"The Financial Endgame Slowly Plays Out" (the collapse of the economy)

[Spectral]

I read this and it scared me. Could this actually be for real?

http://copvcia.com/free/ww3/053105_world_stories.shtml

The Financial Endgame Slowly Plays Out - and then...

by Nigel Maund
May 27, 2005
http://www.safehaven.com/article-3134.htm
This article first appeared on www.clivemaund.com

In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.

"....As is well known by most readers, the entire monetary system relies on the symbiotic relationship between the US consumer, financed by his vastly asset inflated house, bonds and equities, and provision of cheap labour in China, Taiwan, Thailand, Malaysia and India where much manufacturing has been outsourced by global companies. The US citizen will, over time, be reduced to earn the same wages as his Chinese and Filipino counterparts. He hasn't realized it yet, but he is being progressively reduced to sweatshop labour by being reduced to accepting a job at MacDonald's or Wal-Mart on US$ 7 per hour. Now manufacturing has been largely outsourced or relocated to China or other Asian nations. However, the time will come, maybe by 2015 or 2020, when his wages will be reduced sufficiently to make relocating manufacturing in Ohio an attractive proposition. Welcome to globalization and the New World Order. This is all wonderful of course if you are one of the owners of the means of production and the capital base. You can play one nation off against another, arbitrage wage rates and maximize profits, and reduce your labour force to compliant and malleable serfs. All this comes with the added benefit of "the Sword of Damocles" hanging over each employee's head in the form of a debt mountain. What a brilliant scheme this all is!

Far from being idiotic and improvident, Mr Greenspan's Fed has been a main control box for what is a brilliant global plan, awe inspiring in its breadth, depth and vision, and staggering in its extremely cynical execution. This is surely mankind at his most devious and is corruption of power taken to an ultimate level.

Using his incredible advantage of having a global currency, in which all commodities are traded, and all international loans and settlements made, the Fed has not only created an internal US Dictatorship via credit, but has gulled China, Japan and SE Asia into a brilliant trap. The highly imbalanced trading relationship between China, Japan and the US is well known, and has been frequently described in some detail by Morgan Stanley's Chief Economist, Mr. Stephen Roach. In this relationship, the US buys the majority of Chinese and Japanese goods with digital dollars (real money simply no longer exists) running up huge accounting surpluses with which they buy heaps of meaningless paper in the form of US Treasury Bonds and Equities, enabling the "economic merry go round" to happily continue. In this highly distorted and imbalanced market, no one dare flinch. It is the ultimate "Prisoner's Dilemma Game", and how Mr. Greenspan, a brilliant Harvard academic, must love every minute of it. The cost of anyone throwing in the towel and jettisoning the dollar is quite simply awesome. No one has the courage to dare try. Like it or not, Asia is America's hostage politically and economically and can be crippled at a moments notice. China has no internal market to replace the US consumer, and Japan, Taiwan and Korea are relatively saturated markets. However, Greenspan knows that this "circus" cannot be sustained forever. The dollar is under heavy pressure in the open market as nerves are jangling at the sheer size of the imbalances and awareness of the eventual correction. Europe has to a large degree borne the cost of this great experiment, with a 25% appreciation of the Euro, over three years, impacting seriously on their economies. Should the dollar drop significantly in coming weeks/months the Europeans will be screaming for Greenspan to raise rates into real positive territory before they are left no option but to short the dollar and precipitate a market crisis.

To add to the above, commodities, not least oil, are on an ever-upwards trajectory precipitated by sustained and increasing Asian demand. Eventually, the inherent inflationary costs, global trade and financial distortions will conspire collectively to force a resolution of current imbalances. The longer this situation is sustained, the greater will be the correction required. A soft, low trajectory, landing is considered highly unlikely. The system will implode when it finally goes. The US dollar's value is only a perceived value. Its real value is nothing. When the realisation dawns that there is going to be no nicely "stage managed" end to this situation, the normal human reaction will be to "hit the exits". The history of the markets is not one based on simple mathematical logic. Man is first and foremost driven by his primeval instincts; i.e., greed and fear. The latter is the more powerful of these instincts. When this market goes, it will do so across almost all sectors and go very fast. Greenspan knows this. This is the grand denouement of his global scheme, as any other end was never possible as it would fly in the face of simple mathematical and economic logic. We will then have his Brave New World, and the US will have Patriot Acts 1 and 2, and the Ministry of Homeland Security to sweep up the mess, as the citizenry finally wake up to their awful predicament. Those who have paid for their homes and hold private hoards of gold and silver will be the only ones able to enjoy any form of normal life. However, the future for the US looks pretty bleak given its current political drift. I thank God I don't live there!

Nigel H. Maund
BSc(Hons)Lond., MSc, D.I.C., MBA, MIMMM, SEG
Economic Geologist"