THE CRASH NEWS ARTICLES

REASONS FOR CRASH
People are placing too much money in an overvalued USA stock market, and putting their faith in companies which are losing money, in a hope that the companies will go well. Most of the money people are investing in the stock market is money they have borrowed. Personal debt has increased rapidly lately. Increasing debt is causing the strong growth and investment in shares. This is giving more power to the powerful who could crash the market anytime and gain complete power. However, globally the worlds economy is forecast to deteriorate, which probably will send the over valued Dow Jones crashing, when people suddenly wake up to the crisis. All these things could cause a domino effect of panic around the world, which could destroy the worlds economy. Investing is mostly about greed, and not about using money to inform people of the truth and do God's will. The stock market is overvalued and rigged. The increasing debt burden, and other disasters mean that a near crash is likely. A crash will only help the multinationals to gain greater control, as the small businesses and citizens will lose their property to banks and multinationals as a result. It is therefore certainly in the interest of world government initiators to deceive people into investing in banks and multinationals. People are misled into believing that the share market will continue to rise in the long term. However the bubble must burst and share prices will not recover when, according to the Bible, catastrophic events will destroy the earth's wealth. People will not be able to trade unless they accept a satanic mark on their right hand or forehead. A one world dictatorship and new monetary system will prevail. Therefore existing savings may be declared worthless. Deceiving people into investing money in multinationals and banks will give the powerful greater power, and they will soon take our money and not give it back. An individual would be better to withdraw it and use it for a good purpose, such as by helping those in need and informing people of the truth. (web reprint)

Look Out, The Great American Boom Can't Last End 1

U.s. Economic Facts of the Eighties
From TREASURES
= The U.S. BUDGET DEFICIT: In 1980, the U.S. government's accumulative debt for the previous 200 YEARS was $715 billion. It is now $2 trillion, a 200% INCREASE in only 6 YEARS! Interest payments alone on this debt will cost $150 billion in 1987, or 15% of total federal spending, the third largest item on the federal budget besides WAR and SOCIAL SECURITY!
= The U.S. is now the WORLD'S BIGGEST DEBTOR! Five years ago America owned $140 billion more abroad than foreigners owned in the U.S., but now FOREIGN investors own $250 billion more of AMERICA than America owns abroad! Foreigners' assets in the U.S. total $1.2 trillion, most of which can be withdrawn quickly if there is a loss of confidence in the U.S. economy, leaving the U.S. with NO WAY to finance its deficit! The result--World economic depression!--The greatest Crash the World has ever known! The U.S. is literally being held HOSTAGE to the whims of FOREIGN investors!
= U.S. TRADE DEFICIT: The 1986 trade deficit was $170 billion, the LARGEST in history! In other words, the U.S. IMPORTED $170 billion MORE of FOREIGN goods than it EXPORTED American goods.
Third World debt topped $1 trillion recently. Many debtor countries spend up to 50% of their foreign exchange just to make interest payments. For some, these repayments are twice as heavy as the huge war reparations forced on Germany after World War 1. TRS15.
= Latin America has already endured a Depression longer than that of the 1930's, with no relief in sight. In a recent study, Lord Lever warned that 9 U.S. banks are responsible for 65% of all U.S. bank loans to the Third World. If Brazil, Mexico or Argentina were to withhold payment to them for just one year, it would wipe out 20% of their worth and trigger a panic amongst other banks! "DEFAULT, on either political or economic grounds, cannot be ruled out."

The Asian Crash Continues
End Magazine
In one day last July, the Thai baht plunged more than 12% in value against the U.S. dollar. Other Asian currencies followed suit. In the Philippines, Malaysia, Indonesia and later South Korea, government officials were forced to devalue their currencies. That triggered a region-wide crisis, in which stock markets lost as much as 35% of their value, inflated real estate prices fell through the floor, banks collapsed, and hundreds of thousands of Southeast Asians, rich and poor, lost their jobs and fortunes.
South Korea, its economy on the brink of total collapse, accepted a $60 billion international bailout from the IMF (with many strings attached). Indonesia and Thailand signed on to a similar $40 billion bailout package, while Malaysia has so far refused international aid, correctly fearing that it would lead to foreign control over its economy. The IMF and the big money boys pull the rug out from under countries' economies, then loan them billions of dollars to save them from complete destruction--on the condition that they get to dictate the rules by which their economies will be run in the future! The following articles examine the continuing--and worsening--effects of this crash.

(The Times) Malaysia is threatening to send home half of its two million foreign workers. Police officials are said to be worried about the possible effects of thousands of unemployed foreign workers roaming the streets. In South Korea, anti-foreign sentiment is on the rise, and 270,000 guest workers may be sent home.
In China, the Communist Party said it would start selling off its tens of thousands of loss-making state-run enterprises, a scheme that could add to instability by making tens of millions more Chinese unemployed.

(International Herald Tribune)
Currencies in Indonesia, Thailand, Malaysia and the Philippines have tumbled to record lows, bringing closer the specter of large-scale corporate defaults.
Analysts said that the downward spiral in currency values was undermining confidence in the ability of governments to restore stability.
"We have seen a major wave of foreign capital flight from Southeast Asia," said Simon Ogus, chief economist for Asia in the Hong Kong office of SBC Warburg Dillon Read. "Now we are seeing domestic capital flight. People just don't trust their policymakers in sorting this mess out."
Some bankers and economists said that if the downward currency spiral continued, Indonesia and Thailand--the region's two most heavily indebted nations--might be forced to declare a moratorium on repaying private-sector debts, which total more than $150 billion, to save many companies from going bust. Creditors can either agree to roll over their loans or face outright default.

(New York Times)
Many experts on Asia worry that growing economic frustrations risk provoking political and social upheavals. The economic crisis has already toppled one government, Thailand's, and some analysts believe that more could follow. "Leaders are generally vulnerable across the region," said William H. Overholt, a Hong Kong-based managing director of Bankers Trust Co. Then there is the giant of the region, China--a domino that towers so high that it could produce a crash whose political, social and economic consequences would shake the world.

(Reuters)
By imposing harsh terms on financial aid to troubled Asian nations, the United States was forcing into submission economic rivals in the region, the People's Daily newspaper said. "By giving help, [the U.S.] is forcing East Asia into submission, promoting the U.S. economic and political model, and easing East Asia's threat to the U.S. economy."

(Reuters)
Prime Minister Mahathir Mohamad of Malaysia exhorted his compatriots to join together to stem the slide of the ringgit by refraining from seeking refuge in more stable foreign currencies. He said Malaysia risked being "recolonized" by foreign powers if it failed to act. "The fall in our currency's value has made us poorer, exposing us to the possibility of being controlled by foreign powers. If this happens, we will lose the freedom to run our country's economy and with it our political freedom also. In short, we will be recolonized indirectly," he said.

LONDON (Reuters) -- U.S. financier George Soros said the international financial system was suffering a systemic breakdown thanks to the crisis in Southeast Asia.
Writing in Britain's Financial Times newspaper, the multi-billionaire said the financial community should grab the opportunity to set up a new global authority to guarantee international loans for a fee.
"What started out as a minor imbalance (in Asia) has become a much bigger one that threatens to engulf not only international credit but also international trade. We are on the verge of worldwide deflation."

HAVANA (Reuters) Cuban President Fidel Castro has warned his parliament that "the world is on the brink of a crisis worse than that of 1929 caused by unscrupulous speculative practices and globalization."
Castro denounced "the financial practices of big speculators who, without producing any commodities, take advantage of the economic weaknesses of less developed nations to earn million of dollars in financial or stock market operations, leading to the virtual bankruptcy of those countries. They are like wolves, attacking the weakest animals of the pack."

(Washington Post Service) The Almighty Dollar is back. With Asian financial markets in turmoil, Europe in an economic funk and the price of just about everything falling around the world, it seems everyone wants to have and hold dollars. Once investors fled to gold, as they had for centuries. But gold prices today are at their lowest levels in 17 years after having declined 25 percent over the past year.

(Los Angeles Times) South Korea is in serious trouble, and personal dreams have been shattered. Thus the hiking trails at Pukhansan National Park have become a sort of hide-out for newly unemployed businessmen. Too embarrassed to tell their families the bad news, the men continue to leave their homes each morning dressed in work attire but head for the mountains instead of their offices.
The human toll can also be measured by the increase in suicide and crimes such as theft, burglary and kidnapping, according to local newspapers. By one count, business executives are killing themselves at a rate of one a day.
These harsh new times are being dubbed the "IMF era," just as the rising lawlessness is sometimes characterized as "IMF crime"--reflecting the fact that some Koreans blame it not on their own national policies but on the reforms demanded by the IMF to address the country's woes.

(New York Times News Service) Korea is as proud and prickly a nation as any on the globe. For an A-plus student like South Korea to be sent to the corner with what feels like a dunce cap is a torture more psychological than economic, and the heartbreak on the frosty streets of Seoul is almost palpable.
This sense of humiliation may have far-reaching consequences. There is a deep anger in South Korea at Washington because of the conditions imposed as part of the bail-out.
In most of Asia the anxiety has been focused on personal fears about unemployment, tumbling stock prices, lost savings. In South Korea, the sense of injury encompasses all that but is centered on something broader and vaguer--the sting to national honor, the fear that Korea itself has lost face before the world.

(New York Times News Service) Six weeks ago, the seamstresses at the PAR Garment Factory on the outskirts of Bangkok arrived at work to find a sign on the gate that read: "The company is closed."
Uniformed guards told them to go home. The factory was bankrupt. But many of the workers--migrants from poor rural areas--had nowhere else to go. So they stayed, sleeping on straw mats on the sidewalk by the factory gate, waiting for some stroke of good fortune they know will never come.
"We can't find work at another factory because other factories are closing too," said Song Siwang, a 37-year-old seamstress. "And we don't want to go back to our home villages because there is no work there either." Poor workers throughout Southeast Asia in growing numbers are expected to lose their jobs in the months to come, some of the last to benefit and the first to suffer in the region's economic rise and fall.

(Forbes, June 20) For half a century the U.S. dollar has been the safe haven for the world. But for many foreign investors it's starting to look dangerous.
The dollar should have rallied this year. Instead it has faltered badly. There is a growing loss of confidence in the dollar and dollar assets.
The dollar has continued its agonizing, slow-motion descent against the German mark and other European currencies. The dollar falls steadily against the DM even as the Bundesbank repeatedly cuts German interest rates and the Fed simultaneously pushes U.S. rates higher. This unusual behavior is shocking to currency analysts.
What ails the dollar? Why are people losing confidence in it? The most important point to bear in mind is that the U.S. runs a huge current account deficit--over $100 billion in 1993. The deficit will be even larger this year. So unless there is a net capital inflow into dollar assets in excess of $8.5 billion every month, the dollar will depreciate under the weight of the deficit.
The current account deficit can be funded two ways: either by foreign private investors or central bankers. But there are important constraints that limit both investors and bankers. For the central bankers, there are limitations on the level of dollar reserves that they are willing to hold.
As for private investors, they must first be persuaded that the U.S. is an attractive place to invest capital. These days the U.S. isn't so attractive, with both stock and bond markets extremely volatile. Returns on most U.S. financial assets are low, after adjusting for inflation and taxes. President Clinton's appointments to the Federal Reserve Board have cost the central bank credibility. And the Clinton Administration's glaring political problems have weakened the government's ability to make policy.
Any one of these factors could discourage foreigners. Collectively they add up to a real turnoff.
Thus far, foreign investors have shifted out of dollars and back into their domestic currencies only in a very modest way, but the danger is that this trickle could become a flood--and there is nothing the central banks could do to stop it.
If investors around the world start [withdrawing their money from U.S. investments], the dollar could be in even worse trouble. That's because the potential supply of dollars is far greater than the demand. U.S. economic output accounts for only about 22% of global production, yet 65% of the world's currency reserves are held in dollars. This is a carryover from the dominant role in world trade that the U.S. held after World War II, but the dollar's role as a reserve currency has not sufficiently been adjusted to reflect the changing economic status of Germany and Japan. Put more simply, too many people hold too many dollars, given the relative size and condition of the U.S. economy.
All of this poses an enormous risk to the smooth functioning of the global financial system. Currently, foreigners hold approximately $2.5 trillion worth of U.S. assets. Imagine the chaos that would ensue if private investors reallocated 10%, say, of their dollar assets to alternative currencies. The flood of capital flowing out of dollars would overwhelm the central banks' ability to intervene. No telling how low the dollar could go. Whatever you do, exercise extreme caution in holding dollars.

(AP, July 2) Leaders of the world's seven richest industrial countries will gather in Naples for their annual summit searching for solutions to record global unemployment and trying to figure out what, if anything, they can do to halt the downward spiral of the dollar ... that has unsettled financial markets around the world.
The dollar's weakness has been blamed in part on the trade gap. With the United States unable to narrow a $59.3 billion trade deficit with Japan, currency traders have been bidding the dollar lower on the belief that a weaker U.S. currency is the only way out of America's trade problems.
A weaker dollar makes U.S. products more competitive overseas but it also raises serious risks of destabilizing American financial markets if worried foreigners start cashing in their dollar-denominated stocks and bonds.
Unemployment in the industrial world, even with growth picking up, is forecast to hit a record 35.3 million this year.

(U.S.News and World Report, July 4) "A strong dollar means a strong America," Ronald Reagan proclaimed in the 1980s when the greenback was riding high. But last week, the dollar sank against the German mark and hit a postwar low against the Japanese yen. Some traders crowed that the slide reflected American weakness--everything from doubts about Bill Clinton's competence to fears about renewed inflation.
If the U.S. Federal Reserve fails to act, the risk is that the dollar could break into a dangerous free fall that could further undermine investors' confidence, curb recoveries in Europe and Japan and disrupt world economic growth. Both U.S. policy makers and currency market players clearly face some tension-ridden days ahead.

(UPI, July 5) The Japan Times commented editorially on the weakening of the U.S. dollar against the Japanese yen, saying in part: "The underlying weakness of the dollar is again coming to the fore. The weak dollar reflects the long-term decline of relative U.S. economic strength. The greenback has been losing ground not only against the yen but also against other major currencies. It has experienced recurring crises against a backdrop of both ballooning U.S. trade and budget deficits.
"The latest dollar crisis can be seen as an investors' no-confidence vote in the long-term health of the U.S. economy. It also seems to manifest a lack of their trust in the economic policy of the administration of President Bill Clinton."

(Reuters, July 7) "We have a slow-motion train wreck on our markets," said Christopher Potts, an economist with Banque Indosuez in Paris. Describing the situation as quite dangerous, he added: "The dollar is teetering on the verge of a real crisis. If nothing is done by Sunday night, it's going to get sold off in a big way."
"If no concerted action is taken, it is possible that the haemorrhage in bonds will continue," said Malcolm Roberts of Union Bank of Switzerland in London.
He estimates that global investors have sold the equivalent of $600 billion worth of bonds already this year and said the possibility of a re-run of 1987, when a market crash panicked central banks into slashing interest rates, cannot be ruled out.

(Reuters, July 8) The dollar has slumped to 50-year lows against the Japanese yen and there are fears currency turbulence could eventually precipitate the industrial world back into recession.
Hastening the dollar's slide were comments from President Clinton, at a meeting in Naples, Italy, with other Group of Seven leaders, suggesting its current level against the mark was not low by historical standards. The remarks led traders to believe the Clinton administration would not act to prevent the dollar's slide.

(Reuters, July 10) The dollar will continue to skim the treetops and is in danger of crashing, with comments from the G7 giving the impression that the authorities are not exactly wrestling with the joystick, financial analysts said.
The Group of Seven summit has ended with the same old platitudes being trotted out and with no apparent change to the existing stance.
"The dollar is going to continue to be in trouble on the back of this," said David Brown, economist at Tokai Bank. "It's a case of all words and no action, and they are not even strong words," he added.
The last bout of visible concerted intervention was on June 24 when the central banks tossed the dollar a two to three billion dollar lifeline. But it was a dismal failure. Within 30 minutes, the dollar was lower than before the central banks intervened.
The main problem is that any central bank action is dwarfed by the trillion dollar a day foreign exchange market. But perhaps more seriously, the market believes the G7 are not united.

(Reuters, July 11) The dollar resumed its relentless downward spiral on Monday, hitting another post-World-War-Two low against the yen after world leaders failed to put active support behind it. The U.S. currency plummeted in Europe to its latest trough at 97.33 yen, new 20-month lows on the mark and Swiss franc, and a 13-month nadir against sterling. Analysts said currently the issue was not whether President Bill Clinton has a dollar policy or not, it was the simple fact that there are simply no dollar denominated assets worth buying.

(Reuters, July 12) Central banks are standing idly by as the foreign exchange markets beat up the dollar, and there is a chance they will simply walk away and leave traders to it, financial analysts said.
If there is no move by the bank to stop the rot, the dollar will undoubtedly continue to slide throughout the summer.

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