Everybody agrees that we are heading for the harshest attack on our living standards in a generation or more, and most will appeal to our local lords and masters to sort it out. Of course to get your vote they will make all sorts of promises, but the truth is there is nothing they can do to avert this tsunami of poverty that is going to hit the ordinary people. The reason being is that it is not a local event, it is a world wide catastrophe, also it is not an unavoidable event some accident of fate, nor is it an act of God. It is a well thought out and planned set of circumstances, laid out at the last Davos gathering and engineered by the big boys in the financial Mafia. A world wide design to recapitalise the insane system of global capitalism. For years now the financial Mafia has been flooding the system with phony money at very low interest rates, Quantitative Easing, and the big business world jumped at the bonanza building up massive debts. Too much junk money floating around and too many over valued shares. To over come this problems for the Financial Mafia in this greed fest, the only answer they know is to raise interest rates.
What will follow is mass defaults, bankruptcies, evictions and repossessions and raging inflation as business try to stay afloat. In the global corporate business world only the biggest and strongest will survive. What this translates into in our world of ordinary people, is unemployment, a slashing of social services, cost of living nightmare and the vicious claws of poverty visiting each and every home of the ordinary people. A tidal wave of physical and mental health problems, our kids potential stunted, a collapsing health service and failed education system, our elderly dying much earlier than they would normally.
Appealing to the puppets of this system, our local governments is pissing in the wind, they are part and parcel of this nightmare as they are the managers of the system at our level, the puppets of the financial mobsters that control the global money system. Our only hope is solidarity of the ordinary people, across all borders of on this planet. To organise in bringing down this system of greed and profit for the few. Coming together to create that better world based on mutual aid, sustainability, respect for all humanity, freed from the profit motive and based on seeing to the needs of all our people. Time is running out, if the present set of circumstance does not get you angry and on the streets, your kids and grand-kids can look forward to a heritage of abject poverty in the midst of opulence. The choice is our, it is their world or it is our world, we are on opposing sides, there is no in between fence sitting, you fight or your surrender, you struggle for that better world or you capitulate to abject poverty, the life of a serf.
The following is an extract, the full article is well worth a read.
With the Fed now imposing a Quantitative Tightening, withdrawing tens of billions in bonds and other assets monthly, as well as raising key interest rates, financial markets have begun a deleveraging. It will likely be jerky, as key players like BlackRock and Fidelity seek to control the meltdown for their purposes. But the direction is clear.
By late last year investors had borrowed almost $1 trillion in margin debt to buy stocks. That was in a rising market. Now the opposite holds, and margin borrowers are forced to give more collateral or sell their stocks to avoid default. That feeds the coming meltdown. With collapse of both stocks and bonds in coming months, go the private retirement savings of tens of millions of Americans in programs like 401-k. Credit card auto loans and other consumer debt in the USA has ballooned in the past decade to a record $4.3 trillion at end of 2021. Now interest rates on that debt, especially credit card, will jump from an already high 16%. Defaults on those credit loans will skyrocket.
Outside the US what we will see now, as the Swiss National Bank, Bank of England and even ECB are forced to follow the Fed raising rates, is the global snowballing of defaults, bankruptcies, amid a soaring inflation which the central bank interest rates have no power to control. About 27% of global nonfinancial corporate debt is held by Chinese companies, estimated at $23 trillion. Another $32 trillion corporate debt is held by US and EU companies. Now China is in the midst of its worst economic crisis since 30 years and little sign of recovery. With the USA, China’s largest customer, going into an economic depression, China’s crisis can only worsen. That will not be good for the world economy.
Italy, with a national debt of $3.2 trillion, has a debt-to-GDP of 150%. Only ECB negative interest rates have kept that from exploding in a new banking crisis. Now that explosion is pre-programmed despite soothing words from Lagarde of the ECB. Japan, with a 260% debt level is the worst of all industrial nations, and is in a trap of zero rates with more than $7.5 trillion public debt. The yen is now falling seriously, and destabilizing all of Asia.
The heart of the world financial system, contrary to popular belief, is not stock markets. It is bond markets—government, corporate and agency bonds. This bond market has been losing value as inflation has soared and interest rates have risen since 2021 in the USA and EU. Globally this comprises some $250 trillion in asset value a sum that, with every fed interest rise , loses more value. The last time we had such a major reverse in bond values was forty years ago in the Paul Volcker era with 20% interest rates to “squeeze out inflation.”
As bond prices fall, the value of bank capital falls. The most exposed to such a loss of value are major French banks along with Deutsche Bank in the EU, along with the largest Japanese banks. US banks like JP MorganChase are believed to be only slightly less exposed to a major bond crash. Much of their risk is hidden in off-balance sheet derivatives and such. However, unlike in 2008, today central banks can’t rerun another decade of zero interest rates and QE. This time, as insiders like ex-Bank of England head Mark Carney noted three years ago, the crisis will be used to force the world to accept a new Central Bank Digital Currency, a world where all money will be centrally issued and controlled. This is also what Davos WEF people mean by their Great Reset. It will not be good. A Global Planned Financial Tsunami Has Just Begun.
