—That the Greek people would strike a major blow for light in our world! A group of people finally said NO to the reinstatement of debtor’s prisons in which entire countries are placed in such prisons by the Banker Politician Axis known in polite circles as our international financial system. The previous “bailouts” of Greece were not for Greece, they were for the bankers, the lenders:
Yet the Greek people ended up with more debt on their backs and with austerity plans from the “great minds” at the EU, ECB, and IMF that have kept their economy shrinking further each year so that it is now about 25% smaller than in was in 2006. In other words, Greece has been going backwards financially: more and more debt, smaller and smaller economy. Why should they put up with more of this? To their credit, today the people of Greece gave a resounding NO to further strangulation by the EU.
And who could have predicted:
—In the late 1980’s, that Japan Inc. would not take over the world. Starting at the end of 1989, the Japanese economy was revealed to be not an invincible powerhouse but rather a real estate and stock market bubble, the collapse from which Japan is still reeling because—as pointed out repeatedly in the 1990’s and early 2000’s by pontificating central bankers from the West—the Japanese refused to bite the bullet and let the bankrupt go bankrupt and kept zombie banks alive by financial trickery, something the Western central bankers also did starting in 2008 when faced with the same bankruptcy situation of their own banks. And all central bankers (except those in Iceland: they bit the bullet and it worked out far better for them—their debts are now much smaller and their economy is larger than it was in 2007) are still doing exactly that. To keep up appearances, Japan has printed up so much money to buy so much government debt that their national debt is now 19 times annual tax revenues. (Think about that from a person’s point of view. Let’s say the person makes $50,000 per year, and they have to live off that, but they also owe 19 times that, $950,000. How can they ever pay off the debt? Even if they tried to pay off $10,000 per year, the interest on $950,000 at 3% is $28,500, so they would owe $18,500 more every year.) Gee, Japan sounds worse than Greece! Way worse. And here’s a graphic of the US government’s debt:
That looks like it’s going well! Yeah, sure, very sustainable.
And who could have predicted:
—In the late 1980’s, that the USSR would collapse. The USSR was a superpower! But it turned out that the USSR, which made most of its money from commodities such as oil, diamonds, platinum, etc., was unable to withstand the collapse in the prices of all of those commodities in the 1980’s and their entire economy collapsed, taking their overreaching political system down with it. But they hid their problems so well that the CIA incompetently thought the Russian economy was three times larger than it actually turned out to be. Either that or the CIA needed a fake “strong” enemy to boost its own budget.
—In the late 1990’s, that internet stocks would collapse in 2000. It was the new paradigm! If you didn’t believe it, you “just didn’t get it.” Who could have known that Webvan, Pets.com, and EToys.com would go from riches to not even rags?
—In 2007, that real estate prices would collapse. Real estate prices always go up, don’t you know? And they aren’t making any more land! And it’s always a good time to buy! And other lies, too! Tell all that to the 7 million households that were foreclosed upon just in the US in the last decade.
Who could have predicted those things? Well, a few people correctly predicted each of those big changes. But they were generally derided or ignored.
What’s the point of the list? Well, that things change. Sometimes they change in a big way. And sometimes in a hurry:
(Source: House-sized boulder falls on and blocks Ohio highway)
And we are living in a time about which it’s very easy to argue that we have simultaneous global bubbles in government bonds (think negative interest rates!), stocks (many indexes are higher than they were during previous peaks that were later admitted to be bubbles), and real estate. Don’t think it’s a real estate bubble? This house in San Francisco sold for $1.21 million in March:
(Source: San Francisco tech bubble spills into mega housing bubble)
And this one (just the small one with the new coat of yellow paint!) in Sydney, Australia went for the “low low price” of $840,000:
It does have one bedroom. And the bathroom is outside! Ah, the fresh air! And the neighborhood is crime-ridden! At least the one in San Francisco was in a good neighborhood, so the $1.21 million was probably for the lot, that is, the house was a knocker-downer, not a fixer-upper.
And with the exponential increase in electronic money printing by governments, it’s easy to argue for a fourth bubble, a currency bubble as well. And people and groups are now making up their own currencies: barter currencies and electronic cryptocurrencies such as Bitcoin. In fact, you can go to sites like CoinCreator.net and create your own cryptocurrency. They claim they’ve created over 4,000 new currencies for people. This site tracks the current price of 653 new cryptocurrencies!
What will be the impact of the Greek vote? The fact that the debt of many (most!) countries is unpayable will now begin to emerge into the mass consciousness. During this latest round of negotiations between Greece and the Troika (EU, ECB, and IMF), the Greek representatives, Varoufakis and Tsipras, have repeatedly tried to explain that the debts of Greece are unpayable, that Greece needs debt relief, debt restructuring. But the Troika played hard ball and said that was out of the question, that Greece had to pay its existing debts fully. But then just over a week ago, someone leaked an internal IMF document that clearly showed that the Greeks were right, that existing Greek debts could never be paid! This allowed Tsipras to go to the people with the backing of that IMF document to urge a NO vote on more strangulation plans from the Troika. Tsipras was able to say, “See, we told you the truth. The Troika knew the truth, but lied about it. Who do you want to trust going forward?”
Italy, Spain, Portugal, and France, yes France, come immediately to mind as countries that will never be able to pay their debts. And now that the IMF has admitted the truth about Greece, they will be overrun with requests to show the same for these other countries, all of whom, like Greece, have had rising debts and contracting economies since 2007. This chart shows the 15 to 20% declines in production in Italy, Spain, and, France since 2007:
So the dominoes will now start to fall because these and many other countries have unpayable debts. People will start to understand this.
All we want is truth! Why are these so-called leaders (some of them will be shown in two bonus photos below) so afraid of truth? Well, it was explained well here last week: The truth is that these leaders sold out their own electorates, placing the bad bets of the commercial banks on the backs of their own citizens, making the bankers whole and putting their voters on the hook for unpayable debts. And all of their great plans have been complete failures–except if their plans were to pad banker bonuses. They really don’t want this to be made obvious to everyone in each of their own countries. Getting kicked out of office will be one of their lesser worries.
With the exception of the 2007 event listed above, the other events were mostly local to one country. The one in 2007 almost took down the global financial system. This current bubble-plex (multiple bubbles at once) is global in nature, and will have global systemic consequences. It involves bubbles (debt and currencies) that are the very fiber of the world financial system. The period from September, 2015 through December, 2017 will bring deeper and more dramatic change than most people, even me, can envision. It helps a lot to be ready for change. Inside and outside, some say that preparation is everything.
What are the central banks doing about this? Well, they have been printing money to try to fill the holes that have continually been opening up in the system since 2007. What the smarter ones have also been doing since 2007 is buying gold instead of selling it:
China keeps importing around 2,000 tons of gold per year.
I sincerely hope you have been “importing” some as well. Perhaps the US has a (war?) plan to win the game shown in the following cartoon, but at this point, it sure looks like they are losing this game in a big way:
* * *
And as a special bonus, here is a photo of some of these world “leaders” marching “with the people” in France after the Charlie Hebdo shootings. The photos and related videos were plastered all over the mainstream media:
And here’s the reality of that “with the people” thing:
Totally staged! That’s a good description of these people: totally staged.
* * *
And since the Greek people have put me in a very pleasant frame of mind, here’s bonus #2: Make sure not to step in any sinkholes:
* * *
And Bonus #3 is a question. The winning answer will receive the first ThunderingHeardBuck created at CoinCreator.net. OK, that’s a joke, but the question is very serious: It used to take generations for people to fall for the next bubble. For many decades following the Tulip Bubble or the South Sea Bubble, people were too smart to fall for a bubble. It took generations for the memory to pass. So the question is: How come we have new major bubbles every seven or so years now?