The serious decline in the Hong Kong stock market might be the continuation of the global disorderly debt liquidation began in Japan a few years ago. We just might be seeing the beginning of financial woes that would collapse all existing financial markets, bringing in the global New World Order economy.

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NEWS BRIEF: "Asian Woes Won't Hurt US: Dominoes fall in Far East economy but global stocks appear too strong", from Los Angeles Times, The Sun Chronicle, Friday, October 24, 1997, page 1, 8.

"For most of the past few years, the growing consensus on Wall Street has been that it would take a big shock to end U.S. stock's long bull market -- some kind of dramatic and unexpected event that would stun the global economy. Could the current financial crisis in Asia, which began with the equivalent of a fire in Thailand's small and relatively unimportant markets last spring, be such an event?"

"That question took on more urgency today in the wake of the steep plunge in Hong Kong's stock market, which then spread worldwide, pounding stocks from New York, to Germany to Argentina. Hong Kong is the latest -- and the biggest -- Asian domino to fall as global investors have yanked billions of dollars in capital from the region in recent months, apparently convinced that what was once touted as the 'Asian economic miracle' now is a bust -- a victim of growing trade deficits, burdensome debt loads and overbuilt real estate markets in many Asian countries."

"As money has exited Asian markets, what has been left behind are deeply devalued currencies, soaring interest rates, devastated stock markets, and the virtual certainty that economic growth will slow drastically across the region. 'What is developing is a quasi-recessionary environment for the whole region', said Allen Sinai, chief economist at Primark Decision Economics in Boston. Yet, many experts doubt that even a marked economic slowdown centered in Southest Asia can seriously depress economic and stock-market activity in the world as a whole."

"Indeed, currency devaluations -- the heart of the crises for many of the countries involved -- have occurred elsewhere in the world in the 1990's, including Mexico in 1994, without triggering global recession ... There are, however, other concerns that make this spreading crisis more worrisome than Mexico's in 1994. First, two far bigger dominos could conceivably begin to teeter: Japan's weak economy, which is on the hook for billions of dollars in bank loans to now-struggling Southeast Asian countries and companies; and China's economy, which obviously has close ties to the rest of Southeast Asia and also is directly affected by any change in fortunes in Hong Kong."

"Nonetheless, far more important to the outlook for the U.S. economy and stock market, most analysts say, is what's happening in the North American economy, including Canada and Mexico. And on that front, the news still is exceptionally good. With consumer demand strong, inflation very low, business inventories lean and interest rates moderate, the $7 trillion U.S. economy 'has too much going for it' to be affected much by Asia's turmoil, says Sinai."

This is the Conventional Wisdom, and it may prove to be right in the near term. However, remember that the 1929 Wall Street crash did not immediately create the Great Depression; stocks even rallied for some months after the crash. But, consistent days of small downturns continued to carry the Stock Market further downward, until, in 1931, the really damaging crash occurred, sending America into the Great Depression. Is this going to likely happen again, only with the Global Economy now the stage?

1) Is the turmoil in the Hong Kong financial markets an isolated event? 2) Will this turmoil affect the US in a meaningful way? 3) Finally, why are so many Southeast Asian countries experiencing similar turmoil in their markets and currencies? The answers are as follows:

1) No, the turmoil is not isolated to Hong Kong, but spread throughout Asia

2) Yes, the US will most certainly be affected, in the long term if not the short term

3) So many Asian countries are in similar difficulty because these countries are most susceptible to the ramifications of financial instability, and would logically be the first to crash. These Southeast Asian countries are presently in the midst of an eight year global speculative blow-off and disorderly debt liquidation. Their crash, in our opinion, will ultimately result in a global depression, which will crash all the economies of the world, thereby setting the stage for the ultimate global economy.

Then, the only alternative left to the peoples of the world will be the planned global economy, and the global government of the United Nations to regulate this new economy. This is the Plan, and we are seeing the beginning of the end of the separate economies of the world.

Thailand, the Philippines, Indonesia, Malaysia, and now Hong Kong, have all succumbed to the mounting pressures of speculation and excess. All of these currencies, except Hong Kong, have unlinked their currency from the US dollar. What has brought stability to these economies in recent years is the fact that their currencies were "pegged" to the US dollar. This pegging to the dollar guaranteed a fixed amount of US dollars for each unit of local currency. With this stability, however, came increasing difficulty to sell exports abroad, especially to the United States. Why? The reason is simple: if their currencies are pegged to the US dollar, then they cannot fall against the dollar. But, if their currencies could fall against the dollar, they can more easily sell exports abroad, especially to the United States, because the US dollar can purchase more.

So, on the one hand, the pressure exists to remove this peg to the US dollar. On the other hand, pressure exists to keep their economies pegged to the dollar, so as to maintain local purchasing power and to retain stability in these markets so as to attract capital investment. Unfortunately, those Southeast Asian countries, mentioned above, capitulated to the extreme pressure to unpeg their currencies to the US dollar. This action gave them a short term explosion in their economy, but rendered them vulnerable to long term instability. We are beginning to see this instability rear its ugly head. To make matters worse, several years ago, when citizens of these countries suddenly found themselves with extra money to spend, they spent it in various financial markets, some of which were highly speculative, and very risky. This speculation has the effect on this financial instability of throwing gasoline on a fire. This situation is what we are seeing today in Southeast Asian markets.

The stock market in Hong Kong is down more than 23% from its most recent high. This sudden drop has put heavy pressure on the Hong Kong dollar, driving many investors to sell their stocks and thus preserve their profits derived from the recent run-up in stock prices. The government raised short term interest rates to try to defend the drop in the Hong Kong dollar.

This financial turmoil will hurt Japan, as the article above stated. Japan was the country which began the global debt liquidation scenario. I believe this disorderly debt liquidation began in Japan soon after the collapse of their stock market in 1989-90. The Nikkei stock market reached a high of slightly over 40,000; currently, after nearly eight years of decline, the Nikkei average is approximately 17,000, a drop of over 60%. Each time we see a rally in the Japanese stock market, selling comes crashing in to squash it. Japan has been in a sustained recession since the early 1990's. An excellent indicator of the depth of this debt liquidation and recession is that the Japanese commercial real estate values in their six largest cities is down 75% from their highs.

The fact that Japan has 40% of her exports in Southeast Asia signals very strongly that, if she wasn't in deep trouble before, she certainly is now. Japan has lent heavily in Southeast Asia, so her banks face the possibility of heavy losses from loan default. Therefore, these market instabilities in Southeast Asia and Hong Kong may just take Japan down with them.

We cannot help but wonder, with Japan holding hundreds of billions of dollars in US Treasuries, when the day will come when they begin to refuse to buy any more Treasury Securities that help our Federal Government finance our huge debt? Japan would not even have to sell their existing securities to wreak havoc in our markets; all she would have to do is to not buy future securities. Foreign banks around the world are the largest holders of US Treasuries, exceeding even what the US Federal Reserve holds!! The total of US Treasury Securities held by these foreign banks exceeds $1 trillion. And, Japan is the largest of the foreign holders. Remember, the price of our US Treasury Securities has more than a 95% correlation with the currently rising price of the US Stock Markets, making them a critical support for the US markets. Thus, if the value of US Treasury Securities begins to fall because foreign banks are either not buying any more, or are selling the ones they presently hold, a very, very critical element of the value of the US Stock Market crumbles, and quickly. Also remember that speculation has fueled a large part of the historically large increase in our stock market.

Like Japan in the late 1980's, Hong Kong has both a stock market and a real estate bubble. The recent drop from last week in the Hong Kong stock market is equivalent to an 1800 point drop in our Dow Jones average!!

You can be sure that the phone lines are now heavily in use between every central bank in the world. At some point, the worldwide disorderly debt liquidation and the speculative blow-off scenario will reach the critical mass and thus cause our financial markets to tumble dramatically. Where the trip wire for this scenario exists, is impossible to say. I could list more than a dozen trip wires that I believe are reasonable: from the war in the Middle East resulting in another oil embargo to the West, to falling US profits, to US Treasury sell-off.

But, regardless of which shock, or trip wire, if the foundation is intact, then these shocks can be absorbed. What are these critical elements of our financial foundation?

* Low debt in the United States

* High savings

* Strong Work Ethic

* Rising productivity

* Little currency debasement

* High capital investment

* Moral integrity

But, are these elements of our national foundation intact? Of course, they are not. We have extremely high debt in this country, both personal and government. Americans have the lowest savings in the world. Our work ethic has disappeared after many decades of Welfare mentality disease. Our productivity is rising marginally, and our US dollar has suffered great debasement ever since the Vietnam War. Capital investment is down, and we have spent great time and efforts on The Cutting Edge chronicling the absolute meltdown in moral integrity. In a time of great financial crisis, too American citizens will resort to a dog-eat-dog mentality, thus ensuring that the financial crisis will deepen rapidly and spread widely.

But, this situation, as described above, exists in virtually all of the Industrialized nations in the world! Even modest shocks cannot be readily absorbed. If you review the income statements of the nations today, they are all in a similar situation; each of their financial foundations is eroding.

The fact of the matter is that all the governments of the Western World have been quietly consolidating their political power, without their citizens being aware of this reality, and while giving their citizens a unprecedented temporary standard of living. How has this been done? This consolidation of governmental political power has been accomplished by an aggressive use of debt at all levels, both private and public. Additionally, heavy Treasury purchases by the Central Banks of all these Western countries has greatly aided in this endeavor, an action which debases their currency still further. Finally, Western governments have greatly used the Fractional Reserve Banking System to stimulate the economy with funds that do not really exist, but are just dots on the paper! Therefore, untold billions of additional dollars were infused that did not exist. The effect is the same as if the Federal Reserve suddenly began printing billions of additional greenbacks, except that, so far, this Fractional Reserve Banking System has not triggered panic as would occur once investors discovered that the Federal Reserve was printing additional dollars.

Indeed, when interest rates in the US go back to the level of the late 1980's, or even back to half of the early 1980's level, the bankruptcy rate will soar. Today, our bankruptcy rate is at an all-time high, exceeding 1.1 million annually. The US Federal deficit increases by $50 billion for each 1% (100 basis points) rise in interest rates. Now, you can understand why investors get so nervous whenever they hear the rumor that the Federal Reserve might increase interest rates. Now, you can understand why investors hang on every word from Alan Greenspan.

To reiterate what we have been saying about debt liquidation: this debt liquidation scenario is one of a disorderly write-off, and opposed to an orderly pay down of debt. The point will be reached, and probably soon, when the profits generated by economic growth will be unable to sustain the cost of the debts, causing massive defaulting. The future reality of this scenario is absolutely certain. However, the timing, the magnitude, and the duration of this economic meltdown is not certain. The US markets may continue in speculation for another year or so, although not much more than that. And, this speculative market may not even last that long; it might crash tomorrow.

Now that we have laid out the basic economic mess the economies of the world find themselves in, we have printed, below, a brief estimate of the course of action this disorderly debt liquidation is likely to follow:

The debt liquidation will manifest itself in the stock market, potentially from many sources. These sources may be shocks or crises (the number of which are growing daily), or the steadily slowing corporate earnings. One possible major source would be rising interest rates due to foreign selling of US Treasuries. Any number of other areas could also be the trigger.

The stock market is likely to initially fall 10-30% over a few days, weeks, or months. At the end of that time, there will be a strong rally that could last a couple of months, or even a year or two, although I doubt that it will be that long. People who are in trouble in either heavy debt or lack of savings need to react quickly during this period of temporary rally, because it will be during this time that a renewed sense of optimism will falsely calm most fears that investors experienced during the initial sell-off.

The financial press, financial institutions, and the government will dramatically reassure everyone that things are going to be just fine, and they will convince most people. Most people will see this time as a major buying opportunity, thinking they are acting wisely. But, at some point, the rally will end. The market will sink to a new, and much deeper, low. During this time period, REAL FEAR will enter the markets and the economy. The stock market will really begin to plunge.

Several months after this new stock market plunge, bankruptcies and loan defaults will increase dramatically. More and more businesses will liquidate inventories to raise cash in an effort to maintain solvency. Consumer confidence will drop sharply. Most likely, the retail prices on many goods and services will initially fall as more and more inventories are liquidated to raise cash. This, then, is the time when the sell-off will start impacting the economy, only deepening the liquidation.

But the Central Banks of the Western countries will not be standing by idly. They will be busy adding liquidity by injecting more dollars, which are created without the backing of real assets, into the banking system. This action will be taken to try to soften, and even reverse, the disorderly debt liquidation scenario. Central Banks will typically accomplish this by buying Treasuries, thus artificially lowering those rates. For a time, this action may slow the process. But, the more Treasuries they buy, thus debasing the currency still further, the more experienced investors will sell. Interest rates will thus be forced back up, slowing the economy still further.

Eventually, all the fiat (false) money injected into the banking system starts creating an inflationary effect, quickly reversing the deflation from inventory liquidation. But, this action is now compounded, because large amounts of products and services are no longer available; they have been liquidated earlier in the cycle. Shortages start occurring with more frequency and prices shoot upward even faster. As the process continues, you will likely see depressed inflation via government price controls. Thus, even if you wanted to pay a higher price, and could afford to do so, you could not. Later still, the government will begin to ration goods and services. This process continues until the debt is sufficiently liquidated to allow the investment that remains, to begin to create jobs that will overcome the contractionary forces, or until the currency is replaced with a new one. This latter action is equivalent to writing off the global debt on a huge, macro scale, and starting over.

But, before we get to that point, it is possible that the public outcry will be sufficient to allow further consolidation of government power on an international basis, resulting in the nationalization of entire industries. People will then have to march in lockstep with the new policy and regulations to gain access to needed goods and services. At this point, the consolidation of economic and political power will flow to the huge, Supranational states, and to the planned world governing power. [Thus, the Fascist Economy is born]

So, you can see that this 'leveling out' process is necessary in the march to the New World Order government. The goal is to make everyone equal -- equally poor. This entire process, which I believe has already started with Japan's sell-off in 1989-90, could take several years to complete.

I believe people need to protect themselves by taking two simple steps: pay off debt as rapidly as possible, and avoid new debt commitments. Beyond this two simple steps, there are more complicated ways to protect your more complicated investments.

To conclude this article, I want to supplement Jim's financial scenario by quoting from a New Age author as he talks of the manipulation of the financial markets so as to achieve the goals of the New World Order. Remember, economists who know how to run a complex economy also know how to ruin such an economy. Furthermore, they know how to do it over a period of many years, so that when the crash occurs, very few people will be able to understand that they have been set up for the fall. Few people will understand that they are the victims of a very long Plan to enslave them in this new system of Government, Economy, and Religion called the New World Order.

Let us review some brief excerpts of this New World Order Plan to enslave us. Unless we indicate otherwise, all the following quotations are taken from New Age author, William Cooper's book, "Behold A Pale Horse", Light Technology Publishing, Sedona, AZ, 1991, pages 39-49.

"Energy is recognized as the key to all activity on earth. Natural science is the study of the sources and control of natural energy, and social science, theoretically expressed as economics, is the study of the sources and control of social energy. Both are bookkeeping systems: mathematics. Therefore, mathematics is the primary energy science. And the bookkeeper can be king if the public can be kept ignorant of the methodology of the bookkeeping. All science is merely a means to an end. The means is knowledge. The end is control. Beyond this remains only one issue: Who will be the beneficiary?"

"In 1954, this was the issue of primary concern. Although the so-called 'moral issues' were raised, in view of the law of natural selection, it was agreed that a nation or world of people who will not use their intelligence are no better than animals who do not have intelligence. Such people are beasts of burden and steaks on the table by choice and consent." [Emphasis added]

Folks, this is the true attitude which our Illuminist Government leaders have toward us. We are beasts of burden and steaks on the table. This attitude must be particularly strong since the Illuminati has so successfully "dummed down" our educational system, creating huge masses of young people who will not read and cannot think critically.

Now, let us return to William Cooper.

"Consequently, in the interest of future world order, peace, and tranquillity, it was decided to privately wage a quiet war against the American public with an ultimate objective of permanently shifting the natural and social energy (wealth) of the undisciplined and irresponsible many, into the hands of the self-disciplined and worthy few ... In conclusion, the objective of economic research, as conducted by the magnates of capital (banking) and the industries of commodities (goods and services), is the establishment of an economy which is totally predictable and manipulatible."

In the next pages, Cooper speaks in detail about the scenario by which this economic slavery could be achieved, without the common citizen discovering what was happening to him. While the discussion is very complex and technical, suffice it to say that the scenario envisioned here follows the same path as does this scenario, above. They created a long-term plan whereby people who are "undisciplined" and "unworthy" are given access to huge amounts of capital via credit. The inevitable buildup of debt, especially when it is accompanied by the deliberate debt of the Federal Government and the other governments of the world, has the same effect as of a huge charge building up within an electrical capacitor. At some point, the buildup of this charge will reach the critical point where the charge must be discharged in order to return the capacitor to proper equilibrium. This concept of returning the capacitor to the normal and proper equilibrium would logically follow the scenario laid down. However, these Illuminists take this issue of the discharge of energy within this financial capacitor one ominous step further. Listen:

"... public greed would allow currency to be printed by government order beyond the limits of backing in precious metal or the production of goods and services (Gross National Product). In this structure, credit, presented as a pure element called 'currency', has the appearance of capital, but is, in fact, negative capital. Hence, it has the appearance of service, but is, in fact, indebtedness or debt. It is, therefore, an economic inductance instead of an economic capacitance, and if balanced in no other way, will be balanced by the negation of population (war, genocide) ... War is, therefore, the balancing of the system by killing the true creditors (the public which we have taught to exchange true value for inflated currency) ..." [Emphasis added]

Did you understand this last paragraph? We, the common folk, are being set up deliberately so that, in the minds of the Illuminati, the only way to achieve proper discharge of the financial indebtedness is to kill off the creditors through war!! Listen to Cooper some more:

"To make a short story of it all, it was discovered that an economy obeyed the same laws as electricity and that all of the mathematical theory and practical and computer know-how developed for the electronic field could be directly applied to the study of economics. This discovery was not openly declared, and its more subtle implications were, and are, kept a closely guarded secret ... in an economic model, human life is measured in dollars, and the electric spark generated when opening a switch connected to an active inductor is mathematically analogous to the initiation of a war ... They (countries) must eventually resort to war to balance the account, because war ultimately is merely the act of destroying the creditor, and the politicians are the publicly hired hit men ..." [Emphasis added]

"Since most of the general public will not exercise restraint, there are only two alternatives to reduce the economic inductance of the system. 1) Let the populace bludgeon each other to death in war, which will only result in a total destruction of the living earth. 2) Take control of the world by the use of economic 'silent weapons' in a form of 'quiet warfare' and reduce the economic inductance of the world to a safe level by a process of benevolent slavery and genocide. The latter option has been taken as the obviously better option." [Emphasis added]

"Eventually every individual element of the [economic] structure comes under computer control ... Universal Product Code (UPC) ... and later a permanent tattooed body number ..."

Wow!! After deliberately leading the economies of the world into a prolonged period of excessive living by excessively building debit via credit, the Illuminati plans to institute a series of planned wars to kill off certain creditors while sparing the rest of the world from total destruction. They plan to deliver us into " benevolent slavery" and " benevolent genocide"!!! Then, after they have us under their total control, they plan on giving every person on earth some sort of body number, without which no one can buy or sell. Of course, this part of their plan is in direct fulfillment of Revelation 13:16-18, printed below for you.

We are apparently very close to this scenario fully breaking upon us now. We are apparently at the end of a very sophisticated plan which was finalized in or about 1954. This entire Plan, taken in all of its Economic and Political facets, fully fulfills Bible prophecy. Since we listed the war in the Middle East as a possible trigger for the inevitable and complete meltdown of the economies of the world, I feel that all this economic meltdown might occur when Antichrist is on the scene. Remember, as we thoroughly detailed in NEWS1015, "Albert Pike's Occult Vision As To How To Achieve The New World Order", the Plan calls for the Antichrist to arise during the Third World War, between Israel and her Arab neighbors. This was is imminent, awaiting only God's timetable.

Let us quickly review pertinent Biblical prophecies which seem to be fulfilled once this Economic Plan is fully instituted.

* Revelation 13:16-18, "And he [False Prophet, working with Antichrist] causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads: And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name. Here is wisdom. Let him that hath understanding count the number of the beast: for it is the number of a man; and his number is Six hundred threescore and six [666]." This Scripture reveals that the Economy of the Antichrist will be Global, will be without cash, will be dictatorial, and will be able to finitely control every individual on earth.

* Revelation 6:3-4, which occurs after 6:1-2, when Antichrist arises. "And when he [Jesus Christ] had opened the second seal, I heard the second beast say, 'Come and see'. And there went out another horse that was red: and power was given to him that sat thereon to take peace from the earth, and that they should kill one another: and there was given unto him a great sword." This Scripture reveals the intense period of war that will break out immediately after Antichrist arises. Notice that the rider of the Red War Horse carries a "great sword". This means that he will be able to inflict war on mankind that is unprecedented and capable of killing unprecedented numbers of people.

* Daniel 7:7-8, especially verse 8a, "I considered the [10] horns, and, behold, there came up among them another little horn [Antichrist], before whom there were three of the first horns plucked up by the roots:" When a gardener plucks up a plant by the roots, he completely and thoroughly destroys the life of that plant. This is the picture here. Antichrist plucks up three of the original 10 Super Nations by the roots and thoroughly destroys them. The 10 Super Nations have already been formed, from 1992-1996, of which NAFTA is Nation #1. For a complete discussion of the 10 Super Nations, go to NEWS1002, "NAFTA Is Fulfillment of Bible Prophecy".

* Joel 2:30-31, "And I will show wonders in the heavens and in the earth, blood, and fire, and pillars of smoke. The sun shall be turned into darkness, and the moon into blood, before the great and the terrible day of the LORD come." This is a perfect description of the effects of massive nuclear explosions. The nuclear blast immediately creates a "pillar of smoke", while later effects include turning the sun and moon into a blood-red color, and in certain places close to the blast, of actually blotting out the sun's rays with the tremendous smoke and dust thrown into the air.

Therefore, you can see that this Planned Economic Meltdown will lead inevitably to the appearance of Antichrist and the global economy of the New World Order. To achieve this vision, the current economic system had to be deliberately destroyed. While no one can fully prepare himself and his family to withstand the full effects of this terrible time, there is much you can do to take your family through the short term disaster.

But, finally, you must prepare yourself spiritually. Are you spiritually ready? Is your family? Are you adequately protecting your loved ones? This is the reason for this ministry, to enable you to first understand the peril facing you, and then help you develop strategies to warn and protect your loved ones. Once you have been thoroughly trained, you can also use your knowledge as a means to open the door of discussion with an unsaved person. I have been able to use it many times, and have seen people come to Jesus Christ as a result. These perilous times are also a time when we can reach many souls for Jesus Christ, making an eternal difference.

If you have accepted Jesus Christ as your personal Savior, but have been very lukewarm in your spiritual walk with Him, you need to immediately ask Him for forgiveness and for renewal. He will instantly forgive you, and fill your heart with the joy of the Holy Spirit. Then, you need to begin a daily walk of prayer and personal Bible Study.

If you have never accepted Jesus Christ as Savior, but have come to realize His reality and the approaching End of the Age, and want to accept His FREE Gift of Eternal Life, you can also do so now, in the privacy of your home. Once you accept Him as Savior, you are spiritually Born Again, and are as assured of Heaven as if you were already there. Then, you can rest assured that the Kingdom of Antichrist will not touch you spiritually. If you would like to become Born Again, turn to our Salvation Page now.

We hope you have been blessed by this ministry, which seeks to educate and warn people, so that they can see the coming New World Order -- Kingdom of Antichrist -- in their daily news.

Finally, we would love to hear from you.

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