Kim Andrew Lincoln's Blog: Predictions for the Economy in 2010 & Beyond

The Story for 2010

The story for 2010 will be a tale of two economies – the real and the unreal.

It is the year when all that has been hidden is exposed. A year when the curtains fall on the Power Elite as the spotlight of public scrutiny shines into every dark corner of their illusory and shadowy world. It is the year when the full extent of their lies and deceptions relating to the financial system are revealed.

For the Power Elite it will be a year of judgement for the harm they have done. And for the rest of us it will be the year for facing up to the reality that we too have been living in a dream world and that we must now wake up and acknowledge that any economic system that tries to serve the few at the expense of the many will not function properly or survive, because it is in opposition to the Universal Laws of Life.

2010 is the year when we must take responsibility for what we have allowed to happen on our watch. And what we have created – through the filter of our mistaken belief systems - we must uncreate.

It is the year when we realise that what we have lost and the losses to come are the hard lessons in the school of life that result from us not cleaving the real from the unreal and creating an economy that empowers all.

But the good news is that out of the economic wreckage we can lay new foundations, which if they are set in the bedrock of reality - meaning that they are constructed in accordance with the Universal Laws - will enable us to create unparalleled abundance as our enslavement ends and we move into the Aquarian Age of Freedom and Prosperity. Our planet is stepping up a gear into an Age of Enlightenment. We must either move with it, or be left behind.

What’s this about?

In this article I comment on the current financial crisis from a ‘different perspective’ and explain what I think is likely to happen with the economy in 2010.

I reveal the secrets of the ‘fractional reserve’ banking system and offer my thoughts on the forthcoming General Election - including some words of advice for the next Prime Minister in his capacity as First Lord of the Treasury.

And, I outline the core ‘Money Laws’ which must be observed if we are to create ‘A Golden Age Economy’.

This article builds upon many previous ones I have written that have attempted to give a deeper understanding of the real causes of this economic crisis, which you will find on my website: www.kalincolninvestments.co.uk and blog: http://kimandrewlincolnsblog.blogspot.com

For a list of these articles and where to find them, please refer to the ‘Further Reading’ section on the last page of this document.

NB: I am currently writing a book entitled: ‘A Golden Age Economy’ where all of my ideas on how to create sustainable prosperity for everyone will be explored in great detail.

Life Lessons for the Economy

The great spiritual teachers say that planet Earth is a schoolroom where - over many lifetimes - we learn the Universal Laws of Life through the experience of living in physical bodies in the material realm.

Before each embodiment we receive help in drawing up a life plan (‘divine plan’) which details everything we are intended to learn in our next incarnation on Earth. The overall plan is that after many lifetimes we will have mastered life’s key lessons and balanced our karma, meaning that we will have repaid our debts to those we have wronged.

And by the time this cycle of reincarnations ends, the immaculate concept is that our consciousness will have been raised to the ‘Christ’ level whereby we will qualify to ascend permanently to the spiritual realms of heaven as Moses, Jesus, Buddha, Krishna and countless others have done before.

How long this process takes depends on how well we acquit ourselves while we are here on Earth, meaning the extent to which we either qualify or misqualify the ‘talents’ we are given. If we live our lives in accordance with the Universal Laws then our progress will be swift. But if we exercise our right (under the Law of Free Will) to transgress those laws then our learning experience will be via the school of hard knocks. So that if we continue to work below the level of our true potential by following the path that ‘seems right unto man‘, then the lessons will keep coming back to us with ever increasing force until we say ‘enough is enough’ and voluntarily make a better life choice.

It is said that ‘what you resist, persists’. And when we resist our lives will inevitably be filled with struggle and strife.

And so it is with the economy.

When we work in harmony with the Universal Laws by pursuing economic policies that raise all life the Universe will stand behind us and multiply what we do, so that everyone who ‘multiplies their talents’ will receive the abundance (material and otherwise) that the Creator wants us to have.

If, on the other hand, we decide to go against the Universal Laws, we can expect to reap what we sow – though the repercussions of what we sow - may be a long time coming back to us. This is because the Creator will give us time to experiment by making wrong decisions in the hope that we will eventually learn from our mistakes and thus make better future choices - though our ‘imperfect choices’ may take many ‘lifetimes’ to correct.

Those souls who refuse to step onto the path of ‘righteousness’ and thus raise their consciousness will after an allotted time - and after every effort has been made by their ‘guides’ in heaven to turn them around - be erased by the Creator as individual spirit beings in what is known as the ‘second death’.

These teachings also state that any structure we create whether it be physical, like a building, or intangible, like an economic policy, cannot survive unless it is created in accordance with the Universal Laws by which all things are made.

What we have been reaping recently in the financial world and economy is the cumulative effect of many imperfect decisions made in direct opposition to the Universal Laws that over the last three hundred years have perverted the intent and purpose for which money was created, which was and is, as a medium of exchange and store of future value.

This downward spiral started when the Bank of England (BoE) was founded in 1694 and the ‘something for nothing’ culture of lending money for interest (usury) began in earnest and more specifically to finance a war with France.

Since then this ‘tower of Babel’ has be extended beyond the simple, but ingenious deceit of usury, to include a vast array of highly complex financial instruments that have further perverted, distorted and debased the financial system to the point where it is now teetering on the verge of collapse.

The most significant additions since 1694 have been ‘fractional reserve’ lending, invented by A M Rothschild two centuries ago, and more recently, trading in the financial instruments known as ‘derivatives’, which triggered the bankruptcy of Lehman Bros in September 2008, the collapse of credit markets and the subsequent stock market fall.

And yet despite the fact that we are experiencing the worst economic crisis since the Great Depression our government, the central bank (Bank of England) and the financial regulator (Financial Services Authority) have done nothing to address the root cause of the problem (fractional reserve lending) and thereby stopping for all time the economic struggle and strife that keeps coming back to us with ever increasing intensity.

Clearly those in charge have not learned from past mistakes because nothing of consequence has changed.

The bankers are still in control and have become bolder in their risk taking because they now think that they are ‘too big to fail’ and that the taxpayer will keep bailing them out. And if that was not bad enough they are now planning to pay themselves even bigger bonuses and thus guaranteeing that the lesson will come back to them (and us) with even greater force. And when it does, no amount of political posturing, money printing and manipulation of asset prices by the government, banks and investment houses will work because the next crash will be the one that brings all of these imperfect structures down.

If we live by the sword we will die by the sword and if we live by debt we will die by debt

What has 2012 got to do with this Economic Crisis...?

In both scientific and spiritual circles there is an acceptance of the existence of cosmic cycles, which during the period when one ends and another begins can bring about significant changes in the level of consciousness of a planet and its people.

Consciousness is extremely important because:

• ‘We become what we focus our intention on’

• ‘We create our own reality’

• ‘What we send out comes back us’

• ‘The Universe acts like a mirror that reflects back to us everything that we think, feel, say and do’

The length of these cycles can vary enormously. And the longer they are, the greater the changes that will occur during the transition period.

When one cycle ends and another begins we experience ‘growing pains’ because in order to transcend ourselves by expanding our awareness we must periodically ‘shed the skin’ of our old selves before we can step up the ladder of consciousness. And, if we resist this process we will be subject to more ‘struggle and strife’ via the school of hard knocks.

It is said by the ‘spiritual masters’ that the ancient Mayan people of Mexico were seasoned space travellers who came here many thousands of years ago bringing with them detailed knowledge of these cosmic cycles. They developed an accurate calendar that recorded when these cosmic cycles were due to take place.

But intriguingly, their calendar finished on 21/12/2012.

Now those people who wish to spread fear and panic among the population have interpreted this to mean that 21/12/2012 is the date when all physical life on Earth ends, as depicted in the movie ‘2012’, which is being released on DVD on 29/3/2010. And whilst I accept that this interpretation could be right - as we have the technology to physically destroy the planet – I think most people would agree with me that it is highly unlikely.

So what else could it mean?

Well, my view is that it signifies a time of great change and upheaval. A time (and that time is now) when we are being given the opportunity to replace the old ways of running the economy with new and better ways of working that are in alignment with the Universal Laws relating to abundance and wealth creation.

If we decide to raise our game, the power Elite, who are the architects of the old ways, will find that as we take our power back - by taking responsibility for ourselves - their power, which was the power we gave them, will wane and the *New World Order agenda that they have been fighting to introduce will die.

The other possibility is the one portrayed in the ‘Book of Revelations’ in the Bible that paints a picture with very striking imagery of what living in a New World Order world would be like, which according to my research, is everything that the Age of Freedom is not. I am convinced that this work of prophecy was intended to serve as a warning to us of what may well if happen if we do not wake up and transcend the consciousness of the old ways that we now know do not work.

The Mayans calculated that 21/12/2012 marked the end of a major 25,000 year cosmic cycle when our planet along with the rest of the universe shifts up a gear into a higher dimension of consciousness.

I think that this will to be an uncomfortable time for those who resist the changes that need to happen, because resistance creates the sort of turmoil that we have been experiencing in the economy and natural world over the last decade.

You may remember the 1960’s the pop group: ‘The Mammas and the Pappas’ and their hit song where they sang about ‘....the dawning of the Age of Aquarius’, well 21/12/2012 is the date when this New Age of Enlightenment officially begins.

So what has this got to do with the economic crisis...?

Well everything really, because if you look at the economic system in this country and the world at large you cannot fail to see that there is something very wrong with it, in that it is not delivering the good life to all people.

The Power Elite have designed the system so that they get all the choice cuts of meat, while the masses are forced to fight among themselves for the scraps.

The perverted structures that the Power Elite have put in place were designed specifically to increase their wealth and privilege at the expense of everyone else, while ensuring that the gulf between rich and poor grows ever wider.

This economic model is based on the lower consciousness of the age that is now ending. It is a model that is collapsing before our eyes – despite some appearances to the contrary - and in spite of the best efforts of the Power Elite to keep their unreal creation on the life support machine of taxpayer cash.

In my view the unreal parts of our economy, which includes most of what the City of London does will not survive the year, which I think is good news because the New Age of ‘Enlightened Free Enterprise’ cannot manifest until it does.

The consciousness of ‘Greed is Good’ as epitomised so well in the film ‘Wall Street’ is gasping its last breaths because all that is unreal, which is socially and economically useless, cannot survive.

In the Aquarian Age none of the ‘old skin’ structures will be allowed to stand and so the ‘Armageddon’ described in ‘Revelations’ could be interpreted to mean the ‘reaping’ of the Power Elite for their perversion of money and their refusal to change their ways.

And, as we know what we resist, persists and so by not yielding to the inevitable, the government, who serve the banks, have (by recklessly increasing the national debt) been ensuring that the next catastrophe will be much worse.

They have failed to learn the lesson that an economy run for the rich cannot survive and so in accordance with the Universal Law known by scientists as the second law of thermodynamics; all imperfect structures will eventually be returned to their base state - meaning that they will be ground into dust.

Derivatives linked to interest rates may trigger the next Crash

I think that the trigger for the next crash could come from derivatives that are directly linked to interest rates.

This is because the banks are heavily exposed to them and the market is so vast that any misconception about the likely future path of interest rates has the potential to collapse the financial system in an instant.

And because there is a wide divergence of opinion in the financial community as to how the economy really works the probability of inappropriate action being taken in this ‘casino’ environment is very high.

The U.S. Comptroller of the Currency (OCC) reports that America’s largest banks now hold $172.5 TRILLION of this type of derivative, the most of all time. That’s over thirteen times the amount they hold in credit derivatives – a primary trigger for the 2008-2009 debt crisis.

The annual Gross National Product of the UK is currently under $3 TRILLION.

If you are still not convinced that the government’s solution to the economic crisis is wrong i.e. attempting to resolve the problem of too much debt by borrowing more money, then I recommend that you read the article entitled: ‘The Marginal Productivity of Debt’ which explains how the stimulus package is doomed to failure because government borrowing is actually accelerating the rate of deflation. This article can be found in the ‘Links’ section of my website: http://www.kalincolninvestments.co.uk/

Key Economic Forecasts for 2010 & beyond

• The second crash is likely to occur at some point during the early part of the second quarter of 2010. If I had to pick the month, it would be April 2010.

• 25% unemployment (7 - 8 million). This means one in four people of working age who are physically and mentally capable of working without any form of legally paid employment. Part timers would be counted as employed. The government method of calculation grossly understates the true level of unemployment.

• The FTSE 100 falling to about 1650 (currently 5500 at 20/1/2010). This is the index of the UK’s leading companies

• The Dow Jones falling to around 3000 (currently 10,700 at 20/1/2010). This is the index of America’s largest industrial companies.

• An end, over time, to speculative investing in all its forms. Therefore, I do not expect stock markets to recover.

• Average house price falls of 40% from their 10/2008 peak. This means further falls from the date of this article in the region of 15 to 30%

• Deflation (falling prices) of about 20% over the next 4-5 years.

• A fall in the bank base rate from 0.5% to 0% with the rate staying at this level for possibly 10 years or more.

• A massive reduction in the number of banks, insurance companies, hedge funds, investment houses, stockbrokers and investments advisers and mortgage brokers.

• The decimation of the pension industry. This is where money is invested in the financial markets to provide private and occupational pensions. Nigel Waterson, shadow Pension Minister has confirmed that a future Conservative government will not rescue the Pension Protection Fund should the compensation scheme fall into hardship.

• A massive increase in ‘hardship’ crimes.

• Serious civil unrest caused by hardship and frustration with the government’s initial lack of success in dealing with the aftermath of the economic crash.

Predictions for the General Election

• I think May 6th is the most likely date.

• David Cameron will most likely be the next Prime Minister.

• The size of the Conservative Party majority will depend on the extent to which David Cameron and his team come up with policies that are of benefit to all people.

• The economic challenges the Prime Minister will face will be greater than any leader before him. He will be torn between loyalty to his peers (the Power Elite) who helped him into office and by doing right for the country as a whole. If he allows himself to be pulled in the direction of the Power Elite’s agenda the consequences will be dire, meaning that unless there is massive public opposition, the New World Order agenda will stand a chance of gaining further ground, with the result that personal freedoms will be eroded even more, or even lost completely.

• If David Cameron rises to the challenge he will probably co - opt talent from other parties into his cabinet or, preferably, form a government of national unity from all parties, as Churchill did during World War 11. The economic chaos is likely to be such that in order to properly rectify three centuries of economic wrongs against the people of this country the Prime Minister will have to issue a declaration of war against poverty and the perverted economy.

• David Cameron has the potential to be a truly great Prime Minister, but, if and only if, he is prepared to represent and fight for the interests of ALL people in this country. To do this it is imperative that he distances himself from his rich and powerful friends in the world of banking and finance – especially the Rothschild and Rockefeller families who through their vast network of banks, multi - national corporations, trusts, foundations, pressure groups, banking organisations (BIS), charities, media interests and political affiliations, virtually control economic life on this planet! I do not exaggerate!!! But above all he must be prepared to listen to the advice of those who know how to set the economy on a course of sustainable growth and whose advice is not tainted by a desire for power, position or money. One of the most important skills of leadership is the ability to know who your true allies are by separating the pure in heart from the liars and the lie.

Please note that I do not belong to any political party nor do I favour any one party over another. For me, it’s the quality of the people and policies that count.

How the Banks Steal your Wealth and Wreck the Economy

We cannot rebuild our economy until we treat the cancer that is killing it. That cancer is called the money and banking system.

The system was designed, not for the greater good - that is to create money as a medium of exchange and store of future value – but as a means to profit at our expense.

Nowadays banks create money electronically, literally out of thin air, by using debit and credit entries on computer screens. Money is created as loans (debt), but the interest charged is not created, so there is only ever enough money in circulation to repay the loan capital – not the interest.

This forces borrowers to compete with each other for the money to repay the interest on their loans. But it is impossible for everyone to repay the interest as the money to cover it was never created in the first place. So borrowers’, who default, may forfeit their possessions, giving banks real assets in return for money created out of nothing.

What is worse is the ‘fractional reserve’ lending aspect of this system, which permits banks to multiply their profits by lending up to nine times more than they receive in deposits. This plays havoc with the money supply because more (and sometimes less) money is created than is needed to buy the goods and services produced. When too much money is created inflation results and when there is not enough (as now) deflation ensues. The following example explains how this ‘profit multiplier’ works:

You would think that if banks charge 5% on loans and pay 3% to depositors their profit would be 2% but it’s not, its 42%. This is because for every £100 deposited, the bank only keeps £10 in reserve to cover their customer’s cash needs. The remaining £90 is lent out. The borrower takes their £90 loan and deposits it in a bank. The bank holds back 10% (£9) and lends the balance of £81. This process is repeated until the original £100 deposit has multiplied into £900 worth of loans generating £45 of interest. The bank paid out £3 interest on the original £100 deposit so their profit is £42 (42%).

This system destabilises the economy and makes it impossible to control. All our financial problems stem from it. Historically the charging of interest was illegal. Only when it is made so again can the real recovery begin.

‘If you allow me to control the nation’s money, I do not care who makes the nations laws because I know that I can control the nation through the money system’ - A.M. Rothschild, who is generally acknowledged to be the founder of the fractional reserve banking system.

'I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.' – Thomas Jefferson, one of the Founding Fathers of America and its third President

‘

How ‘A Golden Age’ Money & Banking System would work

The solution to the perversion of the banking and money system is to redesign it so that it operates in accordance with the Universal Laws or ‘Money Laws’, which benefit everyone, as opposed to the existing laws, which benefit the Power Elite.

These are the core ‘Money Laws’ that would enable this vision to become a reality:

• MONEY SHOULD ONLY BE USED IS AS A MEDIUM OF EXCHANGE AND A SHORT TERM STORE OF FUTURE VALUE.

• MONEY SHOULD BE CONNECTED TO SOMETHING OF REAL VALUE - LIKE GOODS AND SERVICES

• THE AMOUNT OF MONEY IN CIRCULATION SHOULD ALWAYS BE EQUAL TO THE VALUE OF THE GOODS AND SERVICES PRODUCED.

• MONEY IS LEGITIMATELY EARNT WHEN PEOPLE ARE WILLING TO MULTIPLY THEIR TALENTS’ BY:

1. Bringing forth new ideas, new inventions and better ways of doing the same old tasks.

2. Taking risks, by taking an initiative, by doing something that no one has done before — and therefore where the outcome cannot be known.

3. Providing the labour that is needed for the economy to run.

• MONEY SHOULD NOT BE ALLOWED TO BECOME AN END IN ITSELF WHEREBY YOU TRY TO OBTAIN SOMETHING FOR NOTHING (REAPING WITHOUT SOWING) OR BY REAPING THE REWARDS OF OTHERS PEOPLES LABOUR

• MONEY THAT IS SAVED SHOULD BE RE - INVESTED AS ‘WHEN THE MONEY FLOWS THE ECONOMY GROWS’

• THE MONEY & BANKING SYSTEM SHOULD BE: ‘OF THE PEOPLE, FOR THE PEOPLE AND BY THE PEOPLE’.

• THE CREATION OF MONEY SHOULD BE UNDER THE SOLE CONTROL OF THE PEOPLE

• MONEY SHOULD BE CREATED FREE OF DEBT

Money is a form of energy that if used correctly facilitates the smooth running of the economy whilst allowing it to grow in a sustainable way.

Our money, banking and financial system has misqualified this energy, which is why we are reaping the whirlwind now - but there is much worse to come.

Kim Andrew Lincoln's Blog

Saturday 23 January 2010

Predictions for the Economy in 2010 & Beyond

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