Central bankers have stolen the free markets… and here we thought it would be the Communists. Printing money causes inflation. That’s what a crashing dollar is. It’s crashing in value and making you spend more dollars to get the same goods than before the crash. The Fed says there’s nothing to worry about. Inflation is just going to magically come back down. We are still going to be at 2% inflation. So, we can keep the printing presses going with the pedal to the metal, and we are going to have these huge deficits. We are going to print all this money, and there is nothing to worry about. Well, you better worry! This crisis will be much worse than 2008, and unlike 2008, nobody’s getting a bailout. The reason the Fed could do the bailouts is the Fed could print the money to fund the bailout. The next crisis is the dollar that is going to be in crisis. The dollar is going to be crashing, and they can’t bail anybody out from a dollar crash because all they can do is print more dollars, which will just accelerate the collapse of the dollar. The warning is simple. This is a completely dysfunctional economy that is going to collapse when the bottom drops out of the dollar. I think that crisis is close at hand. The credit catastrophe that we warned about is rapidly approaching. Right now the biggest kink in the goods chain is transportation, whether container ships backed up at ports, or the shortage of long haul truck drivers. Buy local and stock up while supplies last. I used to think three months of supplies was sufficient; now it appears that one year is more appropriate. When you are buying canned goods like beans and veggies, don’t forget the fruit for a balanced diet. Definitely get a water filter and the means to get rain water and store it. Potable water is our biggest infrastructure problem. Welcome back to The Atlantis Report. You are here for your daily dose of the truth, the whole truth, and nothing but the truth. Please take a second to hit the like button, hit the subscribe button, and don't forget to also hit the notification bell. Thank You. 1/. The dollar (world reserve currency) collapse is a well planned event – a sought after outcome of the massive increase in fiat. 2/. Bitcoin was deliberately created by The Power That Be to familiarise the public with crypto (cashless) currency. The meteoric rises in Bitcoin values have ensured huge publicity – ergo, publicity, as intended. As a result, few people can honestly claim never to have heard of Bitcoin, and most think of it as a cryptocurrency. When Bitcoin collapses, as pre-planned, The Power That Be will claim it’s because it was not centrally controlled. Bitcoin was also depicted as a gold coin – even though it’s ethereal – with the intention of diverting investment away from real gold. 3/. When fiat dollars and non-central bank cryptos collapse, The Power That Be will step into the breach with their centrally controlled crypto fiat currency. The IMF and World Bank are ready and waiting. They need the overt collapse of the current world reserve currency – and the Fed is assisting in this effort. To claim as some do, that the Fed does not know what it’s doing is in my opinion naive. 4/. The pandemic is in part to collapse the private sector economy. Small businesses forced by edict to close while multinational chain stores were permitted to stay open. Small businesses as a rule do not have deep financial pockets to sustain long closures and many have ceased trading – as planned. The forced closures of retail, leisure, sports clubs, and travel also provided necessary deflation and reduced velocity of money to offset the concurrent hyperinflationary money printing. Very effective disguise. In my opinion, The Power That Be know exactly what they are doing. Everything is going to plan. The plan is to alter human nature and to control what we do, where we go, with whom we associate, and thereby to stiffly any possibility of organized revolt. 5/. The owner of the reservation demands absolute obedience. Obedience will be rewarded with tokens that may only be exchanged at the company store. The Federal Reserve is keeping interest rates at artificially low rates through their monthly purchases (80 Billion of Treasuries and 40 Billion of Mortgage-Backed Securities). If and when the FED starts to gradually reduce their monthly purchases, then there should be an increase in interest rates. The FED knows that they are responsible for the surge in equities and real estate. The FED also knows that equities and real estate will crash without their continued intervention. The fall in the rate is a function of the risk-off moves in the market, probably since the Fed started floating QE tapering talk. Traders fleeing risk assets and moving into treasuries - more buyers so the seller can lower the price (the rate) and still make sales. Pretty simple. If taper talk turns into hot air and it's back to risk-on and fewer traders want treasuries then this should rise to attract buyers. We’ve been conditioned to homes going up in value, and with the slow demise of the almighty buck when measured against other comers, they’ll continue to do so being in effect money in the bank. We’re already seeing an odd rush for old stucco now, instictively we’re used to it being a security blanket that never wavered. Imagine a dollar valued at 1/20th of now and Southern California homes fetching a couple million for fixer uppers. This is where the sharpie arbitrage types come along and buy the jewels for a pittance when measured in something that matters-not dollars. The USA will use to the maximum the advantage of the global reserve currency status of the dollar to cover for its economic inefficiencies. It has done so for a very long time, but never at this pace and this much. Though this comes at a high cost, one that will follow us in generations to come. It has given birth to an obscene superiority selfimage amongst the wealthy and powerfull (christened as American Exceptionality). For them there is no real inscentive to perform, reform or deliver, nor are there any consequences for failure. In time they relied more and more on the power of the dollar, and their jobs went from enabing wealth generating enviornments (shaping society to become prosperous) to distributing wealth to whom they see worthy and exceptional. No matter how they perform, no matter what they mess up, there is the mighty dollar to save them, and an evil Russia/China/Germany…Who is next to blame. It is a well full of poison they are drinking from, and they are teaching everyone to do the same. The poison acts slowly, numbing first your mind, blurring your vision, changin your perception of reality. Then it takes over your body, you become slow and tired easily. Finaly when you have it all it comes and takes your Soul. Being a reserve currency itself is not indicative of trade surplus or deficit. However, I would amend this to be: Being a reserve currency being used outside of its home economy may require running deficits. The euro and yen fo example are limited to their home economies’ respective share in the world GDP and trade. They’re being run as instruments to advantage their own economies vs. the US – so at least some part of said surpluses are explicitly a function of enabling the US to run Dollar deficits. China skipped the step of making the RMB the primary vehicle of currency manipulation – instead they use the oligopoly/monopoly power of its enormous labor force and supply chain control. As I’ve noted before – the primary reason the RMB is not a reserve currency is that it is not freely traded because enabling this also enables mass capital flight out of China – which the CCP does not want. Its 2015 experiment proved this clearly: any opening up of restrictions would result in trillions of capital leaving the country. As such, I think it is premature to say that the decline of the Dollar is going to always be gradual. The real test will be when, not if, China decides on some form of an external RMB; the same labor force and supply chain control mean there is more than sufficient trade impetus to rapidly propel China from its 2.5% reserve currency status to something closer to the 20% which percentage China’s GDP is part of world GDP. Note US GDP is 24.5% or so of world GDP. The delta between the 59.5% US Dollar reserve status and US GDP to world GDP is the benefit of being a reserve currency. In trade terms, the situation is worse (for the US). The US is 8.5% of world export trade and 17% of world import trade. Given the previous notes on currency manipulation, it seems likely that the 17% is skewed high as an outcome – meaning actual baseline US share of world trade is more likely in the very low teens. Compared to the EU share of world trade (16%), China share of world trade (13%+), and Japan share of world trade (~3%). What impact would a 10% or 20% fall in the US Dollar usage as trade reserve currency mean? Absolute value-wise – total world trade is around $190B. Each trade dollar has an impact beyond its presence on one or both sides of a trade – there is the central bank reserve, there is the profit, there is the reserve behind the transaction held by the trader, and ultimately, the bank behind it. I have yet to see credible estimates of this impact but it seems safe to say each 10% of US Dollar reserve currency status means at least $30B in free cash float. The overperformance of the US Dollar in global trade thus equates to something like $100B in free cash float every year. If we treated these US Dollar as an export (which they are) – it would be 60% more than the single largest category of US physical exports (planes) and nearly as much as the top 2 combined (planes and refined petroleum). Cars are #3, ICs are #4. What would the economic impact be of losing 1/2 to two thirds of any nation’s single largest export? And at this point, it seems 100% clear to me that China will do so. Some people have noted that the trade deficit – closely related to the reserve currency benefit – corresponds to the outsize of American military expenditures vs. the rest of the world. American activities with said military are such that China and Russia believe that the best way to combat it is simply to defund it. The Belt and Road Initiative and similar programs are the first step. This was The Atlantis Report. Please Like. Share. Leave me a comment. Subscribe. And please take some time to subscribe to my backup channels, I do upload videos there too. You'll find the links in the description box. You will also find a PayPal link if you want to make a donation. Thank you wholeheartedly to all those of you who have already donated. Stay safe and healthy friends!
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