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Run On US-European Banks Brings World To Brink Of War

Wichaar Desk

August 8th, 2011

 

 

A shocking Russian Finance Ministry report prepared for Prime Minister Putin is warning today that massive liquidity runs on American and European financial institutions over the past fortnight are in danger of collapsing the entire global economic system leaving war as the only “option” for the West to use to protect itself from complete obliteration.

According to this report, the genesis of this current crisis began on 20 July when the United States Federal Reserve Bank began calling in nearly all of the zero-interest loans it had secretly made to American and European banks between December 2007 and June 2010 that the first ever audit of the US Government Accountability Office discovered was a staggering $16 Trillion!

The reason for the US Federal Reserve calling in these $16 Trillion worth of loans, this report continues, was due to the American political leadership classes’ failure to address their nations shocking debt of nearly $15 Trillion, and when coupled with their unfunded liability claims of over $114 Trillion is further warned will soon bring the greatest economic power on earth to economic ruin, and hence drag the rest of the world down with it.

The United States “charade” of reaching their so-called “deal” on raising their debt limit, thus prompting the US Federal Reserve to act, caused Putin to declare this past week that the Americans have now become a “parasite” on the global economy due to their Congress passing a bill, signed by Obama, that cuts nothing from their budget and, instead, “limits” the increase of their future spending.

According to the respected American anti-war activist Justin Raimondo about this dept farce foisted upon the citizens of his country, and in his column titled Why Is America Committing Suicide?, ….. “Only in Washington, D.C., is a “cut” actually an increase.”

To how fearful the American elite classes have become about the rush to liquidity of the Western banks the Wall Street Journal reported yesterday that the fastest-growing asset on bank balance sheets this year is cash. Since the beginning of the year, US bank holdings of cash are up 83%, or $890 billion, to $1.98 Trillion. Consumer loans, by contrast, have grown 0.2%, or $1.7 billion. Commercial and industrial loans are up 3.8%, or $46.1 billion.

So overburdened have American banks become with excess cash from their elite customers that the Bank of New York Mellon on Thursday took the extraordinary step of telling its large clients it was going to start charging them to hold cash, and which, of course, caused a record amount of US Dollars to flow into Brazil seeking protection from the greater chaos soon to come.

In even grimmer news the US reported yesterday that just 58% of work-age Americans have jobs, the lowest since July 1983, that when coupled with a record 45.8 million of these people receiving Food Stamps clearly shows a society near total collapse, if not outright civil war. [Note: The situation in the US has deteriorated to the point where reports are now coming in showing their disenfranchised black population is rising up in revolt.]

Important to note about the over 20% of the US population that is jobless is that their elite political class is continuing to deceive these people about the future in that with nearly 80% of these unemployed masses being part of the “Baby Boom” generation (i.e. over 50) there are no government jobs programmes (such as infrastructure building) they are able to do.

Unbeknownst to the majority of these people is that the times they are living in today are an exact mirror of those experienced by their ancestors during last centuries Great Depression of the 1930’s, including: 1.) vast numbers of homeless and jobless; 2.) millions thrown out of their homes through foreclosures; 3.) crippling drought sending massive dust storms across the land; and 4.) an elite class protecting their wealth and status at the expense of the downtrodden. [Note: Where during the Great Depression the massive dust storms came from a crippling drought of the upper Midwestern portions of the US, today’s tragedy is coming from the lower Midwest, mainly Texas, where hundreds of millions of tonnes of once fertile top soil is being blown in giant dust storms across the American west.]

For the Western peoples, especially the Americans, who have failed to heed our civilizations greatest warning that “those who fail to heed history and its lessons are doomed to repeat it,” lie the greatest dangers as the only way capitalistic systems are able to survive is through war, and according to the experts now it is coming much sooner than later.

The first stirrings of Total Global War to protect the American and Western economies were first sounded this past spring by top Obama advisor, New York Times columnist and Nobel Prize winning economist Paul Krugman who last year said: “From an economic point of view World War II was, above all, a burst of deficit-financed government spending, on a scale that would never have been approved otherwise. Over the course of the war the federal government borrowed an amount equal to roughly twice the value of G.D.P. in 1940, the equivalent of roughly $30 trillion today.…this slump can be cured. All it will take is a little bit of intellectual clarity, and a lot of political will.”

Krugman was joined in his “war thinking” this past week by his fellow economic “intellectual” and CNBC analyst Marc Faber, author of the highly popular “Gloom-Boom-Doom Report,” who warned all of his readers yesterday to “Brace for a Global ‘Reboot’ and a War.”

And to how close this war is we can ascertain from Russia’s envoy to NATO Dmitry Rogozin who yesterday warned that the United States and its Western allies are planning a military campaign against Syria to help overthrow the regime of President Bashar al-Assad with the long-reaching goal of preparing a beachhead for an attack on Iran, and which, of course, would start World War III as neither Moscow or Beijing will allow this to happen.

Most important to note about all of these dire events now occurring are that there are those of us who continually seek to keep you informed and educated about what is really going on, and at great risk too. In fact, to what is happening today we first warned about in our 28 June 2007 report titled “US Banking Collapse ‘Imminent’ Warns French Banking Giant,” when the price of gold was barely $400 an ounce.

Distressingly our warning fell on the deaf ears of those refusing to accept anything other than the “official” lies of their propaganda media and political overlords. But, to those few who did listen, and upon listening acted, they are now secure because they took their savings from the banks and converted it into gold and other precious metals.

To those of you still refusing to believe the truth, even though it’s staring you in the face, we can only tell you it still isn’t too late to protect yourself and your family. But you first must stop listening to the lies!

 

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