The events in Afghanistan this week are recreating the images that we remember from the early 1970s when Vietnam fell. Just 2 weeks ago we were told by our “leaders” that this type of outcome was impossible. It appears that our “leaders” were either lying or are totally incompetent.
This news of people being stranded in Afghanistan and being at the mercy of a vengeful enemy is harrowing to say the least.
The reason that this important for this piece is that our “markets” are very similar to what has happened here. Everyone is absolutely sure that the Fed has their backs. I would agree that, short-term, that is likely correct BUT the day they are exposed as NOT having your back- but their owners (the major banks) back- many will likely be blindsided just like those unfortunate souls left behind in a war-torn country with many enemies looking to exact revenge.
Most people watch CNBC, Bloomberg and Fox Business to get a daily dose of what the propagandists are pushing like “the economy is booming”. Say it often enough and people will believe it. This, even as we have not had a BIT of good economic news now in years. Without the incessant “printing” by central banks, the purchasing of assets by those same banks and the devastating amount of new debt created in the last 12 years or so the economic news would be shockingly bad. Even 24/7 propaganda would likely fool no one.
A couple of questions that I think we should all ask is #1 “If the Fed stopped supporting the “markets” like our military stopped supporting the Afghan army- what would it look like? #2 What could possibly cause this type of outcome?
Answer #1- My guess is that in no time asset prices would correct in shocking fashion and the “buy the dippers” would be slowly destroyed as their “BTFD” doesn’t work this time – or any time in the near future because the paradigm has changed. Just like nobody could imagine what happened in Afghanistan most can’t imagine this scenario either. The “markets” would likely look like a noodle if the Afghan army was a rifle.
The US Air Force in WW2 ran missions daily over German airspace and day after day there was no raid. The enemy became complacent and on the day of the planned attack the Germans disregarded the bombers as the attack unfolded. I believe that the BTFD has been successfully ingrained into people’s heads so that when those “in charge” decide its time to fleece the sheep yet again they will be unaware of the attack until it is far too late.
Answer #2- Many things actually, but the most likely is INFLATION. If prices rise and people’s standard of living gets threatened, they get mad. If inflation gets really bad and people’s property and ability to feed their families are threatened, you can bet they will start getting violent.
Even though the central bankers tout their “toolboxes” they actually have only one tool. That is to “print” money and drown us in debt by doing it. Of course, with that one bullet they can purchase assets and make it appear they have more than one trick but it is all the same trick. Conjure up “money” out of nowhere, buy assets and move prices to benefit the VERY few insiders at our (99% or more) expense.
Once inflation sets in it is likely that the reason it is setting in is that confidence in the currency is being lost. Of course, many- like myself, are keenly aware of what these actions are going to ultimately bring about. I believe this is the reason that thinking people, central banks, major banks, hedge funds, etc. are loading up on gold and silver.
Central banks, who can hit a button and get a trillion any time they want have bought 330 TONS of gold in just the first 6 months of 2021. This after record purchases each year starting in 2018. The major banks are loading up, hedge funds are loading up and now, I just read an article that Palantir (Software company co-founded by Peter Thiel) has bought $50.7 MILLION worth of gold bars.
COO of Palantir Shyam Sankar said “you have to be prepared for a future with more black swan events”.
I guess I should have added a third question: What happens when the source of the central banks power (Conjuring up “money out of nowhere) becomes a liability because the more they “print” the less value there is? What happens when people start to demand real value for their labor and goods rather than a piece of green paper or a computer blip?
I’ll bet the central banks, major banks and their hedge fund buddies have that all thought out already. This is likely why major banks are also big buyers of necessary companies like utilities globally and large firms like Blackstone and Blackrock are purchasing real estate to rent back to us when the real stuff hits the fan and we “own nothing but you will be happy” appears.
I believe that just like our “leaders” have lied about Afghanistan, our real reason for being there and the reported “successes” that appear to be fantasy, the same can be said of the Fed and our “markets”.
We are fed statistics that are so massaged that there is no connection to reality. Too bad most people just look at headlines and don’t dig a little to get the real story.
Things we KNOW are not true:
GDP- Debt is counted as growth so the number is TOTALLY off.
Unemployment- obviously FAR worse than reported as over 100 million working age people are conveniently omitted. They exist and they need food, shelter and clothing like everyone else. Yet they produce NOTHING- just like the money “printers” produce NOTHING but the ability to purchase assets and make our prices FAR higher than they would be in a true capitalistic economy.
Stocks are cheap. I’m sure some are BUT the majority are FAR overpriced. Stocks have NEVER been as expensive as they are today- EVER. Anyone who falls for this line will likely get a lesson they won’t forget.
Gold is risky. There are 2 assets that central banks can list on their balance sheets as “riskless assets” US Treasury notes and GOLD. Funny they have the masses believing gold is risky as they buy tons and can use 100% value on their balance sheets. Of course, they play these games to snuff out competition, make sure we don’t know how bad the loss of value in our currencies are and buy as much as they can as cheap as they can.
They want EVERYONE in the US dollar. Here is what has happened in the last 50 years. August 15, 1971 Nixon (temporarily) closes the gold window (still closed). Gold trades at $35.00 per ounce. August 15, 2021- 50 years later- gold trades at $1780.00 per ounce (with MASSIVE manipulation to cap the price).
Take that $35.00 and divide it by $1780.00 and you will find that the US dollar has lost OVER 98% of its value against gold during that time. What is REALLY risky- particularly today when the “printing” is off the charts globally and with no end in sight?
I know my answer- what is yours?
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