Global inflation has begun : the elites tremble before the wrath of the dupes
The dramatic collapse of young economies in the world are the first signs announcing the crash of the world financial system. The debt tsunami is rolling . It will lead to an inflation of anger against those whose goal is the exploitation of the world. The end will be painful, says Marc Faber. Christine Lagarde speaks about the breaking of a dam, against which defense lines need to be built up. But the attackers act in self-defense; millions of people are starting to rebel against the financial system. The situation is changing.
Caption: Revolutions always break out when those in power believe that they can lever a piece of bread into a piece of cake ( leverage). The storming of the Bastille in 1793 , Charles Thévenin .
The alchemists of the global financial system start getting nervous.
Many countries around the world show worrying signs .
And they come in an increasing speed .
The debt bubble begins to burst.
The consequences are clear: Inflation and social unrest.
In an increasing speed those countries , which in recent years have become the preferred targets of the global speculation elite are now under pressure. Currencies suddenly loose values and are worth nothing : Brazil, Turkey , India, Indonesia , South Africa – everywhere inflationary tendencies are accelerating.
The capital owners are nervous. Everywhere they are withdrawing from the countries into which the irresponsible low-interest-rate policy of the central banks had made them invest. What remains in these countries are increasing social problems.
In his very detailed analysis, investor Marc Faber has warned explicitly about to this development. Faber explains that the excessive money printing has not led to inflation in the U.S. nor in Europe. Due to the uncontrolled international integration the inflation has been exported. Seduced by the central banks, investors have put their money into bubbles. Like in the Internet boom, in the real estate bubble, or in the gold rush, huge sums invested in financial products have gone into the so-called emerging and developing economies .
The fiction, on which the global financial industry has been operating is simple: With all that money no products or properties have been created. Simply the prices of assets increased. Faber says that the world’s GDP in one year equals the sum of the artificial financial papers that are thrown on the market in a single week only.
The result is: Those who live in a real economy, can no longer afford anything. Faber, who lives in Asia, describes the situation in Thailand: Due to the speculation madness, property prices have increased so massively that a young Thai family can no longer afford a house. Food prices skyrocketed. For the rich in the world there is no problem: If you have more than a million dollars per year available, you spend approximately 3% of this income on food. Somebody who only has 1.000 dollars available, spends 60% on average on food.
This is the point where the rotten system will break down.
Must break down.
According to Faber’s assessment of the unrests in Tunisia, Egypt, Turkey and elsewhere were exclusively social unrests. People rebel because they do not see a future for themselves anymore.
In Europe and the U.S., the outbreak of unrests is still prevented because the states crazily continue pumping money into the social systems in order to pacify the people – money that they do not have.
At the same societies are aging – and it is a question of survival for the systems whether pensioners get money. The pension funds are extremely nervous, because they know that if the financial system really crashes, they can no longer pay the pensions. Therefore they rush from one bubble to the next.
But soon there will be no place safe anymore.
Simply, because at the end of the story there must be a real value behind every investment, even behind the absurd financial product. Real values are: a company, a piece of land, a commodity.
But the real values do not change according to the prices, which have been skyrocketed by this suicidal strategy of the global speculators.
Now the alchemists, who have caused the fiasco, try to put the genie back back into the bottle.
But that will not succeed.
The genie is out of the bottle. It is the demon of unsecured loans, the deathly touch of the global debt.
The system is trapped.
IMF chief Christine Lagarde in her speech to the financial jugglers in Jackson Hole has played Cassandra: The dam threatens to break. Defenses to prevent a system crash have to be build up.
The crisis in the emerging countries is out of control. Helplessly Lagarde has announced that the IMF stands ready to thelp countries in need.
With political advice.
But the IMF has no money anymore.
Too much money has been printed.
Money loses its value at the very moment when it is no longer backed up. We just live this moment.
That is why central bankers, non-elected, not-responsible and uncontrolled amateurs of the worldwide greed, fumble with an exit strategy.
Lagarde said that printing money would slowly have to come to an end.
The “Exit” as she calls it, must be controlled.
Lagarde is a lawyer. She has no idea about economy.
What she knows is the cold game of power. Therefore, in her speech, she clung to the famous fictional instrument of threat: states must do everything together. National egoism must stop for the great common goal – the salvation of the world financial system.
But the incantations are no longer plausible.
For the vast majority of humanity ,there is no need to savethe world financial system .
On the contrary: For 99 percent of the people, this Monopoly, in which they are nothing but the little plastic figures moving back back and forth while Monopoly is being played, this game means their ultimate destruction.
Marc Faber, who looks a bit quirky, understands a lot of economics.
Contrary to Lagarde, he sees the consequences: The impact of the global debt bubble will be war, social unrest and destruction.
The coming crash in the young economies is a sure sign that the end game has been reached.
The gross national product of the world, which Faber estimates at about $ 60 trillion dollars, is what the banks declare as turnover per week.
The money in circulation has nothing to do with reality any more.
When now India, Indonesia, Brazil, Turkey and all those countries, into which the financial industry has pumped the money in the form of loans and bets on these loans, lose balance at the same time – then that is a sure sign that the financial industry will not be able to detain the people in a global debt prison any longer.
It leads to an outbreak.
Lagarde still talks of an interwoven financial system claiming that all should participate in this system in a civilized way, so that more money can be made with values at heights that have never existed..
However, she does not see that thepeople in those countries do not have any interest in such a system any more.
No politician can be corrupt or depending on banks so much, that he would not realize: this is about survival.
Beppe Grillo, in an interview with Business Week, has said that Italy must quickly get out of the debt trap. The euro is not the problem, but the debt. The Italian economy can not pay back the loans, which has been forced upon them by this absurd political system of financial investors – those loans that utterly unscrupulous politicians have gladly taken to keep themselves at the feeding trough of power during the next election.
But now the feed trough tilts.
And if millions go to the streets in India, Brazil or Turkey and break the system into pieces, it will be too late for any “financial engineering” that the IMF loves to operate with.
Russia and China will follow.
And the euro zone will be swept away with their debt burden. The rise in interest rates in the bond market for Germany shows a significant increase in the shortest possible time. The U.S. government bonds are already at 2 percent. It will get more and more expensive for the rich, large debtors to maintain their loans.
The dams will not only break in the realm of Madame Lagarde, but will very soon undermine the very foundations of Western social systems to be finally brought down by the enormous floods of money that is needed to pay off debts.
Cyprus, Greece, Portugal – are only the forerunners in miniature.
Now the turn comes to the big boys.
The dam break will follow the flood.
The tsunami of global debt.
The ECB, the IMF cannot stop, and not the U.S. central bank.
The inflation, which now brewing everywhere in the world, does not know any national boundaries.
This is the mistake of the alchemists who so much love to see the new world order: Everything the oligarchs, who have invented this system, have put into this system and benefited immeasurably from it, will surely hit back in an unimaginable.
Mark Faber says the system comes to an end, “either by war or financial collapse.”
Christine Lagarde believes that the crash, which she describes in her amazingly blunt speech in Jackson Hole, could be prevented by more credit, by giving up national souvereignity, by even harsher austerity measures for the people.
Marc Faber says the end will be “very painful”.
What is now brewing, is the inflation of wrath of all those who feel cheated and exploited, frauded for their future and driven back into slavery by a small elite, which even in the endgame wants to tell them, that “Growth” is the only alternative.
The growth of poverty?
The end will be very painful.