Only if we understand why and how certain kinds of economic controls tend to paralyze the driving forces of a free society, and which kinds of measures are particularly dangerous in this respect, can we hope that social experimentation will not lead us into situations none of us want.–F.A. Hayek The Road To Serfdom
If you want a picture of the future, imagine a boot stamping on a human face—forever. – G. Orwell, 1984
The pandemic represents a rare but narrow window of opportunity to reflect, reimagine, and reset our world.
* The U.S. won’t be the world’s leading superpower
* You’ll own nothing” — And “you’ll be happy about it. –
* Western values will have been tested to the breaking point.
– The Great Reset, WEF Klaus Schwab
This is the greatest organized conspiracy in human history and the press welcomes it with open arms. You will own nothing in 10 years, but you will also have no rights. – Papers Please! – Martin Armstrong
What our generation has forgotten is that the system of private property is the most important guarantee of freedom, not only for those who own property, but scarcely less for those who do not. – Hayek
The quotes above set the stage for the story unfolding. Really, it’s time to take the lipstick off the pig; the world economies are being deliberately destroyed in broad daylight.
In the name of “fighting inflation,” a condition caused by the same people “fighting” it, the cabal of globalist bankers who centrally control all the world’s monetary systems are raising interest rates while openly gorging on sovereign debt.
Meanwhile, the US and Western economies are in a deep nose dive with no recovery possible under the current monetary policy.
You don’t raise interest rates when the economy is already falling into a recession … Any central banker that would choose to raise interest rates just as a new recession is starting is absolutely nuts. Economics Collapse Blog
Raising interest rates into a recession only harms small businesses, individuals, and families struggling to survive. The “Fed” has been hiking its overnight rate to banks since March of 2022, wherein rates before were hovering just about above zero since June of 2020, and these rate hikes have had NO effect on inflation.
For example, today’s CPI Notice showing September Producer Price Index rose 0.4% over August. The inflation numbers to be announced tomorrow will show inflation is still rising.
Housing Market Sky Fall
Conversely, the economy has been slipping under the water faster with each new rate hike. Mortgage applications have dropped to the lowest level since 1997 and the average interest rate on the most popular US home loan rose to its highest level since 2006 as the housing sector continued to bear the brunt of tightening financial conditions, data from the Mortgage Bankers Association (MBA) showed on Wednesday.
The housing market is [the] main driver for the US economy, and without considering the derivative economic impact of homeowners represents nearly 20% of the US GDP; collapsing sales will have an enormous effect on the US economy.
Declining housing prices affect other markets, including the used and new car markets, as home equity credit for financing decreases.
Automobile Market Declining
Prices of used cars are showing price declines according to the latest Manheim Used Vehicle Value Index. Used car prices have fallen 13.5% since January, with the last two months providing 7% of that fall and projecting more decline. Dealers sitting on inventory with residual values falling will be forced to sell that inventory at a loss. Increases in the number of lower-priced used vehicles on the market put pressure on new car sales.
Inflation and Liquidity
Quantitative Easing is inflationary. The global debt market is in “dire straits,” and most would call it a raging emergency. The Bank of England doubled down on its emergency bond-buying scheme today, saying it would purchase up to £10 billion daily. While the US Fed quietly battles rising interest rates by buying massive debt. This strategy has so far produced only a short period of rate reductions, and market indicators are flashing “bond market crisis” in Europe and the USA.
The 10-year bond yield has risen to just under 4%. The gyrations in this bond yield are unprecedented, with unknown consequences for interest rate-sensitive investments and debt instruments.
In today’s news, I see […] the bond market is ‘very close to a crash. This article is by Larry McDonald, founder of The Bear Traps Report and author of “A Colossal Failure of Common Sense,” which described the 2008 failure of Lehman Brothers… McDonald expects more turmoil in the bond market, in part because “there is $50 trillion more in world debt today than there was in 2008.”
McDonald continues … the consensus among these money managers is “things are breaking” and that the Federal Reserve will have to make a policy change fairly soon.
Liquidity Dry Up
In the background, another problem is facing the final days of the world economies and, in our case, the US monetary system. As the “Great Reset” explained (see above), the US won’t be the world’s leading superpower going forward, which means the dollar will no longer be the world’s reserve currency.
The dollar will be just a failed, and worthless piece of paper people collect for novelty purposes or fire starters.
These dollars are already returning to the US, buying products and competing for higher-priced food and oil.
Inflation and rising interest rates mean payment failures, bankruptcy, and cash shortages. In the final stages of this bank-caused destruction – liquidity problems will bring the economy to a halt. Deflation in prices will result in fewer and fewer dollars at asset fire sales, and increasing prices on food, oil, and interest rate-related purchases will further reduce currency availability.
To mitigate liquidity problems banks and lenders of last resort will be forced to borrow more currency. More liquidity requires more debt as collateral, and more debt needs more liquidity for refinancing. This vicious circle will escalate inflation in the final moments, bringing the entire house of cards tumbling down.
In the logic of finance, the most basic element of the economy is cash flow and the most basic constraint on the behavior of every economic agent is the “survival constraint” which requires that cash outflow not exceed cash inflow. H. Minsky
Market Wrap Up
Silver and gold prices are managed and do not reflect free market value. However, shortages of silver and increasing demand are causing physical prices to rise despite the manipulation.
There has never been a better time to buy silver or gold as prices are artificially depressed.
Convert paper gold and silver certificates such as SLV and GLD immediately into physical metals, and remember, if you do not hold it you do not own it!
Market warning.
After U.S. equity inflows neared record last week, Bank of America has a warning
Things to be aware of:
US Congressman Introduces Gold Standard Bill as Inflation Spirals Out of Control
Biden Administration Introducing New Slave Currency System by Executive Order: Executive Order 14067—Ensuring Responsible Development of Digital Assets. This is getting attention now but was signed “quietly” in March.
This is the nose-in-the-door first “push” toward forcing Americans into digital gulags. The implications of a totally controllable currency are clearly evident in the EOs calls for input from all the agencies and corporations already controlling American lives and finance.
Final Thoughts
The world is not threatened by nuclear war or any actual attack from aliens but rather by the total destruction of the financial system. People are being divided, distracted, and disenfranchised from their power. They have not and likely will not stand up and demand an end to the Federal Reserve, private banking cartels, and centralized governments.
The rising population in the world over the past 100 years can be correlated with the introduction of money-from-nothing, parasite-enriching, debt-based currencies. When these destructive, wealth-destroying paper promises lose all purchasing power, the population will collapse too. This means individuals must prepare now to survive what has been set in motion.
The global finance and central government cabals have clearly stated their intention to create new world serfdom. In a world without private property, you will rent anything and everything you might require. You will be fed crickets to eat and provided a social-credit-funded bank account with time-limited digital numbers representing your available buying power – you will own nothing and be happy.
Here is what you must do now to prepare and be ready for our opportunity to reorganize during those precious days between the old system and the mentally ill planners’ New World Order.
Move away from cities.
Get food and water to last for at least 6 months. Convert paper assets into productive assets and stores of wealth. Productive assets can support you, such as farmland and tools. Stores of wealth include weapons and ammunition, silver (and optionally gold), books, solar gear, batteries, gasoline and propane, everyday items for barter, and more.
Plan to be part of the humanities victory and stay happy of heart. We will wait for our opportunity to act The current state of corruption and evil cannot be eliminated without pain, but the sure heart will pass through the darkness with determination.
The guiding principle in any attempt to create a world of free
men must be this: a policy of freedom for the individual is the only
truly progressive policy. F. A. Hayek The Road To Serfdom
** Ideas and suggestions in this article are my own opinions and are not intended to be financial advice.
Jack Mullen, MBA
* Note I am not giving advice, only my opinion, I am not a financial advisor. This article represents my thoughts about the economy only.
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Thank you, My Pleasure!
Very nice article Jack. It is always lovely to read your articles on the coming economic reset. You are probably the only person in my life that actually tells me the truth about the coming collapse in every aspect and avenues to expect. Thank you for all you do..