Guest Post by Martin Armstrong
It’s not my revenge, it’s fiscal mismanagement. Look, this is the chaos we have coming and sorry, it is the beginning, not the end. It’s not even a fluke or a blip. So get used to it. Indeed, the Fed has lost control of short-term rates. Trump can jawbone all he wants for zero to negative rates. Sorry! The free markets are showing something else lies in wait.
The Repo Rate reached a high of 10% by about 9 am just before the stock market opened. The fed funds rate was testing the Fed’s upper limit. The Fed was forced to intervene I believe for the first time since the 2008 crisis.
On Tuesday, the Fed offered $75 billion through its facility and received $53 billion of demand from borrowers who swap AAA Treasury holdings for cash at minimal rates. On Wednesday, the Fed again offered the same $75 billion facility and received this time $80 billion in bids.
Overnight financing (REPO Rate) is a basic function which holds the economy together. Those who trade on leverage rely on the REPO market (Broker-dealers, hedge funds, and institutional). It is rarely written about for it is not generally seen by the public. The events of the past few days is a clear warning sign of what I have been yelling about which is on the horizon. The central banks are TRAPPED and in Europe, they have destroyed their bond market with more than $15 trillion and perhaps up to $17 trillion in negative-yielding bonds ($1 trillion is corporate).
Before the 2007-2009 crisis, the Repo Rate was actually the only financial instrument which paid a rate of return that could become NEGATIVE under normal market conditions. NEGATIVE Repo Rates can happen when there is a shortage of cash or particular collateral security, like negative-yielding bonds, are put up to borrow against. Therefore, trying to borrow against a negative-yielding bond can present a crisis. The standard Repo contracts, such as the Global Master Repurchase Agreement (GMRA), have been drafted under the implicit assumption that general collateral (GC) Repo Rates would only ever be positive.
What has transpired is the buyers of these negative bonds have been simply traders. They have not bought this stuff to actually hold to maturity. They have been happy to trade them assuming rates would continue lower so it would be a bond rally. We are looking at SERIOUS credit risk once again but instead of the time bombs being mortgage-backed securities, this time it will be negative-yielding bonds issued by governments. The bond markets have been converted into a child’s game of musical chairs. When the music stops, someone will be left holding negative-yielding bonds that will only be salable at even deeper discounts of perhaps as great as 50% in a few years.
About 30% of the bonds issued by governments and companies worldwide are trading at negative yields which is now about $17tn of outstanding debt. This unprecedented reversal of normal practice has raised profound questions about the outlook for bonds. This is seriously impacting core holding for institutional investors.
The interest rate risk that negative-yielding bonds carry is beyond unbelievable. It is totally artificial supported only by punters. The financial system simply doesn’t work with negative rates and this is also contributing to shortages of cash for Repo markets. A slight rise in interest rates will create a massive debt crisis and if you undermine the bond market, that is what creates great depressions. Negative yields have been confined to places outside the USA and the intervention of the Fed implies they are not prepared to allow negative rates to undermine the US economy as they have done in Europe.
Unlike the 2008 crisis where the time bombs were private debt, Tuesday’s abrupt rise in short-term rates wasn’t obvious that the financial system was in trouble because sovereign debt is assumed to be AAA and risk-free. Not sure whoever started that huge lie.
Nevertheless, we have a convergence of forces which are creating the perfect financial storm on the horizon. Immediately, corporate tax payments are due so corps have less cash to sell overnight. Then there are big Treasury auctions as deficits continue to rise for governments always borrow, yet never pay off the debt as if this can continue without end.
I have been warning that we are headed into a major financial crisis that will be a liquidity event which involves government – not simply the private sector as was the case in 2008. So buckle-up. I have been warning this is something NOBODY has ever witnessed before and if Socrates was actually alive, he would be screaming bloody-murder by now. The Institutional Bond Report will be going out to all our Institutional Clients. Those who have been thinking about joining our Institutional client base can purchase a copy $3,500.
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Negative, meaning below zero, wtf.
That’s correct You get less back after 10 years
NIRP = cashless society.
Cashless society = Mark of beast
Mark of beast = Totalitarian control
https://www.henrymakow.com/2019/09/central-banks-pump-poisoned-blood.html
Three things going on here; likely not quite as cut and dry as you make it.
Revelation 13:17 KJB… “And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.”
No doubt the mark, the name or the number all have extreme economic consequences. Praise the Lord I ain’t gonna be around to see it.
NY Fed to inject $75 billion per day into money markets up to October 10th.
I usually don’t get my financial news from Yayhoo but it seems interesting it would scoop ZeroHedge.
https://news.yahoo.com/ny-fed-pump-75-bn-money-markets-daily-154943871.html
Got gold? A nice devaluation in the dollar is coming.
Big haircuts in bonds, too. I can recall when the GM bondholders got royally screwed a decade ago. BOHICA.
We have had negative interest rates since 1914. From 1914 to 1921 the dollar lost 70% of it’s total devaluation from 1914 to present.
What we are seeing is a less polite NYC type in your face theft. The MSM has orders to call it inflation instead of debasement. We are entering a stealth dollar devaluation and reset of PM’s prices. They will call it something else most likely. Like they changed Stimulus to QE and then Back to Stimulus.
When the credit markets seize up, everything comes to a stand still. Big trucks don’t roll, there goes food and fuel deliveries. Banks close their doors. Get prepared for this eventuality with knowing where you’ll get water. Have 3 months of food and 3 months worth of cash and the means to protect it. Know your neighbors. Shocks are coming. Build resiliency. Buy gold and silver while it is vastly suppressed in price and get rid of paper assets. Paper is the promise of future energy expenditure and the promise of people to pay the unpayable. Gold and silver represent energy already spent and stored. Did I tell you they are virtually giving the stuff away to keep you in paper assets?
The government will confiscate or force conversion of precious metals into fiat paper….and ban trading and conducting business with PM’s….then what? Happened many times before….
https://bonnerandpartners.com/how-executive-order-6102-doomed-america/
Yup. These minions of satan are multiple steps ahead of everyone. If this little group of TBP peons (and i don’t mean that as an insult) has it figured out …. to suggest these masters of the universe don’t is beyond the pale. Just part of a plan starting to become more and more apparent.
then as soon as they do, you convert that paper into some other tangible asset as soon as possible.
Best to begin doing so now if you haven’t already begun. I favor productive tangibles that will produce essential goods and services redeemable for something during a currency crisis, because precious metals can also be precarious metals in a crisis in which the doctor might prefer a dozen eggs to an undefined amount of gold or even silver.
Monte.
It will be a while before PM’s will have value for the reason you gave. Until the dust settles, it’s beans, bullets and bandaids.
Flea,
Yep, just added 10 baby chicks and expanding the orchard by 5 trees and 5 berry bushes.
Massive fall garden in…two new cold frames built…enough seeds stashed for many years.
Mark..
I hope you have a couple of broody hens, there won’t be any incubators unless they are powered by solar panels. Partridge hens are great mothers. So are Orpingtons. Of course a Silky hen will set baseballs if the can’t find an egg.
Done.
Martel,
Couldn’t get the link to transfer
ROOSEVELT’S GOLD?
Author: Don Stott | Publish Date: 08/26/2019
“Well, suppose they confiscate my gold just like Roosevelt did 75 years ago?” If I have heard that once, I must have heard it a hundred times. Did Roosevelt confiscate everyone’s gold back in 1933? If he did, how come there’s still a lot of it for sale in a thousand coin shops and numismatic dealers?
Let’s start at the beginning and see what really did happen. The first thing we must remember, is that America was in the midst of a severe depression, caused by loose money issued by the Federal Reserve, which they still are doing. There was such an enormous amount of “liquidity” floating around, as today, that everyone was buying stocks on margin of over 90% at times, which is not happening today. The stock market was on everyone’s lips and minds. Bootblacks and janitors were buying stocks. Stocks would supposedly go up forever, and there was no risk. Ha Ha. The market crumbled and crashed, leaving everyone out on the well known limb, owing for stocks which often times weren’t worth not much more than the paper on which they were printed. The result was that in fairly quick order, over 25% of the American work force was on the street selling apples, on the dole, or in bad shape in one way or another. Times were tough, to make it sound kind!
Roosevelt wanted to pull America out of the depression. He thought up all sorts of make-work schemes, and anything to put people to work. But he didn’t have any money. Remember, unlike now, the dollar was BACKED BY GOLD. He therefore needed all the gold he could get, so he could print more dollars to spend in placing more people in those make-work jobs. Everyone knew that gold and dollars were synonymous. Americans were carrying gold coins in their pockets just like they were money, which they were. Small, dime size gold coins were a dollar, and there were $5, $10 (Eagles) and $20 (double Eagles) coins in general circulation everywhere. Gold was money, dollars were money, and the two were the same. How could FDR get gold, so he could print more dollars to spend, to get us out of the depression?
He also had the farmers on his neck. They wanted higher prices for their crops, and there wasn’t any money around to give to them. On March 9th, 1933, FDR declared a “Bank Holiday,” with all the banks closed. Bank “runs” had posed another problem for the “New Deal,” as Roosevelt called his massive move towards abject socialism. People were closing their savings accounts and bouncing checks by the millions, just to survive in some cases. Today, we have millions of credit cards maxed out for the same reason. There was no FDIC then, so no savings account was insured. (Today, the FDIC has less than a nickel in its accounts for every $100 worth of insurance). Banks had made huge margin loans on now worthless stocks, and they had no money to pay for savings account closures. FDR allowed they could close for a ‘holiday,” so they could get their troops in order. Many didn’t, and never re-opened again. My Parents lost money in a bank which never re-opened.
Banks were in deep trouble. People were demanding their money, and the banks didn’t have any. There was no FDIC, and dollars were backed by gold. The treasury had to have gold to print more dollars to make everyone happy, banks whole, and to fund make-work projects. What to do? Get some gold! How? The mines were producing all they could, but more was needed. More dollars were needed for stuff that didn’t help get us out of the depression at all. Nothing Roosevelt did, got us out of the depression, or even help a bit. As a final effort, he outraged the Japanese enough that they bombed Pearl Harbor, and we were at war. The depression was over.
Roosevelt had the brilliant idea that he would order everyone to turn in their gold in exchange for paper dollars, which were backed by gold. On April 5, 1933, Roosevelt issued Executive Order # 6012, which ordered Americans to surrender their gold to the government by May 1st, 1933. Violations were to be subjected to a $1,000 fine and as much as ten years in prison. First of all, an Executive Order is not in the Constitution, and an Executive Order could never levy a $1,000 fine or ten years in the slammer! But Americans were broke, miserable, and that $20 gold piece they had squirreled away would buy a lot of food, with bread at less than a dime a loaf. Those who couldn’t afford to hold their gold, turned theirs in and received brand new paper dollars for their gold.
The gold allowed more dollars to be printed, which were foolishly used for nutty things, and none were of help in fighting the depression. A couple of days later, on May 7th, FDR had one of his “Fireside Chats” over radio, to soothe the American outrage. He said that if Americans continued to ‘hoard’ gold, there wouldn’t be any left, and therefore in the interest of fairness, government should own all of it, and use it wisely. Ever hear of such claptrap? Gold markets have existed for thousands of years, and gold has endlessly changed hands around the world! Smugglers and black markets in gold have flourished in times of war, peace, or dictatorships. FDR also persuaded Congress to wipe out the gold clause in existing contracts, which specified payments to be made in gold. In a Joint Resolution of June 5, 1933, all gold payments in existing contracts were made null and void. Even Congress, stupidly went along.
On January 31, 1934, Roosevelt signed into law the “Gold Reserve Act,” which set the gold price at $35 per ounce, as opposed to the former $20.67 In other words, he had stolen hundreds of millions of dollars from Americans by raising the price of gold by about 70%! What in reality he had done, was to lower the value of the dollar by 70%, in relation to gold. It is estimated that Roosevelt hauled in $7 billion worth of gold from submissive Americans, and still the depression kept right on going.. My Dad was a corner druggist in Washington D.C. for 36 years, and I grew up in that drug store. I’ll always remember those days as being educational, and lots of fun. I can still hear my Dad calling Eleanor Roosevelt “Old Horseface,” and bellowing about Roosevelt, calling him every name in the book. He hated the Roosevelts, as did all businessmen, and anyone with a farthing of sense.
Did Roosevelt’s Executive Order # 6012 “seize” everyone’s gold? No! How could anyone know who had it? Gold coins have no serial numbers, and practically everyone had them. Could government seize socket wrench sets if it passed a law saying that everyone had to turn theirs in? Could government ever know how many people had bought socket wrenches from hardware stores, auto supply stores, Sears Roebuck, Montgomery Ward, et al? Socket wrenches have no serial numbers, and they certainly don’t have to be ‘registered’ when you buy a set. Both have uses, and both may be about the same size I suppose. Those who didn’t need the dollars, undoubtedly said to themselves, “Me? Give you my gold? “Hell no!” Those who were living at the edge of starvation, having lost their jobs, having lost their savings in closed banks, and seen their stocks go to virtual zero, naturally gave their gold to the government in exchange for bread money. No one was ever fined, and no one ever went to jail for an Executive Order which could never have been enforced. There are actual laws against prostitution and drugs, but they flourish on a daily basis. Hookers and drugs have no serial numbers either, and aren’t registered like car titles, real estate deeds or stocks.
How could government “seize” your gold, when no one knows you have it? Registered guns have possibilities for seizure, because of their registration, but when they come to get yours, as I am certain they will, you “had it stolen,” “sold it at a yard sale,” or “gave it away,” hopefully. No gold coin is “registered,” and no gold coin has serial numbers other than the Credit Suisse 1 oz gold bars. A decade ago, in Silverton, Colorado, a miner was accused of stealing gold from a mine, after lots of it was found under his bed. It went to court, and Henry Kolego’s lawyer asked the prosecution if the supposed stolen gold looked different if it came from one mine or another? “No.’ Does the supposedly stolen gold have serial numbers for identification? “NO.” Henry K. went free. Did he steal it? Probably, but it was totally un-provable.
Can anyone from the government, seize your gold like Roosevelt did? How could they? Gold is not radio-active, so a Geiger Counter wouldn’t work. “Well, they’ll check your supplier or seize your records.” If you had gold at one time, how could anyone prove you still had it if you had given it away, sold it, or had it stolen? Like registered guns, if you please. The thought of government going through a million court cases, violating the Fourth Amendment, trying to “seize” your hoard of Krugerrands, borders on the insane and, at least is laughable. As a refresher, the Fourth Amendment says in part, “The right of the people to be secure in their persons, houses, papers and effects, against unreasonable searches and seizures shall not be violated.” Is it illegal for you to purchase gold or silver? No. Is it illegal for you to own them? No. Ever hear of the legal term “ex post facto law?” Just forget the “seizure” nonsense, and protect yourself.
Mark..
He got me thinking with the FDIC comment. 5cents on a 100 bucks. That just might be the magic deflation number on the everything bubble. I’m not saying it is, just trying to put a figure that can be grasped to show the incredible amounts of derivatives outstanding that will unwind.. 2 quadrillion is just not something one can conjure a picture of.
BTW. You don’t like the sound of AK’s so the Feds heard you and are going to buy copies of it in other rounds. Now you can probably get them in you’re beloved M-14 round.
You mentioned getting weapons for family who might show up. Those surplus Mosin-Nagants are cheap and highly regarded and the ammo was real cheap.
Flea,
Your guess on the deflation number is as good as mine. Whatever it ends up being there will be wailing and gnashing of teeth.
The first time I saw John Exter’s inverted pyramid around the time of the 2012 link below I knew Silver was missing at the tip, and I prepared accordingly.
https://www.zerohedge.com/news/exter-inverted-pyramid-refresher
Being Obama had been re-elected I also bought the farm…so to speak. I never dreamed then we were going to have this much time!
Once I found out about the missing 21 Trillion…I realized why it was dragging on…and who is to say they don’t have another 21 trillion or more feeding into the pipeline.
I’ve prepared for the overnight ‘Credit Freeze’ as well as the dragged out swirling around the fiat/derivative toilet bowl until the Great Reset Flush eventually sends the 99% down the drain.
When is ‘confidence’ going to give up the ghost? That is the 2 quadrillion question?
I’ll look into the Mosin-Nagants…for the future Wolverines…a man can’t have enough guns.
A hard asset that shoots…is a hard asset indeed!
Mark…
The overnight credit freeze and debit freeze could easily happen.
If you remember the MPC in Nam, they changed it overnight in mid 68. We all showed up for muster at 8 and were informed that we had to convert any MPC we had for the new stuff on the spot. They claimed it was to curb the black market out in the economy(remember that word?). The P was worthless so MPC was used all over. Vietnamese were committing suicide over the loss. A pauper with 10 bucks to live on was suddenly SOL. It can happen here. Just cancel currency overnight and force everyone to exchange it for the new worthless dollars but only in discounted new dollars in debit or credit accounts only.
Just sayin..
Flea,
I actually still have some MPC in a scrap book, had sent some home.
You know all this as do most/many here – I repeat it to give history to my musings and close – 48 years ago in 1971 Tricky Dicky (actually it was the Luciferian Globalist Banksters as Nixon was a CRF controlled Member) started the greatest ‘fiat currency’ Ponzi scam in the history of the world, supported by Benedict Arnold Kissinger’s (another CFR member and Rockefeller insider who was Nixon’s handler) Petro Dollar prop with the Saud family.
In my opinion there is only one question no one knows the exact answer to…WHEN DOES IT BLOW UP? – and – When does the GREAT RESET start? – and -When does the GREATEST TRANSFER OF WEALTH in history happen?
Or is it just going on day by day, like a dripping faucet as the Luciferian Globalist Banksters position themselves while the useless eaters fill themselves with Big Macs and protest Climate Change while sending pictures of themselves on Facebook?
Is the POP overnight or a swirling toilet flush? Do we wake up one morning like the Vietnamese in 1968 with all our paper money worthless or its purchasing power slashed by 50% or do we keep circling the bowl slowly descending into the bowels of the bottom of collective and individual bankruptcy…for the 99%?
I believe everyone who reads history and has their eyes open should know it will blow up or flush…eventually…and should prepare accordingly to the best of their ability.
The past is prologue, and we know that every single fiat currency in history has always blown up or flushed, without fail.
But never, ever, in the history of the world has this many countries, in this interconnected, international economy ever pumped up a bigger fiat Ponzi scam then the real MOAB…the Mother of all Bubbles…circling above us in the bay door of the Bankster Bomber.
The average life span of a fiat Ponzi Scam throughout history has been 27 years:
https://georgewashington2.blogspot.com/2011/08/average-life-expectancy-for-fiat.html
We have been whistling past the ‘Paper Fiat Dollar Debt Instrument’ grave yard since 1998.
You know what the dog said when they cut his tail off: “It won’t be long now.”
Mark…
Darn good just off the cuff rant. right about never before the whole world caught up in one.
P.S. On “The end of.. article. Maggie asked me what I thought of the army giving men a course in Male pregnancy acceptance. Yes you heard it right. She left a link.
I told her today’s recruits would never live past the first time they were called a Mealy Mouth Puke.
Beam Me Up Scotty.
Yea…I always feel better after a righteous rant. It’s like taking a good shit…you feel lighter, relieved.
I don’t know what to say about the military after eight years of Obama’s PC infection coursing through the ranks and the brass’ bloodstream, while the culture war was busy being lost.
Two types of people rise to the top, the cream and the scum, and with that traitor Trojan Horse as pRresident he did more damage forcing out the cream and promoting the scum than any one of our contrived Bankster wars.
I don’t see the MIC getting defanged any time soon, but I do want to see the PC poison stopped from being fed to the troops. If for nothing else just for the sake of American manhood.
Had an old Gunny who use to say: “Keep the Troops out of the hot sun and they will follow you to hell”.
Looks like today they will just issue them all unisex parasols.
Hit’in the sack Flea…gotta put out the claymores first!
These things tend to pop quickly. They do not want anyone not on their team preparing and profiting so they end it quickly.
Mark, nice post…
Thanks Steve.
Here are the details on Flea’s recommendation for future Wolverines…may have to pack a few away.
https://gunnewsdaily.com/mosin-nagant-m91-30/
But what he did do was punish that generation. They never saw their gold used as currency again. Or at least when they really needed the money. He also raised the price after the confiscation order so as to induce other hoarders to relinquish it. Classic bully tactics. Fire and honey.
John,
“They never saw their gold used as currency again.”
Fire and honey is accurate but those who refused to be bullied used two words to redeem and increase their wealth: BLACK MARKET.
Those who called FDR’s bluff saw their Gold soon shoot up in value tremendously after FDR fleeced the submissive Americans who turned theirs in, 7 billion, in a day when 7 billion was serious ‘real’ money.
FDR should have been hounded out of office after stealing American’s real wealth…instead he was revered and re-elected…hard evidence of the success of the Luciferian Globalists Banksters plotting and scheming in secret Pilgrim Society and Council on Foreign Relations (CFR) meetings.
All modern day Luciferian Globalist roads lead back to the demonic pervert: Cecil John Rhodes.
THE PIlGRIM SOCIETY MEMBERSHIP LIST & BIOS
https://isgp-studies.com/pilgrims-society-membership-list
American Intelligence Media will not sit well with many here because of their Trump take. However, their historical research and fearless boldness are well worth the time.
You are not saving PM for yourself. You are doing it for your family. Kids or grandkids for this may be their only ticket out of future slavery in a dystopian world.
Look, I admit I have been making fun of PM or gold bugs for years because it doesn’t make sense. Still doesn’t. But at todays prices and forecasting the future a little today is like a time machine at these prices. Imagine with gold at $1,500 today and say ten years ago you could have bought for $35 how many would you buy had you known. I think this is where we are in ten years, $1,500 will be $15,000. Surely it will be illegal to own. So bury it for a few generations.
PM’s will be a huge liability for about 50 years. And having it could get you killed. But one day in the future it could help your grandkids. If not let it sit in the earth. Buy what you can afford like an insurance policy.
John,
I wrote a post about 2 years ago in partnership with Maggie about cashing in a 401k that was 100% in stocks from 87 to 99, by that time every dollar I had invested had returned three more and felt it was time to take profit, and make some bold moves. I was 49, paid the taxes and the 10% penalty, became debt free, and put what was left (about 50%) into Gold and Silver in a physical long position.
I was convinced by the time I retired it would give me a substantial return having been a silver stacker & PM researcher since the early 80’s. I knew the ratio between the dollar and PMs was at a historical low (Gold at $280 an ounce and Silver at $4.50 an ounce). I was right, but I had no idea we would be where we are in 2019, and that (in my opinion) PMs would be a future life line for not just me and my wife, but as you correctly state a wealth legacy insurance policy for my child and her child.
Gold was the trade of the decade from 2000 to 2011 up about 600% before the Banksters corruptly brought in back down by a third in 2011…plus I missed both stock market bursting bubbles during that time – bursting bubbles that destroyed many a Boomer retirement plan. One of the best moves I ever made, except to where I think we are now, and what we are heading into like a speeding train towards a canyon with the bridge out!
I started back cost average buying PMs in late 2013, after I thought the crooked downward suppression by the Banksters had leveled out…and stayed with it until 2017.
I have posted this before as I think it is one of the wisest and wittiest little books on buying, selling, investing, holding, hedging and insuring money and or wealth…especially in PMs.
Right now I believe Silver is at a lower price then it was in 1999.
“The government will confiscate or force conversion of precious metals into fiat paper”
Doesn’t make sense to do that now. The U.S. was on the gold standard back in 1933. Roosevelt outlawed gold possession so he could help the banks. Back then you could actually redeem paper money for gold.
http://www.moonlightmint.com/bailout.htm
You are forgetting one thing Steve: The power of corporations. They are in bed with government. We have a government of the corporations; not the people.
The government is the biggest creditor. It is one down from God. Think not? Then look at your real estate Title or your vehicle Title. You don’t own them. They are on loan to you; for a stipend.
The government and the corporations are not going to let the economy crash. By doing so they will lose their power.
God created man and man created the Devil. The first creation is life; the second is death.
Money is a means not an end. When the money we use for a means is no longer useful then it will be replaced. People have forgotten House Joint Resolution 192 of June 5, 1933 that made Federal Reserve Notes legal tender for the discharge of debts. In other words debt being used to pay debt. What a contradiction! And the world bought into it. What do you think QE is all about?
June 5, 1933 is the present moment.
Amazing that people don’t see what’s going on macro-economically and piece it together with a horrific weather cycle.
The fall of civilizations always involve horrific weather cycles.
How do you think a neg int rate zero coupon would work? hehehe…….
The wheels fall off capitalism. The whole system is based on a positive carry! What comes next …. who knows …. but it can’t be good.
Much ado about nothing. The economy is controlled by the banks. It has been for a long time.
The economy is like the trade winds; it comes and it goes. But unlike nature that takes the trade winds where it blows, the banks unnaturally take the economic trade winds to the places of their choosing.
The banks have made depressions obsolete where the dollar has become king. Where the dollar has been shunned economic depressions have been created by sanctions.
In a controlled economy such as ours don’t expect a 1929 depression to occur. The wealth of the country is too great for that to happen.
Debt is a fiction. How can that be; you say? Simple answer. Fiat money is a fiction in regard to wealth, and is not debt tied to fiat money?
One has to look around to see all the developed real estate, all the land being farmed, all the animals used for food, and all the food produced in this country. Not to mention all the cars and trucks on the roads.
And the most important point is that the people expect the government to prevent a depression even if all production and distribution now in the hands of private enterprise has to become under the supervision of the central government.
This imply’s socialism. Yes, the implosion of the capitalist system will bring in socialism because the people will demand it.
And this appears to where we are headed.
America is a wealthy land. Poverty is in the mind of the people who believe in debt and promote this lie.
Since 1999 economists and many book writers have been predicting the next great depression. Where is it? It is in the minds of those who believe it.
This surely lays out the case for
1) velocity of money will reduce globally
2) Euro dollar will be the one strengthening not weakening since there will fewer on the market and they do not have access to print like we do.
3) USA dollar will weaken significantly because we can print more AND we will have gone to negative rates later and with less money so dollars will be flooding the market
4) exports will be the new thing. We just may become a manufacturing capital again?
5) we can print so many more dollars since many will be tied up for years if not decades in negative yielding bonds.
6) when these negative yielding bonds come due there will be tons of usa dollars hitting the market and surely we will have doubled our national debt by then so silver or gold in 20 years will be 10x than today..?
7) they will make precious metals illegal and mandate a digital currency so they can tax every micro transaction to remove dollars from the economy to cause inflation
“Whenever destroyers appear among men, they start by destroying money, for money is men’s protection and the base of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper. This kills all objective standards and delivers men into the arbitrary power of an arbitrary setter of values. Gold was an objective value, an equivalent of wealth produced. Paper is a mortgage on wealth that does not exist, backed by a gun aimed at those who are expected to produce it. Paper is a check drawn by legal looters upon an account which is not theirs: upon the virtue of the victims. Watch for the day when it bounces, marked: “Account Overdrawn.” – Ayn Rand
“And never forget these three words: BLACK MARKET BARTER”. – mark