Where is the Crises, as Christmas is upon us?

Where is the BIS and the nation states' Central Banks and what is the economic and political conditions of the UK and US Governments, as 2009 comes to a close.

Banks and Conglomerates continue to collapse and if the condition of some of the first group of supported institutions like Fannie Mae, Freddie Mac and GMAC as well as A.I.G are an example of the crisis and bailout's effects, the system has not recovered, contrary to the Treasury Secretary's view and, is still on the edge of a precipice.

The growing number of Zombie institutions express the future of a number of the 'To Big To Fail' groups, who will require permanent infusions to keep these Zombie institutes from total collapse. These institutes will continue to drain the working man of their future, as these group's debt are passed on through taxes, much of which will be hidden in inflation and interest rate increases in the future.

It should be noted, that there will be a period of contradiction born out of the infusions and QE effects, before the negative effects express themselves. The amount of quantitative easing that has taken place, particularly in the UK and US, is likely to express itself as new credit and green shoots, you cannot put trillions of dollars into the system without mutating the effects of the systemic crisis. Inflation and the devaluation of these national currencies will result from these policies, although only when, as in Germany in the 1920s, the following conditions are met will the full effect be realised.

When quantitative easing took place in Germany as a result of reparations, forced on Germany from 1919-23 following WW1. The result of quantitative easing led to hyperinflation. The act of QE is the only act, which has the potential of effecting currency values, leading to hyperinflation. Whilst the additional Fiat Currency stays off the streets, the effects will not be felt. But, if that currency goes outside the commercial environment and into the general economy, the only way to stop its negative effects on the economy, is to take the QE out of the system as taxes -and not allow it rotate or be reinvested into the economy. As this will not happen in reality, the effects will be to over inflate the value of goods and services.

Whilst the German people were fearful they stored their cash and held back on spending the QE, which locked away the natural effects of QE on the system. The false idea that quantitative easing had limited effects on the economy, was the general view at the beginning. The problem came when the people felt things were beginning to improve. The German People's actions in spending their stored cash, triggered the beginning of the hyper-inflationary conditions, which spiralled out of control, as QE followed more QE.

The following video expresses the conditions surrounding the German crises at that time, which led to their national economic collapse. By considering the circumstances or causality one can see the potential dangers, whilst not as catastrophic, one would hope, many millions will loose their livelihoods and or homes. And, with a real risk of Economic Depression looming. Governments are trying to re-inflate bubbles and promote new bubbles to delay the effects of the crisis, none of these policies are solving the systemic crisis. The system under such conditions, has, on more than one occasion, used war to purge and redevelop the system to produce new markets and deliver the interests of the powerful oligarchs. The present foreign policies, do little to make one feel confident, that these options aren't under consideration of further expansion in the future.



The difference between the story of the quantitative easing resulting from Germany's reparations and today, is, that the reparations of today, are set by the Governments on behalf of the International Finance System and the interest of International Corporations. In addition too the long term interests of the US and UK government's Foreign Policies and national interests.