Many are surprised at the speed of events occurring with the current global
economic collapse. Yet few appear to be aware of what is still to follow as
events unfold in the days that lie ahead. For some years I have been writing
about this economic collapse, and now will explain the events that will
unfold over the coming weeks.

The present crisis is not just an economic crisis – it is a political crisis
also. What is unfolding now is a going to result in the end of the
Anglo-Saxon dominance of the global economy, along with the collapse of
their economies and military capacity. We are experiencing some of the most
dramatic and historic events in the history of mankind. The political
landscape of the world we live is being significantly changed.

Here is a brief summary of the events to unfold.

1. The Anglo-Saxon financial institutions will continue to haemorrhage as
investors withdraw their funds and no longer refinance loans as they fall
due. Many of the investors are foreigners who have lost confidence in
investing in the Anglo-Saxon banking system.

2. The fall-out is impacting the European Union economies, resulting
political and economic changes is how the way the EU is govern.

3. There will be a lack of confidence by the Asian countries in reinvesting
in the Anglo-Saxon nations – the withdrawal of their capital will result in
the collapse of the US dollar, British pound and other currencies depended
on the carry trade, followed by national bankruptcy.

4. While Asia and European economies will survive and once-again prosper,
the Anglo-Saxon nations will collapse into deep depression, poverty and
social disintegration.

5. A new economic model will emerge, where the State replaces the private
sector, exercising control over the population in how commercial activity is

Central banks over the last couple of weeks around the world have been
increasing the money supply to prop up a collapsing banking system. In
simple terms, this has meant creating money to advance to banks to ensure
that they have funds to pay depositors and to provide additional funds to
ensure banks will continue lending.

The recent $US700 billion bailout in the USA means that the banks will be
repaid by the government for their bad loans, with the hope that they will
continue loaning once again to debt-laden consumers to entice them to
purchase more goods that they really don’t need in an effort to stimulate
consumer spending. Yet banks are having trouble to find credit-worthy
customers to lend to, or do not have the funds to lend at all as depositors
withdraw their savings.

The expansion of credit through the global banking system on the scale of
the last few weeks has been a risky gamble yet has failed to restore
confidence in the global equity markets, and which in turn is further
weakening the banking system as depreciating assets destroy their balance

The Anglo-Saxon nations are depended on their foreign creditors rolling over
their loans they have advanced through the international banking system or
by purchasing Government Bonds. Their creditors have been seduced into
lending to them through complex financial products and high interest rates.
The English speaking world need the inflow of capital to be to finance their
current account deficits and maintain domestic liquidity. Without the inflow
of foreign capital their currencies risk collapsing, drying up liquidity and
economic activity in their markets. Countries such as the UK, USA, Australia
and New Zealand now face national bankruptcy. They will not be able to
sustain economic activity to generate the foreign exchange to enable them to
repay their enormous debts to their foreign creditors.

Many have compared the current crisis to that of the depression of the
thirties. However there are some significant differences. The problems that
prolonged the depression of the thirties were from a lack of liquidity in
the markets. This time, Central Banks have flooded the markets with money to
prop up the banking system and in a vain effort to stimulate economic
growth. This is eventually going to be disastrousness. Printing money in a
desperate effort to solve the current economic crisis will only make the
situation worse. The market was already flooded with money on a market that
lacked confidence and has declining productive output. The outcome will be a
lack of confidence in fiat money and a flight to gold or currencies that are
perceived as being safe.

At present the flow of money between banks has slowed because of a lack of
confidence. Yet this is not the real problem. The current situation has been
bought about as a result of continuing expanding the money supply in the
Anglo-Saxon economies while maintaining large current account deficits. This
has resulted in their banking systems are dependent on an inflow of capital
from countries operating with current account surpluses, especially China
and Japan. Printing money to finance payment of imports, dividends on
investments and interest payments cannot be sustained indefinitely. The
current crunch has come at a time when there has been a slow-down in the
global economy, partly due to the collapse of an over-heated housing market
in the West, making it more difficult for the indebted Anglo-Saxon nations
to service their debts.

We are now seeing a dramatic shift of wealth from the Anglo-Saxon nations to
Asia. Though the US dollar has recently appreciated against the Euro, this
will only be for a short time as the world becomes flooded with unwanted
dollars. The collapse of the US dollar and British pound will also drag down
those currencies that have been supported by the carry trade that is
dependent on the inflow of overseas capital to sustain their economic

The current crisis will have enormous global politically recupssions. It
will see the end of the ascendency of the western democracies. People will
be willing to accept authoritarian forms of government out of economic
necessity. Europe will experience the biggest political change. The current
crisis has shown the inability of divided leadership in Europe to react to a
crisis on the magnitude that has happened over the last couple of weeks.
This crisis will bring together the EU nations under a single leader and
political system.

The acceptance of a single EU leader with the power to take control of
restoring prosperity to the European economies will result in the State
taking a much greater role in how economies are managed. Already we are
seeing Governments taking over failed banks, and legislation is rapidly
being passed to give the State the authority to direct investment and
control the banking system. Once this confidence is restored the Euro will
quickly replace the US dollar as the international currency to finance
globally trade. As currencies collapse, the Euro will be accepted as an
alternative currency, so if will be widely accepted around the world as the
money of choice. This will enable the EU to have great economic and
political influence around the globe.

We will shortly see the collapse of the economies and currencies of the USA,
Canada, UK, Ireland, Australia and New Zealand. The speed of this collapse
is catching many by surprise. It will happen once their overseas investors
withdraw confidence in their economies and withdraw their capital. Without
being able to roll over their loans there will be a collapse of their
currencies and defaulting on their international debt obligations. They will
be blamed for the economic crisis that has engulfed the globe, bringing the
hatred of the whole world against them.

It will result in the Anglo-Saxon nations sink into abject poverty; their
people face starvation, disease, famine, and abject poverty. Their people
will suffer greatly, as their societies sink into anarchy, as law and order
breaks down, and society collapses. Their nations will be taken over by
their creditors as they try and recover their debts, and their people put
into slavery. It will be a time of great suffering and tribulation to its

One consequences of this calamity is that religious freedom as we have known
it will be greatly curtailed, as the State imposes its will upon those
subject to it.

How have the Anglo-Saxon nations got themselves into such a mess, when they
were the most powerful economic and military powers on earth? The current
situation is a direct result of rejecting the economic and moral laws God
has given our nations to ensure that we have a society of equity, and
prosperity, rather than what we have today – a society that is based on
greed, pursuit of the self, pleasure and rejection of moral and religious
values. It is a society bent on self-destruction, but few realize the
consequences of such actions.

Over the coming weeks I will write as events quickly unfold as we sink into
the darkness of economic abyss.

Bruce Porteous

bruceport@xtra. <mailto:bruceport% nz>


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