Has anyone sat down and wondered just why we keep hearing that our economy is improving but that we still need trillions more in stimulus? Has anyone sat down and looked at the actual numbers from the CDC that show Covid is nowhere near as deadly as presented and wondered why we shut our economy down? I have to admit- in the beginning I was all for being more safe than sorry but since the exaggerated death statistics never came to be it appears to me that we should have opened our economy up already. Amazing that in Sweden they had no lockdown and their numbers are better than ours. That should be a clue!
My guess is that this was a coordinated effort to stop or greatly slow down money velocity. Money velocity is how many times dollars are being exchanged in an economy and can be used to measure economic activity. The lower the velocity the more likely the economy is slowing down.
Why would anyone “in charge” want to slow down the economy? Doesn’t it benefit everyone if we have a robust and booming economy?
I have heard many hypothesize that the left is doing this to get rid of Donald Trump. There appears to be some truth to that in my opinion because the draconian shutdowns are mainly in democrat-run strongholds. I guess that could be a coincidence.
I have heard others who have opined that this is a globalist takeover and the masks are a sign of who will comply and who won’t. It appears to me that there could be some truth there also. The propaganda on every TV station and MSM news outlet is an unending stream of fear. The only points of view shown seem to be those that are “approved”. Many doctors have come out with treatment protocols that have tremendous success but are then banned on social media and ignored by MSM. Kind of like the TRILLIONS of dollars that major banks have laundered this century. The story about the “markets” falling is supposedly that the virus is going to have a second wave. Meanwhile, the real story gets buried- major banks laundered TRILLIONS for what our government would call crooks from Venezuelan government officials to Russian mafia kingpins.
What if the answer was really simple and we are being distracted by all of these other theories and stories?
Let’s go back about a year ago. September 19, 2019. The repo market saw the overnight lending rate spike from 1% to 10%. This was a sign that banks didn’t trust each other to even lend overnight. (COUNTERPARTY RISK- when you don’t know if your debtor can repay) The Fed stepped in and ever since has been providing more and more “liquidity” (conjured up “money” from nowhere) ever since. It has been reported that we may be up to a trillion dollars per DAY at this time.
Of course, the trillion per day is NOT just for the repo market but to also fund the buying of treasuries, corporate debt, and the “money” for Blackrock to buy ETFs for them and many other central banks. The last one I saw reported was the Swedish National Bank. There are also 15 other central banks that have swap lines with the Fed. Basically, they can send almost any asset and get US dollars in virtually ANY amount.
Just today (9-22) Jerome Powell testified in front of congress that the Fed needs to do more. Amazing that things are so good that they have to do “more!”
Could it be that the 40 million or so that are faced with eviction when the eviction moratoriums and mortgage deferments run out shortly are the problem? Could it be the hundreds of thousands of small businesses that are permanently closed be the problem? Could it be that the millions of car loans that are over 60 days behind be the problem? Could it be that the major companies that are drowning in debt and begging for more bailout money be the problem? Could the younger generation saddled with over 1.7 trillion in student loan debt- a lot of it not being repaid by the way-be the problem?
I could go on and on about pensions being underfunded, social security already being partially paid with that good old “money” from nowhere that the Fed conjures up and the impending bankruptcies of many of our major cities and also likely states if the Fed doesn’t bail them out also.
However, in the interest of time I will give you my simple reason that this was done. Add all of these things up and it adds up to a national bankruptcy. I believe that in 2008 we hit the wall where our national output was no longer able to sustain our debt payments and the central banks- in a coordinated effort- went about issuing more debt to pretend that we were still solvent. This was a global phenomenon- not just here in the USA. The debts over the past 12 years have exploded while our incomes have stagnated- unless you are part of the 1% that is getting that conjured up cash.
It also appears to me that in September of 2019 we hit another wall where the tens of trillions to the banks, the trillions in new debt that was created to make up for our shortfall in actual production was again- not enough.
The fact of the matter is this:
US ADMITTED DEBT is over $26.7 Trillion – that is$ 81,111.00 per person or $214,844.00 per taxpayer.
State and Local debt is over $3 Trillion and that is over $10,000.00 for every US citizen (US Treasury)
There is $20 Trillion in personal debt- that is $62,789.00 per person (Federal Reserve)
We are currently on the hook for $3.8 Trillion in interest payments – with rates DEAD low. (Fed)
We have $154 TRILLION in unfunded liabilities – that is $468,000.00 per person in the USA
We have 330 million people here and only 122 million have full time jobs and 25 million work part time. (BLS)
Is it any wonder that the Fed is “printing” trillions? They are masking the fact that we can NEVER repay this debt and in all actuality we would have defaulted 12 years ago had these actions not taken place. In any case it should be glaringly obvious that we can NEVER repay what we owe if the US dollar holds its current value- which by the way is 97% lower today than It was in 1913.
It appears to me that we should be worried about keeping our purchasing power and not relying on others to make good on their promises which would have likely been broken long ago without this massive intervention which appears to be nearing its expiration date.
On the more sinister side when this latest intervention runs its course the central banks will be in a position to “own it all”. By buying corporate debt when the inevitable bankruptcies come they will be in a position to own unencumbered companies that could be cash cows in the future. With small businesses destroyed- as they have been- they can also set prices. If they have a digital currency they can see and tax each and every transaction. In this scenario if you step out of line they could digitally shut your wallet down. That my friends is total control and what may be happening right before our eyes. Parts of this are already reality in China.
As happened in Greece and other places we may be forced to sell national treasures to satisfy the crushing debts that our “leaders” have foisted upon us. Are these bailouts or buyouts?
It appears to me that there are two ways out. Stop now and default or keep conjuring up new cash and debt until nobody accepts it anymore. The latter will buy time and my guess is that this is where we are headed. In the meantime, I am trying to be as prepared as possible with extra food, water and anything needed for sustenance. I also believe having assets that are not someone else’s liability make a lot of sense- like gold and silver. I also believe that gold and silver are massively undervalued and still represent great value even after the latest run up in prices.
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