- Many are surprised at the speed of events occurring with
the current global economic collapse. Yet few appear to be aware of what
is still to follow as events unfold in the days that lie ahead. For some
years I have been writing about this economic collapse, and now will explain
the events that will unfold over the coming weeks.
- The present crisis is not just an economic crisis
it is a political crisis also. What is unfolding now is a going to result
in the end of the Anglo-Saxon dominance of the global economy, along with
the collapse of their economies and military capacity. We are experiencing
some of the most dramatic and historic events in the history of mankind.
The political landscape of the world we live is being significantly changed.
- Here is a brief summary of the events to unfold.
- 1. The Anglo-Saxon financial institutions
will continue to haemorrhage as investors withdraw their funds and no longer
refinance loans as they fall due. Many of the investors are foreigners
who have lost confidence in investing in the Anglo-Saxon banking system.
- 2. The fall-out is impacting the European Union
economies, resulting political and economic changes is how the way the
EU is govern.
- 3. There will be a lack of confidence by the Asian
countries in reinvesting in the Anglo-Saxon nations the withdrawal
of their capital will result in the collapse of the US dollar, British
pound and other currencies depended on the carry trade, followed by national
- 4. While Asia and European economies will survive
and once-again prosper, the Anglo-Saxon nations will collapse into deep
depression, poverty and social disintegration.
- 5. A new economic model will emerge, where the
State replaces the private sector, exercising control over the population
in how commercial activity is conducted.
- Central banks over the last couple of weeks around the
world have been increasing the money supply to prop up a collapsing banking
system. In simple terms, this has meant creating money to advance to banks
to ensure that they have funds to pay depositors and to provide additional
funds to ensure banks will continue lending.
- The recent $US700 billion bailout in the USA means that
the banks will be repaid by the government for their bad loans, with the
hope that they will continue loaning once again to debt-laden consumers
to entice them to purchase more goods that they really don't need in an
effort to stimulate consumer spending. Yet banks are having trouble to
find credit-worthy customers to lend to, or do not have the funds to lend
at all as depositors withdraw their savings.
- The expansion of credit through the global banking system
on the scale of the last few weeks has been a risky gamble yet has failed
to restore confidence in the global equity markets, and which in turn is
further weakening the banking system as depreciating assets destroy their
- The Anglo-Saxon nations are depended on their foreign
creditors rolling over their loans they have advanced through the international
banking system or by purchasing Government Bonds. Their creditors have
been seduced into lending to them through complex financial products and
high interest rates. The English speaking world need the inflow of capital
to be to finance their current account deficits and maintain domestic liquidity.
Without the inflow of foreign capital their currencies risk collapsing,
drying up liquidity and economic activity in their markets. Countries
such as the UK, USA, Australia and New Zealand now face national bankruptcy.
They will not be able to sustain economic activity to generate the foreign
exchange to enable them to repay their enormous debts to their foreign
- Many have compared the current crisis to that of the
depression of the thirties. However there are some significant differences.
The problems that prolonged the depression of the thirties were from a
lack of liquidity in the markets. This time, Central Banks have flooded
the markets with money to prop up the banking system and in a vain effort
to stimulate economic growth. This is eventually going to be disastrousness.
Printing money in a desperate effort to solve the current economic crisis
will only make the situation worse. The market was already flooded with
money on a market that lacked confidence and has declining productive output.
The outcome will be a lack of confidence in fiat money and a flight to
gold or currencies that are perceived as being safe.
- At present the flow of money between banks has slowed
because of a lack of confidence. Yet this is not the real problem. The
current situation has been bought about as a result of continuing expanding
the money supply in the Anglo-Saxon economies while maintaining large current
account deficits. This has resulted in their banking systems are dependent
on an inflow of capital from countries operating with current account surpluses,
especially China and Japan. Printing money to finance payment of imports,
dividends on investments and interest payments cannot be sustained indefinitely.
The current crunch has come at a time when there has been a slow-down
in the global economy, partly due to the collapse of an over-heated housing
market in the West, making it more difficult for the indebted Anglo-Saxon
nations to service their debts.
- We are now seeing a dramatic shift of wealth from the
Anglo-Saxon nations to Asia. Though the US dollar has recently appreciated
against the Euro, this will only be for a short time as the world becomes
flooded with unwanted dollars. The collapse of the US dollar and British
pound will also drag down those currencies that have been supported by
the carry trade that is dependent on the inflow of overseas capital to
sustain their economic activity.
- The current crisis will have enormous global politically
recupssions. It will see the end of the ascendency of the western democracies.
People will be willing to accept authoritarian forms of government out
of economic necessity. Europe will experience the biggest political change.
The current crisis has shown the inability of divided leadership in Europe
to react to a crisis on the magnitude that has happened over the last couple
of weeks. This crisis will bring together the EU nations under a single
leader and political system.
- The acceptance of a single EU leader with the power to
take control of restoring prosperity to the European economies will result
in the State taking a much greater role in how economies are managed.
Already we are seeing Governments taking over failed banks, and legislation
is rapidly being passed to give the State the authority to direct investment
and control the banking system. Once this confidence is restored the Euro
will quickly replace the US dollar as the international currency to finance
globally trade. As currencies collapse, the Euro will be accepted as
an alternative currency, so if will be widely accepted around the world
as the money of choice. This will enable the EU to have great economic
and political influence around the globe.
- We will shortly see the collapse of the economies and
currencies of the USA, Canada, UK, Ireland, Australia and New Zealand.
The speed of this collapse is catching many by surprise. It will happen
once their overseas investors withdraw confidence in their economies and
withdraw their capital. Without being able to roll over their loans there
will be a collapse of their currencies and defaulting on their international
debt obligations. They will be blamed for the economic crisis that has
engulfed the globe, bringing the hatred of the whole world against them.
- It will result in the Anglo-Saxon nations sink into abject
poverty; their people face starvation, disease, famine, and abject poverty.
Their people will suffer greatly, as their societies sink into anarchy,
as law and order breaks down, and society collapses. Their nations will
be taken over by their creditors as they try and recover their debts, and
their people put into slavery. It will be a time of great suffering and
tribulation to its people.
- One consequences of this calamity is that religious freedom
as we have known it will be greatly curtailed, as the State imposes its
will upon those subject to it.
- How have the Anglo-Saxon nations got themselves into
such a mess, when they were the most powerful economic and military powers
on earth? The current situation is a direct result of rejecting the economic
and moral laws God has given our nations to ensure that we have a society
of equity, and prosperity, rather than what we have today a society
that is based on greed, pursuit of the self, pleasure and rejection of
moral and religious values. It is a society bent on self-destruction,
but few realize the consequences of such actions.
- Over the coming weeks I will write as events quickly
unfold as we sink into the darkness of economic abyss.
- Bruce Porteous
- 10 October, 2008