Visible Signs of a Cracking Debt Hyperbubble.
From Greg M
Visible Signs of a Cracking Debt Hyperbubble.
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By Gregory Mannarino TradersChoice.net
Consumer debt, household debt, and personal debt are skyrocketing. The average person here in the US and around the world is dangerously overleveraged, and yet, they continue to borrow even more. Credit card debt is exploding as people are struggling just to make ends meet with no end in sight. Loan defaults across the board are picking up, and according to TransUnion, loan defaults will continue to accelerate. Today 63% of US households are currently living paycheck to paycheck with ZERO savings and yet, they continue to borrow even more.
Banks are in trouble? No, YOU are!
NO DEPOSITS, NO LOANS, AND NO DEALS. Bank liquidity is literally drying up as the savings rate is now in the negative. New viable loans, that is loans which will be paid back, are few and far between as former members of the middle class are defaulting on their debt at an accelerated pace. Meanwhile, the rich and well off are now using cash to purchase big ticket items like real estate and automobiles as interest rates rise. The current environment for the banks is not good, and that should scare you. Why? Because these institutions will not be allowed to fail, and bail-ins/bailouts will again at some point in the future become a reality.
Inflation Continues to Rise.
Despite the current actions of the Federal Reserve, Swiss National Bank, European Central Bank, and the Bank of England, all of which just raised rates fifty basis points, inflation continues to rise. Therefore, the currencies which they lend to the world (the bills in your pockets/bank accounts are not yours. They are owned by the issuing central bank, and owed back to the issuing central bank, plus interest which they create out of thin air), continues to lose more of its purchasing power.
Ever Expanding Money Supply.
The fact is this: without the continual expansion of the global money supply the entire financial system would lock up. Every central bank issued note, in whatever form it exists, represents a unit of debt which must be paid back to the issuing central bank plus interest created from nothing. The overall effect of an expanding money supply is inflation meanwhile, central banks via the mainstream propaganda ministries, continue to sell the lie that by raising rates at some time in the future inflation will drop.
The Silence is Deafening.
If any central bank actually wanted to stop/control inflation, all it would have to do is contract the money supply by requiring financial institutions to increase their capital reserves. To date, not a single mainstream financial channel has uttered a word on this, nor a single politician, nor a central banker- and you won’t hear anything EVER on contracting the money supply. Why? The goal of every central bank is to continue to inflate. A central banks ability to issue debt IS THEIR SINGLE SOURCE OF POWER! Which also means its their Achilles Heel.
Bring Down the Central Banks.
You want to end central banking? Its easy. Prevent them from issuing ONE SINGLE DOLLAR of more debt. The nanosecond a central bank is stopped from issuing more debt, as the currency itself is debt, the entire central banking system ends, and we win.
What if we all just collectively walked away as a humanity from THEIR system and refused to pay or spend any of their FIAT paper ? Stop feeding the beast it will starve itself out . But that would require mass awareness of whats really going on and with football , celebrities , puppet presidents that are not alive and ones who sell digital trading cards of themselves keep the masses distracted and divided just enough to never wake up.
There are too many people who can’t pay their debts let alone pit money in the bank. Like Gregg said if banks don’t get funds they will go under so the Fed keeps printing for them and others.
It’s a one way street to collapse. Find a place to shelter and survive until things hopefully normalize. Some in the streets are killing others without cause so watch out when they have their meals cut or taken away. I rest my hope in the Lord Jesus Christ and pray that he will rescue his people soon. Their is way too much sin in the world, a world of sodom and Gomorrah.