Through-out last year there was a certain amount of speculation that World War III is distinguished. When the general public thinks of warfare we conjure up images of horrible bloodshed as well as nuclear weapons being dropped. But, there’s a more insidious weapon that’s really poised to devastate economies all around the planet. What we understand is that the Trump Administration being ignorant about foreign affairs is poised to unleash a barrage of retaliation sort our trading partners from all over the world. These tariffs that he’s contemplating if implemented could be justification for harmful strikes on america very precarious financial system by China, Japan, Russia, the EU and OPEC countries together with a number of other countries.
This will unfold is these countries will start dropping off their U.S. debt holdings and by doing this will finish the dollar as the world’s reserve status. This is just on the surface. The actual danger is an inner warfare waged against the global market by the central banks. It’s the banks themselves which have through-out history intentionally created financial crises and collapses. That fiscal disaster for millions of Americans simply made the financial institutions that much richer when the US government and the Fed pumped trillions of new cash right back to people too large to fail banks. If the US dollar wasn’t the worlds reserve currency the panic of 2008 would have made the Great Depression look like a picnic.
Today, vast quantities of wealth can be moved in and out at the speed of light. The collapse of a single economy or economies does mot mean the destruction of banker riches. It’s the banks that see national economies as they say mere holding containers. How this works is that banks may pour their wealth that they can make from thin air, provided that the US dollar is the world’s reserve currency, into at least one of these containers or market. They can also circulate that prosperity within the container or market for a time and then pour out all their riches at a minute’s notice.
We must remind ourselves that a destruction of a national economy could be exploited as a means to some larger end. Normally this so called greater end means using the catastrophe to warrant increased centralization of power or the transfer of electricity from the general public to the hands of the men and women that are supporting the bankers. The liquidity crisis of 1914 just after the Federal Reserve was set leading into World War I. Let’s not overlook the hoarding of fiscal power by banks when the League of Nations was established. In 1920 the artificial bubble in several asset classes made by the Federal Reserve with very low rates of interest. That bubble burst when interest rates were increased which caused the Great Depression. The Depression in America coincided with other artificial economic disasters in Europe and Asia lead to the rise of fascism and World War II. When we realize what’s happened we find that in each economic calamity consolidates property and bureaucratic control to a oligarchy class. And, with every financial catastrophe brings about enormous debt dependency.
A disaster that will burst and trigger, a controlled demolition of our fiscal system. Remember gigantic debt dependency? What we have now are three ticking time bombs capable of causing enormous untold destruction. Consumer debt: Complete American household debt in the end of 2017 has reached past $13 trillion. The greatest in history. For the last five years consumer debt has risen. There hasn’t been any valid wealth creation or resurgence. There’s just been a higher dependence of the identical debt that helped create the 2008 fiscal crisis. When the Fed quietly raises interest rates all which does affects the many asset classes including home markets, mortgages etc, auto loans, credit cards and student loans. In effect when interest rates rise the other regions of the market come under pressure. The ordinary citizen with record debt levels are now face with a fiscal hardship.
With rising rates of interest and the quantity of corporate debt on the dining table we will most likely see another stock market crash. Today the S&P demonstrates that at least 40 percent of 13,000 businesses have debt to earnings ratio of 5 times. A level even higher than it was before the 2008 collapse. We must think about that corporations are exploiting low interest rates to borrow enormous amounts of money for the sole purpose of buying their own stocks. None of the money went to increase workers salaries. Stock buybacks are a legal form of market manipulation in which businesses by stocks back from the public which in turn reduces the amount of current stocks circulating in the marketplace which artificially increases the value of their stocks overall.
We must keep in mind that stock buybacks are the principal fuel for the longest bull market ever. But this bull market is so fake that the press have started to question its validity. Stock buybacks are completely determined by cheap debt.
The federal debt has been the topic of many a Presidential debates and it looms greater than ever. In the aftermath of a potential international trade war the question arises as to how long will it take before leading U.S. treasury bond holders such as China dump their holdings in retaliation? The lunacy of Trump in his refusal to recognize the seriousness of the continuing raising of the federal debt ceiling only concludes our national debt is only going to increase. The Federal Reserve was the biggest purchaser of U.S debt. But, since they’ve increased interest rates that the Fed will probably not step in if and when a trade war escalates into a treasury bond ditch.
We’d better recognize that all three contingencies of debt every one more profound annually are catalysts for an economic disaster that will occur if not addressed ASAP. The longer we stay in a perpetual state of denial by elected officials and don’t realize exactly how close we are to an economic Armageddon the earlier every American will pay a hefty price. A price we can’t afford. There’s a way to negate to chance of fiscal doom but ti takes our elected officials to recognize how close we are to falling into the financial abyss. We then need to implement the reforms which will negate the possibility of fiscal calamity by ushering in National Economic Reform’s Ten Articles Of Confederation.