Friday, August 1, 2008

The Government's Answer

Over the last couple days, the topic was about many reasons why the banking system is on the brink of collapse. Today, we will focus on what the government is prepared to do to prop up the system and preserve the empire.

The following are excerpts from an article titled "The Greatest Transfer of Wealth in History is About to Unfold" by Ty Andros from www.TraderView.com.

The horrible economics of the US presidential contenders and the gang of 535 (US Congress) will become priced into the markets in an increasing manner. Their economic illiteracy and inability to understand what and who create wealth pose inconceivable threats. The socialization of the risks to the banking system will continue to unfold; as it must unless a deflationary depression is allowed to unfold as the G7 money and investment banking system are increasingly insolvent. Ben Bernanke and Hank Paulson spoke to congress this past week and their message was clear:


Inflation be damned, job one is to rescue the financial system! Of course they will, keep in mind that the Federal Reserve is OWNED by the very banks which they are RESCUING! They will have their hands full in doing so.


There is NO shortage of cash sitting in the world. There are trillions and trillions of Dollars, Euros, British Pounds, and more FIAT currencies are ROLLING off the presses and keyboards (money is now digital to save on paper) on a daily basis; money is abundant and worldwide interest rates are NEGATIVE. But the amount of money creation required to save the BANKS' balance sheets from their unregulated SPAWN known as CDO's, CLO's, MBS's, (Collateralized Debt, Loan, Obligations and Mortgage Backed Securities, etc.) and CREDIT DEFAULT swaps is almost uncountable and still undefined as we speak. One thing you can count on: THEY WILL PRINT THE MONEY OUT OF THIN AIR one way or another and steal it out of the purchasing power of the G7 currencies and bonds as you hold them. Then they will rescue their masters in the G7 banking and financial systems with that same money! A stealth theft of purchasing power from where you hold it in your bank and brokerage accounts.


Capital raising is about through as all the patsies have been fleeced, now it comes to selling the family silverware as Citigroup and Merrill Lynch are now beginning to do, when that is done it will be the respective governments turn at the wheel. Trillions and trillions of Euros, Dollars and UK Pounds are set to roll off the presses and computer keyboards at the G7 central banks and treasuries (the Swiss are caught in this as well). Hundreds of banks are still left to fail, and trillions will be needed to clean up the messes and a new RTC (Resolution Trust Corporation) looms soon. It's inflate or die, and since central bank and financial officials are not suicidal, they will inflate…


The greatest transfer of wealth in history is beginning to unfold, as those who store their wealth in paper lose it to those who DON'T! It will take years to unfold.


This is the greatest OPPORTUNITY in history. Do not be afraid. Do your homework and thrive. Markets will zoom all over the place as investment assumptions that have held for years are now FALSE. We are not close to the end game here, cash is still spoken of as SAFE and risk free which is the most outrageous of LIES. Paper is poison and the sooner you invest with that in mind the sooner you will be on your way to the penthouse. People that hold their wealth in G7 paper are headed to the OUTHOUSE and they will be able to use their wealth as high priced toilet paper.

What is Wind Shear? WIND SHEAR - A change in wind speed and/or wind direction in a short distance resulting in a tearing or shearing effect. It can exist in a horizontal or vertical direction and occasionally in both . It happens when very high winds are blowing in opposite directions. When an airplane is caught in wind shear it can be RIPPED apart.


It can happen to economies and financial systems and it can RIP them apart too and deflation and inflation are trying to do so.


This is how I would define today's G7 economies: The high upward winds represent inflation in things which we all consume on a daily basis. The downward wind is DEFLATION in incomes, spending and household wealth in the G7.

CPI (Consumer Price Index) was reported up 5.6%, PPI (Producer Price Index) was up 9.2% and www.shadowstats.com is reporting year over year CPI at 12.2% (most accurate measure). This is the definition of inflation, and corrective activity may occur.

On the flip side with deflation, household wealth, jobs, and consumer spending are all headed lower. This is the definition of deflation.

Special thanks go to Ty Andros for his thoughts today - www.TraderView.com.

So, are you prepared for the wind shear of the economies blowing in opposite directions? The time to act is now. Choose how you store your assets wisely - toilet paper or tangible assets.

As always, the choice is yours.

Solomon answered God, "You have shown great kindness to David my father and have made me king in his place. Now, LORD God, let your promise to my father David be confirmed, for you have made me king over a people who are as numerous as the dust of the earth. Give me wisdom and knowledge, that I may lead this people, for who is able to govern this great people of yours?"

God said to Solomon, "Since this is your heart's desire and you have not asked for wealth, riches or honor, nor for the death of your enemies, and since you have not asked for a long life but for wisdom and knowledge to govern my people over whom I have made you king, therefore wisdom and knowledge will be given you. And I will also give you wealth, riches and honor, such as no king who was before you ever had and none after you will have." II Chronicles 1:8-12 (NIV)



If you have questions or comments, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com

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