GEAB N°21 is available! 2008: Full global impact phase of the Very Great US Depression

- Public announcement GEAB N°21 (January 16, 2008) -

One year ago, LEAP/E2020 anticipated that the year 2007 would mark the US entry into what our team then called “the Very Great US Depression.” At that time, the dominant spirit was overwhelmingly euphoric. The word « subprime » was still unknown among the general public and experts estimated that the US housing crisis would bear no consequences for the rest of the US economy (and they simply refused to very idea that it could have the least global impact).  (These folks were right and I suspect they are concerning the Great Depression, too.)

In the course of 2007, facts however proved that a global systemic crisis was indeed throwing down all the principles the global economy was based upon since 1945; and that, along with the GEAB's analyses in September 2007 (GEAB N°17), the seven sequences of the impact phase of the global systemic crisis would simultaneously reach climax in the course of the year 2008 (added in italics below).

One aspect, and a catalyst, of this global systemic crisis is the United States' stepping into an unprecedented (1) socio-economic crisis in 2007, hitting hard on households (2) as a result of the housing bubble burst and of their increasing insolvency, soon followed by financial operators' insolvency, due to the pure and simple evaporation of USD hundreds of billion-worth in assets.

In 2008, in addition to these two types of US players, companies will be hit as are caught in the crossfire between credit crunch and the collapse of household consumption, as well as public organisations whose fiscal revenues crumble. From now to this summer in particular, the financial crisis triggered by the US subprime mortgage loans will turn into a much wider-ranging crisis involving the implosion of the Credit Default Swaps (CDS) market. This will represent a now tipping point in the impact phase of the global systemic crisis (see detailed analyses in the rest of this announcement and in the GEAB N°21 - upon subscription).

Asia, Europe and emerging countries in 2008 – Direct but mitigated impact of the Very Great US Depression: Recession, stagflation and Western financial institutions taking control

Simultaneously, the diving of the US into the Very Great Depression will bear a full direct impact on global economy altogether:

The Eurozone will step into a period of stagflation while the rest of the EU (UK in the first place) will be sucked up in a recessionary process. Denmark (and probably soon after Sweden) are preparing to join the Eurozone, as Prime Minister Fog Rasmussen (3) clearly expressed who recently resurrected the idea of holding a referendum on the Euro. These two countries are aware that the Eurozone will not cause any difficulty to their joining (under the Treaty, Sweden should in fact already be part of the Eurozone because it is required to adopt the Euro at a certain time) (4).

This sudden Scandinavian craving for the single currency is not the result of any recent conversion to the merits of European integration, but their growing awareness of the magnitude of the upcoming monetary, financial and economic turmoil, which could be lethal for small-sized economies not protected by a complete integration to larger entities.  (Joining the unions in hopes of safety in numbers.)

On the East of the EU, many countries are striving to reduce the time needed to join Euroland. However the differences in economic situations are still too important for these countries to be fully sheltered when the tempest hits full shot in 2008 (even Denmark and Sweden are lagging behind events).

In fact the Eurozone will not present exciting prospects in the year to come, with a growth rate around 1 percent. But compared to the rest of the world, it will be by far the area least affected by the impact of the crisis. The risk of internal divergence among the economies of the Eurozone are obviously real (and our team often detailed their anticipations on this subject in recent issues of the GEAB), yet the overriding feeling today in the Eurozone is about preserving a currency that seems to protect quite efficiently the Europeans using it from external turmoil.

This situation will require from the ECB and for the Eurogroup to find most efficient means of cooperation, taking into account the expectations of both the public opinion and the various economies. In the last few months, anti-ECB political speeches (Nicolas Sarkozy's, in particular) became dormant. And, considering that Germany is also about to be affected by the EUR/USD rate (soon climbing above 1.50 and heading towards 1.70, before the end of 2008), all the players of the European monetary and economic game will be ready to move on. According to LEAP/E2020, this will take the form of a 2 to 3 percent increase of maximum acceptable inflation rate by the ECB.

---------
Notes:

(1) Or rather ‘with a precedent' which most experts and specialised media often refer to, and that is the 1929 crisis and the Great Depression that followed in the 1930s. On this subject, the LEAP/E2020 team demonstrated in the previous issues of the GEAB that the present crisis if in fact much more serious that the 1929 crisis.

(2) If anyone still doubts that there is a recession in the US, we suggest he/she complies to the following simple exercise: enter the expression December sales down; in Google and see the impressive list of companies from all sectors (retail sales, cars, electronic, furniture…) whose sales collapsed in December 2007, a month usually very profitable due to the holiday season.
 

Out of the Ashes: A New World Order

Global elite signal declining superpower status of the United States, rise of new order

Old-Thinker News | Jan. 24, 2008    By Daniel Taylor

Comment: French TV was kind enough to inform us about the true decision makers behind Davos - the Bilderberg group. A video clip of this report and an English translation can be found here. The discussion which took place in Davos, Switzerland among several individuals who were themselves members of Bilderberg (such as Henry Kissinger and Gordon Brown) gives a window into the inner workings of the elite game plan.

As the United States faces an economic crisis that is being compared by experts to the 1929 Great Depression, the global elite are proclaiming the fall of the US and the rise of a new global order.

The IOL reports that the recent meeting in Davos, Switzerland, which focused in part on the global economic meltdown, pointed to "global" solutions and the need for a strengthened United Nations in the face of world crises.

Sovereignty, according to many who attended, must be weakened. The IOL reports, For Gareth Evans, former Australian foreign minister and now president of the International Crisis Group, even those countries with a deep resistance to intervention were starting to recognise that egregious crimes against humanity could not go unchallenged.

"There is now the beginning of a global consensus that sovereignty doesn't mean a license to kill, doesn't mean a license to stand back and allow killing of that order to take place," Evans said.

"This is a very real phenomenon, that sovereignty is not what it was and can't be what it was," he added.  (Alluding to the U.S. unilateral actions causing wars.)

Writing in the evening standard, Anthony Hilton states regarding the Davos meeting, "World leaders have a similar problem in Davos as they try to think through the turmoil in world markets to focus on what is really happening to the global economy."

Henry Kissinger picked up on the political implications. The challenge to the world, he said, was handling the structural changes taking place - the transfer of economic power from America to the Pacific, the shortages of water and energy and the threat of climate change, which require global not national solutions."

A strengthened United Nations, also discussed at Davos, was promoted by Prime Minister Gordon Brown earlier this week after secret talks with world leaders. Brown called for a "new world order" and a "global society." As the New Zealand Herald reported, "British Prime Minister Gordon Brown has begun secret talks with other world leaders on far-reaching reform of the United Nations Security Council as part of a drive to create a "new world order" and "global society." (The Security Council will no longer be made up of 5 nations but 10 unions of the world body.)

The economic crises that the world is plunging into is being and will be used as the pretext to forge the new global order long sought after by the global elite. More centralized control will emerge. "New" solutions will be presented in slick packages to a despairing population begging for order.
 

7-Year Plan Aligns U.S. with Europe's Economy

Rules, regs to be integrated without congressional review

 

Posted: January 16, 2008    1:00 a.m. Eastern     By Jerome R. Corsi    © 2008 WorldNetDaily.com

Six U.S. senators and 49 House members are advisers for a group working toward a Transatlantic Common Market between the U.S. and the European Union by 2015.

The Transatlantic Policy Network – a non-governmental organization headquartered in Washington and Brussels – is advised by the bi-partisan congressional TPN policy group, chaired by Sen. Robert Bennett, R-Utah.

The plan – currently being implemented by the Bush administration with the formation of the Transatlantic Economic Council in April 2007 – appears to be following a plan written in 1939 by a world-government advocate who sought to create a Transatlantic Union as an international governing body.

An economist from the World Bank has argued in print that the formation of the Transatlantic Common Market is designed to follow the blueprint of Jean Monnet, a key intellectual architect of the European Union, recognizing that economic integration must inevitably lead to political integration.

(As WND previously reported, a key step in advancing this goal was the creation of the Transatlantic Economic Council by the U.S. and the EU through an agreement signed by President Bush, German Chancellor Angela Merkel – the current president of the European Council – and European Commission President Jose Manuel Barroso at a White House summit meeting last April.

Writing in the Fall 2007 issue of the Streit Council journal "Freedom and Union," Rep. Jim Costa, D-Calif., a member of the TPN advisory group, affirmed the target date of 2015 for the creation of a Transatlantic Common Market. (They plan to achieve this after ratification in 7 years. What they thought was a recession will be a depression and force this more quickly.  The second stage of the beast in the second half of the tribulation (Rev.13) will likely be upon us in 2012.  I believe the union of nations will be complete by then but the kinks will have to be worked out.  The pesky Christians opposing their OWO will have to be removed.)

Costa said the Transatlantic Economic Council is tasked with creating the Transatlantic Common Market regulatory infrastructure. The infrastructure would not require congressional approval, like a new free-trade agreement would.

Writing in the same issue of the Streit Council publication, Bennett also confirmed that what has become known as the "Merkel initiative" would allow the Transatlantic Economic Council to integrate and harmonize administrative rules and regulations between the U.S. and the EU "in a very quiet way," without introducing a new free trade agreement to Congress.

No document on the TEC website suggests that any of the regulatory changes resulting from the process of integrating with the EU will be posted in the Federal Register or submitted to Congress as new free-trade agreements or as modifications to existing trade agreements. (They are illegally bypassing constitutional government.)

In addition to Bennett, the advisers to the Transatlantic Policy Network includes the following senators: Thad Cochran, R-Mich.; Chuck Hagel, R-Neb.; Barbara Mikulski, D-Md.; Pat Roberts, R-Kan.; and Gordon Smith, R-Ore.

Among the 49 U.S. congressmen on the TPN's Congressional Group are John Boehner, R-Ohio; John Dingell, D-Mich.; Kenny Marchant, R-Texas; and F. James Sensenbrenner, R-Wisc.

WND contacted Bennett's office for comment but received no return call by the publication deadline.

A progress report on the TEC website indicates the following U.S. government agencies are already at work integrating and harmonizing administrative rules and regulations with their EU counterparts: The Office of Management and Budget, the Food and Drug Administration, the Environmental Protection Agency, the Occupational Safety and Health Administration and the Securities and Exchange Commission. (The NAU and the EU working hard to bring the Beast Order)

A step toward world government

The Streit Council is named after Clarence K. Streit, whose 1939 book "Union Now" called for the creation of a Transatlantic Union as a step toward world government. The new federation, with an international constitution, was to include the 15 democracies of U.S., UK, France, Australia, Belgium, Canada, Denmark, Finland, the Netherlands, Ireland, New Zealand, Norway, Sweden, Switzerland and South Africa.

Ira Straus, the founder and U.S. coordinator of the Committee on Eastern Europe and Russia in NATO, a group dedicated to including Russia within NATO, credits Bennett as TPN chairperson with reviving Streit's work "seven decades later."

A globalist with leftist political leanings, Straus was a Fulbright professor of political science at Moscow State University and the Moscow State Institute of International Relations from 2001 to 2002.

The congruity of ideas between Bennett and Streit is clear when Bennett writes passages that echo precisely goals Streit stated in 1939.

One example is Bennett's claim in his Streit Council article that creating a Transatlantic Common Market would combine markets that comprise 60 percent of world Gross Domestic Product under a common regulatory standard that would become "the de facto world standard, regardless of what any other parties say."

Similarly, Streit wrote in "Union Now" that the economic power of the 15 democracies he sought to combine in a Transatlantic Union would be overwhelming in their economic power and a clear challenge to the authoritarian states then represented by Nazi Germany and the communist Soviet Union. (Hopes of joint economic power are forcing the One World Order.)

Also writing in the Fall 2007 issue of the Streit Council journal "Freedom and Union," World Bank economist Domenec Ruiz Devesa openly acknowledged that "transatlantic economic integration, though important in itself, is not the end."

"As understood by Jean Monnet," he continued, "economic integration must and will lead to political integration, since an integrated market requires common institutions producing common rules to govern it."  (One World Government will be the only logical end.)

Transatlantic Common Market by 2015

Last February, the Transatlantic Policy Network formed a Transatlantic Market Implementation Group to put in place "a roadmap and framework" to direct the activity of the Transatlantic Economic Council to achieve the creation of the Transatlantic Common Market by 2015.  (Giving the date furthest away is a way to put off the opposition. 2012 is more likely.)

The Transatlantic Economic Council is an official international governmental body established by executive fiat in the U.S. and the EU without congressional approval or oversight. No new law or treaty was sought by the Bush administration to approve or implement the plan to create a Transatlantic Common Market.  (So much for democracy.)

The U.S. congressmen and senators are involved only indirectly, as advisers to the influential non-governmental organization.

In a February 2007 document entitled "Completing the Transatlantic Market," the TPN's Transatlantic Market Implementation Group writes, "The aim of this roadmap and framework would be to remove barriers to trade and investment across the Atlantic and to reduce regulatory compliance costs."  (Greed and fear drive this.)

The document further acknowledged the impact the Transatlantic Common Market agenda would have on U.S. and European legislators: "The roadmap and framework will necessarily oblige legislative and regulatory authorities in both Europe and the United States to take into consideration from the outset the impact their acts may have on transatlantic economic relations and to ensure that their respective governmental bodies involved have the necessary budgetary and organizational resources to work closely with each other."

Clinton administration roots

The work to create a Transatlantic Common Market can be traced back to the Clinton administration's decision to join in the 1995 New Transatlantic Agenda with the European Commission.

Today, the website of the Transatlantic Economic Council openly proclaims the TEC is "a political body to oversee and accelerate government-to-government integration between the European Union and the United States of America."  (This will look so good that all the other unions will not want to be left out of the One World Beast System.)

The first meeting of the TEC was held Nov. 9 in Washington, D.C., and the next meeting is scheduled for June.

A joint statement issued at the Nov. 9 meeting specified progress was being made "in removing barriers to trade and investment and in easing regulatory burdens" in a wide range of policy areas, including drugs and disease control, the importation into the EU of U.S. poultry treated with pathogen reduction treatments, federal communication commissions allowing suppliers to create declarations of conformity for products, uniform standards for electrical products and agreements on standards for pure biofuels.