Wednesday, August 1, 2007


I was given a copy of the GEAB no. 16 special summer 2007 issue. It confirmed the analysis of my study group as to the truth about the so called housing bubble in the U.S.A. and the sub prime crises. It reported that there was an attempt to substitute a financial/stock bubble instead of the housing bubble, like what Greenspan did when he turned the internet bubble into a housing bubble in order to maintain U.S. growth which did not succeed. Even if Federal Reserve or (FED) Chairman Ben Bernanke “floods” the U.S. economy with liquidities, it will result in increasing U.S. inflation and fleeing from U.S. dollar and the U.S. dollar dominated assets. The report said that the U.S. consumer is exhausted, insolvent and there’s a disturbing report that there’s a fast growing consumer delinquency rates. (Moody’s report)
The FED will experience a central bank’s absolute nightmare – stagflation or more precisely “recessflation”, a combination of recession and inflation which could lead to deflation. The crisis agitated the financial markets and proves that the U.S. debt and U.S. treasury bonds no longer find buyers. Even U.S. Treasury bill is in trouble, it is not by fear of inflation but because nobody wants to buy them anymore. The rest of the world now determines U.S. rates. Systemic uncertainty is back on financial markets. Investors realize that they no longer have any guarantee on global systems trends.
The Bank for International Settlements, the world’s most prestigious financial body has warned that loose monetary policy has fueled dangerous credit bubble, leaving the global economy more vulnerable to another 1930’s – style slump which nobody foresaw.
The systemic collapse confirmed that the world order created after 1945 has come to an end. Even China and the European Union are being sucked into the systemic crisis.
The U.S. economy was reportedly presented with a “phantom” GDP with invented U.S. statistics. The 2007 very great depression is shaping.
Leap/E2020 anticipates that there will be a fallout of economic recession in the United States and China, enhanced trade conflicts which could lead to crisis after crisis and could affect nation states. Is this the reason why Paulson is in China to talk “turkey” with China’s financial managers?
Where is the world going? When America sneezes, everybody catches cold. GEAB no. 16 said that the Spring of 2007 is the start of the tipping point of the global systemic crisis. The U.S. economy went into recession. The bond market is in a worst situation. The paralysis of Washington’s political power grows. The U.S. is fighting so many global fronts. Iraq is a failure, a déjà vu of Vietnam. The oil war is on going with the price of oil which could reach into a shocking $150/barrel. A growing number of countries are converting their U.S. dollars into Euro or other currencies and gold market. The perception that the U.S. saber rattling against Iran could lead to a global war, a possible justification that could reverse the situation for war economies like the U.S.A. It just need a spark like Sarajevo in World War I or the Pearl Harbor bombing in World War II.
According to the CNN report last July 31, 2007, the global arms trade is a very lucrative business of the military industrial complex. It was $1.2 Trillion in 2006 and the U.S.A. is the no.1 exporter.
Jeffrey Steinberg of the Executive Intelligence Review (July 27, 2007) said that U.S. Vice President Dick Cheney’s finger is already on the trigger to start the oplan called, The Guns of August.
Oh no! Here we go again!
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Former National Security Adviser Joe Almonte was the guest of popular TV host Ricky Carandang of ANC last week. He explained why the operation Big Bird was aborted. He blamed the group of then PCGG Chairman Jovito Salonga in bungling the project. If the mission pushed through, the Philippine government should have opened a Pandora’s Box and got a big chunk of the Marcos Swiss hidden wealth.
I recalled that Salonga even wrote a book about his government career but he never explained how he lost his attaché case in a Korean restaurant, in New York. Is he waiting for somebody else to expose the secret deal behind the reported mysterious attaché case?
Last night TV report said that Salonga was given the 2007 Ramon Magsaysay Award due allegedly to his exemplary integrity. I almost fell from my chair while watching the late TV news. Oh Lord!
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