Economic pressures

[Danny B]

The nation and the economy were taken over by the non-producers. They looted the producers. Makes sense. No point in stealing from people who produce nothing.
Armstrong claims that a republic will always change into an oligarchy.

ol·i·gar·chy

/ˈäləˌɡärkē/
Learn to pronounce
noun
noun: oligarchy; plural noun: oligarchies

• a small group of people having control of a country, organization, or institution.
  • a country governed by an oligarchy.

1/14 “655 people have $4 trillion. 200 million can’t cover a $1000 expense.” – ECB
At the same time, A democracy has always devolved into socialism & communism.
Armstrong now advocates Democracy. The problem isn't so much the system.
The problem is human nature. Everybody wants to live an easy life supported by the work of others.
A democratic republic was hoped to be the solution as offered by the founding fathers.

Now, there is a big push to eliminate the electoral college. This would further enslave / impoverish the rural areas in debt-service to the much more populated cities.
The beggars, bankers and bureaucrats see funding slipping away as the producers grow ever-poorer.
The new domestic terrorism laws are expected to keep the producers hard at work and locked down.

NOBODY will be allowed to write or speak of anything that has to do with freedom of any kind.
Armstrong;
All the scenarios of gold etc., as the hedge against inflation will fail. We are in a world where you cannot transfer all your assets into gold and hop on a plane — they will confiscate everything you have. We will be running Socrates on overtime. It appears we have higher volatility coming from a February turning point. But in all honesty, we will probably have to restrict those suggestions to the private blog because we have blocked Google from searching that forum — the Basic Level of service that includes private blog access is only $15 a month. We will have to let Socrates do the forecasting, for there can be no bias nor allegations of a computer being a domestic terrorist. Everything that 9/11 did to target foreign terrorists will now be turned inward against Americans if you are using the words “freedom,” “rights,” or “liberty.”
https://www.armstrongeconomics.com/p...ates/what-now/

Armstrong;
ANSWER: We have entered a new Cold War which will eventually turn hot. The Politicians are using COVID to destroy the economy deliberately to usher in a new age of Authoritarianism.
The world is falling apart and every possible thing the Democrats are doing is leading to the Great Divide which will fracture the United States and fulfil what our model has been forecasting to my regret.
This is not a forecast that gives me any pleasure. I simply interpret what the computer has done. There will be no returning to normal. We have passed the point of no return. Now we have to look at where to park money to survive the chaos ahead.

Armstrong predicted the crash in sovereign debt. The State is / was well aware of the approaching crash.
The bond vigilantes would no longer buy State debt. The CB took that over.
The stock market had no earnings. The CB / FED took over the job of pumping up markets. You got richer on paper because stocks rose regardless of earnings.
Wet ink money supported all the markets.
Excellent article from C. H. Smith.
https://www.zerohedge.com/markets/fi...ancial-tidbits
4. Financial assets as a percentage of Gross Domestic Product (GDP) hit an all-time extreme. Note that in the "Glorious Thirty" postwar years (1946-1975) of broad-based prosperity, financial assets were around three times GDP. Now financial assets are over six time the GDP.
This ratio increased with every one of the three bubbles since the mid-1990s: the dot-com bubble in 1999-2000, the Global Financial Meltdown in 2008-09 and now the bubble of 2020-21
Each bubble has been bigger because the POTUS didn't want a crash on his watch.
https://www.zerohedge.com/markets/fi...ancial-tidbits

The CB has bought up every market to try to keep sentiment from creating a final crash. At the same time, the Marxists are deliberately trying to crash the economy.
1/14 Lockdowns: one of the greatest economic blunders in history – Daily Reckoning

It doesn't look to get any better.
965k Americans filed for first time jobless claims in the first week of 2021 - a massive jump from last week's 784k and well above expectations of a 789k rise...
Stocks, Yields Rise On Expectations Of "Biden's Trillions"

World Bank Head Sees "Quiet" Financial Crisis Brewing As Pandemic Lingers

Yields Surge As Stunned Traders Learn Biden To Propose Massive $2 Trillion Stimulus

A Nation Imploding: Digital Tyranny, Insurrection, And Martial Law

How COVID Paved The Road To Serfdom

California Is Worse Than You Think
here is little or nothing that the current progressive state government has done that promotes the promotion of real wealth in California, yet even as state authorities actively destroy economic opportunities, the voters respond by demanding more of the same...

[Danny B]

Armstrong;
1. The Model still shows World War is coming 2025-2027 time period.
2. PRIVATE BLOG – The Reserve Status of the Dollar will End by 2028
Youtube, China Military Plans to Fight US with 1000 Nuclear Warheads:

Lt. Gen Tom McInerney - World War III has started Listen To This Interview - Important Information
BREAKING: Michael Flynn Addresses The Nation: 'Do NOT Give Up!' BIG CHANGES COMING!!
86,059 views
•Jan 13, 2021
So, the dollar will lose it's reserve status AFTER WW III

1/10 2020 was the joint hottest year on record – IFL Science
1/09 Coldest in recorded history in Spain, China, Canada – Dr. Sircus

---

[Danny B]

"However, the dominant approach to economics—known as “Neoclassical Economics” —ignores them completely, on the a priori grounds that the aggregate level of private debt doesn't matter: "
The credit bubble MUST grow non-stop. As private debt rises, people become debt saturated and can't take on any new debt.
The corporations destroyed the linkage (wages) between themselves and the working class.
There are over 100 million NOT in the labor force.

Americans Have Cut Their Debt by 30% Since 2018
by Christy Bieber | Jan. 2, 2021
In 2018, the average debt balance among those who owed money was just over $38,000.
In 2020, the total average debt balance among those who owe fell to just $26,621
The private debt bubble is shrinking. The credit bubble must grow so, the State is pumping liquidity into the upper loop so that credit can grow somewhere, somehow. With derivatives failing, it takes a LOT of fresh liquidity.

In a democracy, the people count for something. They count not at all in a corporatocracy.
The corporate control of ALL news reinforces their position of control. Their stranglehold on advertising keeps them well funded.

"It wasn’t the year we did something substantial about Big Tech and the incredible influence and control it has established over our individual and collective lives.
"My friend, Senator Ted Cruz, said in an interview on Saturday while he was campaigning in the Senate races down in Georgia (races where Facebook recently disabled the Republican fundraising pages) that Google was “the most dangerous company on the face of the planet.”
Dr. Robert Epstein before a Senate Judiciary Subcommittee on the Constitution. Dr. Epstein suggested that Google’s manipulated search results shifted 2.6 million votes to Democrats in 2016, a phenomenon known as the “Search Engine Manipulation Effect.”

While many people still hold in doubt the true results of the 2020 Presidential Election, and regardless of the eventual outcome, the power of Big Tech is now consolidated and complete. 2020 was the year that Silicon Valley boldly and broadly made it clear they would not even attempt to hide their true intentions: to control America, both in terms of what issues need to be promoted or suppressed, and what discussion would be permissible regarding those issues.

if the FBI barged into our auditorium at that very moment and stopped our event, seized all of our phones, and deleted all of our content, we would ultimately find ourselves in front of a judge who would deem those actions by a government agency to be unconstitutional.

However, I would then point out, if Google, Facebook, and Twitter decided to censor and take down all our posted and shared content from that event, they would actually be acting within their First Amendment rights. Before a judge, they would win. They own the platforms. They get to set the rules of the game.
The world we are now living in is a world that is being defined by Big Tech giants. They are deciding what the issues are, what the policy solutions are, and what conversations can be had around both. Without the ability to freely exchange information and ideas, there can be no freedom.

Larry Ellison is going to make sure that the NWO runs smoothly
https://www.wakingtimes.com/big-tech...595bc-54347961

Armstrong; PRIVATE BLOG – BigTech & Why They Are Censoring the World
It makes perfect financial sense from the corporate P.O.V. Destroy every bit of competition from small vendors.

[Danny B]

Another comment;

Chinese policymakers aren’t using that dodgy, old, 1920’s neoclassical economics are they?

You can tell because they are making all the classic mistakes everyone makes with this dodgy economics.

The Chinese are then doing something we don’t see elsewhere.

They are learning from those mistakes.
Davos 2018 – The Chinese know financial crises come from the private debt-to-GDP ratio and inflated asset prices
https://www.youtube.com/watch?v=1WOs6S0VrlA
The black swan flies in under our policymakers’ radar.

They are looking at public debt and consumer price inflation, while the problems are developing in private debt and asset price inflation.

The PBoC knew how to spot a Minsky Moment coming, unlike the FED, BoE, ECB and BoJ.
A year later, and they had made further progress.

Davos 2019 – The Chinese know bank lending needs to be directed into areas that grow the economy and that their earlier stimulus went into the wrong places.
https://www.youtube.com/watch?v=MNBcIFu-_V0
They had pumped bank credit into areas that don’t grow GDP, and the private debt-to-GDP had risen to a level they were on the verge of a financial crisis.

Everyone does that with neoclassical economics, but they don’t usually see the financial crisis coming.
The Chinese wanted to increase internal consumption, but they were using neoclassical economics and let real estate rip.

The equation makes it so easy.

Disposable income = wages – (taxes + the cost of living)

The cost of living term goes up with increased housing costs

The disposable income term goes down.

They didn’t have the equation, they used neoclassical economics.

The Chinese had to learn the hard way and it took years, but they got there in the end.

The Chinese have now realised high housing costs eat into consumer spending and they wanted to increase internal consumption.

[Danny B]

The corporations destroyed the linkage (wages) between themselves and the working class. This looked good on paper with them getting rich. Very little money filtered down to the working class. In turn, the working class ran out of money and, couldn't supply the necessary capital to keep earnings going in the stock market.
"The total market capitalization of the U.S. stock market is $36,258,650.9 million"
So, where does the capital come from to keep earnings alive for this $36 trillion market?
It comes from wet-ink "money" created by the State.
Yesterday, I posted an article from C.H. Smith. Today, I want to heavily quote from the comments. Several of them are brilliant.

What you've described in this article, is the life-cycle of stars and indeed, of everything in the material universe..

The only saving grace, is that some stars don't get to the stage whereby they implode once they run out of energy.. Some stars implode much earlier, while still possessing massive energy reserves and their implosion creates a new cycle of creation from the debris, for instance, Russia, China..

Those two were fortunate, probably something to do with their existential philosophies..

Implosions that are terminal, seem to occur mostly in western societies and the reason why is obvious..

For instance, Rome, Spain, Portugal, Greece, Britain etc. never recovered, their implosions were terminal, meaning they used up all their energies before implosion, unlike folks in the East who imploded while still energetic metaphysically and were reborn like phoenixes arising from the ashes of implosion..

Now Charles, as averred, energy necessary for rejuvenation, is not physical or material, it's metaphysical, meaning that if the metaphysical accounts of a nation or society goes negative or near depletion before implosion, that's it for the societies..

It doesn't mean they cease to exist per se, some do, but it means they can't recover lustre, or put simply, they can't recover their glories, and thus, become like dwarf stars, emitting no light, and possessing no vigor..

As above Charles, so too below..

What's compounding the western societies problems, is the virus of exceptionalism which makes recalibration impossible. For instance, while Rome, the empire still had a chance at recovery, folks back then, just like now, were imbibing delusions of Roman glory even while it was declining precipitously, with other societies rising in power..

The empire was stuck in a lethargic quicksand of inability to alter trajectory and again, the problem was exceptionalism..

Look at Iran, it has periodically imploded while still energetic and thus, managed to survive as a civilization for thousands of years, same with China, same with Russia, and same with Damascus, India, and the South East Asian nations..

And for the US, we expect same and why?

Because of E Pluribus Unum, which is the antidote to Western terminal implosion, and that, Charles, is why probation will be in effect only till the summer to avoid terminal implosion..

Put simply, someone has great interest in preventing a terminal implosion so then, there'll be an implosion before the zero barrier to inevitability is crossed, we already mentioned that earlier, that some generational cohorts will bear the cost of implosion so the healthy generational cohort can begin anew..

It's either that, or long stagnation to sequester the available metaphysical energy, in which case, there'll be unremitting lethargy for ALL the generational cohorts till rationality is obtained..

Concisely Charles, events actually occur in the metaphysical, the physical, is only effects, not causes and that, is what we've been trying energetically to make folks understand and that Charles, is why intellect can't devise solutions and why?

Because intellect is good only for understanding the material, it can't understand the metaphysical, where causes originate..

It's like trying to understand emotions by listening to heartbeats. Sure, you may understand that a heart beats faster when agitated, or slower when at rest, but it still won't tell you the cause of the beats cogently. You may deduce fear or excitement, but you still won't understand exactly how the fear or excitement causes the heart to beat faster..

You might erroneously attribute it to chemical reactions, or emotion perturbances but you still won't understand the cause of the "perturbances"..

To truly understand, you'd need something beyond intellect, empathy for example, and empathy Charles, is NOT a physical principle, it's a metaphysical one..

ANOTHER COMMENT:

Why did the roaring 20s lead to the Wall Street Crash and the Great Depression?

US policymakers were using neoclassical economics and didn’t have a clue what was really going on.
The economics of globalisation has always had an Achilles’ heel.

In the US; the 1920s roared with debt based consumption and speculation until it all tipped over into the debt deflation of the Great Depression. No one realised the problems that were building up in the economy as they used an economics that doesn’t look at debt, neoclassical economics.

Not considering private debt is the Achilles' heel of neoclassical economics.
As they headed towards the financial crisis, the economy boomed due to the money creation of bank loans.
https://www.bankofengland.co.uk/-/me...rn-economy.pdf

The financial crisis appeared to come out of a clear blue sky as they used an economics that doesn’t consider debt, neoclassical economics.

The Americans are gluttons for punishment, aren’t they?
They have done it again!
At 25.30 mins you can see the super imposed private debt-to-GDP ratios.
https://www.youtube.com/watch?v=vASt...toCR-R&index=6
No one realises the problems that are building up in the economy as they use an economics that doesn’t look at debt, neoclassical economics.

1929 – US

1991 – Japan

2008 – US, UK and Euro-zone

The PBoC saw the Chinese Minsky Moment coming and you can too by looking at the chart above.

The Chinese were lucky; it was very late in the day.



No one has got the faintest idea what they are doing with this dodgy economics.



How did Japan avoid a Great Depression?

They saved the banks
How did Japan kill growth and inflation for the next thirty years?

They left the debt in place and the repayments on that debt killed growth and inflation.
https://www.youtube.com/watch?v=8YTyJzmiHGk
It’s not as bad as Japan as we didn’t let asset prices crash in the West, but it is this problem has made our economies so sluggish since 2008.

Western governments are always fighting the drag anchor of all that private debt in the economy, which tends to kill growth and inflation.

Japan has been like this since 1991.



It gets worse ......

The Japanese are miles ahead in their understanding of events after the financial crisis.

They have had thirty years to work on it.



Japanification is a private debt problem.
Japan understood the problem and used fiscal policy.

The money supply ≈ public debt + private debt

They paid down private debt and used Government borrowing and spending to maintain the money supply as they deleveraged to avoid debt deflation.

The West didn’t know what was really going on and tried to use monetary policy to cure a private debt problem with more private debt.



What else does Japan know that we didn’t?

Austerity is the worst thing you can do in a balance sheet recession.

When the private sector are deleveraging, you need to increase public borrowing to maintain the money supply and avoid debt deflation (a shrinking money supply)

In the West, we didn’t try and get private debt down; we didn’t even know that was the problem.

We tried to cure a private debt problem with more private debt.



QE can’t get into the real economy due to a lack of borrowers.

The banks are ready to lend, but there are too few borrowers as they are struggling with the debt they have already taken on. They had saved the banks, but left the debt in place.

We did the same thing.

QE can’t get into the real economy, but it can get into financial markets.

The gap between economic fundamentals and the US stock market widened until it reached 1929 levels.



This is why the Japanese didn’t do much QE until Kuroda, as they knew it couldn’t get into the real economy when people were more concerned with paying off existing debt than taking on new debt.

Richard Koo has no idea what Kuroda is doing and has put this down to him having no central banking experience.
Personally I think Kuroda does know what he’s doing.

He knows QE can’t get into the real economy due to a lack of borrowers, but is using it to inflate asset prices as this is what QE does best.



The Western central banks have been using monetary policy to try and cure a private debt problem with more private debt.

They didn’t see the problems developing in private debt.

They didn’t know the problems were caused by private debt.

They tried to cure the problem with more private debt.

“We cannot solve our problems with the same thinking we used when we created them.” Albert Einstein.

He’s right, but we tried to do just that.
Not considering private debt is the Achilles' heel of neoclassical economics.

Just like it was in the 1920s.

[Danny B]

C.H. Smith writes about some of the important factors that we haven't been paying attention to. They don't look good.
https://www.zerohedge.com/markets/20...21-main-course
Stocks, so far this year.
https://www.zerohedge.com/markets/wo...-dot-com-crash

After careful consideration, however, the best article I have found to explain what happened last year was this, from Unherd Magazine: 2020: the year the elites failed upwards. A few choice highlights include:

Elite institutional authority is everywhere collapsing in a bonfire of self-immolation even as elite institutions become ever more powerful….The iron law of the American elite is that as long as everyone fails together, everyone fails upwards. Regime loyalty is the herd immunity of the ruling class, a protection against the consequences of their own failures. This is why the loss in authority that manifests in the “crisis of experts”, while real, doesn’t diminish their power. But it’s also why the regime has to become more ideological and nakedly coercive — for a kingdom of experts without reliable expertise falls back on propaganda and state power.

There are so many examples of this to draw from that one does not know where to begin. Yet how could we not look at markets too? How *they* continue to fail upwards!
https://www.zerohedge.com/markets/ra...exactly-to1937

[Danny B]

I found a good article with great graphs. I'll do a few excerpts.
"The US government transferred $2 trillion directly to the household sector in 2020 (Exhibit 7)
In less than one month $30tn had been wiped off the value of global stock markets (Exhibit 3)
US unemployment rate soared to 15% as 70mn people filed for unemployment benefits in 2020 (Exhibit 4)

• Central banks spent over $1tn a month on financial assets via QE, crushing yields, volatility, and spreads, successfully inciting asset price inflation on Wall St to short-circuit recession on Main St.

Yep, they've gotten more practised at kicking the can down the road.

$14tn of fiscal stimulus was announced; the quantity of global debt now stands at a record $277tn,
rebound in US consumer spending (retail sales are currently $32bn higher than in Jan’20).
You give us free money,,,we spend it.
The rally off the Mar’20 lows (Exhibit 9) has surpassed all of the 4 greatest rallies off the lows of the past century (1929,1938, 1974, and 2009).
UHHH, what about gravity?

• The bottom line: the Fed, which set off to "fight" inequality has failed tremendously because as even BofA admits, "the pandemic worsened inequality in 2020" - value of financial assets (Wall St) relative to economy (Main St) hit all-time high of 6.3x (Exhibit 12).
• This won't improve without a revolution, as the coming years will be marked by bigger government, dollar debasement, policy flip from monetary & QE to fiscal & MMT, all in an attempt to increase price of labor relative to capital yet which will achieve just the opposite;

https://www.zerohedge.com/markets/20...tunning-charts


More numbers here;
http://themostimportantnews.com/20-n...zy-to-believe/
"approximately 12 million U.S. renters are now “at least $5,850 behind in rent and utilities payments”. Landlords all over the nation are in financial distress because of unpaid rent,"

[Danny B]

The three players
"REPLY: The central banks are not the INSTIGATOR of the digital currency. The benefactor is the government through taxation. The central bankers do not gain from that. Then you have the investment bankers who have been wildly trading and when they blow up they run to the government for bailouts. There are three groups here."
"By moving to a digital currency it is the politicians who benefit for they see this as eliminating the underground economy. They are also in bed with BigTech which they are allowing to compete with the main banks. Part of Agenda 2030 is “You will Own nothing, and You’ll Be Happy!” is not for your benefit. They want to eliminate all your debts, mortgages student loans etc., which then wipes out the bankers. But it also allows them to default on government debt. Once that takes place, they no longer need the investment bankers to sell their debt. Hence, they are throwing the investment bankers to the wolves.
It is vital to step back and look at all three players in the game for all their interests are not the same."
ARMSTRONG
It seem that, when I leave a link to him, everything disappears.
Day by day, it becomes more obvious that the State is digging deeper and deeper into the private sector to steal support.

Marxist RINO McConnell Crushes Hopes For $2,000 Covid Relief And Stimulus Checks
SO, why did he do that?
Armstrong writes that big tech is trying to absolutely destroy small business,,, the main competitor of big tech.
https://www.armstrongeconomics.com/w...iness-in-2021/
Keep in mind that 2020 was bad. 2021 is expected to demand FAR more liquidity creation. Here is what 2020 looks like.
https://www.zerohedge.com/markets/20...tunning-charts

The top 10%’s bubble is about to burst – Charles Hugh Smith
If Smith is correct, it wouldn't be surprising. $1.2 trillion a month liquidity injections a month can't go on much longer. When the 10% go bust, you will see a cessation of the trickle-down effect that they claim does not exist.
2020: the year the tree of liberty was torched – John Whitehead, Rutherford Institute
ALL done to finance the bloated State.
12/31 “The real danger comes from massive state dependence” – part II – CG
Frederich Hegel would be proud to see 1/2 the nation dependent on government money. He wouldn't be too happy to see that the State had squeezed out productive enterprise to the point where the State was bankrupt. That wasn't part of his plan.
China is rushing to a digital yuan because they are equally bankrupt.
Many States are counting on digital money to further fleece the last few productive people.
BUT, for every additional $1 in taxes, the economy is reduced by $3.

SOMEBODY, somewhere has to pay. The State may go to digital money to avoid insolvency. Since productivity is diminishing,,,, and, the money supply is increasing, we can expect price inflation to pay us a visit.

[Danny B]

"A democracy is always temporary in nature; it simply cannot exist as a permanent form of government. A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury."


The philosopher Plato discusses five types of regimes (Republic, Book VIII; Greek: πέντε πολιτεῖαι). They are Aristocracy, Timocracy, Oligarchy, Democracy, and Tyranny.
These five regimes progressively degenerate starting with Aristocracy at the top and Tyranny at the bottom.
How the Plutocrats Turned Our Republic into an Oligarchy

Multivariate analysis indicates that economic elites and organised groups representing business interests have substantial independent impacts on US government policy, while average citizens and mass-based interest groups have little or no independent influence.


In English: the wealthy few move policy, while the average American has little power.



When a majority of citizens disagrees with economic elites and/or with organised interests, they generally lose. Moreover, because of the strong status quo bias built into the US political system, even when fairly large majorities of Americans favour policy change, they generally do not get it.



https://www.bbc.com/news/blogs-echochambers-27074746


The founding fathers knew well the pitfalls of the various types of government. They chose a democratic republic to try to balance out the pressures, both from above and below.
They created a tripartite government to get this balance.
They made the supreme court the final arbiter. They were quite worried that it would always "find" for more centralized power.
To cut down on the possibility of imperial over reach of the federal government, they forbade any direct taxes.


Passed by Congress July 2, 1909. Ratified February 3, 1913. The 16th Amendment changed a portion of Article I, Section 9
The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.



On January 10, 2008, the Federal District Court in Chicago issued a permanent injunction against Bill Benson on the grounds that by offering information demonstrating that the 16th Amendment was not legally ratified, he was promoting an abusive tax shelter. The Court then refused to look at the government-certified documentary evidence, deciding instead that the facts necessary to prove his statements true were "irrelevant."

After an extensive year-long nationwide research project, William J. Benson discovered that the 16th Amendment was not ratified by the requisite three-fourths of the states and that nevertheless Secretary of State Philander Knox had fraudulently declared ratification.

After traveling to the capitols of the New England states and reviewing the journals of the state legislative bodies, he saw that many states had not ratified. He continued his research at the National Archives in Washington, D.C.; it was here that Bill found his Golden Key. This damning piece of evidence is a sixteen-page memorandum from the Solicitor of the Department of State, among whose duties is the provision of legal opinions for the Secretary of State. In this memorandum, the Solicitor lists the many errors he found in the ratification process.
These four states are among the thirty-eight from which Philander Knox claimed ratification:

• California: The legislature never recorded any vote on any proposal to adopt the amendment proposed by Congress.
• Kentucky: The Senate voted on the resolution, but rejected it by a vote of nine in favor and twenty-two opposed.
• Minnesota: The State sent nothing to the Secretary of State in Washington.
• Oklahoma: The Senate amended the language of the 16th Amendment to have a precisely opposite meaning.

"When his project was finished at the end of 1984, Bill had visited the capitol of every state from 1913 and knew that not a single one had actually and legally ratified the proposal to amend the U.S. Constitution. Thirty-three states engaged in the unauthorized activity of altering the language of an amendment proposed by Congress, a power that the states do not possess.Since thirty-six states were needed for ratification, the failure of thirteen to ratify was fatal to the Amendment."



So, here we are. FED GOV has grown into a monstrosity. The productive people can no longer support it. 51% of Americans receive a check from the State so, THEY support ever-more centralization of government. Wall Street gets $trillions from the State also. They are in favor of continued liquidity injections.


The only way that these millions of non-producers can be financed is by printing money for them. Previously, they had been partially supported by bond sale and tax collections. The FED is buying almost all the bond issuance and, tax revenue is way down.
Over time, the continuous creation of new money dilutes the value of the existing stock of money.
A $20 gold coin is now worth $1894. We pay the "inflation tax"
22% of the entire U.S. money supply was created in the last year.

The demands of Wall Street and, the legions of non-producers grow ever-greater.



There has been about $22 trillion of new liquidity created in 2020. Obviously, this money isn't

going to you & me. It is going to Wall Street, and others. The latest funding bill gives $500 million to israel.


Currently, there is a big push to make America communist. Previously, America was the biggest success story in the world. All communist regimes fail.

Over the centuries, there have been many "thinkers" who proclaim that communism is the best system.
Everybody works for the State. Everybody is supported by the State.
Frederich Hegel was one of these people.
"Georg William Friedrich Hegel was a German theologian and philosopher who formed a theory of history to help dispute the American principles for individual freedom based in natural law."
This article is an excellent read.
https://rense.com/general77/sele.htm


Americans work 105 days a year to pay all their taxes. The French work 206 days.
Once again, the State is taxing people to death and, asking for a revolution. ALL fiat currencies eventually die. We have been working harder and harder to pay both the visible taxes AND, the inflation tax. FED GOV has been creating about $1.2 trillion a month to keep everything going.
It remains to be seen just how long this can go on.
The STATE wants digital currency so that it can bump up confiscation and the inflation tax into high gear.

[BroMikey]

Big money industry in real time. Covered up by police, judges, governors, Mayors................

a3d5f9e258866cb61f33593714863d83212eb3016af7bdbf0ba19a2c5097c34d.png

[Danny B]

In 1985, Armstrong's program predicted a huge change in the confidence model..... 30 years into the future. He predicted the date 2015.75
Well, it happened just as the program predicted. He also predicted a collapse of sovereign debt.
These predictions did not go unnoticed.
FED GOV worked on their own predictions.

"In 2009, within a top-secret weapons laboratory outside of Washington D.C., the Pentagon conducted its first ever “financial war game” pitting the U.S. against its major economic competitors. Along with Pentagon officials, this economic simulation of using financial instruments in a global game of chess also involved members of the intelligence community, Treasury department, Federal Reserve, Wall Street, and various think tanks."

"One of its planners and participants, Jim Rickards, author of the must-read book Currency Wars, tells listeners in an interview with Financial Sense Newhour that the hypothetical simulation is actually playing out in real life…and not in a way that’s good for the U.S. or the international monetary system."

'If Russia and China decide to issue a new gold-backed currency, what does this mean for the fate of the dollar?
On this point, the future isn’t so clear, but Rickards thinks it’ll actually be the collapse of the international monetary system in general, with the U.S. dollar leading the charge, whereby a new global currency is eventually created."

Yep, the gold bugs are obsessed with gold. That train left a long time ago. NO currency can be gold backed when competing currencies are allowed to do competitive devaluations. The Bretton Woods agreement prevented Western nations from doing competitive devaluations.
America was the linchpin of the Bretton Woods agreement. The warfare-welfare State did NOT like the limitations imposed on them. THEY needed an elastic currency to initiate wars and welfare. The first to get rich,,, the second to buy votes. Their inflationist policies guaranteed the destruction of Bretton Woods. The super elastic dollar was used to initiate regulatory capture also.
Robbing the middle class has run it's course. Printing is the only glue that is holding things together.
21% of all U.S. dollars were printed in 2020

Rickards'
"“Remember,” he explains, “all the central banks are printing enormous amounts of money so the dollar won’t collapse in isolation. If the dollar goes, it’ll take all the paper currencies and the whole international monetary system with it. So, I do expect some sort of collapse of the international monetary system; and when I say that, it’s not meant to be a provocative statement. The international monetary system actually has collapsed three times in the past 100 years: 1914, 1939, and 1971. So these things do happen from time to time and when they happen, it’s not the end of the world—it doesn’t mean we’re all living in caves eating can goods. What it means is that all the major economic powers get together and rewrite the rules of the game—they come up with a new system.”

The Bretton Woods agreement was between Western States. It wasn't worldwide. Most of the East will NOT sign up for a Western incepted world currency. America will not sign up for a digital Yuan. China will not sign up for the SDR. WE are encircling Russia with bases and weapons. THEY have all the oil. Do you expect them to cooperate with a Western currency regime?

Rickards;
"It appears the endgame Rickards envisions may just be an inevitable consequence of every nation reacting to one another in a predictable manner. Again, the financial war game conducted years back wasn’t part of a conspiracy—it was a simulation where each nation simply ‘gamed’ the financial landscape to their advantage until the system broke down and, as Rickards says, had to “rewrite the rules of the game” all over."
https://www.financialsense.com/contr...ncial-war-game

YEP, a new system. To prepare for this, everybody is building hypersonic weapons and, orbiting weapons platforms.
Atomic torpedoes that can cause a huge tsunami on any coastal city. Directed energy weapons and weather weapons.

[Danny B]

Charles Hugh Smith has a lot to say but, like most people, he just doesn't factor in AUTOMATION.
"From the point of view of evolution, the most hopeful scenario for 2021 is the sudden and complete collapse of everything that is obsolete, inefficient, ineffective and sclerotic. When obsolete systems and entities pass away quickly, the cost and pain are processed and absorbed quickly as well: enterprises go bankrupt and their assets are liquidated, failed ventures close, and schemes that didn't yield the desired benefits are scrapped.
This is the evolutionary process. Whatever has lost its selective advantages will succumb to selective pressures and fade away."

Oil is sold at a loss and energy is the master resource.
The State is a bastion of inefficiency and, employs many millions. Armstrong said very clearly that Sovereign debt would collapse. The Club of Rome calls for the American population to be reduced by 100 million. Co-incidently, there are 100 million Americans who have no funds for retirement.

"The problem arises when self-serving insiders siphon resources to keep their obsolete, inefficient, ineffective and sclerotic gravy-train protected from selective pressures."
"Economically obsolete / terminal entities, on the other hand, always choose extraordinary monetary interventions to keep their gravy-train alive, even if they bleed the rest of the economy dry in the process."

YES, but 51% of Americans receive a check from GOV. Reportedly, welfare for the rich costs $15 trillion. 10 times what welfare for the poor costs.

The problem here is that it's effortless and initially costless to conjure trillions of dollars out of thin air and use it to keep obsolete, inefficient, ineffective and sclerotic industries, sectors, agencies and schemes on life support. The eventual costs, consequences and risks are transferred to the entire economy, all to keep politically protected insiders and schemes well-funded even as their fundamental value proposition has collapsed.
This politically expedient "solution"--printing / borrowing trillions to stave off Natural Selection--is inevitably the first choice of corrupt, failed governments and central banks, and just as inevitably, this expedient "fix" eventually brings the entire economy to its knees."

Natural selection is much less messy when it prevents conception and, increases infant mortality.
In business & government, it is a different story. These 2 enterprises are started with a good idea. They eventually grow out of all control.
The corporatocracy and the State are attacking the people to satisfy their unrelenting claims on wealth.

"Recall that risk cannot be made to vanish, it can only be transferred to others. By printing / borrowing trillions of dollars to prop up doomed zombies, the state and central bank (the Federal Reserve) have transferred the soaring risks of their mismanagement to the entire economy and society.
This politically expedient "solution"--saving the most inefficient and costly sectors because of the political power of insiders-- is always the first choice of weak and/or corrupt leadership, for whom this is isn't just the first choice, it's the only choice."

North Korea just reported that it's economy is crashing badly. Last time that this happened, hundreds of thousands of people died of starvation.

"The unfortunate many simply decay and collapse. Thus the most hopeful scenario for 2021 is that the obsolete, inefficient, ineffective and sclerotic sectors and agencies, no matter how sacrosanct, collapse or downsize quickly. This drastically reduces the cost and pain to levels that the economy as a whole can absorb.
The worst-case scenario is our weak and/or corrupt government and central bank keep all the doomed zombies on life support, a process that bleeds the economy of adaptability, flexibility, innovation and resilience."

FED GOV spends 24% (old number) of the GDP. 44 million (old number) receive direct assistance. 22 million work for the State."Decay & collapse" would mean many millions dying in the street.
https://www.oftwominds.com/blogdec20...eful12-20.html

Armstrong writes about revolution once 40% of people turn against the State.
https://www.armstrongeconomics.com/qa/is-there-hope/

[BroMikey]

Cars came at 3:30am to line up open at 8am to 12 noon not everyone one will get food in time.

[BroMikey]

[BroMikey]