The economy and financial markets have been faked by phony money
Money and banks are founded on faulty public sentiment. Money should be a symbol of value. The main manipulators on Earth are the central banksters. They have a monopoly over the money supply. They can increase or decrease their balance sheet at any time by buying or selling assets, which primarily is government debt. They have approximately quintupled the adjusted monetary base since 2008, while keeping overnight bank lending rate at near zero.
Their issued money is made out of nothing, it is a counterfeited substitute that should not bear the name ‘money’ but at most ‘currency’, as opposed to money created out of labour, minerals, or resources through the input of energy. Due to bribery from the central banksters; by law, is this worthless debt money being made legal tender to give it parity with energy money, to draining valuable people’s energy into the elite coffers, which is an unspeakable fraud in plain sight.
The Central Banks know that the phony stock market boom and and the rising prices of real estate depends on more and more fake money. Take the money away and the whole market implodes. Their issued funny money enters the financial system as debt. It is lent out, with interest attached, increasing the amount of ‘liquidity’, but also increasing the amount of ‘debt’.
The whole economy and its financial markets have been faked out by phony money. The financial industry was still relatively small in 1969. Financial assets still carried about twice GDP, as they had done for decades. Now, these are five times GDP.
The average wage earner could still buy a share of the S&P 500 with 20 hours of work, and not over 100 hours as it is today. Government debt was only $353 billion, not $23 trillion. The yield on the 10-year Treasury was 6%, not 1.36%. And the federal government recorded a surplus of $3 billion in 1969, and not a deficit in the trillions.
The 21st century was meant to bring the economy to a level of perfection never before achieved by humans. So far it has been ineffective. – When the clock ticked midnight on January 1, 2000 the world did not end. The dreaded Y2K bug turned out to be harmless. No computer failed. No vital service was suspended. The banks, the gas stations, the TV – everything still worked!
This was a favourable omen, it signalled a delightful century ahead. And why shouldn’t it be? America was now master of the entire earth – and much of space, too. Its warships could blast any sub, destroyer, or super tanker out of the water. Its corporations could beat out all competitors, or so it was thought. The markets as everything else were doing well.
All of this triumphal news was granted by the stock market, where the leading companies – the 30 Dow stocks – were worth more than any time in history. In nominal dollars, the Dow sat at 11,497 on January 1, 2000. In gold, it took 44 ounces to buy the Dow, more than 20 times more than it did 20 years earlier.
Life was good. But people expected technology to make it even better. Electronic communications, computers, and all the glitziness of the internet era were supposed to improve almost everything.
Then, on March 11, 2000, the dot-coms collapsed. And people began to ask questions. There was access to much more information and entertainment. But what difference does it make? – Every new technology is not necessarily an improvement. People got cable and Wi-Fi, along with electronic controls for their heat, air conditioning, and security.
But they spent hours trying to “program” their new gadgets, and many more hours checking their Facebook updates. They switched from talking to each other to talking to Siri and Alexa, by messaging. They stopped reading the newspaper and began to read the fake news online.
They drove electric cars. But that what was not new. Thomas Edison unveiled his electric automobile, with an alkaline battery, in 1889, 115 years before Tesla was founded. And with their hand-held devices, laptops, and computer screens in front of them, they were overwhelmed by information, swamped by it; they were drowning in it.
Hundreds of emails, thousands of messages, quadrillions of pixels and bytes. They couldn’t keep up with it. Investment writer James Davidson reports:
More information has been accumulated in the past couple of years than in the previous 5,000 years of human history. According to a report from IBM, 90% of the data in the world today has been created in the last two years at a rate of 2.51 quadrillion bytes of data a day.
It turned out that more was not better. – The GDP numbers were disappointing. The deficits were disappointing. Savings, capital investment, innovation, productivity, start-ups, and wage-growth numbers were all disappointing. In short; The Information Age was a disappointment. – As was the War on Terror and Drugs.
Everything is a bubble and the worst-kept secret in the finance sector has been officially confirmed: The Central Banks are inflating said bubbles via more quantitative easing on the repo market. The hard part is determining when said bubbles will blow up and the greatest recession in history crushes the markets, because the Central Banks which lowered their benchmark interest rate three times in 2019 while the US-economy was strong, are now out of bullets.
Central bank remedies are worse than the disease
The economy, has become a giant bubble and maybe the coronavirus is going to be the pin? But if it isn’t this, it will be something else. As there are more much deeper problems than the coronavirus: The markets in general are very overvalued, there is a lot of leverage in the banking system. A healthier economy could better withstand such problems or whatever it turns out to be.
The only thing Central Banks have available for rescue is just one medicine that heals nothing. They are like a quack with nothing but ‘snake oil’. The only thing they can administer is fake money. The central bank’s remedies are therefore worse than the disease because, as for example, the coronavirus gets out of control then production will be slashed resulting in fewer people working, as companies cannot get the supplies they’ll need and there will be mass shortages if supply chains are choked off.
The correct monetary policy is to drain liquidity to match the reduction in supply. But instead, the central banks pour even more liquidity and create increased demand for a diminishing supply of goods, resulting in the increasing of consumer prices, ending in hyperinflation.
Everyone should be buying gold and silver
All central banks are deliberately weakening their currencies. They’re pursuing the same type of inflationary monetary policies all over the world, but what’s happening is traders and speculators are buying into the dollar because they falsely believe it’s a safe haven. Which it is not.
Instead, everyone should be buying gold and silver as wise people are doing now. It is seen in the price for gold going higher despite the massive intervention from the manipulators to pulling these prices lower. Think about it; when stocks continue to fall, gold will fall less. And, if stocks go up, on the other hand, it will be because the Central Bank has pushed them up with more phony money. Then, Gold will go up more.
Anyone who counts his wealth in dollars is getting poorer
All currencies are weakening at the same time, only the dollar is weakening slower than other currencies. But that is going to change because people who are piling into the dollar because they think it’s a safe haven, eventually will be pulling out as they realise the reserve currency is finished.
Since 1999, in real terms, both capitalists and the working class have taken a hit. The rich saw their stocks fall in half, as measured by the old, reliable pre-1971 gold-linked dollar. It took over 40 ounces of gold to buy the Dow stocks in 1999. Now, it takes fewer than 20.
The wage earners took an even bigger hit. According to a tweet from commodities expert Josh Crumb, the minimum wage before 1971 was 1.42 grams of gold per hour. Now it’s only 0.32 grams. People who sell time now get only a quarter as much real money for it.
And now is seen and understood, real money and the fake stuff are moving farther and farther apart. This week, gold hit a new high over $1,600 per ounce. It’s signalling that, in real terms, almost anyone who counts his wealth in dollars is getting poorer.
President Trump is likely to be re-elected “on the strength of the economy”
What about regarding that great economy people keep hearing about? If you listen to the mainstream media, you might think the economy is doing great. And you’ve certainly heard that President Trump is likely to be re-elected “on the strength of the economy.” Which just goes to show how our expectations have fallen in line with the real decline of our culture.
If really sensible policies were made and real growth was registered; today’s economy would seem unhealthy. The January new jobs numbers, for example, showed 225,000 new jobs were created. It was greeted as if the economy was doing great again. But, as Emil Kalinowski from Enterprising Investor points out:
If we use the 1990s and 2000s as our control group, and adjust for today’s larger US -labour force, then we would need between 317,000 and 433,000 new jobs a month. And that’s if we’re being conservative. The 1960s, 1970s, and 1980s saw much bigger job gains as a proportion of the labour force.
The most important indicator in a modern economy is the rate of industrial production. It’s the backbone of the economy, where the goods come from. How is that doing? Emil Kalinowski again:
The index of industrial production was reported to be 109.7 (in December 2019). That is only 4.1% higher than in December 2007. US industrial production has in total grown 4.1%. Not per year. But in 12 years!
Taking a slightly longer view, growth remained on an upward, steady trend until 1999. Then, it flattened out, with little gain since then.
Since the crisis of ’08-’09, says Kalinowski, the U.S. has been in a Silent Depression — the third longest, weakest growth period in its history. It began in the Obama years. And it continues today, with no material change in the trends.
U.S. manufacturing got famously “hollowed out” because of low wages overseas and funny money at home. Foreigners exported products to the U.S. America exported fake dollars to pay for them. And the trend is so far advanced that many ordinary items are no longer made in the West at all.
The fake-money-for-real-stuff trade is profitable as long as it lasts. Although, eventually the exporting foreigners will want real money. And then, everyone will be in trouble.
“There’s no escaping the carnage; the housing market, the economy and the stock market and subprime business are falling apart.”
Look, how since 2008 big banks are deeply over-leveraged again. In the fall of 2007, investors went out of stocks, especially real estate and banking stocks. The Dow dropped over 40% between September and March 2008.
Nonetheless, many think the economy is doing fine, as is obvious; what happened in 2008 is the last thing on their mind. A crash is not only inevitable, but also imminent. Few are suspecting it, just like nobody expected the 2008 collapse. Only this time it could be a whole lot worse. A bank much bigger and more powerful than Lehman is on the rope to go belly up. But, few would ever believe this bank could fail. For the time being it has pumped up its leverage to catastrophic heights. A move that ultimately will bring its own destruction. And that of the world economy too.
Remember; All is caused by “pre-existing weaknesses.” But the stock market is priced as though there were no weaknesses at all. Or to put it another way, there are so many pre-existing weaknesses that any infection is likely to be fatal. That is what happens when fake money is the back-bone of civilisation.
Building on what has been learned from FWC articles; you could do your own research and distribute it before it’s too late, as it almost is! The Deep State can only win through lies and deception and when people remain unaware of their own unconsciousness, ignorance, indifference and apathy, then they will win. So please wake up, stop following the mainstream media that intents to keep people ignorant, afraid and enslaved. Inform others by sharing this valuable information with everyone you know, to open more eyes and being able to defeat the global mafia.