Naguib Sawiris, the chairman of Egypt's Orascom Telecom, told the Financial Times (Business calls for unity alliance) that the protesters "are losing support in the street: many people are against their demand of President Mubarak to leave.
"They worry about stability and people want to go back to their business.
"Already people are short of food and money (and) businesses are going bust."
He estimates that the unrest could wipe 10 per cent off Egypt's gross domestic product.
At the beginning of 2011, the economy was expected to grow by about 6 per cent.
"Many analysts say that foreign capital could pour out of the country once the banking system reopens, but concerns over domestic bank runs have also been mounting as Egypt’s political upheaval continues."
"The CIA has its own financial institutions on Wall Street... Links to U.S. intelligence, the CIA, Homeland Security and the Pentagon are crucial in the conduct of speculative trade."
How to explain the financial crisis?
The rich are getting richer and the poor are getting poorer.
Financial manipulation, linked to the CIA, is at work. The Mafia-Fascists are in power.
The bookFinancial Meltdown on Wall Street, by Professor Michel Chossudovsky, helps explain the crisis.
Among the points made:
1. The crisis is deepening.
2. Obama's policy is leading to the further "concentration and centralization of financial wealth."
This undermines the real economy.
3. "Starting in the 1980s during the Reagan-Thatcher era, local and regional level enterprises, family farms and small businesses were displaced and destroyed."
4. Thanks to the merger and acquisition boom of the 1990s, certain big global businesses have got bigger.
5. There are bankruptcies in all major sectors, from shopping malls to tourism.
6. The financial giants - "through stock market manipulation as well as through their overriding control over credit - can undermine and destroy large and well established business corporations."
7. In September 2008 we had the Black Monday collapse of Wall Street.
"Did this paper money 'vanish into thin air' as claimed by financial analysts, or was it 'appropriated' by institutional speculators in one of the largest transfers of money wealth in American history?"
The speculators made billions when the market rebounded.
The Wall Street banks "are the recipients of the bank bailout. And at the same time they made money speculating first on the rejection by the U.S. Congress and subsequently on the later adoption of the bank bailout legislation."
8. "This short-lived 'recovery' was part of the speculative game.
"The sequence of a 'one day collapse' followed by a 'one day surge' and recovery, followed by another 'one day collapse' a few days later, is part of the process of financial manipulation.
"Day to day instability and swings in stock market values are the source of large windfall profits accruing to 'institutional speculators' and hedge funds."
9. The September-October 2008 financial meltdown "was the result of a complex process of financial manipulation."
"Inside information, high level political connections and foreknowledge of key policy announcements are crucial instruments in the conduct of large-scale speculative operations."
"The CIA has its own financial institutions on Wall Street."
" Companies can be divested from within and large amounts of money can be moved out at an opportune moment, prior to the company’s demise on the stock market (e.g. Lehman, Merrill Lynch and AIG, not to mention Bernhard Madoff)."
The 2008 financial meltdown "is characterized by financial warfare between competing institutional speculators."
"The Federal Reserve Bank of New York and its powerful Wall Street stakeholders – which are Wall Street’s largest private banks – have inside information on the conduct of U.S. monetary policy."
"Links to U.S. intelligence, the CIA, Homeland Security and the Pentagon are crucial in the conduct of speculative trade."
"An example: they purchased 'put options' on airline stocks in the days preceding the 9/11 attacks."
On 26 November 2010, a UN think tank reported that, in the last 30 to 40 years (AFP) :
"The number of very poor countries has doubled...
"The number of people living in extreme poverty has grown two-fold."
1. Countries such as the USA are debasing their currencies so as to lower the real value of the massive debts they owe the rest of the world.
2. America's policy of printing more money could actually make things worse.
Printing more money could drive up the price of oil and other commodities.
There could be serious damage for importers of such key economic inputs.
3. International investors are starting to park their wealth in assets "that governments can't print more of".
4. China makes a lot of goods the world wants.
US exports in many sectors have become uncompetitive.
The causes of economic crises can be complex.
On 14 May and 15 May 1997, the Thai baht was hit by massive speculative attacks.
The baht devalued swiftly and lost more than half of its value. The Thai stock market dropped 75%.
Thai opposition parties claimed that former Prime Minister Thaksin Shinawatra had profited from the devaluation,[20] Former Thaksin cabinet member Sanoh that "There were four people who got involved in the Baht depreciation, i.e. Chavalit, Thaksin, Thanong and Pokin." [21]
Former Malaysian Prime Minister Mahathir Mohamad accused George Soros of ruining Malaysia's economy with "massive currency speculation." (1997 Asian Financial Crisis - Wikipedia)
1. In the USA, real inflation is 7% and unemployment is 22%.
2. The US central bank, theFed, for three years has concentrated on bailing out the firms that own the privately owned Fed.
3. No matter what the Fed does a deflationary collapse is inevitable.
4. Currencies have fallen versus gold for the past 9 years.
5. In all likelihood we will have inflation, then hyperinflation and then deflationary depression.
6. Wages and and asset prices have been falling with inflation rising.
That is a disastrous situation for Americans, except the 2% to 3%, who have had sense enough to invest in gold, silver and shares.
7. The elitists will be deprived of issuing any currency that is not backed by gold.
Inflation is on the way in much higher numbers to be followed by hyperinflation and ultimately deflationary depression.
8. When banks and foreign holders all try to exit US Treasuries at once – the bubble will break.
9. Where will all the money go?
The first haven has been commodities.
That will push prices up and add to price inflation.
This is in process, especially in gold and silver prices.
There will be a flight to quality, into real things.
(Those who choose to use ETFs will be jumping from the frying pan into the fire. - Criticism)
10. Bonds and the market will be falling along with the dollar and real estate.
There will be hyperinflation.
11. This is why a world meeting is necessary.
Without such a meeting to realign currencies and to multilaterally default on debt there will be international financial and economic chaos.
It would also lead to worldwide hyperinflation.
12. America will wake up one morning to Martial law.
You had best prepare. First for higher inflation, then hyperinflation and than deflationary depression. If you do not prepare you will be very unhappy.
US economic growth "showed widespread signs of deceleration" in the six weeks to the end of August 2010. (US economic growth 'decelerating' )
Many of the big banks are still in trouble?
Imagine an American family borrowed $450,000 from a bank to buy a house costing $500,000.
The house is now worth US$200,000.
The bank has a problem.
Western countries may be about to experience a long hyperinflationary depression.
"The improvement in living standards that the average American and many other Western countries have enjoyed in the last 40 odd years is primarily based on debt – debt that can never be and will never be repaid with normal money."(THERE WILL BE NO DOUBLE DIP )
Andrew Roberts, credit chief at Royal Bank of Scotland, believes the USA is going to print a vast amount of extra dollars.
"We cannot stress enough how strongly we believe that a cliff-edge may be around the corner, for the global banking system (particularly in Europe) and for the global economy," he said in a note to investors.(RBS tells clients to prepare for 'monster' money-printing by the ... )
1) Big global banks had vast toxic assets, supposed to be worth trillions, but in fact worth peanuts.
2) The collapse of Lehman Bros and AIG exposed this truth.
Big global banks were INSOLVENT.
3) The US FED, the US central bank led by Bernanke, helped the global banks to start unloading the toxic assets.
4) The FED created “money out of thin air” and used that “money” to buy the toxic assets at face or book value from the banks.
Now, the FED is “loaded” with toxic assets once owned by the global banks.
5) But, the global banks are not flushed with cash. Where did their money go?
6) It went back to the FED as reserves.
7) And, the global banks still have US$ trillions worth of toxic wastes in their balance sheets.
8) Bernanke, the US Treasury and the global central bankers were all praying that given time (their estimation was 12 to 18 months) the housing market would recover and asset prices would resume to the levels before the crisis.
9) But, the FED will have to print at least another US$20 trillion at the minimum, to get the economy 'moving' faster.
This will cause the dollar to decline in value.
This could cause panic among the people who have lent money to the USA - sovereign creditors, investors and depositors.
10) The Too Big To Fail Banks cannot be rescued and must be allowed to be liquidated.
The FED and other central banks will pre-empt a run on banks and will do the following:
1) Disallow cash withdrawals from banks beyond a certain amount, say US$1,000 per day;
2) Disallow cash transactions up to a certain amount, say US$10,000 for certain transactions;
3) Transactions (investments) for metals (gold and silver) will be restricted;
4) Worst-case scenario – the confiscation of gold AS HAPPENED IN WORLD WAR II.
5) Imposition of capital controls etc.;
6) Legislations that will compel most daily commercial transactions to be conducted through Debit and or Credit Cards;
Solution:
Maintain a bank balance sufficient to enable you to comply with the above.
Start diversifying your assets away from dollar assets.
"After three decades of deregulation and tax cuts for the rich, growth has slowed down, rather than accelerated, in almost all countries...
"In Britain, average annual per capita income growth rate was 2.4% in the 60s and the 70s, when the country was allegedly suffering from the 'British disease'; but it fell to 1.7% during 1990 to 2009, after it is supposed to have been cured of the disease thanks to Margaret Thatcher's heroic struggle in the 1980s."
The liberalisation of trade has meant "destroying swaths of 'infant' industries.
Deregulation has meant bosses, who pay themselves millions, looking for short-term profits.
To get short term profits you cut long-term investments in such things as machinery and research and development.
"It cannot be blithely assumed that markets know how to maximise wealth." Margaret Thatcher destroyed industries. In 2009, Britain accounted for 2.6 per cent of world manufacturing output. In 1980, the share was nearly 6 per cent. (FT.com / global producers) Margaret Thatcher had a Cabinet which included five Jews: Lord Young, Malcolm Rifkind, Leon Brittan, Nigel Lawson and Keith Joseph.(Margaret Thatcher's Jewish links)
What about Ronald Reagan and the US economy?
According to John Miller, teacher of economics at Wheaton College (Ronald Reagan's Legacy):
"The economy grew much more slowly in the 1980s than during the 1960s, more slowly than the postwar average of 3.6% annual growth, and no faster than in the 1970s or the 1990s.
"Nor did Reagan administration regulatory rollbacks unleash a productivity boom.
"Productivity gains in the 1980s failed to match those in the decades before and after, and couldn't hold a candle to the productivity gains of the 1960s boom...
" Reagan administration economic policies did not result in a 1960s-style prosperity, when workers' real wages went up in tandem with the value of stock holdings-just the opposite.
"Since 1980, the gains from U.S. economic growth have gone overwhelmingly to the well-to-do, and economic inequality has steadily worsened."
The economic hitmen have hit Egypt?
