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Economic pressures

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  • KWN-Greyerz-IV-12192021.jpg

    years to get to a global debt of $1.5 trillion in 1971. And 29 years later debt had grown 66x to $100 trillion and since then it is up another 3x to $300T.
    Global debt is up 200x since Nixon took away the gold backing of the dollar and all other currencies.
    2019 the financial system came under severe pressure and central banks panicked in an attempt to save the bankrupt banking system with massive liquidity. Conveniently for the banks, they had an excuse for this money printing since Covid started a few weeks later.
    Normally governments need to start a war to have an excuse to print serious money. But a pandemic is a good reason too.

    Global derivatives outstanding were reported by the BIS in Basel (Bank for International Settlements) at $1.4 quadrillion in the mid 2000s. That figure was conveniently reduced by the BIS to around $600 trillion at the end of the 2000s by netting positions.

    Banks like Deutsche or JP Morgan have reported gross outstanding derivatives of $40-50 trillion. But all banks net the gross amounts down to insignificant levels, arguing that these low amounts are their real exposures.
    The problem with netting is that when counterparties fail, gross risk remains gross.

    Above that we see the known derivatives reported by the BIS of $600 trillion and on top of that the opaque financial system which is likely to be in the quadrillions of dollars.
    Since all monetary systems in history have come to an end, we have to assume that the biggest global bubble ever also will.
    And since this morbid system touches all corners of our lives and has led to a decadent world where moral and ethical values have virtually disappeared, the world needs a cleansing

    California Rewards Deadbeats Once Again With $80K Cash Giveaway To Delinquent Homeowners
    The name of the game is; Preserve asset values no mater how low wages go.

    1.5 Million Parents Could Drop Out Of Workforce If Biden Stimulus Passes; Analysis
    “The proposed expansion would get rid of the strong work incentives under the prior CTC... replacing it with something that discourages work,”
    HELL NO, We can't resurrect the happy, nuclear family. EVERYBODY has to work.

    Here Is The "Fallback Plan" Manchin Would Support... And Why Goldman Thinks It Wouldn't Move The Needle
    ...even if it were to pass next year it might not have much of an effect on the fiscal impulse to growth if it omits an extension of the child tax credit.
    WHY would they want to give a child tax credit at the same time that they are killing off children with poisonous "vaccines"?
    Get clear on your priorities and, keep killing the children.

    McMaken: The Fed Is Hawkish Now? I'll Believe It When I See It
    There are a lot of doubters that the FED will actually cut back on bond buying.


    • The State is in an all-out war to hold back price deflation. In spite of wage deflation, prices must never fall.
      All of this monetary inflation has benefited the speculators, passing the cost on to wage earners in the form of price inflation.
      Mises said that the final crash can NOT be avoided.
      Jay Powell says that he is going to cut way back on monetary inflation.
      The open question now is; will he carry through?
      Keep in mind that all presidents avoid a crash on their watch. Can Obiden stop Powell from removing the punch bowl now that the party has gotten out of hand?

      "In spite of these plans, the chances are very small that the Fed will end up being able to hike rates very much at all before the entire artificial economic construct comes crashing down."
      "This is because the yield curve is already rapidly heading towards inversion even before the tapering of QE has really even begun. An inverted yield curve is a predictor of a recession that has worked 100% of the time."
      Obiden still has 2 years to go on his term in the White House.
      "Meaning, by the time the QE taper is consummated, there probably won’t be very much room at all to hike rates before an inversion takes place."

      "But regardless of the Fed’s feckless nature, the fact remains that the biggest buyer and direct supporter of Mortgage-Backed Securities and Treasury Bonds, along with its stated support of corporate debt (including Junk bonds), will be exiting the market entirely come March ‘22. This leaves a tremendously dangerous vacuum in place, especially in non-government-backed debt. The Fed’s QE program has kept the massive real estate and equity bubbles afloat, as well as the $12 trillion worth of Business debt from imploding."

      For 2 years now, I have had the suspicion that many Republicans fought the re-election of Trump because they feared the crash would hit during his second term.
      I suppose that they had just extrapolated the existing exponential growth of debt and, concluded that the crash was inevitable.