I. Summary
The article 'G-8 Ministers Tout Strong Global Economy' by Alex Nicholson, AP Business Writer, dated 6-10-2006, communicates economic hype from the international financial leaders. http://tinyurl.com/kme42
Communication coming from the G-8 was simply ballyhoo about wealth and prosperity created by decades of the use of fiat currency and expanding credit liquidity.
The G-8 bravado disregards the facts that herald the end of the end of both a political and economic age.
II. The AP Report on The G-8 Conference
The Group of Eight finance ministers said Saturday 6-10-2006 that global economic growth remains strong but high energy prices and global imbalances pose continuing dangers.
Specifically U.S. Treasury Secretary John Snow said the United States was upbeat on the state of the world economy: "We see no major crises, no major economies in recession, we see strong growth and inflation well-contained," he said at a news conference. "That's a commendable set of results."
The ministers' statement did not refer to the inflationary pressures that led several central banks around the globe to raise interest rates this week but, at a news conference after the meetings, French Finance Minister Thierry Breton said that inflation was "clearly under control."
III. The G-8 Meeting Was Simply Bravado About Prosperity Created Through Expanding Credit Liquidity
The G-8 failed to address the significant down turn in financial markets worldwide http://www.safehaven.com/showarticle.cfm?id=5331 and failed to address the likelihood of ongoing Fed interest rate hikes.
The G-8 comments omitted the truth of economic cycles: that of economic expansion and contraction.
Perhaps at the next G-8 meeting there will be some more "sober" remarks about the need for increasing interest rates and a statement about contracting liquidity.
IV. The Ides Of May Was Both A Pivotal Economic And Political Point
The Pivotal Economic Point:
• The Stock Market epitomized by the Russell 2000 Index (^RUT) peaked at $781 on 05-05-2006 http://tinyurl.com/jtm2m
• The U.S. dollar ($USD) fell to $84 after having started its slide against major currencies on 4-10-2006 falling from a price of $89.5 http://tinyurl.com/m3ywx This fall was reflected in the rise of Rydex Weakening Dollar (RYWBX) having arisen on 4-10-2006 from 22.73 http://tinyurl.com/mdqzb
• The bond market continued its fall, having begun falling apart 03-01-2006 as seen in the chart of TLT vs. RYJUX http://tinyurl.com/p45cc .
• Gold rose to over $700 as seen in the rise of GLD, an ETF, to $71 on 05-12-2006 http://tinyurl.com/rb3zv
The Pivotal Political Point:
• George Bush ordered the National Guard to the border of Mexico on May 15, 2005. This was an unlawful act, one not sanctioned by Constitutional Law, one in violation of the rule of law of Posse Comitatus and a de facto declaration of Martial Law. The Posse Comitatus Act is the U.S. statute prohibiting the use of "armed force" for law enforcement; its intent, purpose and application described quite well by Libertarian Gene Healy in 'What of Posse Comitatus' http://tinyurl.com/f963p
V. The Ages
The Past Age
The past economic age: Age of Prosperity
• where wealth came through credit expansion http://tinyurl.com/q7dqm
The past political age: Age of Constitutional Republics
• where one had inalienable rights of life, liberty and the pursuit of happiness http://tinyurl.com/e95p5
The Coming Age
The coming economic age: Age of Hyperinflation
• will see inflation roar as the value of real estate, stocks, bonds and the dollar become worthless http://tinyurl.com/o3hqk Eventually there will be a new global currency to replace the dollar.
The coming political age: Age of Tyranny http://tinyurl.com/lboom
• will have ten regions of global governance as called for by the Club of Rome in 1974 http://tinyurl.com/mtn2u each region will be a self enclosed homeland security state where the state and corporations combine to rule over the people http://tinyurl.com/jvkhj
• will be one where the "philosopher kings" rule the world, a principle describe in Jim Lobe's article: 'The Strong Must Rule The Weak' http://tinyurl.com/qtlnn
• will operate under global principles such as those of Leo Straus http://tinyurl.com/kcd9g and the Security And Prosperity Partnership (SPP) http://tinyurl.com/pjakg for subjugation of the peoples
VI. Genuine Financial Insight Will Come Through Independent Media
Truth seekers will have to continue to use independent media for genuine economic reports of stagflation, global financial meltdown and wealth preservation and management; reports such as:
Stags Leap
http://www.safehaven.com/showarticle.cfm?id=5277
Ominous Warnings & Dire Predictions...Part3
http://www.safehaven.com/showarticle.cfm?id=5278
