The Federal Reserve has pulled the plug on the US and Global Debt Bubble - Global Planned Financial Tsunami Has Just Begun

Boo hoo, no more federal agencies destroying the Constitution in the name of our safety. I hope ever fucking corporation goes tits up along with the feds.

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serve_bank.pdf

Every one in awhile, someone gets it right.

Most of you here are buying into the “hyper inflation” argument. You’re been duped. There is no hyper inflation. There’s not even inflation. The money supply is shrinking not growing, and anyone who understood economics and how money is created should know this.

Oh yeah, food prices and gas prices are going up. That’s because pipelines are being shut off, Russia is being sanctioned (well, actually the West is really just sanctioning itself because this isn’t affecting Russia) and our food supply is under direct and constant attack. But NONE of these things have anything to do with inflation, which literally means inflation in the monetary supply.

Nope, quite the opposite, the debt bubble is BURSTING. That’s right boys and girls, the Western consumer is tapped out and cannot borrow anymore. No borrowing = new money can’t be created = end game.

The big Ponzi scheme called Bretton Woods that started in 1945 is coming to an end. They don’t call it the Great Reset for nothing. They could have called it the Little Reset but they didn’t.

We are going into massive deflation now, the likes of which will make the Great Depression look like child’s play. It’s the great unwinding.

And if you’re wondering why they’re attacking our food supply and shutting off oil, it has nothing to do with climate change. Obviously. It’s about trying to fight deflation. If you don’t believe me then Google on the Agricultural Adjustment Act of 1933. They’re using the same playbook to fight deflation that they used during the Great Depression, when they literally burned food factories and dumped food into the ocean while people starved.

Didn’t work then and won’t work now. The only way out is world war followed by a new financial system. And they’ve got one ready. Hint: you’re going to hate it.

The fed truly doesn't have much control over rates. They're chasing rates with the fed funds rate, not the other way around. All the fed can do is very temporarily raise or lower the overnight rate by purchasing assets from banks or slowing or halting those purchases, thereby adding or reducing the amount of bank reserves.

Bank reserves are just like the bank in the game Monopoly. The quantity of reserves in the system is pretty much meaningless. And just like monopoly, if they run out of reserves but there's demand for them, they can always print more.

Bank reserves aren't the same as like say the money in your savings account. The only way it can get out into the economy is if someone borrows it. Banks are simply required by law to have certain amounts of reserves and assets, so they have this thing called the overnight market where all the banks pay each other tiny little fees to use each other's excess reserves on an as needed basis. One bank has too many assets, another has too many reserves, so they swap them overnight so they're not in violation of banking rules.

It's really pretty meaningless to the broader economy. The fed increasing or decreasing the amount of reserves doesn't really do anything.

The only money printing that goes on is when people take out loans, whether it be consumers, corporations, or the government. Everything we're seeing is just the natural cycle that was set in motion back in 1913. These violent deflationary and inflationary swings are just the result of natural price discovery cycles getting more and more violent as liquidity is continuously drained from the economy, necessitating ever higher debt levels at ever lower interest rates. It's gonna break one of these days, but all the fed really does is try to hold it together as long as they can.

Gotta love these "It has begun" threads that go on to state the obvious about events that have been going on for a long time.

It's like children learning about swear words for the first time.

I think they did away with the law about having required reserves under Trump. Something about one last thrust in our asses before it all goes up in flames.

Yup, pretty much. The money supply did grow a bit over the last few years due to borrowing, but now it's shrinking again. And of course it was nowhere near hyperinflation, or even verging on it.

There is of course a point where QE becomes hyperinflationary, so we'll likely see that someday. Maybe someday soon. When the QE becomes tantamount to bailouts I think is when it will turn inflationary. They've been careful to protect debt classes that have no underlying asset value, namely student loans, so up to this point QE has been a net deflationary thing because it gets paid back so to speak. When they start buying up asset classes though that won't get paid back ever, that's when you see QE turn into actual money printing. That would include depreciating assets like car loans. I.e. if someone defaults on the car loan and you get the car, it's not much better than student loans, because the value of the underlying asset will be zero when the debt matures. We saw the fed venture into junk corporate bonds this time around, so I don't think it's going to be long before they start buying car loans and student debt.

Laugh about '2 weeks' all you want but within the next 2 weeks a lot of people will be at the end of their pay period and finding out that their ends didn't meet. For a lot of people living paycheck to paycheck it will be gas or food.

Paycheck to paycheck is a good percentage of Americans.

Add to that anyone on govt assistance....

Just 2 more weeks...

There's still a reserve requirement. That's the entire point of the overnight market. A quick google search says it's 10%. So if you put 100 dollars into your checking account, the bank has to match that to 10 dollars in their reserve account at the fed.

Shit is about to get real…

https://imgur.com/08iQLRX

Who would exchange metals for idiot thieves air that didn't exist?

I gave up on whites with ecoin and how delighted they were to swindle. That stupid and that donkey...if the army will take the stinkers on pity maybe theyll eat. Not from me.

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In theory yes but in practice not just no but HELL NO.

What you’re describing is growth in the money supply. Central banks loan money at the Fed rate to banks. They in turn lend it to consumers and businesses, loaning out 10 dollars for every dollar in deposits, thus creating money out of thin air.

The problem though is that no one is borrowing money. Everyone’s credit is tapped out. They lowered and lowered interest rates, they inflated asset prices, but eventually, even af 0% interest, no one was borrowing. THAT is the end game, and that’s why the debt bubble is bursting.

Once that happens, central banks can start to buy treasuries, buy assets, but it becomes a game of diminishing returns. It’s game over. Once the monetary supply cannot expand anymore, it starts to contract. And if you thought inflation was bad, deflation is 100x more insidious.

You see, with inflation you just raise interest rates and suck money out of the system. Oh yeah it wreaks havoc on the economy? As Volker did in the 70s, but it eventually works. But deflation? That’s a much more difficult problem. In fact, it has no solution. Deflation is always the end game and, just like in the 30s, it results in war first then a complete reboot of the financial system thereafter.

With deflation, all asset classes drop in value. No one buys anything because they know it’ll be even cheaper tomorrow. Assets drop in value too so housing, crypto, stock market, everything.

That’s why you see the globalists attacking oil and food. Look up the Agricultural Adjustment Act of 1933. The way they fought deflation was to destroy food and supply chains in order to prop up prices.

From Wikipedia: The juxtaposition of huge agricultural surpluses and the many deaths due to insufficient food shocked many, as well as some of the administrative decisions that happened under the Agricultural Adjustment Act.

They literally destroyed food while people starved to try to keep prices for continuously falling. Sound familiar? Wondering why food factories are magically catching on fire and chickens culled due to “bird flu”?

The globalists have a plan and it’s the Great Reset, digital IDs and central bank cryptos. It’s not quite ready yet so they’re doing everything that they can to hold the existing system together. But she won’t hold together much longer, Kirk.

Dragonflies and sharks don't have to live under biden.they can do as they please.why should humans pay for food and home and fresh air if all other creatures get it.we must be the dumbest of all creatures

Yeah and the sodomite CONgress denied 43 billion for restaurants and small businesses from the RONA

There's a breaking point very soon from the public and THEY want the guns before they're all hunted for what they've done...

They'll never get them.

Bottom line is this:

Those who are saying we wont have high inflation (or even hyperflation), but instead will have deflation...dont get it.

Deflation will not be allowed by banks if it rears its head; the counter being immediate injection (if not over-injection) of money into the system. The massive coordinated QE over the past decades at points of fiscal crises has been shown to have increasingly less 'grunt' each time (i.e. must print/inject exponentially more each successive time to get the same - or even less - results).

Thus, even if deflation comes, the immediate response will be massive QE, and, ultimately, massive inflation (and weaker purchasing power).

It should have happened in 2008 when the credit markets seized but they kicked the can another 14 years!

Good thing is that these things always take longer to play out in real time than we expect.

Spend that money now while u still can

If only it were that easy then there would never have been a Great Depression. You reach a point of diminishing returns. They lowered interest rates again and again until 0%. Then they started buying assets and QE. But eventually the system doesn’t work if people and businesses aren’t borrowing.

People don’t understand that inflation is a feature not a bug. Ever since Bretton Woods was conceived, the idea was constant inflation which translates into GDP growth and economic expansion.

But the gig is up. They can’t inflate anymore. Look at the M1 and M2, we are contracting not inflating. All price increases are a result of the attack on petroleum and food. If it wasn’t for that, the deflation would be much more obvious.

But it’s inevitable. The credit bubble has burst. It’s game over. The Great Reset cometh.

You don’t have to believe me - within 6 months it will become self evident as the price of everything craters.

Does this look like inflation to you?

https://imgur.com/a/ekiXwfI

Again, stop believing the BS that they’re feeding you. Wake the F up! You didn’t believe it about COVID, the “vaccines” or 9/11, so why are you swallowing it hookline and sinker now?

They’re shouting from the rooftops about Inflation when they opposite is true. Like all of their other lies, the truth is hidden in plain site. When you start to understand that the monetary supply is actually shrinking and when you see that they’re using the same playbook as the 1930s, literally everything happening in the world starts to make sense.

“History doesn’t repeat but it often rhymes” -Mark Twaine

Yea I pretty much agree with most of that. The only solution to deflation is more debt. When the economy goes into gridlock they do whatever they have to in order to buy enough time to increase debt however they can. 2008 and 2020 were just hiccups, foreshadowing what's coming. One day they won't be able to stop it.

The part where I disagree with you is that when central banks buy assets in exchange for reserves, all that's doing is turning one form of money into another. It actually sucks liquidity out of the system. It's kind of like if you have an annuity and you sell it to JG Wentworth. JG Wentworth didn't create any new money, you just forfeited future money to have now money. Which is what the banks do when they sell bonds to the fed.

BUT, that all changes when the fed expands its asset classes to include debt instruments that aren't asset backed, or are backed by depreciating assets. They're only supposed to be able to buy treasuries because those are a form of money, but if I were a betting man I would bet big that they'll be buying up student loans and car loans and everything else before it's all over. I think that could happen as soon as next deflation cycle, which seems to be starting now.

You might be looking at it from a very US-centric view. The global system though is far more complex: entwined, but not absolute. The world is not ready for a singular, over-arching new system as currently there's too many competing interests.

In any case, gold will still be a safe bet. Every instance of deflation historically has shown that during deflation, its purchasing power increases.

If a new system is implemented, but at the cost of people's life savings, livelihoods, and destruction of decades of labor/capital, then the backlash and revolt will be stupendous. So much so that only the imposition of a fairer system will be allowed, to mitigate the potential bloodshed (at both ends of the power/class structure) and chaos.

It’ll be chaotic for sure, and there will be many more losers than winners.

I’m no prophet but my educated guess on the timeline is something like this:

1. Massive deflation in all asset classes, temporarily masked by increases in food and energy costs

2. Eventually through demand destruction even sanctions and pipeline shutdowns cannot stop the deflation and oil joins the party in collapse

3. Massive destabilization of the macroeconomy, which historically has led to world war and the fall of governments. These are times when radical ideas become mainstream (Marxism, Fascism, etc)

4. As the world burns, people beg their leaders for rescue. That rescue comes in the form of digital IDs for everyone (to protect them, of course) and central bank cryptos tied to said digital IDs

5. The dust settles after the wars; everyone has a digital ID. If you refuse then you cannot conduct commerce, travel, etc

Important to note here: this new financial paradigm won’t look anything like the current one. As I wrote, in the current paradigm, inflation is a feature not a bug. Economic growth is at all costs, so that means population growth and constnstlt building.

If you look at the WEF web site, they call the new paradigm “Stakeholder Capitalism”. With AI and a rapid push toward quantum computing, inflation isn’t necessary anymore. In the new paradigm they will use CBCCs to control people and you will own nothing and “be happy”.

They mean the “you will own nothing” part; you will need permission to do anything. You’ll have a social credit score and even traveling to your friend’s house will require you to ask for a car and you better have been a good boy otherwise you aren’t going anywhere.

The new financial paradigm will be a technocracy where the concept of money is tied directly to your own actions and even thoughts. None of this is science fiction, it’s where things are headed if we don’t stop them. And frankly they pretty much already have us in checkmate.

People still believe the government is trying to protect us from terrorists? You realize the governments are the terrorists? Right???????

It’s not a planned collapse. It’s a controlled collapse.

Shaun, won't the CBDC be inflationary if they bring that in? They really will be printing money with that thing.

God knows how all of it will fit together, that's why they complicate finance I think, so the plebs can never work out what is going on.

No, it won’t be inflationary because it won’t be new money. When the time comes, they will force everyone to use it as a means of commerce. Paper currency will be gone and what you have in the bank will be converted into CBCCs.

I’ve read the white papers and they are intentionally vague about how the conversion will work. The speculation is that all your digital dollars (speaking specifically about the US now), meaning for example money they you have in the bank, would be converted into CBCCs in a one-time transaction.

For paper money, you would have a time period where you can bring it in and exchange it for CBCCs. If you wait, it will have less and less value until the point where they won’t do the exchange anymore and your paper money is a useless relic. Of course, if you have large amounts of paper currency then they’ll ask for supporting evidence of where you derived it.

But CBCCs will be promoted as the savior to escape the Second Great Depression. Want to know how? Glad that you asked.

Don’t fall into the trap of thinking that a CBCC is just another currency. Remember this is a complete financial reset. The rules of the game will be different.

For one, they’ll be tied to your digital ID and thus there will be rewards (and penalties) based on your behavior. So for example if you don’t get vaccinated, they could deduct from your account.

But most importantly, and this is emphasized in the white papers, CBCCs can be used to force you to spend them or to use them in certain ways.

For example, they can limit your allotment of currency that can be used on meat-based products. Once you’ve consumed your limit of meat for the month, your CBCCs wouldn’t work to buy any more.

But here’s the “save the world” part; deflation is the result of people not spending money. Because the price of everything is constantly dropping, people wait until the next day and the next day to buy things because they know that every day it gets cheaper. This is the deflation trap.

But CBCCs can be time boxed. In other words, here is your paycheck, you made 10,000 digital dollars this month. Of that money, 8,000 must be spent within 30 days or you lose it. Boom, deflation problem solved…. at the cost of your liberty (and maybe even your soul)…

Last Edited by Shaun Kaven on 06/23/2022 05:03 AM