Georgi Stankov, August 29, 2015
I discussed recently that the current financial crisis is driven by the bursting of the two major bubbles which the US economic Ponzi-scheme created in the last several decades and in particular after the last financial crash took place in 2008:
– The equity market bubble
– The US treasury bond bubble
I will discuss the bursting of the two bubbles in more detail in a separate article as it is very important for you to understand their role and interdependence in the current final and Biggest Financial Collapse of the Orion matrix.
These two bubbles are closely linked to a third bubble, about which almost nothing is written in the MSM – the currency bubble which is entirely a dollar bubble – the unduly high revaluation of the dollar towards all other currencies such as Euro, Yen and Yuan in the last few months.
Brad discussed this issue with great dexterity in his article
The Ticket Home – the Biggest Market Correction of Lifetime
where he points out that the only reason why the toilet paper dollar has any value at all is because the rest of humanity is mired by the illusory strength of the US economy and the stability of its treasuries as the ultimate safe haven for capital in a crisis.
This has been the tradition since WW2 and that is why the hegemonic foreign policy of the US has only one purpose: to create chaos and havoc with illegal wars and interventions in the rest of the world as to preserve this quality of the dollar as a safe haven for all other fiat currencies and thus strengthen its position as a world currency. This is the driving motor of all hegemonic policy of the Empire of Evil. The abolition of the gold standard by Nixon in 1971 and the introduction of the petro-dollar in the late 70s had the same goal.
The chaos, which the USA and its criminal banks created in Europe, and in Greece particularly, especially after the illegal bombing and destroying of Libya that now generates huge streams of refugees in Europe and threatens the very political structures and social peace of all EU countries, but also the criminal war of the US Neocons in Ukraine against Russia, have only one goal – to instigate instability and crises the world over as to crash the local currencies and economies and recommend the dollar as the only safe haven for investments.
The financial background of this strategy of the One World Orion bank is that the currencies markets have a turnover of tens of trillions dollars each day. In comparison to the currency exchange markets (e.g. Forex), all the other markets, such as stock markets and bonds markets, are real dwarfs.
When the big crash will come, it will affect in the first place the currency market bubble, which is entirely a dollar bubble.
Now, the two bubbles – the equity market bubble and the US bond bubble – have finally burst this and last week. There is no such thing as a “correction” when a bubble bursts as the blockheads of Bloomberg and CNBC try to convince the public. When a bubble bursts, it goes down at least 70 – 80% as was the case with the German NEMAX50 that lost 95% of its highest value in 2003.
The German Neuer Markt— the new market stock index of German new economy companies existed from 1997 to 2003 and was wrapped up after extreme value loss due to the burst of the dot-com bubble. All NEMAX shares that reached astronomic heights of 100 to 200 Euro per share in early 2000 dropped below one euro. This new German stock market became infamous as the “One-Euro-Equity market” for about a year on life support at the financial ICU ward of the banksters cabal, before it was wrapped up. It was closed and disappeared from the surface in 2003 when the first big crisis of this millennium began.
The current equity indices are not experiencing a correction now, but a total burst of the equity bubble that is not supported by any real value of the companies traded at the stock exchanges. Since all physical investors left the stock exchanges in 2008 after losing their money, which the big banksters cashed with this orchestrated crash, we now have only rogue high-velocity computer trading of the too-big-to-fail banks that inflates the indices artificially with funny-paper money. The equity bubble since 2008 is a complete fraud as the western economies are in the Greatest Depression of all times and that is why when this bubble will fully burst, all equity markets will disappear for ever and all investments will be wiped out.
Just as the German NEMAX 50 Index collapsed in 2003 and wiped out more than 400 billion € savings of the average German people after it was closed in 2003, so will all current big stock markets experience a total crash this year and will be closed at the end. This crash will be flanked by the burst of the other two bubbles – the bond bubble and the dollar currency bubble.
The last two bubbles are closely linked and mutually dependent. And here comes the role of China that has become in the last two decades the chief sponsor of the three Ponzi bubbles of the US economy. This country is the chief buyer and holder of US treasury bonds worldwide with more than $1, 3 trillion until last year. Thus China is the single biggest subsidizer of the US national debt that now exceeds officially $18 trillions but when all US liabilities are considered the actual debt is more than $200 trillions according to conservative estimates of the most renowned, though still conventionally thinking US experts and think tanks. These are not numbers I invent for the sake of my argumentation, but numbers you can find in any comprehensive analysis of the ailing US state and economy.
With the beginning of the equity market crash, first in China and then in all western countries, the two other bubbles have also burst. China depreciated the Yuan and thus declared a war on the dollar last week. Why? Because China is not only the chief sponsor of the gargantuan US debt through buying huge amounts of US treasuries that have no value, but also the cheap ex-territorial factory of the USA and EU. And here comes the greatest fraud of all times.
As I have repeatedly shown, the USA and the Western world are in the Greatest Depression of all times. It is bigger than the Great Depression in the 30s. The big difference is though that at that time we had only the USA and part of Western Europe that were net producers and constituted the western industrial world. The rest of the world was still in the Middle Ages and had not yet entered the Industrial Epoch.
When the Great Depression came, it hit only the few developed Western countries such as the USA, Germany, GB and France. All rural underdeveloped countries were exempted from the Great Depression, even though it also caused a huge slump in agricultural product prices as the current Greatest Depression caused a huge slump in commodities prices. The elements of a true depression are always the same independently of the historical epoch.
During the Great Depression in the 30s, there was no other part of the world outside the Western industrialized countries in Europe and the USA (Canada did not count at that time) that could absorb this depression and compensate it with cheap exports. Precisely this is what happened since the beginning of this millennium when the two big crises – in 2003/4 and 2007/7 – crashed the Western economies and caused the Greatest Depression of all times.
China jumped into this crisis with cheap products that were exported to Europe and North America in huge amounts and compensated for the slump in industrial production and consumption there. These cheap imports camouflaged the beginning of the Greatest Depression caused by the rapid impoverishment of the western populations under the severe austerity polices of their criminal governments that spent trillions of taxpayer money to bailout their Orion banks. Most of the imported Chinese products are crap, but they created an artificial illusion that the western economies were still growing. In fact they were already in a big depression.
At the beginning, the retail prices of most consumer goods did not rise very much and this enabled the ruling cabal to create the myth of a deflationary crisis, first as a deflationary recession and then as a weak deflationary growth. This gave all central banks the rectification to lower the interest rates to zero (ZIRP) and this is where they stand for the last seven years of infinite QE.
This is also the time when the Keynesian macro-theory of growth stimulation through governmental spending died in the graveyard of rogue western Orion economic policies, just like the opposite neoliberal policy of the Chicago school of monetarism that preached no state intervention but stimulating the economy only by modulating the amount of money in circulation through flexible interest rates deceased when the zero interest policy of the FED was introduced and the illusion stubbornly kept that these interest rates would be raised in the not too distant future.
The current burst of the equity markets bubble and now of the US bonds bubble was triggered when it became evident for everybody that the Fed and all the central banks have lied all the time and that they have no influence on the real economy whatsoever. They are simply no longer in the game. That there is no way for them to raise the interest rates even modestly as this will kill the economy which is already in the Greatest Depression of all times. I hope you begin to understand the complex interdependency of the three bubbles that have just burst and now pave the way for the Greatest and Final collapse of the Orion matrix and our imminent ascension.
Soon after the Greatest Depression began in 2008, the inflation in the western world skyrocketed, first in all commodities prices and then in real estate prices again, notwithstanding the still existing and unresolved subprime mortgage crisis. In the last 4-5 years we have a double-digit inflation in most retail prices in the western economies that can no longer be compensated by cheap Chinese products.
China used this Greatest Depression of all times to expand its economy beyond anything observed in the past. It quadrupled its GDP in less than 15 years since the beginning of the new millennium. It became the greatest exporter and holder of foreign currencies of more than $4 trillion and it surpassed the US economy in real GDP two years ago. It became Number One in the real economic world, while the USA remained No. 1 national bankster of all financial Ponzi-schemes without any value that collapsed the western economies.
That is why the BRICS countries try to decouple from the USA. In this time China also raised more than half a billion Chinese people from utter poverty into a middle class status, a social achievement that was not even possible during the Industrial revolution when part of western humanity experienced for the first time in its dire history a modest abundance and welfare.
China also showed that the central planned type of national economy is more vital and competitive than the neoliberal US model of fiscal and financial fraud propagated by hundreds of US Nobel Prize winners and Orion stooges, while China has not a single economist that has won a Nobel Prize, notwithstanding its unparalleled economic achievements in the last two decades. This gives you a glimpse into the utter corruption of the Nobel Prize committee that gave the mass murderer and war-monger Bombama a Nobel Peace prize.
The USA elite knew though from the very beginning that their economy now entirely depended on the performance of the Chinese economy and that this country can crash the US economy and the dollar anytime it desires to do so. They simply counted on the fact that China has profited so much from this imbalance of foreign trade since the beginning of this millennium that it will not offset this US Ponzi scheme of international trade, where the Empire of Evil piles a trade deficit of more than $700 billion each year for the last three decades by printing worthless dollars out of thin air, and would harm itself.
However when the US attacked China military in the South Sea and also crashed the Shanghai equity markets bubble that shows the same similarities as the dot.com bubble in the early 3rd millennium, the game of mutual containment ended.
What we are now witnessing in the last two weeks is the great unwinding of this global Ponzi scheme and China holds all the trumps in its hand. This is an event of truly historic proportions that has already shaken the markets in their boots. Yet you don’t hear this discussed by the mainstream media, let alone by investment banksters. Because this is the beginning of the end of the dark western cabal.
It is a trend that has been talked about throughout China’s rise to prominence. It has been pondered and feared by Western banksters and politicians alike. The event I am talking about is the dumping of US treasuries by China in the last two weeks and the bursting of the bond bubble. At the end we will see the default of the US state and it will happen quicker than you can possibly imagine.
As I said above, it should be a common knowledge, that China has been propping up all Western economies, and in particular the US economy, over the last decade of the Greatest Depression of all times. It is also common knowledge that China has the ability to wipe out the US dollar in one quick motion, by dumping their treasuries on the market.
In this way China has all the trumps in its hand to burst the two major financial bubbles and crash the Orion system – the US bond bubble and what is even more apocalyptic, the dollar currency bubble.
This will be the revenge of the Chinese nation for the immense sufferings which the Opium wars of the initial Empire of Evil – Great Britain – inflicted upon this “big nation in the middle of the world” in the 19th century that led to its ultimate decline in the first half of the 20th century.
What is probably not common knowledge so far are the recent events that have unfolded behind the scenes, in which China has begun this very process.
On August 11th, China unexpectedly devalued the Yuan. This came as a shock to the markets, which saw the currency rapidly plummet by 4% and would have continued to do so if not for the extreme intervention of the Chinese Plunge Protection Team.
Since that time, they have been actively and directly engaging in the Forex markets, where they have propped-up the Yuan and artificially maintained their fix with the US dollar.
How did they do this you ask? By selling US treasuries. That’s right, it is being reported, that in the past two weeks alone, China has sold over $106 billion worth of treasuries! But this isn’t all, since the start of this year, China has sold an additional $107 billion worth of treasuries!
Not only is China accelerating their dumping of US treasuries, they have hyper-accelerated this process in the last two weeks, dumping almost as much as an entire year’s worth of US treasuries.
Yet, why haven’t the US treasuries collapsed under this huge influx of supply on the market? This is the true question that you have to ask and is not being answered. Who is buying up this huge influx of supply?
Remember, this is a period of time when the western economies are facing a total collapse and the markets are already awash with worthless fiat dollars. The first and only likely candidate that comes to mind is the FED.
It is highly likely that the FED has been monetizing their own treasuries, in an act that is akin to paying off a credit card with a credit card. It does not matter anymore, as the FED has amassed a huge debt of $4 trillion only in the last few years. Before the 2008 crisis the FED liabilities were less than 500 billion.
As the situation in China continues to move into the realm of a full-blown crisis, it is almost certain that China will get rid of its massive stockpile of US treasuries and that they are already dumping them through intermediaries such as Belgium on the market? Likewise, how much more can the FED handle before the market wakes up and sees this Ponzi scheme for what it is? I think that we have already reached this point.
Until now the US bonds were rather cheap for the US government as the interest rates were very low due to the ZIRP of the Fed. Now when the trust in the US economy and Fed’s credibility has been fully destroyed by the Chinese massive dumping of treasuries, this will trigger a chain of reactions by all other holders of US treasures.
In Germany the discussion about the worthlessness of US treasures has already commenced and it is a matter of days when this country will begin also to sell US treasures after it failed to get its gold from the Fed back home. The general impression of the Germans and most other people worldwide is that the Fed has no gold at all to cover for its gargantuan debt. It has been stolen by the cabal who want to have all the gold when they crash the fiat currencies and eliminate all cash as reported yesterday.
In the meantime the stock markets will continue to fall, as this is at present the only visible marker for the bursting of the three financial bubbles. When the bursting of the other two becomes obvious, then we can count with a shutdown of all banks and financial institutions as it happened with the fourth biggest bank in the world HSBC yesterday as reported on this website.
Therefore, free yourselves from false conclusions and influences that we have to deal with a temporary correction of the markets as so many times in the past. The only real fact is that the western economies are in the Biggest Depression of all times and all bubbles have burst. The fourth bubble that is about to burst any moment – it has already burst in Canada – and has not been discussed in this article is the real estate bubble. I will report separately on this issue as it merits a special attention.
Hence, stay confident and know that this time the avalanche has begun to roll down the hill and very soon will bury the whole western economic order. The matrix is crumbling not only because it has been established on insanity and any form of insanity is the ideal energetic condition for total destructive interference, but because it is time for Gaia and part of humanity to move out of this holographic model and begin with new dazzling experiences in the Golden Galaxy, while we shall return to the Source and celebrate the greatest and most adventurous creation this multiverse has seen so far.