TLS Blog

Financial Permaculture Report July 16 2009
Capsulation of last two weeks in money and markets……..
Bankruptcy filings are rising to 6,000/day.
Unemployment is now approaching 7,000,000. The General Motors bankruptcy is the largest in history. The huge amounts of money that left the country in the 1990’s is now coming back as part of the Asian car companies buying up American manufacturing at low, low prices.
Big news of the week, Federal Reserve Chairman Bernanke’s testimony before congress. “Now is the time to start working on reining in the government debt. We need to start preparing for the restoration of fiscal balance”—
Translation: Now that we have built up our the banks, we need the restoration of fiscal balance—he then proceeds to say the way this needs to be done is to pare back entitlement programs—What that means is Medicare, Medicaid and Social Security.
What we are watching is a fundamental restructuring of the New Deal and the social safety net. With the lack of knowledge by the public of the engineering of the money system, and Osama’s’ high approval rating, the political and economic conditions are ripe to restructure the New Deal…i.e. erase the social safety net.
How they will do it. They will plead pressure from international financial institutions. We will see a slow and steady shift as they reengineer the social contract because of the demand of international lenders. “The IMF made me do it.”

There is a bright spot, have our congressman support the Ron Paul Federal Reserve bill requiring the transparency of their books so people can see where the money is going.
If you have been feeling the bailouts over the last 9 months seem shocking and unprecedented, you are right Tom O’Brien from tigernetworknews.com comments, ““What we have just witnessed in the banking sector is going to go down as one of the slickest moves in financial engineering, not only in our lifetime, but in history.
In Jan through March, what we had there was the destruction of the banking system. They all got caught with their own bad paper. We have had all the asset prices at the lowest levels in years, yet the banks couldn’t take advantage of it because they were broke. It took all of four months to regroup, put the fear of god into the citizens, put a bunch of money into lobbying congress, and presto, they have taxpayer money to start the game once again. “We have a banking structure that has money, won’t lend it and now is ready for a buying spree at lower levels. Privatize the profits; socialize the losses—now come in for the kill once again at lower prices to harvest undervalued assets.
The banks have recapitalized at the expense of all of us. It took the entire history of the nation from 1776 to 2008, to run up 12 Trillion dollars in debt. In the last year a new administration and congress and The Federal Reserve have given and lent out that amount of money in one year! An extraordinary feat of financial engineering!
We recommend, getting out of debt, diversifying your investments, get out of stocks, buying real assets like land and precious metals and develop your local food supply. The highest priority is take care of your heal by avoiding toxic substances entering your body. The basic message: we are on our own.
Thomas Hupp
Financial Permaculture Institute

Filed under: Financial Permaculture on July 18th, 2009