FED is just playing catch up to imploding short term Bond yields...Soon there will be nowhere for yields to go except up...The lower yields (profit) go the greater the volume needed to obtain the required profit.
Last recession yields collapsed to 1% before enough volume was found...this time around they will have to drop below zero...lets say rates collapse from 10% to 5% before enough volume is found...that's double the volume.
A drop of rates from 1% to 0.5% is the same...and you need double the volume...
Prior to the 2001 recession the US household debt to income ratio was 80%.
this time around it's 120%-130%...
Past 100% consumers are forced to request the commercial banking system to manufacture less and less new money...while before 100% they are forced to request the commercial banks to manufacture more and more.
In 1944 the ratio was below 50%
In the early 1970's it was around 55%
by the 1980's it was 70%
I'm very sorry to again have to inform you all of this again...but the hyperinflation of the past 64 years is basically as good as it gets...
Deflation (Inflation less than previous inflation) follows Inflation (Inflation greater than previous inflation)
You all are basically watching the end of civilization as you comprehend it...right now.
Yes of course it's just a recession.
Stage 1 is...Inflation of debt and the destruction of savings.
Stage 2 is...Deflation of debt and the destruction of equity.
Stage 3 is...Bankruptcy of the banks, collapse of the division of labor/economy, and the consolidation of power.
The entering of stage 2 from one has been called a recession (at least that's what the authorities call it)...But who wants to die?
So you all fight for your lives to escape death...
That's what you all have been doing over and over again and of course you all will attempt to escape again...Unfortunately you have been doing it by requesting more and more money to be manufactured at lower and lower rates for the past 25 years...
That is basically at an end...and you all currently have no idea that you will not escape this time...
Sure rates are collapsing in search of volume like all the previous times...but this time around the required amount of volume is not going to be found...
When the 64 year old hyperinflationary bubble that has been getting bigger and bigger during your entire lifetime on planet Earth reaches maximum potential and finally pops...The entire global civilization that you see every day and take for granted will implode to oblivion...
From 1944 to 2000 or 56 years...US consumers requested the commercial banks to manufacture 25 Trillion dollars of new money...from 2000 to now or 8 years US consumers requested the commercial banks to manufacture 25 Trillion dollars of more new money...for 50 Trillion total.
The next 25 Trillion needs to be requested by consumers in the next 4 years...then 2 then 1 then half a year...then 3 months then 45 days then 22 days then 11 days then 6 days then 3 days then 1 day then 6 hours then 3 hours then 1 hour then 30 minutes then 15 mins then 7 mins then 3 mins then 1 minute...then 30 seconds then...15 seconds...then 7 seconds then 3 secs...1 sec...half a second...etc...forever...
Like try Game over...and that's If US consumers can continue...They max out and either refuse to or can't request the required amount of new money to be manufactured then the whole mess will reverse...
"What I point out is that we're in a turning phase, and that the extraordinary improvements that have occurred in the world economy in the last 15 years are transitory, and they're about to change ... So, I think this whole process will begin to reverse."
Sir Alan Greenspan K.B.E. (Knight Commander of the Order of the British Empire) Dec. 27, 2007, in an interview with National Public Radio.
Longer than 15 years but once we get deeper into it...no one will remember or care.
Imagine snapping your fingers and all circulating money dried up and all the contracts were unserviceable and all the bills became unpayable.
That's what is coming.
if all the bills become "unpayable" then it is obviously time to declare a Jubilee. All debt is cancelled everything resets. you own what you possess, nobody owes you anything, period. You are on your own, period.
ReplyDeleteIt is a blessing not a curse, but the learning curve is going to be very steep, you will nedd help from simple, loving people who can pull together <=== the reason it may seem like a curse right now...