This Global financial market meltdown isn't over, it is just beginning. We will go through 3 stages with this monster and all 3 stages will revervebrate through the entire system. Each stage impacts the next and each market gets hit from the meltdown impacting the next stage.

stage one: stocks

stage two: bonds

stage three: global reserve

This is not an absolute must for every market we face, but it is how things are playing out in the current market. We decided to bail out the banks and the economy by selling an enormous amount of bonds. We are still selling bonds on an unprecedented scale and it remains to be seen what effect they will have when we get hit by the wave of redemption that we are creating. So at this point we are departing stage one with a possible double dip and indeed a very possible triple dip in stocks. We have already precipitated a crisis in bonds so we are in stage two and Buffet is already talking about the repercussions to the stock market from the 2nd stage.

So you are able to see the repercussion from stage two back onto the stock market. Okay, what you don't see is that the central banks are also talking about this enormous surge in bond sales; so it is impacting the global reserve just as strongly... maybe stronger. Europe has already minted test coins for a new reserve; so it is that intention-to-switch that we see surfacing. Any fiatt money market is dependent upon balance to function; when it goes out of balance, it fails to function and that function is the whole value of fiatt money; fiatt money doesn't have any intrinsic value, so once the function is lost, the currency fails, society has no need for paper money that isn't functioning; when a world reserve currency fails to measure world trade, it loses all value.

Stage 3 to this global financial meltdown will be the attempt to change the world reserve currency. Stage 1 brought on massive bank failure. Stage 2 could cause the collapse of the USA. Stage 3 could cause the collapse of the free market. The repercussions from the free market collapse could easily be worse than world war. Industry worldwide could be stifled, farming could be cut off from the population centers, real estate law and civil law enforcement could become impossible to maintain, natural disaster relief would fall to the wayside, healthcare would fail also, just about every part of our free society depends upon the free market.

We keep reading about "underlying weakness" to the economy. But, that does not say enough about the big invisible picture. There are actual numbers to that invisible world. Finding those numbers is not so easy. Can anyone discover for me an historical perspective of how many bonds will be redeemed in the upcoming years? The answer is somewhere to be found at the US Treasury. There is a picture hidden in those records of bond sales and the picture is still coming into focus because we are still selling bonds like the wind. Remember, GW Bush administration set all the records for bond sales... in five years we have doubled our outstanding bonds. Outstanding bonds return to be redeemed. You have to sell even more bonds than what you are redeeming in order to redeem the bonds and support the budget. today, we are selling bonds at four times the volume than during the GWBush administration. Initially, this will pay for the redemption of GWBush admin bonds and provide a stimulus for the economy. But soon and very soon we will be hit with a wave of redemption four times larger than the record wave of redemption from the Bush years that I thought would create a budget crisis.... now, we are facing a Treasury redemption tsunami. And that is just stage 2.

I sure hope we can get to Phase 3 soon so we can dispense with the non-functional free market and replace it with a rational command economy. Consider that there are few if any corporations that operate as anything but a command economy. All we have to do is look at the successful ones and model the overall economy on what is learned in that way. Oh! You thin you know of a functioning free market corporation? Hint: it is not free market just because they let their mailroom personnel wear roller skates!

I often think that man's most egregious error the work ethic, it deceives him into the thought pattern that he can work his way through anything which is often completely untrue.

jo

God gave man up to the devil, he's our rightful master, all the principalities and powers on the planet are ruled by his angels. Where ever human government is visible or invisible, Satan is large and in charge. God does not hold sway over anything; the devil took Jesus up to the pinnacle of God's temple and somehow showed him all the kingdoms of the world and what did he claim? The devil runs the whole show. So all of man's efforts are futile because the destroyer is in our midst and makes a mockery of our finest efforts.... and then there is our average efforts.... and then there is the bulk of our efforts.

I'm not sure that the fiatt paper has to fail by construction. I really think Paul Warburg was a genius and the system he built was very smart. But the money is so abused by our governments and banks alike. Even with that, it has held up. The final nail in the coffin is this absurd desire by the Pope to change the world reserve to a European based coin. The Federal Reserve was built by the European powers, it now finds itself being attacked by it's parent corps. The Federal Reserve is far and away the largest power on earth; but if the whole of Eurasia unites against it, it will be outgunned. I think that region of the world wants a regional coin for their trading reserve... consequently, America will lose all her bases over there. We will return to the America of old; a western hemisphere power.

When they shake things up, that's when the masses get hurt.