Posted by
FRN Newsletter on Thursday, January 13, 2011 8:20:11 PM
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“
IF, YOU are reading this, Then you are The Patriot America has been waiting for ”
Date: 01.16.2011
Words from the Several States
. . . .
Ark of Safety (2011), the preparations continue . . . . .
A quick review:
Everything in the original Ark of Safety applies. If you are new to this website and newsletter, click on the site, go to “The Movement” page and read The Movement parts 20 to 31. This will give you the dialog now advanced and the context of where we stand.
Originally this was going to be a self-contained newsletter, giving a basic layout for preparing you and your family for the inevitable. Now it has become something far larger, far more important.
Ark of Safety (2011) Introduction:
We are now one whole year into the actual de-basing of the U.S. Dollar. A process that is accelerating and on a hydraulic course that I can barely comprehend. Let alone analyze and put into FRN context for discussion and action.
Everything that follows is based on what I term the thought process and mental awareness, of who, why and when this is being constructed to happen.
In short the coming economic calamity for America, is planned, in motion and has a very real sense of evil to it. Evil in this case, defined as actions taken solely for the gain of global power, regardless of how many billions will suffer.
A “Blade Runner” America is evolving right before our eyes. I truly feel like a very lonely economist right now, as I see no one else out there, properly cataloging this event, and offering real world preparations for survival. It seems later rather than sooner, before more economists find the courage to present the truth and dive into this very large trench war.
Derivatives:
They have become, in many ways, a living thing. Over the last year I have tried my very best to really understand not just how derivatives work, but why they were created, and where they will lead the world.
They have become these incredibly large and complex batched financial vehicles. Some are bigger than the total assets of large banks. Some have more speculated value in debt, than the GDP of many small nations.
My fears about derivatives remain absolute. It is dark money, wrapped inside an unregulated world of globalize reckless speculation.
I know for a fact, that Goldman Sachs, Morgan Stanley and the Federal Reserve Bank of New York, are directly involved in the daily management and direction of the largest components of derivatives. This fact alone keeps me awake at nights.
I know for a fact that former FED chairmans’ Paul Volker and Alan Greenspan laid the groundwork, and infrastructure for derivatives. They also laid the path for their advancement as financial vehicles that could be speculated on, used within hedge funds, sovereign wealth funds and as bundled debt assets. I would encourage everyone to go to the federal reserve website and research FOMC monetary policy from 1986 to 1989. It is this three year period that in my analysis, most of the derivatives infrastructure was incepted. Fair warning right here and right now. It is a lot of material to research and absorb. It will take you time but it will give you an understanding as to how serious the derivatives market affect will be on the planet. As a possible primer for that research, I can suggest you study some of the economic papers put out on derivates by the CATO institute, RAND and the Heritage foundation. I took a different course of research for my personal understanding of derivatives creation, but I think these three resources are the best for general consumption. Please, I ask of you, as a fellow student on all this, if you come across other sources for derivative understanding, send it to me. I am truly open to as many resources that can be made available.
In short, there is no short answer to how derivatives will play out. Overall they are to large of a monetary structure to break down, and I honestly think that no one person on this planet fully understands how they will play out.
After a full year of trying to understand the reasons behind them I will offer this theory as the end game, if you will.
There is roughly 900 Trillion dollars in multi-layered derivatives and bundled financial vehicles. The majority of that is speculative, debt based and unstable. I have seen some numbers over the last year that put the global derivatives total closer to 1400 Trillion dollars. Those are estimations and I cannot find any treasury, federal reserve or private sector information to substantiate that higher number. It doesn’t mean the figure is not valid, but I caution you it is a high end estimation. Again, this is the world of dark money, that is non-regulated. I prefer we talk in terms of the 900 trillion dollar mark, just so that the discussion and planned action are more intellectually honest.
To give you an idea of just how much bundled debt this derivatives market is, the total value of the planet, if broken down into measured and assigned assets of EVERYTHING, is 2800 Trillion dollars. So in context, we have an non-regulated dark money derivatives speculation market that is 1/3 of the total value of all the assets of the planet.
I don’t know about all of you in FRN readers-ville, but your publisher sure needs a break, to let those numbers and last five paragraphs digest. I am not joking.
Its moments like this, when putting together a newsletter of this magnitude, that a bottle of high quality Polish Chopin Vodka should be on standby. Again, I’m not joking.
Back to my theory. At some point the derivatives market has to be addressed. Governments and central banks around the world bought into this puzzle palace of layered speculation, and now the entire world will be transformed because of it.
I believe at some point in the next 9 to 3 years, the people that govern the global banking system, want to use a world currency to monetize all the debt components of derivatives. I think it will be rolled out and presented to us little people, as the only way to finally stabilize global debt, currencies and trade imbalance.
Of course this would be a direct violation of article one, section eight, clause five of the Constitution; but these people surely are not concerned about such things as American freedom and liberty. Let alone individual sovereignty.
I wish I could offer more for you on the end game, but I cannot, beyond this of what I know to be one sound theory. I simply need more time and years to figure it out.
I do know I’m on the right track, trying to understand the hydraulics, engineering and mental impact. Those are the roads to understanding derivatives, as with all financial vehicles.
9,869 different ways to bail out a nation:
We are bailing out nations now. That is also an end game. I say again, we are bailing out nations. This is something you want to take into your brain right now, and maybe stop reading for about 30 minutes. Sit back and really absorb the truth of what it means that entire nations are on the verge of bankruptcy.
Portugal and Spain are probably next. Though I do not see how there could possibly be enough money on hand, in the EU, to cover the debts of Spain.
This will be at exactly the same time as the U.S. Government is looking for another Trillion dollars to cover the 2011 federal budget deficit.
The growing Storm:
My predicted timeline has not changed. Between 2013 and 2015 I expect the worst parts of hyper-inflation to hit the U.S. dollar. The FED, Treasury and other nations have created to much debt. This is a matter of money already created, that will wash its way through the system. It cannot be stopped.
All the little financial pieces:
This is actually my favorite part, because I get to say the five most important words any economist can honestly say: I DON’T KNOW FOR SURE.
I admit this freely.
My analysis on when hyper-inflation will do it’s worst damage is just that, an analysis. I have no idea exactly how much more debt will be created over the next three federal budget cycles. My analysis is based on the over $7 Trillion created/borrowed by the FED, Treasury and congress over the last three calendar years.
The entire U.S. banking system remains so weak, it could collapse tomorrow, and there would be havoc in the streets.
I say this here and now as a fact: There are very few powerful people in this world, who are actually concerned about keeping all the little financial pieces together and in working order. The vast majority of people that hold global power want to see a controlled implosion. I wrote about this before. Facilitate such an event, then manage the world into a global currency. Whatever havoc and death such an event creates, is all collateral damage to these people. That is an economic fact. It is where I feel most lonely right now, economically I am one of very few economists willing to be straight up and honest with you.
White Knights verses Dark Knights
I see this as a real problem of emotion and thought around the world. Humanity still seems geared towards a need to wait for a fabled White Knight to come charging in, save the day, save the princess, save a nation(s), save the economy, stop a war, hand out food, give more benefits, erase all the woes of the world and save us from ourselves.
I am not being cynical, I just believe that the illusion and concept of a White Knight is best left relegated to the Lore and fables of their genesis.
At the very same time, the world, in my humble opinion, is offering up a smattering of Dark Knights. Most of them common everyday people, rough around every edge, scorned by peers, mis-understood by a collective system of protocol, yet willing, able and pursuing all out war against the many evils corrupting our world.
White Knights are seen and treated as heroic, as they ride in on pageantry, do a good deed and smile for the camera.
Dark Knights draw a cold blade in the shadows, and make quick work of anything ugly, deceptive or vile. Then the same Dark Knight goes over to his Mother’s and shovels her snow, or home to a daughter and helps her with homework. Dark Knights have no time for cameras.
Dark Knights seek no glory, they seek only to be prepared. White Knights stumble over a press deadline.
Which one are you?
Preparing an Ark of Safety for your family and friends:
I’m not going to repeat my laundry list of preparations from the original Ark of Safety. You, your family and friends know what to do. Sit down, discuss how many people will be staying at whose house or apartment. Water, canned goods, firearms, MRE’s, freeze dried, other things; you decide.
The thing is, you must decide. I know an economic calamity will hit America. I am relatively sure it will be anytime within the next nine years. There will be a general social breakdown, for whatever period of time, as that is the nature of humanity.
These are social/economic hydraulics that cannot be stopped.
It is January 2011, and my temporary preparations can take care/protect four people at my house, for about two months. This year I will work on more permanent preparations, and more food food food, water water water.
Well I cannot resist this one small piece of advice. If you do not own a firearm, you better get out there and buy a 12 gauge. It will save your life, and those of your loved ones. Of this I am sure.
IF, YOU
are reading this, Then you are The Patriot America has been waiting for . . . .