G7 helpless in the face of mathematically certain bankruptcy | Will it be chaos or controlled implosion as the Western bubble bursts?

Benjamin Fulford – June 8, 2015: G7 helpless in the face of mathematically certain bankruptcy

The leaders of the Group of Seven Industrialized Nations or G7 are holding an emergency meeting in Germany in a futile attempt to avoid their inevitable bankruptcy. The leaders talk about Greece, the Ukraine, China, the Middle East and other matters as if somehow they are still in control. The leaders need to understand that there is a thing out there called reality and, no matter how long you try to avoid it, it has a way of catching up to you. The fact is that, with the exceptions of Canada, Japan and Germany, the G7 nations and their allied Western states have been running a deficit with the rest of the world for the past 40 years. The elephant in the room that nobody talks about is the fact the biggest debtor of all is the Corporate United States.

The rest of the world has made a collective decision to stop financing these Western governments until they stop their constant war-mongering and resource stealing. Since the rest of the world controls most of the real money (i.e. money connected to physical objects) they control the underlying reality. You can eat bread but you cannot eat derivatives or dollar bills. You can trade real things like cars or oil for rice or wheat but if you lose trust, nobody will trade your IOUs for real things. The G7 countries, especially the Corporate United States (as opposed to the Republic of the United States), have managed to postpone the inevitable with fraudulent economic data, offshore slush funds, and derivatives theoretically worth astronomical amounts.

However, no amount of zeroes added to astronomical numbers inside Western banks will make any difference so long as these zeroes have no connection to the real world.

The Chinese have insisted on payment in things, like gold, that actually exist. The American corporate government has, like a once rich junky fallen on hard times, pawned family heirlooms, borrowed from friends, stolen and lied so far to get its next fix of debt. They have stolen Iraqi oil, African gold, Japanese savings and everything else they could get their hands on. However, since real US GDP has shrunk by 21.4% since 2011, it is becoming impossible for the US Corporate government to keep paying its snowballing debts. The obvious answer is to declare bankruptcy.

The problem is that very few people are alive today who remember the last time a European country went bankrupt. No Anglo Saxon country has gone bankrupt for a thousand years so the Americans are even less familiar with what bankruptcy really entails.

For those of us who witnessed firsthand such things as the collapse of the Japanese bubble and the bankruptcy of Argentina the future is easier to see.

Let us compare these two cases to what is happening to the G7 in order to predict the future.

In the case of Japan, the bubble burst in the years 1990-1992. The Japanese government knew as early as 1992 the bad debt total was 200 trillion yen (about $2 trillion). However, public announcements then put it at only 3 or 4 trillion yen. Company A would pass on its bad debt to company B who would pass it on to company C, each with a different accounting deadline. It was like an individual using their American Express card to pay their Visa bill and then using the Visa to pay for their MasterCard and then use their MasterCard to pay off American Express. This scam bought time.

Eventually though, a few of the worst companies were no longer able to hide their bankruptcy. I remember interviewing Kichinosuke Sasaki, president of the Togensha, one of those companies, in the late 1990’s. He was then the poorest man in the world with a net worth of minus 9 trillion yen (roughly minus $90 billion). He was wearing a silk suit that must have cost him tens of thousands of dollars when he originally bought it but it was pretty threadbare and shabby when I interviewed him. He told me he the bankers were keeping him half-alive on a miserable allowance. The bankers would not let him declare bankruptcy because that would have triggered a domino effect that would inevitably lead to the biggest Japanese banks.

In the case of Europe, Greece is playing the role of Togensha. If Greece is allowed to go bankrupt then big European banks will have to declare their Greek debt in default and thus be forced to admit they are also in default. No wonder the top managers of outfits like Deutschebank keep resigning. Nobody wants to be the captain of a sinking ship.

However, the Japanese experience with the bubble makes it very clear that postponing the inevitable just increases the total pain. The Greeks already know this because they are being forced to play the role of Mr. Sasaki, and be squeezed of everything they have so their bankers can pretend all is well. Average Greek income has fallen 40% in the past five years so that bankers can pretend they are solvent. It will only get worse until Greece declares bankruptcy.

It is much better to declare bankruptcy than to stay chained to an unpayable debt burden.

Bankruptcy need not be a bad thing. The first thing people need to understand is that finance is spiritual or psychological. If Greece goes bankrupt, people, buildings, factories, farms, beaches, houses etc. will not disappear. The only thing that will change is how people decide what to do in the future with these real world assets.

In the case of Argentina, as well as in the case of Iceland, declaring bankruptcy was a short sharp shock followed by a rapid rise in standards of living. The people were also freed from the clutches of parasitical bankers.

Of course, if Greece goes bankrupt eventually so will the rest of countries using the Euro.

Angela Merkel recently went to China and Japan to ask for money but returned empty handed.

Since there is no other source of money big enough to bail out the German backed Euro, the German financial system is thus also likely to become insolvent sooner rather than later.

The end result will be a return to the Deutschemark, the Drachma and other currencies tied to historical cultures.

Now here is something to ponder. The European Union Parliament building was deliberately built to resemble the tower of babel. You can see this visually at this link:

http://deadlinelive.info/2012/11/26/fascism-rising-eus-new-tower-of-babel/

The story of the Tower of Babel was that it eventually collapsed and all the different peoples went their separate ways. The new tower of babel was completed in 1999. The question is, where there planners who knew way back then the EU project was destined to go the way of the tower of babel?

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Benjamin Fulford – June 15, 2015: Will it be chaos or controlled implosion as the Western bubble bursts?

BenjaminFulford.net
The signs are undeniable that some sort of historic event is imminent. The latest economic news makes it certain that the Western financial system as we know it is about to end. The question is, will there be a controlled implosion followed by a phoenix like revival or, will there be revolution, chaos, anarchy, bloodshed and misery. The answer now lies in the hands of the military forces of the West because the political world, especially in the United States, is dysfunctional.To understand how serious the situation is, please look at the following chart.

http://davidstockmanscontracorner.com/wp-content/uploads/2015/05/financialization3.png

It shows there is about $80 trillion worth of financial products in the United States that has no basis in the real world. During the Japanese bubble I used a similar chart to show the bad debt in the banking system was worth 200 trillion yen at a time when the Japanese government was saying there was only 3 trillion yen worth of bad debt. Another way of putting it is that US asset prices will have to fall by about 80% before they hit the ground of reality. Japanese real estate prices fell 90% after the bubble burst there. The American bubble is 49 times larger than the Japanese bubble was. It is not a question of if it will burst but when. Denying reality does not make it go away.

There is also evidence coming from indexes based in real world transactions that cannot be manipulated by financial trickery. One is the Baltic Dry Index, the price of shipping goods, mostly raw materials like oil, metals, grains etc. It is at a record low now.

http://thedailycoin.org/wp-content/uploads/2015/06/Screen-Shot-2015-06-08-at-2.56.50-PM.png

Another is the China Containerized Freight index, which measures the cost of shipping finished industrial goods out of China. It is also at a record low.

http://thedailycoin.org/wp-content/uploads/2015/06/China-Containerized-Freight-index-2015-06-05.png

Perhaps you have noticed your e-mail spam filter is now featuring more Chinese enterprises desperately seeking customers than Viagra ads or Nigerian scams. Clearly something big is about to happen in the worlds’ markets.

There are a lot of people figuring this out now. The American Association of Individual Investors survey shows that in May of this year individual investors dropped the percentage of money they invest in shares to 57.8% from 67.9%. This is an astounding dumping of over 10% of their shares in exchange for cash in just one month. The Greeks are also bailing out of the Greek banking system at a rate of over 500 million Euros per day. This sort of thing is usually referred to as a bank run or as rats deserting a sinking ship.

Insiders say the most likely candidate to play role of Lehman Brothers in the upcoming crisis is Deutschebank. Deutschebank has had its S&P rating dropped to BBB+, which is lower that the AA- that Lehman had before it collapsed. Furthermore, Deutschebank’s derivatives book has a nominal value of 54.7 trillion Euros, compared to an EU GDP of 9.6 trillion Euros and a German GDP of 2.74 trillion Euros. The basis for a lot of those derivatives is Greek debt and the Greek government de facto defaulted on June 5th.

Japanese imperial family and Chinese government sources both say German Chancellor Angela Merkel’s recent visit to Japan and China was to ask for money to help deal with this problem. However, both sources confirm she returned empty handed.Investigations by non-corrupt US authorities have revealed that much of the money taken from US tax-payers after the collapse of Lehman Brothers was leveraged 100 times and used to bail out European financial institutions.

This time, this is not going to be allowed to happen, according to multiple sources in the US agencies and Pentagon. Instead, some sort of showdown can be expected, Pentagon and other US agency sources say.

The attempt to start World War 3 in the Ukraine has blown up in the face of the Khazarain mob because it prompted a Russian intelligence dump. Here is some more of the information sent to us by Russian Intelligence in response to the recent Khazarian mafia attempt to portray Russia as a menace:

“We did not blow up the WTC on 9/11/2001 with W-54 Davy Crockett Nuclear Pitts. We did not steal 350 decommissioned W-54 Davy Crockett US Nuclear Pitts from the backdoor of Pantex, Texas, USA, which were manufactured at the Hanford Nuclear Plant. We did not bring these stolen W-54 Pitts to Israel. We did not recondition them in Israel, and it was NOT US who brought these nuclear Pitts back through Houston, Texas to be stored in various Israeli Embassies, including the Israeli Embassy in New York, and we DID NOT take these nukes to the Twin Towers by using Israeli Urban Moving Systems.”

In other words, the Russians are giving the Pentagon white hats detailed, actionable intelligence about Khazarian mass murder inside the United States.

The Russians also say the crash of the “Malaysian Air Flight 17” was Vanguard (the Khazarian mob’s corporate front) retaliation against both Germany and France in response to their plan to create European Army and drive Vanguard criminals from Europe. It was also a reaction to Angela Merkel’s and Francois Hollande’s request to Ukrainian President Poroshenko to “kick out Vanguard’s representative Igor Kolomoyskyi, to fire him from his position as a governor of Dnepropetrovskiy County of Ukraine and take from Kolomoyskyi’s banks all of the government money in order to separate fake Vanguard’s dollars and real dollars that Ukrainian government has.” In response the Europeans, according to the Russians, one of the leaders of Khazarian mafia, Henry Kissinger, became extremely angry, saying that “beautiful France can expect a regime overthrow!”

The Russians also provided detailed intelligence on exactly how Vanguard subsidiary Raytheon, and two other companies, manufactured and used equipment to remotely hijack airplanes.

Furthermore, the Russians have provided the Pentagon white hats with a detailed list of the Khazarian agents involved in the destruction of the World Trade Center Buildings on September 11th, 2001.

Related The FBI is Responsible for More Terrorism Plots In the United States Than Any Other Organization

Pentagon officials expect a limited civil war inside the United States starting as early as this summer in order to deal with the Khazarian fifth columnists.

The Pentagon officials also cited many signs of progress so far against the Khazarian mob. The first was the defeat of the TPP and TTIP Khazarian power grab in the US congress and EU parliament. Labour union action and massive street protests helped in the defeat of these bills.

The other thing they said was that US Secretary of State John Kerry was shot by Khazarians because of his peace-making efforts with Iran and in the Ukraine. The bullet missed his heart by two inches, the sources say. They now expect payback against Israel, Victoria Nuland and her Khazarian bosses.

Also, in another attack against Khazarian influence in the State Department, Under-Secretary for Latin America Roberta Jacobson was demoted to Ambassador to Mexico because of her failed coup attempt in Venezuela.

The Supreme Court is expected to take a decisive role in curbing Khazarian power over the coming months, the sources say. They expect rulings against Obamacare, gay marriage and many other issues being pushed by the Khazarians. The Supreme Court is now apparently under the influence of the pentagon, the P2 freemason lodge and Pope Francis

There is also increased military action against Israel and her ISIS proxy in the Middle-East, the sources say. The Russians have been selling advanced missiles to anti-Khazarian forces in the Middle-East while the pentagon has been supplying anti-tank weapons to Iran and its allies in the region.

Also, Russia has been engaged in military maneuvers with Egypt that featured US F-16 fighter jets coordinating with the Russian navy.

http://tass.ru/en/russia/800380

Also, the death of the head of the Saudi Air-force, plus the missile attacks against Saudi Arabia have weakened Khazarian King Salman, who may soon be forced to resign “because of dementia,” the Pentagon sources say.

The American military are also picking a fight with China. The pentagon sources say the death toll from the cruise ship sinking in China was 444, a very bad omen for the Chinese. In response the Chinese send Fan Changlong, vice-chairman of China’s Central Military Commission, to meet with Pentagon top brass last week, the pentagon sources say. A tense four-hour meeting ended badly because the Chinese refused to promise to stop building on the disputed reefs, claiming they were located on undisputed Chinese territory. The Chinese would only sign agreements on disaster relief and army cooperation, they said.

The pentagon sources say China can expect more “tornadoes, sinkings, quakes etc.” until they stop their construction of military bases on disputed islands. The pentagon is also now going to push for further militarization of Japan.

At the end of the day, though, this is all just table thumping by the Americans as negotiations for new international structures and rules to replace the crumbling post-war order continue.

The White Dragon Society, for its part, is still pushing for the creation of a meritocratically staffed future planning agency with an initial budget of $7 trillion to start a massive campaign to end poverty, stop environmental destruction and prepare for an exponential expansion of earth life into the universe.

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