When the Overdue Recession Hits Us

Preface
I don't have an Economics Degree, so I rely on a broad spectrum of economists and monetary theorists for these essays.  Plus, as a wise man once told me, "You don't have to be a Master Carpenter to recognize a shack.".  :)

A few facts---
1.  Worldwide debt is somewhere in the neighborhood of $250 trillion, which is close to three times the world's GDP.
2.  The U.S. public National Debt is now a tad over $22.5 trillion...more than our annual GDP.  We pay $896 million per day in Interest on that debt.  Politicians in DC are increasing our Debt exponentially.
3.  U.S. personal debt is now just shy of $20 trillion.
4.  U.S. unfunded liabilities now stand at a bit more than $125.7 trillion.
5.  U.S. nonfinancial Corporate debt is now at about $15 trillion...the highest it has been in decades.
6.  Total U.S. Debt (not counting unfunded liabilities) is now a tad over $74.1 trillion.  [See:  USdebtclock.org ]  That's more than three times our annual GDP.

Conclusions---
1.  The world is awash in Debt.
2.  The U.S.A. has a significant portion of that Debt.
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Meanwhile, the UK, continental Europe, and Japan all have been adhering to the Zimbabwe "School of Economics" by PRINTING MONEY.  Plus, the USA is on the verge of starting QE-4, more printing of money.  This is all being done to prop up the Stock Market.  In addition, Corporations have been buying back their own stock, thus falsely inflating that Market.  At the same time, Bond Markets have been crashing, capital expenditures have been decreasing, and manufacturing has been slowing down...in the Western World.  In Asia (except for Japan), they have been sticking to conventional economic, monetary, and fiscal policies; but in the West, we are in an Era of Weirdness.
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Bottom Line---
When the overdue Recession hits, and there's a succession of bursting Debt Bubbles, the impact on Western World Finance and Economies will be much greater than in 2008-2009.  Businesses, a few investment Banks, perhaps some regular Banks, Insurance companies, and associated firms likely will collapse, then unemployment will jump way up, and price inflation will take hold...thus exacerbating the Recession, possibly driving it into a full-blown Depression.

Central Banks refuse to bite the bullet and raise Interest rates (or better yet, let the Market determine the rate) because that would burst the Stock Market Bubble.  We would have a Recession, but we need to because too much money is chasing too few goods.  Big-time inflation is coming unless we dial back all this monetary craziness.
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Not only my opinion.  Be Well

The Fed, JFK, the "United States Note", and the Upper Crust

The Fed Reserve has been ruining this country for over a hundred years.  Very few know about it, or if they do, understand it...so very few care anything about it.  That's understandable.  The Fed's sole job is to transfer wealth to the Upper Crust...even Bernie Sanders, a guy who's all for "government", has said that.

Just before he was killed, JFK started by-passing the Fed by having Treasury & the U.S. Mint issue the "United States Note" directly...without the Fed as Middle Man.  [Notice the top of the bill.]

https://www.pinterest.com/pin/249527635582929370/

I had several of those "Kennedy bills" (in smaller denominations:) back in the '60s; wish I would have kept them.  I'll bet they're worth much more than face value today.  

The Fed was royally pissed.  The U.S. Note was in direct competition with the Fed Reserve Note.  Had he lived, JFK would have dried up the Fed; they would have become obsolete, & their guaranteed-by-law 6% annual dividend would have evaporated.  All that has caused a conspiracy theory (of the assassination) involving Bankers & the Administration of the Fed Reserve.  It's possible, I suppose, but how likely I don't know.  We'll never know the truth about JFK's death.

p.s.  The 6% dividend goes to the 12 Fed Branch Banks AND the 25 Fed Sub-Branch Banks---37 in all, & all privately owned.  The only thing governmental about the Fed is the Admin Office in DC...and as Greenspan said on PBS yrs ago, "No one has authority over us."...that includes the President.  The Congress conducts oversight Hearings, but if you've watched the clips of them on YouTube, you know they aren't worth much.  On critical questions, the Fed usually beats around the bush, never actually answering any significant question.

Not only my opinion.  Be Well

The Economic and Financial Crash is Just Around the Corner

Best guess--- The Crash probably will be anytime before the end of next year.  No one can predict exactly when.

Today I saw an ad for blue jeans; the price of the britches---$60.

In 1961, similar jeans were $3.95...I know because I remember buying a pair for that price in Ft. Collins, Colorado while I was a student at Colorado State U.  [You remember the damnedest things when you get old:]  So, about four dollars versus sixty dollars; to me, that's hyperinflation...it's already here.  It may be a bit anomalous for hyperinflation because of the long span of time involved, but nevertheless, it seems to me it IS the beast.

Decades of monetary policy from the Fed Reserve have reduced the value of the Dollar from 100 cents in 1913 to about 3 or 4 cents today.  They've purposely debased/devalued the Dollar in order to be able to afford the interest payment on our massive National Debt (ever since that Debt doubled or tripled---can't remember which---during the Reagan years).  They can pay it with ever cheaper dollars.  That's why the Fed is always shooting for 2% inflation... per year. 

Imagine what an ounce of gold would be worth if all the beaches of the world consisted of grains of gold instead of grains of sand.  Whenever the amount of some item is increased in the Market, the price/value of each unit of that item goes down.  Through institutionalized deficit spending, the Fed being the main purchaser of T-Bills (monetizing the Debt), and the horrendous QE for the last 8-9 years, the Fed has made the Dollar almost worthless...by creating huge amounts of it out of thin air.  That's why some jeans are $60 now.  That's why the Fed Budget is in the trillions instead of millions or the low billions.  The Dollar is worth less...a lot less.  One even might say that it's almost worthless.  Of course, the Propaganda from the Powers-That-Be says the Dollar is strong.  What that really means is:  it's the best of the worst.  It's the cleanest dirty shirt...and even that characterization is questionable.

The Gov't always can get more "money".  All it has to do is type digits in a computer.  That's what it does when the Fed Reserve buys Bonds/T-Bills.  Actual currency isn't printed up and handed to the Treasury by the Fed; the Fed simply types the amount onto its Balance Sheet.  It never will "run out".  The problem is that the world is fast losing faith in the value of the Dollar.  We all should be, too.  Countries are dumping the Dollar and bypassing the Dollar right & left.  Those Dollars then come home, which means more inflation, but this time it will be much faster than that from 1961 to the present.  International players such as the IMF and Bank of International Settlements already are looking into replacing the Dollar as the world's reserve currency.  Can you blame them?  I think not.

No politician can stop this...it's too late.  We'll survive, but the cost of that survival & recovery will be high.

Don't believe the Elites' current Propaganda.  They're telling bald-faced lies because they're afraid the truth would result in massive panic...including a monumental exodus of capital from the USA.  [To those who think the public & private Powers-That-Be never would lie about such things---please, are you kidding me?  History says otherwise.]

Be Prepared (see previous posts), and Hang in There
p.s.  Your degree of comfort during the real recovery will depend upon your degree of preparation.  And, no, you don't need a bunker & hand grenades; there won't be a massive Mad Max scenario.  The Powers-That-Be would institute Martial Law on a monumental scale before allowing that to happen.

Not only my opinion.  Be Well