Let me quote SIR Greenspan " we're headed for complete financial chaos". Is that clear enough? I'm not being sarcastic. It's just that people, in general, are oblivious.
NOBODY has the money to keep America going. There is always the possibility of pulling a rabbit out of a hat. Celente said that if America were to utilize ZPE, they could survive. The existing power structure isn't likely to let go of their hold.
The big problem is momentum. The economy is so big that it's very hard to change direction. You're probably aware that the National Guard put up advertisements looking for people to staff the internment camps. What does that imply to you?
if GOV lied about $ 509 billion in bond sales,,,, the FED is only going to buy $200 Billion,,, the FED is going to cut off currency "printing" on, of all dates, April fools day. This tells you that there is way less in the treasury that reported. It also tells you that, after the first quarter, the treasury will have almost no money to operate.
It's far too late in the game for GOV to save itself by raising taxes. Reportedly, GOV has $ 50 trillion in the CAFR accounts. I doubt that GOV can or will liquidate.
Money is a claim on labor and materials. If nobody is working or producing, what is the value of those claims? Hyperinflation is when you have way too many claims for the amount of labor and materials. You can accomplish hyperinflation by increasing the number of claims or by reducing the amount of labor and materials.
The US is doing both.
GOV is so busy destroying wealth to prosecute wars that, all it has left is debt.
Imagine if a farmer has a big property producing food products. He sells lots of food and buys a gold bar. He stores the gold bar in his attic.
Now, imagine that same farmer produces the same products and uses the money to buy more farm land. This is a weak analogy for bonds. The wealth is withdrawn from the producing economy. Since banks only create the principle, not the interest, the economy is forced to grow just to service the debt.
The gold bar and the bonds have no intrinsic value. They can only be used as a claim against future production. The PTB are siting on $ quadrillions "worth" of debt instruments that only have value if there is production. In America's case domesticproduction. What value are our bonds?
The banks withdrew the money out of the economy to keep us from getting too comfortable,,, and stop producing. This was OK with the PTB because it tended to limit the birth rate. This artificial poverty is the reason that the US doesn't have 500 million people. Malthus was/is right. He was just wrong on his timing. Peak food producing resources HAS to appear some day.
The US was/is no longer competitive. The FED tried lots of subterfuges to draw in foreign money. It worked for a while. The foreign money has stopped flowing. The banks try to rescue the banks first. With so much blood [wealth] lost, there is no way to revive the corpse. Transfusions of toxic debt just can't re-animate the economy.
The banks will sacrifice the dollar rather than sacrifice themselves. The banksters hope to come out on the other side with control of a huge part of the economy. If the economy collapses and we all slip towards a global mean wage, their bonds won't be worth much.
Shoot, I'm no economist
