Don't care much for Steve Quayle but I liked this guy since he was on Gold-Eagle.com he knows what he speaks of.
They are blowing out the economy because they are grabbing what wealth and assets they can. The collapse is intentional-we are NOT meant to survive it.
Plan accordingly...
http://stevequayle.com/News.alert/10_Money/08_Mac_Attack/100401.lighter.fluid.html
Spraying the Lighter Fluid
I have a donation based blog at www.preparingforthefuture.org. Click on the board index and go to the section called, "How to Get Doomer Doug's Password" for contact info. I have also posted a sample of my blog writing there.
April 1, 2010
Doug McIntosh
© SteveQuayle.com
Much of the media shill hysteria over "green shoots" and "economic recovery" may be explained by a simple understanding of what happens during a summer barbecue. The old fashioned American kind, with the charcoal briquettes, the lighter fluid and the surge of flame 8 feet into the air. The surge is 12 feet if the beer has been flowing freely I might add. What that criminal blob called the Federal Reserve has done the last 18 months or so, since October 2008 in the second spurt, has been to hose down the economy with the lighter fluid of low interest rates. It's true Mr. Magoo didn't spray lighter fluid on the briquettes back in 2001, so much as he poured a five gallon can of gasoline on them; with predictable results. Mr. Magoo, Alan Greenspan for those of you with short attention spans, created several bubbles that way. Ones he forgot to mention in his recently released memoirs, like the real estate bubble for instance. Mr. Magoo, after doing his best "who me?" routine has hidden from public view even more than Mr. Global Warming himself, Al Gore, in recent months. Last I heard, Mr. Magoo was in Dubai trying to enjoy his leisure time building sand castles, the real ones versus the ones he built into our economy during his 20 year reign of economic terror.
But I digress, although Mr. Magoo was much more fun to abuse than our current Fed clown in chief Braying Bernie. Braying Bernie reminds me of the Disney movie "Fantasia" where Mickey Mouse, the apprentice, can't figure out how to stop the brooms and water buckets. Braying Bernie strikes me as a guy who really has no idea of what to do, but likes the trappings of power so much he wanted a second term. Fool me once, shame on you, but fool me twice shame on me. Considering the truly vast amounts of lighter fluid being poured on both the American and global economies, there should be more of an impact. Besides the Federal Reserve squirting lighter fluid on our economy, we have that whole stimulus thang a ma jig passed in the Spring of 2009. As I have discussed before, the main point of the Federal Stimulus program was not to stimulate the economy, it was to keep state, county and city governments from collapsing in the summer of 2009.
If the goals are understood, then I can help explain why the system didn't crash in the summer of 2009. The reason was between the Federal Reserve, and our esteemed Fuhrer's Stimulus program, just enough money was put out there to prevent a total collapse. Of course, if the true point was to stimulate the economy, they could have spent 2 Trillion dollars rebuilding bridges and railway lines, or even giving every taxpayer a check for $10,000, or things of that kind. Since actually stimulating the economy, or helping the middle class wasn't the point, they did nothing of the kind. The whole point of the stimulus program was to buy time for the Federales. Time to complete the raping and pillaging of the middle class by Wall Street and the Banksters; time to allow our esteemed fuhrer Obama the First to impose his Marxist dictatorship and finally, time to prepare for the looming social anarchy and let the New World Order use that chaos to its best advantage. I have said it before and I will say it again, the NWO, for some strange reason, actually thinks it can surf the chaos it is allowing to happen. Why they think they can ride the tiger without getting mauled is one of those things I simply do not understand. It may be stupidity, or it may be arrogance, or they may simply not understand the forces they are dealing with, but whatever the case, the NWO is going to be mighty surprised when the populist backlash explodes.
It is clear to me the whole point of both the Federal Reserve's actions and the so called Stimulus programs were merely to buy time. It was to put off the collapse for another few months or years. Personally, I think they have bought themselves about 2 years, assuming the start time is the first bailout in October, 2008. I think things will really start to fall apart around Labor Day 2010. It is also very clear to me the unemployment extensions, food stamp increases, health care funding were solely designed to keep things together enough to make it through the summer months of 2009. For instance, the only reason California didn't crash and burn last August was federal stimulus money gave it just enough of a lifeline to avoid economic death. It is like one of those old movies with the diver in the helmet and the hose. The hose has not been cut off yet, but it is getting kinked and the air flow is being reduced. A good metaphor if I have ever heard one. We are in the early stages of oxygen deprivation, not quite unconscious yet, but starting to get blurry in our thinking. Credit and debt, like air to the diver, is the lifeblood of our economy. Despite the Fed's .25 interest rate, the banks aren't actually loaning money or creating any new debt; instead, they are using it to prop up their horrible balance sheets. Balance sheets, no matter how bad they look, are still much, much worse due to the whole mark to market accounting fraud. The entire US banking system is insolvent and has been insolvent for the last 18 months at least. When you have the FDIC forcing banks to prepay their 2012 fees, you can understand what I am talking about. Even with the FDIC now directly relying upon the US Treasury for bailout money, it still won't be enough to deal with the thousands of insolvent banks. Any money the Fed creates, or the US Treasury issues as bonds, is either being stashed in bank vaults or being vaporized down a black hole of endless debt problems. The US economy is about 11 Trillion a year in GDP. The losses in residential and commercial real estate alone equal that. Braying Bernie is pouring his money into a sink with the stopper out. Whatever he creates, or Turbo Timmy creates in US debt, simply vanishes into a black hole never to be seen again in any productive economic sense. Any money the banks have is not loaned out again, but hoarded against present and future debt losses.
Finally, we are now in a situation where the lighter fluid is gone, the charcoal is almost turned to ash and nothing has been cooked. A cookout without any steaks being cooked isn't much of a cookout in my book. Obama is running 1.5 TRILLION yearly federal deficits. The foreigners are no longer buying our US Treasury Bonds; indeed, are starting to dump them. The Federal Reserve is buying up Federal debt itself like a dog eating its own vomit. It is clear to anyone with an IQ above the single digits this is a policy which has no future. The only issue is when, not if, but when the game ends. My guess is around September 30th, when the announcement of fiscal 2010's 1.5 Trillion dollar deficit, as well as the expected 1.5 Trillion dollar fiscal 2011 deficit is made. At that point, two questions will be asked: first, where's the steak and second, where's the money for the third 1.5 Trillion deficit in a row coming from? I should add the current federal debt is 12.6 Trillion. It should be close to 13.5 Trillion by September, 2010, with expectations of closing in on 15 Trillion by September 30th, 2011. We are then looking at GDP to federal debt ratios of between 100% to 125%. We are also looking at deficit to GDP ratios of over 10%, just like Greece for instance. The EU requires a deficit to GDP ratio of 3%, so the USA is well over that right now. We shall have to deal with the consequences soon enough.
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