Market Crash?

Is today the day where the Great American Ponzi Scheme collapses? I say no. One of the key aspects of a dark age is the breakdown of the commerce web. Today a few important strands are breaking as some big banks fail, but the web is still there…at least for a few more months. Currently, I still hold that the real crash will be in February of 09 when the much more tangible sector of the economy, retail, begins to fail after a dismal holiday season.

I can tell you this though, the crash is inevitable. The Elites know it. They are scrambling to gather their wealth before it happens so that when the New Dark Age descends they will be in a position to become the New Aristocracy. But, despite the enormous power they already wield, they cannot stop the crash (nor do they necessarily want to).

You’ll notice I mentioned the “Great American Ponzi Scheme”. “What is it?” you ask. The GAPS, is one of the primary mechanisms that the Elite has been using to transfer the collective wealth of the American middle class into the coffers of those who will become the New Aristocracy. It works like this:

1) First, the Elites convince the middle class to give up the concept of pensions and replace them with 401k plans.

2) At the same time, the Elites buy preferred stock in various institutions in which they have some control over the business decisions made.

3) Using their influence, they get those institutions to artificially inflate their value. For example, banks stuff their books with mortgages - they may not expect many to get paid back, but they still show as a full valued asset on their books.

4) They wait for the 401k plans to use middle class American’s retirement money to buy the regular (not the preferred) stock in those institutions. This is the important step where the wealth is transferred from the middle class to the Elites. Actual capital is used to buy stocks with only a virtual (imaginary) value.

5) Now the Elites can, at this point, sell their preferred stock and cash out. Or, they can just wait. They carry no (or at least a significantly lesser) risk. If the scheme fails, they own PREFERRED STOCK. That is, they will benefit from a bailout while the regular stock holders are shafted. Even if the institution is not bailed out, they are still the ones who get reimbursed during the liquidation of the institution, not the regular stock holders. Either way the capital has been transferred to them.

Now, you might be able to see why conservatives have pushed so often to privatize Social Security. Such an action would allow that money to buy stock in their companies, further transferring the remaining wealth of the middle class to them.