Many are surprised at the speed of events occurring with the current global economic collapse. Yet few appear to be aware of what is still to follow as events unfold in the days that lie ahead. For some years I have been writing about the growing potential for this economic collapse, and now, will explain the events that will unfold over the coming weeks. The present crisis is not just an economical - it is a political crisis also. What is unfolding now is a going to result in the end of the Anglo-Saxon dominance of the global economy, along with the collapse of their economies and military capacity. We are experiencing some of the most dramatic and dynamic events in the history of mankind. The political landscape of the world in which we live is being significantly changed.

Here is a brief summary of the events to unfold.

The Anglo-Saxon financial institutions will continue to hemorrhage as investors withdraw their funds and no longer refinance loans as they fall due. Many of the investors are foreigners who have lost confidence in the Anglo-Saxon banking system.

The fall-out is impacting the European Union economies, resulting political and economic changes in how the EU is governed.

There will be a lack of confidence by the Asian countries in reinvesting in the Anglo-Saxon nations and the withdrawal of their capital will result in the collapse of the US dollar, British pound and other currencies dependent on the carry trade, followed by national bankruptcy.

While Asia and European economies will survive and once-again prosper, the Anglo-Saxon nations will collapse into deep depression, poverty and social disintegration.

A new economic model will emerge, wherein the State replaces the private sector, exercising control over the population regarding how commercial activity is conducted.

Central banks over the last couple of weeks around the world have been increasing the money supply to prop up a collapsing banking system. In simple terms, this has meant creating money to advance to banks to ensure that they have funds to pay depositors and to provide additional funds to ensure that banks will be able continue lending.

The recent $US700 billion bailout in the USA means that the banks will be repaid by the government for their bad loans, with the hope that they will continue loaning once again to debt-laden consumers to entice them to purchase more goods that they really don’t need in an effort to stimulate consumer spending. Yet banks are having trouble finding credit-worthy customers, or do not have the funds to lend at all as depositors withdraw their savings.

The expansion of credit through the global banking system on the scale of the last few weeks has been a risky gamble. Yet it has failed to restore confidence in the global equity markets, and which, in turn, is further weakening the banking system as depreciating assets destroy their balance sheets.

The Anglo-Saxon nations are dependent on their foreign creditors rolling over their loans which they have advanced through the international banking system or by purchasing Government Bonds. Their creditors have been seduced into lending to them through complex financial products at high interest rates. The English speaking world needs the inflow of capital to be able to finance their current account deficits and maintain domestic liquidity. Without the inflow of foreign capital, their currencies risk collapse, drying up liquidity and economic activity in their markets. Countries such as the UK , USA , Australia and New Zealand now face national bankruptcy. They will not be able to sustain economic activity to generate the foreign exchange to enable them to repay their enormous balance of trade debts to their foreign creditors.

Many have compared the current crisis to that of the depression of the thirties. However, there are some significant differences. The problems that prolonged the depression of the thirties were from a lack of liquidity in the markets. This time, Central Banks have flooded the markets with money to prop up the banking system in a vain effort to stimulate economic growth. This is eventually going to be disastrousness. Printing money in a desperate effort to solve the current economic crisis will only make the situation worse. The market was already flooded with money in a market that lacked confidence and has declining productive output. The outcome will be a lack of confidence in fiat money and a flight to gold or currencies that are perceived as being safe.

At present the flow of money between banks has slowed because of this lack of confidence. Yet this is not the real problem. The current situation has been bought about as a result of continuing expanding the money supply in the Anglo-Saxon economies, while maintaining large current account deficits. This has resulted in their banking systems becoming dependent on an inflow of capital from countries operating with current account surpluses, especially China and Japan . Printing money to finance payment of imports, dividends on investments and interest payments cannot be sustained indefinitely. The current crunch has come at a time when there has been a slow-down in the global economy, partly due to the collapse of an over-heated housing market in the West, making it more difficult for the Anglo-Saxon nations to service their debts.

We are now seeing a dramatic shift of wealth from the Anglo-Saxon nations to Asia . Though the US dollar has recently appreciated against the Euro, this will only be for a short time as the world becomes flooded with unwanted dollars. The collapse of the US dollar and British pound will also drag down those currencies that have been supported by the carry trade that is dependent on the inflow of overseas capital to sustain their economic activity.

The current crisis will have enormous, global political repercussions. It will see the end of the ascendancy of the western democracies. People will be willing to accept authoritarian forms of government out of economic necessity. Europe will experience the biggest political change. The current crisis has shown the inability of divided leadership in Europe to react to a crisis of the magnitude that has happened over the last couple of weeks. This crisis will bring the EU nations together under a single leader and political system.

The acceptance of a single EU leader with the power to take control of restoring prosperity to the European economies will result in the State taking a much greater role in how economies are managed. Already we are seeing Governments taking over failed banks, and legislation is rapidly being passed to give the State the authority to direct investment and control the banking system. Once this confidence is restored the Euro will quickly replace the US dollar as the international reserve currency to finance global trade. As currencies collapse, the Euro will be accepted as an alternative, so it will be widely accepted around the world as the money of choice. This will enable the EU to have great economic and political influence around the globe.

We will shortly see the collapse of the economies and currencies of the USA , Canada , UK , Ireland , Australia and New Zealand . The speed of this collapse will catch many by surprise. It will happen once their overseas investors lose confidence in their economies and withdraw their capital. Without being able to roll over their loans there will be a collapse of their currencies and they will default on their international debt obligations. They will be blamed for the economic crisis that has engulfed the globe, bringing the hatred of the whole world against them.

It will result in the Anglo-Saxon nations sinking into abject poverty; their people will face starvation, disease, famine, and abject poverty. Their people will suffer greatly, as their societies degenerate into anarchy, as law and order breaks down, and orderly society collapses. Their nations will be taken over by their creditors as they try and recover their debts, and their people put into slavery. It will be a time of great suffering and tribulation for their peoples. One consequence of this calamity is that religious freedom, as we have known it, will be greatly curtailed as the State imposes its will upon those subject to its iron rule.

How have the Anglo-Saxon nations got themselves into such a mess, when they were the most powerful economic and military powers on earth? The current situation is a direct result of rejecting the economic and moral laws God has given our nations to ensure that we have a society of equality and prosperity, rather than what we have today – a society that is based on greed, pursuit of the self, pleasure and rejection of moral and religious values. These are societies which were bent on self-destruction, but few realized the consequences of such actions until it was too late.

Over the coming weeks I will write as events quickly unfold, and we sink into the darkness of an economic abyss.

Bruce Porteous