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The Continuing Economic Meltdown

Oct 02, 2008

It seems at last that the economic pundits are finally abandoning all hope of a quick economic recovery. After trying to put a smiling mask on the problem for the past year, telling us that we have bottomed out and that good times are just around the corner, a new dose of sobering realism has hit them.

In fact, they are now using that realism to sell to us the latest bailout "rescue" plan. It is being touted as "not a Wall Street problem, but an American problem." In other words, pass this $700 billion bailout bill, and it will result in benefits to the average American who wants to use credit to buy a car.

The problem is, this bill is actually designed to bail out foreign banks who were heavily invested in Fannie Mae and Freddit Mac. Our own financial institutions sold China over $350 billion of those toxic mortgages, to say nothing of the European institutions that bought these worthless pieces of paper as well. The great bulk of this $700 billion bailout will go overseas to save foreign banks, not to American citizens.

The alternative, of course, is to incur the wrath of China, which could so easily begin dumping dollars on the world market and crash the whole system. They could stop funding the war in Iraq and Afghanistan. If they merely stopped buying our debt, we would be in even worse serious trouble.

I can sympathize with the House and Senate to some extent in their angst over this bailout bill. They know that the meltdown is real, and that to vote against this bill would leave them open to the charge that they are to blame for the continuing meltdown. The fact is, the meltdown will continue either way. The only substantive issue is who will be made the scapegoat in the meltdown. If the bill fails again in the House, all who voted against it will incur the wrath of the rulers of Babylon. I think they know this--and if not, they will be told these facts of life behind closed doors.

So I don't think the bailout bill can be stopped. Congressmen are not the real rulers of this Babylonian system, so they can only hold out temporarily until the thumb screws are tightened sufficiently for them to see the light.

But if by chance the House still refuses to pass the bill, then watch for the President to pass an Emergency Executive Order on the pattern of President Roosevelt in 1933. The only difference between then and now is that the original order in 1933 has never been rescinded, so we are still technically under martial law. Under color of "national econmic emergency," it is not inconceivable that even the coming elections might be "postponed."

All for the public good, of course.

Because modern Babylon is based upon a debt-usury system, it has always been only a matter of time before all the wealth of the country would flow into the hands of the creditors. It has been many decades since America had any real money, i.e., United States Bank Notes. All lawful money has been replaced with Federal Reserve Notes, which are debt notes circulated when the government borrows them into existence.

In other words, every dollar in circulation represents debt, not wealth. The last one to try to change the situation was President Kennedy, who issued some U.S. notes in 1963 about two weeks before he was shot. Hmmm, I wonder if there might be a connection there. Funny coincidence . . . the same thing happened to President Lincoln a century earlier after he issued lawful money called Greenbacks.

Will the current bailout bill cost the American taxpayers money? Yes and no. If the bill passes, the government will simply add $700 billion to the "national debt" and the private bank known as the Federal Reserve will simply create the money out of nothing. Then they will loan it to the Federal Government at interest. Considering the fact that trillions of dollars in wealth have evaporated in recent months, we really do have a shortage of money (credit) with which to do business. That is always the cause of recession and depressions.

The solution is to create more money. We can do that in one of two ways. One way is by passing the current bailout package and go further into debt to the Federal Reserve bankers. The other would be to nationalize the Federal Reserve Bank and replace all of the Federal Reserve notes with debt-free money.

The bailout package gives us more of the same and merely postpones the inevitable collapse of the system under its own weight of debt. The American people are not yet repentant and ready to nationalize the Federal Reserve Bank, which is the only true solution to the current problem. At this point, only Congressman Ron Paul has advocated that position. All other politicians know that such a position is the kiss of death, politically speaking.

The other problem is that the Fed has distributed its instruments of debt all over America and all over the world. Everyone's participation in the problem makes it that much harder to solve the problem, because there are so many people today who would lose money if the debt (or interest on it) were repudiated. It is now truly a world-wide problem, as shown by the fact that China, Japan, Britain, Germany, and other countries now hold our bonds and mortgages.

This has made it a global problem, and so the economies of the whole world will rise and fall together. Though the subprime mortgage problem began in America last July, the problem has spread to Europe. Europe's economy is now imploding faster than ours. That in turn will negatively affect America's economy in round two, and this will then further affect Europe. In my opinion, God will see to it that this continues until there is nothing left of Babylon.

The bottom line is that Mystery Babylon is falling, and its rulers will continue to be frantic in their attempts to stop it. They will want more powers to deal with the problem, and if Congress does not go along with their demands, they will grab power by declaring national emergency. They will justify all their power grabs by appealing to the public good. We ourselves are not capable of stopping this by natural means. But the whole thing is out of our hands, for in our 13-year Jubilee Prayer Campaign we appealed and won our case in the Divine Court. What we are seeing now is the result of God's direct intervention, designed ultimately to set us free and prepare the earth for the Tabernacles Age that lies ahead.

Please do not ask me to give you specific financial advice. That is outside my calling. If you are invested in debt instruments, you will probably lose money, since God is working toward the cancellation of all debt in a great Jubilee for the earth. If you have money in financial institutions that purchase debt, the result could well be the same, since they use much of your money for that type of investment.

If you buy gold or silver, make sure you stay out of the paper frenzy. Buy only real metal and don't buy on margin unless you really know what you are doing. Prepare for wild fluctuations as the manipulated market begins to implode. Silver right now is selling for well below the cost of production. It is inevitable that the price will rise sharply when the shaking is complete. Either the mines will go bankrupt and stop producing, or they will stop selling silver at prices below the cost of production. Either way, the price will have to rise, because there is already a looming shortage of silver in the world that is vital for industry. Gold is accumulated, silver is used up. So while both may be a good investment, silver is better in the long run. If you want to know more about silver, I would suggest you read Ted Butler's articles at:


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Category: Commentary

Dr. Stephen Jones

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