By Catherine Austin Fitts
Here is the bottom line from our “2nd Quarter 2014 Wrap-Up”.
Slower US and global growth in the first half of 2014 means the slow burn is fraying. This means that the reduction of liquidity that results from Fed’s continued taper through the end of October is going to increase financial risk and geopolitical tensions. As the Fed Chairman and IMF heads have pointed out, their authority and tools can not address the growth or challenges in the shadow banking system.
I said at the beginning of the year that our big risk if the slow burn wears thin is not global financial collapse, but war – in all its varied forms.
From the genocide in Gaza to the fighting and economic collapse in the Ukraine, from the drought in parts of North America to the disappearance and crashing of commercial planes around the world, from enforcement actions against European banks to enormous tensions facing mid-term election campaigns, the managers of the global economy are scrambling to keep the slow burn going.
With the Fed taper ending in October, G-7 risks the WWI equivalent of landing on Normandy Beach with water pistols. That is, unless they call in the military.
Of course, all the fighting only shrinks the global pie, just as continual centralization has been shrinking it for a long long time. Control of the global currency and investment model – this is the end game.
Say a prayer for world peace and for peaceful hearts and minds for global leadership.
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