Gary,

Where do you get the 1/3rd figure? I've heard you say that before, but I'm curious how you arrive there. Why will real estate fall to 1/3rd? Why not 1/2 or 1/4 of it's value?

Also, when do you think this will happen? 6 months? 2 years?

Do you feel that if the US weren't in the war with Iraq (and never had been) that the government would be in a better financial position to invest back into the economy to help grow it to slow inflation, help us dig out of the mess?

The US has been in debt for years. Why do you think right now that everyone is going to start asking for their money back?

Thanks Gary!

I get it from the triple multiplier rule that has been around forever. Whoever lives in the house, the house should be worth triple what the wages are of the people inside it. Therefore, in LA county, if the occupants make 40k/year and there are two, the house should average 240, not 600. If there's one person in it making 40, that person should live in a condo that is 120, not 360.

Consider if wages were to drop dramatically in the middle class, which is what happens in an economic wipeout. Then the prices go further south. I remember when I was reading Trump's book, you could buy a Townhouse in Soho for 90grand, and they still couldn't find buyers.

People are going to start asking for their money back from the U.S. to put it into more secure economies, like the E.U. with its strong euro, or Canada, the #1 supplier of crude to the U.S. As oil gets more scarce, fuel prices will skyrocket and with a rapidly falling dollar - remember that the U.S. imports most of its oil.

So my question is, what do the little people like me do in a crisis like this? I do not own a home, we rent, and have been renting for a long time, so no mortgage hanging over our heads. How does a person find that one little niche in photography when the Bay Are in cali is clogged with photographers. How do you do photography and be successful at it during a recession/depression?

These next 5 years are going to get down right scary!  The current generation that is in college (i believe they're called "milleniers") have been brought up by parents in a "gotta have it now" society so everything they "own" in on credit.  Things are going to come to a screeching halt pretty soon and it's going to get interesting.

I think you need to do a post on the cost of education!!!  College grads are walking out the door with a $100,000 degree in whatever (marketing, business, science, just basic 4-year degrees) and getting $30,000 a year jobs.  Their student loans are going to KILL them and that's going to KILL the economy too!!  My hubby is a Dr. with a student loan more than our mortgage!!  Pretty scary stuff.

OH one other thing...what about Rental properties? What about buying those and renting it out to people who couldn't afford their mortgage and now have to rent?

Julie I'm about to hop on a plane but I'll address that in a few hours. Thanks for being in my ads!

On the flip side of the coin, according to Forbes magazine, there are seven times as many billionaires in the U.S. today than there were twenty years ago (946 vs. 140).

In the world, the biggest increase in the number of billionaires came in 2006 when the world economy was purported to have grown 2.5%. The four cities having the largest number of billionaires were New York, Los Angeles, Moscow, and London.

The poor get poorer and the rich get richer.

GQ

Correction, the 946 billionaires are purported to be world wide. But I'm sure there are more since wealth and net worth is something that many keep private.

http://en.wikipedia.org/wiki/List_of_billionaires_%282007%29

THANK you for putting me in your adds in the magazine, that was awesome : )
I look forward to reading your response to my question. OH isn't your birthday coming up soon?

Yes soon thanks haha. Qnetex, this is the disappearance of the middle class.

Julie - with an economy that is shrinking, job losses will mean that having rental properties may be risky, as you may wind up with tenants that squat and take 90 days plus to be evicted.

Fiat Currency 101: What your school teachers did not tell you about the Great Depression:

The great depression of the 1930s was caused by a reduction of currency in circulation. No famine stalked the land. No disease or war had destroyed the population. The United States enjoyed highly developed industry and infrastructure. It had a skilled workforce equal to any on earth. What it lacked was sufficient currency in circulation to conduct business and commerce.

The Federal Reserve System, setup in 1913, decreased the supply of money in circulation until the economy began to convulse in 1929. The FED created this currency starvation by several means but THE MOST IMPORTANT is their ability to create money and demand more back in repayment than what was created. For every dollar they print and loan, more dollars must be paid back. The amount loaned is called the Principle, which must be paid back plus an additional amount called Interest. Since this interest money is not created (Printed) along with the principle amount, loan repayment decreases the total money in circulation by the amount of the interest paid in return. Mathematically, all money can be taken out of circulation over time as loans are paid off.

Think of it this way. The FED gives you an 8 oz glass of water but you must pay them back a 12 oz glass. If by law they are the only source of water on the whole planet, where do you get the extra 4 oz? You take it from the water that was already available in society before the FED game started. Each time a water loan is paid back the amount of water in society is reduced. In the early part of the 20th century it took the FED sixteen years to accomplish this to a point the economy began to convulse for lack of currency. It was like a fine car running out of gasoline. It was like a healthy person starving for oxygen.

To hasten the collapse, the FED raised interest rates, which meant fewer people could afford loans. They also raised the reserve rate at local banks. This means that banks had to keep more money in reserve relative to the loans they made. As a result, even less money was available to the public. Furthermore, in order to meet the reserve requirements, banks foreclosed on loans that were behind scheduled payments. They would sell off the collateral (home / farm / business) to get money to achieve the mandated reserve requirements.

This was also true for 24 hour call loans. These were loans where people borrowed money to invest in stocks that paid higher dividends than the interest payments for the loan. These loans had a stipulation that they could be foreclosed with 24 hours notice, in which time the stockholder must sell the stock and pay the loan balance. This happened and so many stocks went up for sale so quickly the bottom fell out of the market value. It was called the Wall Street Stock Market Crash which most people have been taught was the cause of the Great Depression, however it was in reality an affect of the monetary policy of the FED GAME.

The net result was that a huge part of American industry was aggregated into the hands of a very few people, all at the expense and suffering of millions in the United States and around the word. Now the FED is a private banking Cartel sponsored by the United States Government and during the 1930s, the FED stockholders were buying up the fruit that fell from the Industrial Tree.

So how did we get out of the depression? It was called the New Deal and in essence it is still keeping us out of the depression. The US Government began borrowing from the FED and spending that money into circulation through government works projects. Slowly the economy began to revive. Now the government can’t pay back more money than is printed for a loan either, so this creates a national debt. Like a credit card with no limit you just keep running up the total amount owed with no intention of ever paying it off. Mathematically you can't pay it off. You just make the minimum interest payment due monthly and that’s it.

Today, we have something very different happening. The FED is printing and loaning money like there is no tomorrow. It is precisely the opposite of what they did in 1929. They are doing this to prevent a collapse of their associate banks that got super greedy and started making high-risk loans. The net result is the value of your dollar is going to go down and you will have to work more hours to get enough to offset this loss of purchasing power. Like a drug addict, each weekly injection of salary from your job will not yield the desired results. So it will take more of the diluted drug to get the same fix. The real danger is still to come when the FED must reverse direction and stop the drug and we go into withdrawal. There is your depression! What we have coming in the near term is good old Jimmy Carter Stagflation with a double dose of foreclosures.

Now if you have understood any of this, you must be asking yourself the question why would the government create such a thing as the FED. The answer is quite simple. Politicians like to be elected to office. To get elected they need votes. To get votes they need to buy votes by handing out gratuities to the population. In the good old days before the FED, they had to raise taxes on working people to get money for the gratuities. Working people who paid taxes would promptly vote them out of office if the taxes were not justified and used wisely. Under the new FED system, Politicians have a credit card with an unlimited balance. They can buy all sorts of things and just pay the minimum interest due each month and let the national debt run up. There’s no need to raise taxes and get thrown out of office unless your total debt gets so large you need to raise taxes just to pay the minimum on your FED Credit Card. Of course the result of this system is prices go up for the products people need to survive because the FED Game inflates the money supply, decreasing its value. Unfortunately, the vast number of voters can’t figure out what is happening and they bear the burden without pointing the finger at the politician and their FED CREDIT CARD.

Now the politicians have plenty of money to spend and buy votes. They buy votes from those who don’t care to work anymore and call these welfare payments. They create useless high tech jobs with government enterprises that are searching to learn if there is some undiscovered foot fungus hiding under a rock on Mars. They pass trade agreements for big industrialists who in return give them campaign money they can’t get directly from the FED without giving away the secret of what is going on.

Yes, the FED CREDIT CARD is the best thing the lawyer / politicians ever came up with. They can buy votes from any group with no accountability to the voters or people paying the bills. They get money for re-election and the working public gets robbed and nobody can figure out who to blame.

Hytek

It takes a few seconds to start:

Money as Debt

so another wards being middle class-ish is really bad, cause either I gotta be really rich like you, or just poverty stricken! All I gotta say to that is SHIT!

Hytek,

Ok, now I have heard from many MANY people that I'm a Conspiracy Theorist.  Even from people here on Gary's blog too.  But you have posted some of the best information on the world powers that we're not supposed to know.  First, how do you know so much?  And second, where do you find the time to know so much?  I'm not looking a gift horse in the mouth, but dang - I'm really impressed!

Cheers!

David Esquire
Esquire Photography
www.esquirephotography.com
david@esquirephotography.com

David,

It has been a long time coming. Since my earliest childhood memories I wondered why people seemed to work so hard yet never had enough money. Were they bad money managers? Were they just not industrious enough? Did they want too much? That didn't seem to always be the case. Well it took a long time and much study. The first credible explanations I ever heard were on shortwave radio broadcasts many decades ago. I found a lot of good information in books and poorly put together explanations as well. In the last decade some really good presentations have been published and made freely available on the internet. One of the best things you can buy on the history of the Banksters is a book called "On the Horn of the Beast." While the name has a religious connotation, it is not. The author, Bill Still, is a historian and gives you a detailed account of the money masters and how they have influenced history from ancient times to present day. They have been far more influential than any other entity, including the major religions. They've helped bring the NAZI party to power in Germany and Lenin to power in Russia. They've profited from loaning money to both sides during global wars. The link below is an apologist effort for their acts during WWII with Hitler. They knew what he was going to do because he had outlined it all in his book Mein Kampf. In our lifetime they are building an industrial giant in the far east that has murdered million of dissenters.
Banking With Hitler

The banksters have brought to power socialist governments that have murdered approximately 100 million people around the globe in the 20th century. They have caused recessions booms and busts. The Chairman even admits the FED caused the great depression (See the last paragraph at the link below)
Bernanke Speech

About 20 years ago I finally came to the inescapable conclusion, as incredible as it seems, the US financial system is rigged. It is like a game of musical chairs with one less chair than players. When the music stops, someone is guaranteed to bust their butt. There simply is not enough money injected into the system to pay back all the principle and the interest required by the agreements. The banksters have put up nothing but we have staked real property and stand to lose it all to the banksters if things don't go in our favor. People who do fail are looked down upon as poor money managers and they're a victim of their own ineptness. While sometime this is true, often it is not. Because the system is rigged to assure failure of some portion of the population, people are helpless to some extent. It has to be this way because the goal of the banksters is to cheat people out of their labor so the Banksters don't have to work. It is a violation of a most fundamental principle (Gen 3:19).

The key to survival is not to make loans when the Banksters are planning a contraction of the money supply and pay back the loan about twice as fast as the agreement requires. That way you don't get caught short when others do.

Money, credit and finance is only the mechanism that gives them power. The bigger picture is what are the values of these people and what are their plans for the future of mankind? When you read that many of them are calling for the extermination of 90% of the planet's population after the installation of a totalitarian global government, you can see what is taking shape around us. It's one thing to be a serf or slave on the Global Plantation but when the Master is not just considering selling you off or working you harder but ending your existence, then you have to be concerned.

Hytek

Russo Interview

Freedom to Fascim

Wow Hytek, I just clicked on the link for 'Money as Debt'. That was 47min. and 7seconds of great information. I feel like I should get a college credit or something. I'm pretty sure I didn't have that class while I was actually in college. Thanks for posting it.

Kelly Photo,

Yes it is great information and I'm thankful to those who put it together.

It's amazing to me that younger colleagues seem to grasp the situation easily where older people seem to resist the idea that they have been bamboozled all these years. They are incredulous and refuse to see the reality of the system. The younger folks can't believe this is not more widely discussed and never mentioned in all their years of higher education.

My daughter was a banking and finance major. In one of her college course she mentioned something in class that tipped her professor off that she understood the system. She said he smiled at her and from that time on treated her with more respect than the other students. He seemed to think she had greater insight than the usual dummies that come through his classes. Of course I had thrown this stuff at her since childhood. I think she thought her dad was a bit nuts until this experience with the professor.

Hytek

OK let's say you are right about the value of homes becoming 1/3 what they were. What then happens to local property taxes? Are the homes taxed at the rate they WERE or ARE?

Then either way, what will the ramifications of that be?

Shades of 1929. And (if history repeats itself) the real thing that got us out of that depression was World War 2.

Yikes!

Terry

Hey Hytek, great money video!! Thanks for posting it!

actually I did get property tax reductions on my 2 Naples, FL places due to reduced property values...small 40-50 buck reductions...

Wow!! Gary, Hytek thanks for the information & videos...I came across similar information on a public access channel here in Austin about 10 yrs. ago that basically explained everything you've mentioned, I've also heard Alex Jones of Info Wars mention some of the same things.

Info Wars
http://www.infowars.com/

Gary I forgot to ask...if you think America will be going into a 2nd Great Depression or we just seeing the start of one?

carlos - rephrase that question?

Do you think America is headed into another great depression?

Just in case some of you did not get the whole picture, let me make one more post. The people who control the global monetary system not only live high lifestyles but also wield enormous influence on government, which they control, and industry, which they own through surrogates. It would be extremely naive to think these people don’t express and share their ideology with each other. To say these people don’t get together and talk shop is like saying photographers don’t get together and talk photography. But just like the photographer analogy, they have differences of opinion and do not operate as a cohesive unit at all times. Their primary goal is to maintain the control they have and stay in the shadows. They know the population could bring them down in an instant. However their own pride has been their biggest downfall. They hate hiding from us. They wish they could flaunt their power but wisely use restraint. Occasionally they let the mask slip off and tip their hand and in these instances we learn a great deal about their character and values. This is one of the main reasons they want a global supreme government. When they control that totalitarian regime, it will not be from behind the scenes anymore.

Now their plans for a gradual transition to global governance are proposed through a number of front organizations that insulate them from publicity. The CFR and the Trilateral Commission are the two most common. Also they fund a number of tax-exempt foundations that promote various sub groups. If you want to know what government policy will be for the United States in the coming years (Democrat or Republican), you need look no further than the CFR publications. Long before NAFTA, GATT and the WTO were created; the CFR had proposed these very agreements.

Also you should know these people long ago bought out and subjugated the Major News Media, which now act as their propaganda ministry. These organizations avoid mentioning the activities of the true rulers of this world or their front organizations. Expressing that very sentiment, David Rockefeller, founder of the Trilateral Commission in June of 1991, addressed a meeting of that organization and said. 'We are grateful to The Washington Post, The New York Times, Time Magazine and other great publications whose directors have attended our meetings and respected their promises of discretion for almost forty years. It would have been impossible for us to develop our plan for the world if we had been subject to the bright lights of publicity during those years. But, the world is now more sophisticated and prepared to march towards a world government. The supranational sovereignty of an intellectual elite and world bankers is surely preferable to the national auto-determination practiced in past centuries.'

The Media’s primary method of functioning is to keep you and everyone else distracted while the World Bankers and Intellectual Elite go about their nefarious work. To do this they have the politicians they helped elect push Hot Button social issues that mean little in the greater scheme of things, yet these issues typically get people very polarized on one side or another. I’ve used the example of one politician proposing partial birth abortions at a drive through window, while another proposes banning a woman’s period because a precious life is destroyed.

There are many advocacy groups on either side of these issues that are secretly funded by the tax-exempt foundations mentioned earlier. They also help fan the flames and distract the masses. So next time you see some bizarre advocacy group getting loads of media attention and they boil your blood proposing something extremely out of the mainstream, ask yourself some questions. Where did these people get the resources to promote their position? Who is funding them? Why is the media giving such an extremist ideology a spotlight and soapbox? The motive of the news media is not just to get ratings. Their purpose is to keep your eye off what IS Important, and that is who is really running the planet. When you watch the news observe to see how they are programming the population and what they want them to think. Once you can disconnect yourself from having any passion or emotion, it becomes increasingly obvious the skill the media employs to whip both sides into a frenzy that keeps their attention distracted from the real issue of who controls Money, Government and Industry.

And please forget about Republicans and Democrats. These people are the Left and Right Arm of the Same Monster. Both parties are funded by the Global Bankers. There is no difference in the two parties. One takes us toward global government at 100mph and the other takes us at 85mph. One wants everything run by Big Government and the other wants everything run by Big Business. We keep getting both.

Now there is one more technique employed to bring about societal change. It is called creating a problem (real or contrived) and then when the population is screaming for relief, they provide a predetermined solution for the problem. Remember how I said they want Global Governance? In the past the bankers saw only one way to bring this about and that was through global conflict on such a scale the world’s population would beg for peace and agree to be governed by a supreme entity that would stop the bloodshed and carnage.

Their first attempt was the League of Nations formed after World War One. Of course they funded both sides until they struck a better deal with Britain through the Balfour Declaration and promptly starved Germany for currency, which led to their collapse and the armistice agreement. Their second attempt at Global Government was and is the United Nations, which came about after World War Two. Of course again they funded both sides in World War II and helped Hitler dispose of the Gold they got from the concentration camp victims, including dental work. (See the Banking With Hitler Link in previous Posts). This time Germany’s credit was good right up till Hitler put a bullet through his head.

In my generation they used the Cold War with the constant threat of Nuclear Annihilation. Surely Global Governance beats going up in a mushroom cloud right? One more thought to share with you, they again funded both sides and this includes the Bolshevik Revolution.

Well when the Soviet Union ran out of gas because their people simply refused to work to support the government… Oh did I forget to mentions that? The true reason the wall came down was just what a Jewish-Russian colleague once told me. He said the standing joke in Russia was, “They pretend to pay us, so we pretend to work.” Their economy collapsed because the people simply stopped producing. Let this be a lesson to us all. It is just that easy to bring down a massive government. Everyone simply refuses to work! But I digress.

When the cold war ended the Global Bankers started beating the drum over global pollution, disease, starvation and over population. Man Made Global Warming from CO2 production is the rage nowadays yet the science behind it is a complete joke. A Complete Joke! Of course most people care about the earth and don’t want to abuse anything and want to act responsibly. Unfortunately, they get emotionally caught up in the rhetoric without closely examining the science behind the claims that CO2 production is causing global warming. They simply accept the proposition on GOOD FAITH that manmade global warming is a fact. It takes about ten minutes of looking at the IPCC data to debunk it completely and show that it has been manipulated in order to reach a contrived conclusion. CO2 levels increase AFTER atmospheric temperatures increase, according to the IPCC’s own charts. They are saying the Cause follows the Affect, something that never happens. That’s like saying water comes to a boil on your stovetop before you turn on the burner. Of course it only makes sense that CO2 would go up after temperatures go up because plants love warm weather and produce CO2.

The real culprit in Global Warming appears to be Water Vapor, a green house gas that is 270 times more potent per molecule than CO2 and comprises 95% of all green house gases in the atmosphere. The CO2 man puts in the atmosphere comprise 0.28%. Not only is this gas 1/270th less potent than water vapor but manmade CO2 comprises a tiny fraction of all green hose gases. It is a statistical zero!! Imagine you have 100 guys working on a loading dock and 95 of them can lift 270 times the weight that the remaining 5 guys working for you can. Now if you come out and see hundreds of huge heavy crates moved from one end of the dock to the other over a brief period of time, do you assume the 5 weaklings accomplished that work?

What do man made Global Warming advocates propose we do to cut CO2 production? They want us to burn Hydrogen in our cars. What is the byproduct of burning hydrogen? Water Vapor! The most potent and abundant green house gas and they want us to increase it by burning hydrogen.

Al Gore, who is constantly beating the drum about CO2 levels and burning fossil fuels was the politician who cast the tie breaking vote while in the Senate to pass NAFTA, GATT and the WTO. These agreements vastly accelerated the industrial development of China and India. Even the environmentalists agree this development has greatly increased the burning of fossil fuels and CO2 production. Yet now we have the same guy who helped inaugurate this increase in the burning of nonrenewable fossil fuels telling us we need a carbon tax and we need to conserve energy.

The real goal behind this propaganda is justification for a global tax on energy consumption that will milk the population of wealth to fund greater control by the United Nations. It’s another end run around all national sovereignty under the guise of a just and responsible action. The Global Bankers know they can’t forcibly impose this tax because you will resist. So they create a scam to trick the population into giving their freedoms away for a greater noble cause.

Their mantra is “Order out of Chaos.” They are constantly stirring the pot trying to aggregate total power into one Government Entity. They believe, “a nation or world of people who will not use their intelligence are no better than animals that do not have intelligence. Such people are beasts of burden and steaks on the table by choice and consent." This is the exact opposite of do unto others as you would have them do unto you.

Now I know many of you think, how can such a conspiracy go on for generations? Well I work for an aerospace company that was formed generations ago. The founder had a dream of selling military aircraft to the US Government for profit and solicited like-minded individuals to help him. While he has been dead for more than half a century, the conspiracy continues. Likewise, the monetary system I’ve described to you had its beginnings in the 1600s but has evolved and continues to this day. It has been perpetuated by like-minded individuals who were solicited and brought into the system or inherited the wealth and position they hold today. Their attitude is that the earth belongs to them and you and I are just serfs on their Global Plantation. Their greatest concern is that the controls they enjoy could be stripped from them through a revolt of the peasants. Hence they just can’t seem to get enough control or ever get satisfied.

Just don't forget that personal responsibility plays a huge role in the economy! It does not take a rocket scientist to figure out what you can and cannot afford. Much of the housing market problem has to do with people who were rolling the dice on the timing of the rise in rates. Greed is a dangerous thing!!