Sunday, March 28, 2021
👉Buckle Up ! An Economic Apocalypse is Approaching !!
👉Buckle Up ! An Economic Apocalypse is Approaching !!
Eleven years of QE created a financial system that depends on the Fed monetizing debt in massive quantities forever; so that billionaires could swap dollars to skim profits from QE Forever. Unsaid, but likely, is that since both the ECB and BOJ are deep into endless QE, then the Fed needs to get in step.
Coincidentally, there's an FOMC meeting in play just in time to save the world from the financial crash these billionaires will cause if they don't get free money under their terms. Banks have oodles of US Treasury debt that needs to go at a profit, and the Fed is the only buyer dumb enough to buy it, so the banks earn a profit.
Implied Terror is WE NEED QE FOREVER NOW WITH Zero Interest Rates FOR GOOD MEASURE!!! REPOS ARE TOO UNPOPULAR, AND WE WILL MAKE FACES AND STICK OUR TONGUES OUT AT POWELL IF HE MAKES US USE REPOS INSTEAD. WE WILL HATE HIM FOREVER!. AND WE'LL CAUSE THE BIGGEST FINANCIAL CRASH THE WORLD HAS EVER SEEN IF WE CAN.
The Federal Reserve about-face in policy with cutting rates and new QE (money printing) means only one thing. A brutal Market Meltdown in the coming year. The Greatest Depression is coming. Something Big is Happening! A coming brutal market meltdown, with the so-called repo Market and the Fed unlimited printing and this QE behind the scenes.
The debt bubble will implode at some point, and it will be felt everywhere on the planet. When this thing implodes, we are all screwed. On a global scale, we have never before created such a magnificent bubble. These central bankers are clueless, and they have proven that beyond a doubt. All they can do is to try to keep the bubble going. This is not TARP 2009. The Fed is not swapping money for worthless collateral like in 2009. It is providing money for nothing to some big banks that are obviously caught in some sort of borrow-short lend-long scheme, which gives the Fed the power to give away our money for nothing.
We should be demanding the Fed to only accept real collateral in exchange for these REPO loans, rather than being forced to use the RICO laws to claw back some of our money possibly! We have been told that what happened back in 2008-2009 was the Great Recession. In reality, it was a Depression because if it were not for the Federal Reserve along with other Central Banks printing trillions upon trillions of dollars and the US Government implementing its "soup line" programs, we would have seen the same chaos as we did back in 1929. The whole thing was a lie to keep the entire Ponzi Scheme from imploding. Since 2008-2009, it has never been a normal economy, not when you have a third of your workforce out of work looking for work. The inflation numbers have also been another giant lie, as well. I tend to agree with John Williams, who says our real unemployment rate is around 24-26%, and our real inflation rate is around 11-14% yearly. Two problems, the good high paying jobs people need don't exist to enable and maintain growth, and the problems created in 2008-2009 are now ten times worse. When inflation really kicks in due to the Fed's massive money printing, the American people will squarely be "behind the eight balls" (unless they act fast and removes the chains from the CPI). According to the Chapwood Index, real-world inflation in urban America is right now running at 9% to 13% annually!
QE has gone on for so long we are all in danger of supposing nothing will change in our lifestyles. Well, everything will change, and even if we're treated like fools by those who choose not to see what's unfolding, we must do what we can for our nearest and dearest when the economic apocalypse arrives. Without the Fed pumping money back into the system, it would seize up. We are for all intents and purposes on financial life support indefinitely until someone pulls the plug. But who might that be?
The stock market would collapse. This next crisis will be a very sudden and destructive crisis, but restoration will come quickly as the new leader, along with the BIS and IMF through their central banks, begin the process of phasing out fiat and phasing in an electronic currency over a 1260 day period as the biometric Mark of the Beast also begins to be phased into all areas of life. Regardless of the direction, the wind is blowing, and it appears that we are heading for an unmitigated disaster. The eventual last straw will be the collapse of the corporate junk bond market, leading to hyperinflation. There are however, other possibilities. I have my eye on pension funds, too many of which are technically bankrupt. When the first major municipal or state pension fund collapses, most likely Chicago, there will be a huge domino effect. Millions will lose income and the means to survive. What then? Martial Law. Riots. Roving bands of marauders. Implementation of a real-life Purge! Scary future we have. Time for trickle-down economics for the corrupt banks because bailing them out time after time after time does not work. We should not bail out the corrupt banks. We should bail out the people, The TAXPAYERS, and they will spend it and let the money trickle down to the corrupt banks. The economy will improve, and the corrupt banks will benefit. The corrupt banks caused this. Time for them to get a reality check. Bailout the TAXPAYERS, not the banks!
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The country can’t handle another shutdown of small businesses.
This recession is a self-inflicted wound. The destruction of the currency (fiat money-printing) leading to mal-investment, excessive indebtedness, entitlements.
The whole reason the pandemic narrative was unleashed is the financial picture was coming apart at the seams in Oct 2019; the Fed had to intervene in the repo markets to keep things propped up. the elites had to take drastic measures, create a story..." it was all going so well until this unexpected pandemic came up."
The Coup de grâce was the reaction to the pandemic, being lockdowns and restrictions on everything, which destroyed a lot of the marketplace.
Crash the markets, Government steps in, takes over 4O1K's at current values, guarantees monthly stipends, but no redemption, ever.
We allowed the fake leaders to do this to us.
Gullible sheep keep believing in the myth of authority, the myth of government being legitimate.
Sheep will be shorn.
The Fed managers are foolish but not stupid. They realize they cannot let the moral hazard mania move into the phase where an irretrievable collapse becomes inevitable.
The Federal Reserve announced that it would extend its QE operation forever. This is a QE more than ever. The Markets on crack again; nothing seems to stop these markets. If the markets keep going up on such continued rising stimulus. These markets on crack scenario will continue to accelerate. But There are markets; then there is the real economy.
The Suez canal crisis is the black swan now. Keep an eye on OIL. Worldwide supply chains are disrupted. This will affect growth in the US. They will print to infinity to save the markets again, but they won't be able to hide the impact in econometrics. We make nothing in America. Ford is already scrambling to find parts for production. Walmart will stay open until they run out of stock, same with Amazon. Amazon has a supply line problem in 3 or 4 weeks. China only survives because of sales volume. What happens when their supply drops by 30% or more?
If this is true, forget about a black swan, get ready for a flock.
Most companies use Just in Time purchasing, so no phones for Apple to sell, or laptops, or most electronic items. Solar power equipment is already a problem. Could the government also be planning to say at some point that the debt is so great, it cannot support Medicaid or Medicare, or Social Security payment anymore? Or, perhaps say they have to limit payment of any or all of them because of the debt? This will be the point when the sheep wake up. The long-held, steadfast promises of the government will come to the surface as the lies they have always been. A government that lives by secrecy and corruption will eventually be outed and destroyed. Audit, expose and end the Federal Reserve. For the moment, the financial markets continue to remain completely disconnected from the hard economic data, but as we saw in 2008, the markets can plunge very rapidly once they start catching up with the real economy.
The FED with QE is taking assets and their corresponding income streams from banks and simply crediting their reserves accounts at the FED, which they can do nothing with but borrow against, and they are not. Banks must use their own capital to buy notes, bonds, and MBS, which reduces liquidity even more to meet the FED's goal of $120 billion a month. Banks are not lending and creating money and liquidity as no one wants to lend in this environment where governments are pressing for more lockdowns. Plus, the banks do not want to refinance their own customers for mortgage loans at lower rates, as this also reduces their revenue and amount of liquidity on hand. In addition, as unemployment surges again and banks will see additional losses in the future from bankruptcies, and most loans are going to just survive with liquidity not flowing into the real economy and increasing the velocity of money. But actually decreasing and as existing loans are paid down removing even more liquidity from the system as again lending and creating money and liquidity is much slower than loans being created and liquidity. The FED and banks are creating MONETARY DEFLATION, which as credit dries up and liquidity as disinflation eventually spreads thru the real economy, which will take time but is happening. The FRED data shows that almost everything is contracting from banks lending across the board to the money multiplier to the US exporting disinflation and also countries exporting disinflation to the US as the world economy slows from lockdowns and the velocity of money decreases, causing dollar shortages around the planet.
The only inflation we see here in the US is from the lockdowns destroying whole supply chains, especially in agriculture, where shortages are popping up along with prices rising. This is not DEMAND INFLATION FROM AND INCREASE IN THE VELOCITY OF MONEY BUT COST-PUSH INFLATION FROM SHORTAGES BY GOVERNMENTS WITH LOCKDOWNS DESTROYING EVEN MORE BUSINESSES AND JOBS. Housing is rising because everyone and his brother are leaving the cities and either moving to the suburbs or leaving northern high tax states, and California is getting the hell out with people in Florida selling houses where the buyers are doing it online and not even seeing the place beforehand. The equity markets have been rising because international capital flows, especially from Europe, are simply parking in dollar-based assets as Lagarde moves to a digital cashless monetary system and their banks in the EU are all in trouble, and they refuse to bail them out anymore. US equities and treasures are the only game in town. By central banks creating their own digital currency and wallets where you use a smartphone, by Big Tech rolling out 5G to get a piece of every transaction, and the World Economic Forums goal of canceling all sovereign and private debt in exchange for all your assets and a UBI, there will be no need for banks as your money or deposits is on your phone, and there will be no more lending. If there is to be no debt, then you do not need banks!
At the end of the day, All roads lead back to the fiat money system:
Broken countries. Broken trade. Broken bond markets. Broken manufacturing. Broken businesses. Broken housing markets. Broken people. Mal-investments. Wealth inequality. Big Government. Mass immigration. Wars. Even climate change.
“The old world is dying, and the new world struggles to be born; now is the time of monsters.” -- Antonio Gramsci.
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