Monday, October 22, 2007

DOW 300 POINTS COLLAPSE: PAULSON'S US$100 BILLION BANK CONSORTIUM RESCUE EFFORTS TO SAVE BANKS REVEALS TOTAL BANKRUPTCY OF FINANCIAL POLICIES

Recap of Past Events

The recent temporary rally of the Dow (as forecasted by me - continued ups and downs,but overall trend down as stated in previous Red Alerts) to an all time high (exceedingJuly 14,000 points) last week, had many people confused, especially the greedy ones andthose in state of denial.Some people went plunging into the stock market, to catch the rally and got burnt again.These people never learn and they deserve the trashing and I have no, absolutely no pityfor such fools. It is like playing a poker game with the cards stacked against thestooge. The game at the global casinos was rigged from the word go.If these people had examined critically, even for five minutes, the current state ofaffairs, it would have been apparent to them, that Bernanke's sell out to Wall Streetwas a stop gap measure to calm the markets and create a state of illusion. But it didnot work for the simple reason that one cannot simply revive, on a permanent basis, ahopelessly terminally ill patient, when all its organs are failing rapidly, save theventilator maintaining the last few breaths.The final clue that the global banking collapse is speeding down the one way streetwithout any driver in control was the announcement by Paulson, the Treasury Secretaryand the three big banks, JP Morgan Chase, CITI Group and Bank of America to set up aUS$100 billion fund to mop up the toilet paper commercial paper market (i.e. to buy thestructured vehicles' toilet paper assets).The global security fraud is now beyond redemption - what this means is that "investors"are not buying these commercial papers supposedly backed by securities, as their valuesare dubious. To avoid pubic auction of these toilet paper assets and then finding nobuyers (i.e. finally being exposed that they are totally worthless), Paulson and thesebig banks are trying to buy these papers to avoid such a public exposure and in the hopethat when things have "settled and there is no more panic" to unload them again to someother idiots. After all a fool is born every other day!But their very act of setting the fund, have shown their scheme for what it is. Thewhole world is shouting. "The Emperor has no clothes!" I was shouting and shouting. Fewheard my screams and saved their life savings.This is the critical implication. Hence, the dramatic collapse of the Dow.The End is NearThe rate cut of a hefty 50 basis points on 18th September 2007 by the Fed was adiversionary tactic and to buy time for the Banks to come up with another fraudulentscheme to hoodwink the self deluding public that all was well. It worked for barelythree weeks and then lost all steam!The dollar has plunged again - a massive 300 points. Gold has soared. Crude is headingfor the US100 target by year end. Foreign funds (especially Sovereign Funds) areditching US dollar assets. Long term bond yields are rising in tandem.Literally, blood will flow in the streets in major cities of USA and UK in the not toodistant future, when the full impact of the collapse hits every aspect of the economyand Joe six packs finally realises that Bush, Cheney, the neo-cons and the bastardscontrolling the City of London have taken them for a ride and robbed them of theirpensions and future.The policy of control chaos will be implemented and we will witness in major cities ofthe USA, UK and Europe of street battles, orchestrated by the Intelligence Services,between the white folks and the immigrant population. In the USA, it will be against theLatinos and then the blacks (after they realised that the Jewish community has abandonedthem). In the UK and in Europe, it will be against mainly immigrants from Turkey, theNorthern Mediterranean states and Pakistan and they are essentially Muslims. There istherefore, the added fuel of Islamic radicalism, which in the first place, was thecreation of the Western intelligence services.These immigrants (cannon folders for the continuing war on terrorism) will be blamed forthe woes that afflict the white population. The big banks and the 1% rich have alldisappeared with their mistresses and bunnies in some island resort and have engagedmercenaries like Blackwater to guard whatever real estate that need to be protected fromthe marauding crowds. The Katrina rehearsals have prepared such private armies to dotheir dirty work. They have their work cut out for them.It will be ugly.In the Middle East, the Western intelligence Services will ensure Muslims will slaughterfellow Muslims, as otherwise, only the West will be suffering from the consequences ofthe financial tsunami.The Inevitable WarThe G7 countries will give their consent and support Cheney's mad adventure in theMiddle East as their only solution to the mess which they have created.I see no other scenario. How I wish I am wrong. But I doubt it. Events following everyprevious Red ALERTS have come to pass.I am no soothsayer. But applying common sense, we must be realists and prepare ourpeople and our family for the coming wars and prepare to take part in the GlobalResistance, in whatever way and means at our disposal.Take care and God bless you all.MATTHIAS CHANGKUALA LUMPUR20TH OCTOBER 2007Matthias Chang, a Barrister, was Political Adviser to Tun Dr. Mahathir bin Mohamad,former Prime Minister of Malaysia, who succesfully defended the Malaysian currency inthe late 1990s against attacks by City of London-controlled central banks.