Amero Update: Global Financial System Of The Anti-Christ

2nd Wave Of The Financial Tsunami

Bankruptcy Of U.S. Now Certain

And he doeth great wonders, so that he maketh fire come down from heaven on the earth in the sight of men, And deceiveth them that dwell on the earth by the means of those miracles which he had power to do in the sight of the beast; saying to them that dwell on the earth, that they should make an image to the beast, which had the wound by a sword, and did live. And he had power to give life unto the image of the beast, that the image of the beast should both speak, and cause that as many as would not worship the image of the beast should be killed. 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 (Rev. 13:13-18).

Bankruptcy Of U.S. Now Certain

Dec. 11, 2009

Bankruptcy of U.S. now certain

By Porter Stansberry

WorldNetDaily

http://www.wnd.com/index.php?fa=PAGE.view&pageId=118727

     It's one of those numbers that's so unbelievable you have to actually think about it for a while...

     Within the next 12 months, the U.S. Treasury will have to refinance $2 trillion in short-term debt. And that's not counting any additional deficit spending, which is estimated to be around $1.5 trillion. Put the two numbers together. Then ask yourself, how in the world can the Treasury borrow $3.5 trillion in only one year? That's an amount equal to nearly 30 percent of our entire GDP. And we're the world's biggest economy. Where will the money come from?

     How did we end up with so much short-term debt? Like most entities that have far too much debt – whether subprime borrowers, GM, Fannie, or GE – the U.S. Treasury has tried to minimize its interest burden by borrowing for short durations and then "rolling over" the loans when they come due. As they say on Wall Street, "a rolling debt collects no moss."

     What they mean is, as long as you can extend the debt, you have no problem. Unfortunately, that leads folks to take on ever greater amounts of debt, at ever shorter durations, at ever lower interest rates. Sooner or later, the creditors wake up and ask themselves: What are the chances I will ever actually be repaid? And that's when the trouble starts. Interest rates go up dramatically. Funding costs soar. The party is over. Bankruptcy is next.

     When governments go bankrupt, it's called a "default." Currency speculators figured out how to accurately predict when a country would default. Two well-known economists – Alan Greenspan and Pablo Guidotti – published the secret formula in a 1999 academic paper. The formula is called the Greenspan-Guidotti rule.

     The rule states: To avoid a default, countries should maintain hard currency reserves equal to at least 100 percent of their short-term foreign debt maturities. The world's largest money-management firm, PIMCO, explains the rule this way: "The minimum benchmark of reserves equal to at least 100 percent of short-term external debt is known as the Greenspan-Guidotti rule. Greenspan-Guidotti is perhaps the single concept of reserve adequacy that has the most adherents and empirical support."

     The principle behind the rule is simple: If you can't pay off all of your foreign debts in the next 12 months, you're a terrible credit risk. Speculators are going to target your bonds and your currency, making it impossible to refinance your debts. A default is assured. So how does America rank on the Greenspan-Guidotti scale? It's a guaranteed default.

     The U.S. holds gold, oil, and foreign currency in reserve. It has 8,133.5 metric tons of gold (it is the world's largest holder). At current dollar values, it's worth around $300 billion. The U.S. strategic petroleum reserve shows a current total position of 725 million barrels. At current dollar prices, that's roughly $58 billion worth of oil. And according to the IMF, the U.S. has $136 billion in foreign currency reserves. So altogether, that's around $500 billion of reserves. Our short-term foreign debts are far bigger.

According to the U.S. Treasury, $2 trillion worth of debt will mature in the next 12 months. So looking only at short-term debt, we know the Treasury will have to finance at least $2 trillion worth of maturing debt in the next 12 months. That might not cause a crisis if we were still funding our national debt internally. But since 1985, we've been a net debtor to the world. Today, foreigners own 44 percent of all our debts, which means we owe foreign creditors at least $880 billion in the next 12 months – an amount far larger than our reserves.

     Keep in mind, this only covers our existing debts. The Office of Management and Budget is predicting a $1.5 trillion budget deficit over the next year. That puts our total funding requirements on the order of $3.5 trillion over the next 12 months. So, where will the money come from? Total domestic savings in the U.S. are only around $600 billion annually. Even if we all put every penny of our savings into U.S. Treasury debt, we're still going to come up nearly $3 trillion short. That's an annual funding requirement equal to roughly 40 percent of GDP.

     Where is the money going to come from? From our foreign creditors? Not according to Greenspan-Guidotti. And not according to the Indian or Russian central banks, which have stopped buying Treasury bills and begun to buy enormous amounts of gold. The Indians recently bought 200 metric tons. Sources in Russia say the central bank there will double its gold reserves. So where will the money come from? The printing press. The Federal Reserve has already monetized nearly $2 trillion worth of Treasury debt and mortgage debt. This weakens the value of the dollar and devalues our existing Treasury bonds. Sooner or later, our creditors will face a stark choice: Hold our bonds and continue to see the value diminish slowly, or try to escape to gold and see the value of their U.S. bonds plummet.

     One thing they're not going to do is buy more of our debt. Which central banks will abandon the dollar next? Brazil, Korea and Chile. These are the three largest central banks that own the least amount of gold. None owns even 1 percent of its total reserves in gold. All of this is going to lead to a severe devaluation of the U.S. Dollar....

Red Alert: The Second Wave of The Financial Tsunami

Nov. 22, 2009

Red Alert: The Second Wave of The Financial Tsunami

by Matthias Chang

GlobalResearch.ca

http://www.globalresearch.ca/index.php?context=va&aid=16218

The Prelude to the End Game

     The US economy will be spiraling out of control in the coming months and will reach critical point by the end of the 1st quarter 2010 and implode by the 2nd quarter. The massive US$ trillions of dollars stimulus has failed to turn the economy around. The massive blood transfusion may have kept the patient alive, but there are numerous signs of multi-organ failure.

     There will be another wave of foreclosures of residential and more importantly commercial properties by end December and early 2010. And the foreclosed properties in 2009 will lead to depressed prices once they come through the pipeline. Home and commercial property values will plunge. Banks’ balance sheets will turn ugly and whatever “record profits” in the last two quarters of 2009 will not cover the additional red ink.

     Given the above situation, will the Fed continue to buy mortgage-backed securities to prop up the markets? The Fed has already spent trillions buying Fannie Mae and Freddie Mac mortgages with no potential substitute buyer in sight. Therefore, the Fed’s balance sheet is as toxic as the “too big to fail” banks that it rescued.

     In the circumstances, it makes no sense for anyone to assert that the worst is over and that the global economy is on the road to recovery. And the surest sign that all is not well with the big banks is the recent speech by the President of the Federal Reserve Bank of New York, William Dudley at Princeton, New Jersey when he said that the Fed would curtail the risk of future liquidity crisis by providing a “backstop” to solvent firms with sufficient collateral.

     This warning and assurance deserves further consideration. Firstly, it is a contradiction to state that a solvent firm with sufficient collateral would in fact encounter a liquidity crisis to warrant the need for a fall back on the Fed. It is in fact an admission that banks are not sufficiently capitalized and when the second wave of the tsunami hits them again, confidence will be sorely lacking.

     Dudley actually said that, “the central bank could commit to being the lender of last resort... [and this would reduce] the risk of panics sparked by uncertainty among lenders about what other creditors think.” To put it bluntly what he is saying is that the Fed will endeavor to avoid the repeat of the collapse of Bear Stearns, Lehman Bros and AIG. It is also an indication that the remaining big banks are in trouble.

     It is interesting to note that a Bloomberg report in early November revealed that Citigroup Inc and JP Morgan Chase have been hoarding cash. The former has almost doubled its cash holdings to US$244.2 billion. In the case of the latter, the cash hoard amounted to US$453.6 billion. Yet, given this hoarding by the leading banks, the New York Federal Reserve Bank had to reassure the financial community that it is ready to inject massive liquidity to prop up the system. It should come as no surprise that the value of the dollar is heading south.

     When currencies are being debased, volatility in the stock market increases. But the gains are not worth the risks and if anyone is still in the market, they will be wiped out by the 1st quarter of 2010. The S&P may have shot up since the beginning of the year by over 25 per cent but it has been out-performed by gold. The gains have also lagged behind the official US inflation rate. It has in fact delivered a total return after inflation of approximately minus 25 per cent. When Meredith Whitney remarked that, “I don’t know what’s going on in the market right now, because it makes no sense to me,” it is time to get out of the market fast.

     In a report to its clients, Société Générale warned that public debt would be massive in the next two years – 105 per cent of GDP in the UK, 125 per cent in the US and in Europe and 270 per cent in Japan. Global debt would reach US$45 trillion. At some point in time, all these debts must be repaid. How will these debts be repaid? If we go by what Bernanke has been preaching and practicing, it means more  paper currency will be "created" to repay the debts. As a result, debasement of currencies will continue and this will further aggravate existing tensions between the competing economies. And when creditors have enough of this paper scam, expect violent reactions!

Conventional Wisdom

A Common Currency For The Americas?

March 15, 2001

A Common Currency for the Americas?

by Roy Culpeper

President, North-South Institute

http://www.nsi-ins.ca/english/news_views/oped19.asp

     (Article written in 2001) There are several good reasons why a hemispheric common currency – let’s call it, for the sake of argument, the ‘Amero’ – is a bad idea. The disadvantages to Canada, and the countries of Latin America, of giving up their national currencies far outweigh the potential benefits.

     Proponents of the ‘Amero’ argue that the Europeans have shown us the way. After eradicating all other barriers to the movement of goods across borders, they merged their national currencies to form the Euro. As a result of currency union, trade and investment among members of the European Monetary Union is expected to grow by leaps and bounds.

     The problem with this argument is that the Americas are radically different from Europe. Germany has the biggest economy in Europe. But, Germany’s GDP is less than that of France and Italy combined. In contrast, the economy of the United States is three times as large as that of Canada, Latin America and the Caribbean combined. In the European Monetary Union, Germany is the first among equals, but is nonetheless a minority shareholder. In the Americas, the preponderance of the United States is such that it has no equals and will not have any in the foreseeable future.

Conclusion

     The current, conventional wisdom is still no one in North America will accept the Amero. Why? Americans do not have a European mentality, and only benefits America and not Canada or Mexico. The answer to the Anti-Christ's dilemma is to bankrupt America, Mexico and Canada to the point where all will beg for a “solution.” The solution will be to follow England. Once the Brits see changing their currency to the Euro revives their decimated economy then North America will take note and follow.

     Why is this taking place? Any undergraduate can tell you whoever is running the economy is doing a really bad job of it on purpose. The economic engineering is taking place in order for 10 federated unions to each have its own currency. When that is accomplished a global electronic currency will easily fall into place. This is prophesied in the Bible and will take place in the end-times in order for the Anti-Christ to control every single person in the world. If they do not obey the anti-Christ and take his mark they cannot bank. If they cannot bank, then they cannot purchase food. They will either bow and worship the anti-Christ or die.

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 (Rev. 13:13-18).