Washingtonsblog\u2019s anonymous founder and principal commentator is one of the most deeply knowledgeable writers on current events, and on July 19th he headlined\u00a0“Governments Worldwide Will\u00a0Crash the First Week of October\u00a0\u2026 According to 2 Financial\u00a0Forecasters.\u201d<\/span><\/a>\u00a0He noted that both Martin Armstrong and Larry Edelson, two of the most respected stock-market predictors, are independently of each other predicting that “virtually all governments worldwide will be hit\u00a0with a gigantic economic crisis in the first week\u00a0of October 2015,\u201d due to \u201ca collapse of government solvency\u201d as ricocheting government defaults spiral each other downward; and, because the U.S. won\u2019t be forced to crash as quickly as Europe and Japan, there will then be a temporary worldwide rush into U.S. corporate stocks and bonds, especially stocks, as the short-term safe haven for investors fleeing from sovereign (government) bonds.<\/span><\/p>\n The next day, July 20th, Michael Meier\u2019s German Economic News<\/i> bannered\u00a0\u201cClear Signs of Relaxation Between Obama and Putin,\u201d<\/span><\/a>\u00a0and reported: “The nuclear deal with Iran and the\u00a0withdrawal of heavy weapons by the\u00a0rebels in the eastern Ukraine are clear\u00a0signs of a d\u00c3\u00a9tente between Russia and the\u00a0US.\u00a0The EU now needs to quickly develop\u00a0their own strategy.\u00a0Otherwise, the\u00a0Europeans will have to pay for the chaos\u00a0in Ukraine.\u201d The article continues, addressing Europeans:<\/span><\/p>\n Your countries have to pay an enormous price\u00a0for the sanctions <\/i>[against Russia, and, earlier, against Iran].\u00a0With regard to a possible\u00a0new\u00a0global economic crisis, the loss of the Russian\u00a0sales market has been devastating.\u00a0The hope to do\u00a0business quickly after the nuclear deal with Tehran<\/i>\u00a0could prove to be an illusion. Even the\u00a0lightning-trip by Economy Minister Sigmar\u00a0Gabriel to Tehran will change little.\u00a0Unlike\u00a0Russia, the EU towards Iran continued business with Iran during the sanctions, but was\u00a0stubborn to pay the extra cost of following U.S. requirements.\u00a0Meanwhile, Russia has caught up\u00a0technologically and is now sure to be able to\u00a0step up its exports to Iran and outside of the\u00a0arms industry<\/i>\u00a0[and thus will be less dependent upon imports from Europe after the anti-Russia sanctions are lifted].<\/i><\/span><\/p>\n The greatest danger, however, threatening\u00a0the EU financially is in Ukraine:\u00a0The EU\u00a0echoed US policy there <\/i>[though, unlike the U.S., the EU has lost hugely from U.S. Ukrainian policy]: [This U.S. policy was]\u00a0Ukraine should join the EU and end all connections\u00a0with Russia.\u00a0For the U.S.,\u00a0Ukraine is far\u00a0away, no real trading-partner <\/i>[though it might become one after the February 2014 change of government in Ukraine. Not so for Europe: Ukraine is now, in effect, inside Europe.].\u00a0…<\/i><\/span><\/p>\n The reckless Association Agreement\u00a0between the EU and Ukraine took the\u00a0European taxpayer immediately into the obligation:\u00a0As\u00a0in Greece, the Americans will insist that\u00a0Europeans must keep Ukraine financially\u00a0afloat.\u00a0<\/i>[Whereas the U.S. has few financial obligations there, the EU now is committed to Ukraine via its post-February-2014\u00a0Association Agreement<\/span><\/a>. And Russia has already lost what it had risked in Ukraine, and now is relatively immune to Ukraine\u2019s continuing collapse.]\u00a0The Russians can always carry out\u00a0their threat, and stop the gas deliveries through\u00a0Ukraine <\/i>[if the EU does not pay Ukraine, and Ukraine not pay Russia].\u00a0…<\/i><\/span><\/p>\n The costs of the “rescue” of Ukraine\u00a0will exceed those for Greece many times.<\/i><\/span><\/p>\n So, with Japan\u2019s having postponed its crash as long as possible, and the EU\u2019s crash being now imminent, a flood of foreign billionaires\u2019 cash into U.S. equities seems assured.<\/span><\/p>\n Now consider this\u00a012 March 2013 explanation<\/span><\/a>\u00a0from me of how the Obama Administration, with the acquiescence of both Parties in Congress, simply postposed until at least 2019 what will probably be the biggest U.S. economic crash ever, and focus especially upon this graph in that article:<\/span><\/p>\n The article explains: “So, basically, another Great Depression seems to be predicted here.\u00a0According to their model, it will probably happen after the\u00a0interest-rate on 10-year Treasuries rises above 5.2%, when the unrealism\u00a0of current official projections\u00a0has become sufficiently clear to the\u00a0world so that the federal debt resumes soaring and the interest-portion\u00a0of federal expenditures rises similarly. That would be some time after\u00a02018.\u201d<\/span><\/p>\n However: What would happen if, in, say, October 2015, all the rest of the industrialized world crashes and their investors are pouring into U.S. equities? In that case, the Federal Reserve will be able to end their QE and raise U.S. interest rates beyond the magical 5.2% with impunity<\/i>.<\/span><\/p>\n Has Obama\u2019s strategy been to weaken all other major economies so that the U.S. will still be able to avoid a collapse even while the wealth-disparity between America’s rich and poor continues getting ever-wider (largely via the Fed\u2019s monetary policies reinforcing the fiscal policies from a heavily Republican pro-austerity Congress)? For example, is this part of the reason for what Obama has been doing to Ukraine, and to Russia, and soon stopping doing to Iran? Has he been preparing to get foreign aristocrats to pour their money into Wall Street?<\/span><\/p>\n If this is true, then how did he manage to get the EU to cooperate with this policy, which is economically suicidal for them? What are even European aristocracies expecting to win from this? Obviously, the European public lose enormously: their former welfare states will transform, like in Greece and in Ukraine, into high-tax low-welfare virtual national prisons, even as refugees pour into them from the wars that America has largely engineered in northern Africa and in Ukraine. Is Obama a brilliant psychopath?<\/span><\/p>\n These questions are not hyperbollic. Clearly, Obama is a brilliant and enormously successful liar. Clearly, benign interpretations of his Presidency are either stupid or lying, and they can\u2019t explain in any intelligently credible way his actions, nor comport his actions with his words. For some reason, Americans assume that they should continue trusting him, and much of the rest of the world does, too, even though\u00a0he is on record as being a strong defender of lying in political matters \u2013 he believes that politicians have an unlimited right to lie to the public.<\/span><\/a><\/span><\/p>\n How long will the public\u2019s suckerdom continue, and why has it continued as long as it has?<\/span><\/p>\n ———-<\/span><\/p>\n Investigative historian Eric Zuesse is the author, most recently, of They\u2019re Not Even Close: The Democratic vs. Republican Economic Records, 1910-2010<\/i><\/span><\/a>,<\/i> and of \u00a0<\/i>CHRIST\u2019S VENTRILOQUISTS: The Event that Created Christianity<\/i><\/span><\/a>.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" Eric Zuesse Washingtonsblog\u2019s anonymous founder and principal commentator is one of the most deeply knowledgeable writers on current events, and on July 19th he headlined\u00a0“Governments Worldwide Will\u00a0Crash the First Week of October\u00a0\u2026 According to 2 Financial\u00a0Forecasters.\u201d\u00a0He noted that both Martin Armstrong and Larry Edelson, two of the most respected stock-market predictors, are independently of each […]<\/p>\n","protected":false},"author":1254,"featured_media":167071,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[461,1622],"tags":[],"class_list":{"0":"post-167070","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-editorials","8":"category-featured"},"_links":{"self":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/167070","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/users\/1254"}],"replies":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/comments?post=167070"}],"version-history":[{"count":0,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/167070\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/media\/167071"}],"wp:attachment":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/media?parent=167070"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/categories?post=167070"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/tags?post=167070"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Screen](\"http:\/\/www.washingtonsblog.com\/wp-content\/uploads\/2015\/07\/Screen-Shot-2015-07-20-at-10.58.42-AM.png\")
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