Originally published September 18 2008
Global Financial Markets in Cascading Meltdown as Bankrupt U.S. Government Bleeds Cash
by Mike Adams, the Health Ranger, NaturalNews Editor
(NaturalNews) The dire financial situation unfolding in our world today directly impacts you. The safety of your money affects your ability to afford organic foods, nutritional supplements and "alternative" health care services that you have to pay out of pocket. There are also huge implications for Big Pharma and the continued drug industry due to cascading bankruptcies that are about to start impacting city, state and national governments. That's why we're covering this financial topic so closely on NaturalNews.com.
Just today, the Fed scraped together a desperate, last-minute agreement to provide a jaw-dropping $85 billion in funding to save AIG (the insurance firm). Why did they do this? Because if they hadn't stepped in to save AIG, the entire global financial system would have collapsed within days.
That's no exaggeration. The Fed was the bailout funder of last resort, and it has just barely averted a global financial disaster so large, nothing in the history of human civilization even compares. This is what happens when $445 trillion in leveraged financial instruments start to unravel...
But the rescue was done by creating money from nothing and injecting it into the system. That $85 billion, it turns out, dilutes the existing money supply, making your dollars increasingly worthless, and in the months ahead, everything you buy is going to get more expensive: Food, supplements, gasoline, rent, health care services and much more.
Bailing out the rich while stealing from the working classThe Fed, in essence, is stealing billions of dollars from the American people and using it to bail out rich bankers and powerful CEOs of huge financial institutions. That $85 billion is on top of another $70 billion the Fed created just two days ago. It totals $155 billion, or over $500 for every man, woman and child in America. Think about it: The Fed just reached into your pocket and stole $500 worth of purchasing power from you, and if you have a family of four, they just stole $2,000 from you.
And yet that's only how much they stole in the last two days! Add in all the money creation cash injections in just the last few months, and you get a HUGE number... $200 billion in March, $30 billion to bail our Bear Stearns, $70 billion to prevent a stock market plunge... the numbers just keep mounting. The Federal Reserve is literally printing its way to YOUR bankruptcy. To prevent the failure of wealthy financial institutions, it has decided to decimate the life savings of the American people.
The way out? Hyperinflation of the currencyIt's no surprise, of course: Every nation throughout history has done the same. When push comes to shove, governments always sacrifice their people to save their wealthy elite, and the U.S. is no different.
This is a "Once-in-a-century type of event," says former Federal Reserve Chairman Alan Greenspan said on ABC television. "There's no question that this is in the process of outstripping anything I've seen, and it still is not resolved and it still has a way to go," he added.
These words, remember, are from the king of understatement. When the dot-com crash took place, he famously called it an era of "irrational exuberance." Now he's calling this a once-in-a-century event. That means this is bigger than the '87 "black Monday" crash, and possibly bigger than the Great Depression in '29.
Who will bail out the U.S. government?As banks are failing, the FDIC is bailing them out. The FDIC, of course, insures banks against catastrophic loss. Thanks to a string of recent bank failures, the FDIC is now down to its last $43 billion in reserves. Sounds like a lot, right? Well consider this...
Washington Mutual looks to be headed towards outright bankruptcy. It's a huge bank, and if it fails, it will need $180 billion to cover its depositors. That's $137 billion MORE than the FDIC has.
In other words, if Washington Mutual fails, the FDIC is instantly bankrupt.
So what happens when the insurer itself goes bankrupt? The U.S. government steps in, of course. Only there's a problem here too: The U.S. government is already broke! It's $9 trillion in debt right now, nearly double what it was four years ago. That's nine trillion with a "T" -- it's a whole lot of money, even by global finance measures.
The government is so broke that it's actually borrowing money from other countries every single day just to keep its doors open. Day-to-day operations of the U.S. government, in other words, are not funded by U.S. taxpayers... they're funded by borrowing money from overseas investors! And those investors are increasingly realizing they're fools to loan yet more money to a nation that's already $9 trillion in the hole.
The day is coming when foreign nations and central banks end their welfare support for the United States of America, and when that happens, all bets are off... literally. The U.S. government will be forced to shut down within days. UNLESS, of course, it finds a way to steal money from the People and continue funding its own operations.
How the U.S. government plans to steal every last dollar from youIt just so happens there's a very clever way for the U.S. government to transfer virtually all the wealth from the hands of its citizens into the pocket of the U.S. Treasury. It requires no direct theft, no taxation and no new laws. In fact, it can be done quietly, silently, and without any warning. In fact, it's already started to happen.
What is it?
The runaway creation of new money. Fire up the printing presses in Washington, Chief! Here comes a trillion dollars in fiat currency!
Yes, ultimately, the United States government will have no choice but to print its way out of debt, and it will do it by creating so much new money out of thin air that your own money becomes virtually worthless. Sure, you'll still have your $5,000 in the bank; it just won't be worth $5,000 anymore.
Today, you can use $5,000 to buy a motorcycle. After the U.S. government hyperinflation bailout, you might be lucky to be able to buy a bicycle with the same $5,000. If things get really bad, you'll be lucky to trade it for a skateboard.
So what can you do to protect yourself from all this? For one, don't leave your dollars hanging around as dollars. Right now, you can convert silly paper dollars into REAL things like land, gold, food or even shares in selected companies.
Listen to my podcast to hear yet more analysis on what's happening and how to protect yourself: http://www.naturalnews.com/podcasts/Financia...
Lastly, I highly recommend you subscribe to Stephen Leeb's The Complete Investor. This is where I get grounded, yet uncensored financial information that's been spot on in its predictions about global finance events.
Everybody in my family subscribes to this newsletter. It shows you exactly where to put your money (savings, IRAs, etc.) where you'll be protected against hyperinflation, bank failures and economic hard times.
Anyone concerned about what's coming needs this information. Click here to subscribe now.
Also, stay tuned to NaturalNews, where I'll be covering these financial events in order to help NN readers be more confident and prepared for what's coming. You don't have to be afraid. (I'm not.) All you have to be is informed and prepared, and then you can face the future with a sense of confidence and optimism.
Don't be afraid, be informed. And certainly don't leave your money sitting around in U.S. dollar-denominated bank accounts. In this global meltdown environment, that's equivalent to financial suicide.
Those who survive these financial hard times will be those who are best informed (and who ignore all the nonsense from the mainstream media).
You may also want to check out my upcoming Health Ranger LIVE Audio Event where I reveal protection and preparedness strategies. That starts next Wed., September 24th, at 7pm. Click here to learn more about this LIVE audio event.
But even if you can't attend any of these events, or you don't want to read the Leeb newsletter, just remember this one principle: Convert your dollars to something REAL, and you'll be better off. Land, food, skills, a roof over your head, a vehicle, etc. Get OUT of debt. It's better to get completely out of debt rather than have dollars sitting in the bank while you still have a mortgage on your home. Learn more in my LIVE audio event, above.
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