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Rather Than Sink Main Street by Raising Interest Rates, the Fed Could Save It. Here’s How.
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Inflation is plaguing consumer markets, putting pressure on the Federal Reserve to raise interest rates to tighten the money supply. But as Rex Nutting writes in a MarketWatch column titled “Why Interest Rates Aren’t Really the Right Tool to Control Inflation”:

It may be heresy to those who think the Fed is all-powerful, but the honest answer is that raising interest rates wouldn’t put out the fire. Short of throwing millions of people out of work in a recession, higher rates wouldn’t bring supply and demand back into balance, a necessary condition for price stability.

The Fed (and those who are clamoring for the Fed to raise rates immediately) have misdiagnosed the problem with the economy and are demanding the wrong kind of medicine. …

Prices are going up because crucial inputs—labor, electronics, energy, housing, transportation—are in short supply. Normally, the way to solve this imbalance would be to give workers and businesses incentives to increase their supply. …

The Fed has been assigned the job of fixing this. Unfortunately, the Fed doesn’t have the tools to do it. Monetary policy works (in theory) by tweaking demand, but it has no direct impact on supply.

The Dire Effects of the “Wrong Kind of Medicine”

Not only will raising interest rates not fix the supply crisis, but according to Alasdair Macleod, head of research at GoldMoney in London, U.K., that wrong medicine is likely to trigger the next financial crisis. He thinks it is imminent and will start in Europe, where negative interest rates brought the cost of doing repo trades to zero. As a result, the European repo market is now over €10 trillion (\$11.4 trillion), far more than the capital available to unwind it (to reverse or close the trades). Rising interest rates will trigger that unwinding, says MacLeod, and the ECB lacks the tools to avoid the resulting crisis. Meanwhile, oil prices have risen over 50% and natural gas over 60% in Europe in the past year, “due to a supply crisis of its governments’ own making,” writes Macleod. Member governments are heavily in debt, yet European Central Bank president Christine Lagarde wants to borrow more to finance the transition to carbon neutral. Macleod writes darkly:

As for the euro’s future, it seems unlikely that the ECB has the capability of dealing with the crisis that will unfold.… The deconstruction of this shabby arrangement should prove the end of the euro and possibly of the European Union itself.

German journalist Ernst Wolff paints an even darker scenario. He contends that the globalist European leaders heading the World Economic Forum (WEF) are crashing the global economy intentionally, in order to clear the chessboard for the WEF’s “Great Reset.” They’re doing this, he says, because they have to. The global bankers’ boom-and-bust financial system is now so top-heavy and debt-laden that it cannot be sustained. Problem/reaction/solution: desperate people will welcome the WEF’s Great Reset, in which they will own nothing but will be offered a marginally adequate Universal Basic Income with onerous strings attached. This subsistence income will be doled out through a central bank digital currency (CBDC) controlled nationally by the country’s central bank and globally by the IMF as issuer of the reserve currency and, ultimately, of a single global currency.

There are indications, however, that the U.S. Fed is not going along with this Eurocentric globalist push. Financial blogger Tom Luongo points to Jerome Powell’s clash with Christine Lagarde in May last year over her insistence that central banks require private banks to monitor the business of their clients, and to the Fed’s raising its repo rate to 0.25% in June, attracting investors earning zero interest in the European repo market into the U.S. dollar and away from the euro. Luongo suggests that the Fed’s resistance to the globalist plan comes from the Wall Street banks that own the New York Fed, which are not willing to give up the U.S. dollar’s status as global reserve currency and could be driven out of business by a CBDC distributed directly through individual central bank accounts.

Preserving the current Wall Street-dominated system, however, hardly helps Main Street. The pandemic added \$5 trillion to the fortunes of the billionaire class; but government-instituted lockdowns permanently shuttered more than 100,000 U.S. businesses and left vast portions of the population living on the edge. According to a recent study from Johns Hopkins University, the detrimental impact of global lockdowns substantially outweighed their public health benefits.

Is It Time to Amend the Federal Reserve Act?

The U.S. dollar is backed by the full faith and credit of the United States: it retains its value because the American public is willing to take it in exchange for their goods and services. But the public has not been allowed access to the bottomless pool of central bank liquidity that backstops this public credit.

According to Cornell Law School Prof. Robert Hockett, however, the framers of the Federal Reserve Act intended for Main Street businesses to be able to tap this liquidity pool. He argues that the Fed already has the monetary tools it needs to rescue the real, productive economy. They just haven’t been used – for over a century. The Fed can stay in its own lane and stimulate local production using monetary policy baked into the Federal Reserve Act itself.

Cornell Law School’s Prof. Robert Hockett wrote in Forbes in March last year that the Federal Reserve System was originally designed to be “something akin to a network of regional development finance institutions. … Each of the twelve regional Federal Reserve Banks was to provide short-term funding directly or indirectly (through local banks) to developing businesses that needed it. This they did by ‘discounting’ – in effect, purchasing – commercial paper from those businesses.” Investopedia explains:

Commercial paper is a commonly used type of unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable and inventories, and meeting other short-term liabilities…. Commercial paper is usually issued at a discount from face value and reflects prevailing market interest rates.

In determining what kinds of commercial paper to discount, wrote Hockett, “the Federal Reserve Act both was – and ironically remains – quite explicit about this: Fed discount lending is solely for ‘productive,’ not ‘speculative’ purposes.”

In a follow-up article, Hockett explained that the drafters of the Federal Reserve Act, notably Carter Glass and Paul Warburg, were essentially following the Real Bills Doctrine (RBD). Previously known as the “commercial loan theory of banking,” it held that banks could create credit-money deposits on their balance sheets without triggering inflation if the money were issued against loans backed by commercial paper. When the borrowing companies repaid their loans from their sales receipts, the newly created money would just void out the debt and be extinguished. Their intent was that banks could sell their commercial loans at a discount at the Fed’s Discount Window, freeing up their balance sheets for more loans. Hockett wrote:

The RBD in its crude formulation held that so long as the lending of endogenous [bank-created] credit-money was kept productive, not speculative, inflation and deflation would be not only less likely, but effectively impossible. And the experience of German banks during Germany’s late 19th century Hamiltonian ‘growth miracle,’ with which the German immigrant Warburg, himself a banker, was intimately familiar, appeared to verify this. So did Glass’s experience with agricultural lending in the American South.

According to Prof. Carl Walsh, writing in The Federal Reserve Bank of San Francisco Newsletter in 1991:

The preamble sets out very clearly that one purpose of the Federal Reserve Act was to afford the means of discounting commercial loans. In its report on the proposed bill, the House Banking and Currency Committee viewed a fundamental objective of the bill to be the “creation of a joint mechanism for the extension of credit to banks which possess sound assets and which desire to liquidate them for the purpose of meeting legitimate commercial, agricultural, and industrial demands on the part of their clientele.”

“Liquidating” loans backed by “real bills” basically meant turning a company’s receivables into bank-issued credit that could be spent on the workers and materials needed to produce its goods and services, bringing supply in balance with demand. That “monetization” of debt might not drive up prices, but external factors obviously could. Today those factors include supply chain problems, worker shortages, and resource shortages. In the 1920s, the trigger was speculation in the stock market.

The real bills policy was discredited after the stock market crash of 1929, due to overly-strict application by the Fed. As the tale is told in Wikipedia:

Fed Board member Adolph C. Miller in 1929 launched his Direct Pressure initiative. It required all member banks seeking Federal Reserve discount window assistance to affirm that they had never made speculative loans, especially of the stock-market variety. No self-respecting banker seeking to borrow emergency reserves from the Fed was willing to undergo such interrogation, especially given that a “hard-boiled” Fed was unlikely to grant such aid. Instead, the banks chose to fail (and the Fed let them), which they did in large numbers, almost 9000 of them.

But the policy’s original objective remains sound: “creation of a joint mechanism for the extension of credit to banks which possess sound assets and which desire to liquidate them for the purpose of meeting legitimate commercial, agricultural, and industrial demands on the part of their clientele.”

Walsh noted that discount window borrowing is currently available only for easing very short-term reserve shortages. When the Fed wants to expand bank lending, it purchases government securities from the banking sector, allowing bank reserves to expand. But he observed that this maneuver does not necessarily increase bank lending, and that some commentators argued that the Fed should be allowed to purchase existing loans from banks that could then use the funds to back new loans on the “real bills” theory.

Compare North Dakota’s “Mini-Fed”

How might that work today? For some idea, we can look to the highly successful state-owned Bank of North Dakota, which has been described as a “mini-Fed” for the local banks of that state. Again quoting Wikipedia:

The BND serves as a wholesale bank for the state’s community banks and credit unions. It participates in loans created by the local banks by expanding their size, providing loan guarantees, and “buying down” interest rates. Additionally, it buys loans from bank portfolios as well as community bank stocks. The bank provides other banking services to local banks, such as clearing checks, acting as depository for their reserves, and providing federal funds.

According to a May 2020 article in The Washington Post titled “North Dakota Businesses Dominated the PPP”:

Small businesses there secured more PPP [Paycheck Protection Plan] funds, relative to the state’s workforce, than their competitors in any other state ….

What’s their secret? Much credit goes to the century-old Bank of North Dakota …. According to Eric Hardmeyer, BND’s president and chief executive, BND connected the state’s small bankers with politicians and U.S. Small Business Administration officials and even bought some of their PPP loans to help spread out the cost and risk.

… BND offers few retail services or direct loans, with the notable exception of student loans. Instead it partners with local banks, multiplying their lending power and guiding them through the ever-evolving global financial system….

BND has already rolled out two local successor programs to the PPP, intended to help businesses restart and rebuild. It has also offered deferments on its \$1.1 billion portfolio of student loans.

Updating the Federal Reserve Act

The Paycheck Protection Plan was one of many relief programs established in March 2020 that were funded with Fed credit and capitalized with money from the Treasury. But Treasury backing would not actually be necessary to restore the Fed’s Discount Window to its original function. The Federal Reserve Act would just need a bit of tweaking to bring it into the 21st century.

To start, Hockett says we need many more Federal Reserve branches than the original twelve, which are not distributed proportionately to today’s populations. The three-month limit on commercial loans and six-month limit on municipal government loans in Federal Reserve Act §10b also need to be extended; and we need a national funding agency for infrastructure, similar to the Reconstruction Finance Corporation that restored the depression-ridden U.S. economy in the 1930s. Hockett has drafted a bill for implementing his proposals, found here.

That could work for long-term production, but families faced with rising food and energy bills need help right now. Until production catches up with demand, the innovative Cornell professor suggests that the Fed can counteract the speculation that is driving up those prices with “Open Market Operations,” using its new Chicago Fed trading desk to short them in the market. Direct market intervention is highly controversial and could obviously be misused; but the tool exists, and, if properly directed, it could help satisfy the Fed’s mandate to maintain consumer price stability. For more on that rather complicated subject, see here and here.

To sum up: today’s price inflation was triggered not so much by “too much money” as by “too little supply,” due to lockdowns and mandates. The Fed can help restock consumer supplies using tools already in its toolbox. They include Open Market Operations to counteract speculation, and the Discount Window to purchase loans from local banks that would be willing to fund Main Street businesses if they had some help from the national Lender of Last Resort. We need the sort of Discount Window envisioned by the drafters of the Federal Reserve Act, one providing the liquidity to backstop bank advances against the future productivity of local businesses.

This article was first posted on ScheerPost. Ellen Brown is an attorney, chair of the Public Banking Institute, and author of thirteen books including Web of Debt, The Public Bank Solution, and Banking on the People: Democratizing Money in the Digital Age. She also co-hosts a radio program on PRN.FM called “It’s Our Money.” Her 300+ blog articles are posted at

(Republished from Web of Debt by permission of author or representative)
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  1. Wilson says:

    “price inflation was triggered not so much by ‘too much money’ as by ‘too little supply’” Except sales were way above normal. Maybe it’s easy to be fooled when counterfeit money becomes more counterfeit, but if you say a disease caused a buying frenzy and asset bubbles you aren’t fooling anyone.

  2. Thomasina says:

    OMG, more bullshit. There is way TOO much money sloshing around out there, handed out like candy, bailout after bailout. This cheap excess money has created a huge amount of demand. Duh. Like we couldn’t see that coming! No wonder supply is down; cheap credit is chasing it.

    The Fed has a mandate for “stable” prices and yet they are “creating” inflation by keeping interest rates too low. “Let’s let inflation run red hot first,” says Powell. It’s all been manufactured, just like Covid was. Every time the bubble wobbles, in rushes the Fed to bail out the debtors time after time. “Sure, I’ll have some of that cheap debt, so long as you assure me that you’ll bail me out when the time comes.”

    The Fed also has a mandate for “moderate interest rates”. When was the last time they were moderate? Not having moderate interest rates is what got us into this mess. Like going to a party with a never-ending supply of booze, and we know how that ends.

    And tell me, when was the last time the Fed cared about Main Street? They don’t give a sh*t about Main Street, but they use the pretense of caring about “Main Street” whenever it’s useful to them, whenever the insolvent corporations need bailing out.

    Let it go. Take your hand off the lever.

  3. @Thomasina

    What we are talking about here is the socialisation of collateral –
    in essence what the reserve currency does, but for Krethi and Plethi.
    As soon as the Euros realize you are issuing more money against their wealth
    they will be not amused and it will be either game over for the reserve currency
    or their “elites” gently swaying in the breeze – from lampposts.

    And when that happens it will no longer matter what you have done.

  4. Once again Ellen Brown leads the way.

    When I get a bit confused about the economy I go to Warren Mosler’s blog. Recently he posted a graph showing consumer spending before and after the pandemic.

    The graph shows that current consumer spending hasn’t crossed the trend line of pre-pandemic consumer spending. It is/was still below where it would be if the pandemic hadn’t happened. So the idea that a massive increase in consumer spending is driving inflation seems specious.

    Inflation is mostly being driven by supply costs and restraints. Raising interest rates is a bad idea because the cost of money is a supply cost and therefore likely to drive inflation further.

    Great column by Ellen Brown. Thanks.

    • Troll: CSFurious
  5. Great article. On a recent far leftist media headline the title of a story was, New study shines light on what drives inflation. UH, could it be Joe Biden and Company?

  6. Ivymike says:

    This article is a good example of concentrating on one aspect of inflation to make a point (to sound smarter than you are) while ignoring other major inflationary pressures such as corporate competition with traditional consumers in the dwelling market, giant agricultural companies sharply increasing prices that remain depressed at the producer level, and whatever the hell the Biden administration is up to with their fake Russian invasion that is driving up energy prices.

    • Replies: @Curmudgeon
    , @Thomasina
  7. @Ivymike

    I agree. While not written by Brown, she appears to accept logic of the statement:

    Prices are going up because crucial inputs—labor, electronics, energy, housing, transportation—are in short supply.

    Why are they in short supply? Because of the bullshit COVID narrative. The number of the great unwashed who refuse to be vaccinated is understated. These people have been pushed out of work. My daughter and her husband have each lost over a month’s work, since the start of this BS for having come “in contact” with people who have tested positive, using a “test” that is useless. There are others in their workplaces who have suffered the same. These things all add up to shortages of the other things on the list. Less people available to work, means less production.

    • Agree: Thomasina, RadicalCenter
  8. Thomasina says:

    Exactly. Articles like this might fly with people who don’t follow economics at all, but not with those who follow it a little more (and I’m sure we don’t know the half of it).

    With mortgage and student loan forbearance, along with people not having to pay their rent, PPP loans, stimulus checks and other benefits, people turned around and spent this money and it created tremendous demand and not enough supply.

    “During the pandemic there was an incredible boom in sales of consumer electronics (smartphones, laptops, routers, TV and music systems, 8-screen day-trading rigs) and commercial electronics (from automated point-of-sale systems ski areas installed to large-scale networks and hardware for data centers and crypto mining rigs whose sales exploded with exploding crypto prices) that blew away all records.”

    And, yes, foreign and institutional investors should not be allowed to compete in the friggin’ housing industry against ordinary citizens. All this cheap money is causing chaos.

    And yet some people are asking for more!

  9. Whoswho says:

    Whatever happens, I promise, will not be for the greater good of society.

    2030 – You’ll own nothing and be happy.

    • Agree: Realist
  10. Angharad says:

    (((The Fed))) doesn’t want to save Main Street.

  11. Dr. Doom says:

    The swindlers at the Rothschild Monopoly Money Ponzi scheme save Main Street?
    That would be raciss or Anti-semitic or something something…

    The Zion Pigs are looking for a way to blame their mismanagement on Whites.
    )))They((( have painted themselves into a corner and cannot “RESET” anything.

    No, this time these damn rats have no place left to go to after this burns down.
    There are no more people who do not see these rats as a Cancer.

    The Game is about OVER. No RESET and no more LIES left to use.
    The screeching will continue until the White Men STOP this.

    The Crazy Times could be over quickly if the White Men RISE UP.

    • Replies: @Towey
  12. nsa says:

    “prices are going up because crucial inputs are in short supply”
    PURE CRAPOLA. Wu-wu restrictions resulted in a loss of 2 trillion dollars in GDP. So the PTBs created 6 trillion dollars of new ersatz helicopter money. Inflation is the direct result of the extra 4 trillion dollars sloshing around looking for a home.

  13. This has been brought up on other articles here on Unz:

    German journalist Ernst Wolff paints an even darker scenario. He contends that the globalist European leaders heading the World Economic Forum (WEF) are crashing the global economy intentionally, in order to clear the chessboard for the WEF’s “Great Reset.” They’re doing this, he says, because they have to. The global bankers’ boom-and-bust financial system is now so top-heavy and debt-laden that it cannot be sustained.

    I think that is exactly what they are doing, and no matter what course the Fed takes, it is going to be a bloodbath. Soft landing? Like hell. The world is engaged in a massive speculative frenzy as never before in history. The current bubble is like combining Tulip Mania with South Sea and 1929 then taking it to the fourth power. It is huge, beyond like anything we have ever seen – yet because we are all in it we can’t see it properly.

    Everyone is “all in”. No one believes the Fed will raise rates ever again. Now is the perfect time to pull the rug out and and strip the Goyim of everything.

    The “falling off the cliff” waterslide is already happening in junk bonds, see chart:

    Expect a big gap down and dramatic sell off any day now.


    • Agree: RoatanBill
    • Replies: @Justvisiting
  14. Towey says:
    @Dr. Doom

    I find it funny that you expect WASPS, who have always been the muscle for the bankers to enforce their usurious debt based financial system on virtually every country in the world,to save us from the same system. Without the cooperation of the WASPS since the Reformation and the privatisation of the issue of the currency with the establishment of the Bank of England in 1694, the usurers would be impotent.

    • Replies: @Swaytonious
  15. Franz says:

    Ellen’s right.

    Tight money in the 1930s is the reason the Depression lasted so long.

    Inflation in the 1970s kept the Vietnam costs and the oil shocks from throwing the country into ANOTHER depression.

    Forget economics. History says inflate or create the Greater Depression.

    • LOL: RoatanBill
    • Replies: @Mike1
    , @Emslander
  16. Controlled opposition. NOTHING of this will EVER happen. No way, nada, zilch. Who the feck do you think owns, therefore runs, the USA? The proles? It is to laugh.

  17. JR Foley says:

    “USA needs negative interest rates and then can spend its way back into a surplus” –was it Peter Navarro or Mike Pompeo –??

  18. Inflation is the direct result of the extra 4 trillion dollars sloshing around looking for a home.”
    Most of this money went to Co’s & elites.
    What money average people got went to pay down credit cards & other loans. Yes there was spending on electronics etc, but against that there was a huge sucking sound associated with any business involved in dealing will the public in numbers — restaurants, clubs, airlines etc.
    The essential line of this article is correct — raising interest rates will not fix inflation caused by various supply issues (many outside the US.)
    The article is also very good in that highlights the little realised fact that the Fed already has powers (& mandates) to assist Main St.

    • Replies: @RoatanBill
    , @TPM
  19. “…the Fed could save…” is an irrational paradox.

    “The Fed” is a Jewish freak of destruction.

    Inflation = Judaism.

    • Agree: Yukon Jack
  20. The Dollar has been in the process of failing since Aug 15, 1971 when it became pure fiat. The failure has been accelerating every year to where we are now that we can feel the end is near. Engineers will recognize a failure curve when they see it and all the financial curves are going asymptotic.

    Anyone with any brains wants the Dollar to fail since that will terminate the US empire. To try to keep it alive by some new swindle is long term counterproductive. Let it go, along with the \$30T in debt and all the unfunded liabilities the voters believed were their entitlement. When Social Security, Medicare, pensions, etc fail completely or are so discounted that it amounts to the same thing is when people will wake up to the fact that they’ve been lied to for decades. Anyone that lent the US Fed Gov money deserves to lose every dime.

    But a new gimmick will be rolled out and the stupid (voters) will go along because they want to believe. CBDC, called the Dollar or something else, will eventuate. It will also fail because it’s just the same scam under a new guise. All these machinations are the controllers strip mining as much wealth as possible before the final crash.

    Maybe there’s no time and the people will have no stomach for the CBDC. That’s my hope. No matter how it goes, there will be massive violence when Phelopia’s check doesn’t arrive or doesn’t purchase anything. That’s when Testicleeze will try to burn the cities down. There will be no real law at that point because no one is being paid to administer it. It’s an opportunity for decent people to take out the trash.

    It’s not going to be pretty. Stock up on weapons and ammo while you can.

    • Agree: Realist, nokangaroos, Towey
    • Replies: @Irish Savant
  21. Anonymous[216] • Disclaimer says:

    Why can’t the Department of Treasury do the job of the privately-owned Federal Reserve? Must we always line the pockets of the Wall Street shysters?

    • Agree: Yukon Jack
    • Replies: @RoatanBill
  22. Realist says:

    Why would the FED do anything to save main street? Their allegiance lies with the Deep State and the super-rich and powerful.

  23. @animalogic

    Never expect the people who caused a problem to solve it.
    Albert Einstein

    The (((Fed))) is the source of the problem.

    • Agree: Yukon Jack
    • Replies: @Yukon Jack
  24. @Si1ver1ock

    Pull your head out …

    Inflation is always and everywhere a monetary phenomenon.
    Milton Friedman

    By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens.
    John Maynard Keynes

    The idea that paper money could replace intrinsically valuable gold and precious metals, and that banks could take secure short-term deposits and transform them into long-term risky investments came into its own with the Industrial Revolution in the eighteenth century. It was both revolutionary and immensely seductive. It was in fact financial alchemy – the creation of extraordinary financial powers that defy reality and common sense. Pursuit of this monetary elixir has brought a series of economic disasters – from hyperinflation to banking collapses.
    Mervyn King – Governor Of The Bank Of England

    • Replies: @Drew
  25. Guys says:

    “the problem is not too much money, but too little supply”?

    Chicken or egg?

    Either way, M1 quadrupling from March 2020 to now certainly implies too much money to me, and it’s led to speculatory bubbles in all the wrong places, simultaneously.

    As a general rule I can’t stand by anything that gives the Fed *more* power, as I’m not sold on the legitimacy of the Fed’s existence in the first place – the shenanigans afoot in its creation deserve their own American Pravda article.

  26. @RoatanBill

    In my view the current situation is the ultimate pump and (soon) dump. They inflated financial assets into the stratosphere, and now with rising inflation, all they have to do is “fight inflation” by “raising rates” (a noble endeavor) and they whole mountain of credit/debt will come crashing down in the biggest deflation ever.

    We have good evidence to support this “theory”. The Fed is a Jewish scam to strip the Goyim of their wealth. The Rabbinic class writings predicts our current situation. Jewish ‘holy’ writings predict that in end of times the Jews will own all of the gold.

    The first pump and dump, the Roaring Twenties followed by the Great Depression led to the confiscation of gold. Once all the gold was gathered up by F.D.R. (Jew) the Goyim were now captive like mice in a cage, they had to run the treadmills to survive. Women were forced into the workplace, wars were manufactured to dominate white societies, family structure was attacked and people were individualized and separated, all became wage tax slaves forced to fill out income tax forms.

    The goals of the Jews and the elites is to pin us down in economic slavery. They did a magnificent job. Now we are at end of history, interest rates were forced down to zero (for a long time) leading to massive speculation in financial assets as a way to hedge against inflation. The public is “all in” with leverage – a condition that was once reserved for the elites in their fiat money inflation asset stripping operation. So it is the perfect time right now to pull out the rug, all those who took the bait, who took the equity out of their inflated home value, were suckered, because when the dump comes asset values will plummet but they will still owe the debt they incurred in the pump phase.

    • Replies: @nsa
    , @Ralph B. Seymour
    , @fish
  27. There is a presupposition here.

    Sinking Main Street. Is that a bug or a feature?

  28. @Yukon Jack

    The world economies are circling around the event horizon.

    They may be able to financially engineer their way around the problem for some period of time, but the ending is cold equations.

    Into the black hole we go.

    • Agree: h74betatester
    • Replies: @Yukon Jack
  29. Dr. Doom says:

    The days of the WASP-Zion alliance is now over.
    The Zion Pigs have gone All the Way Anti-White.

    White Men have millions of guns and no place in the Zion Pig fantasy.
    The Zion Pigs have no real loyal soldiers to save them.

    The “diversity” will KILL OFF any Zion Pigs if the lights go out.
    The thin blue line better stay out of the way, they have no support.

    Its a question of when, not if. The clock is ticking down.
    Once the system crashes, the Zion Pigs are kosher bacon.

    • Replies: @Katrinka
  30. The quote by Rex Nutting shows that Rex does not know what inflation is or what causes it. The use of this quote by Ellen Brown shows that she doesn’t know what inflation is either. Inflation is an increase in the money supply. This has been caused by the Fed printing money to cover profligate government spending and to bail out the Fed’s cronies. The answer is to end the Fed, suffer through some hard times, put a lid on government spending and get back to prosperity. Anything else will not work and is merely a method of continuing the progressive’s march to tyranny.

    • Agree: Rich, The Anti-Gnostic
  31. “price inflation was triggered not so much by ‘too much money’ as by ‘too little supply’”. Rubbish and this makes me distrust the author. Fwiw I think the CBs will keep printing. Of course there will be inflation and savers will have their nest-eggs destroyed. But the all-important ‘markets’ – which aren’t really markets at all – will be saved while reckless banks and governments will have their debts inflated away via monetisation. Grossly immoral of course but I can’t see anything else happening.

  32. @Anonymous

    Anyone thinking clearly doesn’t want any entity to do what the Fed does now. It is the existence of a Central Bank that creates an artificial entity called a national “currency” that is at the very heart of the problem. Pieces of paper with numbers written on them are a fraud. This fraud allow the banks to use “fractional reserve banking” to manufacture more currency with every loan they make. It is a purpose built criminal enterprise sanctioned under law to continuously cheat the population for the benefit of the controllers.

    No gov’t should have anything to do with what people use as money. Currency isn’t money, but gov’ts force people to use it as though it were money. Every gov’t debases their currency simply because they can and because the controllers are in a position to profit from it. It’s a giant swindle.

    Gold is money. Everything else is credit.
    J.P. Morgan

    Gold and silver are money. Other tangible things can be money, but the world has settled on precious metals as the most convenient form of money. The miners sweat to dig it up. The refiners remove the impurities. The mints produce coins and bars with exact weights. That’s money.

    The weight of metal per coin or bar IS the value of the item with no artificial middleman of “Dollar”, “Yen”, “Euro”, etc involved. Therefore, prices for goods and services should be quoted in weight of metal. If this were to be done, there would be no “Dollar”, “Yen”, “Euro”, etc, just grams of metal and there would be no arbitrage, no reserve currency, no deficit spending, no wars paid with pieces of paper, no politician promising spending with funds that don’t exist except by raising taxes to pay for them, …

    The banks could store OUR gold and silver coins and bars. They form the basis of our account. The convenience of a debit card could allow us to use our wealth as we do now with accounting entries squaring accounts.

    • Agree: Towey, JR Foley
  33. nsa says:
    @Yukon Jack

    Again, the Japs have been running zero or negative interest rates since 1991…..accumulating a debt to GDP ratio of 260%…….with their central bank directly owning half of all Japanese ETFs. By these metrics, ZUSA and its pathetic satraps can keep the scam humming along for quite a bit longer as the debt to GDP ratio is only 130% and the plunge protectiion team still uses kept pet banks to buy equities only indirectly…..for now. The owners create our reality……we are essentially dumbfuck serf spectators.

  34. As a Libertarian I have to say this article does NOT address the issue. The issue is that current debt WAY exceeds income; debt/gdp>450%. That is, the Dollar economy (USD) is insolvent. No amount of ‘tweaking’ IS GOING TO FIX this! The best approach is gradual. First we should stop taxing INDIVIDUAL INCOME of any kind and switch to a tax on DEBT. Debt is definitely bad behavior and should be taxed, it is worse than smoking, drinking and drug use combined. Eliminating the individual tax mandate and replacing it with a tax of 2.1% on debt replaces the entire IRS mandate on individuals (not corporations). A further 1% levy should be enough to replace the tax on state income and sales taxes. The second approach is to allow debt to float to its market value, you’ll be surprised at HOW low and how fast interest rates will fall. This can only happen if the supply of new debt is limited to 3/5 or less of income growth. IT’s a non-bank way of thinking, but it will help stabilize this economy over the next few generations. Yet, we will follow the same path and watch as the banking system collapses in the next crisis due in about 15 years, according to the geometric debt growth mathematics the bankers are subjecting upon us.

    • Replies: @RoatanBill
  35. @RoatanBill

    Totally nailed it with that comment.

    • Thanks: RoatanBill
  36. Mike1 says:

    I see you got an “A” in your community college Econ class.

    • Replies: @Franz
  37. The FED is a privately owned zionist central bank , it was created in 1913 and is used to create debt and slavery on the American people, it is unconstitutional and should be abolished, it is the cause of all the wars and deaths and debt that the zionists have forced upon the American people.

    Zionists are destroyers of nations and humanity which they do via their central banks throughout the world, and they are destroying America.

    • Agree: Katrinka
  38. @Yukon Jack

    I suspect that the huge debt destruction associated with an interest rate hike will cause USD deflation.

    Roatan Bill believes if that happens, it would be short lived, with loss of confidence in the dollar following soon thereafter leading to the total destruction of the dollar.

    But I just can’t quite get that in my mind because the bankers will make sure there is nothing else with which to settle accounts. I’m keeping some USD, but I hope I lose every bit of it.

    • Replies: @Yukon Jack
  39. Mike1 says:

    These ideas are not strictly wrong but a century late. Thinking that more debt is what we need now is rearranging deckchairs on the Titanic thinking.

    This system is done.

  40. Emslander says:

    Here’s the thing. Debt must be repaid, if not by the person taking out the loan, then by the person who lent the money in the first place. When interest rates are near zero, it’s probably the lender who gets screwed. In the big picture it’s the bondholder who put out the money to the government and the government mandated that its bonds would not pay interest to match the actual time value of the money it borrowed.

    A very dangerous pattern has recently developed where borrowed money has somehow become desirable at all levels of the economy. That’s why production is down. Who needs to produce when the government does the borrowing for everybody, using its power to hold down the return on saved money.

    There has been too much free money issued that isn’t backed by productivity. Supply and demand don’t establish prices independently of each other, which is the implication of this article. The price is set at the intersection of the supply curve and the demand curve for each product or service in the economy. More lending, at a more granular level of the economy isn’t the answer. The only answer is to get workers and entrepreneurs producing goods and services that creates more savings.

    Forget the FED. Let interest rates reach the actual risk of lending. Shut down the spigots. Let us all work productively once again.

    • Replies: @Franz
  41. fish says:
    @Yukon Jack

    …..because when the dump comes asset values will plummet but they will still owe the debt they incurred in the pump phase.

    And best of luck to them and their agents when they try to collect!

    It’s going to be Krazilec!

  42. Drew says:

    In general, that’s true. If, however, you take as true the basic economic dictum that price is where supply meets demand, then it becomes extremely obvious that reduced supply with constant demand and money supply would result in higher prices. It’s certainly true that the money supply has increased in the past few years, but it’s downright ludicrous to even suggest that the supply of consumer goods has done anything but decrease in the past couple years as well. Therefore, price inflation comes from a double whammy of more currency and decreased supply of goods. It’s not, “either-or,” it’s “yes-and.”

    • Replies: @RoatanBill
  43. CSFurious says:

    “Inflation is mostly being driven by supply costs and restraints.” 100% wrong. Read Richard J. Maybury “Whatever Happened to Penny Candy?” The amount of U.S. dollars in circulation was greatly increased within a short period of time. The percentage increase was more than 25%. That increase “inflated” the supply of money which devalued every dollar that was already in existence.

    • Agree: Mark G.
  44. Never going to happen.. the jews won’t allow it.

  45. @Towey

    Wasps are waking up to the reality of the JQ.. finally.

  46. Rooster13 says:

    It sounds like the author is trying to attribute a short term solution to a long term problem. In Weimar Germany, it wasn’t that there weren’t enough eggs, milk, bread, etc., it was that it took a wheelbarrow of money to purchase them. I believe the Austrian Painter mentioned this in a number of his speeches. I can’t tell if many of these modern day economists are just trying to stay relevant by playing the devil’s advocate, or they just simply don’t understand the mechanisms of inflation… either way it’s very scary.

  47. saggy says: • Website

    As a result, the European repo market is now over €10 trillion (\$11.4 trillion), far more than the capital available to unwind it (to reverse or close the trades).

    Does 1 out of 100 know what this means? I don’t? Why in hell do econ writers use jargon that they know no one understands ..

  48. @RoatanBill

    Roatan Bill’s comments should be printed on flyers and pamphlets and dropped from airplanes.

    • Agree: Katrinka, Liberty Mike
    • Thanks: RoatanBill
  49. Rich says:

    The Japs are able to do this because they don’t have the reserve currency of the world. The US can’t afford to lose reserve status, so it has to do something.

  50. @nsa

    That’s a darn good point.

    The jew bankers have lots of tricks up their ass.

  51. @Drew

    Using supply and demand as the excuse for the inflation going on doesn’t pass the smell test. Yes, there may be a small component of the inflation that is supply demand sensitive, but the bulk of the price increases are due to more money chasing a slightly decreased amount of goods. That reminds me of the auto manufacturers closing down plants because of the truckers on the bridge. No mention is made of the continuing chip shortage. Things get blamed on whatever is the most advantageous.

    Greed is also not to be ignored as some of the increases are nothing but opportunism. I heard the other day that some pharma house increased the price of their product from pocket change to over \$500. Unless one of the ingredients is crushed moon rocks and they just used up the last one, that increase is rank greed and opportunism.

    Look at the curve for currency creation from year to year. Whatever the percentage increase from one year to the next, that IS the level of overall price inflation we should expect and will get eventually. We haven’t felt the true inflation yet because lots of the new currency went straight into homes, stocks, and other investments that did inflate, but people generally don’t factor in those prices when they talk about “inflation”. It’s the grocery store, fuel costs and the more mundane things that people focus on.

    Milton Friedman was right. Inflation is a function of currency creation. Those that get it first or the earliest benefit the most before the remainder understands what happened. Eventually, it’s like water pouring into a dammed lake. All boats rise to the new level.

    • Replies: @RestiveUs
  52. antibeast says:

    The reason why the US inflation rate has now skyrocketed to 7.5% and likely higher to double-digit figures late this year has to do with the Fed QE money creation over the last two years since the pandemic started which went into buying US T-bills in order to finance the record-breaking US public deficits at extremely low interest rates. The Fed interest rates only affect the short-term bank reserves via the Fed’s REPO window, not the long-term public debts such as US T-bills. But the excess liquidity driving the inflation rate higher is not coming from bank lending which is most affected by Fed interest rates but from the inflated balance sheet of the Fed which is driven by its non-stop QE money creation. So unless the Fed stops printing money, the inflation rate is not coming down due to its non-stop QE money creation which has fueled the excessive and speculative Capital inflating property, commodity, energy and other physical assets. But that would mean higher interest rates for the US public debt which the Biden Administration needs to incur to finance its projected budget deficits for the rest of his term. For the Fed to raise its interest rates without stopping its QE money creation would actually tank the US economy into a prolonged period of stagflation with lower economic growth made worse by higher inflation, due to the inverted yield curve consisting of higher short-term interest rates coupled with lower long-term interest rates.

  53. @h74betatester

    Taxing debt reminds me of the time I was in traffic court to fight one of the numerous speeding tickets I got every year. The judge had a list of people that already pled guilty but couldn’t pay the fine due to insufficient funds. The judge’s solution used your thinking process to arrive at his next move.

    He added an additional monetary fine for not being able to pay the first one. That man was a genius. /sarc

  54. Anonymous[244] • Disclaimer says:

    More absurd gibberish from Ellen Brown. She has been spinning the same ridiculous “good inflation” mantra for years. Some inflation at present is driven by shortage of real commodities or problems transporting them, but the major asset bubbles are inflated by money conjured by Fed. Brown cites all sorts of authoritative sounding experts, but seems oblivious to the facts on the Fed’s own balance sheet which show outlandish amounts of monetized “assets.” She believes the wolf that is the Discount Window pawn shop is actually a sheep and that allowing banks to pawn more dodgy loans to Fed is a real solution.

    Amend the Federal Reserve act? Increase Fed powers after the carnage it has wrought over the last century? Pshaw. Abolish the Fed. Any other solution is a farce. The power to conjure money will always be abused by innately corruptible humans. ALWAYS. Trying to prevent abuse of such power is like trying to make B. Clinton not molest, or W. Bush spell a fourteen letter word. Anyone who thinks the solution to the present helicoptering money woes is granting Fed more money creation powers is an absolute imbecile, but this is the snake oil Brown always peddles. Let banks that want more money to lend attract more depositors. Let those who want more money work for it rather than simply having a corrupt Fed conjure it for them, thereby confiscating pre-existing wealth from honest working citizens against their will, making claims upon their future earnings, and distorting the fulcrum of free market supply and demand that is price signals. The printing press never has and never will produce prosperity. There will always be fools like Brown that believe otherwise, but never forget that monetary inflation is just the clandestine confiscation of wealth via rising prices because of money printing.

    • Agree: Agent76
  55. A123 says:

    The ideal solution is MAGA Reindustrialization. If Americans make more real things – They will earn more wages – Which can then be used to buy more real things.

    Dependency on Asia for key raw materials (e.g. rare earth elements) and products (e.g. pharmaceuticals) must end. Again MAGA Reindustrialization is the answer. Industries that have ceased to exist must be restarted.

    No amount of monetary policy can resolve the underlying problems. It takes blue collar jobs at good pay to support the American dream.

    PEACE 😇

    • Troll: mulga mumblebrain
  56. Shit, where does the author think the printed 7 trillion went? And that is just what the USA printed. What about all the money printed in Europe and Japan?

  57. TPM says: • Website

    I certainly agree with your comment and position, but probably for rather different reasons. You are right, but it is wholly unnecessary to go that far.

    For the vast majority of people on Earth, the single most important determinant-in-fact of their quality-of-life is money.

    Yet paradoxically, and near inconceivably, most people do not know the first and most important thing about money, and that is that there is no money.

    Everything that people are habituated to think of as money is in fact a derivative-of money. There are promises-to-pay money, there are orders-to-pay money, there are various kinds of evidence (exchangeable-evidence-of-debt) that one party owes money to another party, and all of the accounts are denominated in money. But there is no money.

    Just as we could have a fully functional otherwise duplicate of the existing system but denominated in unicorn-horns instead of dollars, euros, yen, rubles and yuan. There are no unicorn-horns in fact, but that does not matter because there doesn’t have to be.

    More generally, the phenomenon that we are habituated to describe as money is an intangible thing – a notion or an idea – and not a tangible thing. It has no mass nor weight nor dimensions.

    Here following is an introduction as to why it makes such a monumental difference.



    Usury as Cognitive Dyslexia

    What is usury?

    If your answer is interest, then you are experiencing cognitive-dyslexia.

    Usury is the pure exploitation of another’s necessity, and its most substantive and significant manifestation in finance is everything that is not the interest.

    “A man shall not have interest for his money and a collateral advantage besides for the loan of it…” – Jennings v. Ward [1705] 2 Vern. 520, 18 R.C. 365.
    Every benefit taken indirectly by a creditor, for the granting of which no impulsive cause appears but the money lent, will be voided as extorted. (Principles of equity: Kames, Henry Home, Lord, 1696-1782).

    If, for example, a money-lender would agree to loan £100 to the headmaster of a private school with interest at, say, 5% per annum, provided that the headmaster will also admit the money-lender’s son to the school even though he does not otherwise qualify, then that separate-condition-of-access is the usury, while the interest-called-interest is not, even though the interest-called-interest can still itself be characterized as a less-concentrated-form of usury.

    A promissory-note is more properly and accurately a usury-note, because as a condition of access you must first unconditionally and gratuitously agree that you owe the named amount as “principal” to the bank, plus interest, and that you will convert or pay the bank the same amount again on the named maturity date, all as a constructive or de facto application / entry-fee, before the bank / banker will even consider giving you anything in return.

    Signing and delivering the promissory-note / usury-note, and giving-over-legal-ownership of all of the real and financial assets so attached, to the bank, is an act and ritual of submission and subservience, and also the bank’s direct source of funds / secured-credit for the subsequent pretended-loan. It is a variation (and cross-leveraged-extension) of what the ancient Romans called paying-tribute to Caesar. 
    What then is the difference between or among a promissory-note, a usury-note, and a tribute-note?

    The label promissory-note allows the serf to normalize and habituate bowing-down before Caesar as a procedural-virtue, so as to perpetuate and normalize such servitude as a natural state of being, which in turn avoids other more overt and violent forms of repression and plunder.
    Forensically, the business marketed to the public as banking-post-1913 (at the latest) has been and remains credit-reinsurance, compounded and leveraged by 100%-plus access-fees / tribute-payments. 

    The private-international-nominal-banking-system is a massively-efficient harvester of civilization-level-wealth because it is constructed from and comprised of cross-leveraged-double-counting double-whammy devices. It is in fact two different but parallel businesses working in tandem. Nominal banking is credit-reinsurance-in-fact, piggy-backing (or vice versa) on a de facto separate business of charging and then further trafficking in 100%-plus application-fees / tribute-payments for access.

    Then about 1980 that already-massively-fraudulent-and-anti-equitable business-model was wrapped in and by a larger racketeering-based-business-model, that was then used to channel the proceeds of conversion into the further-access-restricted private-financial-markets.

    Using the year 1900 as a convenient starting point for the unfolding of a more-or-less century-long process, up until then for all of human history we had only needed multiple millions (1,000,000’s) to account for the personal financial wealth of the world’s richest individual humans. Cecil Rhodes, for example, when he died in 1902 left an estate of some six million pounds.

    Then after 1913, as and while the masses were gradually habituated and normalized to the double-counting business-model-of-pretended-banking, the system eventually needed the word billion (1,000,000,000) to accommodate the individual members and aggregate big-winner’s-club in the game of surfing the latest wave of financial inflation.

    Then when they added and incorporated false receipts (to misrepresent bare assumptions of liability as equity-investments), they needed the word trillion (1,000,000,000,000) to accommodate the aggregate winnings of the individual and aggregate (and ever-expanding) big-winner’s-club surfing the wave as so self-induced and ever-more coordinated.

    Then when they added an additional / second racketeering / wagering-wrapper and business-model, they needed and got the word quadrillion (1,000,000,000,000,000) to accommodate the resulting 1,000-fold exponential-increase in the amount of financial inflation.

    Financial inflation works like this:

    You are little people. You are told that there is an evil out there just waiting for us called inflation. You are told that the monster is ever-increasing-prices for ordinary goods and services. You don’t need to concern yourselves with how much acquisition-capacity is being created in the form of purchasing-power-for-the wealthy who both own and manage their private system. As long as you are employed in the production of super-yachts, private-jets, luxury-resorts and golf-courses, Rolls-Royces or Rolexes, then everyone is happy. There’s a place for everyone, and everyone is in their place.

    But we’re now into about the fifth-roll-over (or roll-overs-within-roll-overs) since the end of WW II and we’re soon going to need the word pentillion (as in \$1,000,000,000,000,000,000) to explain it to the public – or rather to continue hiding it from them, and the spillage into the real world is starting to get unmanageable.

     Not money-lenders
    Banks are not what you think they are. They are not money-lenders – they are credit-reinsurers, and they are asset-sinks. When you sign and deliver a promissory-note and mortgage you are underwriting and advancing real-estate-secured-credit to the bank.

    The bank / banker strips-off the financial and real-estate security as a premium for itself, and then returns or reinsures unsecured-credit back to you as an unsecured-deposit-credit that does not cost the bank anything material to produce. 

    The money / credit for the alleged or pretended loan does not even exist unless and until you underwrite it by accepting the liability for it by agreeing that you owe it, normally under the promissory note that is secured by the mortgage (and whether by separate-instrument or embedded in the nominal mortgage itself).
    You then have to add or issue the same amount again in the form of a signed check / cheque (drawn on the bank) to the seller of the real estate, who has to co-sign / endorse it and deliver it back to the bank as a ratification of the otherwise recoverable-loss of their property and legal-title to the bank in exchange for an unsecured deposit credit. Then the bank agrees that it owes the principal amount (selling price) to the seller instead of to you.
    The nominal mortgage is a combination bill-of-sale that transfers all right, title, and interest in the property to the bank, plus an embedded repurchase-option that allows you to buy the property back from the bank by paying it all of the money (discharging all of the liabilities) required under all of the securities. When a bank forecloses it is not foreclosing on the house, because it already owns the house. The foreclosure is of the repurchase-option – sometimes referred to as a right of redemption (and another example of cognitive-dyslexia).
    The banker arrives at the transaction with metaphoric empty-pockets, and leaves with all of the financial securities from the income-pre-qualified lead-underwriter / pretended-borrower in one hand, and the legal-title to the market-value-pre-qualified-real-estate property (and the endorsed check) from the seller in the other.
    From the nominal bankers’ perspective there is only one material reality, and that is that pre-qualified-real-equity / secured-assets come in, and only unsecured-liabilities go out. They are real-asset-sinks and they are unsecured-liability-kiters. The penultimate in balanced feedback-loops.


    To make it easy, assume that some previously unknown physical asset were to be discovered with a net present value of \$100 trillion, or more than a year’s combined GDP of all the nations and people on Earth. Something like a deposit of the fictional-anti-gravity-element “Unobtainium” in the 2009 film Avatar.

    The owners of the private banking system (the bank) are happy to purport to loan the discoverers / new-owners the money / credit they need to begin accessing and employing their new asset, and to take the asset itself under a mortgage-security for so-doing. 
    Forensically, or by procedure, the discoverers / owners must first sign and issue a promissory-note / usury-note / tribute-note agreeing unconditionally that they owe the bank \$100 trillion “For value received”, which is objectively nil as and when the note is executed and delivered in fact, and that they will pay the bank another \$100 trillion on the named maturity-date, plus interest in the meantime.

    The discoverers / owners must also just as unconditionally transfer legal ownership and deemed-legal-possession of the new asset to the bank under the mortgage said to secure their promissory-note / tribute-note, in exchange for a repurchase-option to buy it back from the bank by, as just mentioned, converting / paying the bank (another) \$100 trillion, plus interest, and by doing everything else that the bank requires of them on pain of forfeiture or foreclosure of their repurchase-option should they fail to do so. 
    If the new \$100 trillion asset were discovered on Monday, then the private banking system could legally own it outright by Tuesday, and (as an added / leveraged bonus) be under no contractual obligation to reinsure the credit, nor do anything at all. 
    That is the fundamental-change that has radically / exponentially-accelerated the process post-WWII, and which became effectively unstoppable after about 1980. The bankers and the people who own them effectively doubled the 100% tribute / access-fee by requiring the producer of the wealth to also agree that the bank is not legally / contractually bound to give them anything in return – unless the pretended-lender wants to.

    That is what has been fuelling the multi-quadrillion-dollar ballooning of the stock-and-financial markets worldwide. It’s all about leverage leverage leverage and double then triple then quadruple-counting of the insured-amounts underwritten by the lead-underwriters, supplies the rocket-fuel that powers the show.
    As at close of business on Monday, the banker will have already added the \$100 trillion promissory-note / usury-note / tribute-note to the bank’s balance sheet as its own property and increase in its financial wealth (and begun the process of making further / leveraged gains and profits from it in the financial markets). And the banker will have already added (on-book-or-otherwise) the new asset (the Unobtainium-deposit) as its own property and an additional \$100 trillion increase in its own physical wealth. And all rolled-over directly into the bank’s de facto capital-asset-base so as to not show up as taxable income.
    It is now Tuesday morning and the bank is \$200 trillion richer than it was on Monday morning – literally for nothing. The bank and its owners are already experiencing the greatest inter-generational free-ride and gravy-train in the history of civilization.

    But it is not enough. Power and domination always need and seek more power and more domination for its own sake.

    The relatively-recent major financial innovation for more power is to require the lead-underwriter producers / real-owners / pretended-borrowers to also expose themselves to the risk of the bank choosing not to reinsure the credit after the bank has received the premiums / tribute payments. Basically, the wagering-format (or lottery-of-one where either you win the prize or you don’t) allows the bank to capitalize-it-twice-over (i.e., it goes from double-counting to quadruple-counting – and then channelled to the financial markets and / or in fraud of the financial markets).
    That is why today virtually every nominal mortgage has a clause or provision to the effect:

    8.11 The Borrower agrees that neither the execution nor registration of this mortgage …will oblige the Lender to advance any…money hereunder but the advance of money from time to time will be in the sole discretion of the Lender.


    6 (13) The lender does not have to advance … the principal amount … to the borrower unless the lender wants to even though 

    (a) the borrower has signed this mortgage, 
(b) this mortgage is registered in the land title office,…


    IN CONSIDERATION of [the Bank] agreeing to establish a Creditline on the Account Number and Type noted above (the “Account”) for the undersigned (“The Borrower”) and agreeing to lend to [the Borrower] up to the sum shown below as the Authorized Limit (the “Authorized Limit”), “the Borrower” and “the Bank” agree as follows:… [other terms set out]

    NO OBLIGATION TO ADVANCE – The Borrower acknowledges and agrees that neither the execution of this Creditline Agreement nor execution and delivery of any security shall bind [The Bank] to advance or re-advance any unadvanced portion thereof, but nevertheless the estate conveyed to [The Bank] by any security shall take effect upon the execution and delivery of such security.

    To grasp how in-your-face that is, ask a banker to add a clause to your mortgage that states that you are not contractually or legally obligated to make any payments unless you want to. 

    The larger obscenity and absurdity is likewise a naked-double-counting-fraud compounded by a bait-and-switch:

    2 (1) In return for the lender agreeing to lend the principal amount to the borrower, …

    6 (13) The lender does not have to advance… the principal amount …to the borrower

    It is as if the pretended-bankers and their lawyers and solicitors are laughing in our faces while they rob us all blind and then add insult to injury by snickering among themselves that it is not their fault that we are all so stupefied as to fall for such a transparent fraud.

    Another way to see it is that when it uses the financial securities / receipts as money in the financial markets, the pretended-lender has to declare whether or not the security was acquired by them through a bare assumption of liability versus an equity investment. Most briefly, it takes a billion dollars to make a \$1 billion equity investment – but any vagabond off the street can agree that they owe \$1 billion. That is why to obtain financial-market “credit” for a security the holder has to declare and disclose any liabilities they have incurred to obtain it. By getting the pretended borrower to agree that they are bound even if the banker chooses not to return or reinsure the credit, the banker falsely swears to the markets that it has not incurred a liability to obtain the security and (a separate lie) that it had positively and already made an equity investment of its own existing \$1 billion to obtain it.

    The wagering clause in the mortgage is in anticipation and support of a false claim that the security was given in exchange for an equity investment, and not a bare assumption of liability. It is offensive to the criminal law not merely because it is illegal by statute. It is offensive to the criminal law because it is racketeering.

    That is regardless how the private banks, and the people who own and operate them, individually and in the aggregate, systemically and systematically obtain all the wealth of the world without producing anything tangible. Whether it is done one mortgage at a time, or in a single \$200 trillion chunk or tranche, it is the same naked-tribute / transfer-of-wealth as pretended-business-custom business-model.

    An honest gangster and godfather says:

    First, as a sign of your respect, I want you to legally sign over everything that you own to me. Then I will decide what or how much, if anything, that I will give you in return. It’s a good deal. It’s an offer you can’t refuse.

    While a pretended-banker and their solicitors prefer a more polished and dignified managed-mental-illness approach that is consistent with the dignity and importance of their professions:

    8.11 The Borrower agrees that neither the execution nor registration of this mortgage …will oblige the Lender to advance any…money hereunder but the advance of money from time to time will be in the sole discretion of the Lender.
    But nevertheless the estate conveyed to [the bank/Lender] by any security shall take effect upon the execution and delivery of such security.

    The existential problem is that the system eventually stalls when there is insufficient remaining wealth to transfer to the private-bank asset-sink(s) as they get ever closer to owning it all (and however further laundered and concealed / put-out-of-reach). 
    People are habituated to use the term financial-collapse and so obfuscate the actual phenomenon and process which is fuel-starvation of the asset-harvesting-device.
    That is why it appears that a small number of financial-giga-corporations like blackrock appear to own and cross-own all the other relatively-smaller-but-still-major transglobal corporations. The machine eventually has to feed on its own (eat-its-own-young) to keep the tribute payments coming in as all the wealth becomes ever more concentrated.

    It cannot end any other way.
    At the end of the line, it becomes obvious and unavoidable that humanity has been played, and the winners of the game either come-clean and reach some kind of equitable arrangement with their victims, or they will use their ill-gotten wealth and power to play one faction of society against another to substantively mass-murder their victims as a preventive-measure or inoculation against retribution. 

    • Replies: @Yukon Jack
  58. Agent76 says:

    The global Bankster’s are aiming to go cashless for total world domination!

    Jun 10, 2021 Corporations buying neighborhoods so they can charge you rent forever

    Corporations like Blackrock are buying up residential areas, offering above asking price, so they can charge you rent forever. “You’ll own nothing and be happy.”

    Feb 7, 2022 Our National Curse: \$30 Trillion and Growing Fast

    We were warned. Encroachment on the Constitution is “like a cancer” – it “eats faster and faster every hour.” And today – few things exemplify this better than the insanely large and rapidly increasing national debt.

  59. This is what happens when TPTB appoint white hating-race pandering-tax cheats such as Maxine Waters to chair the House Financial Services Committee.
    This is just one of the far to many dumbass babbling buffoons grifting off the Government Plantation.
    Btw, if any of these so called financial geniuses are so smart, why in the hell are we so far in debt?
    Is this a Bernie Madoff comic con that nobody seems to check the actual balance sheet?
    Good lord, deliver us from Zioneausium.

  60. @A123

    The Unions (all of them) have all but destroyed the working class/blue collar workers. What’s left is a pyramid scheme of pandering anti-white hating Bolshevik grifters embezzling and extorting benefits from the public trust without their consent.
    Dozens of leftist shithole cities are on the verge of bankruptcy, only holding on by state and federal bailout money adding hundreds of billions more to the National fiat money debt.
    If these were corporations they would have gone under years ago and their CEO’s jailed for financial fraud.
    But no way, they’re run my POC/wiggers who are working for the good of the common dark folk.

    My ass they are, they’re criminals, all of them.

  61. MGB says:

    If inflation is being driven by supply chain problems and a labor shortage how is it that corporate profits are up?

  62. gotmituns says:

    I don’t read the illogical malarkey that women right.

  63. If the shortages are manufactured, which they are, then the subsequent and inevitible inflation is also manufactured. So what’s the motive, and who benefits? It all seems so criminal, because it is. Inflation is another form of taxation. The system is so corrupt it’s becoming hard to stand by and just watch it all continue. It’s obvious who the guilty are, and something drastic has to happen soon.

  64. @A123

    The unions pushed some corporations to seek labor elsewhere. China welcomed them in to get a good look at the US’s technology and to employ their peasants. It’s when you use extortion tactics on an entity that has options, they take one or more options. The unions succeeded because the mostly democrat establishment made a deal with them for votes. So, the political system was actually behind the jobs exiting the US and the knowledge base that accompanied it.

    The educational system in the US is turning out more morons with degrees in some form of basket weaving. The Chinese turn out Engineers and Scientists. The students don’t want to do any hard work that requires thinking. They want jobs as Wall Street hustlers, slimy lawyers, bankers, etc. They want a position that pays a fortune but produces hot air bullshit for the most part.

    To attempt to restart manufacturing, requires trained scientists, engineers, machinists, CAD operators and a host of other specialized skills that are frowned upon by the college age crowd – too difficult, requires math, only nerds do that stuff. Not happening in the near future unless the US wants to import Chinese corporations and the Chinese employees that do know how to produce.

    • Replies: @A123
  65. TheMoon says:

    Oh, are we still pretending the human filth in power actually care about normal people?

  66. Mefobills says:

    The big picture is that the FED represents the bad guys winning. The revolution was undone.

    Ellen posted this:

    And the experience of German banks during Germany’s late 19th century Hamiltonian ‘growth miracle,’ with which the German immigrant Warburg, himself a banker, was intimately familiar, appeared to verify this.

    Warburg, although a Jew, was not wrong. The Hamiltonian System was a variation of the American System of Economy invented in the Colonial System. It was ‘NATIONAL CREDIT’ issued by a State Bank, or Treasury. This credit was to channel into production and industry, and not into speculation. Germany and later the National Socialists ran the American System.

    England’s (((finance capitalism))) has always been at war with industrial capitalism.

    Before his 1804 murder at the hands of Aaron Burr, Alexander Hamilton (founder of the National Bank) had innovated a new form of political economy tied to large scale national credit generation via a nationally-directed banking system, internal improvements, and protective tariffs/bounties. This system of political economy was dubbed “The American System” by German Economist Friedrich List in 1827 and was used successfully to transform the republic from an underdeveloped bankrupt agrarian society in 1783 to an industrially advanced nation outperforming much of Great Britain within 40 years. Large scale projects like the Erie Canal, Chesapeake-Delaware Canal and a growing network of railways was instrumental in this process.

    Hamilton was not the inventor, it was the Colonials, especially those in Mass Bay, and lead thinker was John Winthrop…. but you get the point. Industrial Capitalism, aka the American System was invented in the Colonies, and then it won in the Revolutionary war, and then it was later defeated by (((BOE))) bank of england intrigue by 1912. And so, here we are today.

    This also from Brown:

    In a follow-up article, Hockett explained that the drafters of the Federal Reserve Act, notably Carter Glass and Paul Warburg, were essentially following the Real Bills Doctrine (RBD). Previously known as the “commercial loan theory of banking,” it held that banks could create credit-money deposits on their balance sheets without triggering inflation if the money were issued against loans backed by commercial paper.

    What the above is saying, is that if you have accounts receivables then you can use this paper to make new loans from the FED. Once the receivable money is collected, it pays off the FED loan, and then money disappears from existence, hence it is not inflationary.

    The Bank of Canada, during its Sovereign Money Era (1933 -71) would force the Trusts (something like a savings and loan) to make these types of loans. The Trusts were average people’s savings, which they pooled together. These were called factoring loans, and the interest collected from the loan would go to the average trust saver. These sort of loans were considered no or low risk, and hence they were reserved not for the banking class, but instead for average savers. In other words, average people got to benefit from capitalism.

    I noticed a lot of commentators are going hard against Brown, but her heart is in the right place. It is not her fault that the bad (((guys))) won out in their repeat attacks against the United States.

    The parasite always works in the monetary sphere, to then taint the blood stream of a nation. Once the blood is tainted, then they can maneuver prices and money, to take sordid gain and usury.

    Article 1 section 8 was a perversion pushed by Morris at Constitutional Convention, where he agitated against language to prevent Treasury issuing Bills of Credit. Bills of Credit fall under the Real Bills doctrine, where the money created is paid back by production, not speculation.

    This one slip-up by not stopping Morris undid the revolution and enabled subsequent privateers (The Fed especially) to create the credit for world wars.

  67. The QUANTITATIVE EASING highly accommodative monetary policy of the privately-controlled FEDERAL RESERVE BANK is entirely to blame for INFLATION.

    The Federal Reserve Bank is an Organized Crime Syndicate that is using monetary policy to inflate asset bubbles that mainly benefit the billionaires and the top ten percent loot holders. The billionaires and the top ten percent loot holders get the asset price inflation and regular Americans of modest means get the price inflation in housing, food, fuel, and much else besides.

    The Federal Reserve Bank is a privately-controlled financial entity that exists solely to funnel loot and power to the globalizer billionaire plutocrats and the multi-millionaires and the greedy, money-grubbing Upper Middle Class Snot Brats.

    The Federal Reserve Bank is an organized crime syndicate that works with other globalized central banker shysters to concentrate loot and power in fewer and fewer hands while using mass legal immigration and mass illegal immigration to attack and destroy cultural cohesion and nation-state sovereignty.

    The Federal Reserve Bank electronically conjures up dollars out of thin air and the common usage of printing for that act of electronic currency creation could also be called digitally creating the dollars.

    • Replies: @Chris Moore
  68. Katrinka says:
    @Dr. Doom

    One thing is sure…their fake FRNs will not save them. There will be nowhere to hide.

  69. Chris Moore says: • Website
    @Charles Pewitt

    Brown and all the other grifters are lobbying in this direction or that on how to spend all of this digital money. Like it just magically appears because the ZOG-US is so “indispensable,” and the only debate is allocation of our magical resources.

    The foundation for this “right to print” was in truth built on the blood, sweat and tears of the Christian White man. But the “White man” became corrupted by his own success, and allowed the ear-whispering ((Jew)) to worm his way into Western Civilization through an elaborate labyrinth of his usual Talmudist tricks (divide and rule, agitation, warmongering, pitting nation against nation and group against group, profiteering, bankster grifting, shyster grifting, polarization, etc etc ad naseum…)

    The problem is, the majority of Christian White men (and their offspring) are still under ((Jewish)) seduction, ((Jewish)) cult of Mammon, ((Jewish)) heroin, ((Jewish)) bread and circuses… and they’re not showing the least inclination of getting straight.

    When the effete, infiltrated element of Anglo puffs took control of the Civilization, as smart as some of them may have been, they allowed the worm into the apple. Now all of their “woke” multicult offspring are going to cling to their “right to print” unto the last sentient human freedom fighter on the planet, or until the “right to print” is pried from their cold, dead, clammy hands, or until (more likely) the Ponzi scheme collapses of its own weight and incompetence, at which point the “chosen race” element of the criminals will scramble headlong into Israel, awaiting the extradition squads or the missile strikes to their last known whereabouts, and threatening “Armageddon” if all of the “anti-Semitism” doesn’t cease immediately!

  70. JWalters says:

    I agree this is all manufactured. And I think most Unz Readers know that the US is controlled by a cartel of bankers, through controlling the establishment media and politicians. And that these bankers happen to be Jewish supremacists who view the 98% of non-Jewish Americans, as per the Talmud, as mere fodder for their manufactured war profiteering and financial crisis scams. Under the guise of their phony “War on Terror” they have subdued the Palestinians and destroyed the Middle East, and they are now trying to expand that to their phony war on “domestic terrorism” against Americans. (They have already achieved considerable subjugation of the Australians.)

    I think Ellen Brows also knows all this, based on comments in her book The Web of Debt, and her statement that the Fed should be nationalized. And she would agree with you that Wall Street speculators should not be the ones getting bailed out. Instead, that aid money should go to the real producers.

    But like most public figures, she is afraid of being too blunt about these criminals for fear of having her life ruined, and possibly being assassinated. So she is opting for talking about smaller steps that might get discussed by mainstream politicians, and which would be somewhat helpful if implemented.

    I am looking forward to the day when the rule of these thugs by bribery, blackmail, and murder is brought to a crashing end.

    • Thanks: Thomasina
  71. The FEDS only mandate is to transfer the wealth of the nation to the jews who control it. Any other claims are lies.

    • Agree: Yukon Jack
  72. anon[328] • Disclaimer says:

    “Not only will raising interest rates not fix the supply crisis, but according to Alasdair Macleod, head of research at GoldMoney in London, U.K., that wrong medicine is likely to trigger the next financial crisis. He thinks it is imminent and will start in Europe, where negative interest rates brought the cost of doing repo trades to zero. As a result, the European repo market is now over €10 trillion (\$11.4 trillion), far more than the capital available to unwind it (to reverse or close the trades). Rising interest rates will trigger that unwinding, says MacLeod, and the ECB lacks the tools to avoid the resulting crisis.” Is the solution to keep the same policy in place and end up with another 10 trillions in repo obligation?

    We can kick the can down the road for few more years. But the choice has to be faced one our another way and it seems that there are no tools left in the kit .

    Inflation will gut the paper money of wall street and force the trillions dollars ’s derivatives market explode . Something good will come out of it . It is not going to contribute a whole lot to the inflation experienced by the common folks on the main street .Doing nothing will encourage the corporations to create more derivatives and increase the value of the stock. But that is unsustainable .

  73. @anon

    Hate to break it to you, it will 100% affect main street too. Guess where all the pension money is? Where the SSI money is? Where your IRA and 401K money is? If wallstreet implodes, so does all the money in it.

    That is why all the people with disposable income has been buying up real estate as fast as they can to hedge against the coming crash.

    • Replies: @Anon
  74. Pancho says:

    Why do you think the Fed wants to save Main Street?

  75. Franz says:

    I see you got an “A” in your community college Econ class.

    Never took an econ class or went to college.

    I heard a speech given by Murray Rothbard once and he was pointedly asked what, seriously, WHAT he would have done after 1929 when the system did not self-correct.

    He said he’d a run the presses full time till the fucking market got back up. He was not talking technical, he was saying what anyone could guess. Sometimes liquidity is more important than models and theories.

    I worked in boilers and saw one dry fire, and the mess it made taught me there are times you open valves no matter what the readout says.

  76. Anon[178] • Disclaimer says:
    @Astuteobservor II

    I am not disputing you that the401 K , pensions , and other pension funds will all get affected . But keeping the interest rate at this level will not and never remove that threat . It’s built on bubble . But do you have a solution that will stop the Wall Street racket and the expanding bubble and thus prevent the much worse version of what you are saying to go happen now from rising interest rate ?

    • Replies: @Astuteobservor II
  77. @Anon

    There is no solution to this problem. You just have to protect your self as much as you can. Nothing more.

    • Replies: @anon
  78. Anonymous[373] • Disclaimer says:

    This is a sort of make shift banker fiscal policy. Banks shall direct the placement of funds into the hands of people who will use them as directed. In this case to produce real goods and services and not just the highest return on investment. This is necessarily implies satisfying a positive profit condition on the loan rather than seeking to achieve maximum profit.

    Banks can be viewed at least two ways. One is facilitators of production as discussed in the article above or as profit making businesses which make loans to secure maximum profit. Often speculative loans will offer maximum profit which will draw banks away from productive loans.

    The real problem is that it has never been clear what banks are for. In some ages they have been primarily facilitators of real investment and in others vehicles for speculative profit making financing whatever will turn a profit.

    If banks are viewed as facilitators of production then they are essentially instruments of fiscal policy and must be clearly viewed as such. Note that in fiscal policy considerations we have the equation that S = I or savings equals investment. Savings are merely goods allocated to investment service and the purpose of creating savings is investment. Banks, in theory, allocate savings to particular investment projects.

    But modern banks both create money and direct it to all sorts of nonproductive investments. It is clear that the basic problem of our banking system is the inability to be clear as to what it is for. Today we can say that in place of S = I we have d(M/P) + S + T = I + OA where changes in real money balances including money creation, savings, and taxes are allocated among investment and other allocations which may include government expenditures for sundry things and speculative investment, SI, OA = G + SI. We can view OA then as consumption excluding concepts of government investment and separate from direct consumption out of income.

    Thus banks in our age do not just finance investment but consumption of many kinds as well. It is the issue of bank finance of additional consumption over direct consumption from income that is really the issue that needs to be addressed.

    Your proposal amounts to forcing the real investment to consumption allocation of banks towards real investment. Such efforts need to be backed up with the basic proposition that banks are financing too much consumption of all kinds and are starving the economy of real investment. Spending too much on consumption has always been the road to ruin and the banking system is clearly facilitating a continuing trip towards that ruin.

  79. RestiveUs says:

    But isn’t “more money chasing a (slightly) decreased amount of goods” just a subset of supply & demand? I have a hard time grasping the direct connection between money supply itself and prices. How does the money supply manifest itself to those who set prices? Does it translate into more customers showing up to buy their goods? Again–supply & demand. I have no problem visualizing greed as a prime motivator of inflation. But greed doesn’t accomplish much without demand.

    • Replies: @RoatanBill
  80. Katrinka says:

    Buy some real estate outside of the U.S. I purchased mine in Panama, but there are many other good options out there. Put your money into tangible assets.

  81. A123 says:

    The unions pushed some corporations to seek labor elsewhere

    While unions are corrupt, they are not the largest problem.

    Multinational corporations sought to:
    — Weaken labor in the U.S. via immigration.
    — Break core industries via uneven “free trade” deals that disfavored the U.S.
    — Obtain a more pliable & submissive work force via outsourcing.

    The educational system in the US is turning out more morons with degrees in some form of basket weaving. The Chinese turn out Engineers and Scientists.

    U.S. young adults are willing to get a STEM degree if they can receive the STEM job and a solid STEM wage. They will not do it to compete with an imported H1B body that works for 1/3 of the going wage. Wiping out entry level jobs has an disastrous impact on the industry as a whole.

    China does a terrible job turning Engineers and Scientists out of their universities. Their best students come here and use “diversity” to displace native citizens. Part of MAGA Reindustrialization is fixing education. Forcing schools to take 80%+ of their students from native citizens is one option. A heavy government surcharge of \$100,000+/yr for a student visa is another option.

    PEACE 😇

    • Replies: @RoatanBill
    , @Rosie
  82. @Justvisiting

    The world economies are circling around the event horizon.

    Into the black hole we go.

    That is an excellent analogy in which I agree is very possible, we’ll see how it goes down (pun).

    Fear of Missing Out (FOMO) can change to Fear of Losing Everything (FOLE). which is a soft landing is highly improbable. The market is ruled by greed which turns to fear and dreams of getting rich can suddenly change into fear of living homeless.

    There is this chart people ought to pay attention to, junk bonds fell first before the 2020 stock selloff and it seems to be happening again.

    junk bond sell off gap 2020 and 2022 chart
    expect sudden downside gaps in the near future as interest rates surge higher

  83. anon[534] • Disclaimer says:
    @Astuteobservor II

    You can’t protect yourself as long as you are American citizen .Asset abroad also will be sujected to seizure by the creditors countries when this blows up and China comes demanding to be paid back .

    • Replies: @Astuteobservor II
  84. @RestiveUs

    Suppose you need a new car. You go shopping and discover that the one you want is \$50,000. You spend an hour trying to get a better price but the dealer won’t go below \$45,000. Too much you say and leave. The next day you win the lottery. You return to the dealership and purchase the car with added options and don’t bother dickering on the \$60,000 price.

    You’d like a new TV, but the one you want is expensive. You get a stimmy check from Uncle Shmuel and rush to the store to purchase it.

    You have just added to the pressure that causes price inflation. Nothing but the quantity of currency has changed, but that change affected the psychology of the transactions.

    In the case of the TV, the merchant suddenly realized that he’s selling lots of TV’s and his inventory is getting short. He increases the prices thinking the market will pay the higher price to increase his profit. He just caused price inflation using the signal you supplied.

  85. Publius 2 says:

    Indeed, the founders would call what we call money today “counterfeit.”

  86. Publius 2 says:

    The people opposed the 2008 (((bailout))).

    In fact, the people have voted for none of what’s been (((done))) to us since 1913.

    In 2008, when both establishment presidential candidates claimed the bailout was needed “because you won’t be able to get a car loan,” it became obvious there is a (((uniparty))).

    This world is hard to accept for those of us who understand (((everything))).

    PS Ron Paul won in 2008.

    • Agree: Truth Vigilante
  87. @A123

    The largest problem in the US is the Fed Gov. They negotiate the trade deals. They charter the corporations. They write the tax laws. They determine the immigration numbers. They ignore the extortion unions use to get their way. The list is near endless.

    And yet, the people vote to maintain this system. They recoil at an anarchist like me.

    As for students opting for STEM degrees, that’s hilarious. The average student is as dumb as a stump, having been pushed from one grade to the next without learning much. It’s the rare individual that is self motivated to learn that ends up the scientist or engineer in the US. The masses are too stupid to do simple arithmetic.

    The US population gets what it deserves because they demand to be hosed over time and time again. They are their ultimate worst enemy.

    • Agree: Realist
  88. @anon

    lol, when did national debt become personal debt? seizure? please.

    • Replies: @azureamaranthine
  89. anon[534] • Disclaimer says:

    Winners make laws . You follow it. So many examples America has set in for others over decades – all have sounded same to those victims.

  90. The “Fed” can only save anything else by its own annihilation. Anyone who says anything else is either an idiot, a willing stooge, and/or evil. Pick your poison.

    • Agree: Towey
  91. @Astuteobservor II

    What did you think inflation was? Taxes?

  92. Turdeau ignites bank run:

    Canada’s Deputy Prime Minister says, under the Emergencies Act, banks can immediately freeze or suspend bank accounts without a court order and be protected from civil liability.

    Stopped by the bank on my way home to request all my funds only leaving enough for direct withdrawals like insurance. I overheard the couple in front of me, eastern European, requesting hundreds of thousands as well. Just between two clients, close to 1/2 a mil.

    Now that Canadians have seen how quickly the banks rolled over for Trudeau and instantly froze accounts (that were just suspected of donating to the protests, didnt even have to be proven) at his request. They have totally lost faith in the whole system.

    Trudeau Robbing The Truckers – Freezes Bank Accounts | Bank Run CANADA
    308 views Feb 15, 2022

    Like I said, the unwind is not going to be pretty, governments are not reasonable, they are criminal operations pretending to be your friend. This latest “unintended consequence” by the heavy hand of government is typical – they can and will seize bank accounts under emergency powers acts – laws that they wrote – emergencies that they have created.

    When people hoard cash – withdraw from banks – that is a giant step toward a depression.

    • Replies: @Truth Vigilante
  93. Franz says:

    Debt must be repaid…

    …By people who contracted it.

    I don’t know anyone who asked for half the economic refugees in the world to be dumped here. And productive Americans are supporting them (for life?) while elites ask for more.

    When the wall came down and the Soviet Union packed it in, everyone wanted the troops to come home the bases shut and the warships mothballed. Instead all of it was cranked up.

    American debt is called odious debt which should NOT be repaid. We have an alien regime spending itself into the stratosphere. Ordinary Americans are not responsible for one penny of it.

    Cut the regime off, exile it to Patagonia, and start over.

  94. @Yukon Jack

    That info of yours is much appreciated and let’s hope that run on the banks in Canada escalates and brings on a banking crisis that brings down the government of Justin Turdeau*.

    (Thanks also for correcting me on the spelling of his name – I’ll be using that henceforth).

    Meanwhile, things are not standing still here in Australia. I live in NSW, the most populous state of Australia and most of the Covid restrictions were already relaxed some months ago.
    Starting next week the need for scanning a QR code will be dropped and all indoor mask mandates will be eliminated (except for public transport, air travel).

    And there’s a reason for this. The establishment are running scared because the push-back has been tremendous and the ruling class are being forced to ease the tyranny rather than risk an insurrection.
    Hopefully soon, the last remaining vestiges of Covid tyranny will also be discarded in my state.
    And, as goes NSW, so goes the rest of the country eventually.

    Not to be outdone by the Canadian truckers convoy, the biggest convoy/crowd to ever gather on our nation’s capital, descended some days ago:

    Here’s a photo from that crowd (you can make out our parliament house around one kilometre/over a half mile in the background):

    There’s a Federal election due in Australia in the next few months and the ruling party is done for. Unlike Canada where the opposition party is at least voicing criticism of Tirrdeau’s Covid authoritarianism, our opposition party is also bought-and-paid-for by the Zionist Usury bankers that perpetrated the Covid psyop.

    The good news is that, for the first time post WWII, we have a viable third party that is likely to get a considerable chunk of the vote and has attracted more members than the two party duopoly (think Ross Perot but on steroids).

    Bottom Line: We have a preferential voting system here in Oz, unlike the ‘First past the post’ system in the UK/U.S.
    So, even if this third party doesn’t get an outright majority, it may well prevent either of the two major parties from holding power individually and they’ll thus be forced to form a minority government in coalition with this third party – called the United Australia Party.

    Watch this space. Things are moving fast here in Oz and we are drawing inspiration from our Canadian brothers and sisters.

  95. BBQWhales says:

    Uh, have you seen the Size of the Debt. When they start paying real interest rates on that borrowed money. The \$300 Billion annual interest payments will become \$600 Billion, \$1.2 Trillion, \$1.8 Trillion. We roll over most our own debt in 4 years – short term bonds. Not bad with a \$4 Trillion annual budget and \$1 Trillion of it borrowed. The Fed has painted themselves into a corner. This is basic Economics 101 and 7th Grade math. When asked about printing money to create a mountain of debt, the Fed responded – “Its not printing money, tis QE – Quantitive Easing”. – 12 Years later, they have finally found themselves at the edge of a cliff and no parachute. There is one, but their clever not smart. 🙂

  96. Barr says:

    Stock is responding to crisis in Ukraine . It’s non existent crisis but it is responding .
    May be everything that Wall Street responds to now is another new surrogate marker for the basic unsustainable enduring wrong headed practice by Wall Street , Banks and by Fed .

    It is noteworthy that Fed in November Dec while pumping 300-400 billions was simultaneously sending the messages of interest hike .

    Fed needs to keep its mouth shut and publish what it has done after the FOMC . This warning amounts to insider trading and encourages manipulation of the stock market
    It should stop this racket of warning the corporations that free money will stop next week or net month or next year .

  97. @Ralph B. Seymour

    I agree with this assessment:

    I suspect that the huge debt destruction associated with an interest rate hike will cause USD deflation.

    Therefor what might happen if the Fed jacks rates to the moon to stop inflation is massive debt default, and everyone is going to need dollars, because debt is denominated in dollars.

    Basically everyone in debt is making a bet, that they can service the debt payments. I have seen many people lose their homes because they lost that bet. Say you have a \$1500 or \$3500 a month mortgage payment on a 30 year loan. You must have 360 of those payments to pay off that loan, and many people have a good chance of losing their income in a 30 year period.

    So even in good times many people can not service debt. This can be catastrophic, but when you buy a median sized home for \$350,000 that is the risk. For many people \$350K is a shitload of money that they don’t have, thus the need for the loan. So taking a loan is a huge risk unless you have other assets or family or friends you can tap.

    Now imagine at the end of the debt cycle, interest rates go lower than any other point in history, I believe mortgage rates got less than 3% not to long ago. This suckered in a whole butt load of people to get in debt to an even greater principle amount, meaning they now could afford a \$500,000 home. So now they owe half a million and it is the same bet, they must have the payments or they are screwed.

    But in my hypothetical scenario, at the end of this long cycle, at the top of the wave, stocks in the stratosphere the Fed raises rates and causes the biggest crash in history. When the stock market crashes so does real estate, and now all those who got suckered in at record high prices still owe on that \$500K home, even though debt deflation is knocking the shit out of the price as rates go up. So now all those people will be trapped underwater on their mortgage. This has happened before and can happen again, except this next time prices may not recover – a Japan style deflation in real estate prices that goes on for decades.

    Many people even got home equity lines of credit, putting them further and further into debt. They went along with this because they are convinced real estate always goes up. But that is only an assumption being made late in the cycle, what happens if real estate deflates? They still owe.

    So what causes the crash ultimately? When their is so much debt and we go into some big recession and the jobs dry up and people can’t get the money they need to make payments. As debts pile up, eventually debt becomes unstable, their just isn’t enough productivity needed to service debt and then out-of-the-blue comes an instability that ends the whole system like 1929 on steroids. But the truth is 450 trillion of debt is probably unsustainable.

    Another thing, I used to build houses and I can tell you house that go for \$500,000 and higher I built for \$30,000. So from my eye, those homes are way the hell overpriced even at today’s elevated lumber prices. So buying at inflated priced home from a culture that is massively speculating in real estate is a big risk, you are simply overpaying by a factor of 10. That \$500,000 home only costs \$50,000 if you build it yourself.

    Bottom line, if this bubble ever pops the result could be catastrophic deflation. And final payment is cash, US Dollars. Everyone is going to need dollars they don’t have. Like they say, cash will be king. I know this sounds like wild speculation, but I do believe there is a real possibility of a great unwind and I believe we are there now, with the Fed trapped and forced to raise rates. In the Great Depression many homes sold for less that 10 cents on the dollar. Maybe it will happen again and perhaps that is the elite’s game plan, pull the rug out and cause the need for a grand reset.

    • Replies: @Rosie
    , @Ralph B. Seymour
  98. Rosie says:

    The unions pushed some corporations to seek labor elsewhere

    Won’t somebody please think of the corporations?

    Seriously, not too long ago, one of these inflation hawks said that student loan forgiveness would be bad because it would aggravate inflation.

    OK, but why stop there? Get rid of bankruptcy and bring back de jure debt slavery. If people having disposable income is a bad thing, surely we can think of numerous ways to make people even more strapped for cash. At which point, we’ll all be better off because we’ll have less inflation, or something.

    I get that people who work hard and save all their lives feel they deserve to get ahead, but noone is entitled to lower prices on the backs of people who were victimized by predatory lenders before their cerebral cortex was finished growing, people who invested themselves in careers that have been destroyed by immigration, etc.

    I’m an amateur bullshit artist, not an economist, so I may be missing something, but something stinks about all this inflation hawking. It smells like greed, selfishness, pitiless indifference to one’s fellow human being…

  99. Rosie says:
    @Yukon Jack

    Many people even got home equity lines of credit, putting them further and further into debt. They went along with this because they are convinced real estate always goes up. But that is only an assumption being made late in the cycle, what happens if real estate deflates? They still owe.

    And bad assumptions aren’t the only thing driving this. If you’re already house poor, you’re going to need home equity loans to finance repairs. Add to that the fact that people’s jobs are not as secure as they once were. Suppose you rack up credit card debt to make ends meet while you’re unemployed. What are you going to do? Refinance or get a cash out home equity once you get a new job, of course.

    Another thing, I used to build houses and I can tell you house that go for \$500,000 and higher I built for \$30,000. So from my eye, those homes are way the hell overpriced even at today’s elevated lumber prices. So buying at inflated priced home from a culture that is massively speculating in real estate is a big risk, you are simply overpaying by a factor of 10. That \$500,000 home only costs \$50,000 if you build it yourself.

    Worse still, builders refuse to build normal-sized houses anymore. McMansions are more profitable. Land is all locked down by restrictive covenants that disallow the building of small and/or multiple-family units that people can actually afford and might help them earn a little extra. Rental profits are for the elites only, you see.

    The truth is that the 30 year mortgage single family model no longer makes sense in the globalized gig economy. The price of houses is going to have to come down. Otherwise, the banks are going to own everything and the rest of us will be serfs. It seems to me inflation (reducing the real price of homes) is better than deflation (reducing the nominal price of homes).

  100. @Yukon Jack

    Why wouldn’t they do it?

    This works like a charm for those in the know; there is no downside for them.

    While everyone saddled with debt goes bankrupt.

  101. The Fed is but one of the many weapons of the international crime syndicate I call the Money Master Mafia. They seek to enslave and destroy the masses, so talking about how they could do this or that to help those they seek to dominate and destroy is like making observations or suggestions about how the fox could be more kind to the hens. The Fed and the Money Master Mafia must die, or those of us who survive the kill-shots, etc., will be subjected to the most degrading, complete slavery ever seen.

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The Shaping Event of Our Modern World
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