July 29, 2006

Global Economic Collapse - A New Global Dark Age

See Part II Here

Dateline: August 1, 2006
Disclaimer: The opinions expressed herein are those of the Author alone whereby this paper is not distributed as a fact statement that does not require much further serious analysis by the reader; it does. The responsibility for confirming the facts presented in this paper lies solely with the reader. This paper is presented to evoke a sense of urgency in order to prepare for the pending collapse of the US economy and more, for the onward most serious repercussions arising globally therefrom, in the form of a new global dark age. This paper is not an announcement for the end of the World but more to the point, a warning bell for the public as well as a flag marking the beginning of a new Epoch in the evolving history of man. The issue of the timing of events is always fraught with danger due to the non-linear, intertemporal characteristic complexities of the unfolding physical principles involved, however, in the instance of this call for pressing concern, an earlier prediction is much preferred than one that comes too late.
The economy of the United States of America (USA) is about to collapse; and will do so within the next few months unless dire and drastic corrective steps are taken by the USA White House Administration and or the Federal Reserve. As a direct result of this US economic collapse, Europe’s economy will shortly thereafter follow suit – with a resultant global aftermath that will cause the whole world to enter into an extended period of severe deflation and depression – a new global dark age is now appearing on the event horizon.
The indicators are now that these necessary “dire and drastic corrective steps” will not be initiated; some ineffective measures will indubitably be introduced but merely to appease popular sentiment; but too late and with little corrective effect. Mr. Ben Benanke of the Federal Reserve is outweighed by his legacy of the impending Greenspan spawned economic meltdown by a most obvious lack of expertise, lack of experience, lack of nerve (courage) and by policy directions emanating from his ideological oriented political superiors in the White House, IMF, World Bank and elsewhere.
There can now be no doubt at all, that those institutions responsible for the stewardship of the world’s economy are not dictating nor controlling US and global economic events and the darkness of this new age will depend on what is done now, prior to this pending event.
Economics is the driving force of civilization! A man caused force!
Statement of Account:
Anomalies are where the vital clues to unfolding physical events are to be found and it is from here which is screaming that new opportunities, profitability and extraordinary prospects are about to emerge throughout the global domain - for the courageous and winner minded entrepreneurial individuals who are ready to seek out the new boundaries of global markets and relationships; those new markets emerging in the ‘wild’ – now!
The game is now afoot for the non-risk-adverse hyper-rational ‘Economic Man’; those persons with wide experience, deep insight and a strong intuitive sense aligned with renegade research conducted in the intellect through cognitive economics.
You cannot train individuals to become true entrepreneurs - as to be an entrepreneur; one is to be born an entrepreneur – an innate condition and nature leading to the hyper-rational economic Man, as stated above.
This paper has been prepared for those persons who will dare to become tomorrow’s ‘leaders’ and to lay the foundations upon which to build the coming future epoch and change the face of civilization from the imploding current system of corrupted fantasy, to a splendor of intellectual growth and stability; when mankind will go to where no man has ever gone before.
This paper is about the events about to unfold and is couched to evoke in such aforesaid individuals the release of that impatient and yet dormant explosive potential of the pioneering human spirit lying within. The time is nigh.
  • European Banks (as well as most other banks throughout the World) are technically bankrupt and have been so for approximately twenty years.
  • Since the introduction and adoption of derivatives, that is, fleeting and momentary transactional ‘paper’ phenomena, as securitized financial instruments under Alan Greenspan’s watch at the Federal Reserve, – and by his very hand, US, European and most other banks have increasingly utilized derivative instruments to create their own ‘paper’ to represent ‘assets’ or lawful securities in order to satisfy statutory requirements so as to expand their lending capacities in a false environment of regulatory reserves.
  • The Global economic issues confronting the world today are beyond the capacity of current World leadership particularly the current US Administration.
  • The bureaucratic administration of the European Union (EU) of Brussels functions and operates with similar bureaucratic ineffectiveness and inefficiencies to that of the United Nations for mostly the same reasons.
  • The global national economic and financial systems have become in-bred and feed on the same data, information and manipulated ‘facts’ as that digested into the global system by a process of blurred effectuation in manipulation.
  • The global system of shares and stocks found within the global Stock Exchange networks and their operations are not based on bona fide corporate share value but intertemporal speculative trader behaviours entrenched in financial industry opinions of share values, superficially layered and massaged into a common belief database, dumbed down data and blind automated practices in conjunction with shallow superficial thinking.
  • Today there is an ever increasing trend by both developed and developing countries ‘governments’ to manipulate local quoted share values through government influence over publicly listed corporations and the global stock exchange networks.
  • Throughout Europe, many publicly listed corporations have their senior corporate officers selected by policies of established government dirigisme. That is to say, government practices and policies are strikingly similar to policies of governmental “fascism” (a term utilized and practiced by Italy’s Mussolini during the 1930’s).
  • Today, Europe’s adopted system of government, in practice, or the adopted centrally embraced political ideology is a bastardized ’democratized’ communism (liberal socialism); a product of post World War II arising out of USSR and Nazi Germany dictatorial political platforms combined with the Anglo-Dutch free trade system. As a result, corporation’s, their assets and values have become the focused prey of political leveraging. The popular idea that the lawful occupation of the entrepreneurial corporate executive is corporative efficiency and profitability has become merely a maintained illusion and deception for public consumption.
  • For example, the French government after WWII owned the national railway company SNCF, the national electricity utility EDF, the national natural gas utility GDF, the national airline Air France; phone and postal services were operated as the PTT administration. Other areas where the French government directly intervened were defense, nuclear and aerospace industries (Aérospatiale) but where now most of the above industries have been ‘privatized’. Now there appears to be a complete sell-off of major and critical French and other European industries to hedge funds operating on behalf of and / or owned by major European and US banking cartels. These ‘deals’ are not being initiated by the executives of the affected corporations but by the ruling politicians in collaboration and collusion with their banking advisers and banker interests.
  • In other words, the European economic system has become almost solely dependant upon quantitative corporate operations, which are manipulated and controlled by bureaucrats responding to the whims of the government executive (read: political leadership), managed by mostly risk-adverse and inexperienced graduates drawn from the Grande Écoles that have been employed under the guise of entrepreneurial corporate executives – and not for their entrepreneurial skills, but for their obedience and loyalty to their political centers.
  • As a result, European economies have become failures; ad hoc, unstable, superficial and subjected to the political convenience of the bodies politic funded by government directed banks, the taxpayers and staffed by apathetic non-performing workers.
  • Or, in other words, quoted share values do not reflect corporate net worth, efficiency of management or corporate value and where the result is a rapidly declining corporate efficiency and a declining Europe.
  • Or, more bluntly, European “corporations” are not as profitable as they are reported as being. Think Parmalat and its $17.7 billion collapse.
  • The morality and integrity of the European economic structure is being necessarily propped up by itself and “rolled-over” through the financial system manipulation and direction of political preference, du jour, and cannot sustain even if the USA could repair and right itself.
  • There is no need for European organizations to function commercially, and they don’t, due to political preferential policy.
  • Economics are in themselves - a ‘cause’ and hence, money will create its own ‘effect’ – despite that mainstream economists and politicians think otherwise or the belief that politics alone can control economic and monetary-financial behavior.
  • As economics or monetary-financial behavior is a force, they are thusly obedient to Universal principles first and above all other factors. And, where the core universal principle involved is the aggregated demographically expressed energies of human public behavior and the public or societal confidence in leadership.

The United States of America:
  • There cannot now be any doubt remaining that there has been no US Administration more inept, more thoroughly corrupt, more intent on unrealizable hegemony (New World Order - NWO); an Administration more disinterested in USA domestic issues and more ideologically misguided and contorted than that of the current George W. Bush USA ‘neocon’ Administration.
  • The USA current account deficit is approximately USD800 billion.
  • The Gokhale and Smetters Study measure of the U.S. ‘fiscal gap’ is a stunning $65.9 trillion! This figure is more than five times U.S. GDP and almost twice the size of national wealth. A critical factor for consideration in this whole global economic issue and global trend is that Paul O'Neill was the first U.S. Treasury secretary to bother to calculate the "fiscal gap" and as a result, George W. Bush fired him and proceeded to sign every spending bill (while directing the study to be buried) - no matter how preposterous - to come his way.
  • "The U.S. Labor Dept.'s job report on July 7 showed that retailers had shed 7,000 jobs in June, after a loss of 71,000 jobs in the previous two months combined.
  • It is more than unusual that retailers are trimming their workforces when the rest of the economy is growing or, as reported to be growing by George W. Bush, et al? For many years retailers have been the source of significant job creation in the U.S. During the 1990s, department stores, groceries, and other retailers added 2.3 million jobs, or an average of almost 20,000 a month, according to the Bureau of Labor Statistics.
  • Can we believe any of the politically announced interpretations of US Agency financial and economic statistical figures? The answer is clearly - No!
  • On May 17, the Dow Jones plunged 214 points to 11,206—its worst point drop since March 2003. The downward trend is another warning sign of serious troubles ahead. This sudden drop came as a complete surprise to the unfortunate small investors and speculators. The so-called "experts" point at the sudden threat of inflation as the main cause of the recent reversals in the markets.
  • Global insider trading has never been so high particularly in selling off executive stock as are the practices of “spring-loading” and “bullet-dodging” of executive share options.
  • When Bush became President in 2001, the United States' public debt was $5.8 trillion. Today the public debt stands at $8.3 trillion. Of this, over $2.2 trillion is held by foreigners. The United States has a GDP of $12.4 trillion. This gives the U.S. a debt/GDP ratio of 66%, placing it in 35th place (out of 113) on the ranking of the debtor nations. The current account deficit of over 7 percent has long passed its danger levels of 4-5 percent. In 2005,the U.S. government paid $325 billion in interest payments alone
  • Risk is the capacity to compute uncertainty where in the USA today, risk cannot be computed particularly in view of alarming and growing current Middle Eastern conflicts being brought about by the policies of the state of Israel and the obvious lack of any concern by this US Administration as to the state of the global economic system and the USA economic ill-health; other considerations, notwithstanding.
  • The current US Administration appears to be insanely committed to continuing ongoing warfare and domination within the Middle East region and elsewhere.
  • China holds approximately half a trillion US dollars in reserve (total reserves are reported to be about US$800 billion) mainly in Treasury Bonds and while many countries hold US dollars (and debt) in reserves there are numerous indications that Central Bankers around the world are now selling these reserves out in favor of other currencies – an extremely dangerous activity and implication in many ways.
  • China and South Korea (and others) are said to be quietly and actively moving away from their dependency on US debt instruments and the US Dollar.
  • The US economy is now entrenched in hedge fund collaboration, derivative trading, derivative assets, massive debt, intensifying warfare, foreign government interference and sovereign nation occupation as well as a preference for the uncontrolled printing of fiat currency.
  • A decade ago hedge funds managed US$257 billion. Today the world has more than 8,000 hedge funds, managing more than US$1 trillion. In 1998 Long Term Capital Management was the subject of a huge US government rescue and bailout; a hedge fund stuffed with Nobel laureates and now, public and private pension money has started to flow into these funds; a practice previously prohibited by law.
  • In December 1996, US bank credit was $2,769 billion, and savings were $2,214 billion. Now, in July 2006, loans and leases are $5,738 billion and savings is $5,457 billion. In December 1996, required reserves were $48,935 million. Today, 10 years later, and with twice as many loans and twice as many deposits in the banks, required reserves are only $44,139 million, down about five billion. What does this imply, one may ask?
  • The latest 2005 economic statistics show that US consumers depended on new debt for more than 90% of their cash flow during 2005. Most new consumer cash flow now comes from new debt.
  • Household incomes in the USA now carry huge cash deficits as they utilize home ownership as ATM machines and load their credit cards with impossible debt – presumably as a negative (debt) inheritance for their future generations.
  • Some more mind-blowing statistics: Total consumer credit: $1.7 trillion - Credit card debt carried by the average American: $8,562 - Total finance charges Americans paid in 2001: $50 billion - Percent of U.S. households deemed credit worthy by the lending industry: 78% - Number of credit card holders who declared bankruptcy last year: 1.3 million.
  • The present global monetary system was established, successively, by the U.S. Nixon Administration's declaration of mid-August 1971, and the Azores monetary conference of 1972. This created a so-called "floating exchange-rate system," replacing the fixed-exchange-rate system of the original Bretton Woods system. This action was coupled with a radical shift in U.S. policy, away from the previous decades' emphasis on increased physical output per capita and per square kilometer, toward what became known as a "post-industrial" utopianism. The result of that change in international monetary policy was to turn the world economy into a gigantic "Ponzi scheme," which devolved into the extremes of sheer lunacy under the 1987-2006 reign of Federal Reserve Chairman Alan Greenspan's implicitly hyperinflationary use of so-called "financial derivatives."
  • *** There is a growing consensus that global liquidity is drying up. This is not a frivolous observation and it more than strongly implies a disastrous and irresponsible trend by the international banking system in collusion with governments and major international corporations or conglomerates, to hoard global liquidity.
  • The Federal Reserve appears to have now stopped or massively decreased the issuance of Federal Credit and National debt purchase while foreigners have recently commenced decreasing their purchase of US debt. Will this trend continue begs the question?
  • As a result of the foregoing, stocks (share values) will not increase as they will instead go down, just like everything else when money is withdrawn from any overheated, highly inflated, grossly overvalued, and over-indebted market.
  • As suggested above, money is being directed to prop up failed performers (favored), critical (preferred) industries (financial), the war industry and to other unknown political interests of unreported identity, while US domestic industries and infrastructure has been stripped (less than ~15% of the former US manufacturing industry remains and railroads are being dismantled) – and while the available and willing workforce has had little choice but to seek employment in the non-performing, and the non-profitable rapidly expanding US government agency balloon. Government agency employment must be considered, a priori, as another debt contributory machine or merely as an increaser factor to the unproductive national overhead.
  • The reconstruction of the southern USA hit by hurricanes Katrina and Rita has been said to eventually cost in excess of USD200 billion when finally initiated. However, due to the explosion of inefficiencies and corruption already experienced to date in the clean-up effort, some in-side quarters are predicting double this amount.
  • The US Automobile Industry appears to be almost totally bankrupt and is quoted as currently being sold (machinery) lock, stock and barrel to European banker organized interests via third parties for a few cents in the dollar and warehoused outside of the USA?
  • Fanny Mae and Freddie Mac have been stated as being far more than extraordinarily technically bankrupt for almost 5 years. Their accounts are not available to the public and as a consequence they represent an unreported huge unknown contribution to the US national debt.
  • Greenspan’s Housing Bubble appears to have burst nationally.
  • The state of Alan Greenspan’s distorted and layered U.S. financial bubble in mortgage-based securities, represents a monster which could easily and suddenly bring down the U.S. economy alone, and could as well; set into motion a world- wide, hyperinflationary collapse of the present monetary-financial system - outside the U.S.A.
  • The US political folly is in the categorical assumption of American monetarists that sufficient monetary ease can never fail to stimulate sustainable economic growth. With this assumption in mind, they have rewritten the history of America’s Great Depression of the 1930s. American monetarists’ lack of thinking starts with the absurd assumption that whatever happens during the boom is irrelevant. The one and only thing that matters is swift easing when the economy weakens, essentially implying that proper monetary easing solves any possible problem.
  • Economics is a cause arising from human behavior which in turn directly responds to charismatic “leadership” levels or demographic constrained confidence scales; an energy asset portfolio in which the USA now maintains a major current account deficit as indicated by popularity polls and financial statistics. Senator Ron Paul writes that the American people are angry. The religious right lobbies Washington for war continuity! This author writes that the USA is bankrupt.
  • The Nobel Laureate in economics, Hymen Minski showed inadvertently and undoubtedly that economics is a force analogically corresponding to the Laws of Thermodynamics. A fact that has been completely ignored by most mainstream economists today and which represents a global intellectual and social tragedy.
  • However, Minski did state intentionally with great integrity and insight, that attempting to adjust the ruling economic system as per the policies of the Federal Reserve, is fraught with insanity (my words) and can only result in destabilization.
  • This, Minski’s opinion, penned in 1982 or slightly before, is also in agreement with recent scientific reported findings in Chaos Theory which have clearly indicated through laboratory demonstration that attempting to maintain a system of order by a process of sympathetic adjustment only results in the more rapid development of chaos, turbulence and destabilization.
  • “Stability leads to instability.” (Minski) The Federal Reserve have chosen or been perhaps directed, to ignore Minski? However, these latest aforesaid scientific findings are also in conformity with the scientifically well-founded Laws of Thermodynamics as well as economic monetary-financial behavior.
  • The average mutual-fund holder in the USA over the past 6 months is reported to have made four percent (per annum) on his or her investment, on which capital gains and income taxes are levied. But even assuming that the mutual-fund holder pays no tax at all, he or she is still losing at least five percent a year in spending power due to real US inflation.
  • Social Security and government retirement funds are another major problem to the USA economy and the likelihood of a complete or partial failure in honoring these benefits is now expected; whereby retirees will need to return to the workplace in order to survive – a work place where there are no jobs available.
  • These aforesaid obligations amount to $54 trillion. This huge problem did worry former Federal Reserve Chairman Alan Greenspan. In the autumn of 2004, he told Congress: "As a nation, we may have already made promises to coming generations of retirees that we will be unable to fulfill." (my emphasis)
  • The US Medicare System is not only a monetary-financial fathomless pit; it is also an ineffective and inefficient system serving mainly only the medical industry and the political machinery.
  • The “neocons” ideologist strategy that is running the USA White House policies does not appear to have any strategies or policies for serving US domestic interests; economic, infrastructural or social.
  • Science, that is to say, creative, innovative and heretical scientific pursuit has been completely derailed by the Bush Administration in favor of the political whim and illogical political preference.
  • Asia is preparing to initiate the Asian Currency Unit (ACU) recently said to be now prioritized due to the expected impending collapse of the US economy.
  • Which brings rise to the domino effect that when the sudden collapse of the dollar does bite into effect, the U.S. appetite for imported goods may vanish? The China export engine may then seize up and its fragile banking system may collapse as well, under another spate of new non-performing loans. The idea behind the ACU is to buy some insurance, however inadequate, against all of this. However, China is hedging this possibility by now and for some time, intensifying the export of its goods to more countries around the World in a unique local warehousing and door-to-door sales strategy via ethnic Chinese ‘tourists’ and other nominated foot based buyer / salesmen. By observation, an effective strategy.
  • South American nations are developing a South American Development Bank in an atmosphere of regional independence from US influence and which has brought much aggravation to the White House, and their neocon activists; much as has the early retirement of the IMF loans to numerous South American nations.
  • The world reserve currency concept is tied to the notion of a single all- powerful superpower. That is a 20th-century idea that is going away. It is also tied to the idea of a single economic powerhouse striding atop the rest of the world. That idea is also going away.
  • While Keynesians see the rise of gold as temporary - and will continue to assert their naysayer views as gold rises further - it will soon come to light that the 'world reserve currency' idea was the temporary thing; an anachronism of the industrial age.
  • Asia's relative lack of capital market structure - its underdeveloped backbone of lending networks - will make a de facto gold standard that much more attractive. By going straight to gold, Asians get the "trust" that is already built into the metal...they can skip all the financial engineering, or get to working it in later.
  • Gold (and silver) has intrinsic value. Gold can also be bought on the streets of most Asian countries; by anyone.
  • Gold also steps up with a number of advantages. It is already regarded as a hard asset safe haven and a key barometer of financial anxiety. Its value is easily understood and appreciated by the masses. It can function without the need for a complex financial system to guide and regulate transactions.
  • Asia could well be the vanguard for a new gold standard because of internal dynamics. China is exemplary in this regard in that Chinese citizens regularly save as much as 40% of their personal income. This is in large part due to the lack of a safety net in China. This mindset strongly favors a physical, storable asset, like gold.
  • The price of gold is also being subjected to manipulation by major financial elements in what appears to be concerted and collaborative efforts.
  • And again, Asian personal savings are extremely high - across the board.

The Environment: Global Warming
“Global Warming” is bringing massive deforestation to Mediterranean Europe – from Spain to Turkey and beyond; Africa (a complete mess), and to the eastern European states, China, India and the Unites States also. This has happened before in written history. Crop losses and cereal nutrient deficiencies are now being reported almost daily as being devastating in many countries, including modern Western Europe.
Aquifers have been pumped almost dry in every country of the World including the United States and China.
Glacial melts are hastening rapidly and non-linearly to the surprise of most mainstream “experts”. While mainstream scientists argue to and fro for research funding; one asks who is right, when they all mostly ignore the scientific facts while confining the arguments to an alignment with politically correct rhetoric. There are only a few that have the right picture and it is grim, although it is only to be considered as ‘change’ and without all the consensual, mainstream scientific emotional baggage.
Water worldwide is widely polluted and often too polluted even for industrial usage in developing countries, where industrial usage tends to take priority over human consumption and agricultural; agriculture also needs clean water and which has to date, depended mainly, in Asia, on monsoons, that have been for some time failing to be dependable and timely.
Climates are changing worldwide and crop failures are occurring across the globe. While scientists argue with great use of dialectic sophistry, the US Administration ignores all warnings; World “leadership” plays only ‘lip-service’ to the implications. The message here is that environmental factors will also weigh in heavily, and most seriously impact the global economies of most nations and where these impacts are currently taking on a rapidly increasing broad appearance of deadly characteristics.
Mainstream scientists have no answers – they also appear to have no understanding of the scientific processes and principles in play – mainstream scientists just appear not interested in ‘causes’; they appear to prefer to search for that non-existent and illusive “silver-bullet’ that could instantly propel their careers into the halls of fame.
To this writer, the global oil issues appear to be a ‘red herring’ spun for a variety of purposes and which is overtaxed by many governments. Oil companies have reported massive and “indecent” profits over the past few years which appear having occurred in collusion with the industry’s lobby efforts within the White House, the chambers of Congress and the Senate.
Notwithstanding, when the US economy does finally spiral downwards, oil prices should also eventually follow suit, that is to say as demand falls. It seems as if it is not the oil, per se, that is the issue at stake but ‘who’ controls the world’s remaining resources that is the prime issue before the US political and lobby agenda. It has been said that the key to the ‘neocon’ New World Order (NWO) is the control of the world’s resources - including agriculture and water.
For the short term, oil speculation will obviously continue as good lively sport but oil prices will remain highly manipulated and dependent upon the US war apparatus and all that hangs off it and it is expected that the price per barrel will advance well past $100 in the very near future.
I believe that the greatest issue before global economics today, in the areas of food security and national political issues will soon become ‘water’ and I am not the first to state loudly that future war, and mass migration of peoples may be founded in the rising need for clean drinking water for human consumption and agriculture. Australia now is considering the treatment of sewage to supplement their diminishing water supplies; a controversial issue.

Summary and Conclusion:
The reader is encouraged to note: that which is outlined within this brief dissertation are mainly ‘effects’ and not ‘causes’ - the ‘causes ‘be’ elsewhere. That is to say, those ‘causes’ that are collapsing the global economy are the subject of natural scientific Universal principles; human behaviors; those scientific principles that men fail and are encouraged to neither seek nor acknowledge.
What this writer emphasizes in our direct relationship with economics, is that analysis should not rely on ’spin’ or sophistry to make decisions - nor to found analysis, and where today, throughout the whole world, on the TV and radio, in the newspapers, throughout industry (particularly the financial industries), the world is alive with spin and duplicitous sophistry. Normally, in terms of economics ‘spin’ starts at political levels and then flows or is shilled downwards though the financial circles and then into industry; where, everybody “knows for sure”, when in fact, nobody knows at all, but abets this process anyway. As such, ‘spin’ or sophistry becomes an industrial paradigm and then onwards to become dogma - which everyone must defend, a priori, and despite not knowing from whence the dogma originated, it (spin) suddenly becomes concretized and then, adopted as official policy.
‘Nothing is as it appears to be’ is the first rule that should be hardwired into every financial analyst, followed by, a priori, heretical research - where ‘heretical’ means to question everything – nothing is to be ‘assumed’. Solutions can only be found in the core principles of ‘causes’; not in ‘effects’.
Investments based on trends and beliefs within the paradigms of industry in periods of linear risk (computable uncertainty), unquestionably brings normally expected profits within a framework of minimum risk but not necessarily extraordinary or sustainable returns; where in periods of uncertainty the entrepreneurial investor needs to establish new relationships and “buck the system” by thinking outside of the normally encapsulated paradigms and dogma; policies. Profits are traditionally and correctly tied to risk and the computation, and the expression of that risk, lies solely within the eptitude, skills and experience of the real entrepreneurial investor.
But, during the current period leading up to the end of the Year 2006, one must especially now, courageously confront the pending meltdown probability, as declared herein, despite if one is either an entrepreneurial or an institutional investor. This confrontation must ensue with new vigor, sensitivity and embraced intensity while establishing a clarity of rational vision that will not only enable survival, but will opportunistically result in both short & long term prospects bearing offerings of sustainable profits; a vision for future events. Non-risk-adverse investors need to find the new transactional ‘boundaries’ for it is on these boundaries where new exciting possibilities and opportunities emerge. New ‘action’ and excited phenomenal activity always appears initially in the wild, or ‘on the emergent boundaries’ and it is here where the Now & future is to be found and grasped.
The world as a whole is currently teetering on the edge of the greatest financial collapse in modern history but this may not be a bad thing for those that are prepared and willing to confront the issues with a fresh method of thinking; a new perspective, innovative insight; a new practice in the collection of critical facts and clean alternative methods of heretical risk analysis. Couple the aforesaid with a new investment focus in arising critical industries such as water, agriculture, technologies, energy, communication and renegade applied science – all entrenched in a strategy of viably run (read: long term profitability and growth) non-publicly listed venture companies – through shareholding, strategic investment, partnerships, or other trust founded relationships, rather than (or in addition to) the usual casino dependence of manipulated share trading - so that hedge strategies are thereby created to leverage and bridge coming events.
In this USA-does-collapse scenario, Europe soon follows as well as those countries that are totally dependant upon Europe and the USA for their existence. But there are possible exceptions, such as Australia which sailed through the 1997 crisis unaffected and has not looked back since, and of course, many countries in Asia where there is real energy in the human pursuit of wealth and values through work, intelligence, intellect, networks and above all, trust in transactional relationships.
Asia is where the ‘large numbers’ are to be found; where two thirds of the global populations are to be found; where the world’s rice production is, where human energy is concentrated through demographics and hence where the largest world markets are to be found. Almost everyone in Asia has a hand phone; and savings; and food. The power and energy of Asia is enormous and overwhelming while the potential is only humbled by the amount of human expended energy, endurance and endeavor. Asia is where Buckmaster Fuller’s economic system of “ephemeralization” is found to be naturally expressed almost comprehensively throughout the region.
Asia will pain indubitably from a US collapse as will Australia but, most Asian countries learned important lessons during and after the 1997 ‘bust’, so countries such as Singapore, Malaysia, South Korea, Indonesia and China (and elsewhere) as such, represent attractive investment centers for the astute entrepreneurial investor that has learnt valuable lessons from the near past and is prepared for the dire circumstances that will soon unfold on the World stage.
To be forewarned should mean - to be prepared.
The Lesson to be Learnt:
A new global economic system demands to be now created; designed and established in accord with Universal principles and with great urgency; a system that accounts for and is concordant with the dynamics of the Universe and Nature as well as the human condition and social behavior; a system that is scientifically founded as opposed to being integrated into and driven by static elitism, and specious pseudo-ideologically based dogma and sophistry.
However, this subject itself is broad and complex; far too complex and lengthy to be included in this brief paper- but, in simplistic terminology, a new global economic system involves its development and establishment through a dynamic solution that rejects unfounded assumptions and sophistry by the embrace of correct perceptions and where the prime objectives are the health and happiness of all men, women and the children of the future generations. The rest will arise from the heretical pursuit of science expressed in technology.
About the Author:
Peter John Bolton is an Australian qualified professional who understands the historical origins of the geo-political–ideological economic events of today beginning circa 700 b.c.e. when the seeds of today’s modern civilization were planted by the ancient Egyptian sages influence upon Solon, the Pythagoreans and Thales et al, of ancient Greece.


Income Protection Cover said...

Being able to organize our assets and finances is a good way to prepare for a debt crisis.

Anonymous said...

Hey Income Protection....
Easily said then done.
If banks are illiquid, the deflationary effect just starting, a threat of a cashless society, no monies to pay pensions and physical gold subject to seizure (as with cash) then we have a Minsky effect, pure and simple.
The problem in this scenario is that no one can afford to buy a fucking Picasso for $20 let alone $160 million....umm $5 maybe.
So I will stick to physical ISD for the time being and when low for gold hits, then will convert slowly to 1oz gold coins SA variety.
At least that currency can be moved between borders.
Cheers and have a nice day....
Good article Pierre' as per normal put mine to shame ;0))

About Me

My photo
I am now considered too old to be of further threat but I have survived three institutional attempts to prematurely end my life during my career. The current Global Systemic Collapse (GSC), better described as a 'global leadership collapse' (GLC), is a socio-economic phase-transition brought about by the total failure of global "leadership", to find even the most basic of foresight and compassionate sensitivities to balance the imbalances and injustices that they have wrought on the World. Governments' are now attempting to create an exclusive risk-free corporate environment. This delusional ideology of pure insanity, cannot sustain. This sought "risk-free' corporate banking environment is to be achieved by transferring all risk and all financial losses to the tax-payers (“Main Street”) while maintaining a highly secretive cabal of global elites and ruling politician and bankers. The simple truth is that our "Economic Theory" is a fatally flawed, faith-based farce, and "leadership" do not have the necessary intelligence nor intellect to confront the issues du jour. There are now only Heretics and Fools, but, there is always a “choice”.