Is America About To Go Broke?
Corporate Media Cannot Survive Under Current
Failing Business Model.
Rupert Murdoch: “Internet (as we know it)
Will Soon Be Over”
China Feels Pinch Of US Dollar Trap: Creation Of A Renminbi Bloc
That Is On Par With The Euro
And he causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads: And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name. Here is wisdom. Let him that hath understanding count the number of the beast: for it is the number of a man; and his number is Six hundred threescore and six (Revelation 13:16-18).
Click to see: 03/16/09 Get Ready For A World Currency (Economist; 01/9/88, Vol. 306, pp 9-10)
The Phoenix Dollar Advantage Russia Proposes Creation Of Global Super-Reserve Currency
Is America About To Go
Broke?
May 24, 2009
Is America about to go broke?
By Scott Burns
http://articles.moneycentral.msn.com/RetirementandWills/InvestForRetirement/is-america-about-to-go-broke.aspx
Government obligations for Social Security and Medicare may soon exceed the combined net worth of every household and nonprofit organization in the country. Prices dropped last year. But we still need to invest to protect ourselves from inflation. That's why our retirement-plan investing needs an inflation "tilt." You'll understand why in a few paragraphs. How bad will future inflation be? I don't know. Neither does anyone else. It could be a normal inflation of 3% to 4% a year. It could also be a banana-republic 10% a month. What we know is that all governments make promises they can't fulfill. Our government certainly has. Under both political parties, it has taken promise-making to a high art. This is not hyperbole. The figures can be found in regularly published government reports.
Much worse than you probably think: The figures exist, but they are ignored. News reports regularly inform us of the growing federal deficit, projected at a stunning $1.75 trillion for fiscal 2009 and $1.17 trillion for 2010. But regularly reported, less visible government obligations have been growing much faster. In the four years from January 2004 to January 2008, the Medicare trustees reported that the unfunded liabilities of Social Security and Medicare grew by a stunning $10.4 trillion. The average annual growth topped $2.5 trillion. That was well over the expected formal deficit of $1.75 trillion this year.
In the 2008 trustees' report, the unfunded liabilities of Social Security and Medicare -- promises of future retirement and health care benefits -- total $42.9 trillion. In a few days, we should be able to read the 2009 report. It's a good bet that the unfunded liabilities will show an increase in the new report. Ironically, payroll tax payments are still large enough that the Social Security and Medicare programs don't need every dime. The extra money goes into the program trust funds as Treasury debt. The actual cash is spent elsewhere. Basically, the employment tax has been subsidizing other federal spending. This has been going on since the 1983 "reform" of Social Security, a disaster chaired by Alan Greenspan, later the Federal Reserve chairman.
Today's deficits? That's nothing: Last year's Social Security trustee report estimates that OASDI (Social Security retirement and disability) and HI (hospital insurance), excluding book entry interest for the trust funds, will have more revenue than expenses until 2015. If higher cost assumptions prevail, however, the last year of positive flow will be 2010. That's next year. I am not making this up. It is public record. You can see for yourself by examining table VI.F9 on page 191 of the 2008 trustees' report. When Social Security and Medicare costs exceed their revenues, the Treasury will have to borrow money to cover the shortfalls. When that happens, today's stunning deficits will look small. That's why our future contains inflation, not deflation.
The upside-down nation: There is another way to see how serious our situation is: Compare the unfunded liabilities of Social Security and Medicare with the net worth of every household in America. According to the Federal Reserve flow-of-funds figures for year-end 2007, our collective net worth as consumers was $62.7 trillion. By the end of 2008, the same figure had fallen to $51.5 trillion. Another year of growth for Social Security and Medicare liabilities would bring total unfunded government promises to about $46 trillion. That's nearly 90% of our net worth. If consumer net worth fell an additional $5 trillion -- the same amount it fell in the last three months of 2008 -- we'd be broke. Yes, you read that right. Government obligations for basic programs would exceed the net worth of every household and nonprofit organization in America. We'd be the upside-down nation. The only way out of this is to print more money, inflating the value of assets relative to the amount of debt. Cutting the expense of investing through index funds alone wouldn't solve the inflation problem.
Rupert Murdoch: “Internet Will Soon Be Over”
Rupert Murdoch: “Internet Will Soon Be Over”
Paul Joseph Watson
Prison Planet.com
http://www.infowars.com/rupert-murdoch-internet-will-soon-be-over/
Billionaire media mogul Rupert Murdoch gave a strange response when asked about plans for mainstream news websites to charge for content, declaring, “The current days of the internet will soon be over.” He was making reference to the fact that corporate media websites cannot continue to survive under their current failing business model. The establishment media is dying and advertising revenue has plummeted as people turn to blogs and the alternative media for their news in an environment of corporate lies and spin. This has forced sectors of the corporate media to charge the dwindling number of loyal readers they have left for news content, a practice which is set to become widespread according to Murdoch. This will only send more people over to the alternative media as the old organs of de facto state-controlled propaganda wither and die.
“Asked whether he envisaged fees at his British papers such as the Times, the Sunday Times, the Sun and the News of the World, (Murdoch) replied: “We’re absolutely looking at that,” reports the Guardian. “Taking questions on a conference call with reporters and analysts, he said that moves could begin “within the next 12 months‚” adding: “The current days of the internet will soon be over.” Murdoch’s newspapers and TV networks, which include Fox News and the Asian Star Network, have seen profits plummet from $216m to just $7m year-on-year. MySpace.com is also floundering despite a recent move to replace the company’s entire management staff. It was all but over for the Boston Globe this week, following a threat to close the 137-year-old publication after net losses of $85 million this year alone. Only a last minute cost-cutting agreement on behalf of its owner, The New York Times Company, and The Boston Newspaper Guild, saved the newspaper.
But it’s not just establishment newspapers that are struggling to survive - social networking websites like Twitter and corporate online video giant You Tube are also deep in the red. Apparently, paying out millions in server fees for half the population of the planet to watch clips of cute puppies isn’t a sustainable business model. This is why You Tube is being forced to pursue lucrative partnerships with giant production studios and broadcasters, at the expense of user generated content which has been relegated to a sub-section of its website, taking the “You” out of You Tube altogether. Content that may be deemed harmful to You Tube’s corporate agenda and its multi-million dollar partnership deals is being systematically erased from You Tube’s website under the pretext of flimsy copyright infringement claims.
The jig is up for the corporate media. If they continue to allow free access to their content they will go out of business because there’s not enough advertising revenue coming in. Whereas, if they charge for content they will lose a huge chunk of their audience and their influence in shaping the news agenda will wane completely. This is the price the corporate media has paid for lying, spinning and obfuscating on behalf of the virulently corrupt power elite and expecting the population to eat it up without question. The corporate media monopoly has terminal cancer and they are losing their power, which is why they are aggressively supporting moves to phase out the old Internet altogether and replace it with “Internet 2,” a highly regulated and controlled electronic Berlin wall, where alternative voices will be silenced and giant corporate propaganda organs will dominate once again. This is what Murdoch is really getting at when he assures us that, “The Internet will soon be over.”
Rising Unemployment Raises Threat Of Social Crisis: World Bank
Sun May 24, 2009
Rising unemployment raises threat of social crisis: World Bank
by Jason Webb
http://www.reuters.com/article/topNews/idUSTRE54N0JV20090524?feedType=RSS&feedName=topNews&rpc=22&sp=true
MADRID (Reuters) - World economic recovery will be slow and rising unemployment could bring the threat of social crisis and protectionism, World Bank President Robert Zoellick said in an interview with Spanish Sunday newspaper El Pais. "What began as a great financial crisis and became a great economic crisis is now becoming a great crisis of unemployment, and if we don't take measures there is a risk of a great human and social crisis, with major political implications," he said. "That's a good breeding ground for populist, protectionist policies," he added. "The finance ministers of the G7 and the G20 are displaying a certain relief because the contraction has slowed. Although we could still have low or negative growth, the situation is less bad," he said. "But economists and industrialists are conscious that the recovery will be slow coming and weaker than expected."
Dangers remain in the U.S. financial system and in vulnerable emerging markets, Zoellick said. "Maybe the key thing that has to be cleaned up is the financial system. The USA has taken steps in the right direction, but there are still banks with serious difficulties related to consumer finance, credit cards and real estate. "On top of that, the United States depends more than Europe on the mortgage securitization market, and that market has yet to recover," he said. He said there were risks in Africa, parts of Latin America and in Eastern Europe. "China could surprise on the upside, it has obtained good results from its stimulus plan. For countries like Mexico and Brazil, the main threat is losing access to finance," Zoellick said.
Chinese Economist: Yuan Should Be Regional Currency To Rival Dollar
China At Risk Since The U.S. Is Undermining The Dollar
May 22, 2009
Chinese Economist: Yuan Should Be Regional Currency to Rival Dollar
China at risk since the U.S. is undermining the dollar, says Tsinghua professor
By Jame DiBiasio Asian Investor
http://www.businessweek.com/globalbiz/content/may2009/gb20090522_519171.htm
Yu Qiao, an economics professor at Tsinghua University in Beijing, says the best way for China to rescue itself from a dollar trap is to gradually transform the renminbi into a regional currency on par with the dollar and the euro. Speaking yesterday at Asian Investor's fourth annual investment summit in Hong Kong, Yu also called for the creation of a "crisis relief facility" to ease China and America out of the current financial and economic crisis. Yu says the establishment should then break-out of the gold standard taught by the world that prosperity is dependent upon global economic integration; that globalization in turn is dependent upon a universal money; and that such a currency based on sovereign fiat, is, unstable.
The establishment of the Bretton Woods system, based on the dollar, set the stage for globalization after World War II, and provided the framework for China to integrate and become the world's manufacturing centre. But the financial crisis has highlighted how fragile globalization can be. China can no longer be a free rider in this world system, Yu says. China, Japan and other Asian countries face a dilemma—how to safeguard the real value of their financial assets while helping the world economy recover. Ultimately Asians need to extend their economic boundaries and realize their full growth potential, while addressing the current macroeconomic imbalances.
Of the roughly $10 trillion of outstanding U.S. debt, East Asia holds about 25% of the notional outstanding and perhaps as much as a third in total, if you include indirect holdings. China alone has an exposure of $1.2 trillion, directly and indirectly, Yu says. The U.S. is addressing the current crisis through fiscal and monetary means, the result of which is to blow out its debt-to-GDP ratio in excess of 100%, a side effect of which is a bubble in Treasury securities. However the Obama administration's fiscal projects are for social programmes, not for investment, which doesn't address the long-term issue of consumer borrowing. To this end, the U.S. has injected $2 trillion, either through stimulus packages or via the Federal Reserve's balance sheet, and the Fed is buying long-term Treasury bonds to help finance it.
Yu notes that Fed chairman Ben Bernanke has long made clear his willingness to inflate his way out of crisis. "The Fed is subordinating the stability of the dollar to the national interest," Yu says. This puts the international monetary system at risk and China in danger, as its portfolio of reserves risks devaluation. This is where Yu's idea for a central relief facility (CRF) comes into play. He says the ideal, simple solution is to create a mechanism in which Asian reserves engage in a debt-for-equity swap and invest in American industry, which is so desperate for capital. Equity claims in U.S. infrastructure projects, for example, would provide a hedge against inflation. And American industry, including banks, healthcare and environmental technology companies, find a new source of finance.
To make this work, Yu says Asian central banks would insist their equity investments were insured against loss, as they remain dedicated to preserving their capital. He says this could work if a syndicate of insurance companies provided cover, with the U.S. Treasury as the guarantor. Economically it's elegant; politically it's unlikely, Yu admits. But the fact that such ideas are being aired demonstrates how decision makers in Beijing and elsewhere are thinking. In the long run, Asia needs to wean itself off dollar dependence. Yu says one idea, recently floated, is using the IMF's special drawing rights. But this is impractical: SDRs are accounting units using a basket of currencies, and there's no way to calculate their supply or their price against other currencies outside of that framework. Although the use of SDRs may rise for accounting purposes, Yu likens these to Esperanto, the global language that nobody actually uses.
Another option is to revive the gold standard. Again, it's not feasible. Even if major economies were ready to surrender their dollars, returning to gold would disrupt all asset prices. There's only about 1 billion ounces of gold in the world, versus $30 trillion of currencies. So you can quickly see how much a unit of gold, or a dollar, would be. Moreover, Europe and America together own 65% of the world's gold reserves, versus only 7% for Asia, including Japan. So returning to the gold standard would impoverish the East. This leaves only what Yu calls triangularity: the creation of a renminbi bloc that is on par with the euro. The dollar would likely remain the top currency but the euro and RMB would also be significant global units, with sterling and the yen in supporting roles.
The current crisis has prompted Beijing to change utterly the way it manages its monetary policy, forcing it to take a more active role in cross-border flows. The People's Bank of China has signed six currency swap arrangements with other monetary authorities, to encourage the RMB's role in trade, and commenced trade settlements at a number of Chinese cities on RMB terms. It is also enlarging the share of loans to African governments or through the Asian Development Bank made in renminbi. Longer term, however, the core of a regional RMB bloc must include the integration of it with the Hong Kong and New Taiwan dollars, Yu says. He says within 30 years there could be "one currency, two versions" for Hong Kong, in which the Hong Kong dollar serves as the international avatar of the renminbi. The Taiwan dollar, meanwhile, would be tied to the RMB via a currency board.
Achieving this requires China to develop its capital markets so they are capable of recycling its outstanding overseas RMB, which implies full capital and currency convertibility and a large portion of foreign capital moving freely throughout Chinese markets. Another condition is enhancing the dynamism of China's financial institutions and regulatory bodies, and the development of a framework that Yu describes as enforceable and binding—which sounds a lot like the rule of law, although Yu does not use that phrase. The bottom line is that the renminbi must evolve into a regional currency, one of three main global units, if China is to continue to benefit from, and encourage, globalization. This may not offer much solace to Asian investors currently stuck in a dollar trap, but it does provide a roadmap to a potentially more stable currency framework for China and the world.
The Final Plan
The free Internet is an avenue the global kingdom of the anti-Christ must shut down. Freedom of speech does not allow corrupt governments to proceeded with their anti-Christian plans. These government's plans are exposed and put into check by the citizenry. The excuse that the Internet is the playground of terrorists and predators will be used to shut freedom of speech down on the Internet. This is a poor excuse for several reason. Any parent can install filtering software to block predator's sites from reaching their children. Parents who do not use monitoring software to monitor their children's e-mail, IM, and communication applications on the Internet are not watching out for their children like they should. Parents teach their children not to give strangers their address and phone number when outside the home; the same is true for parents concerning the Internet. This is about the best excuse the globalists can come up with and it is rather lame.
Secondly, federal investigators should want freedom of speech on the Internet, even for terrorists and predators. They can monitor the evil terrorists and perverted predators and hunt them down rather easily. Find what IP address they are using, what web server, e-mail or IM server, and registered domain name, social network site, and e-mail account they are using. They must pay someone for these service. They pay some ISP for access to the Internet. They must use checks, banks, and credit cards to pay. These evil people can be tagged, monitored, hunted down, and arrested. The Internet is a boon to investigators and therefore terrorists and predators using the Internet for their evil practices is not a good excuse to shutdown free speech. But alas, the anti-Christ cannot prosper with freedom of speech and on such a global scale.
The anti-Christ’s plan is to divide the world into ten kingdoms, all using the same monetary system and one religion (see Ten Worldwide Super States: Playing Monopoly* with the devil). The ten-king nations will be forcefully democratic with rotating presidencies; the European Union (EU) is the model. When the time for the anti-Christ arrives, he will be one of these ten kings, according to Revelation 17:10-11. The kings only receive power to grasp control for the anti-Christ at the last hour. The rotating presidencies of these ten super-states will furnish the kings.
How will this happen? The EU has paved the way. The super-states will be divided into ten economic and political powers. They are the 1. EU, 2. North America (Canada, America, Mexico, Central America, and outlaying islands), 3. South America, 4. Russia, 5. Central Asia (The Islamic Republics), 6. East Asia (China, Mongolia, Japan, Taiwan, Korea, etc.), 7. Oceania (Australia, Malaysia, Indonesia, New Zealand, and surrounding islands), 8. Southeast Asia (India to Viet Nam), 9. North Africa/Middle-East (Saudi Arabia to Western Sahara, etc.), and 10. Africa (Sub-Sahara, Madagascar). These divisions could be debated. For example, India would go well with Oceania since many Indians speak English and would fare well with Australia. Time will tell.
North America has begun the process. NAFTA and CAFTA are the start. A North American Super-Highway from the mid-southwestern coast of Mexico to Winnipeg, Canada--through the heartland of America, has begun. The American Government is sold out on this global plan. They will deceive the "American People" in order to put the anti-Christ's plan into place. Hence, Members of Congress do not do their jobs and read bills before signing them because they were told to sign it or else.
And the ten horns which thou sawest are ten kings, which have received no kingdom as yet; buy receive power as kings one hour with the beast. These have one mind, and shall give their power and strength unto the beast. (Rev.17:12-13)
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