We’re F*ked: The Next Economic Scapegoat

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via Reddit:

Preface: As much as this is NOT a conspiracy, folks who are ignorant to the workings of the financial system will think it is a conspiracy, hence why I posted it here. We live in clown world, so most people will see that this goes against the media narrative, so they will discount it without looking into the merits/evidence of the argument. Ignorance is a choice. I choose to post this here because of the optics of it as well as the fact that r/conspiracy is one of the last bastions of free speech on Reddit.

Well, there is no perfect way to say this, so here it is: We’re f*cked. Our economy is f*cked and there is no way out except to let it burn to the ground. They have to let it burn to the ground. How do I know this? They’ve done it before.

March 2020 the stock market starts to crash. They say that it’s because of COVID. But it never was.

We never fixed the problems of leverage that caused the 2008 crash. Quoting from the beginning of this article below; thephilosophicalsalon.com/a-self-fulfilling-prophecy-systemic-collapse-and-pandemic-simulation/

“In pre-Covid times, the world economy was on the verge of another colossal meltdown. Here is a brief chronicle of how the pressure was building up:

June 2019: In its Annual Economic Report, the Swiss-based Bank of International Settlements (BIS), the ‘Central Bank of all central banks’, sets the international alarm bells ringing. The document highlights “overheating […] in the leveraged loan market”, where “credit standards have been deteriorating” and “collateralized loan obligations (CLOs) have surged – reminiscent of the steep rise in collateralized debt obligations [CDOs] that amplified the subprime crisis [in 2008].” Simply stated, the belly of the financial industry is once again full of junk.

9 August 2019: The BIS issues a working paper calling for “unconventional monetary policy measures” to “insulate the real economy from further deterioration in financial conditions”. The paper indicates that, by offering “direct credit to the economy” during a crisis, central bank lending “can replace commercial banks in providing loans to firms.”

15 August 2019: Blackrock Inc., the world’s most powerful investment fund (managing around $7 trillion in stock and bond funds), issues a white paper titled Dealing with the next downturn. Essentially, the paper instructs the US Federal Reserve to inject liquidity directly into the financial system to prevent “a dramatic downturn.” Again, the message is unequivocal: “An unprecedented response is needed when monetary policy is exhausted and fiscal policy alone is not enough. That response will likely involve ‘going direct’”: “finding ways to get central bank money directly in the hands of public and private sector spenders” while avoiding “hyperinflation. Examples include the Weimar Republic in the 1920s as well as Argentina and Zimbabwe more recently.”

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22-24 August 2019: G7 central bankers meet in Jackson Hole, Wyoming, to discuss BlackRock’s paper along with urgent measures to prevent the looming meltdown. In the prescient words of James Bullard, President of the St Louis Federal Reserve: “We just have to stop thinking that next year things are going to be normal.”

15-16 September 2019: The downturn is officially inaugurated by a sudden spike in the repo rates (from 2% to 10.5%). ‘Repo’ is shorthand for ‘repurchase agreement’, a contract where investment funds lend money against collateral assets (normally Treasury securities). At the time of the exchange, financial operators (banks) undertake to buy back the assets at a higher price, typically overnight. In brief, repos are short-term collateralized loans. They are the main source of funding for traders in most markets, especially the derivatives galaxy. A lack of liquidity in the repo market can have a devastating domino effect on all major financial sectors.

17 September 2019: The Fed begins the emergency monetary programme, pumping hundreds of billions of dollars per week into Wall Street, effectively executing BlackRock’s “going direct” plan. (Unsurprisingly, in March 2020 the Fed will hire BlackRock to manage the bailout package in response to the ‘COVID-19 crisis’).”

Just like in 2008, we kicked the can and blamed COVID. However, in 2008, kicking the can involved turning on the money printer. And now it is stuck in the ON position. As of this writing, if we do not change anything we are doing, the money printing will no longer outpace inflation as of March 2022.

Our legislators, on this current episode of the Dog and Pony show, are having a very public temper tantrum about raising or suspending the debt ceiling. Here’s the rub. We are heading towards economic collapse due to money printing, fiscal policy, over-leverage, etc. If we don’t raise the debt ceiling, we risk economic collapse. So either way we are going to have an economic collapse.

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Put yourself in the mindset of someone in the position of power. You’ve been a career politician for the last 40 years of your life. You’ve passed laws that have benefited your campaign donors. You’ve capitulated the minimum necessary to the general population as to prevent a common folk revolt. Now your chickens have come home to roost. Your sins against the American Dream must be atoned for.

So now you sit here with a three pronged choice.

  1. Stop the money printing that is leading to inflation. (Powell has said that its not the time to start tapering)
  2. Let it all collapse organically. (the issue with this is that the crimes of the wealthy will be on full display for everyone to see)
  3. Use your best scapegoat for the collapse. (The Debt ceiling fight)

I believe that using a scapegoat is the most obvious and easiest way “out” of this mess. No one expects a default, which is exactly why it’s time for us to default on our obligations and start to unwind this whole clusterfuck of global debt. After all, the model of scapegoating works; the most recent test of it being March 2020.

IDK what comes next, but I know that my investments should make me enough money to disappear if needed. There is a lot of pain coming to a lot of people and I take zero pleasure in that, no matter how much money I’m about to make.

Help who you can if you have the means and take care of those you love. If you make money off of this coming collapse, tell no one.

P.S. Someone ironed the wrinkles in my brain, so in conclusion, this is not financial advice.

Edit: I’m not giving financial advice no matter how many folks ask. I super appreciate all the engagement and comments, but I’m in no position to give financial advice to anyone. I’m just someone who sees a fuse lit and traveling towards a massive pile of dynamite (the economy) so I’m warning as many people as I can. I do not have any solutions to the woes that are about to plague the vast majority of folks. I wish everyone the best, but again, not giving any financial advice.

 

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