There has been a stream of bad economic news recently, but this is likely just the prelude to the main event.

The mortgage market meltdown, which began to surface in August 2007, exposed a massive vulnerability in our economic substructure. The problem goes far beyond the increasing default rate of certain "subprime" loans; What is currently roiling the markets is the prospect of billions (if not trillions) of dollars of "derivative" contracts possibly being found to be worthless. This is the dirty secret no one seems willing to admit publicly.

The current crisis actually began in August when a French corporation tried using mortgage-backed securities as collateral for a loan, and an evaluation of the intrinsic value of the securities found it to be zero! As word began to spread, many institutional investors were dismayed to find their portfolios affected, including pension funds. In many cases, commercial paper had been issued with grade AAA rating (due to the reputation of the issuing firm), but were found to have collateralized subprime mortgage debt rolled up within.

My intuitive take on this: What we see now is only the beginning of the unraveling of our economic system. The Federal Reserve and other regulators are working desperately to maintain liquidity and to conceal the extent of the problem in hopes of forestalling a more widespread panic. Probably no one knows the extent of the derivative bubble, and how far its tentacles reach into our economic structures. It’s not just about subprime mortgages, but has been slowly building for decades. Now that the bubble has begun to deflate, nothing can stop it. Thus, the extent of the problem will likely be revealed in coming months as pieces of the system begin to slowly crash into the ground.

From the intuitive perspective, this is not all doom and gloom. It must be understood that the derivative bubble resulted from vast amounts of greed and corruption. As the coming ascension begins to take form, the old corrupt structures of society will begin to collapse. This will cause widespread fear and panic among those who fail to understand what is happening. Those who are vested in the corrupt system have reason to fear, for it’s going down.

As the new 4^th dimensional reality begins to reveal itself, I foresee intuitives who understand begin creating a new society. It will begin in small pockets, as groups of like-minded individuals began working together.