World's Largest English Language News Service with Over 500 Articles Updated Daily

"The News You Need Today…For The World You’ll Live In Tomorrow." 


The True Knowledge of The Three Minds: When The Three Become One By: Sorcha FaalWith knowledge obtained from the most ancient of texts, including the Gospel of Mary Magdalene, join Sorcha Faal on one of the most incredible and important journeys into the truest knowledge of human beings. (Continued)

Picking up the Pieces: Practical Guide for Surviving Economic Crashes, Internal Unrest and Military Suppression       By: Sorcha Faal “In the span of less than 3 months gasoline prices will rise 500%.  The prices of both food and shelter rise over 300%. (Continued)

Partisans Handbook: By: Sorcha Faal “Essential Survival Guide For Resisting Foreign Military Occupation, Escape And Evasion Techniques, Surviving Interrogation, Facing Execution, Wilderness Survival (Continued)

The Children of Winter: Apocalyptic Message of Hope By: Sorcha Faal "Not told by Sorcha herself alone, but by the Children of Winter themselves, who at 6 years of age the weather had no effect upon them as they walked naked in the snows of winter.  Who at 10 years of age could walk thorough boiling water with no burns or (Continued)

Code Red: The Coming Destruction Of The United States Limited release of the perhaps one of the most prophetic books of our time relating to the underlying causes, and history, of the downfall of America (Continued)


June 28, 2007

US Banking Collapse ‘Imminent’ Warns French Banking Giant

By: Sorcha Faal, and as reported to her Western Subscribers

French banking giant Société Générale Group, through its subsidiary SG CIB, the 3rd largest corporate and investment bank in the Euro zone, has warned today in a confidential report that the American banking system is in danger of ‘imminent collapse’ due to the hedge fund failures at US banking giant Bear Stearns, a fear that is also being voiced in America, and as we can read as reported by the New York Times News Service:

"The two big Bear Stearns hedge funds that neared collapse last week were full of tricky investments tied to subprime mortgages. To try to ensure that hundreds of billions of dollars worth of similar investments don’t also plummet, endangering the financial system, Congress may finally have to do more to help lower-end borrowers. That, in turn, would prop up the investments based on their mortgages."

Though the United States Securities and Exchange Commission has opened an ‘informal’ investigation into the collapse of the Bear Stearns hedge funds, SG CIB warns in their report that a ‘series of cascading events’ leading to the ‘insolvency’ of the American banking system is now being ‘unleashed’, and as confirmed by Britain’s Telegraph News Service:

"The United States faces a severe credit crunch as mounting losses on risky forms of debt catch up with the banks and force them to curb lending and call in existing loans, according to a report by Lombard Street Research.

The group said the fast-moving crisis at two Bear Stearns hedge funds had exposed the underlying rot in the US sub-prime mortgage market, and the vast nexus of collateralised debt obligations known as CDOs.

"Excess liquidity in the global system will be slashed," it said. "Banks' capital is about to be decimated, which will require calling in a swathe of loans. This is going to aggravate the US hard landing."

Even more catastrophic to the World’s economic system being warned about by SG CIB was the near simultaneous warning this week of a Global Great Depression by the Bank for International Settlements, and as we can read as reported, also, by Britain’s Telegraph News Service:

"The Bank for International Settlements, the world's most prestigious financial body, has warned that years of loose monetary policy has fuelled a dangerous credit bubble, leaving the global economy more vulnerable to another 1930s-style slump than generally understood.

"Virtually nobody foresaw the Great Depression of the 1930s, or the crises which affected Japan and Southeast Asia in the early and late 1990s. In fact, each downturn was preceded by a period of non-inflationary growth exuberant enough to lead many commentators to suggest that a 'new era' had arrived", said the bank.

The BIS, the ultimate bank of central bankers, pointed to a confluence a worrying signs, citing mass issuance of new-fangled credit instruments, soaring levels of household debt, extreme appetite for risk shown by investors, and entrenched imbalances in the world currency system.

In a thinly-veiled rebuke to the US Federal Reserve, the BIS said central banks were starting to doubt the wisdom of letting asset bubbles build up on the assumption that they could safely be "cleaned up" afterwards - which was more or less the strategy pursued by former Fed chief Alan Greenspan after the dotcom bust.

It said this approach had failed in the US in 1930 and in Japan in 1991 because excess debt and investment build up in the boom years had suffocating effects.

While cutting interest rates in such a crisis may help, it has the effect of transferring wealth from creditors to debtors and "sowing the seeds for more serious problems further ahead."

The bank said it was far from clear whether the US would be able to shrug off the consequences of its latest imbalances, citing a current account deficit running at 6.5pc of GDP, a rise in US external liabilities by over $4 trillion from 2001 to 2005, and an unprecedented drop in the savings rate. "The dollar clearly remains vulnerable to a sudden loss of private sector confidence," it said."

These warnings could not have come at a worse time for the war weary United States as its National debt has risen to the catastrophic level of nearly $9 trillion and is increasing at the staggering rate of over $1 billion per day.

Though the Americans represent only 4 percent of the World’s population, their economy represents 18 percent World’s economy, meaning that the collapse of their banking system will indeed have an effect on all other Nations ability to survive a Global Depression.

Russia’s President Putin, and in his also knowing of the coming collapse of the Western World’s banking and trade systems, called this week for a new World Economic Order, and as we can read:

"Speaking to an audience of world leaders and chief executives at a showcase business forum in St. Petersburg, Putin said the emergence of developing economies “demands the creation of a new architecture of international economic relations based on trust and mutually beneficial integration”.

He added, “Structures that were made taking account of a small number of active members look archaic, undemocratic and inflexible... This is clearly visible in the example of the WTO”.

The Russian leader proposed the creation of “regional Eurasian free trade organizations” that would draw on the experience of the World Trade Organization.

Russia demonstrated its new economic clout during the two-day St. Petersburg International Economic Forum by agreeing to investment accords worth 13.5 billion dollars (10 billion euros), forum organizers said.

It seemed evident that the World’s business elite had accepted Putin’s assurances during the forum that Russia was a safe bet, in spite of rising tensions between Moscow and the West.

It also reflected a wider surge in developing economies that Putin said had turned the old world order on its head.

“If 50 years ago, the G8 countries accounted for 60 percent of the World’s GDP, the current situation is vice versa -- about 60 percent of world GDP is produced beyond their borders."

To the ability of the average American citizen being able to survive an economic collapse it no longer seems likely, and as we can read:

"Personal bankruptcies during the first G. W. Bush administration totaled nearly five million, a record for any single term in the White House.

Due to the harsh bankruptcy legislation passed by Congress in 2005 the number of bankruptcies has recently declined—at least in the short term. But by making it more difficult for families to free themselves from extreme debt burdens, this is certain to produce ever greater numbers of workers who are essentially “modern-day indentured servants.”

It is also worth noting that the similarities to the present horrific circumstance facing the American people is an, almost, exact mirror imagine of that faced by their ancestors of last century whose lives were altered forever by the event known as the Great Depression, and which saw the greatest political and social realignment the United States had seen since their Civil War Period of the mid 1800’s, both of which led to the strengthening of the Federal Government at the expense of the individual States and personal freedom.

And, as their 20th Century ancestors had World War I, the realignment of the European Continent, the realignment of the Middle East, and the Spanish Flu Pandemic; today the Americans have a Global War on Terror, the uniting of the Nations of Europe into a single Union, another realignment of the Middle East, and the Bird Flu Pandemic.

“The more things change the more they stay the same” comes to mind in pondering that which is facing the American people today, but, perhaps, the more appropriate quote for these weary people were spoken by the 19th Century German philosopher Friedrich Nietzsche, and who in foreseeing the ‘plans’ of the World’s elite powers for humanity issued a warning to any, and all, who would listen, "Out of chaos comes order."

© June 28, 2007 EU and US all rights reserved.

 [Ed. Note: The United States government actively seeks to find, and silence, any and all opinions about the United States except those coming from authorized government and/or affiliated sources, of which we are not one.  No interviews are granted and very little personal information is given about our contributors, or their sources, to protect their safety.]

Return To Main Page

Return To Alternative News