The coming global crash and what could happen [John Zufelt]

26. júní 2010 | John Zufelt

The world is going broke—becoming bankrupt from debt. Debt that can never be repaid.

This is not an opinion, this is reality and mathematically provable. The money for the interest payments does not exist. Bankruptcy is guaranteed.

How in the world can a bankrupt country get out of bankruptcy with more debt? This makes no sense whatsoever!

Today, Canada is selling its Crown Corporations to make interest payments, Greece has just placed 2 islands up for sale, and who will buy these assets? Bankers who have the ability to create money from thin air.

Henry Ford, founder of the Ford Motorcar Company, once said, "It is well enough that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning."

Former President of the Bank of England, Josiah Stamp, said, "If you want to continue to be slaves of the banks and pay the cost of your own slavery, then let bankers continue to create money and control credit".

What we do not understand or bother to look at is that private bankers, who control the world's Central Banks, create money out of nothing and then charge interest on it. We have to wake up to this fact.

In November 2008, I published an article suggesting Iceland create a new currency tied to the gold standard. The price of gold at that time was $730 US dollars per ounce. Today it is $1,250/oz. This is an increase of 70% in less than 2 years. In October of 2009, I wrote another article about a 'Golden Opportunity' for Iceland. Then the price of gold was $1,040, an increase of 20% in less than one year.

If you are tired of your paper currency being manipulated, reflect on Voltaire's quote, "Of all the contrivances for cheating the laboring classes of mankind, none has been more effective than that which deludes them, with paper money. Paper money eventually returns to its intrinsic value—zero."

Right now the Federal Reserve Bank, the Bank of England, the European Central Bank and the Bank of China have the printing presses running at full capacity. They are creating new money out of thin air and issuing it as debt—to pay off old debt with more new debt until every country will have to sell their sovereign assets, collapse their pension plans, health care and social benefits and their citizens will be reduced to economic slaves. This is the goal of our privately controlled money system—to rob from the poor and give to the rich, and our false monetary system makes that happen automatically.

The system must be changed, and Iceland is just the place to start. You, as a country have given hope to millions of people around the world. You are fighting the bankers, you are voting out the corrupt politicians, and you are passing new laws for the betterment of everyone on this planet. My hat is off in recognition and appreciation of what you have done, but here another quote, relevant to this very point in time, from Josiah Stamp, former President of the Bank of England, "The Bankers own the earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen they will create enough deposits to buy it back again."

We need to take away the money creation process from the banking establishment—a tall order indeed, but here is a suggestion.

Start by wiping out all debt—no one owes anything. Then the government of Iceland can create its own currency interest-free. I suggest 2 currencies, one for domestic commerce and one for international trade. The domestic currency is issued by the government debt and interest free. The amount of currency that they issue should be in balance with the GDP of the country. If kept in balance there will be no inflation. The purpose of this money is to effect trade. If it is issued by the government and the government makes it legal tender and will accept it for taxation payments, that will give the confidence and acceptance to use it as money within the local economy.

Of course, the international (private) bankers will go crazy and yell and scream that they will not accept such a currency that is not created by them, so for international trade a 2nd Iceland currency would be employed, which is convertible or backed 100% by gold. This gold backing would guarantee international acceptance. There would then be the ability for exporters who buy in domestic currency, to convert into international currency at an exchange rate dictated by an independent local economic body. Today, in the world, who will accept gold or gold-backed money? The answer is, everyone.

I still believe there is a 'Golden Opportunity' for Iceland as more and more people of the world turn to gold as their safe haven against fiat paper currency. In the beginning of the German Weimar Republic, 1 ounce of gold could be bought for 100 D-Marks, within a few short years it cost over 100 Trillion D-Marks to buy that same ounce of gold. As these bankers print more and more paper money, the value will continue to drop and gold will rise.

Can you imagine a world where there are no interest payments? Where the price of a loaf of bread is only pennies because the farmer does not have to pay the bankers interest on money created out of thin air, nor does the trucking company that moves the grain and pays for fuel have to pay the false bankers, nor does the bakery that turns the flour into bread. Every product that we current consume has an inflated price because of the banking scam that create money out of nothing and charges interest for it.

Iceland you have led the way in protecting the rights of the common man. Congratulations and thank you on behalf of millions of admirers.


"If you want to continue to be slaves of the banks and pay the cost of your own slavery, then let bankers continue to create money and control credit. The modern banking system manufactures money out of nothing."

Josiah Stamp (former President of the Bank of England)

"By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens."

John Maynard Keynes