As I was reading though some historical quarterly reports by some of our leading companies from the last century, I was struck not by what I saw but what has been missing for some time from today’s quarterly reports.
In the 1970s and 1980s and probably as far back as you would like to go many quarterly reports not only reported earnings, expenses and future outlook but also took pride in the good they were doing for the public. They boasted about their service and their contribution to society.
Today, while all of the numbers that are reported are still intact the message has changed from their contribution to society to how they have increased earnings and created “value” for their shareholders. In other words- how they are serving not the public but the owners (top 10%).
In the past there was a commitment by companies to their employees and to the public. Today, it is all about earnings and padding the pockets in the C suites. Shareholders applaud layoffs because they believe that profits will rise. Buybacks are welcomed even if the major beneficiaries are those at the top because the buybacks will create a better-looking bottom line. This allows the PRICE to rise even if the VALUE is not rising or even falling. In the past share buybacks were illegal because was deemed a form of insider trading.
Today, the “markets” are nothing but managed PRICES that give the illusion of a strong company and economy while the decay underneath continues to build. The bond “market” is similar with the Fed conjuring up trillions to keep rates from skyrocketing as the rest of the world dumps our debt and our government keeps spending like drunken sailors.
The main point I am trying to make is that while things look similar to what made our companies and country great the underlying reality is QUITE different. Win-win situations have been replaced with Win-Lose situations where destroying the competition is rewarded. We used to produce the highest quality goods in the world but have offshored that production and have gutted the middle class.
In the past we had the productive capacity to pay our debts. Today they “print” the money to retire maturing debts, enable current spending and yes- EVEN TO PAY INTEREST on what we have already committed to.
It is becoming increasingly obvious that our spending is on an unsustainable path. This is not only for our federal government but also for companies, states, cities and individuals. Since 70% of our GDP is based upon consumption, we appear to be in for a reckoning VERY shortly.
This entire scheme has been built on a pile of debt so high that almost nobody could picture the number in their heads. When you have to conjure up cash to give the illusion that you are still solvent and productive it is only a matter of time before the entire system seizes up and we will be forced into a new system.
We are at a point right now where those “in charge” are using headlines- usually exposed as fake within a few hours or days to keep the stock “markets” from imploding on almost a daily basis. This is in addition to the outright buying of shares and bonds to get the same result. The buying is not even enough right now.
We can only guess if there are any more tricks up their sleeves, but it appears to me that we will not make it through 2025 without going through MAJOR changes.
There are dozens of reasons that this could happen like …
War. Take your choice of the major flashpoint. Taiwan? Ukraine? Israel? Pakistan? Africa? South America? USA?
Debt Implosion. My guess is that the Fed and other central banks would have to allow this to happen- and they just might to create the perfect storm to usher in the new CBDC system that the BIS has mandated for 2025. If the central banks had just pulled back at any time, the entire debt-based system could have imploded already.
Social Unrest. There is growing unease around the globe as the population is catching on to the fact that most of the legislation and spending is NOT for our welfare but for the benefit of the few at the top. People are fed up with the wars, rising prices, violence in the streets, etc.
Major Bank Failures. Keep in mind that many of the major banks have exposure to real estate where there appears to be a silent implosion taking place particularly in the commercial real estate area right now. Why is it silent? MANY banks are extending loans that have little chance of ever getting paid, so they do not have to show the losses right now. Add that to the trillions that they have on their books that are not worth what they are reported to be if they had to sell today but what they will be worth at maturity (some 20-30 YEARS OUT) If there were a run on the banks those unrealized losses would be realized REAL FAST.
These are just a few ideas. I am sure that there are many other scenarios that could take place. In any case, those “in charge” and their friends have been accumulating gold at record levels for years in anticipation of what we are likely to see very soon. They are also manipulating the PRICE so that the average Joe and Jane are deceived into thinking gold is “risky” while all of the central banks- besides the Fed have listed it as RISKLESS on their balance sheets since January of 2023. In July of 2025 the Fed will join the party. (Is this why tons of gold are now being imported to the USA?)
I firmly believe that those “in charge” have been planning this for decades and we are now in the final inning of a LONG game that will end with the destruction of the current system, most people getting wiped out financially while those positioned correctly could amass life-changing wealth.
The outcome appears to be set. The timing? That is a whole different story. Look for signs. Gold going up 40% in the last 12 months is a huge clue that something is wrong under the calm waters.
Be Prepared!
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