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The Coming Bust

 
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User ID: 128508
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08/10/2006 07:12 PM
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The Coming Bust
The Coming Bust
[link to www.rense.com]

The US Economy - An
Interesting Conversation
By George Whitehurst Berry
8-8-6

I recently had dinner at an excellent Chinese restaurant. An attractive young lady came in and sat down in the chair next to mine and was immediately joined by a man who looked to be in his mid-forties. He was trying to impress her with his talk about his Real Estate Brokerage Business and all the short term profits he had made buying and selling Real Estate.

He crowed that he had bought a house for $200,000 and, after holding it a relatively short time, sold it for $600,000. He said he did not want to go to Law School, because, although he "knew" he could do it (Practice Law) and although practicing law was a family tradition, he could make so much more with his brokerage business.

He opined that real estate attorneys received, on average, only $750 per title search (his figures), and that was so much less that he was making.

He said real estate business and finance were something he "really knew", and that he had just bought a 5,500 square foot house for a mere $400,000 in North Carolina that in three years or less would have to be worth well over a million, at least.

I recalled that when, in 2000, I correctly projected that the Stock Market was topping out, I had heard similar conversations about stocks. When a Bull Market Cycle is in the "Blow-Off" or "Exhaustion" Stage, you will hear these kinds of conversations commonly.

When Jeff Rense interviewed me on September 8th, 2005, I put the coming REAL ESTATE CRASH within the context of the fact that we are now in the worst DEBT BUBBLE in U.S. history.

Perhaps I could have interrupted the broker's conversation with the young lady and asked him if, in fact, he "really did know" the Real Estate Business, was he aware of how Real Estate Debt increases to the breaking point through the Debt Money System? Remember, in 1999 and 2000, when many financial advisers were saying that people who bought bonds or CDs were "missing the boat because they could all retire early with double digit returns from Mutual Funds?

I never did explain to the Real Estate Broker that in The Federal Reserve Debt Money System, Banks are allowed to CREATE MONEY! - they don't just lend money that already exists. They create money from thin air!

Through a process called the Multiplier, they are able to lend money that literally did not exist before they loaned it. The Multiplier mechanics are explained in any basic Economics Text Book. This is exactly what, over several decades, creates the DEBT BUBBLE like we have now.

What is NEVER explained in college Economics textbooks is this: When banks create money out of nothing in the form of loans, they create only the Principal.

HOWEVER, THEY NEVER CREATE THE INTEREST TO PAY BACK ON THE PRINCIPAL!

The first DEBT BUBBLE in the last 100 years was the 1920s to 1930s Boom and Bust cycle.

The second DEBT BUBBLE is today. Right now.

Under the DEBT MONEY SYSTEM, when the money supply is expanded by "X", the debt is simultaneously expanded by ("X" plus "Y")...where "Y" is the INTEREST charged on loans. Because ("X" plus "Y") is greater than "X", THE DEBT CAN NEVER BE PAID. This brings us to the Old International Bankers, Trick wherein the Money Supply is expanded greatly in a short period of time. This produces a temporary illusion of prosperity - just like in the "Roaring 20s" when Stocks and Real Estate soared.

Now the trap is set because "X" plus "Y" is greater than "X", so within the money expansion phase there is an inherent DEFLATIONARY TICKING TIME BOMB.

All the International Bankers have to do once the trap is set is to call the loans in, and THE TRAP SPRINGS SHUT.

That,s why the Roaring 20s were followed by the GREAT DEPRESSION. Loans were called in and THE MONEY SUPPLY WAS CONTRACTED VIOLENTLY and STOCKS and REAL ESTATE CRASHED.

We have already had the money expansion phase in DEBT BUBBLE #2. That's why we are, I believe, on the verge of what could be the BIGGEST REAL ESTATE CRASH IN HISTORY.

Perhaps I should have said something to the rather arrogant Real Estate Broker, but I chose to enjoy my dinner in silence.

BON APPETIT...

George Whitehurst Berry
< [link to www.thegoldenshield.org]
Anonymous Coward
User ID: 96679
United States
08/10/2006 07:25 PM
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Re: The Coming Bust
wow you must have been really bored to have listen to so much of this conversation.....get a life.... give
shibumi2

User ID: 74188
United States
08/10/2006 07:31 PM
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Re: The Coming Bust
not only that, but your "facts" are incorrect.

they probably wondered why you were, like, listening to them and stuff.





GLP