Commentary - 11/19/2007

Inducing The Crash of 2009

There is no way to absolutely predict when a financial crash will take place, just like there is no way to predict when and where a level five hurricane is going to come ashore. However, when the subtle signs are noticed, the intelligent prepare, knowing full well that they may be fortunate and the storm completely misses them. But they also know that lack of preparation exposes them to losing everything, including their lives.

The forecasters try to understand exactly what pattern of events lead up to such an event, and then carefully watch for those signs to occur again. When they do, the intelligent take notice and begin their preparations.

So what were the patterns in the past the precluded severe financial storms? In most cases, we know they were planned, period. There is no looking forward without understanding the past. That's why the Great Red Dragon, Chapter 6, is being used here. That chapter's title is:

The Money Power Crushes All Our Industries, By Inducing The Crash of 1873
The crash of 1873 was brought on by the failure of the House of Jay Cooke & Co. Jay Cooke was a London banker, and the agent of the Money Kings for building the Northern Pacific Railroad. The failure was arranged in such a manner that it did not involve the London house of Jay Cooke & Co. at all. But the failure of the American house accomplished its purpose. It started a crash whose influence lasted five years, prostrating all our industries, and sweeping the country with a deluge of bankruptcy; enabling the Money Kings to hold carnival in the purchase of our produce at low prices, and in buying up property cheap at bankrupt sales.

The London Money Kings certainly prepared and engineered the panic of 1873, just as they did the crash of 1837 and 1857. We find their motive in the fact that it gave them an excuse for locking up $600,000,000, and thus causing the ruin that followed, with the hard times and low prices, in which they reaped a rich harvest of profit to themselves.

So this an early sign, the failure of some controlled agent. In today's world, would not Bear Stearns' hedge funds be such a subtle step? But before we go there, consider this.

Think back to 2006, when enormous salaries and bonuses were given to all on Wall Street who had participated in the theft of OPM. [Other People's Money] Is it not telling that after THEIR money was removed the business and placed in THEIR pockets, that things started to fall apart in 2007. They take the REAL money and leave phony paper promises in its place. Some of that is recorded here. And another article here.. How did they earned it? It had to come out of someone's hide, as I don't think they're allowed to print it. Yet. Anyway, this shows the boom times of secret businesses with OPM. And even today, bonuses planned and shareholders lose.

Now that they've taken the money, someone had decided to start the collapse. Conspiracy theory? Nah, it was written up in the British press, back in August of 2007, right here. Click the links at each investment bank mentioned and you'll see the common thread between all three firms is Barclays (London) and AXA (Paris). This is from the Telegraph UK article:

City sources said problems spiralled when top investment banks including Goldman Sachs, Lehman Brothers and Merrill Lynch - whose prime brokerage arms act as lending banks to the hedge funds - insisted that the funds settle a greater proportion of their debts at the end of the day than they had done previously.

Other banks are said to have followed suit. "Everyone has hiked margin calls and anyone who says they haven't is lying," said one banker.

The increased payments forced hedge funds to sell assets to cover their losses.

My point is that a decision was made and sprung unsuspectingly on others. There was no warning to those NOT properly connected. [Interesting that AXA is NOT in the TOP 10 here.] Bear Stearns was the one who would be sacrificed first, as shown by this article.
Bear Stearns Cos., the second-biggest U.S. underwriter of mortgage bonds, is liquidating holdings from one of its hedge funds after making money-losing bets on subprime mortgage bonds, said three people with knowledge of the decision.

Bear Stearns sought bids today from prospective buyers for about $3.8 billion of mortgage securities from the fund, said the people, who declined to be identified because the plan isn't public.

Of course it's not public. Can't let ordinary folks know about the lyin' and stealin'. Moving on to the next explanation from the 1889 book:
They can make good times or hard times whenever they please; so completely have they gotten our country in their hands. They hold our prosperity completely in their grasp. We are become entirely dependent upon them. When they wish to make good times, they put out their money freely, in building railroads, in making city improvements, in establishing new enterprises all over the country, and in lending money to everybody who wishes to borrow and has property to mortgage as security. Then we have flush times for several years; and everybody, under their leading, rushes into speculation, and everybody gets into debt.
With the nonsense going on in the financial industry today, being blamed on the subprime lending, sound familiar. The more things change . . . Okay, now back to the 1889 book:
Then, in order to make hard times, the Money Kings have only to lock up the money they make as profits out of their various enterprises in the country. They stop building railroads: they stop all outlays for city improvements: they stop all investments in new enterprises; and they stop loans to borrowers. They simply lock up their profits, and let the money lie idle. And at once business is at a stand still: the improvements which had given activity to business cease: established businesses, such as farming, manufacturing, railroading go on: everything else stops. There is universal stagnation: prices fall: a flood of bankruptcy sweeps over the land: thousands are ruined--and the Money Kings revel in low prices of produce, and cheap purchases of bankrupt property.

Perhaps you don't think we have cheap produce and property. Well, simply look at the Euro versus the Dollar at this point in time. The Euro buys twice as much in Dollars as it did a few years ago. Of course, this just all happens by happenstance. Simple coincidences. Yeah, right! Back to the book:

The system of the Money Kings is not known to the public. [It's called "Lying By Omission."] When they break a man, or a company, they do not always set the head of the business aside. They do not wish to make a commotion in business circles by many changes; and they need the experience of the old business managers. Their system is, not to destroy, but to subordinate. Their method is the method of the Romans in extending their conquests: the Romans always left a subjugated state with a modicum of power, until the time came to reduce it to a province. The Money Kings can always kick out their allies whenever they wish, the companies being under their complete control; and they can afford to be seemingly generous for a while, till the time comes to take entire possession.
This explains why certain chief executives seem to get such golden parachutes, even when the company they headed lost enormous sums of money for their OTHER sharelolders. There are many hidden agendas at work, but all of them do not benefit you. They're just stealin' your money!

Maybe I'm wrong, but I don't think anything terribly bad will happen from now through 2008, simply because it is an election year. The Money Kings certainly want to control who replaces Bush, if such replacement is going to be permitted. If not, anything can happen. Be aware and use caution in your financial dealings, keeping in mind the possibilities expressed here. Can't hurt.


2007 by Edward Ulysses Cate
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