MANNARINO: Hyper-Economics, Hyper-Debt, and Another Great Depression
Currently, the world economy, despite VAST debt expansion, is slowing at its fastest pace on record.
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By Gregory Mannarino, TradersChoice.net
According to the Congressional Budget Office, U.S. Debt is expected to exceed FIFTY-FOUR TRILLION DOLLARS by 2034. With that, the World Economic Forum (WEF) President, recently stated that: “We Have Not Seen This Kind of Debt Expansion Since the Napoleonic Wars.” (Vast debt expansion during the Napoleonic Wars fostered the illusion of economic prosperity, which led to a Post-War Depression.)
What is important to take note of here is vast debt expansion invariably creates an unsustainable illusion of economic prosperity, which also invariably ends in economic disaster, and depression.
CELENTE: NO CONNECTION BETWEEN MAIN STREET AND WALL STREET
The current HYPER-CYCLE of vastly expanding hyper-debt expansion will also lead to another Great Depression…on a global scale.
Today, the pace at which global debt is rising has accelerated beyond that of any other time in history, and this mechanism is what is directly responsible for mass-currency devaluation/loss of purchasing power, and inflation.
Currently, the world economy, despite VAST debt expansion, is slowing at its fastest pace on record. The mechanism of vast debt expansion and thus accelerated currency purchasing power losses, creates a need for MORE CENTRAL BANK ISSUED NOTES, (as the currency continues to lose purchasing power, it takes more currency to purchase the same goods).
Currency creation is debt creation, which is itself inflationary/purchasing power negative—so the need for even more currency creation/debt expands faster. (This mechanism further empowers central banks). The NUMBER ONE GOAL of every central bank on Earth is debt expansion. Debt is the ONLY product of any central bank, and the more debt a central bank can issue, or is allowed to issue, or is called upon to issue—THE STRONGER THEY BECOME.
Today it is “HYPER-ECONOMICS” again fostering a grand illusion.
HYPER-ECONOMICS is also responsible for the stock market hitting a series of new all-time highs with the S&P 500 having its longest winning streak since the “Financial Crisis.”
The fact is this: WE ARE IN A FULL BLOWN—FULL-ON Economic HYPER-DEBT nightmare CRISIS, which is being deliberately engineered. Moreover, the “Illusion” of the market will be maintained leading up to the U.S. Presidential SELECTION… EXPECT THAT THE U.S. STOCK MARKET WILL CONTINUE TO HIT NEW RECORD HIGHS.
Currency devaluation, and ESPECIALLY ARTIFICIALLY SUPPRESSED BOND YIELDS, (AS CENTRAL BANKS BUY MORE DEBT) will continue to create MASSIVE price-action distortions across the spectrum of asset classes.
Expect commodity prices to remain under pressure. Also expect the price action of cryptocurrencies to fall under pressure as cash is “pushed” into risk assets/stocks.
Until and unless governments decharter their central banks and return to nationalist policies of credit and banking, there is no solution. The time will come when central bank printing presses cannot keep up with the runaway inflation and currency devaluation. The nation’s of the Trans-Atlantic region and governments in particular, have little time remaining before they have to decide between Glass-Steagall orderly bankruptcy reorganization OR face the fallout of disintegration of the 2 quadrillion derivatives bubble that drives the collapse in the first place. In other words government leaders are going to have to start pointing to the elephant in the middle of the room that nobody in government dares talk about for fear of not getting re-elected. But if elected officials do nothing or what they have been doing, kicking the crisis down the road, they risk more than not being re-elected. Life as they have known it is about to change, for better or for worse.
A Glass-Steagall bill, HR 2714, is before the House. It needs to be passed asap. Call your Congressman and demand they cosponsor the.bill and get other legislators to cosponsor it too until it is voted into law. If we do that the US will have a chance to survive. Failing that, the American people will be hit with something even worse than a second Great depression. Economic breakdown in which nothing gets produced and no one gets paid. The food on the shelves of our grocery stores will disappearas food riots take over after the delivery system grinds to a halt. The companies that provide Power and water will stop delivery. because they can’t get paid. The dollar will be worthless tender. People will turn to Bartering to survive. Chaos will reign as the Fed desperately tries to bailout the banks in order to save the hopelessly bankrupt floating exchange rate system. To prevent it, educate yourself on the Glass-Steagall alternative and the Four Laws Lyndon LaRouche said were necessary for economic recovery in a time of crisis.
Every Nation has the power to issue their own currency.
With one simple act of Law this could be reinstated and all debts cancelled.
Rip it up.... Tear it up... Start again...
https://fritzfreud.substack.com/p/democracy-or-dictatorship