Today a legend in the business cautioned King World News that people should expect even greater chaos and fireworks in world markets in September and October. This piece also warns that this global collapse will be unlike anything in recorded history.
August 30 (King World News) – John Ing: “I am focused on the ramifications of the Chinese devaluation. There is a lot of misinformation about this move but the reality and the point of the exercise is a product of the ongoing race to the bottom as far as currencies. All of this is a result of unprecedented worldwide quantitative easing and liquidity….
Continue reading the John Ing interview below…
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“Central planners feel bold because there have been not yet been any major consequences other than roaring stock markets. The dollar is still the reserve currency of the world. However, many currencies are locked to it and those countries are having difficulties. Therefore, they are resorting to these devaluations in order to protect their economies.
The last country to participate, and that will be soon, will be the United States. So when you look at the ripple effect, what the Chinese are doing is very strategic. This is all part of a reserve currency plan. They already have a reserve currency and reserve swaps with 28 other countries. But what the Chinese want is for their currency to become like the euro and the yen. So the IMF discussions are also very important to China.
But the other important point is that the Chinese have something on the order of $4 trillion of foreign exchange reserves, of which more than $1 trillion is in U.S. Treasuries. The Chinese have devalued their currency because they have more than $1 trillion worth of obligations. There are two ways for them to pay those long-term obligations. One is to run down their foreign exchange reserves. So they chose to devalue.
Expect Even Greater Fireworks In September And October
In the process they have been drawing down their foreign exchange reserves by $400 billion. At the same time the Chinese have been dumping U.S. Treasuries. This has put pressure on yields. The market reaction this week has been to experience enormous destabilizing volatility, and this should lead to even greater fireworks as the markets head into September and October.
This Global Collapse Will Be Unlike Anything In Recorded History
KWN note: Meanwhile, in the United States it’s business as usual (see chart below).
One Hell Of A Collapse
King World News note continues: You can see from the chart above that despite the hiccup in 2008 – 2009, the central planners are determined to continue inflating the global Ponzi debt scheme. The problem is that everything eventually hits the wall. The recent turmoil in global markets suggests that the ability of the world to sustain such massive debt levels is coming to an end. If so, the Total Credit Market vs Share of GDP is in for one hell of a collapse. 
If you look at a simple reversion to the mean (the median point from the years 1840 – 1980), that would suggest a collapse from the current level (over 350%) to under 150%. That will be a much larger credit implosion than the one that triggered the Great Depression. Buckle up and buy physical gold because it will be a terrifying ride as holders of paper assets such as stocks and bonds get destroyed and the recent chaos in global markets is seen as just a warm-up.
Massive Starvation During The Last Great Depression
Russian researcher, Boris Borisov, in his article titled “The American Famine” estimated the victims of the financial crisis in the US at over seven million people. The researcher also directly compared the US events of 1932-1933 with Holodomor, or Famine, in the USSR during 1932-1933.
In the article, Borisov used the official data of the US Census Bureau. Having revised the number of the US population, birth and date rates, immigration and emigration, the researcher came to conclusion that the United States lost over seven million people during the famine of 1932-1933.
“According to the US statistics, the US lost not less than 8 million 553 thousand people from 1931 to 1940. Afterwards, population growth indices change twice instantly exactly between 1930-1931: the indices drop and stay on the same level for ten years. There can no explanation to this phenomenon found in the extensive text of the report by the US Department of Commerce “Statistical Abstract of the United States,” the author wrote.
The researcher points out the movement of population at this point: “A lot more people left the country than arrived during the 1930s – the difference is estimated at 93,309 people, whereas 2.960,782 people arrived in the country a decade earlier. Well, let’s correct the number of total demographic losses in the USA during the 1930s by 3,054 people.”
Analyzing the period of the Great Depression in the USA, the author notes a remarkable similarity with events taking place in the USSR during the 1930s. He even introduced a new term for the USA – defarming – an analogue to dispossession of wealthy farmers in the Soviet Union. “Few people know about five million American farmers (about a million families) whom banks ousted from them lands because of debts. The US government did not provide them with land, work, social aid, pension – nothing,” the article says.
“Every sixth American farmer was affected by famine. People were forced to leave their homes and go to nowhere without any money and any property. They found themselves in the middle of nowhere enveloped in massive unemployment, famine and gangsterism.”
The then state of affairs in the US society can be seen in Peter Jackson’s movie King Kong. The movie starts with scenes of the Great Depression and tells the story of an actress who did not eat for three days and tried to steal an apple from a street vendor. There is food in the city, but many people had no money to buy it in unemployment-paralyzed New York. People starve in the streets against the background of stores selling a variety of foodstuffs.
At the same time, the US government tried to get rid of redundant foodstuffs, which vendors could not sell. Market rules were observed strictly: unsold goods should always be categorized as redundant and they could not be given away to the poor because it could cause damage to businesses. A variety of methods was used to destroy redundant food. They burnt crops, drowned them in the ocean or plowed 10 million hectares of harvesting fields. “About 6.5 million pigs were killed at that time,” the researcher wrote.
The consequences of those policies were predictable, the author of the article wrote. “Here is what a child recollected about those years: “We changed our usual food for something for available. We used to eat bush leaves instead of cabbage. We ate frogs too. My mother and my older sister died during a year.” (Jack Griffin).”
So-called public works introduced by President Roosevelt became a salvation for a huge number of jobless and landless Americans. However, the salvation was only a phantom, Boris Borisov wrote. The works conducted under the aegis of the Public Works Administration and the Civil Works Administration were about building channels, roads or bridges in remote, wild and dangerous territories. Up to 3.3 million people were involved in those works at a time, whereas the total number of people amounted to 8.5 million, not to count prisoners.
“Conditions and death rate at those works are to be studied separately. A member of public works would make $30, and pay $25 of taxes from this amount. So a person could make only $5 for a month of hard work in malarial swamps.”
The conditions, under which people were working for food, could be compared to Stalin’s GULAG camp.
“The Public Works Administration (PWA) bore a striking resemblance to GULAG. The PWA was chaired by “American Beria,” the Secretary of Interior Affairs, Harold Ickes, who threw about two million people into camps for the unemployed youth,” Borisov wrote. “Harold LeClair Ickes (1874–1952) later interned USA’s ethnic Japanese in concentration camps. The first stage of the operation took only 72 hours (1941-1942).
“In 1940, the US population was supposed to make up at least 141.856 million people upon the preservation of previous demographic trends. As a matter of fact, the USA had the 131.409-strong population in 1940, of which only 3.054 million can be explained with changes in migration dynamics. Thus, 7.394,000 people simply do not exist as of 1940. There are no official arguments to explain the phenomenon,” Boris Borisov wrote.
***KWN has now released the extraordinary audio interview with Andrew Maguire, where he discusses the astonishing moves in the gold market by the bullion banks, why a global reset is imminent, and much more, and you can listen to it when it’s released by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO JUST RELEASED: The One Thing People Must Know About This Horrific Worldwide Panic CLICK HERE.
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