The Worst Financial Crisis Since the Great Depression: A Short History

Bob Chapman gives us a brief financial history and outlook:  “If you look back into the mid-1960s you will see the beginnings of today’s financial and economic problems. Inflation was beginning to raise its ugly head as clad coins came into being. We were collecting all the pre-1964 90% dimes, quarters and halves we could find. As we moved into 1968 few were to be found in circulation. War in Vietnam was draining the country and the buffoon Lyndon Johnson, another socialist, was leading America into the Great Society. What he was really doing was taking the US into socialism and debt.

“It got so bad that countries were demanding gold for dollars; particularly aggressive was President Charles DeGaulle of France. Then the beginning of the end came. On August 15, 1971 the dollar was moved off the gold standard and the dollar became just another fiat currency.

“Here we are almost 40 years later, and the dollar has lost 95% of its purchasing power and two breadwinners are needed in every family, as opposed to one in 1971. That is when social engineering began, as we know it today. We’ve seen many losers walk across the stage over the years – all with either their hands in the till or exuding incompetence. Most of the bright still excelled but 55% of Americans slipped into stupidity. What is sadder is they think they know it all, but they do not. From 1976 to 1981 gold and silver warned us of what was coming. We have had cycles of inflation, buildup of debt and a general degeneration of society.

“We had a purging of the system in the early 1980s but it certainly did not last long. Real estate collapsed starting in 1988 and the effects carried over into the early 1990s. During that period those in control had a great opportunity to again purge the system, but they refused to use that option and went right back to doing what they had done in the past. Gold and silver fell out of favor and we were subjected to the dotcom boom, which ended in tears for so many. Inflation was about, but worse, a great deal of wealth had been lost. We were fortunate enough to call the top of the market in the first week of April 2000, just two weeks after the actual top. Only 2% of economists, analysts and newsletter writers called the top. Being mostly outnumbered by the losers has its benefits. Presently 95% believe gold and silver are headed lower. Considering their track records we’ll stay long as we have been since the second quarter of 2000 when gold was $262.00 and silver was $3.50.

“Many professionals are looking for answers as to why the US economy and finances are in the state they are in. We have been pointing out for ten years that the Fed is the problem, but those who realize this are afraid to speak the truth. They won’t have their jobs long if they do speak out. Low or zero interest rates may have helped government and big business, but it has not helped small business and the unemployed. Are we to believe that the Fed had nothing to do with the real estate collapse? Of course they did – they planned and executed it. The zero interest rate policy still in place has created more grievous damage than any other aspect of economic causes.

“Framing failed policy in the context of the system and calling it mistakes and incompetence doesn’t cut it. The problems we have seen since 2000 were planned that way. Investors and professionals do not want to hear that. They do not want to look behind the facts because it’s not popular, and they may have to tell the truth, and that is very inconvenient for an employee’s financial health. Why do you suppose the Fed didn’t want anyone to know to whom the $13.8 trillion was lent to and why, and what collateral was presented?  A great part of the loan packages went to banks and others, which had been buyers of MBS from US syndicators. We would say the next logical step in this charade would be to clean up the rest of the toxic waste in the US and Europe and then come up with the $8 trillion to bail out Fannie, Freddie, Ginnie and FHA. We believe that either legislation or fiat order has to be set in motion at 5-1/4% to bring home the $1.9 trillion America’s transnational corporations have stashed in the Cayman Islands and in other tax havens. You notice you cannot do that, but these anointed corporations can. They can use the funds to again prop up the stock market, perhaps make the market go higher, make their company’s stocks go higher, so they can again cash out their options making billions and to help fund the Treasury, Agency and perhaps buy MBS-CDOs at $0.15 on the dollar. Don’t forget elitists control all these corporations or those who manage these firms are under elitist thumbs. We see this move as inevitable with the Fed already offside some $1.2 trillion. Eventual assistance to the housing agencies would fit perfectly with our prediction seven years ago that these agencies were broke, they would be nationalized, which they were, and funding by the Fed would lead to eventual 55% control of the US housing market. Over the next two generations almost all real estate half will belong to the Fed and government. This way they will be able to tell people where they will live and work and a myriad of other controls will be in place.

“Transnational conglomerates contend they need the ability to avoid taxation of the US, which runs from 35% to 40%. In Europe the range is 24% to 30%. Individual US taxes, after state and local taxes, run about 35%, but in Europe if you add in VAT the average is 70%. Therein lies the difference. The only way to deal with the problem is to set up tariffs to protect US jobs and industry from predators such as transnational conglomerates. The tariffs would fund government and debt and there would no longer be any reason to move jobs and industries offshore. That means the majority of jobs and industry would return to the US. Under current law there is no reason for US corporations to invest in the US because it is uncompetitive. We wrote about this in 1967, but no one was listening.

“If all this wasn’t damaging enough, most American municipalities are facing bankruptcy. Police, fire and social workers are already being eliminated, some with 15 to 25 years on the job. This dislocation is going to be devastating in communities. This is the result of pure incompetence and we predicted this result three years ago and recommended the sale of municipals. We must say that salaries and benefits at these government levels got totally out of hand. After 30 years on the job some retirements are $150,000 to $200,000 a year, which is totally absurd. This new wave of ongoing layoffs will add to core unemployment. Those lucky enough to find jobs will do so at a rate of 1/3 to 1/2 of previous salaries. This is why America desperately needs tariffs on goods and services. Unfortunately tariffs are a long shot as the elitists behind the scenes have purchased 95% of the members of our House and Senate and no such legislation could be passed. Then there still is the revolving door between Wall Street and the Fed and the Treasury. The latest in your face appointment to fill the shoes of Rahm Emanuel, as White House Chief of Staff, is Mr. Daley from JPMorgan Chase’s Midwest branch. Doesn’t the public see what is going on? Or do they care at all? We see 55% of know it all Americans not caring or being too dumb to understand.

 “In the world of CNBC, CNN and Bloomberg up is down and down is up. It is also evident that governmental deficits will never be liquidated, unless, of course, Washington steals Americans’ $6 trillion in 401Ks and IRAs, which they have every intention of doing. The bill has been prepared and our politicians and Wall Street are waiting for the right moment to jam it through. Just think of it, a lifetime of work wiped out in the blink of an eye. If you have these plans you had better think about liquidating them before it is too late.

“Gold has become again the world reserve currency. It is just that few realize the transition has already taken place. For the past 11 years every major currency has fallen in value versus gold from 13 to 20 percent annually. Versus silver, the figures range from 17 to 25 percent. This is a clear-cut ominous trend of a flight away from all currencies to gold and silver and quite a flight to safety. This movement by worldwide investors cannot be ignored. There obviously are many people that see what we see and in that process are dumping currencies for gold and silver related assets. Unfortunately, Americans are far behind in these changes with only 2% of the population participating. Ladies and gentlemen the second stage of the gold and silver bull market has just begun. Prices have fallen from their highs, what a great time to buy” [from The International Forecaster, ].


Filed under Economy, end time prophecy, Federal Reserve, One World Government

4 responses to “The Worst Financial Crisis Since the Great Depression: A Short History

  1. Gene R. Smith

    “Come now, you rich, weep and howl for the miseries that are coming upon you. Your riches have rotted and your garments are moth-eaten. Your gold and silver have rotted and their rust will be evidence against you and will eat your flesh like fire. You have laid up treasure for the last days. Behold, the wages of the laborers who mowed your fields, which you kept back by fraud, cry out; and the cries of the harvesters have reached the ears of the Lord of hosts. You have lived on the earth in luxury and in pleasure; you have fattened your hearts in a day of slaughter.” {James 5:1-7}

    Your article heralds the arrival of the above prophecy, but your implied advice will not, in the final hours of the tribulation, preserve anyone’s wealth.

    Here, then, is the Lord’s pertinent advice: Matthew 6:19-21: “Do not lay up for yourselves treasures on earth, where moth and rust consume and where thieves break in and steal, but lay up for yourselves treasures in heaven, where neither moth nor rust consumes and where thieves do not break in and steal. For where your treasure is, there will your heart be also.” And I might add, if your heart is not with Him, your person will not be with Him in heaven.

    Now that we are in Joseph’s seven years of famine which began on September, 2001 exactly 7 years after the 7 years of international prosperity began along with the heralding of the coming fall of Babyon on Sept. 1, 2001, those of us who have laid up treasures during the years of prosperity have a wonderful opportunity to transfer our assets to the “heavenly” bank by using our monies to lovingly meet the needs of first our families and then to others in need and to spread the good news of His soon coming during this “time that tries men’s souls”. No other investment strategy will work!

  2. Gene, I totally agree with you, and thanks again for your comments. The key word in the Matt. 6: 19 passage is “for yourselves.” He is telling us to not lay up treasure to “consume it on our own lusts”–to selfishly serve ourselves. I am sure that God does not mean for us to not prepare. All the patriarchs had gold and silver as their back up survival plan. Think of Jacob and his sons going down to Egypt.

    Our people are “destroyed for lack of knowledge” as to what the rich men are really up to. I include these articles by other writers at times to share knowledge about what the super-rich are up to. He did say, “Be wise as a serpent and harmless as doves.” A brother or sister in Christ have crucified the flesh with its affections and lusts [for money for self].

    Gene, surely after reading my articles you knew that. But I offer this comment to clarify to new readers my position in all this. Let’s put it this way. Those without real money–precious metals–will put themselves and their loved ones at great risk when it comes to not being able to buy or sell when they set up their new world order. Having universally accepted real money [gold and silver] will take us off the worldly grid and enable us to not play their game…KWHancock

  3. William

    Thank you Gene…may this just be seen as a way to support what you have just said.

    Psalm 19:10, 11

    The god that is worshiped by most men is gold. And if gold is not in the literal sense that for which they live, their god is that which gold can buy. And the sweetest thing that they know is honey. Such people cannot agree with David when in Psalm 19:10-11 he writes concerning God’s judgments, “More to be desired are they than gold, yea than much fine gold; sweeter also than honey and the honeycomb. Moreover by them is Thy servant warned: and in keeping of them is great reward.” By judgments David means that which God judges to be true and righteous. In other words His law, His statutes are a very precious possession. If we have them in our hearts, we are very rich. If we delight in them, they are sweeter to us than any earthly food or drink of this earth.

    Made in God’s image, and created to glorify Him, man, when his soul is converted by the Spirit of God’s Son, will see gold and all that it can buy, and all the food delicacies of this earth, as God-given means to serve and glorify Him. He will look beyond the gold and honey. He will desire the gold only as an instrument wherewith to serve and glorify God. Tasting the sweet delicacies God gave him, he will taste the richer love and grace of God in Christ. These earthly creatures, when God’s law has made us perfect and converted our souls, will cause us to lift our eyes above these temporary creatures to look through the heavens to the God Who made all things for His own glory.

    By that law man will be warned not to make gold his god, and not to live for the pleasures of the flesh. He will be given the upward look, so that his enlightened eyes see the Creator and not simply the creatures which He made for His own transcendent glory. And of these judgments of God he will sing:

    They are to be desired
    Above the finest gold;
    Than honey from the comb
    More sweetness far they hold;
    With warnings they
    Thy servant guard,
    In keeping them is great reward.

    Now we who are His who have been made partakers of the TRUTHS of Gods Word…who have chosen to seek what is described above rather than Gold and all the pleasures that it can buy…know this…those who have made Gold and the pleasures it can buy, their god…are haters of God. And they are haters of us who obey God…and we will suffer persecution as we stand for these truths where we chose to love not the world…those who love the world hate us, though it is god they hate…their hatred for god will not only be in there refusal to turn from their gods they serve but in their continuance to serve these gods and embibe in the pleasures of this world and all they can do to sustain their love of sin…they will see us as their enemy and the reason for all the trouble in the world…and the masses will follow them…and it is at this time the anti-christ will appear openly for he will be sen as a wonderful leader offering the world the leadership to world peace and an end to all the misery…and they will worship him…the anti-christ…and all those who will not worship him…who will not deny the Lord Jesus…they will not be able to buy or sell and will not have any way to have food and all the things one needs to survive…but what we will have is the joy…if we remain faithful and do not deny our Lord…of knowing just a little of the suffering that our Lord endured…and the taste that comes to those throughout the ages…who chose as to suffer as others who were martered for their stand for God as did Moses as we read in Hebrews 11: 23 – 40 and continue reading in Hebrews 12…where we find the joy that awaits those who God has removed the blinders; who see their sin and know the joy of forgiveness and the promise to come…count it all joy…that God has chosen us…has given us the faith where we as a result will never have to fear being ashamed of what God will say…to God be the glory. Can you just imagine in the end times when we are being accussed by sinners and subjected to all they will do to us…to be singing and praising God…so be not deceived…as clearly as His Word tells us regarding Gold and Rubies and Diamonds and how wrong it is for man to make these their god…there are so many who will…and for those of us who chose to turn and serve (obey) He who is the author of Scripture…most will not…and many difficulties as mentioned above will occur…for those who are on the Lords side…just as you are now seeing from those (friends and family) who have rejected you now for your decision to turn from serving self to serving God.

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