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The financial weapon of mass destruction has exploded.

March 3rd 2009

Hans Schicht http://www.hansschicht.net

Financial essays http://www.gold-eagle.com/research/schichtndx.html

World in Upheaval

Don't make a mistake:

The present financial crisis is not a temporary phenomenon soon to be brought under control. This crisis is an integral part of the greater picture of the ongoing Demise of the West.

Look at:

- The moral decay, corruption, decadence, apathy and permissiveness of modern society. - The entrenchment of interest groups and the cartels. - The degradation of standards. - The calcification of the institutions. - The alienation between government and people - The sitting burocrats, not able or not wanting to make changes when and where necessary or create new directives where needed. - Copy heads, all of them, leaning one upon the other, smothering whatever new initiatives and ideas in the but. Never admitting when wrong.

-Then there is loss of trust in the institutions, in the government and loss of trust between the people themselves. Trust is the glue that holds society and a civilization together. Once trust is lost, society disintegrates and civilization dies.

The West has lost its lust for life, its stamina and its vision of the future. Lost its capacity and elasticity to adapt, to change and to live. Its systems calcified, its blood veins blocked and itsengine seized up. The West is tired and terminally ill.

In nature a healthy animal does not get ill because of ticks. Only then, when the animal itself is not healthy, will the ticks take the upper hand and multiply. Same goes for society, where the sucking parasites have gotten the upper hand and are killing the host. Parasite number one, the Banker, followed by the entrenched burocrats, politicians, the lobbyists, the lawyers and all these that take unrightfully advantage of unaffordable social rights and laws.

There is the concentration of capital at the top in the hands of an unassailable elite barricaded in untraceable holding companies, covered by the anonymity of share and bond holdings. They control the world's finances. They control the media to serve but their own interests. They manipulate of what once were free markets.

Once in the good old times the family formed the corner-stone upon which society rested and where-upon the economy prospered from the ground up, from grassroots. The burger held the money, the gold and the silver. These times are gone. Today, all and everything is being controlled upside-down, directed from the top. The base of prosperity, the family entrepreneur is no longer.

Three hundred years ago the Banker, The Merchant of Debt obtained the permission to establish the Bank of England, coupled to the exclusive right to issue the nation's currency. In the time span of three hundred years the Merchant managed to copy and establish his Central Banks in all the countries of the world and issuing their national currencies. He absconded with the people's hard asset money, the gold and the silver, substituting it with worthless fiat paper, printed at no cost to him. And thus the Merchant of Debt usurped all the riches of the world in exchange for nothing.

How on earth is it possible that people and government, already burdened under a yoke of phantom paper and debt, are now crying for even more phantom money and phantom credit, the same that got them into this mess? Will they never learn?

Why don't they turn in the first place to him, the Merchant of Debt, who stole all their gold and silver and claim their real money back, directly from him, instead of being further force-fed to death with ever greater amounts of his worthless phantom money and credit? That would settle the matter once and for all, instantly. And would the Merchant refuse, the consequences will be his. Then the people will take back by force what was once legally theirs.

In Central Europe, centuries ago, subjugated and exploited by the Roman Church by putting the fear of God in people, the revolting masses ransacked the opulent churches, burnt the golden icons and put the priests on the stake. The French stormed the Bastille and guillotined their aristocracy. Not to forget the Communists and what happened in Russia and China. Once people get into a rage, they will do anything. And I tell you, lately I have done a lot of travelling around the world and talked to many: workers, middle class and even well established society. With all of them I encountered a strongly growing sentiment, first of unbelief and then of flaring anger, damnation and hatred against all what is banking. Finally people are waking up, realizing that they are being systematically robbed and unsuspectedly being enslaved in the Merchants chains of debt. And then to think, that we are only at the beginning of the crisis! How is it all going to turn out once the crisis really starts to bite, the economies collapse and breadlines form?

You have seen nothing yet. There will be no peaceful solution! Blood is going to run in the streets and the forces of order will succumb under the waves upon waves of demonstrators boiling with rage. All these Savil Row politicians, muppet burocrats, eurocrats and whatever rats with their TV-smiles, will fall by the way like dominos. They have nothing to smile about, the situation is dead serious.

And thus the Merchant of Debt has ruled the world for the last few hundred years, because he is Caesar and he holds the gold and who holds the gold, rules. Let the people find out who the Merchant really is by passing a law, that from now on all share and bond certificates must be on name, while declaring all bearer shares and bonds illegal. That would open up the Merchant's spider web of anonymity to public scrutiny and help to find out where he has hidden his gold and silver!

However, things have not exactly turned out the way the Merchant of Debt planned. His Robber Barons have become rather independent. They have thrown all prudence overboard, running wild in pursuit of their own riches and not their Master's. The Master has lost control. And in their greed the Barons are in the process of taking the whole of Western Finance over the cliff with them.

Why try to repair and resurrect a system, that has proved fraudulent in the core from the outset and has but served to enrich the Merchant of Debt and his lackeys? Why reappoint the same criminals, that got us into this mess in the first place?

There are fairy tales and fairy tales I cannot believe in. For instance, the Reichstag Fire that brought Hitler into power. The Tonkin accident, that gave the USA the excuse to invade Vietnam. And where are the 8000 tons of gold that should be in Fort Knox or wherever? They are gone! Where are Sadam's Weapons of Mass Destruction that started the Iraqi war? And what about the events of the 9th of September 2001? After reading all the comments and analyses of the latter and hearing that even a former Italian Prime Minister and a Japanese MP expressed serious doubts, I cannot see the Twin Tower collapse but as a planned political power grap. All lies! Who can still believe in a government, the news media, statistics, or the value of paper money? Once trust is gone, it is gone forever.

I cannot believe anything anymore.

The same way I cannot see the election of Obama and the near unchallenged nomination of his cabinet as anything else than well planned before hand from "above". A Cabinet made up out of the same old entrenched mafia that got America into this mess in the first place. The same way as Reagan had to accept Bush Senior as Vice President, in order to get the necessary support from "above" to be able to run for president, …same for Mr. Obama! Yes, Mr Obama, would you like to become president? You are the man with the best chances. Not to worry, we will finance your campaign. But with the condition that you take Biden as your Vice-President, Hillary as your Secretary of State and the following Goldman Sachs people into your cabinet. And do not dare to interfere with what they are doing!

Obama, Obama, Fata-Obama! When the Fata will have faded, the world will be in a bigger mess than ever before.

Could I be wrong? I have never seen such a fast and smooth nomination of a cabinet by an incoming President. Looks too well organized before hand. The only whimper of hope the world has left is, that Obama, the moment he might feel strong enough on his own, might have the guts to kick off his chains of bondage and go his own way. But then, as what Chavez said: if Obama does not follow up, they will kill him.

Neither Obama, neither the Rescue Plans (rescue whom?) will be able to change the course of history. The money-spine of finance, where everything turns around and depends on, is kaput, broken by the loss of trust. And as they say there is nothing more dead than a dead love, so is nothing more dead than a trust betrayed.

With its money spine broken, the West has had it. Not the slightest chance of recovery. The West had become so corrupt and calcified, that nothing will help. No recession, neither depression. The world will see nothing but disintegration.

People have forgotten, that rights are subject to obligations and responsibility. That without morals, trust and discipline society cannot exist. There is no other way than the hard way for people to learn to think again and become responsible again for their own deeds, not to be dependent on leaders running around like a bunch of headless chickens.

The West will have to pass through decades if not ages of upheaval and chaos on its road of decline, before a new age might dawn. Revolution and war will witness the disintegration of empires and mass migrations.

For me there is only one great historian, Oswald Spengler, who in 1911 wrote his "the Decline of the West" (Untergang des Abendlandes). He sees the history of mankind like the life-cycles of societies playing out over hundreds of years. Each with its own characteristics, just like the life of an individual. From an awakening in the spring, to the creation of culture in the summer, to civilization and expansionism in autumn, to finally freeze up in the winter of disintegration, decay and death. Spengler compares the Egyptian, the Babylonian-Assyrian, the Islamic and the Western civilizations next to one another. The Fall of the West, however, will see a rather different and faster ending than its predecessors.

-Firstly, there are the extraordinary technical achievements unique to Western Civilization, speeding up the succession of events into high gear. Everything is happening faster and faster.

-Secondly, there is the high degree of specialization in all layers of western society. Notwithstanding that some people may be highly intelligent, specialization leaves little chance of keeping up with what is overall happening. Only few people are still capable to analyse and understand what is going on in this world, the rest belongs to the utterly confused masses.

-Thirdly, where the decline of a civilization is playing out in a full world, with no spot on the planet not covered by humans, the present scenario has no precedent in history.

-And lastly there is the West's self-induced dependence on a most fraudulent system of virtual currencies without any intrinsic value, that is fast imploding and not gradually slipping in value like the metallic currencies of the past.

A currency is something all and everything is related to and depends on. A currency is like the spine of a nation, of a civilization, and when that spine collapses, then everything related to and dependent on, is destined to collapse.

Out of the blue, the world has entered the great unknown. Nothing to refer to, nobody in control, nothing to hold on to and nobody to trusts, while the sequence of events is speeding up.

The world is rudderless, the governments in utterly confusion and the people becoming desperate. The financial weapon of mass destruction has exploded.

While the Robber Barons and the old guard politicians doing their utmost to save their own buds by trying to keep the status quo for as long as possible through massive injections of fiat paper and virtual credit, the master culprit, the Merchant of Debt himself, has retreated into hiding, not in anyway to be identified with the present crisis.

Injections will not help the economies. Hyper-inflation will take over. The fury of the people will throw the old guard politicians out and hopefully the Robber Barons in jail. The State will nationalize all banking business and major industries. And being burocrats, they will make an even a bigger mess out of finance than the bankers before.

The State is taking over. All kinds of controls will be instated: import-export controls, price controls, currency transfer and payment controls, production controls and people controls. In the end, with all the planned public works, subsidies and an corresponding ever growing burocracy, everybody will be on the State's payroll. Dislocations and shortages of everything will become the rule of the day.

The Merchant of Debt might try to make a come-back in a last effort to regain power by selling his digi-gold scheme to the State, together with the licence to manage it. Tentatively, three times already, the Merchant's World Gold Council and the Merchant's Council on Foreign Relations, has published the digi-gold proposal already in view of testing public opinion. It claims to be a resurrected gold-standard, where the State keeps the referent gold in custody, but where the public will have no claims on the bullion and will hold but nothing as a virtual gold card. Digi-gold, based on what gold? Must be fantasy gold, as the world's treasuries are empty having leased out the nation's bullion, never to see it back. And no bullion will come from the side of the Merchant either, who will not think about ever surrendering his own hidden hoards.

The idea is to trick people into just one plastic card per person each for all financial needs. Obligatory all personal information would be added to the card, thus making every person for hundred percent a slave of Big Brother State. Let us hope such Orwellian plan will not succeed.

In the slide to the bottom, it will be each country and each man for his own. Under internal and external stress, old Alliances, Super Powers and whole Nations will brake up. No more globalization. No more reserve currencies. No more free borders, free trade or easy migration. No more banks except to facilitate the general flow of money. No more BIS, Bank of International Settlements, no more IMF or World Bank.

No more stock exchanges and financial markets, notafter they cheated the hell out of everybody! Currencies will retreat behind their borders. No more Dollar and Euro. May-be a local Zim-Dollar, a Rus-Mark or a Yuan left, besides gold and silver circulating anonymously in international grey-markets.

New trade-agreements, mostly barter deals, bypassing the old Anglo-Saxon dominance, are being signed daily. The world's resources are being carved up between the eventual new powers of the 21st Century. Resources will be the (war) game of survival in the 21st century.

Only there on earth, where the people will still have some individuality left, abide morality, discipline and tradition and still have their town markets and themselves are able to provide for their basic needs, only there will civilization have a chance to survive.

The world will not fall into depression. Depression does not fit in with the present mood. People are nervous, unsure and agitated. The panic of survival, the people pressure and hyper-inflation will spur government and people into high gear. Inflation works like a whip: people have to work harder and harder to stay in the same place, that in contrast to depression.

But as always, there will be some individuals, dye-hard freedom lovers, with an instinct for survival, that will manage, some way or another, to escape from under Big Brother's controls, keep their independence and freedom and survive by using their brains, backed up by an secret stash of freedom money of precious metals and or some high value industrial metals and may be some high quality precious stones. They will be the pioneers that will lead the world to a new and hopefully better future.

There is no way that mankind will be able to survive with today's dog-eats-dog mentality. That only leads to ever more warmongering, guaranteed suicide and mutual annihilation.

Man has no other choice than to try to ascend, at the least one step up, on nature's ladder of evolution, to finally start living as can be expected of an intelligent human being. Mentality has to change. People have to learn to think again, talk to one another and trust one another again. If not, man will simply be discarded by Nature as a miscarriage to descend into a state of ever slaving and warring ant-societies.

People are their own greatest enemies. Their own weaknesses have destroyed many a prosperous society. Keeping the human weaknesses in mind, I have a few suggestions for the benefit of future generations:

A world made up out of a manifold of small States, - united in a New World Council, - limited from around six to ten million people, where everybody can feel part of and where the leaders will always be in the limelight, will provide for a much smoother ride into the future, than a world where only a handful super-powers are constantly at one another's throat.

A currency must be resistant to fraud. Only hard assets like gold or silver, that have their own independent, intrinsic value are money. Fiat money should be declared illegal. Subject to standards of weight and purity private enterprise not government should be responsible for coinage and emission. Money has to be able to circulate and adjust freely from grassroots' level up and not be dictated from the top. Moneys role is to passively facilitate and not to guide the economy.

All what constitutes debt and interest must be outlawed. Participation in ventures should be restricted to personal share holding on name and not held by a company.

No more down payments, short selling, options, futures and derivatives. Cash only on the deal!

Markets must be transparent, published on the internet and standardized.

So far the suggestions.

In closing this essay, I would like to add a few thoughts about a subject, that has nothing to do with finance, but with western materialism. A contrarian interpretation of the Essence of Time might help people to get away from all the present destructive materialism to regain their footing.

2009 has been declared the Year of Astronomy by the United Nations. I wonder if they are referring to the stars, or to the astro-economics of modern finance: the astronomical losses, the astronomical derivative numbers, the rescue packages, budget deficits or the threatening astronomical hyper-inflation?

But jokes aside, except for some great technical advances, Science is stuck in a cul-de-sac with aged ideas. Since the beginning of the 20th century, Science has not managed to make any significant progress in explaining the basic workings of the Universe. Science is getting ever more stuck in their own confusion and stubbornness by persevering in the wrong direction. So why celebrate the Year of Astronomy when there is nothing really to celebrate?

The calcification of the Scientific Establishment is just as much a sign of the Decline of the West as the West's own decadence, imploding finances and economies turning sour. Since Einstein's Relativity, the Planck Constant and Heisenberg's Uncertainty Principle, no further great advances have been made. The erroneous explanation of the cosmic Red-Shift, leading up to the Big Bang, has been a major mistake by Science. The prima-dona academic establishment is refusing to look at any new ideas that might undermine their holy grail. The worst mistake Science ever made, is to go on using hundreds of equations containing a time factor, without ever having defined what time really stands for.

Well, I got news for them. And here I am feeling as sure as Bruno even when standing on the stake still refusing to retract his brilliant view of the cosmos.

After years of deliberation I have come to the definition of Time, A definition, that overturns many a holy grail:

Time is the force that moves and changes the whole Universe, with all it contains, with the absolute speed of light, into the future.

-The definition makes Time absolute and Space relative, without invalidating Einstein's mathematics of Relativity. Time and Space just changes places.

-In parallel, multiplying Einstein's equation of the atom with all the atoms the Cosmos might contain, the definition of Time brings the whole of the Universe, like the atom, under one, most simple, equation and well TE=M.TA2 , made up out of three dimensions of Time and no more.

-It disposes of the Big Bang Theory and returns to Fred Hoyle's Steady State Universe.

- It shows an Universe, not consisting of matter where only by pure chance matter is creating life sporadically, but the other way round, where it is the Force of Time (the Force of Life?) that creates matter and with it the whole Universe.