Are You Ready? Central Banks Will Vastly Inflate from Here.
By Gregory Mannarino TradersChoice.net
Being that not a single developed nation on Earth is going to implement any real cuts to spending, you can count on one thing happening, much higher global debt.
But what’s really going on here?
Let’s start with this.
Every single word leader knows that he or she must absolutely increase spending/find ways to upsurge spending just to allow the system to function. Which is something not one of them will ever admit to a willfully ignorant public. Oh yes, they all promise to spend less, but that never happens as it is impossible. As an example of this, just look at the last three US Presidents, each one has had to spend more than his predecessor. The truth is this. Just to function at its current level, the debt must be inflated exponentially- and it cannot ever stop. Every President, every world leader knows this.
Currently, every single developed nation on Earth is expected to vastly INCREASE spending moving forward. And with that, global debt will continue to spiral ever higher with no end.
Where does the cash come from which allows a nation to continue to function, day to day, in a perpetual ever increasing debt vacuum? The answer is A CENTRAL BANK. Any given central banks power resides in ONLY one thing: Its ability to inflate.
So, you want to end central banking? End The Fed? It’s simple to do really. Just prevent them from issuing a single dollar of more debt. The moment that ANY central bank is prevented from inflating, that is creating more debt, the central banking system starts to die.
Those dollars in your wallets and bank accounts. Those dollars that you get up every day and work for are IOU’s. No, you do not own them! The illusion is that those dollars you work for are yours. But in truth, you just work for the ability to borrow them from an issuing central bank. Not only do you not own the cash which you work for, you owe that cash back to the issuing central bank PLUS interest which they create out of thin air. It works the same way for every central bank.
If you were to look at every developed nation on Earth, each has a common factor- a central bank. Each of these central banks IS a sovereign entity. Being a sovereign entity, central banks have no higher authority. Former Federal Reserve chairman Alan Greenspan put it this way: “No Government Authority Can Over-Rule ANY Decision We Make.”
The “big secret” is this: Ever inflating debt is in fact the only way which the current system can function. The current central bank created debt-based system demands that ever-increasing amounts of debt must continually be borrowed into existence. More debt MUST be added every single second of every single day 365 days a year, decade after decade in perpetuity.
What is the downside to central banks colluding with so-called world leaders? Firstly, central banks are the real government, as it is they who control the entire financial system.
The major downside of this hideous collusion between world leaders and central bankers is currency de-valuation-a loss of purchasing power. Today this is made even worse as central banks are cutting off credit by raising rates, effectively crushing small businesses to fulfill the corporate agenda.
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.
I’m ready. Crypto, physical silver, and short/long treasuries along with brokered CDs. Let it rip!