Democracies don't work when you allow power to be centralized in the hands of the greedy corporations (and when half the citizens are drugged up on medications).
We can do better. And soon, friends, we will have the chance to create something better.
Let's make this world a better place for future generations
Life will go on after the United States of America falls from its throne. It is important that we all WATCH and learn from these present mistakes on the money supply, fractional reserve banking, executive powers, military imperialism, corporate-sponsored lobbyists, and even disease-based health care policies that encourage people to stay sick. In a NEW society, we must have better solutions, such as:
• Instant Runoff Voting (http://en.wikipedia.org/wiki/Instant-runoff_...)
• Abolishing Congress! There is no need for representative government in the age of the Internet. Direct Democracy works better (http://en.wikipedia.org/wiki/Direct_democrac...)
• The ending of military imperialism and illegal interventions in foreign nations
• A fair, simple tax that's easy to calculate and easy to pay
• A health care system based on health, not disease profits
• The ending of intellectual property on genes, seeds and medicines
• The decentralization of media power and control
• The separation of Industry and State (separate corporations from the government)
• A new focus on investing in education and health
• A reestablishment of personal liberties and the power of the People (government should serve the people, not enslave them)
• Returning the money supply to the People (abolish the Fed, end fractional-reserve banking)
• Freedom of speech for health supplements, herbs and natural medicine
• The ending of all advertising of junk foods, processed foods and sodas (and a ban on DTC drug advertising)
Soon, we will have our opportunity to stand up and help construct a new society. It is crucial that the People be in charge of this process, not the Corporations. If the Corporations run the Next Society, we will be enslaved by them. That's why YOUR involvement in the creation of the Next Society is so important.
Until then, take care of your health. You'll need to be up to the task!
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