The global monetary system works off of a fraudulent principle called fractional reserve lending. It basically states that if you are one of the "special people" (called banks) then you can loan out more money than you actually have on hand. Your loans are "fractionally reserved". In other words, if you have $1 in your vault you can create $9 dollars of credit from thin air and loan it into the economy. Again, if you don't understand these basic principles or don't believe me, either look it up on Google yourself or suspend disbelief. I know what I'm talking about with more than 5000 hours of careful study on related matters. When Bear Stearns went bankrupt it was found to be leveraged at about 35:1. That means that a simple loss of 3% of net assets would wipe out all equity that the company has. They were not an outlier. They were simply the first to go under and when they did go under it almost took down the entire global economy. That should say something to you when a couple of privately owned financial services companies can rock the world. It should be telling you that the whole thing is a fraudulent, corrupt house of cards. Nobody has been watching these con men, nobody has been caring what they do. And so they do whatever they want until it collapses, just like Bernie Madoff did. EXACTLY like Madoff. The whole global economic system is a monster Ponzi.
No Ponzi ever lasted forever and it's not going to be different this time. But Ponzis feel real good while they are running. Everyone has a glow of prosperity on their face from reading their paper statements each month. But, just like Madoff, the money really isn't there to pay everyone. The first to get out quickly near the top will get all the money that is actually in the scam and then at some point it will all just collapse. Everyone else gets stiffed. Just like Bear Stearns. Just like Madoff.
The only question people have is, "when"? They want a timetable handed to them so they can sit around like sheeple until the last minute at which time they think they can quickly get all their value out of the system and be kept whole while everyone else around them goes down in flames. Well folks, when it goes down, it happens too quickly for everyone to get out. How many people got out of Madoff's scam without losing money? 15%? Everyone else lost a lot of money and some lost it all. Again, that's just the way a Ponzi works.
The Debt Ponzi works by creating debt at one institution at a rate of 9:1 which is allowed by the fractional reserve banking system rules. That credit/debt then goes into the economy where it is stored at other financial institutions. Each of those institutions treat every dollar they receive as if it were a virgin dollar provided from the federal reserve. Thus they are free to leverage it up at 9:1. In fact, most of the "money" that they have is just numbers transferred around. Thus, there is no limit on the amount of how fractionally reserved the monetary base is. Bank "A" creates money (credit spends just like Federal Reserve notes) from thin air, it goes to banks B-Z who each leverage their receipts at 9:1 and then that goes to other banks 1-1000 who leverage it yet again... Do you see how this creates massive amounts of new money into the economy? The is called credit based inflation.
As that "money" continues to get inflated, much of it is used to gamble in the stock and financial markets using something called "margin". Margin is simply debt that you get in order to go "investing" (gambling) in the paper asset market. When too much buying power is pushed into the economy it chases up prices of the stuff that is for sale. This is simple economics, supply and demand. The prices of paper assets have gone exponential due to all the leverage upon leverage that is enabled by the fraudulent money supply. It can go on for a long time and it can even seem normal but, like any Ponzi, the credit is guaranteed to collapse at some point. Someone will default and it will cause a chain reaction that will frighten everyone at once and when everyone goes to the bank and stands in the cold to get their money, the people realize that the money really isn't there. The only thing that exists are electronic promises to pay and those can evaporate nearly over night if the government can't keep up appearances. Ask the founders of BitCoin how long it takes to collapse when your "money" is just electronic accounts or "wallets".
In order to service the requested redemptions (people want their money back out of the institution), banks have to sell financial assets to raise cash. The selling becomes widespread as everyone makes a dash to cash. Asset prices - everything that was bought with the margin debt - don't just go down, they go to Hell in a hand basket. They absolutely crash. That is how the Dow Jones Industrial average crashed 87% from its peak back 1929-1932. Government is powerless to stop this from happening because the amount of credit out there is so huge relative to the resources that all of the world's governments COMBINED have access to that they eventually just go to the sidelines and wait for it all to collapse so they can pick up the pieces and figure out how to not get blamed for it (even though they all know damned well what is going on).
The Federal Reserve's policies are Ponzi enablers and they know it. Each time there is a crisis, they do some emergency move which has one purpose and one purpose only: to convince the patsies to keep their money in the scam. Watch this 6.5 minute video from the last near collapse in 2008 and you will see the truth of what I am saying. The speaker is Rep Paul Kanjorski (D) from PA. What happened was that the defaults of Lehman and Bear Stearns made people lose confidence in the system. In a con game, that's all you have going for you. When confidence is lost, the whole thing collapses into nothingness. The Federal Reserve had to take outrageous, unprecedented and still ongoing measures in order to stop the electronic run on the dollar (in other words, to convince people to stay in the system). Charles Ponzi did the same exact thing when there was the initial run on investments in his original Ponzi scheme. As people were standing in the cold waiting in line to withdraw their cash (a process which was intentionally slowed down using a small number of claims workers), Ponzi walked through the crowd offering coffee and doughnuts to the patsies. He eventually succeeded in calming them down even though he knew the whole time that his operations were a complete scam. In other words, his success was in large part due to his ability to tell a bold faced lie to the masses.
Even knowing all this, everyone I talk to wants to know when the party will end. It's been going on so long now that it could last for the rest of their lives, right? Without some way to gauge the amount of time before the collapse, most people will just sit there in shock while the whole damned thing collapses right before their eyes. And so this is why I am posting today. Unfortunately, I cannot give the date and the hour of the coming global economic collapse but as a chart analyst with many years of experience I can give you one simple thing - a tangible sign to watch for.
The two charts below are the Dow Jones Industrial Average and the S+P500. Shape of them looks the same because they were both pumped up using the same leveraged credit. When they go down, they will all go down together. Whenever something economic goes exponential, you know that leverage was used. Both of these charts have gone exponential. The chart pattern that is marked with red lines on both of them is a well known charting pattern called an expanding triangle. Everyone in the financial world knows about it. If you don't know about it then you a going to be a patsy in this scam. Here is one site talking about it. The way it works is that the bounces stay within the up and downsloping lines until the very last wave. That would be the 5th wave. The first time the chart hits the top red line it is called wave 1. Then the chart reverses and heads to the bottom of the expanding channel. That is wave 2. Then back up to the top again for wave 3. Then back down to the bottom again like it did in 2009. That is wave 4.
The 5th wave up is special and there is a good way to know it is the last wave: it does not stop at the top channel line like it did all those times before. Instead it picks up steam as the Animal Spirits of the market participants worry that the train is leaving the station without them blah blah blah. They have to take out enormous amounts of debt in order to get any leverage because they are buying near the top. But with low interest rates and with no debtor's jail and no banker went to jail for the 2008 collapse, why not go gamble? It's all potential reward and no perceived risk for the gamblers. That is a situation that few people (including the "special", "expert" financial people who have been given the right to make loans) have the courage and moral fortitude to ignore. And so they don't.Once that chart breaks the top line we call it a breakout. This condition is your first warning that danger is close. The break out is short lived and it quickly turns back down into the channel. Few people know that this is a major, major sell signal. But the trading computers, they all know it and they will all act upon it. So when you see that chart go back down into the channel, your time for getting out of the economic system is very, very short.
The US is the world's banker. When these charts break down, the fraudulent global monetary system will go with it. There is no saving it a second time, not without massive inflation that will skyrocket food and energy prices and bring Argentina and Ukraine and Egypt type riots to the US. Do you suppose there is a reason for all the global riots in Spain and Portugal and everywhere else? Do you think it is normal? It's not. It's because the Global Debt Ponzi is nearing the collapse phase and the marginal (weaker) players always get hurt the first and the worst. Their economies are in tatters and people are fighting for survival. It will eventually come to the US as well.
There you have it, the main points you need to know and brought to you in plain English. Get your wealth out of the system in any way possible and as soon as possible because when collapse comes you do not want to be fighting everyone else who is trying to do the same thing. Leave no money in a bank lest the government impose capital controls on you and even steal it with a so called bail in as was done in Cyprus recently. Google around a bit and you will find that major nations are writing bail in laws so that they can legally steal from you. Don't take my word for it, do your own homework. What you should take from me is the simple charting advice given above.
To recap that advice: the charts have broken out in their 5th wave. Everyone who ever read a chart knows what that means even if you don't. Take it from someone who has done this before a few times! When that chart breaks back down into the channel, that is the end of it. There is no breaking back out once the 5th wave comes back into the channel. That is your cut and run signal. Don't say you were never warned.
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