Posted on 06/18/2022 4:56:35 AM PDT by blam
In my 16 years as an alternative economist and political writer I have spent around half that time warning that the ultimate outcome of the Federal Reserve’s stimulus model would be a stagflationary collapse. Not a deflationary collapse, or an inflationary collapse, but a stagflationary collapse. The reasons for this were very specific – Mass debt creation was being countered with MORE debt creation while many central banks have been simultaneously devaluing their currencies through QE measures. On top of that, the US is in the unique position of relying on the world reserve status of the dollar and that status is diminishing.
It was only a matter of time before the to forces of deflation and inflation met in the middle to create stagflation. In my article ‘Infrastructure Bills Do Not Lead To Recovery, Only Increased Federal Control’, published in April of 2021, I stated that:
“Production of fiat money is not the same as real production within the economy… Trillions of dollars in public works programs might create more jobs, but it will also inflate prices as the dollar goes into decline. So, unless wages are adjusted constantly according to price increases, people will have jobs, but still won’t be able to afford a comfortable standard of living. This leads to stagflation, in which prices continue to rise while wages and consumption stagnate.
Another Catch-22 to consider is that if inflation becomes rampant, the Federal Reserve may be compelled (or claim they are compelled) to raise interest rates significantly in a short span of time. This means an immediate slowdown in the flow of overnight loans to major banks, an immediate slowdown in loans to large and small businesses, an immediate crash in credit options for consumers, and an overall crash in consumer spending. You might recognize this as the recipe that created the 1981-1982 recession, the third-worst in the 20th century.
In other words, the choice is stagflation, or deflationary depression.”
It’s clear today what the Fed has chosen. It’s important to remember that throughout 2020 and 2021 the mainstream media, the central bank and most government officials were telling the public that inflation was “transitory.” Suddenly in the past few months this has changed and now even Janet Yellen has admitted that she was “wrong” on inflation. This is a misdirection, however, because the Fed knows exactly what it is doing and always has. Yellen denied reality, but she knew she was denying reality. In other words, she was not mistaken about the economic crisis, she lied about it.
As I outlined last December in my article ‘The Fed’s Catch-22 Taper Is A Weapon, Not A Policy Error’:
‘First and foremost, no, the Fed is not motivated by profits, at least not primarily. The Fed is able to print wealth at will, they don’t care about profits – They care about power and centralization. Would they sacrifice “the golden goose” of US markets in order to gain more power and full bore globalism? Absolutely. Would central bankers sacrifice the dollar and blow up the Fed as an institution in order to force a global currency system on the masses? There is no doubt; they’ve put the US economy at risk in the past in order to get more centralization.’
The Fed has known for years that the current path would lead to inflation and then market destruction, and here’s the proof – Fed Chairman Jerome Powell actually warned about this exact outcome in October of 2012:
“I have concerns about more purchases. As others have pointed out, the dealer community is now assuming close to a $4 trillion balance sheet and purchases through the first quarter of 2014. I admit that is a much stronger reaction than I anticipated, and I am uncomfortable with it for a couple of reasons.First, the question, why stop at $4 trillion? The market in most cases will cheer us for doing more. It will never be enough for the market. Our models will always tell us that we are helping the economy, and I will probably always feel that those benefits are overestimated. And we will be able to tell ourselves that market function is not impaired and that inflation expectations are under control. What is to stop us, other than much faster economic growth, which it is probably not in our power to produce?
When it is time for us to sell, or even to stop buying, the response could be quite strong; there is every reason to expect a strong response. So there are a couple of ways to look at it. It is about $1.2 trillion in sales; you take 60 months, you get about $20 billion a month. That is a very doable thing, it sounds like, in a market where the norm by the middle of next year is $80 billion a month. Another way to look at it, though, is that it’s not so much the sale, the duration; it’s also unloading our short volatility position.”
As we all now know, the Fed waited until their balance sheet was far larger and until the economy was MUCH weaker than it was in 2012 to unleash tightening measures. They KNEW the whole time exactly what was going to happen.
It is no coincidence that the culmination of the Fed’s stimulus bonanza has arrived right after the incredible damage done to the economy and the global supply chain by the covid lockdowns. It is no coincidence that these two events work together to create the perfect stagflationary scenario. And, it’s no coincidence that the only people who benefit from these conditions are proponents of the “Great Reset” ideology at the World Economic Forum and other globalist institutions. This is an engineered collapse that has been in the works for many years.
The goal is to “reset” the world, to erase what’s left of free market systems, and to establish what they call the “Shared Economy” system. This system is one in which the people who survive the crash will be made utterly dependent on government through Universal Basic Income and one that will restrict all resource usage in the name of “carbon reduction.” According to the WEF, you will own nothing and you will like it.
The collapse is engineered to create crisis conditions so frightening that they expect the majority of the public to submit to a collectivist hive mind lifestyle with greatly reduced standards. This would be accomplished through UBI, digital currency models, carbon taxation, population reduction, rationing of all commodities and a social credit system. The goal, in other words, is complete control through technocratic authoritarianism.
All of this is dependent on the exploitation of crisis events to create fear in the population. Now that economic destabilization has arrived, what happens next? Here are my predictions…
The Fed Will Hike Interest Rates More Than Expected, But Not Enough To Stop Inflation
Today, we are witnessing the poisonous fruits of a decade-plus of massive fiat money creation and we are now at the stage where the Fed will reveal its true plan. Hiking interest rates fast, or hiking them slow. Fast hikes will mean an almost immediate crash in markets (beyond what we have already seen), slow hikes will mean a drawn out process of price inflation and general uncertainty.
I believe the Fed will hike more than expected, but not enough to actually slow inflation in necessities. There will be an overall decline in luxury items, recreation commerce and non-essentials, but most other goods will continue to climb in cost. It is to the advantage of globalists to keep the inflation train running for another year or longer.
In the end, though, the central bank WILL declare that the pace of interest rates is not enough to stop inflation and they will revert to a Volcker-like strategy, pushing rates up so high that the economy simply stops functioning altogether.
Markets Will Crash And Unemployment Will Abruptly Spike
Stock markets are utterly dependent on Fed stimulus and easy money through low interest rate loans – This is a fact. Without low rates and QE, corporations cannot engage in stock buybacks. Meaning, the tools for artificially inflating equities are disappearing. We are already seeing the effects of this now with markets dropping 20% or more.
The Fed will not capitulate. They will continue to hike regardless of the market reaction.
As far as jobs are concerned, Biden and many mainstream economists constantly applaud the low unemployment rate as proof that the American economy is “strong,” but this is an illusion. Covid stimulus measures temporarily created a dynamic in which businesses needed increased staff to deal with excess retail spending. Now, the covid checks have stopped and Americans have maxed out their credit cards. There is nothing left to keep the system afloat.
Businesses will start making large job cuts throughout the last half of 2022.
Price Controls
I have no doubt that Joe Biden and Democrats will seek to enforce price controls on many goods as inflation continues, and there will be a handful of Republicans that will support the tactic. Price controls actually lead to a reduction in supply because they remove all profits and thus all incentive for manufacturers to keep producing goods. What usually happens at that point is government steps in to nationalize manufacturing, but this will be substandard production and at a much lower yield.
In the end, supplies are reduced even further and prices go even higher on the black market because no one can get their hands on most goods anyway.
Rationing
Yes, rationing at the manufacturing and distribution level is going to happen, so be sure to buy what you need now before it does. Rationing occurs in the wake of price controls or supply chain disruptions, and usually this coincides with a government propaganda campaign against “hoarders.”
They will hold up a few exaggerated examples of people who buy truckloads of merchandise to scalp prices on the black market. Then, not long after, they will accuse preppers and anyone who bought goods BEFORE the crisis of “hoarding” simply because they planned ahead.
Rationing is not only about controlling the supply of necessities and thus controlling the population by proxy; it is also about creating an atmosphere of blame and suspicion within the public and getting them to snitch on or attack anyone that is prepared. Prepared people represent a threat to the establishment, so expect to be demonized in the media and organize with other prepared people to protect yourself.
Be Ready, It Only Gets Worse From Here On
It might sound like I am predicting success of the Great Reset program, but I actually believe the globalists will fail in the end. That’s not going to stop them from making the attempt. Also, the above scenarios are only predictions for the near term (within the next couple of years). There will be many other problems that stem from these situations.
Naturally, food riots and other mob actions will become more commonplace, perhaps not this year, but by the end of 2023 they will definitely be a problem. This will coincide with the return of political unrest in the US as leftist factions, encouraged by globalist foundations, demand more government intervention in poverty. At the same time, conservatives will demand less government interference and less tyranny.
At bottom, the people who are prepared might be called a lot of mean names, but as long as we organize and work together, we will survive. Many unprepared people will NOT survive. Understand that the economic conditions ahead of us are historically destructive; there is no way that serious consequences can be avoided for a large part of the population, if only because they refuse to listen and to take proper steps to protect themselves.
The denial is over. The crash is here. Time to take action if you have not done so already.
Great post.
Man’s arrogance is his downfall. This has always been so.
“I just don’t understand what on earth the Democrats and RINOs get out of hurting our country this way.”
Feudalism.
Cartons of cigarettes.....coffee.....condensed milk in a can by Carnation...brass and lead.
Change in the wind...Welcome digital currency age..Got a Aunt has for the lack of a better term has the 1st dollar she ever made. She keeps some of her cash squirreled away not in a Bank like her kids houses and other places. Anyway ran by to drop off a few dozen eggs I sell her and had a little time to chat got to talking about the economy and I mentioned her the coming Digital age and how paper will be devalued out of existence and it came of a bit of a shock to her..A lot of older people do this and will be shocked when they are forced to turn in paper dollars for Digital dollars or face their paper currency devalued to the point of worthless. My Aunt has a great deal of money and she said it would finish her off if that happens, she is 87.. https://www.federalreserve.gov/newsevents/speech/powell20220617a.htm
“..The politicians view humanity as cattle to be husbanded, managed, and harvested...”
Exactly.
We, the “unwashed masses”, are NOTHING to them other than tax cattle that are to be milked every payday and again on April 15th via of their legalized theft program to fund their nefarious deeds.
Then, they run our money thru the official U.S. Congressional Laundry Mat, such as the Ukraine, where it comes out nice, clean and ready for “under-the-table” deposit into their personal accounts.
I utterly despise these communist UniParty SOBs....spit.
Gold is entirely different. Look at which countries are purchasing and have purchased larger amounts of gold and other precious metals. That market has been and is completely manipulated by plunge protection teams. They keep the price banded. That will only pay until they run out of options.
The beauty of what you are saying is that those with pride who hate God will miss out. We are at point where there are fewer death bed conversions. I used to joke that the fewer people who prayed, the quicker God hears and acts, but of course that’s just a joke; the punch line is unspoken, that fewer are praying. God knows our heart thus we will not fool him.
On another note - where do we move to get out of harms way in the form of the population?
So if the economy “collapses” then will 3rd worlders STOP coming?
_____________________________________________________________
The economy WILL collapse. We won’t know it as a collapse because of free food, free rent etc. but it will be a collapse. When this happens many Americans will simply have had enough and start taking matters into their own hands. Illegals will have to contend with mobs. Illegals will have to find safe havens to keep from getting killed.
When the collapse comes there will be a them or us mentality and the them won’t do well. Americans won’t like having to be told they can only eat beans and rice and won’t like being told they can only have a little bit of that.
Americans have guns. Our government, make that our leftist government knows what people with guns do when the economy gets bad enough so they will try much harder in the coming months and years to take away guns but it won’t keep revolt from happening. People with guns feel a sense of empowerment and don’t like being controlled they will fight back and it won’t be pretty.
When it gets bad the rights of the minorities will fade away into nothingness. Gays and transgenders will be hit hard. Illegals will be hit even harder.
There will be a significant portion of society that the leftists ideals will appeal to but they will be greatly outnumbered by what we now call conservative thought.
People that produce want to produce but want to be rewarded. Socialism never works because it is patently unfair. Unfair in that people that produce more won’t participate at the rate of their production, they will get what everybody else gets and their production rates will eventually fall to meet everyone else’s level of production. When that happens there will be too little production of goods to meet demand. It may take a while but the hidden guns will start showing up at that point and a revolution will occur.
More likely we are weeks away from deflation starting up. Food and fuel will be the exceptions. There is no global reset on the horizon as half the world’s population is going on the gold backed ruble with Russia. Say thank you to Putin for the save.
Most are multi-millionaires when they leave government to take a lobbying job for millions more.
TO me that still doesn’t make much sense because most of the “leaders” are well past their prime and they won’t be around if and when this NWO takes over. And they are all old enough to know how this sort of thing ends up and that their necks will be the first on the block.
Not just tax cattle. Production cattle too. Wealth of any civilization depends on exploiting a few natural resources and converting them. Natural resources are plentiful. Water, whatever is in the dirt (mineral wealth, agriculture, forestry). Accumulations of capital have, since the end of hunter/gatherer era, set the direction for discovery, exploitation, and conversion. It is the nature of humanity that the rich and powerful exploit the weak.
Nothing new under the sun.
At any rate, just like my chickens mean something to me, I'm sure we mean something to those who husband us. They are directing us for our own good. They feel good about themselves too. In their minds, they are brilliant leaders.
“I changed the world!”
IMHO, what they get is that they prevent certain incriminating information from being released to the public by their Asian masters.
The NWO is here, now, and they have those cushy sinecures now. Some are driven by arrogant legacy building.
-- And they are all old enough to know how this sort of thing ends up and that their necks will be the first on the block. --
They are not wise. They think they can control things that can't and shouldn't be controlled. None foresee collapse on their watch, all feel very secure with the might of the US armies there to protect them against all threats, even threats from the mixed bag of peeps who occupy the country.
Great outline.
The irony is that the political front - the Puppet and our elected, so-called ‘leaders’/policymakers - seem oblivious to the effects (at least that’s what they project). Otherwise, they’d have had better propaganda than “Putin’s price hike” and a total 180 from having stolen credit for the ‘roaring’ economy from Trump.
Any ‘republican’ who wins this Fall & doesn’t vote to defund the government to compel a favorable policy trajectory for Americans deserves righteous punishment, just like the rest of them having intentionally placed us in this untenable position. Likewise, it applies to their supporters: They exist all around each of us.
It’s not just a moral imperative for either selfish ends or, for that matter, the benefit our offspring: Many of us took an oath (and so did those cited prior who now qualify for extrajudicial punishment for having violated said oath).
If there has to be a name, label it “P*****k’s Revenge” (as in H**ry; pardon the cheap attempt to camouflage a public post). It should begin in each person’s sphere and should ensnare local leaders.
Make a list if you don’t have one.
“The chair is against the wall.” We need an effective means to communicate this message and coordinate. I am surrounded by domestic enemies, but I’m fairly confident that we outnumber them by 2:1. The problem is that those who are motivated to act are in the distinct minority.
“What does it take?”
THAT is the question.
Within the Great Reset lies the seeds of its own destruction.
Do not comply.
Do not produce for the common good.
Slow Roll!
*
Everything several generations created, saved, worked for is setting up to be wiped out.
Boomers who were told SS would not be available to them at retirement, so they planned, scrimped, saved are still going to lose in the end due to government spending and the Fed.
The end of the American entrepreneur, end of innovation, end of the American dream.
Was it over when the Germans bombed Pearl Harbor?
Here we go again..
10 out of 12 spies agreed: always with the negative waves. Yet Moriarty passed away over a year ago.
God Bless Jim Robinson for planting his humble little seed of faith in a Free Republic. Perseverance pays off bigly.
A RePublic
If you can keep it (the faith)
The common man a king. From lead to gold, from Pb to Au... it's all in there. A king on every corner, a regular "dude" [דוד, "David"], unlike the formula for the kings of every other nation. Alchemy made simple. That's the idea. ~ EZ
founder -- a person who manufactures articles of cast metal.
The golden calf was made out of... gold. As in, meet the new boss, same as the old boss: the oppressive, worthless perpetuator of bondage and dysfunction.
EZekiel 37
9. And he said to me, Prophesy to the breath, prophesy, son of man, and say to the breath, Thus says the Lord God; Come from the four winds, O breath, and breathe upon these slain, that they may live:
10. And I prophesied as he commanded me, and the breath came into them, and they lived, and stood up upon their feet, a very large army:
11. Then he said to me, son of man, these bones are the whole house of Israel; behold, they say, Our bones are dried, and our hope is lost; we are clean cut off:
12. Therefore prophesy and say to them, Thus says the Lord God; Behold, O my people, I will open your graves, and cause you to come up out of your graves, and bring you into the land of Israel:
13. And you shall know that I am the Lord, when I have opened your graves, O my people, and brought you up from your graves:
14. And I shall put my spirit in you, and you shall live, and I shall place you in your own land; then shall you know that I, the Lord, have spoken it, and performed it, says the Lord:
Top Gun: Maverick...
Has anyone noticed that the Top Gun house -- aka the Graves House -- came back to life last month as the "High Pie" dessert shop?
Or that the first light on the Continental US (in the summer, from March 25th to Sept 18th) is on MarsHill mountain, at the place named Big Rock? The address is 37 Graves.
Or that the location of Israel on Free Republic is 37?
Or that the highest soul level -- the one that is the all-inclusive, all humanity soul of the Messiah (the total round up, named "Yechida" יחידה meaning unit, as in unity)-- equals 37?
Or that DAVID Seeds, "An American Original" was established in Fresno, CA, the home of Free Republic?
Didn't think so. So many positive waves.
These times are drawing out all of the sunshine thieves, the darkness addicts who are determined to bury the sun in a grave:
Matthew 13
24 Another parable put he forth unto them, saying, The kingdom of heaven is likened unto a man which sowed good seed in his field:
25 But while men slept, his enemy came and sowed tares among the wheat, and went his way.
26 But when the blade was sprung up, and brought forth fruit, then appeared the tares also.
27 So the servants of the householder came and said unto him, Sir, didst not thou sow good seed in thy field? from whence then hath it tares?
28 He said unto them, An enemy hath done this. The servants said unto him, Wilt thou then that we go and gather them up?
29 But he said, Nay; lest while ye gather up the tares, ye root up also the wheat with them.
30 Let both grow together until the harvest: and in the time of harvest I will say to the reapers, Gather ye together first the tares, and bind them in bundles to burn them: but gather the wheat into my barn.
THE DOORS are world- famous for these words:
Come on Baby light my fire.
American Progress: arriving at the speed of light, carrying plenty of rope. School Book in hand. Subject: Manifest Destiny:
Ingenious.
Can-DO!
If anyone wants to learn to walk.. to run a marathon actually, Jim Robinson can teach exactly how that's done.
With God, all things are possible.
Where we're going, we don't need roads.
"Imagine what you'll know tomorrow." ~ Agent K
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