The people must be helped to think naturally about Money. They must be told what it is, and what makes it Money, and what are the possible tricks of the present system which put nations and peoples under control of the few. – Henry Ford
With Federal Reserve independence, however, a body of men exist who control one of the most powerful levers moving the economy and who are responsible to no one. If the Federal Reserve pursues a policy which Congress or the President believes not to be in the public interest, there is nothing Congress can do to reverse the policy. Nor is there anything the people can do. Such bastions of unaccountable power are undemocratic. – Wright Patman – A Primer On Money
The economy of the United States and for most of the world will collapse because it is designed to do just that. The poison pills went into place with the creation of the Federal Reserve in 1913.
Before 1913, there had been an ongoing war in the United States. A war that ultimately cost the life of perhaps four Presidents and almost killed Andrew Jackson. This war was waged by the same people that undermined and destroyed Russia resulting in the murder of Tsar Nicholas Romanov and his family in 1918. The enemy won a significant victory in the United States with capture and control of the monetary system, the power of which was explicitly designated to Congress by the United States Constitution.
The real truth of the matter is, as you and I know, that a financial element in the larger centers has owned the Government ever since the days of Andrew Jackson — and I am not wholly excepting the Administration of W. W. The country is going through a repetition of Jackson's fight with the Bank of the United States — only on a far bigger and broader basis. Franklin D. Roosevelt 1933
The enemy's victory resulting in the Federal Reserve was followed by the next battle, WW1. Using virtually the same manipulation of the political system that resulted in the loss of Constitutional currency, the population of the United States was forced into more physical wars in Europe, the first one beginning only 4 years after the Federal Reserve Act in April of 1917.
World War 1 war cost America 117,000 sons in service of the banker agenda.
Forcing America into the war demonstrated the enemy now controlled the banking and monetary system and had set about controlling the lives of Americans going forward.
Freedom And Domination
The long war – continuing even now – including all of the “conflicts” from 1913 to date- pits megalomaniacal tyrants and psychopaths against individual independence, national sovereignty, free market trade, and competition is a war between freedom and domination.
Currency & Money
For Money to exist, it must satisfy the definition of Money: Any tangible asset that can be used to efficiently store, measure, and express units of purchasing power across space and time… – James Turk
For centuries, bankers have substituted paper chits, called currency, for Money. The magic of currency is that it has no intrinsic value.
No work is required in its creation, not even paper money costs, as most currency exists in bank accounts as digits.
Currency is only Money by sleight of hand, where it takes on the characteristics of Money such that it can be used as a medium of exchange, but, having no value of its own, its purchasing power is related to the number of currency units in circulation, the speed at which the currency is changing hands and the belief in and demand for the currency.
The US dollar is a special currency called a debt-based currency. That means each unit of currency that comes into existence came through borrowing with interest. The dollar has no intrinsic value, and there are interest charges for just holding it.
Herein comes the reason the economy will crash.
The monetary system was designed to transfer wealth from the middle class and below to the top 10% and above. Interest payments transfer direct buying power from the middle class to the bankers, while inflation transfers dollar purchasing power indirectly to the inflators.
Debt Based Currency
A seldom discussed problem with debt-based currency systems is that there is never enough currency to repay the debt and the interest. Here's the rub.
As the currency is borrowed for homes, cars, construction, working capital, or even vacation, more currency must then be borrowed to service the interest payments and loan repayment for the Money already in existence.
The problems of interest and debt are not noticed as the economy begins to build out. Economic growth is funded with new borrowing, and loan money flows fast enough to keep the system liquid, and debt and interest are paid and serviced.
But as the system matures, the amount of debt becomes noticeable. The prices of goods and services increase due to interest passed on to the consumer and inflation caused by the new circulating currency.
Kathrin Latsch, the creator of the video called A Flaw in The Monetary System, estimates that, on average, 30 percent of the price of all goods is due to interest payments. And still, that number increases as long as the debt-based currency continues to exist.
From The Many To the Few
Financial Capital (loan money) is loaned out with compound interest. The interest payments flow toward the institutions making the loan. Interest payments can result in total payments of double or triple the loan amount, depending on payback periods.
This is passive income for banks and owners who receive “Money” out of thin air with no work required – nothing done to earn it. If these banks and owners invest their interest payments at compound rates, the passive income grows exponentially. And the currency needed to make the payments on the reinvested or loaned money has to be borrowed into existence, further exacerbating a shortage of currency.
During downturns, foreclosure, debt restructuring, and even debt cancellation, the same bankers and their owners continue to be enriched by the increased collateral that is returned with foreclosures or cancellations.
Over the lifetime of a debt-based currency, wealth in the form of currency and assets (collateral and resources) positively flow toward the financial system and away from those who must borrow and make payments. The net result is a siphoning of wealth away from 90% of the population toward the 10%.
Time Bombs Away
A debt-based monetary system is a time bomb designed to reach a point where no amount of borrowing can keep up with payments. These final days are punctuated with rising inflation as bankers and governments create currency to slow the destruction, only to produce more inflation.
At the same time, destructive measures such as raising interest rates with NO offsetting spending reduction cause damage to the middle class and below.
Raising interest rates decreases borrowing, which causes liquidity problems as the cash-starved economy begins to rely on government bailouts to sustain mountainous debt payments. These bailouts increase inflation while rising interest rates cause deflation-affected assets such as real estate and automobile sales (a significant chunk of US GDP) to collapse in price.
* Note Fed Chair Powell said yesterday: We still have some ways to go, and incoming data since our last meeting suggests that the ultimate level of interest rates will be higher than previously expected
These events are happening right now, signaling the bankers and their owners have deliberately decided to throw fuel on the flaming economy. Raising interest rates in a failing economy will only harm the middle class and below.
Essential Points About Debt-Based Currency
1) Ever-increasing debt amounts must be created to maintain liquidity in the financial system. Remember, the system never has enough currency to pay existing debt and interest.
2) For the “consumer,” this means new purchases must be made at increasing rates to continue to provide currency to satisfy the growing debt payments required.
3) The manufacturer must have an infinite sales growth model to satisfy the debt and working capital requirements.
4) Debt payments (causing further price inflation and increasing sales goal pressures) become a larger part of the economy than business economic activity.
Market Update
Physical Silver & Gold Premium Update
Supplies of registered silver continue to fall at the major exchanges, and mints cannot keep up with demand.
Silver Spot Price: $19.38 | 1 oz. Silver Eagle Price $37.89 | Premium 100.15% !! ↑
Gold Spot Price: $1634.55 | 1 oz. Gold Eagle Price $1,855.00 | 13.5% ↑
$50 face value junk silver 73.5% over spot price for 71.5% silver quarters ↑
10 Yield: 4.16% ↑
Crude Oil Price: $88.35 ↑
* Note on the 10-year yield. The yield has been pushed down more than 20 basis points (signs of enormous debt purchase volumes) and then quickly rising as much or more over just a few days.
Fed Raises Rates by 75 Basis Points, Powell Says ‘Ongoing Increases' Anticipated
We are seeing the battle to slow or stop the debt market selloff being lost by the central bankers. This indicates market liquidity problems and falling confidence that inflation will be contained before increasing interest rates topple the debt market.
Keep your eye on treasury issues, as worldwide liquidity issues will cause a run on treasury sales.
Automobile Market:
Massive price collapse coming soon. Used car prices are being held higher than inventory asset values can deliver. Falling wholesale prices are leaving dealers underwater, straining floor plan financing. Expect significant price changes soon.
Carvana is likely to crumble: Its current Asset Value $2.75 Billion, and Current Debt: $7.2 Billion. With that collapse, the dam is opened for collapsing used car prices, still overpriced from the Covid19 market perturbation.
With prices about to fall drastically in the used market, the new car market will follow behind.
Meanwhile, auto loan rates highest since 2019 and they are about to go up!
* Jeep announces bankruptcy in China and is pulling out. Ford announced it is selling 49 percent share in the Sollers Ford Joint Venture and leaving Russia. This does not bid well for American corporations outside the USA and will bring financial rating downgrades to these companies in the US.
Real Estate Market
Deep trouble and significant drops in home prices are expected.
New mortgage applications are down 56% over last year as mortgage rates go over 7% yesterday.
October Individual Chapter 13 Bankruptcies Increase 27 Percent Over Last Year
Summary
The US debt-based financial system has lasted much longer than the average time – approximately 30 years. The reasons are related to the powerful ways the US, the world's reserve currency, can manipulate markets to elongate the time to live before the crack-up boom.
However, we have reached the point where drastic measures like massive debt forgiveness and debt cancellation (repudiation) are needed. Lowering interest rates would also be required to bring some life back to the dollar monetary system.
It is clear the decision has been made to destroy the dollar and, with it, most of the world's fiat currencies. This moment was chosen to use a timely scapegoat for the blame and support the “Great Reset” and Agenda 21.
All signs are now that we are nearing the tearing point of the pretended cover hiding the monsters behind who have engineered what will be the most fantastic transfer of wealth in our written history.
We should all make immediate survival plans.
Final Thoughts and Recommendations
Please be aware that our “controllers” are not willing to take the blame for this economic collapse – so prepare for another sizeable False Flag Event that could be used to scapegoat the collapse. We have already heard the mainstream use the contrived and pre-planned “pandemic” as part of the reason the economy is in trouble.
Please find the “Diesel Shortages“, and food supply chain attacks as a message. This situation is going to get worse quickly.
The time is now to finish your preparations.
Move out of cities
Convert dollars that will be held hostage in the banking system to silver (and gold).
Keep Enough cash on hand for a month of typical requirements
Stock up on food
Purchase productive assets if possible (farms, farmland, tractors, specialized machinery)
Obtain necessary components of cooking – cooking oils, flour, sugar, seasonings, etc.
Learn new skills. Fishing, hunting, food storage, gardening.
Purchase a water purification system
Invest in solar equipment for power generation
Buy radio equipment (shortwave receivers, shortwave radios (get your license), GMRS radios
Please note that the so-called “Junk Silver” is a fantastic way to own fractional silver and carry and use silver in a familiar, safe manner. Please see my new article, What is Junk Silver and Why You Should Buy Some. In this article, I explain how to price and buy “junk silver” and why it is a good idea to get some – oh, and get it soon.
** Ideas and suggestions in this article are my own opinions and are not intended to be financial advice.
Jack Mullen
SilverandGoldIRA.com
BuyingSilverGold.com
