The Impossible Dream
Guest Post by Dennis Miller at Miller On The Money
US debt is out of control; inflation is still rising. Fed Chairman Jerome Powell is tasked with fixing a historic mess. The star is unreachable….
The Glass Steagall Act was passed in 1933. Until its repeal under the Clinton administration in 1999, the Federal Reserve had no “emergency” banking system bailouts. Less than a decade later things blew up, and the Fed went on a historic lending spree, bailing out “Too Big To Fail” banks.
The Fed flooded the banking system with money, increasing their balance sheet nine-fold, to $9 trillion.
The government chimed in; spending trillions more than it collected in tax revenue.
The US Debt Clock keeps score.
US debt increased from $8 trillion to over $34 trillion. Federal Debt, as a percentage of GDP, skyrocketed from 64% to 123% in 15 years.
A Hirschman Capital study shows that out of 51 cases of govt debt breaking above 130% of GDP since 1800, 50 governments have defaulted. The only exception, so far, is Japan.
The Debt Clock predicts government spending over 150% of GDP by 2028. Can Powell beat those odds with no help from the government?
Bill Bonner tells us:
“Almost all (the government fixes) was imposed on the economy (unnecessarily). …. In other words, the US debt represents the attempts by the elites to solve problems – real and imaginary – by shifting money and power to themselves in the present…while pushing the real costs onto future generations.
Known collectively as ‘the Swamp’ or the Deep State in America…. Milei in Argentina calls them the ‘political caste’…they are the deciders who solve the problem, whether there is one or not.
And now, in most countries in ‘The West,’ they have solved so many crises that the whole system staggers under the weight of their solutions.
Big Loss coming soon.”
Guess we now know why the big club is building bunkers.
the US debt represents the attempts by the elites to solve problems
Elites create problems so they can implement their desired “solutions”. FIFY, Dennis.
Remember when we were kids and our parents said to knock it off or they would give us something to really cry about? Turns out it wasn’t an ass beating it was swamping us with unsustainable debt.
Repeal of Glass Steagall was the price the banks demanded in exchange for lending to ‘underserved’ communities. In other words the Community Reinvestment Act, which required banks to lend to people who had absolutely no business borrowing money for houses, due specifically to their lack of income, assets and stability. That lending and that repeal are the proximate causes for the circumstance in which we find ourselves at this time.
“Until its repeal under the Clinton administration in 1999, the Federal Reserve had no “emergency” banking system bailouts.”
🤦♂️
Oh, right. The Tequila crisis and the LTCM bailout don’t exist. To name just two.
Can the author maybe read up a little about since when banks where allowed to gamble with their own money, again?
The debt situation is unsustainable and the misanthropes who’ve created this catastrophe know it; which is why they are doing everything they can to accelerate the shift to a new arrangement they’re calling The Great Reset. It will be a neofuedal system/hierarchy with themselves cemented at the top along with remnants of the old order like the European “royal families”, Rothschild, Rockefeller, Ford, Warburg, Schiff families. On the other hand there are some trying to save the ship of finance but the ship is taking on too much debt and will eventually topple and sink.
We the useless eaters, chumps and suckers will be collateral damage as their transhuman/post human agenda rolls on. Their mind control/entrainment and divide and rule tactics are quite successful as we can see all around us.
Free and protect your mind, do everything you can to experience optimal health and be as prepared as you can for the coming chaos.