Consensus versus Absolutism
Illusion versus Truth

"The world is governed by very different personages than what is imagined by those who are not behind the scenes." -- Benjamin Disraeli, Former Prime Minister of England.

"There is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive that they better do not speak above their breath when they speak in condemnation of it." -- Woodrow Wilson.

In attempting an analysis of the world economy and financial markets, the one word that is never mentioned is "apostasy". Has the world lapsed into apostasy, abandoning all truth and principles, seeking only the consensus beliefs of the illuminated, and rejecting absolutism as intolerant? Indeed, economic analysis has lost its sense of absolutism - and now embraces the provisional truths of the illuminated.

Money, as the main measuring instrument of financial analysis has no absolute value. The bankers of the world create or destroy money in unlimited amounts, giving them the power to manipulate markets and economies, creating economic booms - when they create money - and causing economic depressions when they destroy money. The value of money is thus transient -- determined under the plan of the illuminated.

How is one to provide meaningful economic analysis when the unit of measurement constantly changes at the arbritary design of world bankers? The occurrence of economic cycles, as some natural occurrence of nature is a myth. These cycles are controlled and deliberate - and succeed in concentrating wealth and power with the illuminated.

Concepts of wealth - things that are valuable and provide utility - are distorted and perverted by the bankers of the world. Chief amongst these is the belief that government bonds represent quality assets. Government bonds represent only a transfer of assets between bondholders and taxpayers. They are themselves not assets - and do not provide any net utility to society. When the bondholder and taxpayer represent the same economic unit, repayment of government bonds will leave the bondholder no better off - and in no way increases his utility.

Money, which consists only some electronic account stored in someone else's computer, is considered an asset. These electronic accounts, which can be created or destroyed in unlimited amounts, should be seen, as they truly are, as an illusion of wealth created by the bankers of the world to facilitate manipulation and control.

Stock valuations are no longer based on sound economic fundamentals (such as discounted future cash flows), but are based on the momentum of a stock, and the power of unlimited amounts of newly created money to propel it's price. This represents part of the financial illusion that now spreads its dark smoke over the world. It is an illusion of something for nothing, created by the bankers of the world to seduce its people - and eventually leads to total world dominance by the illuminated.

With economics based on illusion, economic analysis based on mathematics loses all meaning. Instead, economic analysis must be based on psychology, philosophy, and theology. For the apostasy within our financial system could not exist unless apostasy had first invaded our morality, infecting our political and religious structures, indeed invading our very souls.

Evolution in communication has allowed the control of the many by the few. Consequently, it becomes quite easy to conquer a people through a conquest of their own intellectuals, through an undermining and subverting of their religious, political, and educational institutions. We notice a decline of man's confidence in the powers of human reason to attain reality and truth. Man has concluded today that all truth is relative. There is no real standard for truth nor universally accepted method for it's verification.

The question is not why man does not see the financial delusion the world is now suffering! The question is how can mankind, who murders 50 million innocent children each year under the euphemism of "free choice", who engages in sexual licentious activities and perversion calling it "sexual liberation", who daily engages in drug addiction, euthanasia, treachery, violence, terrorism, and wars; and worships at the shrines of money, fame, power, pleasure, and science; how is this man capable of distinguishing truth from illusion?

We have fallen into a world of "self delusion", "self deception", and "self justification".

Ideas do have consequences -- and violent ideas will produce violent leaders, who inspired by such ideas, will strive to implement false philosophies of life by violently imposing them on society. History records that once civilization falls into apostasy, economic collapse follows, and then political rape. It will be no different this time. It is only TRUTH that can make and keep men free. When one lives under an illusion that obscures real dangers, one fosters an ambiguity that psychologically prepares citizens for slavery.

It is in this context that we must assess the financial illusions in the world. For if history is any teacher, the crystallization of these illusions will end with the enslavement of mankind.

"To defend oneself, one must also be ready to die. There is little such readiness in a society raised in a cult of material well being. Nothing is left then, but concessions, attempts to gain time, and betrayal" -- Aleksandr Solzhenitsyn

We must recognize the United States as the great defender of freedom in the world. As long as America is free, the quest for freedom by men of good will be fought throughout the world. However, we must recognize, in view of the political and economic forces now interplaying in the world, that this freedom may soon disappear.

"He who is void of virtuous attachments in private life is, or very soon will be, void of all regard for his country. There is seldom an instance of a man guilty of betraying his country, who had not before lost the feeling of moral obligations in his private connections." -- Samuel Adams, letter to James Warren, November 4, 1775.

Americans have ignored the numerous promiscuous sexual affairs of Bill Clinton. They have ignored his lies. They have ignored the murders of many of his friends and associates, the sale of military technology to China, and the various Executive Orders that could turn America into a fascist dictatorship. The latest of these is Executive Order 13107 signed on December 10,1998, which binds the United States to United Nations Human Rights Treaties. It is the enemy within who is more dangerous than the enemy without. It is much easier to fight in the day than the twilight.

On the financial side, a bubble of incredible proportions has been created. Stock valuations are so extreme, that even if companies could achieve grossly optimistic projections, their stocks would still be multiples far and above any reasonable discounted cash flow valuation method.

Consider Internet bookseller Amazon. This company lost $78 million in the nine month period ending September30, 1998 on sales of $357 million. There are no prospects for profitability in the short term - and the trend has been for losses to increase as sales increase. The market value of this company continues to skyrocketed to $31 billion. Put another way, if an investor with $31 billion was purchasing a company with negligible tangible assets, this investor may reasonably expect a return of at least 10%. Assuming a company could earn a net profit of 5% of sales, annual sales need to be at least $62 billion to justify the investment. Understand the illusion of Amazon with annual sales of only $600 million, loses millions of dollars, but whose market cap is that of a company with sales of $62 billion, and which earns $3 billion per year. A total market illusion.

Internet company "the globe.com" lost $5.8 million on sales of $1.2 million for the six months ending June 30, 1998 - and for the 1997 it lost $3.6 million on revenues of $770,000. It expects to lose money for the foreseeable future. Still, on its first day of trading in November 1998, this company boasted a market value of $950 million.

One of the few Internet companies to earn a profit, American On-Line trades at 461 times earnings, and has a market value of $71 billion. If one looks at a cross section of these Internet stocks, valuations defy conventional analysis. Why are such huge sums paid for companies that lose money - and each day move closer to bankruptcy?

These stock valuations and a bubble economy have been driven by massive inflows of newly created money from Japan and Europe, notably since 1995. In addition, American banks and American government agencies have flooded the economy with easy credit, including unsolicited credit cards. It is estimated that 47% of entrepreneurs use credit cards as a financing source. Decreasing down payments to as low as 3% and eliminating normal financial qualification requirements have created a housing boom. An adequate record of making rental payments became the sole financial requirement for a mortgage. No effort has spared to flood the economy with as much liquidity as possible, both internally and externally. The short-term consequences of these actions are extremely positive, the long term consequences disastrous. In the short term, an artificial housing boom provides jobs and profits for the people and business, In the long term, excessive supply and collapsing mortgages will devastate the industry.

American society driven by a credit binge and artificial foreign liquidity has seen its trade deficit soar -- reaching an annualized rate now approaching $250 Billion. The savings rate has fallen to zero -- with Americans now placing their financial security in a massive financial bubble.

No one dares ask what will happen when this liquidity binge reverses - and the world bankers start destroying money. What will be the effects on an a-moral materialistic society when massive amounts of money leave America?

The pattern has been set and can be seen in the economies of Southeast Asia, Russia, and Brazil.

Let no one be under the delusion that anyone not party to the secret boardrooms of international bankers can project the short-term manipulations of the marketplace. When liquidity is provided, markets and economies expand. When liquidity contracts, markets and economies implode.

Japan is an interesting case of what will happen and when. The deficit for Japan's central and local governments will combine in fiscal 1999 to reach 10% of GDP. In addition, Japan's second national budget, the Fiscal Investment and Loan Programs, will borrow 52.8 trillion yen to fund its spending programs. These funds are provided by the governments postal savings system -- with the government essentially using the savings of depositors to fund its second budget.

Viewed from a different perspective, the budget of Japan's central government is as follows:

General spending 81.9 trillion yen

Funds to recapitalize Banks 60 trillion yen

Fiscal Investment and loan Program 53 trillion

Total spending 195 trillion

Total tax income 47 trillion

Deficit 148 trillion yen

Faced with Japan's central government having to print or borrow the equivalent of $1.4 trillion U.S. dollars over the next year, interest rates on the Japanese bond market have recently begun to rise, questioning how an imploding economy and insolvent financial system can finance borrowings that are far in excess of the profits of the nation. Japanese banks can instantaneously create sufficient loans to finance these borrowings; thus ensuring that the Japanese government remains enslaved to its bankers. The point being that when liquidity to the Japanese Government is withdrawn, it will collapse into bankruptcy, and like domino's the banks and the economy will collapse as well. The only question is when will this liquidity be withdrawn?

Analyzing the world's financial situation, I constantly ask three questions

1) What are the motivations of those that control world financial markets?
2) What actions are these people now undertaking?
3) What actions will they likely to undertake next?

In answer to the first question, I believe what they seek is world domination in control. To think that they are motivated by the good of mankind is to deny the lies and illusions of our financial system, to deny the corruption that infects it, and to deny the financial ruin of hundreds of millions of people over the last 18 months. The answer to the second question is that we have seen a first stage collapse of Southeast Asia. Russia has collapsed and its fiscal budget will consist primarily of printing money. Brazil is on the verge of collapse and already provincial governments have defaulted on debt. The Japanese economy continues to contract with a loss of corporate profitability, unsustainable budget deficits and an insolvent financial industry.

The U.S. financial bubble continues to grow. However, most ominously, a small group of bankers now control the new European Bank. This bank will soon be the most powerful financial organization in the world, with great power, not only over the 11 country's involved, but over the rest of the world.

What will happen next is of course open to much speculation. "This dollar-oriented world needs to change" Japanese Prime Minister Keizo Obuchi in France, January 8,1999.

A well planned attack on the U.S. dollar by the new European Central Bank and the Bank of Japan would create a speculation frenzy that could destroy the U.S. dollar and collapse the U.S. markets and economy. What the axis powers of Europe and Japan failed to do in the Second World War can now be accomplished using the illusions of world bankers.

It is important to note that many people have a difficulty relating cause and effect, and that the triggering mechanism of any collapse may not be even be economically based, which would deflect the reason for the economic collapse away from our present financial system, allowing an introduction of an even more perverted financial system than presently exists. Economics does not exist in isolation to the forces of politics, indeed it does not exist in isolation to morality or even spirituality. The beliefs of people affect their entire being, of which economics is only part. The economic structures that man chooses will be based on his desire for manipulation and control; or love and compassion.

"The split in today's world is perceptible even at a hasty glance… The truth is that the split is a much profounder and more alienating one (than a mere political one), that the rifts are more than one can see at first glance. This deep, manifold split bears the danger of manifold disaster for all of us, in accordance with the ancient truth that a Kingdom-in this case, our Earth-divided against itself can not stand…

A decline in courage may be the most striking feature which an outside observer notices in the West in our days. The Western world has lost its civic courage, both as a whole and separately, in each country, in each government, each political party, and, of course, in the United Nations. Such a decline in courage is particularly noticeable among the ruling groups and the intellectual elite, causing an impression that the loss of courage extends to the entire society…

Destructive and irresponsible freedom has been granted boundless space. Society appears to have little defense against the abyss of human decadence, such as example, the misuse of liberty for moral violence against young people, motion pictures full of pornography, crime and horror. This is considered to be part of freedom, and theoretically counterbalanced by the young peoples' right not to look or not to accept. Life organized legalistically has thus shown its inability to defend itself against the corrosion of evil.

Aleksandr Solzhenitsyn "A World Split Apart", Harvard University, June 8,1978

"We need to meditate deeply on the signs of a new spiritual crisis, whose dangers are apparent not only at the personal level but regarding civilization itself. If this crisis deepens, utilitarianism will increasingly reduce human beings to objects for manipulation. If the moral truth revealed in the dignity of the human person does not discipline and direct the explosive energies of technology, a new era of barbarism, rather than spring-time of hope, may well follow this century of tears." -- Pope John Paul II, October 24,1998

Only the truth can keep men free. In an era that seeks to destroy truth, does man have the courage to seek the truth, and once found, to live according to the truth, forsaking even his life to maintain just principles?

John Kutyn
13 January 1999