Posted Dec 6, 2014 by Martin Armstrong
California’s Drought Ranks Worst in at Least 1,200 Years. The flooding that is taking place warns of something else. The major earthquakes correlate to these periods of extreme drought and then extreme rainfall. That may place added street on the fault lines. We warned last April that there is a rising trend in magnitude. Our models correlate everything and as such this correlation between earthquakes, drought, and excessive rain fall is something that warrants much more study. As the Economic Confidence Model turns down, we should be aware that it appears the ECM includes nature. The 1906 San Francisco Earthquake disrupted the capital flows and send capital rushing from East to West. This resulted in bank weakness in NYC and eventually failures in 1907. That set in motion an investigation and the the birth of the Federal Reserve with 12 independent branches to manage the capital flows.
It was WWI that altered the structure of the Fed first directing it to buy government bonds and then Roosevelt usurped the power of the Fed centralizing it in Washington ending the very purpose for the 12 branches. With each crisis Congress keeps changing the Fed and has never returned it to its original purpose.
Natural disasters are important. We have included these events into our database so that Socrates can correlate everything to establish definitive relationships. Hence, we are warning of a correlation that appears to increase the rise for a major earthquake in California. This could seriously disrupt the economy and set in motion a sever economic decline post 2015.75.