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ZetaTalk: Paper Promise
written Sep 17, 2004

There are many rumors of a financial meltdown especially in October. The Zetas have predicted this in past statements. Do they want to comment about the next 30 days or so as to what economically may unfold?

The banking system or any paper money system is built on confidence, confidence that a note will be paid out in something solid, something other than a paper promise, which is what all money systems and bank notes are. Centuries past, when the world was operating primarily on the barter system, such promises were few and were backed by gold or silver, or land, or a herd of horses or cows, something solid. Villages and towns, farmers and those in the trades, all operated primarily by barter, a cabinet built by a carpenter and payment in a quarter of a slaughtered hog, a bushel of apples getting a tooth pulled by a dentist. Financial sophistication developed slowly, based on the growing confidence that the backer of a money system, a paper promise, could be counted upon to deliver something solid. Thus it was, until recently, that gold was considered the backing. When the press to use paper money to support a debtor economy ran beyond the supply of gold, the money systems were taken off the gold standard. In the past, a debtor could put his house and property up as backing for a loan, his herd, perhaps even his pending harvest of wheat, but could not get credit unless he had something solid as collateral. But today it is the norm for every person, without substance to his name, to have access to credit cards that allow him to go into debt beyond his ability to repay. The debtor is given credit on the assumption that he will repay. The funds he is loaned are assumed to have worth. And all pass paper promises around as though these were based on things that could be brought forth upon demand.

As can be seen when whole countries default on the paper money they float out under their flag, the value of a dollar can collapse quickly. Argentina is a case in point, the money becoming worthless almost overnight. In days past when banks and paper money were closely tied to things, such a panic would result in the banks who had loaned money to farmers demanding payment in things, and any who deposited savings in the banks demanding payment in things, so that at the end of the shuffle those having made savings deposits would find themselves with a herd of cattle or some acreage, rather than paper money. When money became unhinged from solid backing, speculation crept in, resulting in inflated stocks, loans without collateral, a pyramid scheme that is a house of cards that would collapse with few left after the shuffle with anything solid in their hands. Most would be left holding worthless notes, uncollectable, standing atop a deep pile of bankruptcies. During the Great Depression, it was no secret that banks were in default, farmers and corporations bankrupt, but this was ignored as demanding payment that could not be produced would only put properties and empty buildings in the hands of banks who could not sell them as the market itself was dead. So a bankrupt status was ignored, and all floated along until life came back into the system and payments began to be made again, extension after extension made. This is what is occurring today, among countries and creditors and banking entities, to avoid a breach of confidence that would start a panic in the world at large. Say nothing, make no demands for payment in things, give extension after extension, and the house of cards, built on paper promises, stands. This assumes cooperation among all parties, and where this is holding today, as it did during the Great Depression, there is a difference.

During the Great Depression, the world was not beset with natural disaster after natural disaster, as is starting to occur today. Commerce, trade, was reduced due to lack of confidence but at the base, the economies were solid and recovery followed renewed confidence. Today, all countries are in a crisis affecting their base economies. We mentioned that Crop Failure would follow the irregular weather, and it did. But buildings collapsing in earthquakes, trains running off suddenly twisted tracks, factories exploding as gas lines breach, and storms tearing at coastlines without remorse do more than represent an opportunity to rebuild. They represent insurance companies unable to pay for rebuilding, factories laying off workers or unable to function, and distribution of goods blocked. In other words, paralysis, rather than a fever of economic activity, results. When those at the top of the financial pile, or those whom they command, see the structure starting to become a pile of bankruptcies likely to tie up their ability to reach down and grab a thing, so they will not be left with worthless paper promises, all want to move first in order to get a thing before the other financial giants beat them to it. They are holding notes, and at the base these notes translate to land, buildings, inventories, oil deposits, ships, food stocks, herds, and virtual slavery of those who cannot pay but need to eat and have shelter. Indentured servitude, returned. We have mentioned that the pending pole shift has resulted in Leveling Wars between the Puppet Masters and their restless Puppets seeking to become opportunists during times when their masters might be unable to retain control. These wars will result in the pact of cooperation between creditor countries and corporations and those who own them cracking. Fail to cooperate and I’ll call your notes due, and while you struggle under a rain of failures I will pluck what I wish from the pool and emerge owning you once again, but with you wasted and discredited, is the threat.

Thus, where banks default because those they have loaned money to are going into bankruptcies, and where at base this is due to collapsing economies struggling with the effect of the current Earth changes, natural disasters, there is also the element of warfare among the Puppet Masters and their Puppets. To the extent that the rebellious Puppets are the political power in a country, that country may find itself fiscally undermined and corruption within that power structure exposed. To the extent that the rebellious Puppets are corporate heads, those corporate heads will find themselves unable to get the loans they need to continue, and forced into bankruptcy court. To the extent that a Puppet Master, and there are many, senses that the enemy is another Puppet Master, the property holdings of that Master will be undermined, whether this includes a country, a corporation, or financial holdings such as bonds. Watch closely, during this war of the titans in the financial realm, and you will see the swords flash and parry.

Signs of the Times #1119
BofA isn't likely to face big losses [Sep 14] Bank of America Corp. is a major lender and a credit card partner with US Airways, but does not look to be a big loser in the airline's bankruptcy filing. [and from another source] The ongoing economic/financial collapse continues. The world's central banks have been in discussion, since Sept. 11, 2001, about this onrushing problem. Internally, secretly, many banks are going into bankruptcy, and the people who know about this do not want this information to come to the surface into the public. Part of this scandal has to do with one or more of the following: the housing market, derivatives and/or an immense default by someone or company or country! It is all linked to the banks. [and from another source] Lots of significant economists agree that there is a major major correction coming. Citibank is one most at risk. Soros, Buffet and Gates are investing for a crash. [and from another source] Let´s see if we can name some of the chief variables to the economy. Inflation, recession, real estate bubble burst, derivative market, stock market, bond market (the world stops buying bonds), and the list goes on and on. We’re on the knife edge and its only a matter of time. [and from another source] Lets see, the various Airlines are laying of 10,000 people. ESD is laying off 15,000 nationwide and a lot of Banks are consolidating or over their heads in Monopoly Money.