Entering the Panic Phase of this Collapse
Mar 02, 2009
Martin Weiss, writing in Money and Markets for March 2, 2009, says,
"The panic phase of this collapse is about to begin. The panic phase is an acceleration in the economic decline . . . a chain reaction of debt explosions . . . a free-fall in the financial markets . . . and a series of rude awakenings that will accelerate the decline even further."
President Obama has announced that he will "halve the deficit" by the end of his first term in office. I don't know if he means half of the 2008 deficit or half of the 2009 deficit.
Let's see, if we don't count President Bush's $700 billion bailout from last September, and if the government passes no more bailouts than what have already been passed last month . . . 2009 will see a mere $1.75 TRILLION deficit for the year. Multiply that by three for his first three years. That comes to $5.25 TRILLION.
Add to this, the half-debt for his fourth year, and it comes to $6.125 TRILLION added to the present national debt. As you well know, government figures are always optimistic, because optimism is part of their job description. Economists can afford to be realistic; politicians cannot, because the people would punish them at the polls for economic honesty.
Weiss points out that current government figures show that our GDP (gross domestic product) plunged 6.2% in the final quarter of 2008. It is expected to do the same in this current quarter, although official government figures account for a mere 1.2% decline. President Obama's team calculations are based upon those official government figures, while the true decline is five times that severe. They calculate that next year America's GDP will begin to GROW again by 3.2%. Lotsa luck. Even their manipulations can't hide the fact that their figures are seldom accurate.
Most Governments believe in the principles of:
No figure is too good to avoid manipulation.
No falsehood left behind.
No lie too small.
By the way, where did we cross the line from Billions to Trillions? A year ago, many people did not even realize that there was such a thing as a trillion dollars in the whole wide world. We're on our way to a Quadrillion. Yes, that's the term. Look it up in your high school physics book. Back then the number was only theoretical except in astronomy and physics.
Prophetic Hananiah Today
In the time before the Babylonian captivity of Jerusalem, Jeremiah's nemesis was the prophet Hananiah. Hananiah is the one who broke the wooden yoke (Jer. 28:10), ensuring that Judah would receive an iron yoke in its place (Jer. 28:13). While Jeremiah was prophesying that God had sentenced Judah to 70 years' hard labor (25:11), Hananiah was prophesying,
" (2) Thus says the Lord of hosts, the God of Israel, I have broken the yoke of the king of Babylon. (3) Within two years, I [God] am going to bring back to this place all the vessels of the Lord's house, which Nebuchadnezzar took away from this place and carried to Babylon."
Well, Hananiah's optimism proved to be based upon inaccurate data that came from his own carnal mind. It is the same today in regard to the fall of Babylon. During our Babylonian captivity in the past century, these prophets prophesied good times. "Babylon? What Babylon? I don't see any Babylon. Nebuchadnezzar? Never heard of him."
Now that their beloved Babylon is collapsing, they prophesy, "Collapse? What collapse? Our best days are yet ahead. We'll pull out of this in two years."
Yes, our best days are yet ahead, but no thanks to Nebuchadnezzar. Old Nebby is going to make it worse by doing all he can to keep the bankers in power and the debts from being Jubileed. But the Stone has been cut out of the mountain, and it has already crushed the toes on his image. It is working its way up to the ankles right now. Ouch! Is there still time to switch to waterboarding?
Oh, yes. Just wait until the Spirit is poured out from on high like the rain. The beast's image will sing like a bird and admit everything.
Back to Martin Weiss, he does have a rather flamboyant style and has been criticized for exaggeration. But he does know what he's talking about, and he is usually close enough to be called "accurate." Certainly, he is more accurate than government's official newsletter, Happy Thoughts,which comes with the music of Somewhere over the Rainbow.
You realize, of course, that I do not blame President Obama for being optimistic. That is his job description. He is supposed to make us all feel good so that we will spend more money and go further into debt in order to stimulate the economy. He believes that government should provide the example. "If we can do it, why can't you?" In a Babylonian debt-money system, more debt is the only thing that can fuel the Titanic. At least, until it runs into a problem.
More debt does do the job until we reach a certain "tipping point," where more deficit spending costs more to create fewer jobs. That is the point where we are today, and as long as government only sees greater debts as the solution to the problem, we will only increase our speed toward the iceberg.
Today's problem requires a radical solution, a change of government. We need to replace J.P. Morgan with J. P. Christ. That's Jesus Paraclete Christ, for those of you unfamiliar with the New Testament. Paraclete means "The Comforter."