THE CRISIS EQUATION
by Brother Gregory Williams
February 6, 2011
Are we preaching Doom and Gloom? Absolutely not. But like Patrick Henry we thought you might be “willing to know the whole truth; to know the worst; and to provide for it.” It is also not going to be gloom and doom because we are going to share with you the tried and true solution that has worked for society many times when man made the same foolish mistakes we see going on today. For those who can handle the truth and are willing to do something about it the solution can provide what you need and produce a better and more fruitful society in the process.
Meredith Whitney, whose economic forecasts proved to be some of the most accurate predictions of the previous and present financial crises of this last decade does not see a light at the end of the tunnel but believes that “the tunnel is about to collapse.” While some economists are suggesting a future of slow growth based on what they have seen they seem to be turning a blind eye to all the problems looming on the near horizon.
When the $240 billion from the Recovery Act runs out, states and local governments everywhere, with billions of dollars of unfunded benefits and services, overextended debt obligation and reduced revenue, will began to make another wave of cuts and layoffs or default.
States are trying to get a law passed that allows them to declare bankruptcy. This will kill the power of the state employee unions. States like New Jersey, New York, West Virginia, Delaware, Ohio, Louisiana, Illinois and others have reached a point of no return. The same thing we have seen in Greece, Britain and Ireland and will be seeing in Portugal, Spain and Italy will have to be faced in the states. Benefits will be slashed, millions of people including government workers may lose their jobs, and whatever people have left in their savings will be vanquished by a deluge of inflation.
Meredith and others see that banks are also facing much, much greater credit losses and 2.7 trillion dollars will be cut from the credit lines of Americans. She is convinced that we are entering the “biggest financial crisis in history”.