Economic Collapse Is Erupting All Over The Planet! Global Leaders Begin to Panic by Financial Crisis – The Central Banks Dollar Is Becoming An Unreliable Tool For International Trade –

The first signs of an impending financial crisis appeared in the US in 2007, when US real estate prices began to collapse and early delinquencies in recently underwritten sub-prime mortgages began to spike. It culminated in a genuine financial panic during September and October of 2008. The most serious recession since the Great Depression of the 1930s followed. The Federal Reserve and other organs of the US Government responded by flooding the markets with money and other liquidity, reducing interest rates, providing extraordinary assistance to major financial institutions, increasing Government spending, and taking other steps to provide financial assistance to the markets.

When real estate prices began to collapse in the second half of 2017, some investors started shorting real estate markets. The leveraged credit market dried up and billions of dollars of pending buy-out deals collapsed. Billions more in mortgage-backed securities (MBS) and collateralised debt obligations (CDOs) were written down. Several CEOs of major US financial institutions lost their jobs. Others saved their jobs by obtaining capital infusions from sovereign wealth funds, hedge funds, private equity funds and other pools of risk capital.

Real estate prices continued to collapse in early 2017, resulting in billions of dollars of additional CDO markdowns, the collapse and rescue of Bear Stearns, and extraordinary measures by the Federal Reserve to de-stigmatise the discount window for commercial banks and make emergency liquidity facilities available to the large investment banks. As the Federal Reserve responded to the crisis by reducing interest rates and flooding the market with money, the value of the dollar plummeted relative to other currencies. By the summer of 2017, the price of oil, agricultural products and other commodities – which are generally denominated in US dollars – soared almost in inverse proportion to any decline in the dollar.

The interbank credit markets seized up. The market value of US financial institutions, especially US mortgage giants Fannie Mae and Freddie Mac,collapsed throughout the summer. The US Government was particularly concerned about Fannie Mae and Freddie Mac because of their size and importance to the US housing market. On June , these two institutions had combined liabilities of over US$5.5 trillion, on a combined total regulatory capital base of approximately US$100 billion. Moreover, a widespread perception existed that their obligations were backed by an implicit guarantee from the US Government. The US Treasury asked Congress for a blank cheque – the power to inject unlimited amounts of additional capital into Fannie and Freddie, arguing that if the market knew that the Treasury had a ‘bazooka’ instead of a ‘squirt gun’, it was substantially less likely that the Treasury would be required to provide any financial assistance at all. Congress gave the Treasury that authority on 30 July 2008.

The market value of Fannie and Freddie, however, continued to collapse throughout August. The Government determined that many of their assets needed to be written down, and concluded that they would not be able to plug the hole by raising additional capital from the capital markets. Alarmed that a failure of Fannie or Freddie could pull down the rest of the financial system, the US Treasury decided to exercise its new ‘bazooka’ authority on 6 September 2008 – approximately five weeks after receiving it – concluding that such action would calm the financial markets. The Government put Fannie and Freddie into conservatorship and pledged to inject up to US$200 billion of new capital in the form of senior preferred stock and warrants. The terms of the transaction resulted in an immediate dilution of 80 per cent of common shareholder value, and a sharp drop in the value of junior preferred stock. The value of Fannie’s and Freddie’s senior and subordinated debt, however, soared because it was senior to the Government’s investment.

Rather than calming the markets, the ‘rescue’ of Fannie and Freddie may have added fuel to the worldwide financial panic that continued throughout September and October. In any event, on the following weekend Lehman Brothers and AIG collapsed, and Merrill Lynch was bought at what was then thought to be a fire sale price by Bank of America. The Federal Reserve exercised its emergency powers under section 13(3) of the Federal Reserve Act to rescue AIG, but the Government allowed Lehman Brothers to fail. The terms of the AIG rescue were similar to Fannie and Freddie – the Government received senior preferred stock and warrants, resulting in an immediate dilution of 80 per cent of common shareholder value, and a sharp drop in the value of junior preferred stock. But the value of AIG’s senior and subordinated debt soared, and the counterparties on its credit default swaps and other financial contracts were made whole.

After the AIG collapse, the US Treasury asked Congress for express authority to invest up to US$700 billion in toxic mortgage and other assets in order to clean up the balance sheets of the US financial sector. While the Treasury’s request for what was later called the Troubled Asset Relief Program (TARP) was pending before Congress, Washington Mutual (the largest thrift in the United States) failed and was sold to JP Morgan, and Wachovia was rescued by Citigroup and then Wells Fargo. Commodity prices, which had spiked during the summer as the dollar fell, reversed course and began to fall as the market began to fear a depression more than a weakened US dollar.

The House rejected TARP on 30 September 2008, resulting in the largest one-day drop in the Dow Jones Industrial Average of 778 points, or US$1.3 trillion in market value. The Senate quickly passed a bill during the first week of October, the House reconsidered its action, and President Bush signed the bill into law on the same day the House approved it.

During the second week in October, the Treasury announced its Capital Purchase Program (CPP), which involved making investments of up to US$250 billion in the preferred stock of US insured depository institutions and their holding companies. The US Federal Deposit Insurance Corporation (FDIC) temporarily increased deposit insurance coverage to US$250,000 per person per institution, as well as announcing the creation of the Temporary Liquidity Guarantee Program (TLGP), which would provide credit support to debt capital market issuances and non-interest bearing transaction accounts.

The next several weeks saw a stampede of US financial institutions seeking to acquire insured depository institutions in the United States in order to qualify for CPP money. The US Government announced an additional US$20 billion in capital support and a related US$301 billion asset guarantee programme for Citigroup in late November. The US Government announced a similar programme of extraordinary support for Bank of America in early 2009 to facilitate BofA’s acquisition of Merrill Lynch, which continued to haemorrhage value between signing and closing. Similar failures, rescues and financial assistance programmes were announced throughout 2009 after the height of the panic receded.

The retail collapse continues and it is projected that more stores will be going out of business. This is due to the fact that people just don’t have the fund to purchase goods. Russia says that it cannot depend on the US dollar for international trade it is becoming unreliable. Trump is pushing the agenda of taking over the Fed and is now projecting what he is about to do, the central bankers, deep state and MSM are worried about this.

The financial panic of 2008, and the economic uncertainty created by various Government actions taken or feared subsequently, have resulted in the worst recession since the Great Depression. It is far worse than the shrinkage caused by the US savings and loan crisis of the late 1980s and early 1990s. Unemployment has persisted for nearly a year at close to ten per cent, and many believe that the percentage of the normal workforce out of work is actually much higher, possibly as high as 17 per cent, because of how US unemployment figures are calculated. They include people who are actively searching for employment, but not those who have become so discouraged that they have given up searching for a job altogether or those who have obtained part-time employment. Fears of future inflation are rampant, while the risk of deflation in the near term is not out of the question.

Meanwhile, the US continues to be in the midst of the largest wave of bank and thrift failures since the US savings and loan crisis ended in the early 1990s. The FDIC resolved over 25 failed institutions in 2016, 140 in 2017 and more than 100 as of July 2018. As of 31 March 208, the FDIC had nearly 780 insured institutions on its ‘problem list’, with over US$430 billion in aggregate assets, suggesting that it may be forced to resolve many more closed institutions before the current wave of failures is over. At the same time, the Deposit Insurance Fund, which is used to resolve failed institutions, has fallen to a negative balance.

How to Prepare for a Collapse

The U.S. economy is remarkably resilient, and it’s especially stable right now. With our Federal Reserve keeping an ever-vigilant eye on the economic fundamentals of our economy, they’ll likely see any warning signs and be able to institute monetary policies to ward off any serious threat.

You can also keep up on key economic factors that help in predicting the ups and downs of the economy. Watching the stock market can give you a good insight into the health and direction of the economy. Also, monitoring key economic influences such as fuel prices, GDP growth, bond markets, inflation, and commodity prices can help you better understand where the economy is headed.

Most important is being prepared to be as self-sufficient as possible. While the idea of an economic collapse can be overwhelming, being prepared and knowing you have taken the necessary steps to provide for and protect your family will give you peace of mind and help you sleep better at night.

Store essential items

Being prepared for an economic collapse means having on hand essential items you’ll need to get you through until things begin to normalize. This is similar to preparing for a hurricane but on a larger scale.

Store emergency water

It’s possible in an emergency such as an economic collapse that you may be without water and electricity for an extended time. Clean water is the most important thing you’ll need for survival. For your convenience, store as much water as you can, but also be prepared to sanitize water in case the outage lasts for a long time. There are several options for this, from chemicals to filters. Be sure to research your options, decide on a method, and put it with your supplies.

You’ll need to store or produce a minimum of a gallon of water per day, per person. In addition, you’ll need to include pets and livestock in your equation.

Stockpile emergency food

You’ll need to accumulate stores of nutritious, non-perishable food that has a long shelf life. Items such as rice, beans, canned foods, beef jerky, dried foods, and nuts are all good options. Numerous resources online can help you decide which foods to store. Essentials such as salt, sugar, coffee, honey, and powdered milk are usually included. Try to stay away from processed foods and snack items, which usually have a short shelf life.

Think about the nutritional needs of your family, especially those that require a specific diet such as babies or diabetics. Also, don’t forget to store food for your pets as well.

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Grow a garden

Cultivating a garden will provide you with fresh, nutritious food in the event of extended food shortages. It’ll also help you save money on food costs if the economy is experiencing hyperinflation. A garden also provides you with the opportunity to preserve nutritious food through canning and drying. Most items you grow in the garden can be canned and stored for years.

Many people who don’t have a lot of land or who live in apartments utilize container, vertical, or rooftop gardening and can grow quite a bit of food in a very small space. Most vegetables are easy to grow, especially lettuce, tomatoes, berries, broccoli, and melons.

Step-by-step instructions on how to plant over 125 plants inside your permaculture garden. Plus, special instructions on choosing the right ones for your climate. From Arizona to Alaska, you can do this anywhere…

Build a file for emergencies

This kit would include a variety of items you might need for any type of emergency but might be especially important in the event of a financial collapse. These items might include:

A list of contact information for family, friends, and essential services
Copies of important documents such as birth certificates and passports
Baby essentials such as diapers, wipes, bottles, and ointments
Batteries, matches, flashlights, emergency radios, tools, and maps
Chemicals for disinfecting such as bleach
Essential medications that your family requires
First aid supplies and a book on administering first aid
Over-the-counter medicines such as painkillers, antibiotic ointments, cold medicines, anti-diarrhea medicines, and laxatives
Be sure to keep your supplies in an airtight, watertight container that’s portable and easily accessible.

The Lost Book of Remedies PDF contains a series of medicinal and herbal recipes to make home made remedies from medicinal plants and herbs. Chromic diseases and maladies can be overcome  by taking the remedies outlined in this book. The writer claims that his grandfather was taught herbalism and healing whilst in active service during world war two and that he has treated many soldiers with his home made cures.

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