Glenn Beck: 12 Signs Economy May Tank

This is a rush transcript from "Glenn Beck," October 7, 2010. This copy may not be in its final form and may be updated.

GLENN BECK, HOST: Hello, America.

Last night — last night, I showed you the progressives. Actually, this is more than the progressives. This is the beginning of the progressive movement. These are the Fabian socialists here, what they are capable of.

And I showed you video, I'm not going to show you tonight that I think is just horrifying. I had so much mail last night. People said, oh my gosh — actually, many people said it was the most frightening show that we have done. I can relate. I remember the first day I found the Fabian socialists and you're like, how did you not know about any of this? How do you not know about what these people have done — and what they're capable of doing, and how they relate to today?

I showed you how they are seeking to mold a new world. Look. Here they are — molding a new world. They're hammering the world, into remolding it nearer to their heart's desire. The flames — fanning the flames, to set the world on fire so they can shape it. Shape a new world through the destruction of the current one.

And they're all coming in cover of darkness and here's their logo right here. There is their shield. What is it? The Fabian socialist is right here. It is a wolf in sheep's clothing. That's what it is.

Now, this is their idea. This isn't mine. This is — this is why I have had a problem and I say look, you want to have this discussion. Let's just have this discussion, let's have it out in the open.

But that's not what they do. These are the roots of modern progressivism, the Fabian society. The doctrine of inevitability of gradualism — what that — what does that mean? It means you just take things step by step by step before it's inevitable.

My son — I drink Coke Zero. Sorry about that, Coke. Now, I'm getting all kinds of mail, "How can you make a product, you know, drinking, you know, it was drunk by a monster, Glenn Beck?"

I drink Coke Zero. And my son comes up and he'll say, "Can I have a sip?" One. You can have a sip. He'll come back. "Can I have a sip?" All right.

Before you know it, he's got the can and he's just chugging the whole thing. Gradualism. It's inevitable. He is going to drink it — because I'm weak, I'm not necessarily paying attention. And before you know it, he's had the whole can. And then I'm getting yelled at by mom.

All right. I could say this 1,000 times and it still won't be enough. Progressives do not look at the world the same way you do. Who has as their logo a wolf in sheep's clothing?

When they gain control, it will turn ugly. Not because they're evil, just because they look at things radically different than you do. You saw their own words last night.

Man is not meant to be controlled. Man is meant to be free. But progressives and — progressive, like I said, Theodore Roosevelt in both parties and Fabian socialist believe that man cannot be free. They must tell you what to do, because you're too stupid. They are doing it for the common good. They are not doing it necessarily with malice in their hearts.

Man cannot be told what to eat, drink, drive or say. We are endowed by our Creator, with certain unalienable rights. But they don't believe in the creator, and that is the problem.

When people get a God complex, and try to be the bearer of certain rights, it ends poorly every time. The nudge, while often well-intended, always turns into a shove.

Look, I know you get this. But I am trying my best to give you information to help — you wake your neighbors up. I don't know what else I can do.

But the way of life in America is about to change. And that's not a good thing. Our corruption needs to change. Our treatment of each other, our coarseness — the things that all of us have contributed in this society, including me, our coarseness has to change. It has to.

Great things can happen in America when people believe and when they engage and when they work together. But bad things happen when people don't believe that bad things can happen because we're America.

We are entering a time when the leaves are changing. Let's look at the leaves of the tree. Are we going into winter? Or are we looking for green shoots? Is spring around the corner?

Remember, if you looked at that stain glass window, they had to put the — they had to put the globe into the fire. See the globe? See the color? It's not blue. It's hot. It's on fire. That's what you do with an anvil, you make it hot, you fan the flames with the billows, you make it hot and then you can pound it.

So, what are their goals and what are the conditions? How are they fanning the flames?

Well, let's look at the flames that are being fanned right now. You have to have a struggling economy — got that. High unemployment — sure. High dependence on government — 41 million people now are on U.S. food stamps, 41 million people.

You have to have uncertainty. You don't know what is going to happen tomorrow. And fear.

Alan Greenspan actually had the cojones to come out and say it's fear that is undermining the recovery. If we just knew the truth, everything would be peachy.

Really? Well, the government wouldn't even tell us the truth on the oil spill. Why would they tell us the truth for the love of Pete on the dollar?

I'm not sure what Alan Greenspan is reading. I want to thank Alan for stopping by after he caused the mess that we're in now or helped cause it. Alan actually was on television at one point saying, I don't even know what a CEO is. I mean, I couldn't even understand it.

Oh, really, Alan? Thank you. Why don't you just zip it for a while?

Maybe he's reading the White House blog and he's getting all this good news and all of these things that — hey, everything is great. The people are being scaredy-cats.

Well, I think if you read the newspaper and you say, "We are great," you're in denial. I was reading the I told you about this yesterday. They had a list of a bunch of troubling signs on the economy. You don't have to go — you just read the front page of,, Drudge Report, just read it — just read it. And you can see the signs if you care to look.

I told you before, what you need to look is look at what smart money is doing. My grandfather told me that when he lived through the depression, the rich got richer. If you had money, you were OK. If you had a job, you were OK. Well, that implies that there were some people in the know. That should give you a hint. What are they doing?

Well, they certainly know what is coming before you do. This article shows where the smart money is going, along with other troublesome signs.

And here are just a few of them:

Corporate insiders are fleeing the U.S. stock market — as is George Soros.

"Zero Hedge" reports that insiders are selling to buying 2,341 to 1. What does that mean? Do you remember Ken Lay at Enron? He was at shareholder meeting saying, "You got to buy, everything is great." And meanwhile he is selling everything.

Well, this isn't much different. The officers and the directors of the companies are selling their stock, over 2,000 of them for every one that they're buying.

What does that tell you? And I'm talking about major corporations. And not ones that you think are like unstable. The uber wealthy, and I'm talking again about spooky dude George Soros billionaire wealthy. They are buying tons of gold, literally.

According to "Reuters," UBS is recommending top-tier client hold 7 percent of their asset in precious metals like gold. JPMorgan just reopened their gold vault which had been closed since 1990 amid soaring demand and prices for gold. Many are predicting that gold will start to become scarce.

By the way, I'd just like to ask. Weiner, are you investigating UBS or JPMorgan? Because you should, because they're recommending buying gold, too. Are they in on it, too?

Not coincidentally, gold hit a day-high record of more than $1,342.60 on Tuesday. Silver is at 30-year high. Platinum is at its highest since mid-May. Copper closed at a 26-month high.

Also, according to "Reuters," the U.S. Mint has run out of a type of highly pure gold coin that it had been selling amid record high prices of gold, but the mint is out. The United States Mint has depleted the inventory of 2010, American Buffalo one-ounce gold bullion coins. I have a hunch it isn't the demand of the, you know, the popularity of the Buffalo this season.

There is an unusually high option volume right now, which is an indicator that insiders know the leaves are changing. And they choose options over actually buying stock. The uber wealthy are also putting down large options against betting — betting against the S&P 500.

What does that mean? The smart money is saying the market is going to tank this month. Now, I'm hoping they're wrong. And a lot of people, I mean, don't listen just to the market — listen to your gut. I'm just telling you what is happening here.

Earlier in week, Japan cut interest to almost zero and set up a 5 trillion yen quantitative easing fund. What's that? That's what you do it when you want to increase the money supply — printing. The risk there, of course, is hyperinflation.

Here at home, the Federal Reserve in New York and the Federal Reserve in Chicago are begging the Fed to do more stimulus. The New York Fed chair said the current outlook on jobs and inflation is unacceptable. And that means another $1 trillion in stimulus.

I heard some clown running for office this week actually come out in Chicago and say, you know, this is such a myth that we're running a deficit. And we can't handle this debt.

Are you kidding me? Another $1 trillion in stimulus is being proposed now. Add that to the $787 billion stimulus of Barack Obama and the George Bush $700 billion TARP bailout, and the $17.4 billion auto bailout — current national debt, over $13 trillion. And Barack Obama by himself has added almost $2 trillion to that — himself.

By the way, I think it was Harvard University — or is it B.U.? I think it was Harvard University said the real debt, liabilities, is $200 trillion. All of the money on earth is about $50 trillion.

At the end of last month, the Feds announced $30 billion bailout of the U.S. wholesale credit union system. But they said, don't worry about it because it's all backed up — get this one — by $50 billion in troubled assets inherited from failed institutions.

So we're banking that the troubled assets that caused the other institutions to fail are somehow or another going to save these troubled assets. For — does that make any sense to you?

The dollar is continuing its slow decline. Slow decline. And every time I hear that, I think of spooky dude George Soros saying, "The dollar needs managed decline." Really? Does it?

Oil is currently at $84 a barrel. It held fairly steady there while gas prices are declining. Why — why is there demand for oil when we have record reserves of gasoline that no one is buying? Did you know that we have record reserves of gasoline?

We are in a slowdown now. Are you going on all the trips that you would like to? Why would we buy oil? Why? It's a commodity.

Oh, and one more thing. As the value of the dollar falls, it takes more of those dollars to buy that same barrel. The Saudis don't care. The Saudis are like, "I don't care what you do to your dollar. Well, you're inflating it by 2 percent. Oh, yes, here's the price of oil just went up 2 percent." That's the way it works.

And the last couple, perhaps the most disturbing: Bank of America, JPMorgan Chase, GMAC, all suspended foreclosures. Now, this is both good and bad. If there's bad things going on, we got to find out about it.

But I want you to think this one through, America. Think about it. You're not paying for your house because you're in trouble. And you're not making the payment and the banks refused to foreclosure on it because the government is saying they can't.

OK. That's good for you, the home buyer.

But, now, let's think this through. Let's look at everybody. I mean, I've never done anything — you know, I was going to say in my life, but I lived most of my life this way. I've tried not to do anything in the last 10 years of my life that isn't good for everybody involved. If I go to business, in business with somebody, if it's bad for them, it's bad for me then, too, in the end. It's got to be good for all of us.

So, let's look at all the partners. Is that good for the bank? OK? Do you think the neighbors will say, well, if you're not paying and they're not going to foreclosure, I'm kind of having tough times, too, I'm not going to pay either.

If I'm the bank, if I can't take the collateral, if you said you'd pay and you can't and now, I can't take the house and resell it, why would I take the risk? If I can't get the money back or the collateral, why would I take the risk if the government won't allow me to collect?

If there is corruption in the bank, it needs to be found and it needs to be found quickly. As this drags on, and it will, it brings the mortgage industry to a grinding halt.

If banks can't foreclosure, well then they can't loan either. Why would you loan if you can't be guaranteed you're going to get something back? And if banks won't loan, well then, how do you buy a house? How do you sell your house?

Meanwhile, Nancy Pelosi and 30 other geniuses in Congress are moving to investigate foreclosure practices of the U.S. mortgage lenders. Gee, I wonder if the mortgage companies will be painted as the evil corporations who are kicking people out in the street while the greedy, evil CEO gets a bonus.

Look for a punishment followed by a necessary takeover of another industry that's too-big-to-fail. Actually, it won't be a takeover, not in a socialistic sense, it will just be in a little bit of control. Let me go back to this book that I showed you yesterday. It's written by Stuart Chase.

I showed this and I told you we had a hard time finding this. You can't find this in New York. We had to go to, I think, to a library in Arkansas to actually find it. This isn't a well-known book.

It is written by Stuart Chase, "The Road We Are Traveling," 1914-1942. This is what he said — he said, something is happening to capitalism. He wrote this in the 1940s. Something is happening to capitalism, it's either turning into fascism, communism or state capitalism, which is what China is
— which they say now is the new model.

He says free enterprise, but we're just going to call it turning into something marked "x."

When he gets to property, he says, "There's not much taking over of property or industries in the old socialistic sense." Listen to this — "The formula appears to be control without ownership. It is interesting to recall the same formula is used by the management of great corporations in depriving stockholders of power."

You got it? Who is this guy? We should know this, man, because he is the guy who coined the phrase the "New Deal."

If you look at what he talks about in the '40s about what's coming and how you just take over industries, you don't just seize them because that's socialistic — it is exactly what Barack Obama has done. They took over control of industries.

Put yourself in the progressive mindset. Put yourself — put the stained glass window back up. Put yourself in the progressive mindset that the free market is evil and must be stopped.

They are pounding at the globe to reshape it nearer to their heart's desire. I'll have more on that in a few minutes because that's one line of a very famous poem that people don't know. And you have to understand the poem.

Not enough people get that there are people on earth that want to remake the globe, fundamentally transform. Progressives have been playing this game for a very long time. And it is a vicious cycle and it only ends up in even more government control.

Back in a minute.

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