Those who create and issue the money and credit direct the policies of government and hold in their hands the destiny of the people.- Reginald McKenna President of the Midlands Bank of England
Inventing money borrowed into existence steals wealth in two primary ways. First, through interest payments on money borrowed. Since no money actually exists but is only printed or created as needed, the interest payments are payments for use of something non-existent.
The second reason is a corollary to the first: outright counterfeiting. Counterfeiting is borrowing and spending excess money, causing money supply growth beyond what is necessary for healthy market credit and stabilized prices. Counterfeiting results in increasing interest payments (stealing wealth through interest payments) and decreasing purchasing power of each existing dollar in the system (as more dollars are available for the same number of goods). Eventually counterfeiting will lead to gradual price increases affecting some groups far more than others. – (1913-2013) ONE HUNDRED YEARS OF DARKNESS: BITCOIN BREAKS THE BANK
The word gaslight refers to a type of psychological abuse in which a person manipulates another person into questioning their reality and sanity.
The term originates from the 1938 play Gas Light, in which a man attempts to convince his wife she is going mad by making subtle changes to the gas lights in their home.
The play was later adapted into a movie in 1944, popularizing the phrase and making it part of the public consciousness. In the decades since, the term has been adopted to describe any psychological manipulation that causes a person to doubt their own reality or sanity.
Gaslighting is a standard procedure for a journalist writing for the mainstream media. In the case of the financial and economic news, we are told inflation is slowly falling. With rarely heard terms like disinflation, it is said that markets already assume the inflation battle is as good as won unless disavowed by hard evidence.
Disinflation is the term used to describe a temporary slowing of the pace of price inflation and to describe instances when the inflation rate has reduced marginally over the short term.
In the real world of shopping, we are still confronted with rising food prices (which are not included in the cost of living projections) and high-interest rates scheduled to increase again in February.
Fed policymakers call for further rate hikes to beat inflation.
Disinflation is a sneaky expression that describes short-term decreases in inflation often seen during an inflationary period while not noting that inflation is expected to return after prices stabilize – after a period of price deflation in interest rate sensitive products.
The disinflation elation was based only on the consumer price index decreasing by 0.1% in December month-over-month. November's CPI increased by 0.1%. Therefore, the net price change over the two months is zero, which is hardly a reason for elation!
More importantly: Core inflation, which excludes the volatile food and energy categories, rose by 0.3%, adding to November's 0.2% increase (which does not include food prices). IBID
CPI numbers include temporary lower fuel prices and falling prices of used automobiles and oil. Oil prices, however, are on the rise again, and auto prices are falling from the stratosphere of bubble prices caused by inflation. Those prices are now unsustainable as interest rates rise and accessibility to nearly-free money has dried up.
Helping inflation numbers improve (temporarily) is the drop in retail sales, which slows the velocity of money and, in the short term, lowers inflation. The decrease in sales also results in retailers lowering prices to offset the loss of sales – again marginally lowering inflation.
Not only are retail sales falling, but manufacturing output recorded its most significant drop in nearly two years in December; simultaneously, monthly producer prices also tumbled, other data showed on Wednesday.
U.S. retail sales drop more than expected in December,
The primary problem is those writing about inflation never address is this: inflation can only be stopped if spending and dollar creation is slowed significantly. That is not happening.
So, explaining to the public that we are in a period of disinflation without filling in the details about why inflation is temporarily – falling due to market adjustments that pressure market sales down due to increasing interest rates is gaslighting.
We are told we are conspiracy theorists if we talk about the plan to destroy the dollar and bring a new digital currency. Basically the media is asking you not to question the truth you experience each time you go shopping.
When the market adjustments are worked through, and the industry affected most by rising interest rates reduces output to a point where supply and demand are closer to equilibrium, prices will continue to increase again due to inflation.
Terminal Currency
The terminal problem with the current economic system is the debt-based currency.
Interest payment obligations also come into existence when the currency is created from nothing of value and added to the existing money supply. The interest payment on new money requires some portion of the current money supply to be diverted to paying the interest.
As a result of rising interest costs to be paid out of the existing money supply, more currency must be added to the system to provide the liquidity necessary to make interest payments and service the everyday requirements of the currency.
In other words, when existing debt reaches a critical point, the need to create new debt to maintain liquidity begins to consume larger and larger proportions of the existing money supply; the infusion of liquidity (debt) must increase exponentially.
Artificial Intelligence Answers My Questions
I asked one of the popular Artificial Intelligence applications (chatGPT) the following question: At what point does a debt-based currency fail due to over-creation of debt? The answer is consistent with the arguments above.
AI: Generally speaking, a debt-based currency can fail due to over-creation of debt when it is unable to support the amount of debt in circulation, and when the issuing country is unable to meet its debt obligations. Additionally, when the value of the currency is no longer able to be maintained, it could be considered to have failed.
My follow-up question asked: At what point does a debt-based currency require exponentially growing liquidity to prevent a collapse?
AI: A debt-based currency requires exponentially growing liquidity to prevent a collapse when the total amount of debt exceeds the total amount of money available to service it. This situation is known as a liquidity trap and occurs when the rate of debt growth outpaces the rate of money creation, leaving insufficient liquidity for debtors to make payments.
We live during the end-of-life of a debt-based (theft) currency – the dollar. The point is when it is impossible to issue further debt to provide liquidity.
Liquidity Crisis
One sign indicating a pending liquidity crisis is the print of treasury yields across all terms, i.e., one month to 30 years. When the curve starts out rising and then falls after a certain number of years (in this case, two years), the market is signaling a possible liquidity crisis is in play.
Treasury yield curve inversion signals a liquidity crisis when short-term bond yield is higher than long-term bonds. This indicates that investors are less willing to take risks and seek short-term safety. This can lead to a contraction in the money supply, resulting in a liquidity crisis.
The Treasury yield curve shows inversion with the turn down starting with 1-year bond rates. This indicates the market is seeking safety in the short-term and doubts long-term returns.
Weapons Of Mass Destruction
Most people have heard derivatives described as financial weapons of mass destruction. The term derivative means that the value of one thing is derived from another.
In the case of the U.S. financial systems, it is estimated that financial assets deriving value from the dollar are valued at $ 1 quadrillion. The federal reserve's official money supply is just $6 trillion resulting in a leveraging of 167 times.
One fed dollar has created the value of another $167.
According to the fed balance sheet, money available for bailouts and crisis requirements is only $60 billion in total capital. Therefore, the feds balance sheet is leveraged 100 to 1, and the derivatives are leveraged (100 * 167) or 16,700 to 1. – Strategic Intelligence January 2023 report.
The results of a financial liquidity crisis can be severe. It can cause a sharp drop in stock prices, a credit squeeze, increased borrowing costs, decreased consumer and business spending, and decreased economic activity. If left unchecked, a liquidity crisis can lead to a full-fledged recession or even depression. Additionally, it can cause banks to fail and lead to a collapse in the financial system.
A simple liquidity crisis can result in enormous financial damage as payments stall and demand for currency peaks. Mountains of currency must be pushed into the system to support derivative transactions everywhere. Suddenly without warning, a massive selloff can occur to raise liquidity snowballing into the mass destruction of the financial system.
But as we can see, the fed's firepower is inadequate to stop a liquidity lock-up: once it starts, it will be impossible to stop.
The World For Nothing
The U.S. Dollar has no intrinsic value; stacks of dollars will have no value and buy nothing at the end of dollar life. Central bankers have always known that dollars have no value of their own, so they can create them for nearly no cost and exchange them for valuables.
Decades of central banking have resulted in the upside-down, inverted reality we live through today. Over the past 100 years, bankers consolidated their power and purchased, with dollars, the implements of empire and empowered all manner of degenerates, misfits, and the highly compromised given “official” status as so-called leaders and authorities.
World governments are now compromised and fully controlled by central banking cartels and their controllers above.
The next step will be consolidating all the nations under one currency system, the Central Bank Digital Currency (CBDC).
We are witnessing the last stage in the draining of dollar purchasing power. When the dollar is no longer required to purchase oil (petrol-dollar), its purchasing power will plummet; the writing is on the wall.
Saudi Arabia Is Open To Discuss Non-Dollar Oil Trade Settlements
Saudi Arabia, the world's largest crude oil exporter, is open to discussing oil trade settlements in currencies other than the U.S. dollar, Saudi Minister of Finance, Mohammed Al-Jadaan, told Bloomberg TV in an interview in Davos on Tuesday.
Make your move now to protect your assets and become unbanked.
Market Summary
U.S. Manufacturing Crisis: Fastest Economic Deterioration Ever Recorded, Analyst Says
The U.S. manufacturing activity has plunged to a record low, indicating that the country has entered into a deeper recession. “This recession is the quickest deterioration in economic activity ever recorded,” an economist explained. This data is accompanied by collapsing global demand, ongoing supply chain disruptions, and high levels of uncertainty.
Out of Money Again! Gaslights Ahead
U.S. government likely to reach debt ceiling Thursday
The U.S. is $31.4 trillion in debt, and it looks more and more likely our country will hit the debt ceiling today with the Biden administration and House Republicans refusing to budge.
Housing Market
The U.S. housing market has only just begun belching out inflation of housing prices. Housing is one of the areas most affected by bubble prices as easy money pushed prices up over the last decade. The end result will be a buyer's market as long as buyers hang on to their dollar purchasing power and keep that buying powder dry until the price collapse has stabilized.
Tooze on How Low the U.S. Housing Market Could Go in 2023
Between 2013 and 2022, U.S. house prices in real terms have risen by more than 60 percent, and a very large amount of that surge, about 40 percent, has come between the first quarter of 2020 and the second quarter of 2022. And I think that's the way in which we get a handle on what the worst-case scenario might be. If one imagines most of the pandemic hype unraveling, you could be looking at a price shock of 20 percent. That would be a really very severe hit to this huge pile of assets. We're talking trillions of dollars in value here.
Automobile Markets
Used car prices caught the wind of the mother of all bubbles, especially after the business shutdowns of 2020 caused by an irrational pandemic response. These prices are now falling, and a buyer’s market in used cars is coming to those that wait.
The steep plunge in used car prices – what it means, and what's ahead
Since the start of the pandemic and the resulting disruptions to new car supply chains first sent prices soaring, used car prices posted their largest annual increase on record – up 45% in the 12 months ending in June 2021, according to the Consumer Price Index – before swinging to a 12-month drop of 8.8% in the most recent reading for December.
Silver and Gold Market
A Commodity SUPER-SPIKE Is Coming. Are You Ready for It?
Today commodities, in general, are in massive INVERSE bubbles; therefore, when risk-on eventually becomes risk-off, and it will, the price of commodities will SUPER-SPIKE.
Silver demand reached an all-time high in 2022, according to the Silver Institute.
Demand for silver was expected to have reached a new high of 1.21 billion ounces in 2022, up 16 percent from the year before, driven by increases in industrial use, jewelry and silverware offtake, and physical investment.
Mining stocks are beginning to come alive and giant companies like BHP are reporting record high earnings and stock prices. Junior mining stocks are at the launch pad and judiciously choosing the right company might be your key to banker independence over the next few years.
Demand for Silver will continue to increase this year.
Silver Spot Price: $23.77 | 1 oz. Silver Eagle Price $37.07 | Premium 55.95%↓
Gold Spot Price: $1924.80 | 1 oz. Gold Eagle Price $2,090.45 | 8.60% ↓
$50 face value junk silver $1154.50 | 35.8% over spot price for 71.5% silver quarters↓
10 Yield: 3.37% ↓
Crude Oil Price: $79.14 ↑
* note arrows show price increase or decrease over the last article.
Final Thoughts:
The media is controlled by the same people running the central banking cartels. The rest of us must understand the plan to destroy the dollar and remove the dollar's world currency status while significantly changing the role of the United States in the world hierarchy of powerful states has been decided.
We can now only work from the point of view that this will happen, and after it does, we can be ready to stand against the bankers and demand an end to central banking and debt-based currencies.
The rulers of the world (over 1000 private jets full of them) are meeting now and working on the next stage of world takedown.
Using phony pretenses of sustainability, inclusiveness, and carbon neutrality (weaponized pseudoscience), and more, these people who believe they have some right to make decisions for you and me are working very hard to roll out the new digital gulag in the form of the CBDC which is under test right now in several areas of the United States.
Take the remaining time to transfer out of the dying dollar and into purchasing power-preserving assets such as silver coins, bars, and bags of pre-1965 quarters, dimes, and half dollars. Also, use your dollars to buy product assets. See my suggestions below.
Get educated on how to use alternative payment means and prepare to stand for humanity when the time comes to say No More Central Banks.
Here are a few things of immediate importance.
Move out of cities.
Get out of debt. Stop spending more money than you physically have.
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.
Keep stocking up on food.
Purchase productive assets (farms, farmland, tractors, specialized machinery).
Make preparations for gasoline and diesel fuel shortages coming this winter and spring.
Obtain necessary components of cooking – cooking oils, flour, sugar, seasonings, etc.
Learn new skills. Fishing, hunting, food storage, gardening.
Purchase a water purification system and identify places to find flowing water for use when the power systems become unreliable.
Invest in solar & wind equipment for power generation.
Consider communications a priority and invest in 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, MBA
* Note I am not giving advice, only my opinion, I am not a financial advisor. This article represents my thoughts about the economy only.
