Free Energy Suppression

Free Energy Suppression

 

“We would have universal abundance.”

- Adam Trombly, New Energy Inventor

“Ere many generations pass, our machinery will be driven by power obtainable at any point in the universe. It is a mere question of time when men will succeed in attaching their machinery to the very wheelwork of nature.”

- Nikola Tesla, Inventor Alternating Current Motor

“If these new energy technologies were to be set free world-wide, the change would be profound; it would effect everybody: it would be applicable everywhere. These technologies are absolutely the most important thing that has happened in the history of the world.”

 -Brian O’Leary, Physics Professor, NASA Astronaut

“This information coming out would completely change geo-political power more than anything in human history.”

-Steven Greer, Disclosure and Orion Projects

Free, clean energy devices have existed for quite a long time, but they have been suppressed by people like The Rockefellers and The Morgans because the elite wouldn’t be able to charge us every-time we went to turn on the lights in our homes. Once again it’s all just about controlling us and keeping us from realizing our true potential. Much of the worst suffering on our planet today is the result of a lack of access to energy. These technologies are of the upmost importance to humanity and our long term prosperity and survival as a species.

What is “FREE ENERGY”?

In an era of oil wars, gas price manipulation, fossil fuel pollution and economic collapse, it’s hard to imagine many more provocative terms than “Free Energy.” So what does “free energy” mean?

First, like “free air,” it’s available anywhere, for anyone. Energy is endlessly available without burning or exploding anything. Second, though devices would necessarily cost something to make and to buy, they would make energy access so inexpensive as to dramatically raise the quality of life for everyone.

This area of innovation also uses the terms: breakthrough, advanced, over-unity, innovative, novel, unconventional, revolutionary, outside the box, second-generation, zero-point, vacuum, cold fusion, novel hydrogen, etc. Professionally the field is now most often referred to as the “New Energy” movement: http://www.newenergymovement.org/

But isn’t a perpetual motion machine impossible? Of course no machine runs forever, because it is made of matter and all matter wears down. The key is that it is the source of power that is virtually endless. But isn’t it true that nothing can violate the 2nd law of thermodynamics which says that in a closed system the organization of energy naturally runs down, so you can’t get more energy out of a system than it takes to run it.

2nd Law of Thermodynamics

“Over time, differences in temperature, pressure, and chemical potential equilibrate [all balance out] in an isolated physical system. From the state of thermodynamic equilibrium, the law deduced the principle of the increase of entropy…

The second law declares the impossibility of machines that generate usable energy from the abundant internal energy of nature by processes called perpetual motion of the second kind.” – Wikipedia

 

The second key is that a torus is not a closed or isolated system. It is open to the rest of the universe, as are galaxies, solar systems and the atoms that provide the electricity in our very own bodies.

The Torus

None of these are plugged into a wall socket. They all run off the infinite torque of the universe that is turning every system in existence. So what if there were devices that could tap that? Most so-called “New Energy” devices, in my experience, either tap the innate energy of (toroidal) magnetic fields or they access the virtually unrecognized “longitudinal wave” at the center of an electro-magnetic vortex rather than the more commonly known “transverse” wave that is coiling around it.

Others mimic cosmic vortices with copper coils that create toroidal fields. Rotating these fields at certain octave frequencies seems to tap into the ambient energy of the space around the coils. Harmonic resonance rather than combustion unlocks the power.

As far as I can tell, the entire universe is an alive sea of energy, and accessing power becomes possible when we can successfully adapt our relationship to waves of pressure. Gas explosions in piston chambers create a burst of force to turn a motor. Burning coal or even nuclear fission just serves to heat water and the pressure of the steam can crank an engine.

A difference in charge on plates in a battery can create a wave of movement in some chemicals that can then power various implements.

The pressure of wind, waves or geothermal heat turns a turbine. Traditional physics recognizes and measures “radiation” – the energy dissipating from a system, and those waves run our cars, heat our homes, fuel our weapons. But physics has ignored half of the universe!

Though it is common to read in textbooks that “for every action, there is an equal and opposite reaction,” our textbooks tell us the universe is expanding and winding down. Might it make more sense that that motion is balanced by contraction and winding up? When you breathe out, don’t your lungs go in? Walter Russell called this side of the universal dynamic “genero-active” as opposed to “radio-active.” This is what creates order, gives life, forms a seed, a fetus or a black hole, and all the other progeny of the Universe. Traditional physics avoids dealing with this because it gets into “the life force” which is traditionally contained in the box of “biology.”

It smacks of “consciousness,” which is hard to measure or prove and therefore better left to the “soft” sciences. At best they call the “in-wave” gravity, and give it some of the usual particle treatment by inventing “gravitons” which mediate the strange, unaccountable “gathering in.”

But let’s back way up and take a different cut…If we look through the lens of the torus as the fundamental and universal pattern of energy flow, the in and out waves could just be the enfolding and unfolding aspects, the inhale and exhale that maintain the toroidal wholeness. And one further vital, mind-stretching concept…Imagine that at the same time as waves spiral infinitely out from a point “singularity” its complementary wave spirals infinitely in – like the dark spirals between the light bands of a galaxy. Imagine if a device could access the boundless power of that inward pressure wave.

Then it would be available anywhere in the universe and suddenly fuel-less propulsion becomes a possibility. Such a “drive” would be creating its own gravitational field, so theoretically it could do maneuvers independent of the Earth’s field and by aiming its pressure differential it could be pulled through space time like a helium balloon rising in the air…only much, much faster.

As it turns out, I interviewed several different people with very authentic sounding reports of having been on extra-terrestrial spacecraft. They each talked independently of just such a toroidal drive centering the ship, and they did not know each other.

Numerous videos from around the world also seem to show toroidal energy fields surrounding the vehicles. Free energy inventor Adam Trombly says that one of the main reasons why the UFO phenomenon is suppressed is because people would clamor to know what drives the vehicles and that would force disclosure of “free energy.”

Here are some collections of stories of suppression of the types of devices that could restore our atmosphere and our economy.


History of Free Energy Suppression:
http://www.padrak.com/vesperman/

Suppressed Energy:
http://suppressedenergy.com/mainsite/johnhutchison.html

Tom Bearden describes suppression of free energy: 
http://www.cheniere.org/correspondence/021109.htm

Gene Mallove, the Harvard and MIT trained scientist who edited Infinite Energy Magazine, was about to appear with David Wilcock on Coast to Coast, the nation’s largest radio show, to announce a breakthrough in free energy. The day before, he was mysteriously bludgeoned to death: http://www.wanttoknow.info/eugenemallove

Before this happened he had written an open letter to the world about the importance of the coming energy revolution: Eugene Mallove’s Open Letter to the World: http://www.pureenergysystems.com/obituaries/2004/EugeneMallove/LastMessage040513/

One Congresswoman had the courage to step up in favor of New Energy: Action to Declassify Secret Energy Patents – Congresswoman Shelley Berkley: http://www.spiritofmaat.com/archive/feb2/vesprman.htm

And here are links to websites on Bruce DePalma, inventor of a 100-kilowatt generator (the N-Machine), which he claimed generated 5 times more power than it consumed: http://www.brucedepalma.com/http://depalma.pair.com/

Here are some summaries of the history, categories and context of New Energy inventions by inventor Peter Lindemann and Patrick Kelly:

1.) http://www.free-energy.ws/lindemann-1.html

2.) http://www.free-energy-info.co.uk/

And here is a site covering all sorts of developments in the alternative energy field curated by Sterling Allan and the New Energy Congress:

http://peswiki.com/index.php/Main_Page and their regularly updated “Top 5 Exotic Free Energy Technologies” list:
http://Top5Energy.com/

Almost always, the US government’s response to any hint of success from New Energy inventors has been to raid their labs with an armed FBI or SWAT team, to confiscate (steal) the equipment.

Suppression

“In a time of Universal Deceit, telling the truth becomes a revolutionary act”.

– George Orwell

Meanwhile these inventors are being relentlessly and often brutally suppressed by the financial elite, by national governments, and by delusion and dishonesty amongst some of the inventors.

The suppression goes back at least as far as the early 20th Century when Nikola Tesla, tapped into what he called “radiant energy.” It sparked white instead of gold. It ran cold instead of hot in wires. He was going to offer it to the world wirelessly, so all you needed was an antenna in your yard to access it – as easy as a radio or TV today. But his financier, J.P. Morgan, did not want to risk the fortune he was making off of controlling the copper mines that provided the wires for conducting the electricity, so he shut Tesla down.

The same banker, J.P. Morgan, who prohibited Nikola Tesla from making abundant energy available wirelessly, also suppressed key scientific truths about how energy works. In the early 20th century he used his financial influence in education to delete from textbooks the knowledge that can lead to creating such devices. “J.P. Morgan got Lorentz to cripple the Heaviside equations so that the new EE (electrical engineering) concepts being taught in the universities would not ever contain free energy and over unity systems.

This deliberate mutilation and crippling of electrical engineering is the real and single cause of our dependence on oil and of much of the pollution of our biosphere…The “High Cabal” – Churchill’s name for the secret consortium of elite families and organization we loosely refer to as the “control groups.” – has been ruthlessly suppressing free energy inventors for a century, including by direct assassination.

“Having personally survived several such assassination attempts, I have experienced what I’m speaking of.”

– Tom Bearden, Inventor, Author, Energy from the Vacuum

This may all seem very strange. It did to me at first. But then the notion of a round Earth, going around the sun, and even heavier-than-air flying machines, seemed impossible not too long ago. The notion of clean, inexpensive energy for everyone, however, is a threat to those who want to soak every last dollar out of fossil fuels and especially those who would use control of energy to dictate people’s lives.

Imagine pristine skies and no asthma. Think of drinkable water in our streams and rivers. You go on the Internet and innovative inventors are being rewarded, awarded and celebrated…instead of gagged, threatened or assassinated.

Let yourself enjoy the notion of no wars of aggression fighting over resources. Envision flying among the stars and through time and space in fuel-less vehicles.

I believe the time has come for nothing less… “Everything is connected to everything else in my opinion – hardcore physics, outer fringe physics, cosmology, you name it, biology, electro-chemistry, it’s all part of the one universe. All fossil fuels, all nuclear fuels – get them out of the way and employ technologies that work in the natural sense, with the space time continuum and with nature … mankind really needs to get its act together instead of focusing on greed and war and oil and focus on a more promising future in medicine, health, energy, environment, and really get a roll on, similar to the NASA project when everyone was excited about going to the moon, so that mankind has something better to do than pick on its neighbors, fighting over race, color and things like that …

“The technology itself has to come out into the world.”- John Hutchison, New Energy and Anti-gravity Inventor.

To date the public has not been sufficiently informed to demand the liberation of these ideas and devices. But all of that is changing rapidly now.

Thrive- Full Movie -

The Suppression of Nikola Tesla -

Source: Foster Gamble via The Mind Unleashed @ http://themindunleashed.org/2013/04/free-energy-suppression.html




For more information about free energy see http://nexusilluminati.blogspot.com/search/label/free%20energy  
- See ‘Older Posts’ at the end of each section

Hope you like this not for profit site -

It takes hours of work every day to maintain, write, edit, research, illustrate and publish this website from a tiny cabin in a remote forest

Like what we do? Please give enough for a meal or drink if you can -  

Donate any amount and receive at least one New Illuminati eBook!

Please click below –

Videos - https://www.youtube.com/watch?feature=player_embedded&v=lEV5AFFcZ-s

https://www.youtube.com/watch?feature=player_embedded&v=DED_BOSSu3A

For further enlightening information enter a word or phrase into the random synchronistic search box @ http://nexusilluminati.blogspot.com

And see

 New Illuminati – http://nexusilluminati.blogspot.com

 New Illuminati on Facebook - https://www.facebook.com/the.new.illuminati

New Illuminati Youtube Channel - http://www.youtube.com/user/newilluminati/feed

New Illuminati on Google+ @ https://plus.google.com/115562482213600937809/posts

New Illuminati on Twitter @ www.twitter.com/new_illuminati

New Illuminati on Google Follow - http://www.google.com/friendconnect/settings/edit?smpl=true&st=e%3DAOG8GaCFDeBRZ1yDY2DjCaq61tFDiwO07s%252Fwv3x8%252B%252FJgZJTLx5igbMomJIu3796Ja6n05WaS8qnJ0DLyeGk1q49tLD8m%252FhV1K%252Bq%252BQIOGOwLeWznnm5IGhzjfWzVnq5I4UJr3fw8yk%252B8W2OqwlCbL7BNsW32uouSc79Br%252BkOZQ1Fpzg6J3KMIZkzmg0%252FcPHsWUPqZv845VKS31S%252FbCm8NpINhlK1kDxUdRmcCkT37dIc4RB6PNurjCcd2%252BVkNBveCm4kAgeb8A3Q5hNj6%252FHplvQxKFI%252BW1TYBJVYqHHTKsnBPGcL6wlZdxTUwtfxWU2ZvANJQ%252F%252FUrolBwP7ovb92SZqSWMFJRnN2rsQ%253D%253D%26c%3Dpeoplesense

New Illuminations –Paintings in Light by R. Ayana @ http://newilluminations.blogspot.com

The Her(m)etic Hermit - http://hermetic.blog.com

The Prince of Centraxis - http://centraxis.blogspot.com (Be Aware! This link leads to implicate & xplicit concepts & images!)

DISGRUNTLED SITE ADMINS PLEASE NOTE –

We provide a live link to your original material on your site (and links via social networking services) - which raises your ranking on search engines and helps spread your info further! This site is published under Creative Commons Fair Use Copyright (unless an individual article or other item is declared otherwise by the copyright holder) – reproduction for non-profit use is permitted & encouraged, if you give attribution to the work & author - and please include a (preferably active) link to the original (along with this or a similar notice).

Feel free to make non-commercial hard (printed) or software copies or mirror sites - you never know how long something will stay glued to the web – but remember attribution! If you like what you see, please send a donation (no amount is too small or too large) or leave a comment – and thanks for reading this far…

Live long and prosper! Together we can create the best of all possible worlds…

From the New Illuminati – http://nexusilluminati.blogspot.com

Fall of the American Empire

Fall of the American Empire

America is self-destructing & bringing the rest of the world down with it

by Tanya Cariina Hsu

"I believe that banking institutions are more dangerous to our liberties than standing armies. "

-Thomas Jefferson, US President; 1743 - 1826

Americais dying. It is self-destructing and bringing the rest of the world down with it. Often referred to as a sub-prime mortgage collapse, this obfuscates the real reason. By associating tangible useless failed mortgages, at least something 'real' can be blamed for the carnage. The problem is, this is myth. The magnitude of this fiscal collapse happened because it was all based on hot air.

The banking industry renamed insurance betting guarantees as 'credit default swaps' and risky gambling wagers were called 'derivatives'. Financial managers and banking executives were selling the ultimate con to the entire world, akin to the snake-oil salesmen from the 18th century but this time in suits and ties. And by October 2008 it was a quadrillion-dollar (that's $1,000 trillion) industry that few could understand.

Propped up by false hope, America is now falling like a house of cards.

It all began in the early part of the 20th century. In 1907 J.P. Morgan, a private New York banker, published a rumour that a competing unnamed large bank was about to fail. It was a false charge but customers nonetheless raced to their banks to withdraw their money, in case it was their bank. As they pulled out their funds the banks lost their cash deposits and were forced to call in their loans. People now therefore had to pay back their mortgages to fill the banks with income, going bankrupt in the process. The 1907 panic resulted in a crash that prompted the creation of the Federal Reserve, a private banking cartel with the veneer of an independent government organisation. Effectively, it was a coup by elite bankers in order to control the industry.

When signed into law in 1913, the Federal Reserve would loan and supply the nation's money, but with interest. The more money it was able to print, the more 'income' for itself it generated. By its very nature the Federal Reserve would forever keep producing debt to stay alive. It was able to print America's monetary supply at will, regulating its value. To control valuation however, inflation had to be kept in check.

The Federal Reserve then doubled America's money supply within five years, and in 1920 it called in a mass percentage of loans. Over five thousand banks collapsed overnight. One year later the Federal Reserve again increased the money supply by 62%, but in 1929 it again called the loans back in, en masse. This time, the crash of 1929 caused over sixteen thousand banks to fail and an 89% plunge on the stock market. The private and well-protected banks within the Federal Reserve system were able to snap up the failed banks at pennies on the dollar.

The nation fell into the Great Depression and in April 1933 President Roosevelt issued an executive order that confiscated all gold bullion from the public. Those who refused to turn in their gold would be imprisoned for ten years, and by the end of the year the gold standard was abolished. What had been redeemable for gold became paper 'legal tender', and gold could no longer be exchanged for cash as it had once been.

Later, in 1971, President Nixon removed the dollar from the gold standard altogether, therefore no longer trading at the internationally fixed price of $35. The US dollar was now worth whatever the US decided it was worth because it was 'as good as gold'. It had no standard of measure, and became the universal currency. Treasury bills (short-term notes) and bonds (long-term notes) replaced gold as value, promissory notes of the US government and paid for by the taxpayer. Additionally, because gold was exempt from currency reporting requirements it could not be traced, unlike the fiduciary (i.e. that based upon trust) monetary systems of the West. That was not in America's best interest.

After the Great Depression private banks remained afraid to make home loans, so Roosevelt created Fannie Mae. A state supported mortgage bank, it provided federal funding to finance home mortgages for affordable housing. In 1968 President Johnson privatised Fannie Mae, and in 1970, Freddie Mac was created to compete with Fannie Mae. Both of them bought mortgages from banks and other lenders, and sold them onto new investors.

The post World War II boom had created an America flush with cash and assets. As a military industrial complex, war exponentially profited the US and, unlike any empire in history, it shot to superpower status. But it failed to remember that, historically, whenever empires rose they fell in direct proportion.

Americans could afford all the modern conveniences, exporting its manufactured goods all over the world. After the Vietnam War, the US went into an economic decline. But people were loath to give up their elevated standard of living despite the loss of jobs, and production was increasingly sent overseas. A sense of delusion and entitlement kept Americans on the treadmill of consumer consumption.

 

In 1987 the US stock market plunged by 22% in one day because of high-risk futures trading, called derivatives, and in 1989 the Savings & Loan crisis resulted in President George H.W. Bush using $142 billion in taxpayer funds to rescue half of the S&L's. To do so, Freddie Mac was given the task of giving sub-prime (below prime-rate) mortgages to low-income families. In 2000, the "irrational exuberance" of the dot-com bubble burst, and 50% of high-tech firms went bankrupt wiping $5 trillion from their over-inflated market values.

After this crisis, Federal Reserve Chairman Alan Greenspan kept interest rates so low they were less than the rate of inflation. Anyone saving his or her income actually lost money, and the savings rate soon fell into negative territory.

During the 1990s, advertisers went into overdrive, marketing an ever more luxurious lifestyle, all made available with cheap easy credit. Second mortgages became commonplace, and home equity loans were used to pay credit card bills. The more Americans bought, the more they fell into debt. But as long as they had a house their false sense of security remained: their home was their equity, it would always go up in value, and they could always remortgage at lower rates if needed. The financial industry also believed that housing prices would forever climb, but should they ever fall the central bank would cut interest rates so that prices would jump back up. It was, everyone believed, a win-win situation.

Greenspan's rock-bottom interest rates let anyone afford a home. Minimum wage service workers with aspirations to buy a half million-dollar house were able to secure 100% loans, the mortgage lenders fully aware that they would not be able to keep up the payments.

So many people received these sub-prime loans that the investment houses and lenders came up with a new scheme: bundle these virtually worthless home loans and sell them as solid US investments to unsuspecting countries who would not know the difference. American lives of excess and consumer spending never suffered, and were being propped up by foreign nations none the wiser.

It has always been the case that a bank would lend out more than it actually had, because interest payments generated its income. The more the bank loaned, the more interest it collected even with no money in the vault. It was a lucrative industry of giving away money it never had in the first place. Mortgage banks and investment houses even borrowed money on international money markets to fund these 100% plus sub-prime mortgages, and began lending more than ten times their underlying assets.

After 9/11, George Bush told the nation to spend, and during a time of war, that's what the nation did. It borrowed at unprecedented levels so as to not only pay for its war on terror in the Middle East (calculated to cost $4 trillion) but also pay for tax cuts at the very time it should have increased taxes. Bush removed the reserve requirements in Fannie Mae and Freddie Mac, from 10% to 2.5%. They were free to not only lend even more at bargain basement interest rates, they only needed a fraction of reserves. Soon banks lent thirty times asset value. It was, as one economist put it, an 'orgy of excess'.

It was flagrant overspending during a time of war. At no time in history has a nation gone into conflict without sacrifice, cutbacks, tax increases, and economic conservation.

And there was a growing chance that, just like in 1929, investors would rush to claim their money all at once.

To guarantee, therefore, these high risk mortgages, the same financial houses that sold them then created 'insurance policies' against the sub-prime investments they were selling, marketed as Credit Default Swaps (CDS). But the government must regulate insurance policies, so by calling them CDS they remained totally unregulated. Financial institutions were 'hedging their bets' and selling premiums to protect the junk assets. In other words, the asset that should go up in value could also have a side-bet, just in case, that it might go down. By October 2008, CDS were trading at $62 trillion, more than the stock markets of the whole world combined.

These bets had absolutely no value whatsoever and were not investments. They were just financial instruments called derivatives - high stakes gambling, 'nothing from nothing' - or as Warren Buffet referred to them, 'Weapons of Financial Mass Destruction'. The derivatives trade was 'worth' more than one quadrillion dollars, or larger than the economy of the entire world. (In September 2008 the global Gross Domestic Product was $60 trillion).

Challenged as being illegal in the 1990s, Greenspan legalised the derivatives practice. Soon hedge funds became an entire industry, betting on the derivatives market and gambling as much as they wanted. It was easy because it was money they did not have in the first place. The industry had all the appearances of banks, but the hedge funds, equity funds, and derivatives brokers had no access to government loans in the event of a default. If the owners defaulted, the hedge funds had no money to pay 'from nothing'. Those who had hedged on an asset going up or down would not be able to collect on the winnings or losses.

The market had become the largest industry in the world, and all the financial giants were cashing in: Bear Stearns, Lehman Brothers, Citigroup, and AIG. But homeowners, long maxed out on their credit, were now beginning to default on their mortgages. Not only were they paying for their house but also all the debt amassed over the years for car, credit card and student loans, medical payments and home equity loans. They had borrowed to pay for groceries and skyrocketing health insurance premiums to keep up with their bigger houses and cars; they refinanced the debt they had for lower rates that soon ballooned. The average American owed 25% of their annual income to credit card debts alone.

In 2008, housing prices began to slide precipitously downwards and mortgages were suddenly losing value. Manufacturing orders were down 4.5% by September, inventories began to pile up, unemployment was soaring and average house foreclosures had increased by 121% and up to 200% in California.

The financial giants had to stop trading these mortgage-backed securities, as now their losses would have to be visibly accounted for. Investors began withdrawing their funds. Bear Stearns, heavily specialised in home loan portfolios, was the first to go in March.

Just as they had done in the 20th century, JP Morgan swooped in and picked up Bear Stearns for a pittance. One year prior Bear Stearns shares traded at $159 but JP Morgan was able to buy in and take over at $2 a share. In September, Washington Mutual collapsed, the largest bank failure in history. JP Morgan again came in and paid $1.9 billion for assets valued at $176 billion. It was a fire sale.

Relatively quietly over the summer Freddie Mac and Fannie Mae, the publicly traded companies responsible for 80% of the home mortgage loans, lost almost 90% of their value for the year. Together they were responsible for half the outstanding loan amounts but were now in debt $80 to every $1 in capital reserves.

To guarantee they would stay alive, the Federal Reserve stepped in and took over Freddie Mac and Fannie Mae. On September 7th 2008 they were put into "conservatorship": known as nationalisation to the rest of the world, but Americans have difficulty with the idea of any government run industry that required taxpayer increases.

What the government was really doing was handing out an unlimited line of credit. Done by the Federal Reserve and not US Treasury, it was able to bypass Congressional approval. The Treasury Department then auctioned off Treasury bills to raise money for the Federal Reserve's own use, but nonetheless the taxpayer would be funding the rescue. The bankers had bled tens of billions from the system by hedging and derivative gambling, and triggered the portfolio inter-bank lending freeze, which then seized up and crashed.

The takeover was presented as a government funded bailout of an arbitrary $700 billion, which does nothing to solve the problem. No economists were asked to present their views to Congress, and the loan only perpetuates the myth that the banking system is not really dead.

In reality, the damage will not be $700 billion but closer to $5 trillion, the value of Freddie Mac and Fannie Mae's mortgages. It was nothing less than a bailout of the quadrillion dollar derivatives industry which otherwise faced payouts of over a trillion dollars on CDS mortgage-backed securities they had sold. It was necessary, said Treasury Secretary Henry Paulson, to save the country from a "housing correction". But, he added, the $700 billion taxpayer funded takeover would not prevent other banks from collapsing, in turn causing a stock market crash.

In other words Paulson was blackmailing Congress in order to lead a coup by the banking elite under the false guise of necessary legislation to stop the dyke from flooding. It merely shifted wealth from one class to another, as it had done almost a century prior. No sooner were the words were out of Paulson's mouth before other financial institutions began imploding, and with them the disintegration of the global financial system - much modeled after the lauded system of American banking.

In September the Federal Reserve, its line of credit assured, then bought the world largest insurance company, AIG, for $85 billion for an 80% stake. AIG was the largest seller of CDS, but now that it was in the position of having to pay out, from collateral it did not have, it was teetering on the edge of bankruptcy.

In October the entire country of Iceland went bankrupt, having bought American worthless sub-prime mortgages as investments. European banks began exploding, all wanting to cash in concurrently on their inflated US stocks to pay off the low interest rate debts before rates climbed higher. The year before the signs had been evident, when the largest US mortgage lender Countrywide fell. 

Soon after, the largest lender in the UK, Northern Rock, went under - London long having copied Wall Street creative financing. Japan and Korea's auto manufacturing nosedived by 37%, global economies contracting. Pakistan is on the edge of collapse too, with real reserves at $3 billion - enough to only buy a month's supply of food and oil and attempting to stall payments to Saudi Arabia for the 100,000 barrels of oil per day it provides to the country. Under President Musharraf, who left office in the nick of time, Pakistan's currency lost 25% of its value, its inflation running at 25%.

Meanwhile energy costs had soared, with oil reaching a peak of almost $150 per barrel in the summer. The costs were immediately passed on to the already spent homeowner, in rising heating and fuel, transport and manufacturing costs. Yet 30% of the cost of a barrel of oil was based upon Wall Street speculators, climbing to 60% as a speculative fear factor during the summer months. As soon as the financial crisis hit, suddenly oil prices slid down, slicing oil costs to $61 from a high of $147 in June and proving that the 60% speculation factor was far more accurate. This sudden decline also revealed OPEC's lack of control over spiraling prices during the past few years, almost squarely laid on the shoulders of Saudi Arabia alone. When OPEC, in September, sought to maintain higher prices by cutting production, it was Saudi Arabia who voted against such a move at the expense of its own revenue.

Europe then decided that no more would it be ruined by the excess of America. 'Olde Europe' may have had enough of being dictated to by the US, who refused to compromise on loans lent to their own broken nations after WWII. On October the 13th, the once divided EU nations unilaterally agreed to an emergency rescue plan totaling $2.3 trillion. It was more than three times greater than the US package for a catastrophe America alone had created.

By mid October, the Dow, NASDAQ and S&P 500 had erased all the gains they made over the previous decade. Greenspan's pyramid scheme of easy money from nothing resulted in a massive overextension of credit, inflated housing prices, and incredible stock valuations, achieved because investors would never withdraw their money all at once. But now it was crashing at break-neck speed and no solution in sight. President Bush said that people ought not to worry at all because "America is the most attractive destination for investors around the globe."

 

Those who will hurt the most are the very men and women who grew the country after WWII, and saved their pensions for retirement due now. They had built the country during the war production years, making its weapons and arms for global conflict. During the Cold War the USSR was the ever-present enemy and thus the military industrial complex continued to grow. Only when there is a war does America profit.

Russiawill not tolerate a new cold war build-up of ballistic missiles. And the Middle East has seen its historical ally turn into its worst nightmare, be it militarily or economically. No longer will these nations continue to support the dollar as the world's currency. The world's economy is no longer America's to control and the US is now indebted to the rest of the world. No more will the US be able to demand its largest Middle Eastern oil supplier open up its banking books so as to be transparent and free from corruption and terrorist connections lest there be consequences - the biggest act of criminal corruption in history has just been perpetrated by the United States.

It was the best con game in town: get paid well for selling vast amounts of risk, fail, and then have governments fix the problem at the expense of the taxpayers who never saw a penny of shared wealth to begin with.

There is no easy solution to this crisis, its effects multiplying like an infectious disease.

Ironically, least affected by the crisis are Islamic banks.

They have largely been immune to the collapse because Islamic banking prohibits the acquisition of wealth via gambling (or alcohol, tobacco, pornography, or stocks in armaments companies), and forbids the buying and selling of a debt as well as usury. Additionally, Shari'ah banking laws forbid investing in any company with debts that exceed thirty percent.

"Islamic banking institutions have not failed per se as they deal in tangible assets and assume the risk" said Dr. Mohammed Ramady, Professor of Economics at King Fahd University of Petroleum & Minerals. "Although the Islamic banking sector is also part of the global economy, the impact of direct exposure to sub-prime asset investments has been low" he continued. "The liquidity slowdown has especially affected Dubai, with its heavy international borrowing. The most negative effect has been a loss of confidence in the regional stock markets." Instead, said Dr. Ramady, oil surplus Arab nations are "reconsidering overseas investments in financial assets" and speeding up their own domestic projects.

Eight years ago, in May 2000, Saudi Islamic banker His Highness Dr. Nayef bin Fawaaz ibn Sha'alan publicly gave a series of economic lectures in Gulf states. At the time his research showed that Arab investments in the US, to the tune of $1.5 trillion, were effectively being held hostage and he recommended they be pulled out and reinvested in the tangibles of the Arab and Islamic markets. "Not in stocks however because the stock market could be manipulated remotely, as we have seen in the last couple of years in the Arab market where trillions of dollars evaporated" he said.

He warned then that it was a certainty that the US economic system was on the verge of collapse because of its cumulative debts, ever-increasing deficit and the interest on that debt. "When the debts and deficits come due, they just issue new Treasury bonds to cover the old bonds due, with their interest and the new deficit too." The cycle cannot be stopped or the debt cancelled because the US would no longer be able to borrow. The consequence of relieving this cycle would be a total collapse of their economic system as opposed to the partial, albeit massive, crash of 2008.

"Islamic banking", said Dr. Al-Sha'alan, "always protects the individuals' wealth while putting a cap on selfishness and greed. It has the best of capitalism - filtering out its negatives - and the best of socialism - filtering out its negatives too." Both systems inevitably had to fail. Additionally, Europe and Japan did not need to be held accountable and indebted to America anymore for protection against the Soviets.

"The essential difference between the Islamic economic system and the capitalist system", he continued "is that in Islam wealth belongs to God - the individual being only its manager. It is a means, not a goal. In capitalism, it is the reverse: money belongs to the individual, and is a goal in and of itself. In America especially, money is worshipped like God."

In sum, the crash of the entire global economic system is a result of America's fiscal arrogance based upon one set of rules for itself and another for the rest of the world. Its increased creative financing deluded its people into a false sense of security, and now looks like the failure of capitalism altogether.

The whole exercise in democracy by force against Arab Muslim nations has almost bankrupted the US. The Cold War is over and the US has nothing to offer: no exports, no production, few natural resources, and no service sector economy.

The very markets that resisted US economic policies the most, having curbed foreign direct investments into America, are those who will fare best and come out ahead.

But not before having paid a very high price.

Tanya Cariina Hsu is a political researcher and analyst focusing on Saudi Arabian and US relations. One of the contributors to recent written testimony on the Kingdom of Saudi Arabia for the US Congressional Senate Judiciary Committee on behalf of FOCA (Friends of Charities Association) in its Hearing on Capitol Hill in Washington D.C., her analysis has been published and critically acclaimed throughout the US, Europe and the Middle East.

The first to break the barrier against public discussion of the Israeli influence upon US foreign policy decision making, in Capitol Hill's "A Clean Break" Symposium in Washington D.C. in 2004, as the Institute for Research: Middle East Policy (IRmep) Director of Development and Senior Research Analyst, Ms. Hsu remains an International Fellow with the Institute.

Born in London, she re-located to Riyadh, Saudi Arabia in 2005 and is currently completing a book on US policy towards Saudi Arabia.

Global Research Articles by Tanya Cariina Hsu

FROM - http://www.globalresearch.ca/index.php

Images - http://4.bp.blogspot.com/_YiPNNMsA5l0/SPGBuhJ-R1I/AAAAAAAAA38/WtLBDM8J5z8/s400/456398100_c151a4b1e8_b.jpg
http://homepage.mac.com/juanwilson/islandbreath/2009Year/2009-02/090213savingchrysler.jpg
http://unitedcats.files.wordpress.com/2008/03/jumbo_death.jpg 

For further enlightening information enter a word or phrase into the search box @  New Illuminati or click on any label/tag at the bottom of the page @  http://nexusilluminati.blogspot.com

And see

The Her(m)etic Hermit - http://hermetic.blog.com

 New Illuminati – http://nexusilluminati.blogspot.com

 New Illuminati on Facebook - http://www.facebook.com/pages/New-Illuminati/320674219559   

The Prince of Centraxis – http://centraxis.blogspot.com

This material is published under Creative Commons Copyright (unless an individual item is declared otherwise by copyright holder) – reproduction for non-profit use is permitted & encouraged, if you give attribution to the work & author - and please include a (preferably active) link to the original along with this notice. Feel free to make non-commercial hard (printed) or software copies or mirror sites - you never know how long something will stay glued to the web – but remember attribution! If you like what you see, please send a tiny donation or leave a comment – and thanks for reading this far…

From the New Illuminati – http://nexusilluminati.blogspot.com