Mike Whitney, Global Research 12 Nov. 2008 :  "The Winter of 2008-2009 will prove to be the winter of global economic discontent that marks the rejection of the flawed ideology that unregulated global financial markets promoted financial innovation, market efficiency, unhampered growth and endless prosperity while mitigating risk by spreading it system wide." Economists Paul Davidson and Henry C.K. Liu "Open Letter to World Leaders attending the November 15 White House Summit on Financial Markets and the World Economy".

Emin_deesWall Street has turned off the faucet for securitized investments. There is no trust between the banks themselves.

Even so, the banks are not capable of making up for the vast amount of credit which was produced by the now-defunct investment banks and hedge funds which are constrained by losses of nearly $3.5 trillion; half of their total value.
In the best case scenario, bank credit will only shrink 15 or 20 percent, which will put the US on track for a deep "18 month to 2 year" recession rather than another Great Depression.

Paulson's attempt to divert $30 billion to non-bank financial institutions to revive loan securitization when there is no appetite among investors for such structured junk is pure folly
More troubling is that neither Paulson nor Bernanke have a Plan B; an alternate scheme for rebuilding the financial markets on a solid, sustainable foundation rather than low interest rates and pools of debt. Everything they have done so far, suggests that they are focused on one thing alone; inflating another equity bubble. "Inflate or die", as the saying goes; and Bernanke intends to achieve this objective using the same tools that brought us to the brink of catastrophe

Sorry, Ben, the funding has dried up and the banks have shown no interest in going back to the days of conventional "30-year fixed" mortgages. It's a dead letter. The Fed and Treasury need to stop looking for ways to reflate the bubble and work to restore confidence in the markets.

Ben_Bernanke                                                                                      Federal Reserve Chief Ben Bernanke

National Intelligence Council, Times Online, Nov 21, 2008: “The next 20 years will be fraught with risks”

The Times Online, Nov. 21, 2008: More than one in five homes on the market are there because their owners cannot afford the mortgage repayments.

Barroso Nov. 21, 2008: "G20 leaders  called for a new form of global governance;In the plan we will be delivering, we will include the need for a significant budgetary expansion in the EU. Fiscal policy should be used to support economic activity.

On the regulatory side, there was clear agreement in Washington that no financial institutions or instruments should be outside the law, transparency should be increased, excessive risk-taking reined in and conflicts of interest avoided.

Many of the issues will have to be dealt with at EU (not national) level.The Summit recognised the pivotal role of the IMF in providing macro-financial policy advice.This is crucial. This crisis stems partly from macro-economic policy mistakes and the failure to prevent the build up of global imbalances also played a role. Vigorous, even-handed surveillance of all countries is desperately needed.
And just as conversations can extend across borders, so can markets."

Ron Paul (video)  Questions to Bernanke about another world currency than the dollar. And about gold currency. Bernanke denies both.

GuldprisNow Ron Paul´s question is well founded:The New York Post Nov. 21, 2008 : Gold demand is enormous – nevertheless the price of the precious metal as such  is about 25 % lower than 1 month agoalthough the Central Banks have stopped selling gold on the market. Paradoxically, in that situation Perth Mint stopped the sale of gold!! Perth Mint is the Industry Collection of Gold Bars Worldwide – and owned by NM Rothschild & Sons . Some think, Rothschild wants to keep the gold to himself – and to leave us with fiat (paper) money, which can be made worthless.
Oddly, althoughin the 3. quarter of 2008  the demand was 380 tonnes, and the volume of sold gold was 150 tonnes – mainly from Hedge Funds i distress, the price fell from its all-time high in March (1000 dollars) to 700 dollars! Why

There are now strong indications that the prices of precious metals by agreement between the US-Rothschild agents of JP Morgan and the U.S. Treasury have been manipulated to artificially low levels. Whereupon JP Morgan took  over the silver futures of Bear Stearns at an  unnaturally low price after governmental pressure on Bear Stearns and Morgan earned  many billions of dollars in that deal.  

As previously reported on this blog, there are strong indications that The Federal Reserve and Bank of England are  hoarding gold in vaults for Rothschild.
Comment
Ron Paul's suspicion that a gold standard world currency is being planned and is moving closer is wellfounded.
As Rothschild controls the gold of the central banks, this  would mean the Illuminati control world finances - and thus would hold practical world governance.
Jim Rogers,
Bloomberg 25 Nov. 2008:“The dollar is “going to lose its status as the world's reserve currency,'' Rogers said yesterday in a televised interview with Bloomberg News. “It will be devalued and it will go down a lot. These guys in Washington, they want to debase the currency.''

CBS News 25 Nov. 2008: US Defence Secretary, CFR-member Robert Gates, has given his departments top leaders 25 days to issue regulations to secure homeland defence (i.e. militarily) which “means a historical break with the past” – according to the Commission´s chairman.
Since Oct. 1, combat-trained  military units of the 1. Brigade of the 3. Infantry Division from Irak, is under the North Command, as previously reported here. So, it seems that the US is expecting domestic trouble for some reason. Perhaps like in Iceland?

On October 9, 2008, Gerald Celente, publisher and editor of the highly respected Trends Journal issued a Trend Alert headlined
when people realize that their paper is not worth the paper it’s printed on and people start going into gold, the whole system could collapse immediately.
Celente is stated  
by the CNN, The Economist, the CNBC, the Wall Street Journal, the CBS etc. to be the world´s best predictor of development-trends.
“They are doing everything they can to prop the dollar up and to push gold prices down.
The central banks are propping up the dollar now because remember they are in control of the printing press.
The game is being rigged in broad daylight and we see it right in front of us. It’s criminal activity
from top to bottom.
When the reality hits and people see how bad things are, you’re going to start to see tax revolts. People can’t afford these school taxes. They can’t afford the property taxes

WallStreetTentsOhioSept2008There will be a revolution in this country. It’s not going to come yet, but it’s going to come down the line and we’re going to see a third party and this was the catalyst for it: the takeover of Washington, D. C., in broad daylight by Wall Street in this bloodless coup. And it will happen as conditions continue to worsen.

We’re going to go through a period of hyper-inflation the likes of which we have never seen before. The government is just printing money on a daily basis. They are just manufacturing it out of thin air! The more cheap money they print, the worse hyper-inflation gets; the worse hyper-inflation gets, the more people become angry; the angrier people get, the more tax revolts; and that’s when we’ll see a new system. This country was built on tax revolts and it’s going to happen again.

This now is communism. Instead of the commissars from the Communist Party, they are bringing the people in from the Wall Street party. In socialism, you get to vote. In communism, you don’t.
This revolution by a proletarianized middle class was
predicted by the British Defence Ministry  last year.

The illuminati/illuminists  probably want this crisis to destroy the existing financial and political system - and to introduce a global currency based on gold instead – disregarding the right of the Americans according to the US Declaration of Independence: “But when a long train of abuses and usurpations, pursuing invariably the same object evinces a design to reduce them under absolute despotism, it is their right, it is their duty, to throw off such government, and to provide new guards for their future security.” The illuminati hope for the decadence of the people to have forgotten this constitutional right!

I think that's why the Council on Foreign Relations CFR)-members Jimmy Carter, Bill Clinton and his Secretary of Treasury, Robert Rubin,  Alan Greenspan, and their Wall Street chums - among them the present Secretary of the Treasure, Henry Paulson, former Chairman of the Board and CEO of Goldman Sachs, started this subprime crisis and failed to bail out Lehman Brothers - even though they previously did save the much smaller Bear Stearns, although it was not even insolvent!

Rubin   Robert Rubin

Now Obama will appoint his CFR pals (Lawrence Summers, James Rubin, Timothy Geithner – even former Federal Reserve  Chairman of the Board,  Paul Volcker to manage the economy they have so meticulously scuttled, letting the fox guard the hen-house. For Obama's economic team are Rubin's disciples, one of them even Robert Rubin's son, James!

We are dealing with perhaps the largest monetary theft in history.

Here is what F. William ENGDAHL writes in the Global Research on 24 November 2008:
“Early on, Paulson put $ 125 billion in the nine largest banks, including $ 10 billion to his former firm, Goldman Sachs. But if we compare the value of shares to $ 125 billion purchased in the market price for these banks' stock, American taxpayers have paid $ 125 billion of bank stock that an investor could have bought for $ 62.5 billion, after a detailed review from Ron W. Bloom, an economist with the U.S. United Steel workers union, whose members and pension fund faces devastating losses were GM to fail.
That is to say half the public money was a gift to Paulson's Wall Street peers.