It is now self-evident to any sentient being (excludes CNBC shills, Wall Street shyster economists, and Keynesian loving politicians) the mountainous level of unpayable global debt is about to crash down like an avalanche upon hundreds of millions of willfully ignorant citizens who trusted their politician leaders and the central bankers who created the debt out of thin air. McKinsey produced a report last year showing the world had added $57 trillion of debt between 2008 and the 2nd quarter of 2014, with global debt to GDP reaching 286%.

The global economy has only deteriorated since mid-2014, with politicians and central bankers accelerating the issuance of debt. These deranged psychopaths have added in excess of $70 trillion of debt in the last eight years, a 50% increase. With $142 trillion of global debt enough to collapse the global economy in 2008, only a lunatic would implement a “solution” that increased global debt to $212 trillion over the next seven years thinking that would solve a problem created by too much debt.

The truth is, these central bankers and captured politicians knew this massive issuance of more unpayable debt wouldn’t solve anything. Their goal was to keep the global economy afloat so their banker owners and corporate masters would not have to accept the consequences of their criminal actions and could keep their pillaging of global wealth going unabated.

The issuance of debt and easy money policies of the Fed and their foreign central banker co-conspirators functioned to drive equity prices to all-time highs in 2015, but the debt issuance and money printing needs to increase exponentially in order keep stock markets rising. Once the QE spigot was shut off markets have flattened and are now falling hard. You can sense the desperation among the financial elite. The desperation is borne out by the frantic reckless measures taken by central bankers and politicians since 2008.

  • 637 rate cuts since Bear Stearns
  • $12.3 trillion of asset purchases by global central banks in the past 8 years
  • $8.3 trillion of global government debt currently yielding 0% or less
  • 489 million people currently living in countries with official negative rates policies (i.e. Japan, Eurozone, Switzerland, Sweden, Denmark)
  • -0.92%, the most negative yield in the world (2-year Swiss government bond)

Massive levels of debt and negative interest rates have done nothing to revive U.S., European or Asian economies. The natives are growing restless, as the early electoral success of political outsiders like Trump and Sanders substantiates. Far right parties in Europe are gaining traction as hordes of Muslim refugees overwhelm their countries. Central bankers, who formerly graced the covers of Time Magazine as saviors and heroes, are now being revealed as nothing more than glorified money printers with PhDs and no plan B.

The trillions in low grade junk bonds are beginning to go bad. The bond market is the canary in the coalmine. A tsunami of defaults is approaching the shoreline, investors are running for the hills, and deranged central bankers are telling people to come a see the colorful shells in the surf. As John Hussman points out, following their advice will be fatal.

Despite short-term interest rates being only a whisper above zero, we increasingly hear assertions that “financial conditions have tightened.” Now, understand that the reason they’ve “tightened” is that low-grade borrowers were able to issue a mountain of sketchy debt to yield-seeking speculators in recent years, encouraged by the Federal Reserve’s deranged program of quantitative easing, and that debt is beginning to be recognized as such. As default risk emerges and investors become more risk-averse, low-grade credit has weakened markedly. The correct conclusion to draw is that the consequences of misguided policies are predictably coming home to roost. But in the labyrinth of theoretically appealing but factually baseless notions that fill the minds of contemporary central bankers, the immediate temptation is to consider a return to the same misguided policies that got us here in the first place, just more aggressively.

Based on the CDS market, fear is rising rapidly and European bank stocks are collapsing faster than they did in 2008. The Too Big To Trust Wall Street banks have seen their stocks fall 25% thus far. Bank debt has fallen even faster. The lying and denials by bank CEOs sounds exactly like the summer of 2008. The most smoke is coming from Deutsche Bank, and where there’s smoke there’s fire. The papering over of billions in bad debt with more bad debt is reaching its logical and expected disastrous conclusion. John Hussman notes when credit default swaps soar, the massive level of defaults are only a quarter or two away, despite the propaganda and lies perpetuated by Wall Street to cover their asses as they scramble to escape again.

Credit default swaps continued to soar last week, particularly among European banks. Given that risks surrounding China and the energy sector are widely discussed, European banks continue to have my vote for “most likely crisis from left field.”

In the fixed income market, we wouldn’t touch low-grade credit at present. Once credit spreads widen sharply, the default cycle tends to kick in several quarters later. The present situation is much like what we observed in early 2008, when we argued that it was impossible for financial companies to simply “come clean” about bad debts, because then as now, the bulk of the defaults were still to come.

The mainstream corporate media has been assuring the masses the recent 10% to 20% plunge in stock market indexes is just a temporary hiccup and isn’t anything like the 2008 worldwide financial collapse. They’re right. The situation today is far more dire and widespread than it was in 2008. Global debt is 50% higher, rates are at zero or below, the global economy is already in recession, with war and civil chaos spreading around the globe.

There are no more rabbits for central bankers to pull out of their hats. U.S. annual deficits are headed to $1 trillion without Keynesian shovel ready stimulus packages. The Fed increased their balance sheet fivefold while creating speculative bubbles in stocks, bonds and real estate simultaneously. As John Hussman points out, the bubbles are bursting again and economic collapse is baked in the cake.

The Fed’s real policy error, as it was during the housing bubble, was to hold interest rates so low for so long in the first place, encouraging years of yield-seeking speculation and malinvestment by doing so. Put simply, the Federal Reserve has created the third speculative bubble in 15 years in return for real economic improvements that amount to literally a fraction of 1% from where we would otherwise have been.

The entire global economy seems condemned to repeatedly suffer from deranged central bankers that wholly disregard the weak effect size of monetary policy on policy targets like employment and inflation, and equally disregard their responsibility for the disruptive economic collapses that have followed on the heels of Fed-induced yield-seeking speculation.

This stock market crash in progress is following the exact pattern exhibited in prior crash periods. The market has gone nowhere since QE3 ceased and had fallen by 14% since November. The tremendous rally on Friday is nothing but the beginning of a 5% to 8% retracement of the initial loss. Once this head fake lures in more muppets, the bottom will drop out. As Hussman discusses below this crash is following the 2000 and 2007 pattern. When the 1,800 level is breached a vertical drop to the 1,500’s will happen in the blink of an eye. That will get the attention of a few 401k holders.

With regard to the stock market, I suspect that the first event in the completion of the current market cycle may be a vertical loss that would put the S&P 500 in the mid-1500’s in short order. I’ve often noted the historical signature of market crashes: a sustained period of overvalued, overbought, overbullish conditions that is then coupled with a clear deterioration in market internals and hostile yield trends, particularly in the form of widening credit spreads. See my comments from the 2000 and 2007 market peaks about the identical syndrome at those points. Historically, what we know as “crashes” have followed only after a compressed, initial market loss on the order of about 14%, a recovery that retraces 1/3 to 2/3 of the initial decline; and finally a break below that initial low. That threshold is currently best delineated by the 1800-1820 level on the S&P 500.

Not only have deranged central bankers created the conditions for a catastrophic collapse, but they have encouraged crazed sociopathic mega-corp CEOs to borrow billions to buy back their own stocks at all-time high prices. These Ivy League educated MBA lemmings have done this to boost their compensation because they are too incompetent to grow their businesses through true investment. These rocket scientists have managed to lose $126 billion on their highly leveraged stock purchases in the past three years. Some of the top losers include:

  • IBM – $9.8 billion of losses
  • American Express – $4.1 billion of losses
  • Chevron – $2.8 billion of losses
  • Macy’s – $1.5 billion of losses
  • Ford – $500 million of losses
  • Starwood Resorts – $500 million of losses

The CEOs of these companies should be fired for their idiocy, greed and ineptitude. Instead they will receive multi-million dollar bonuses. Ben Bernanke, Janet Yellen and their cohorts at the Federal Reserve have already destroyed the lives of millions of senior citizens and savers with their deranged zero interest rate policy while contributing to the wage stagnation of the middle class with their QE policy.

Janet Yellen looked like a deer in headlights last week while testifying before Congress. She realizes, along with the other central bankers around the world, their Keynesian lunacy is about to create a crisis that will make 2008 seem like a walk in the park. The coming destruction of trillions in wealth ($1.2 trillion already), along with the accelerating currency wars, and the further impoverishment of billions will ultimately lead to global war.

In short, what we should fear is not the slight impact of recent policy normalizations, but the violent, delayed, yet inevitable consequences of years of speculative distortions that are already fully baked in the cake. What we should fear are the Fed’s repeated and deranged attempts to achieve weak effects on the real economy, at the cost of speculative distortions that exact ten times the damage when they unwind. What we should fear is more of the same Fed recklessness that encouraged a yield-seeking bubble in mortgage debt, enabling a housing bubble that collapsed to create the worst economic crisis since the Great Depression. What we should fear is Fed policy that has encouraged a yield-seeking bubble in equities, debt-financed stock repurchases, and covenant-lite junk debt; that has carried capitalization-weighted valuations to the second greatest extreme in history other than the 2000 peak, and median equity valuations to the highest level ever recorded. That’s exactly what the Fed has done in recent years, and the cost of that unwinding is still ahead.

The fiat currency system, fractional reserve banking fraud, insane Keynesian fiscal policies, and consumer debt based consumption economy are mathematically unsustainable, so they won’t be sustained. The world is about to sit down to a banquet of consequences, served by deranged central bankers.

“Sooner or later we all sit down to a banquet of consequences”Robert Louis Stevenson



  1. Or, they just counterfeit another batch of money, and this goes away for another year or so. Kick that can. Liquidity is the new solvency.

  2. People didn’t seem to learn anything from the 2007-2008 crash.
    Seduced by glitzy advertising, they continue to enslave themselves in debt.
    They can’t say no to their children as they go into college debt, as the child is pursuing a worthless degree in gender studies so they can ‘find themselves’.
    The new car aroma gone in weeks, yet the new car loan is for eight years.
    Worse of all they look to the government as some type of ‘savior’ instead of looking inward.

  3. Great article. At the risk of repeating myself, all that remains to be determined is what emerges from the dust clouds after this global fiat system dies. 1971 to ?

    Have those responsible for creating this mess got an exit strategy? One hopes so but the arrogance and conceit we see from these central planners would suggest they never conceived they might be wrong. Gold accumulation by China, Russia and other nations suggests that they see the writing on the wall.

  4. “The present widely-followed “support” shelf for the S&P 500 is roughly 14% below the 2015 market peak, but most domestic and international indices have already broken corresponding support levels. Given the obscene valuations at the 2015 peak, my impression is that a run-of-the-mill completion of the current market cycle (neither an unusual nor worst-case scenario from a historical perspective) would comprise an additional market decline of roughly 40-50% from present levels. I certainly don’t expect that kind of market loss in one fell swoop. Rather, my immediate concern is that the first leg of this decline could be quite steep.

    Now, perhaps the rally since Friday is instead a “successful retest” of prior support. Given that leading economic data, coupled with poor market internals, continue to indicate an imminent U.S. recession, I tend to doubt that possibility, but we’ll take the evidence as it arrives. Despite elevated valuations and deteriorating economic conditions in the U.S. and elsewhere, our immediate downside concerns would ease considerably in the event market internals were to clearly improve on our measures. Here and now, investors should ensure that their market exposures and investment horizons would allow them to tolerate a potential 40-50% market loss over the completion of this market cycle without abandoning their discipline.

    Meanwhile, remember that investors, in aggregate, cannot exit the stock market, or any other market for that matter. Every security that is issued, including base money created by the Federal Reserve, must be held by some investor, at every point in time, in precisely the form it was issued, until that security is retired. The only question is how eager buyers are, relative to sellers. Prices don’t advance because money goes “into” stocks. Every dollar that a stock buyer brings into the market goes right back out in the hands of a seller. No, prices advance because buyers are more eager than sellers. Prices decline because sellers are more eager than buyers.

    My concern is that support for an increasingly risk-averse market now rests on the fragile resolve of dip-buying speculators primed to cut-and-run at exactly the same nearby support level, beyond which stands a rather shallow pool of powder-dry, value-conscious potential buyers who remain unwilling to commit that powder anywhere near current levels, in a risk-averse market where further central bank intervention is likely to be futile.”

    John Hussman

  5. “Anyone claiming that America’s economy is in decline is peddling fiction.” – President Obama, 2015 State of the Union

    We should move quickly to a cashless economy so we can introduce negative rates well below 1 percent.

    —A recent Morgan Stanley presentation at Davos

  6. Over-Exuberant Socialist Jew confronts Over-Exuberant Capitalist Jew, both whom rely on the Central Jew bankers printing press to create their Messianic Utopian dream right here on earth… what’s a poor goy to do?

    Bernie Sanders Blasts Alan Greenspan – Greatest Bern (7/15/2003)

  7. Next is everyone receiving ‘helicopter money’, with the caveat that the money must be spent on consumer goods within a certain time frame, or said money becomes worthless.

  8. We are currently engaged in a financial war, against our imagined enemies of the past.
    This is the new face of war, where everyone is involved, and must make sacrifices.

    The real problem we face, (other than peak debt and peak growth) is that we are overpopulated as a species, and nobody has yet to declare this as the existential threat to humanity.

    Anyone who would publicly declare this as “the” problem, would need to also provide a solution, and unfortunately this is not a political platform anyone is willing to take a stand on.

    I think the ultimate end of this financial war, is going to be the beginning a shooting war and the winner is going to have to wipe out the old debt, so that the new system can be built without the burden of “old money”

    A system where debt is not seen as an asset, but as a liability, would be a good place to start.

  9. The market is back up today trying to break the 16,000 ceiling… happy days are here again!!!

    “Dow futures Rally Almost 200 Points as Analysts Call Market Bottom” – Marketwatch Feb15

    Ya that advise and $2.25 otta buy you a cup of coffee at the local Starbucks – but that’s about it

    It’s called “retracement” – “a dead cat bounce”

    Best to stock up on silver, gold, food and bullets right now, because it’s going to get a lot worse before it gets better.

    Good post Admin………

  10. It is necessary that I should die for my people, but my spirit will rise again from the grave and the world will know that I was right… Adolf Hitler 1945.

    In 1933 one of the first things Hitler did was take back control of the nation’s currency from the central banks in Germany. From that moment until 1940 Germany experience an economic miracle. In those few years Germany became a world super power. Think about it.

  11. You just dont get it do you? In 2008 they printed 12 trillion out of thin air and solved everything. Now with the situation 10 times worse , They only need to print 120 trillion . Movie recomodation WHOS MINDING THE MINT. Print print print.

    1. This is How Financial Chaos Begins

      by Wolf Richter • February 12, 2016

      It’s not contained.

      There are over $1.8 trillion of US junk bonds outstanding. It’s the lifeblood of over-indebted corporate America. When yields began to soar over a year ago, and liquidity began to dry up at the bottom of the scale, it was “contained.”

      Yet contagion has spread from energy, metals, and mining to other industries and up the scale. According to UBS, about $1 trillion of these junk bonds are now “stressed” or “distressed.” And the entire corporate bond market, which is far larger than the stock market, is getting antsy.

      The average yield of CCC or lower-rated junk bonds hit the 20% mark a week ago. The last time yields had jumped to that level was on September 20, 2008, in the panic after the Lehman bankruptcy, as we pointed out. Today, that average yield is nearly 22%!

      Today even the average yield spread between those bonds and US Treasuries has breached the 20% mark. Last time this happened was on October 6, 2008, during the post-Lehman panic:

  12. SpecOpsAlpha says:

    Next is everyone receiving ‘helicopter money’, with the caveat that the money must be spent on consumer goods within a certain time frame, or said money becomes worthless.

    Works for me….I’ll buy guns,ammo,precious metals and other prepper stuff .

    pablo says:

    A system where debt is not seen as an asset, but as a liability, would be a good place to start.

    We have a system Pablo…..It’s called Generally Accepted Accounting Rules . Like everything else CONgress doesn’t have to follow them…just everyone else ( Banks don’t have to follow Mark To Market rules ) .

  13. @Admin: Kudos, Jim for hitting another one out of the park.

    @Flash: I was just about to post that video, so thanks for saving me the trouble. Whether you are a Bernie supporter or not you should watch it to see Greenspan’s reaction.

  14. ALL this can be looked at two ways,one,your going to a SLAVE labor camp and work off the debt,OR two,your going to have to fight your own government and police gangs when they come to take you to the slave labor camps,NOW I know most americans are to FAT and STUPID to work in a slave labor camp,SO they’ll have to be killed,Oboozo has already sold your children to russia and china,and all your land to china,SO theres no debate about whats coming,THE ONLY two things americans should be talking about now is,WILL the people allow this to pass,and HOW FAST can you get to know the LORD,cause 90% of you will die in the coming WAR,and ALL those who were willfully ignorant,Will be the first to die,SO if your eyes are truly open,YOU’VE already realized this can’t be avoided,Food,Water,And lots and lots of ammo,or you have NO CHANCE TO SURVIVE AT ALL..BUT IF I WERE YOU,I’d be getting into tall grass,THEY will be coming for the RED LIST people here soon…….

  15. Polosi and Obama want to force US citizen into MYRA with 100 dollar a day penalty.Forced to buy worthless toilet paper US bonds

  16. Excellent artical !! Everyone had better learn basic survival sills. ROUGH times are coming. It’s pretty much inevitable. Knowing how to survive without electric power (after EMP attack), and knowing how to live off the land, may be the ONLY way a family will survive !!! Americans standard of living is probably about to take a big PLUNGE.

  17. Buy gold and silver…..and take part of your “money” (those darn federal reserve notes you need to use at this time) and your loans (refinance), put them into and with a Credit Union instead of a bank. and because there is no law that requires an individual to pay income taxes, stop doing so… (there is a 20K reward if you can find that law!) starve them out forever.
    In part;
    Tension has always existed between member-owned cooperative credit unions and for-profit banks in the United States. When credit unions were first organizing in the US in the early 20th century, the banking industry was opposed, remaining so ever since.
    The FDIC does not provide deposit insurance for credit unions, which are insured by the National Credit Union Administration (NCUA).
    The National Credit Union Administration (NCUA) is the independent federal agency created by the U.S. Congress to regulate, charter, and supervise federal credit unions
    A credit union is a member-owned financial cooperative, democratically controlled by its members, and operated for the purpose of promoting thrift, providing credit at competitive rates, and providing other financial services to its members.[1][2][3]….
    Not-for-profit status
    In the credit union context, “not-for-profit” should not be confused with “non-profit” charities or similar organizations.[20] Credit unions are “not-for-profit” because they operate to serve their members rather than to maximize profits.[21][22][23]

  18. This is a good article and I will post it on Straight Line Logic later today. I especially agree with the conclusion that this crisis will be far worse than 2008’s. I just posted an article, “Life, or Death?” on the movitvations of those who are destroying our country and the world, which amplifies some of your themes. You might want to post it. Thanks for taking a look.

  19. Wow , who owns the Privately owned central banks? I mean the Deranged central banks?

    Thank you for presenting this info Admin. If it helps even just a few to get out of their normalcy bias ,

    Then Astounding job !

    @ agua suckers bet , there is no such law , I read the entire irs so called tax laws once upon a time . There is no such thing. Kinda like voluntary compliance lol . WTF is that supposed to mean . The whole thing is a sham .
    Best definition of the presumed law is ” At The Point of a Gun , You Will Comply’

    How can a privately owned Corporation extract my labor from me? Oh , at the point of a gun sorry I forgot lol
    As always , no disrespect intended im my responses , well every once in a while , maybe , tho not this one )

  20. When the whip comes down. Bailout for banksters , jail for those who don’t own a Congress critter…. but, no worries students…Bernie will make all those boo boos go away.

    HOUSTON (FOX 26) – Believe it or not, the US Marshals Service in Houston is arresting people for not paying their outstanding federal student loans.

    Paul Aker says he was arrested at his home last week for a $1500 federal student loan he received in 1987.

    He says seven deputy US Marshals showed up at his home with guns and took him to federal court where he had to sign a payment plan for the 29-year-old school loan.

    Congressman Gene Green says the federal government is now using private debt collectors to go after those who owe student loans.

    Green says as a result, those attorneys and debt collectors are getting judgements in federal court and asking judges to use the US Marshals Service to arrest those who have failed to pay their federal student loans.

    Our reliable source with the US Marshal in Houston say Aker isn’t the first and won’t be the last.

    They have to serve anywhere from 1200 to 1500 warrants to people who have failed to pay their federal student loans.

  21. The Rothchilds are the richest and most powerful family in the world. Estimates have been made that by 1850 the Rothchilds were worth over $10 billion. Some researchers believe that their fortune today exceeds $100 trillion. It was they and their minions that created the central bank and eliminated anyone that got in their way.They are the hidden hand of governments around the globe and we are living in a financial world they created. If anyone benifits from this debt crisis it’s them and most of the blame should be placed at their door.

    In 1828 Andrew Jackson took a run at the US Presidency. Throughout his campaign he railed against the international bankers who controlled the Bank of the United States. Jackson ranted, “You are a den of vipers. I intend to expose you and by Eternal God I will rout you out. If the people understood the rank injustices of our money and banking system there would be a revolution before morning.

    The time is ripe for just that

  22. I just finished Tragedy and Hope 101 by Joseph Plummer. A summation of Carroll Quigley’s 1300 page treatise. I intuited all that was in there, but eye opening none the less. Great summations of money, control, power and the takeover of the United States.. (2013 was a VERY bad year!!). I recommend it highly, but have to assume the studied minds here at this wonderful site may have already done so. It will definitely be required reading for my 19 year old freshman son when he comes back for spring break from Liberty University. Government major. Maybe this will either change his mind or make him more resolved. So far, he can practically teach the Constitution and history courses.

  23. When the sugar hits the fan Hope no one has more than a few dollars in a bank or financial institution.Does anyone trust a banker?????

  24. Not directly related to the fine article ……. except the blowing-up-the-world part.

    The Saudis are not just just holding any old military exercise …… they are MASSIVE !

    “350,000 soldiers, 20,000 tanks, 2,450 warplanes and 460 military helicopters are reportedly gathering for these “military exercises”.

    Twenty THOUSAND fuckin’ tanks!!??

  25. “Sooner or later we all sit down to a banquet of consequences”

    No, the people who created the mess will walk just like always. It would be more accurate to write “Eventually the middle class taxpayer will be left holding the bag, again.”

  26. The details show that real wages for most U.S. workers have been relatively stagnant since the 1970s, while those for the top 1 percent have increased 156 percent, and those for the top 0.1 percent have increased 362 percent, according to a report by the Economic Policy Institute.

    Those trends resulted in the poorest 20 percent of Americans receiving just 3.6 percent of the national income in 2014, down from 5.7 percent in 1974. The upper 20 percent, meanwhile, received nearly half of U.S. income in 2014, up from about 40 percent in 1974, according to Census Bureau statistics.”

    This is what happens when wage growth disappears and inflation continues to expand. To keep up the pretense that the middle class was thriving debt products allowed people to spend money they don’t have. This is how the bottom 40 percent of Americans actually own negative wealth. They simply have more debt than assets.

  27. Procrastinator, you are correct. “The global economy” is a print based system. For it to prosper, they have to print. So they will. So they do.

  28. “OK! Lets get one thing straight.”–Tom Hanks in Castaway.

    Admin–You make some good points. But…I take issue on several of them.

    I have often said that we don’t have a debt problem in America, we have a credit problem. Credit and debt are two side of the same coin. Like a horse and carriage, you can’t have one without the other.
    You can’t have debt unless some one issues you credit. A borrower can take on debt as he is on the hook for paying the contractual obligation which eliminates the debt over time.

    To say that “…willfully ignorant citizens who trusted their politician leaders and the central bankers who created the debt out of thin air.” is to confuse what debt and credit really are. The political leaders took on debt in the name of the American people, bankers issued credit ‘out of thin air’. And…” with politicians and central bankers accelerating the issuance of debt.”(not). Debt is not credit and that’s an important difference. One last time, “debt is not issued’, credit is issued and debt is the result.

    Admin–I like John Hussman, however–“Now, understand that the reason they’ve “tightened” is that low-grade borrowers” (What low-grade borrowers?) “were able to issue a mountain of sketchy debt” (How?) “to yield-seeking speculators…” After reading this paragraph, I was left confused. Never the less, his other quotes were more lucid.

    I take exception to labeling the central bankers ‘deranged’ as that might play to the beliefs of the dear readers, it has yet to be proven. Labeling them deranged solves the problem, no further inquiry necessary. “Move on, nothing to see here.” However…I entertain the idea that they may in fact be quite rational. It’s how you view their objectives that determine their sanity. I’m not willing to dismiss them so casually. I think that their actions may reveal their motives over time, but it may be to soon to come to a firm conclusion.

    To be continued…

  29. pablo made some good points and other commenters have also made good points. But, I feel we are kicking a ‘dead horse’. We know this stuff. How does it help us understand what is happening? What conclusions can we draw, pending further review? Below are some of my insights, which may or may not be real.

    Some of the commenters talked about ‘negative interest rates’ which aren’t interest at all. Interest is the return on capital lent. It compensates the lender for the loss of use of his money, risk that the loan won’t be paid back, and the deterioration (depreciation) of the currency over the time frame of the loan. What is being discussed is the fee that the banks want to charge you for storing your money, the cost of providing that service, if you will. Why the confusing language of ‘negative interest rates’? hmmm!

    It is well ‘settled’ in American law that your deposit in a bank is, in fact, a loan to the bank. You are a creditor to the bank. An unsecured creditor, which is the worse kind of creditor. The bank is not storing your money for you, but using your money and paying you interest for that use. If the bank were truly storing your money, they would charge you a fee, not interest. The same as if you had a safe deposit box and you paid a fee. Why the duplicity in calling it ‘negative interest’?

    If the bankers were to charge you a fee for your deposit, it would imply that the bankers were performing a safekeeping function and that the deposit was yours and the bankers had a fiduciary responsibility to return your deposit upon demand and not steal it from you. Using the term ‘negative interest’ hides the real motive of the banks which is to steal your deposit. ‘Negative interest’ is a nonsensical term, it doesn’t exist. It’s use is to provide propriety for them and promote confusion for you.

    My Grandpappy always said that if you don’t fully understand a business deal, run in the other direction as fast as you can.

    It’s a fact, that banking has become wicked, it’s been turned upside down. It is well known that the borrower doesn’t set the interest rate. The lender sets the rate. Go to your local bank and ask for a loan and tell the banker that you will only pay him 1% per annum for that 30 yr. loan. You can pick yourself up off the sidewalk when he throws you out the door.

    Why is it then that you, as an unsecured lender to the bank. don’t set the interest rate that the banker (borrower) has to pay? The banker sets the rate, not you, why? …because you’ve been scammed into believing differently.

    I know what you’re saying–“The government has my back and is looking out for my ‘blind side and wouldn’t let the bankers scam me”. Does the government really have your back side?

    The traitorous, treacherous, Chris Dodd and Barney Frank, who’s names grace the ‘Dodd and Frank’ bill passed by CONgress to protect the taxpayer says that derivatives are the most secured creditors and that unsecured creditors, that’s you, will be left holding the ‘old maid’ should the banks get into trouble, again. Yup. the government has your back, all right. Was Dodd Frank enacted to protect you or was it to protect the government from taking on more credit, like the bail-out did and establish who’s first in line to be made whole? For those with brain freeze, it’s the second one.

    Back to credit. Credit has been said to be ‘bringing demand forward’. What that means is that you, when applying for credit, is bringing money from your future into the present to be spent now, in other words for consumption now. Your debt will be paid back by less consumption by you in the future. Debt is buying your future. When done by the banking establishment in cahoots with the government, it is asking the future generations to settle the debt. The ‘baby boomers’ love this. CREDIT IS ROBBING FROM THE FUTURE.

    The bankers have just about extended all the credit they can. The world is all tapped out on the borrowing side. No more money to steal from the future. What to do? Well, we will steal as much money as we can from the Past. That’s what ‘Negative Interest Rates’ are all about. Stealing money from the past. Money that you have already earned and put away in a savings account. That money represents your life’s blood, your time, and your effort. You get the Idea or do I have to sing it for you? ‘NEGATIVE INTEREST RATES’ IS ROBBING FROM THE PAST.

    When a corporation borrows money from a bank to buy back it’s stock, that corporation takes on debt. If that debt can’t be repaid, the bank can close on that corporation. The bank created money out of thin air and gave that credit to the corporation. Today money and credit are the same thing. So, who does the corporation, you, or anyone who takes out a loan owe the money? The bankers want you to believe that you owe it to them and you better pay up or we will take your company, your house, or your car. But, they created the money out of thin air. Where is the value given by the bankers? In truth, there was none. So, whom do you owe? It is the ones who gave you goods and services for that loan that’s who you owe. The bankers have cheated the real beneficiaries of that debt, the providers of goods and services, and usurped the real beneficiaries of their rightful due. It’s fraudulent and criminal. The bankers have created a ‘daisy chain of debt’ never to be extinguished, needing to grow evermore. It’s the ‘company store’. Gad, what a racket.

    This is why I say that banking as practiced today is wicked.

    There is a quote going around. I don’t know if it is true as there doesn’t seem to be any record of it having been said. But, it’s appropriate today. It was purported to be said by Josiah Stamp, President of the Bank of England in the 1920s, the second richest man in Britain.

    “Banking was conceived in iniquity and was born in sin. The Bankers own the Earth. Take it away from them, but leave them the power to create deposits, and with the flick of a pen they will create enough deposits to buy it back again. However, take it away from them, and all the fortunes like mine will disappear, and they ought to disappear, for this world would be a happier and better world to live in. But if you wish to remain slaves of the Bankers and pay for the cost of your own slavery, let them continue to create deposits.” — J. Stamp By deposits, he means credits into the account of another.


    “I served in all commissioned ranks from a second Lieutenant to a Major General. And during that time, I spent most of my time being a high-class muscle man for Big Business, for Wall Street, and for the bankers. In short, I was a racketeer for capitalism.”
    –Major General USMC Smedley Butler

    And…That’s my understanding of the world according to Garp.

  30. There’s many more moves the elite can use to keep the music going awhile longer. It will lull many into complacency and stop them from preparing immediately. Why prepare as soon as possible? Because nothing is getting cheaper, especially food.

    Don’t dick around waiting for some ‘event’ to convince you it’s time to stock up, do it now.


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