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President-Elect Zio's avatar

That is absolutely correct. The central bank is the real government and the state (the alleged government) is the management that a) creates debt and b) organizes that the taxpayer pays back the debt plus the interest. Never completely, but all the time. And not only constantly, but more and more. Even in a healthy economy, at the beginning and in the middle of the interest cycle, somewhere in the system more and more debt has to be taken on to create new "money" and to keep the system running. That's what businesses and consumers do then. But toward the end of the cycle (now), more and more businesses and consumers default as borrowers and the government has to take on even more debt than before. Because a) the other two parties are doing it less and b) because the base is constantly increasing in this exponential scenario.

The big companies are now fully loaded with cash. They can and therefore will survive. The small companies end up going bust with rising interest rates, more expensive production, higher labor costs and falling demand. The big ones can take over even more market share. That's why it's perfectly logical for their stock prices to rise, especially as they buy back their own shares. So the weak economy mainly affects the small and medium-sized companies that are not listed on the stock exchange. A weak economy and rising stock market prices therefore go together very well.

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Bryan Cecilio's avatar

I’m ready. Crypto, physical silver, and short/long treasuries along with brokered CDs. Let it rip!

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