By Christopher R Rice (from around the web), TheUnderground
Future historians are likely to identify the Bush administration’s rash invasion of Iraq as the start of America’s downfall.
The causes of a crash like this are many and varied. While most media
sources tend to report on things in terms of a simplistic dichotomy
(this or that), reality tends to be more complex
World Economic Forum ranked the United States at a mediocre 52nd among
139 nations in the quality of its university math and science
instruction in 2010.
I have previously warned my readers that the damage caused by this trade war would get progressively worse the longer that it lasts.
Many companies have been trying to ride it out, but eventually the money runs out and layoffs start happening…
who thought that this trade war would not have very serious
consequences was just fooling themselves. According to one source,
tariffs paid by U.S. businesses are up 45 percent compared to a year ago.
Most people simply don’t understand the gravity of the situation. Nothing was ever fixed after the last financial crisis. Instead, we went on the greatest debt binge that humanity has ever seen, and central banks started creating trillions of dollars out of thin air and recklessly injected that hot money into the financial system.
Flooding the market with trillions of new fiat currency units and pushing interest rates to zero for the greater part of a decade made a new crisis inevitable. So now we are in the terminal phase of the largest financial bubble in human history, and there is no easy way out.
And that is why our leaders have been piling on the debt and global central banks have been recklessly creating money.
But it is inevitable that our bad choices would catch up with us, and the pain that we are going to experience is going to be absolutely off the charts.
This crash will be unlike anything the world has ever seen. Put simply, there has never been this much debt in the system (hundreds of trillions worldwide), so there will be no historical precedence for the crash. Under Trump, fiscal deficits will push up interest rates and the dollar even further, and hurt the economy in the long term.
Trump’s fiscal stimulus will fuel inflation more than it does growth. Inflation will then force the Federal Reserve to hike up interest rates sooner and faster than it otherwise would have done, which will drive up long-term interest rates and the value of the dollar still more.
This undesirable policy mix of excessively loose fiscal policy and tight monetary policy will tighten financial conditions, hurting blue-collar workers’ incomes and employment prospects.
It is worth remembering how America’s 1930 Smoot-Hawley Tariff Act triggered global trade wars that exacerbated the Great Depression.
The Nobel laureate economist Edmund S. Phelps has described Trump’s direct interference in the corporate sector as reminiscent of corporatist Nazi Germany and Fascist Italy.
To be sure, expectations of stimulus, lower taxes, and deregulation did boost the economy and the market’s performance in the short term. But, as the vacillation in financial markets indicates, the president’s inconsistent, erratic, and destructive policies have taken their toll on domestic and global economic growth in the long run.
The stock markets worst enemy is unpredictability and Trump is considered to be very unpredictable. Can you feel it? How greed is now giving way to fear?
Already, in anticipation of higher short-term rates, investors have driven longer-term interest rates higher. Yields on 10-year Treasury notes, for instance, reached as high as 2.86% on Monday, up from 2.40% at the start of the year and 2.03% in September.
The IMF’s latest Financial Stability Report, is a surprisingly candid discussion on the topic of whether “Rising Medium-Term Vulnerabilities Could Derail the Global Recovery”, which is a politically correct way of saying is the financial system on the verge of crashing.
In recent years, Republicans have been characterized by two principal positions: They like starting wars and don’t like paying for them. George W. Bush initiated two major wars in Iraq and Afghanistan, but adamantly refused to pay for either of them by cutting non-military spending or raising taxes. Indeed, at his behest, Congress actually cut taxes and established a massive new entitlement program, Medicare Part D.
Bush’s actions were unprecedented.
No one ever imagined a US president would actually conspire to attack his own country in order to engineer a political agenda…but one did. And now, by Trumps own inaction, is doing the exact same thing Bush & Cheney did.
The Federal Reserve bank and its manipulation of the currency supply is directly causing this depression.
Suddenly you reach a point where there is too much money chasing limited resources. According to economic theory, that is when inflation happens.
One group caused another group to lose their property’s value. In most places, this activity by another name is called “destruction of property” or “theft.” However, currency devaluation is such an esoteric and ingenious form of theft or destruction that it goes unnoticed and unexamined by the majority of the population.
Whenever central authorities inflate the currency supply it causes the value or purchasing power of the currency to decline. This value is basically lost or “stolen” from the people.
Debt brings consumption from the future into the present, and so it increases short-term economic activity at the expense of long-term financial health.
The only reason why we have even gotten this far is because interest rates have been pushed to historically low levels. If the average rate of interest on U.S. government debt even returned to the long-term average, we would be paying more than a trillion dollars a year in interest on the national debt and the game would be over.
Even common sense tells you a society completely based on financing there is something seriously wrong. Remember, the markets always surge before the crash. We’ve had the surge, so we know what comes next.
The entire western civilization and their governments are completely broke. What part of this do you not understand?
We can barely afford the debt service now at practically 0%, so just how exactly are people and the governments going to afford two, four or nine times the payments???
Our financial system is based on a pyramid of debt, and we have allowed Wall Street to operate like a giant casino. Our entire economy has essentially become a colossal Ponzi scheme.
A rather minor business cycle slowdown in 1994 was fought with a tidal wave of new credit under Fed chairman Alan Greenspan. That ultimately resulted in the Dot Com Bubble crash of 2000, but the lesson went unlearned.
Instead the Fed concluded that the idea was sound, but was simply not taken far enough. The elite cheerleading squad, captained by Paul Krugman, fully supported a doubling down, and the corporate media unquestioningly went along with the program.
So Greenspan and Bernanke created the Housing Bubble 1.0 by offering the world’s credit markets a price of money so low it couldn’t be refused. Housing was the story, and the Fed supplied the credit.
As predicted by a scant few of us, that all blew up spectacularly in 2008. And no constructive lessons were drawn from that experience, either.
With the political aircover to “save the system” (from the problems that it created!), Bernanke, Yellen, Kuroda and Draghi then led the most aggressive, coordinated central bank bender in all of human history.
Trillions and trillions were printed up, and many times that amount were leveraged and loaned.
Here we all are; stuck together in a world awash with credit. $250 trillion in debt. Four times that amount in unfunded liabilities. And a mind-bogglingly massive amount of tangled financial derivatives roughly the same size as both those debts and liabilities put together.
And the politicians never examine the costs to the public or the benefits to the public of financial reform. That is never part of the discussion.
As the U.S. economy collapses, you will not have access to credit.
Banks will close. Demand will outstrip supply of food, gas and other necessities. When the collapse affects local governments and utilities, then water and electricity will no longer be available. As people panic, they will revert to survival and self-defense modes.
A U.S. economic collapse will create global panic. Demand for the dollar and U.S. Treasurys will plummet. Interest rates will skyrocket. Investors will rush to other currencies, such as the yuan, euro or even gold. It will create not just inflation, but hyperinflation as the dollar becomes dirt cheap.
Millions of investors, pensioners, insurance customers, and creditors will lose a fortune. (The FDIC currently only holds enough reserve for 40% of the nations current depositors, which is pointless anyway since the dollar will have no value)
You can’t depend on fractional reserve banks to provide access to your funds during a crisis.
As occurred during the last crisis, we are likely to
see some traditional financial institutions and even national
governments become insolvent. They can print money in an attempt to stop
the bleeding, but this inevitably leads to high inflation or
Very few Americans have any significant savings today. Most live on
credit and those with savings have it stored in financial instruments
that will be wiped out as the bankers collapse the system to hide the
theft they have been involved in for decades. Those who think they will
retire with their IRA, pensions or social security will suddenly find
them all gone never to return leaving them with no means to care for
The debt load for the working poor has nearly quadrupled in the past 20 years as a percentage of their income.
It’s this system that dooms every average worker to poverty. And almost guarantees that the rich and the powerful will stay that way.
This was not some “random” event caused by uncontrolled “complexity”. This was engineered complexity with a devious purpose.
As the next great depression hits it will be unlike anything we have lived through before. Nothing will be as it seems and only those that have the resources to adapt will come through it whole. Preparation is the key to adapting to future events and those without resources will reap a bitter harvest as they struggle to survive. No announcements will be made, no warnings will be given by the establishment, it will just suddenly happen out of the blue and everyone will say it was unpredictable. But those who prepared will know better.
Those who trust in government or only live for today will reap what they sow and it will be unpleasant at best if they survive at all. A simple strategy to insure you do not suffer does not have to be expensive or complicated. The best plans are simple and allow you to adapt to the changing times.
History shows, pundits obsess over what precisely triggers a crash, as if that matters. It doesn’t, because ’cause’ of a
bubble’s bursting can be anything.
Click for more: How to fight the NWO
Click for more: How to Prepare
Click for more: Survival skills
This is the age old strategy of Centralization; to remove all choices within a system, by force or manipulation, until the masses think they have nothing left but the choices the elites give them.
For the last twelve months I’ve wrote, warning, what was coming, see articles/links below:
As World Financial Markets Tumble, Brace for the oil, food and financial crash of 2018 (December 5, 2018)
Federal Reserve to raise interest rates quickly (December 5, 2018)
Great Depression of 2018 With 1970s-Style Inflation (December 5, 2018)
US Economy Collapse, What Would Happen and How to Prepare (December 4, 2018)
WARNING: Trump’s hidden agenda PLEASE READ / SHARE (November 29, 2018)
Stock Market Crash: The Dow Has Fallen (November 23, 2018)
2018 Stock market collapse followed by nuclear war (November 12, 2018)
Asian Stocks Lose $5 Trillion This Year With No End in Sight (October 28, 2018)
Asian shares nose dive as Wall St. erases all of 2018 gains (October 24, 2018)
Global Banking Stocks Are Crashing Hard – Just Like They Did In 2008 (October 23, 2018)
Crash that will send Dow down 17,000 points (October 14, 2018)
Prepare for the biggest stock-market selloff in months, Morgan Stanley warns (July 30, 2018)
Debt Bubble(s) and the Digitization Of All Trade (July 14, 2018)
The Stock Market Is Being Torched Again (March 3, 2018)
Guggenheim’s Minerd warns of a possible replay of 1987 stock market crash (February 20, 2018)
How Wall Street’s ‘fear gauge’ is being rigged, according to one whistleblower (February 14, 2018)
EX-CIA GOLDMAN ANALYST: ‘We are in an extraordinarily dangerous time right now’ (February 9, 2018)
How America will collapse (by 2018) (September 27, 2017)
Secret China war plan: trillions in U.S. debt (August 28, 2017)
Wall Street is sending huge warning signs for stocks (July 31, 2018)
The IMF’s Big Currency Reset (July 18, 2017)
The Secret Global Reset Agreement (July 18, 2017)
Economic Collapse and the Digitization Of All Trade (July 17, 2017)
It Is Mathematically Impossible To Pay Off All Of Our Debt (July 7, 2017)
Fake growth, fake money, fake jobs, fake financial stability, fake inflation numbers (July 7, 2018)
Trump will carry Wall Street to the giddy heights of the 1920s before a fantastic crash, economists warn (July 6, 2017)
Bankruptcy guru Edward Altman sees similarities to 2007 in the credit market today (June 25, 2017)
Debt Bubble (June 15, 2017)
JIM ROGERS: The worst crash in our lifetime is coming (June 11, 2017)
WAIT THERE’S MORE:
Beginning of the Greatest Financial Crisis the World Has Ever Seen (December 17, 2018)
Debt Bombs Ticking Across the Globe (December 17, 2018)
Bubble, Meet Pin; It’s Just the Beginning of the Downslide (December 17, 2018)
IMF warns storm clouds are gathering for next financial crisis (December 15, 2018)
Janet Yellen Warns Another Financial Crisis Could Be Brewing (December 12, 2018)
James Rickards says Donald Trump can’t stop the next financial crisis (December 10, 2018)
Bank Stocks And Tech Stocks Crash As The Yield Curve Inverts (December 5, 2018)
Senate passes rollback of banking rules enacted after financial crisis (December 2, 2018)
GE Plunges Again as Analysts Double Down (December 1, 2018)
Apple’s stock tumble makes it unanimous — the FAANG bull market has ended (November 26, 2018)
Can OPEC+ Halt The Oil Price Slide? (November 25, 2018)
Crypto’s Worst Week Since Bubble Burst Puts Loss at $700 Billion (November 24, 2018)
Why The 1929 Stock Market Crash Could Happen In 2018 (November 18, 2018)
Growing Dangers to Stocks From the U.S.-China Trade Conflict (November 14, 2018)
How the China trade war could get very bad, very fast (November 14, 2018)
Crude oil’s collapse sends shock waves across global markets (November 14, 2018)
A ticking time bomb in China has global markets looking really shaky right now (October 27, 2018)
The market is ‘right in the eye of the storm,’ and two charts show dark clouds ahead, says Bank of America analyst (April 2, 2018)
Deleting Facebook’s billions: stock sinks as outrage swells (March 26, 2018)
Retailers are filing for bankruptcy at a staggering rate — and these 19 companies are next to default (March 18, 2018)
Bear Stearns 10 Years Later: Could the Great Financial Crisis Happen Again? (March 14, 2018)
BUT WAIT, THERE’S MORE:
America will fall Into Famine by 2019 (April 2, 2018)
Arrival Of The ‘End Game’ (December 4, 2018)
FAMINE FEAST: Squirrel (November 24, 2018)
Ancient Biblical Prophecies (November 23, 2018)
The Four Horsemen of the Republican Apocalypse (November 23, 2018)
Trump is the Last President! You are the Last Generation! (September 29, 2018)
Feast Of Trumpets 2018 | October Surprise (September 29, 2018)
9/11 Never Forget Never Forgive (September 10, 2018)
Apocalypse Now (March 17, 2018)
Join the underground railroad. Because if Julian Assange is not safe, no one is safe.