Friday, June 1, 2018

CONTAGION

What most people don't understand is everything is interrelated, just like the ecosystem we live in.  Take nature for example, the water, the water temperature, plants, animals, air, light and soil all work together. ... If the animals that depend on the plants die, any animals that depend on those animals will die. Ecosystems in nature and our world that we live all work the same way. All the parts work together to make a balanced system.  In economics and finance, a contagion can be explained as a situation where a shock in a particular economy or region spreads out and affects others by way of, say, price movements. In this  context contagion effect explains the possibility of spread of economic crisis or boom across countries or regions.

We live in our own ecosystem over here in the USA we don't hear what goes on in other parts of the world, since we believe we are shielded and protected but we are not.  Here's how contagion will eventually spread to the USA.  

Government debt to GNP in the Eurozone
 Greece 177.8%   Italy 130.7%   Portugal  122.5%   Cyprus 105.7%
Belgium  101.5%  Spain  97.6%  France  96.4%  United Kingdom  86.3%
Austria  74.8%  Croatia  73.7%

A new report just came out that Deutsche Bank the largest bank in Europe has been classified as a problem bank by the FDIC and is included in a list to be watched closely.  (1) The Euro was doomed from the beginning because they wanted to have a single currency among the European nations but did not want to merge the economies.   (2) They wanted to compete with the USA but couldn't because we were one nation from day one.  (3) We have a single language.  (4) All 50 states debts are nationalized by our constitution, therefore bankrupt states like California, Illinois, New Jersey cannot bring down the whole 50 states like here in the USA.  Every week there is a new crisis coming out of these countries.  Not to mention it's a complete mess in Valenzuela and Brazil, and Japan, Korea and China slowing down drastically. 

Now you see why we see the big real estate construction cranes all over, that's foreign money flowing into the USA because the money people don't trust the governments and banking systems in those countries.  At the same time the US Dollar has escalated from a low of $88,15 to $94.13 and rising while the Euro is breaking down from a high of $125,5 and now sits at $116.5 and now the US Dollar is rising against all currencies on a worldwide basis.   It's no wonder the IMF Bank wants a disaster fund for the Eurozone.  

When things start to break down later this year in the September/October time frame the crisis will begin in Europe and contagion will spread because of the inter-related banking systems.   The powers know it but the Deep State is scared to come out about it for they do not want to be blamed when things go awry.  See Debt is every country's Achilles heel, simply put there is not enough cash flows to cover the debts, furthermore there is no viable solution.  Raising taxes and cutting benefits will not cut it in Europe or South America  with their high unemployment and run away inflation, where is the money going to come from.  (2-1=1) get it...With the USA's rise in our interest rates and the escalating strengthening of the USA dollar the reserve currency of the world will eventually push these nations in default.   Last count there are 100+ country's on the verge of default.  Could war be possibly around the corner?

Therefore we are just as my essays HOUSE OF CARDS and CRASH AND BURN are in full effect.  It's simple math and physics, hence contagion takes place because human nature won't prepare just like in the Days of Noah until the dam breaks and wave after wave overtakes us while we sit in front of our TV sets like zombies with our Wilful Blindness condition and not prepare because we are Ole Foolish Galatians bamboozled and hoodwinked into believing the government can and will save us...they said the TITANTIC (USA) was unsinkable ...not, it sunk, so prepare ye the way the time is at hand, the trumpets have sounded by your Watchman crying out as a voice in the wilderness.  In the Bible there are always forewarners of events before they happen, mostly falling on deaf ears.  In Habakkuk 2 it states "For still the vision awaits its appointed time; it hastens to the end—it will not lie. If it seems slow, wait for it; it will surely come; it will not delay. " How long not long, get ready, get ready, get ready.

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