Could there be a Total Economic Collapse? A few short weeks ago, I was in ignorant bliss. The economy was improving…not as fast as we hoped, but in the right direction. I was warned by an economy savvy friend to just watch out if the Chinese started dumping Dollars, but that they probably wouldn’t because they are dependent upon Americans buying their goods. Then, the last week of August I learned from Business Week and the Wall Street Journal that major banks- Citigroup, HSBC, and JP Morgan Chase are dumping Dollar-backed securities for Chinese-backed treasuries and have announced that they will be investing in Chinese (renminbi) yuan bonds. In fact, HSBC and StanChart are among a slew of global banks – including CitiGroup and JP Morgan – holding roadshows across Asia, Europe and the US to promote the renminbi to corporate customers instead of the dollar. HSBC, which recently moved its chief executive from London to Hong Kong, and Standard Chartered, are offering discounted transaction fees and other financial incentives to companies that choose to settle trade in Chinese currency.
And guess who else has joined the Chinese Bandwagon? McDonald’s, the US burger chain and icon of globalisation, just this month became the first foreign multinational to issue renminbi-denominated bonds in Hong Kong. The Illinois-based fast-food chain has become the world’s first non-Chinese company to raise funds in renminbi!
Now that the Federal Reserve can't cut interest rates any lower, the only option left on the table is exactly what the Fed just announced it would start doing -- buying Treasury debt. But, who pays for that debt and its interest? WE do - with MORE DEBT! In fact, already reported last January, J. Mark Iwry, deputy assistant Secretary for Retirement and Health Policy at the Department of the Treasury, had been working with Assistant Labor Secretary Phyllis C. Borzi to develop the idea of structuring a government annuity, a "lifetime income option," as a mandatory element of IRAs and 401(k) plans, with the investment required to be in Treasury debt. Now, the U.S. Department of Labor recently released an agenda for a joint hearing on Sept. 14-15 to discuss whether government life-time annuity options funded by U.S. Treasury debt should be required for private retirement accounts, including IRAs and 401(k) plans, and to discuss the feasibility of implementing regulations that would require private investors to structure IRA and 401(k) accounts into what could amount to a U.S. Treasury debt-backed government annuity. Treasury officials confirmed a joint hearing scheduled between theTreasury Department and Department of Labor officials this month to explore the "lifetime income option" for Americans using their retirement accounts.
What does this mean? You might be required to convert your private retirement accounts into US Treasury Bonds. Do you believe the US economy will recover enough to fund your Retirement? CitiBank, JP Morgan Chase and even McDonalds don’t! They just converted to Chinese Yuan!
And what about the national debt? In risk management, most economists base their evaluation of the economy upon the debt to GDP ratio. The gross domestic product (GDP) is a measure of a country's overall official economic output. It is the market value of all final goods and services officially made within the borders of a country in a year. According to economists Carmen Reinhart & Ken Rogoff, crossing the 90% debt/GDP threshold is the equivalent of crossing the proverbial Rubicon of economic growth. It's a point from which it's almost impossible to return. When Germany crossed it and when Argentina crossed it, their money was worthless. Our debt is growing, our GDP is decreasing, and some economists are predicting a 95% to 100% Debt to GDP Ratio by the end of this year.
NEXT BLOG: What’s Your Fancy? Total Economic Collapse? Solar Flares? Natural Diasasters? Terrorist Attacks? 2012? What will you do for Food, Water, Shelter?
Good information all brought together in one place; thank you much! The increasing evidence brought to light in several sources suggest an ongoing plan to ruin the economy's of many nations and the manipulation of mass peoples into a "new world order". Some sources go way back to turn of the century, some late 60's early 70's and forward. Some book titles are:
ReplyDeleteArchitects of Conspiracy, None Dare Call It Conspiracy, None Dare Call It Treason. There are a number of "suggested reading" books at www.glennbeck.com including books written on a historical basis about several of the founding fathers of this Nation as a "Republic", not the Democracy its being called and treated as today.