The results of a determined effort to undermine and thwart local interests by global industrialists in cahoots with subservient and compliant government are only too evident in the incidents reported above.

It must be cold comfort for these local residents knowing their new PM is tied closely to the World Bank.

The current mood of discontent and uncertainty over global financial issues aside from PNG woes must also throw some additional degree of doubt over future viability and returns from the industries in the PMIZ's. Will there be a strong enduring flow to consolidated revenue or will the revenues be swallowed by back-room deals invested in other projects that are likely to fail to deliver to the needs of grassroots citizens long starved of resource and infrastructure development?

Bob Chapman writes insightfully concerning the latest shake-up of the globe wherein the outcomes of a second wave of GFC is likely to continue eroding stability in world markets.

“Solution” to The Debt Crisis: More Debt

Bob Chapman
Infowars.com
August 4, 2011

It was 15-months ago that we projected that the second half of 2011 and onward would present many financial and economic problems, and we have not been disappointed. There was federal debt and its renewal, which we are now suffering through, municipal debt problems, the lack of any kind of solid recovery and financial problems emanating from Europe. Making the situation more difficult is the statistical exposure at Princeton University that more than $5 trillion has been spent since 9/11 to create new wars in Iraq, Afghanistan, Libya and Pakistan, with more in the works.

Running neck and neck has been the federal debt issue and the second bailout of Greece and its affect on the debt problems of five other close to insolvent nations. Perhaps with the exception of Germany the world economy is in disarray. Every major economy otherwise is in trouble in one-way or another. That means we have a very unstable international monetary system in which some sovereign nations are in desperate shape. The effects of QE1 and 2 and stimulus 1 and 2 and their equivalents have thus far proved to be futile. In spite of that most nations are about to embrace QE 3 or something akin to it, and make the same mistakes over again.

We are now approaching the autumn session in the temperate zone and we advise you to hold on tightly to your seats, because this is going to be a very bumpy ride. The political antics being displayed in regard to the US debt extension are going to cause a fall out, particularly in the US Treasury market as interest rates again to start to rise. What you have witnessed in the US Congress is not inducive to stability and recovery. In fact just the opposite is the case. If you combine US with European problems you have double trouble.

Over in Europe the Greek crisis has become a European crisis. We wonder when Europe is going to wake up to the fact that Wall Street and the City of London are attempting to destroy the euro as a viable alternative to the dollar as the world’s reserve currency. In spite of this the euro has so far held its own, as the dollar has faded against not only the USDX, but against gold and silver as well. There are those who believe that the euro and the EU have been revitalized, but we see Europe somewhat differently. The movement of more nations into the euro has not been due to stability, but to a weakening US dollar and assistance from China and Russia. The elitist powers in NYC and Washington have no intention of losing the dollar as the world reserve currency.

We said 1-1/2 years ago that the solvent countries could not handle the bailout of six nations that were on the edge of bankruptcy. If the EU-IMF-bank bailout of Greece goes as planned within 1-1/2 years Greece will not have met its commitments and the game will be on again. There is no question at that point that the solvent nations will balk, the euro will fall and perhaps even the EU. That is because the contagion will have spread to the other five troubled countries. These events will in turn trigger the debt bombs in England and the US. The interconnectivity that the elitists wanted so badly will finely be their undoing. The precursor to this is the rating downgrade we have witnessed just recently.

The world economy is slowing down and that is going to compound problems. That is why transnational conglomerates and others continue to lay off staff and hoard cash. They have an idea of what is on the way. This is why QE cannot end until forced to be ended by hyperinflation. At the same time the value of assets is wasting away, although held up in part by inflation.

Governments worldwide continue to issue debt, as central banks broaden their balance sheets. More than $5 trillion has been added to the world’s money supply and there seems to be no end in sight to this desperate, reckless policy. The notion of too big to fail has been adopted worldwide.

As we predicted eight years ago when we said Fanny Mae and Freddie Mac were broke and would be absorbed by government, we also said eventually housing would be nationalized. Once the too big to fail banks cannot handle the foreclosed properties on their books they’ll allow the taxpayer to step in via Fannie, Freddie, FHA and Ginnie Mae and assume the debt. Eventually government could end up owning all the housing stock, which would give them great leverage over the individual. National Socialism is the end goal. This just didn’t happen. Loose credit, a credit bubble crisis and an eventual collapse in the credit structure came about. It was engineered, it just didn’t happen. Do you believe it’s normal for bankers to issue loans to totally unqualified buyers? Of course it isn’t. These were and are prudent bankers, that don’t make those kinds of errors, unless told to do so. The big banks are in serious trouble as are municipalities, states and the federal government, as a result of what the Fed and the banking system have done. People have lost confidence in the Fed, the banks and government, and that shouldn’t surprise anyone. These observers see secret arrangements via the Fed, Bank of England and the ECB. They also question the costs and success of bailouts, increases in money and credit when the recipients are the financial community and governments. Little help has been given to citizens of these nations. These same people are now questioning why these nations are allowing central bankers to try to extend the problems into the future by using short-term palliatives? They are also asking why banks were lending to sovereigns when they shouldn’t have been doing so, under any circumstances. Even the low rates the banks charged were ludicrous.

We now see it is only a matter of time before Wall Street and the City of London realize how vulnerable their stock and bond markets really are. The financial system is in a shambles and all they care about is profits. The deal last presented and passed by the legislators’ means very little. The next Congress can change things by a vote. The whole bailout bill is on the come. Future triggers will not decrease Medicare and defense spending, because they will never happen. It was all political theater, and it was really all about cutting Medicare and Social Security as well as the imposition of a 12-member panel, which will resemble a star chamber preceding. The result will be continued distorted markets and more of the same spending. Little will be cut and the latest version of QE 3 will move forward, as inflation moves higher. The question is has the stock market already discounted such a deal and will gold and silver treat the agreement as a non-event? The market is hard to call, but gold and silver have been rising due to the dollar being replaced as the world reserve currency by gold and the fact that inflation is 10.6% and rising. The big losers are the American people and Congress.

You do not have to be a space scientist or brain surgeon to figure out that official GDP growth figures for the last quarter of 2010 and the first and second quarters are bogus. The last 2 quarters until they are changed again, showed GDP growth of 1.3%. If you extract inflation and QE 2 and stimulus of at least $1.8 trillion to $2.4 trillion doesn’t work, then what will work? The Treasury and the Fed don’t seem to know or they wouldn’t be doing what they are doing. They know they have to continue, because the Fed in recent years admitted that they were the cause of the Great Depression by putting insufficient funds into the system. Obviously they won’t do that again. Thus, they are doing just the opposite and they know that does not work either. One asks oneself, how can anyone who knows this have any confidence in the monetary system? It was this loss of confidence that took down the system in the 1930s and that is what will lead to its failure again.

The heart of the issue in the Fed and the Treasury is that they have to come to terms regarding fiscal spending, monetary stimulus and market manipulation. The markets are not free and the operations of the “President’s Working Group on Financial Markets” is simply driving more and more players out of the market, even professionals. It is impossible to trust or have confidence in such a system. Economic and market support should be limited, if used at all. We are looking at three years and $4.3 trillion of support, without which the economy would have collapsed. As a result recoveries have been of short duration with no lasting effects.

The Fed continues to deny the inevitable as does the ECB in the euro zone with bailout after bailout. The GAO tells us the Fed lent out $16.1 trillion two to three years ago and says nothing about it being paid back. The only way we found out what the Fed had done was by the Dodd-Frank legislation. The Fed may think re-flation is fine, but tell dollar owners who lose value every day. The idea that dollar profits will be perpetually recycled by exporters into Treasuries has begun to come to an end. If the greenback is weak and weakening why continue to hold it? That is why foreign forex holdings by foreign central banks has fallen from 70% a few years ago to 59%. This is why the Fed has to create money and credit to absorb about 80% of Treasury issuance. Many of these countries are relatively unsophisticated and are now beginning to endure lower exports. We are even seeing that occur in the export powerhouse of China. The Fed probably will buy as many Treasury, Agency and toxic waste bonds as necessary, but that does not address the underlying problems. It only demeans the dollar further and expedites foreign US dollar sales. It is true Asian central banks have a great stake in the US economy, but that is waning as exports falter and that may cause forced dollar sales to meet domestic financial needs. There is no question central bankers worldwide are hopelessly interconnected, and that they have to share an interest in helping sustain dollar strength and value. The question is will the dollar just get worn down as it has been, or will there be an event that will change that?

The EU, ECB and the IMF believe they have a second bailout formula in place, but acceptance won’t come for another month and it is possible it won’t come at all. That is if German, Dutch and Finnish citizens have anything to say about it. From Greece we are told hordes of experts are invading Greece to put values on Greek properties illegally put up as collateral secretly for the first bailout. It is a fire sale of Greek assets in the making as their country is stolen out from underneath them. At the same time 100,000 taxi drivers are demonstrating countrywide, because government wants to strip them of their licenses, so that foreign operators can enter the country and take over the businesses.

Thus far the Fed has been successful in keeping the wolves at bay, but for how long and at what cost. They cannot do what they are doing forever. Higher inflation is nipping at their heels and it is growing exponentially. Underlying creditworthiness comes under scrutiny every day. Everyone involved knows the system is dysfunctional and all are hoping the system does not disconnect. Sooner or later it must fail, as debt overwhelms monetary creation. Those who want safety from these machinations have one place to turn to and that is gold and silver related assets. If you do not move to protect yourself now there may be little or nothing to protect in the future.

Copyright © 2010 Infowars. All rights reserved.

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Inasmuch as the world of commerce and industry is tied to a contrived and monstrous financial system ostensibly designed to facilitate trade and enable prosperity, we nonetheless find in these present circumstances, the system is indeed designed to bring about enslavement by which to enable an elite few to lord it over the mass.

Better by far, in recognizing this to be so, that we give our allegiance to the coming King: Jesus Christ.

Acts 1;11

King James Bible
Which also said, Ye men of Galilee, why stand ye gazing up into heaven? this same Jesus, which is taken up from you into heaven, shall so come in like manner as ye have seen him go into heaven.

Bible in Basic English
And said, O men of Galilee, why are you looking up into heaven? This Jesus, who was taken from you into heaven, will come again, in the same way as you saw him go into heaven.

Douay-Rheims Bible
Who also said: Ye men of Galilee, why stand you looking up to heaven? This Jesus who is taken up from you into heaven, shall so come, as you have seen him going into heaven.

King James Bible
Go to now, ye rich men, weep and howl for your miseries that shall come upon you.

Bible in Basic English
Come now, you men of wealth, give yourselves to weeping and crying because of the bitter troubles which are coming to you.

Douay-Rheims Bible
Go to now, ye rich men, weep and howl in your miseries, which shall come upon you.

Genesis 22:2 Then God said, "Take your son, your only son, Isaac, whom you love, and go to the region of Moriah. Sacrifice him there as a burnt offering on one of the mountains I will tell you about."

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Isaiah 9:6 For to us a child is born, to us a son is given, and the government will be on his shoulders. And he will be called Wonderful Counselor, Mighty God, Everlasting Father, Prince of Peace.

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John 1:18 No one has ever seen God, but God the One and Only, who is at the Father's side, has made him known.

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John 3:18 Whoever believes in him is not condemned, but whoever does not believe stands condemned already because he has not believed in the name of God's one and only Son.

King James Bible
That if thou shalt confess with thy mouth the Lord Jesus, and shalt believe in thine heart that God hath raised him from the dead, thou shalt be saved.

Bible in Basic English
Because, if you say with your mouth that Jesus is Lord, and have faith in your heart that God has made him come back from the dead, you will have salvation:

Douay-Rheims Bible
For if thou confess with thy mouth the Lord Jesus, and believe in thy heart that God hath raised him up from the dead, thou shalt be saved.

Kind regards, Robin

The continued attack on the $US as the prime world trading currency is causing reveberations within the Chinese treasury.

The mounting threat to their Sovereign Wealth Fund is drwing more than passing comment.

The article below explains the perceptions and intent coming from PNG's large backyard visitor.
regards,
Robin

China Calls For International Oversight Of The US Dollar, Suggests Single Global Currency Replace It
Alexander Higgins
Aug 7, 2011

China is demanding “international supervision over the U.S. dollar” and says they are looking at the option of creating a new single global currency to replace the dollar altogether.
China has published an article in its stated owned Xinhua news agency that rails against the United States for losing its AAA credit rating and has issued a series of demands to U.S. policy makers and the international community.

China begins by railing against the “arrogance and cynicism from some Western commentators” in regard to the credit rating downgrade of U.S. debt that was issued by China’s Dagong Global credit rating agency last year and goes on to state that they have the right to demand the U.S. address its debt problem to protect the Chinese dollar.

In concluding the article China is calling upon the international community to intervene with a program of “international supervision over the U.S dollar” while indicating they are looking at the option of creating a global currency to replace the dollar altogether.

China Calls For International Supervision Over The US Dollar And New, Single Global Currency To Replace It

Zero Hedge reports:

Gloating China Says “Has Every Right To Demand US Address Its Debt Problem”, Asks For New Global Reserve Currency
Submitted by Tyler Durden

08/06/2011 11:21 -0400
China has released a scathing op-ed in Xinhua, the official Chinese news agency, in which the authors waste no time to humiliate a “debt-ridden Uncle Sam” following the S&P downgrade, in the most violent surge in the recent war of words between the ascendent and descendent superpowers. Some choice selections: “Dagong Global, a fledgling Chinese rating agency, degraded the U.S. treasury bonds late last year, yet its move was met then with a sense of arrogance and cynicism from some Western commentators. Now S&P has proved what its Chinese counterpart has done is nothing but telling the global investors the ugly truth”, “China, the largest creditor of the world’s sole superpower, has every right now to demand the United States to address its structural debt problems and ensure the safety of China’s dollar assets.” It doesnt stop there, “[the US] should also stop its old practice of letting its domestic electoral politics take the global economy hostage and rely on the deep pockets of major surplus countries to make up for its perennial deficits.” China takes the opportunity to give the US a little lecture on a broken way of life: “All Americans, both beltway politicians and those on Main Street, have to do some serious soul-searching to bring their country back from a potential financial abyss.” And lastly, China once again gets back to its pissing contest about whose reserve currency is bigger: “International supervision over the issue of U.S. dollars should be introduced and a new, stable and secured global reserve currency may also be an option to avert a catastrophe caused by any single country.” Just wild fun. Read the whole thing below.
From Xinhua:

After historic downgrade, U.S. must address its chronic debt problems

The days when the debt-ridden Uncle Sam could leisurely squander unlimited overseas borrowing appeared to be numbered as its triple A-credit rating was slashed by Standard & Poor’s (S&P) for the first time on Friday.

Though the U.S. Treasury promptly challenged the unprecedented downgrade, many outside the United States believe the credit rating cut is an overdue bill that America has to pay for its own debt addition and the short-sighted political wrangling in Washington.

Dagong Global, a fledgling Chinese rating agency, degraded the U.S. treasury bonds late last year, yet its move was met then with a sense of arrogance and cynicism from some Western commentators. Now S&P has proved what its Chinese counterpart has done is nothing but telling the global investors the ugly truth.

China, the largest creditor of the world’s sole superpower, has every right now to demand the United States to address its structural debt problems and ensure the safety of China’s dollar assets.
To cure its addiction to debts, the United States has to reestablish the common sense principle that one should live within its means.
S&P has already indicated that more credit downgrades may still follow. Thus, if no substantial cuts were made to the U.S. gigantic military expenditure and bloated social welfare costs, the downgrade would prove to be only a prelude to more devastating credit rating cuts, which will further roil the global financial markets all along the way.

Moreover, the spluttering world economic recovery would be very likely to be undermined and fresh rounds of financial turmoil could come back to haunt us all.

The U.S. government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone.

It should also stop its old practice of letting its domestic electoral politics take the global economy hostage and rely on the deep pockets of major surplus countries to make up for its perennial deficits.

A little self-discipline would not be too uncomfortable for the United States, the world’s largest economy and issuer of international reserve currency, to bear.
Though chances for a full-blown U.S. default are still slim now, the S&P downgrade serves as another warning shot about the long-term sustainability of the U.S. government finances.
International supervision over the issue of U.S. dollars should be introduced and a new, stable and secured global reserve currency may also be an option to avert a catastrophe caused by any single country.

For centuries, it was the exuberant energy and innovation that has sustained America’s role in the world and maintained investors’ confidence in dollar assets. But now, mounting debts and ridiculous political wrestling in Washington have damaged America’s image abroad.

All Americans, both beltway politicians and those on Main Street, have to do some serious soul-searching to bring their country back from a potential financial abyss.

The events in this video look more and more likely every day.
“THE DAY THE DOLLAR DIED” (7 MIN CLIP)
http://www.youtube.com/watch?v=2N8gJSMoOJc&feature=player_embedded

Reuters also reported on the Xinhua article and added that China will now be forced to dump the U.S. dollar.

The downgrade of U.S. credit rating is expect to take a major toll on China’s over $2 trillion in investments in the U.S. dollar.

With no where else to put all of that money China will be forced to invest it into a one world currency.
Reuters reports:

China blasts U.S. over debt problems, calls for dollar oversight
SHANGHAI | Sat Aug 6, 2011 2:35am EDT
(Reuters) – China roundly condemned the United States for its “debt addiction” and “short sighted” political wrangling and said the world needed a new stable global reserve currency.
In a harshly-worded commentary by the official Xinhua news agency on Saturday, China gave its first official comments on the United States losing its gilded AAA long-term credit rating from Standard & Poor’s.

[...]
Chinese economists said the U.S. credit rating downgrade posed a great risk to financial markets and they expected it to prompt China, the world’s biggest holder of U.S. Treasuries, to accelerate the diversification of its holdings.

[...]
“China will be forced to consider other investments for its reserves. U.S. Treasuries aren’t as safe anymore. There is a class of assets out there that are more risky than AAA, but less risky than AA+. China didn’t consider these investments before, but now it would be forced to do so,” Li said.
[...]
Source: Reuters

Copyright © 2010 Infowars. All rights reserved.