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The Fed Isn't Fighting Inflation, It's Fueling It
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The media would like to believe the Fed is doing everything in its power to fight inflation, but it’s not true.

Yes, the Fed raised rates by 50 basis points in May and, yes, the Fed is trying to sound as “hawkish” as possible. But these things are designed to dupe the public not to reduce inflation. Let me explain.

The current rate of inflation in the US is 8.6%, a 40-year high.

At its May meeting, the Fed raised its target Fed Funds Rate to 1%. Here’s the scoop:

“The Federal Reserve recently announced that it’s raising interest rates by half a percentage point, bumping the federal funds rate to a target range of 0.75-1.00%.” (The Spokesman-Review)

Got that? So the Fed’s rate is still a measly 1%. That’s what the media is trying to hide from you, and that’s why you might have to read 9 or 10 articles before you find a journalist who provides you with the actual rate.

Why are they hiding the rate?

Because the rate is 7.6% below the rate of inflation, so it doesn’t do a damn thing. It’s another public relations travesty dolled-up to look like serious monetary policy. But it’s a joke, and you can see it’s a joke.

Think of it like this: If I loaned you \$100 at 1% interest– but inflation was running at 8%– I would lose 7 bucks per year, right?

Right. And that’s what the Fed is doing. When interest rates are set below the rate of inflation, then the Fed loses money on every loan. In other words, the Fed is providing a subsidy to the banks for borrowing money. Have you ever heard of anything so ridiculous?

How would you like a deal like that? How would you like it if the Fed paid you interest on your credit card debt? You’d probably like that, right? But—if you were honest with yourself—you’d admit that it was a “gift”, because that’s what it is, a gift. The big banks are getting another handout from Uncle Sugar. That’s the whole deal in a nutshell.

Meanwhile, you and I and the other 300 million serfs, continue to pay a hefty 18% to the banks that are being subsidized by the Federal Reserve. Sound fair?

So, how much would the Fed have to hike rates if it really wanted to do its job? Check out this clip from an article at the Chicago Booth Review:

“The usual wisdom says that to reduce inflation, the Fed must raise the nominal interest rate by more than the inflation rate. In that way, the real interest rate rises, cooling the economy.

At a minimum, then, according to the usual wisdom, the interest rate should be above 8.5 percent. Now. The Taylor rule says the interest rate should be 2 percent (the Fed’s inflation target), plus 1.5 times how much inflation exceeds 2 percent, plus the long-term real rate. That means an interest rate of around 12 percent. Yet the Fed sits, and contemplates at most a percent or two by the end of the year.” (“Why Hasn’t the Fed Done More to Fight Inflation” Chicago Booth Review)

So if the Fed was serious about fighting inflation, they would have raised rates to roughly 12%. Instead, they have decided to use their allies in the media to pull the wool over everyone’s eyes. That’s what’s going on. It’s another big snow-job. Here’s more from the Chicago Booth Review:

“… the inflationary shock we just experienced, whatever its source, together with today’s low interest rate, gives us a large negative real interest rate. That negative rate is itself additional “stimulus”: it raises output and lowers unemployment. Higher output and lower unemployment, however, raise inflation even more, relative to the large past inflation. Higher inflation means an even lower real interest rate, and more inflation still, in a never-ending spiral—until the Fed gives in, raises interest rates to much above inflation, and contains the mess with a large recession.” (“Why Hasn’t the Fed Done More to Fight Inflation” Chicago Booth Review)

So, when the Fed’s rate is lower than the rate of inflation, then inflation rises, the opposite of what we want to achieve.

Bottom line: Ultra-loose monetary policy fuels inflation and creates gigantic economy-destroying asset bubbles that wipe out trillions and ruin lives. Sound familiar?

It should. We’ve been through this drill many times before.

Here’s something else you should know: The Fed has had its foot on the gas since Lehman Brothers blew up in 2008. That’s when Fed Chair Ben Bernanke dropped rates to zero and put the printing press on “full throttle”. From that point on, the Fed has been flooding the zone with low-price liquidity that has inflated the biggest asset-price bubble of all time.

Why does everyone need to know this?

Because inflationary pressures are forcing the Fed to raise rates, but even the slightest rate-hike can touch-off firesales that impact other shadow lenders that are equally overextended triggering a daisy-chain of defaults that can domino through the system causing another financial crisis. In other words, the asset-price bubble the Fed has created with its low-rate mania is so gargantuan and unstable, that any tightening of policy can ignite a system-wide meltdown. That’s why Powell is so skittish about raising rates. It’s because he doesn’t know who the weak players are and where they are hiding. If one giant investment bank– that is drowning in red ink– suddenly goes belly-up after interest rates rise, then that bank is going to take down 20-or-so counterparties along with him. That’s the problem with today’s grossly-entangled market; the web of debt stretches across the entire system endangering even the stronger players. The last thing Powell wants to do is prick the bubble the Fed has been inflating for the last 14 years.

Did you know the Fed has purchased \$9 trillion in mostly US Treasuries and Mortgage-Backed Securities since 2008?

What that means is that stock and bond prices have risen not on their growth-potential or due to basic supply-demand dynamics, but because the Fed has been actively distorting market prices to enrich its investor friends. This is how wealth is transferred to other members of the investor class, not in great bags filled with money, but through the underpricing of credit that is further amplified through dodgy debt instruments. That’s the name of the game.

Recently, the Fed has indicated that it wants to reduce its balance sheet to a more manageable size. The problem is that– just as stock prices rose when the Fed purchased USTs– so too, they will fall sharply when the Fed sells. And, that is precisely what has happened everytime the Fed has tried to shrink its balance sheet; stocks have fallen off a cliff. So, while the Fed has succeeded in pushing stock prices higher, (by purchasing \$9 trillion in financial assets), it will not succeed in keeping stocks high while rolling off its prodigious asset-pile. In other words, the Fed will not be able to repeal the laws of physics.

Do you remember The stock market crash of 2020? Do you remember how it ended? Here’s a little background from an article at The Balance:

“The stock market crash of 2020 began on Monday, March 9, with history’s most significant point plunge for the Dow Jones Industrial Average (DJIA) up to that date. Two more record-setting point drops followed it on March 12 and March 16.

The stock market crash included the three worst point drops in U.S. history. The drop was caused by unbridled global fears about the spread of the coronavirus, oil price drops, and the possibility of a 2020 recession.

Although the 2020 market crash was dramatic, it didn’t last. The stock market experienced a surprising recovery, even as many areas of the U.S. economy continued to experience trouble…” (“How Does the 2020 Stock Market Crash Compare With Others?“, The Balance)

So, stocks plunged thousands of points in response to a fast-spreading pandemic that was shuddering businesses and decimating economies around the world. The media dismissed the sell-off as a “panic” but that cretainly wasn’t the case. Investors rationally concluded that economic activity was going to be gravely impacted by the virus and simply sold while they could. With no sign of a remedy or vaccine, there was no reason for optimism.

But why did the sell-off stop? That’s what we want to know. What caused investors to rethink their approach and dive back into the market headfirst?

The Fed stopped the selloff. And the announcement that stopped the bleeding was probably the most extraordinary event in the Central Bank’s long and checkered history. Because, in essence, what Fed chairman Powell said was that he would put a bottom under stock and bond prices to prevent them from falling too far. Think about that. Here we had the Fed– who poses as an impartial regulator of market activity– telling us to our faces that he plans to intervene whenever he thinks prices do not align with his expectations? In other words, the Fed promised to prevent the market from functioning according to normal supply-demand dynamics. The free market had to be sacrificed in order to prevent the inevitable losses from the pandemic. Naturally, investors loved hearing that the Fed “had their back” and stampeded back into the market money-in-hand.

And how did the Fed’s announcement impact the market?

Let’s look at the Dow Jones Industrial Average during that period.

On March 16, 2020, the Dow ended the session posting a close of 20,188.

Two years later on Jan 4, 2022, the index closed at 36,799.

In other words, the Fed’s promise to support stock prices triggered a 16 thousand point rise in the Dow in the middle of a pandemic.

Would you call that manipulation?

I would.

At the same time, the Fed expanded the range of its purchases from risk-free” Treasuries and government-backed MBS, to any manner of dodgy corporate debt or ETF that needed propping up to support the broader market. This unprecedented and dramatic intervention dispelled whatever confidence any objective observer might have had in US markets in which the manipulation is so in-your-face, that one cannot avoid the foul stench of corruption that stretches from “sea to shining sea”. The Fed has in fact become a price-fixing agency that has abandoned any restraint whatsoever. Former Fed governor Kevin Warsh anticipated this development years earlier and delivered a warning that was published in the Wall Street Journal. Here’s what he said:

“The Fed’s increased presence in the market for long-term Treasury securities also poses nontrivial risks. The Treasury market is special. It plays a unique role in the global financial system. It is a corollary to the dollar’s role as the world’s reserve currency. The prices assigned to Treasury securities–the risk-free rate–are the foundation from which the price of virtually every asset in the world is calculated. As the Fed’s balance sheet expands, it becomes more of a price maker than a price taker in the Treasury market. And if market participants come to doubt these prices — or their reliance on these prices proves fleeting — risk premiums across asset classes and geographies could move unexpectedly.” (“The New Malaise”, Kevin Warsh, Wall Street Journal)

Once again, the Fed’s balance sheet is currently \$9 trillion which means that stock and bond prices are probably inflated by two or three times that amount. Why do you think stocks continued to hit new highs in the middle of a pandemic while employment, production, manufacturing, services and growth were are on life-support?

Answer—The Fed. The Fed promised to support the markets, and investors responded by buying up everything that wasn’t bolted to the floor. The plan worked like a charm.

Here’s something you won’t believe. The New York Fed– which has its own trading desk– released its annual report that includes one eye-popping paragraph “that took our breath away,” says Wall Street on Parade editor Pam Martens. Here’s more from Marten’s article:

“It reveals that the New York Fed’s trading operation … currently owns 38 percent of all outstanding U.S. Treasury Securities with 10 to 30 years remaining until maturity….

There are multiple reasons that this detail takes our breath away. First of all, the U.S. Treasury market is massive – at \$22.6 trillion as of year-end 2021. That any one entity controls a big chunk of the market is deeply concerning. (The same report showed that the New York Fed’s trading desk owned 25 percent of all maturities of outstanding Treasury debt.)

The New York Fed’s trading desk owning 38 percent of the 10-30 year Treasuries is also deeply alarming because it is that maturity range that has a dramatic impact on the interest rate of the 30-year fixed-rate residential mortgage, the most popular mortgage among first-time homebuyers historically. It means t hat the New York Fed’s gobbling up of these 10-year U.S. Treasury Notes and 30-year U.S. Treasury Bonds, to the tune of 38 percent of the market, has created artificial demand for these instruments that would not otherwise exist. That, in turn, means that mortgage rates have been artificially held lower – much lower – than they would otherwise have been….” (“New York Fed Stuns with New Report: At Year End Its Trading Desk Owned 38 Percent of All 10-30 Year U.S. Treasuries”, Wall Street on Parade)

So, interest rates are rigged? Is that what she’s saying?

Sure looks like it.

If—as Marten says—“the New York Fed…currently owns 38 percent of all outstanding U.S. Treasury Securities with 10 to 30 years remaining until maturity”, then the rates on those bonds are being suppressed by an entity that is supposed to be a neutral referee not a market participant. And the implications of that are huge because these rates effect everything from buying a house to purchasing a car. But what’s more disturbing is how this activity relates to the Kevin Warsh comment:

“The Treasury market …plays a unique role in the global financial system…. The prices assigned to Treasury securities… are the foundation from which the price of virtually every asset in the world is calculated.”

What happens when Central Banks and investors around the globe realize that the world’s premier risk-free asset—the 10-year UST—is built on a foundation of pure sand? Wouldn’t that put the Treasury market and the US dollar in the crosshairs at the very same time?

It would.

Then why would the Fed engage in such risky activity?

We have to assume that they want to keep interest rates artificially low whatever the cost.

But, why?

The Fed is trying to preserve the zero-rate regime so it can continue its ultra-accommodative credit expansion that allows its wealthy constituents to rake in bigger profits than ever before. That appears to be the goal. But as inflation rises and the massive asset-price bubble grows more unstable, it’s only a matter of time before the bubble bursts and all hell breaks loose. As economist Ludwig von Mises said:

“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”

​Well said.

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  1. Renoman says:

    The only thing more crooked than the Fed is Zelensky! America is just a steaming pile.

    • Agree: JR Foley
  2. Notsofast says:

    nationalize the fed, seize it’s assets, do a forensic analysis of it’s books, jail all the banksters involved, seize all of their personal assets. regain control of money printing and stop paying interest on our own money. back the new dollar with the natural resources of the country which should also be nationalized.

  3. Wilson says:

    Don’t think it just about the banks making money, how how can the federal government pay a higher interest rates on its huge liabilities and spending? The whole economic system has failed, inflation is a slow collapse as opposed to a sudden one.

    • Replies: @Chris Moore
    , @follyofwar
  4. Nice article indeed. I would like to make one nuance though. It is a bit hard to wrap your head around it but it is true. The author states

    ”Think of it like this: If I loaned you \$100 at 1% interest– but inflation was running at 8%– I would lose 7 bucks per year, right?

    Right. And that’s what the Fed is doing. When interest rates are set below the rate of inflation, then the Fed loses money on every loan.”

    The part if you loaned \$100 is true. It is not true that the Fed is losing money. All banking is all about nominal rates. If the Fed loans \$100 for a year with inflation running at 50% per year and they get back \$100.001 it still books it as a profit. If the price of the bond craters, they just hold it to maturity and still (double entry) bookkeeping wise all is fine.

    That is also why there must be no deflation at all costs. This seriously screws up the double entry bookkeeping (asset and liability) of (cenral) banks even though it is good for the people like you and me.

    Of course for us ”normal people” who save this is a disaster but who cares (besides us)?


    • Agree: meamjojo
  5. @Notsofast

    Who would dare to put a bell around the neck of a cat?


    As Prof. Michael Hudson teaches us, North American and Western European economies have essentially become the economies of Finance, Insurance and Real-Estate, which require constant inflow of cash either from foreign nations or from their own Central Banks.

    When foreign investors abandon American treasury securities, the U.S. Federal Reserve steps in and buys American treasury securities back in order to keep American economy sailing forever!

    America was founded by White European Christians.

    One common denominator amongst all Christians is GREED — everlasting greed.

    American media tell us that, “Greed is good for lack of a better word.”

    Jews are — historically — cunning manipulators and White greedy Christians of America naturally hire Jews in the top administrative positions in order to run American economy, American foreign policy, American legal system, and American academia.

    When things go bad, American White greedy Christians scream out loud that, Jews are responsible for the bad.

    But, Jews are similar to rats who jump off the ship when they sense that the ship is about to sink.

    And, no one goes to prison for ruining the entire economy.

    • Agree: JR Foley
    • Thanks: Mario Partisan
    • LOL: CSFurious
    • Troll: meamjojo, Katrinka
  6. @Face_The_Truth

    Imagine posting that blasphemous kikery here and expecting anyone to believe you. Get while you still can, christkiller. It won’t save you from us, but it’ll let you live a bit longer.

    • Agree: Kim, CSFurious
    • Thanks: Katrinka
  7. Chris Moore says: • Website

    Don’t think it just about the banks making money, how how can the federal government pay a higher interest rates on its huge liabilities and spending? The whole economic system has failed, inflation is a slow collapse as opposed to a sudden one.

    The Fed is just a money-laundering operation for the Bankster/Warfare/Welfare state. The MSM is the Propaganda Class that covers for the racket.

    First the people of the US were the mark, then NAFTA, then NATO… it’s one big, ever expanding Ponzi scheme built on debt. The US used to hold a credit card with an unlimited line of credit based on the Petrodollar and then the Fed/Bankster managed “globalization” agenda.

    The war by Russia in Ukraine was the first big pushback. They’ve drawn their line and basically announced the Ponzi won’t be expanding into territories they control, and alliances they participate in, which includes China, and big chunks of the Global South.

    The Great Reset is one of the latest efforts to by the Western ruling class salvage the Ponzi, but it’s failing. The grifters have tried every trick in the book, but none are working anymore.

    The “liberals” and neocons thought they were so smart they could pull the wool over everyone’s eyes for eternity. Pure insular, ruling class, echo chamber chutzpah. Mindful of the Ancien Régime.

    “They had learned nothing and forgotten nothing.”

    • Thanks: Jim Bob Lassiter
  8. Chris Moore says: • Website

    When things go bad, American White greedy neocon ((Christians)) like Trump scream out loud that shitlib ((Jews)) like the ones running the Democrat Party and the Biden admin are responsible for the bad. Meanwhile, they both keep funneling US taxpayer money hand over fist to Zion and themselves. Good cop/bad cop. Nest of vipers. Den of thieves. Synagogue of Satan.


    • Replies: @Robert Dolan
  9. Notsofast says:

    cats kill rats, don’t bellingcat.

    • LOL: Mario Partisan
  10. JR Foley says:

    Could “Virtual Reality Banking” be the solution. Instantaneously erase 30 Trillion of Debt with a flick of a “thing a ma jigger “on the vision shield and BINGO –USA has a 2 Trillion Dollar Surplus ???

  11. Wade says:

    Well, this is quite a shit storm.

    Given the predictable, no-win corner our Federal Government and Fed were painting us into over the past 14 years or so, you’d think that someone at the Fed would’ve gotten ahold of Pelosi and other congressmen and demanded that if a stimulus bill passed, no excess money should be sent abroad to any other countries whatsoever. All those billions should either have been spent on Americans (for once) or not spent at all.

    And here people were thinking COVID and the lock downs were instigated to prevent inflation by curbing spending. But with lockdowns comes reduced production. Demand has returned. Supplies are still impacted. And most of that stimulus money was sent by Democrats to foreign countries. Now we have inflation with a vengeance.

    No wonder people think that this is all a plan by the WEF to undermine and destroy economies. Personally I think they’re blowing smoke and just nuts. But I can’t think of a better way to destroy the US from within than what is happening now. So much of it was avoidable.

    • Replies: @Skeptikal
  12. meamjojo says:

    Damn! One of the best articles ever on UNZ!!

    I’d call for the FED to be abolished but it would just get replaced with some other 3-letter government agency name and business would continue on as before. That is what happens in a corporatocracy.

    Perhaps if we pray for the resurrection of Paul Volcker? Recall that he raised interest rates to 20% back in 1981 to tame inflation. The unemployment rate soared to 11% then. Doing that today would send the DJI down about 30k points.

    ZH also had a good article on the subject recently.
    The Inflation Crisis Is Worse Than Admitted – Will Interest Rates Go To Record Highs?
    Saturday, Jun 11, 2022 – 10:00 PM

    Inflation is not a new problem in the US; there has been a steady expansion of price inflation and a devaluation of the dollar ever since the Federal Reserve was officially made operational in 1916. This inflation is easily observed by comparing the prices of commodities and necessities from a few decades ago to today.

    The median cost of a home in 1960 was around \$11,900, which is the equivalent of \$98,000 today. In the year 2000, the median home price rose to \$170,000. Today, the average sale price for a home is over \$400,000 dollars. Inflation apologists will argue that wages are keeping up with prices; this is simply not true and has not been true for a long time.

    In today’s terms, a certain measure of home price increases involve artificial demand created by massive conglomerates like Blackstone buying up distressed properties. We can also place some blame on the huge migration of Americans out of blue states like New York and California during the pandemic lockdowns. However, prices were rising exponentially in many markets well before covid.

    Americans have been dealing with higher prices and stagnant wages for some time now. This is often hidden or obscured by creative government accounting and the way inflation is communicated to the public through CPI numbers. This is especially true after the inflationary crisis of the late 1970s and early 1980s under the Carter Administration and Fed Chairman Paul Volcker.

    • Agree: Chuck Orloski
  13. Karl1906 says:

    Poor Kaiser Wilhelm II.! He (and his wife) really don’t deserve this bad photoshop. He may have been an idiot on many occasions and she most certainly not the brightest bulb in the socket, but they never played their whole nation and population for a bunch of gullible fools and cattle to “milk” for a money scheme.

    No, it was “the best democracy” – or rather its worst cronies – that pushed the Fed in 1914. Which fits quite well with the last Kaiser and his moronic imperial politics. But the Hohenzollerns have been gone since November 1918 while the Fed’s still around to plague and ruin the people of the US – over 100 years later!

  14. peterAUS says:

    Hegelian dialectic.

    Austerity will “prep” the plebs; CBDC (and the rest….) is solution.


  15. Miro23 says:

    The assumption is that the FED wants to control inflation (raise interest rates to exceed inflation) – and that this makes the crash inevitable.

    But what if they don’t? What if they just do a bit of cosmetic work (like a 0.75% rise)?

    Then inflation shoots higher. People can’t pay their bills and they have to make some choices. They can restrict their spending to the absolute basics or they can borrow the money. It seems that they are being encouraged to get into debt. Banks are given ridiculously cheap money so they can continue to make low interest rate loans. The public take these loans because it’s the only way they can survive – in fact they’re forced to become property flippers and stock market speculators since it’s the only way to keep up with inflation.

    Result that everyone survives by speculation and asset prices completely lose contact with reality.

    Non-speculators are destitute, and as Whitney point out, the ROW (Rest Of the World) will have no interest at all in holding the Dollar or US bonds. Genuinely Weimar II.

    If it’s Weimar, then the big dealers clear out of the dollar and US assets altogether in favour of hard currencies while the (predominantly white) middle class are destroyed.

    Whatever happens to interest rates (low/ high) the US public are in for a very rough time – and it’s only just starting.

    • Replies: @Skeptikal
  16. Bill H. says:

    Don’t forget the cost of servicing the federal debt. Keeping the interest rate at 1% means that when existing T-bills are refinanced the rate paid on them stays at 1% instead of jumping to 12% and prevents the federal government’s cost for interest from jumping from \$450 billion per year to \$4.5 trillion per year.

  17. From what I’m able see, there’s nowhere to find sanctuary from the coming gloom now approaching at light speed. Gated communities will not be any more safe than government underground bunkers when SHTF. And all the unhealthy storable food will only last years before it’s expiration date.
    It’s back to the ploy and growing your food if you can fight off scavengers with what guns you’ve hidden before the great gun confiscation.
    Imagine if all the trillions of dollars worth of tanks, subs, bombers, nukes and aircraft carriers bla bla bla rusting could be recycled into sustainable life support.
    The planners of this shitshow should all be hung on sight.

    • Replies: @Realist
    , @RestiveUs
  18. Bert says:

    Another question is whether the Fed’s trading operation has models which predict stock indices’ behavior more precisely than models of other trading institutions. Precise models would allow a coupling of Fed trading and Fed fine-scale policy. For example, yesterday the stock indices reached a level important enough to trigger a rally more substantial than any since January. Will the June 13 price action event be coupled with a policy announcement on June 15 that facilitates a sustained rally which the Fed traders can exploit?

  19. @Renoman

    Once they tank the stock market and everyone moves into cash, they tank cash and move into a new fed/government controlled crypto. It’s a never ending pyramid scheme that only (((they))) benefit.

    Welcome to the reset.

    • Replies: @Truth Vigilante
  20. Farm thug says:

    If one giant investment bank– that is drowning in red ink– suddenly goes belly-up after interest rates rise, then that bank is going to take down 20-or-so counterparties along with him. That’s the problem with today’s grossly-entangled market; the web of debt stretches across the entire system endangering even the stronger players.

    Riddle me this: Why should anyone care if these financial entities fold? They are literal thieves and parasites. They produce nothing. They only steal the labor of others through usury.

    • Replies: @PJ London
  21. @Bill H.

    Thank you, Bill H.! I was wondering why Mr. Whitney didn’t bring up this 2nd reason why the FED is stuck between a rock and hard place (of its own making) in his otherwise good article.

    All one has to do, believe it or not, is look at a couple of pie charts near the back of the IRS .pdf of its 1040 Income Tax form instruction booklet. The Peak Stupidity blog has been displaying these 2 simple charts with income and outlays for a few years now. The latest wrap up of the problem is in “It’s the long run, but we ain’t dead”.

    If you read just a little bit in that on-line tax booklet, you can note that the net interest rate the US Gov’t is paying to borrow – “normally” (for about a decade) around \$1,000,000,000,000 yearly, lately more like 4-5 x that! – is 1.1% or so. If the FED were to let rates rise to a natural 6-7%, well, Peak Stupidity explains:

    At just normal rates, paying off the interest will take 58% of the taxes collected. There are people with 400 credit scores who do better than that. I’m no Certified Public Accountant, but that can’t be good!

    Why the title here? Well, Maynard Keynes was right, in a way… in the long run we ARE all dead. But, he said that 100 years ago. Yeah, Keynes is dead and if he meant his colleagues at the economic forums in Great Britain would all be dead, yeah, he was right. But, a century later, it IS The Long Run, and we’re NOT dead! That’s the problem… with that theory.

    There will not be, and CANNOT be, a Paul Volcker the 2nd, forcing rates up into the mid teens. Even at the lower, still under inflation, levels the National Budget would be seen as a complete sham. Confidence in the dollar would be lost. Yet, it will be anyway, as inflation continues to eat away at the buck.

    “Between a rock and a hardplace” now, I say.

    • Agree: Mario Partisan
    • Replies: @Rooster15
    , @Curmudgeon
  22. This is not to knock Mr. Whitney’s good article here, but I would like to point out that this (supposed) 8.6% inflation rate is but a rise in what has been running at an actual rate of 4-5% yearly for 15-20 years. There was an actual period of very low inflation in the mid-1990s to mid-’00s, and then there was the whole history of the US (other than during wartime) from its founding through, well about the time of the FED in 1913, when the CPI was steady*.

    For time periods of 25 to 3o years, usually from the 1990s through now, Peak Stupidity has calculated Inflation rates of various products and services, including building materials, auto parts, insurance, utility bills, food items, real estate, all stuff that people need. The rate, after accounting for compounding, comes out uncannily to 4-5% EVERY SINGLE TIME. (I am told that this matches the ShadowStats site number pretty well.)

    Right now the Federal debt is shooting through \$31,000,000,000,000. (I know, it’s hard to keep up.) That cannot be paid back in additional taxes, it being \$387,000 per ACTUAL taxpaying family/couple/individual. No freaking way. Therefore it will have to be taken care of via greatly reducing the value of the \$. We see that happening right now at an accelerated pace.


    * Kudos to Mike Whitney for mentioning that the FED and banksters (old ZeroHedge term – seeMy ZeroHedge Education) have been telling us that deflation is bad somehow. It is bad only for the F.I.R.E. “industry” but not for REAL industries and regular people. “We need to keep inflation at a healthy 2%” has been the mantra, and I remember reading a Wall Street Journal over 15 years ago telling me delation was bad, but it never made any sense to me.

  23. @Karl1906

    While I really enjoyed your quick history lesson on the Kaiser, Karl (no sarcasm there!), I guess the cartoon job is a 1st World problem, while we will deal with 3rd World problems in the coming years.

    Now, maybe it’s just me not being very good with faces: I know the Kaiserette there is Janet Yellen, but isn’t the Kaiser in this cartoon Ron Paul? Neither he nor that Kaiser deserve being made fun of in this cartoon. I must be missing something – is this thing out of The New Yorker, as per Seinfeld, you’re not supposed to get those?

    • Replies: @kopfjaeger
    , @IreneAthena
  24. Anonymous[970] • Disclaimer says:

    Well this article is the best I have read for an easy simple understanding of what’s going on. Our foundations are all lies when it comes to what we base our decision making on. There is no real profit only real debt. Even our goverment has doubled it’s purchase of Russian oil, YES Russian oil, Bloomberg just reported the US goverment is urging ,very quietly, companies to purchase Russian fertilizer.
    This article is truly a great description of the big BANG theory we have heard about since 2008 but we will not see it because we will be in it.

  25. @Bill H.

    But what we are seeing is decreasing bid to offer ratios: the number of people willing to buy 1% coupon bonds at a time of double digit inflation is limited.
    It does not include the wiley chinee,

    Most of the rest of MacKinder’s “World Island” are looking at the theft of Russian assets and the difficulty of repatriating gold from New York or London and won’t be looking for T-notes to hold.

  26. Hitch says:

    You cannot talk about trillions of dollars of bailouts and corruption without mentioning Blackrock and Larry the Fink.

    Blackrock came out of nowhere to be the larges “asset manager” on the planet after the GFC. The US Treasury actually empowered Blackrock to perform ESF (Exchange Stabilisation Fund) asset purchases through their own, often synthetic, ETF’s. This is the other tentacle of the FED “Put”.

    The Hebrew corporation Blackrock also evokes associations with the famous black cube that Rabbis wear so proudly….

    • Thanks: Joe Levantine
  27. “The Fed Isn’t Fighting Inflation, It’s Fueling It”
    Of course, the Fed is printing gigantic sums of unbacked money to protect their banking friend’s bad loans and now the taxpayers will pay for the bad loans with worthless dollars and the banks will walk away smelling like a rose – as usual.

  28. GMC says:

    The big banks can create , say 10,000 bogus accounts and the Fed/treasury , say they deposit 2000 bucks a month as a pension Soc. Sec. a stimulus paycheck or whatever they think of . This adds up to 20 million a month and nobody outside the bank or Fed will no Nothin. Times this by ten banks and you got a nice racket going on. There are no rules or checks and balances for this type of transaction anymore. There are no honest Audits either. These guys are slick.

  29. Rooster15 says:

    The biggest issue is the Debt to GDP ratio. When Volcker drastically raised rates in the 70s, the National Debt was under a Trillion and we still had an industrial Nation producing actual goods. Our current debt “on the books” is roughly 30 Trillion and growing, this means for every 1% the Fed hikes, our interest payment to service the National debt grows by \$300 Billion.

    I believe an interest rate around 5-6% would render the U.S. insolvent, thus Powell cannot hike anywhere near this, even with inflation at all time highs (note the altered CPI statistics). Paul Volcker hiked to nearly 20% to tame similar inflation. Before he died, Volcker even said himself there’s no way he could’ve done what he did in our current environment.

    The can has been kicked down the road about as far as it’ll go. I wonder what horrific magic rabbit they’ll pull out of the hat this time to keep the music playing a bit longer.

  30. Karl1906 says:

    Thanks for the reply, Achmed E. Newman! We’re certainly fucked in regards to what’s coming next for us in the West. And, yet, it’s kinda fitting to talk about the current Fed and comparing it to 100 years ago when a lot of serious and smart people were warning about its establishment. Well, too late for that.

    And the credit points to Jesse’s Crossroads Cafe ( featuring more (bad) photoshopping on classic motives and photos. And some critical commentary on current times to go along with. 😉

  31. PJ London says:
    @Farm thug

    “Why should anyone care if these financial entities fold? ”
    Congratulations ! Dumbest question of the decade.
    Those “Financial Entities” hold two (important to you and me) things.
    They hold Debt. It means that you and everyone else owes them. Is 2008 forgotten?
    They hold the mortgages to all the property in the country, and when they are in trouble, they merely take what is theirs. That mortgage – lease agreement says that they own it not you. Your house, your car, your office block and your factory. Yes they will sell them at \$0.10 on the dollar, (and the \$0.90 will be that they lose will be held against you. Read your Mortgage agreement.) but as Bankrupts they have no alternative. So your house will be taken from you, your job will be taken from you and you and your family will be on the streets until you starve.
    And this is why the Fed can’t do anything. Any action they take can only make things worse. They got into this position by trying to put off the evil day when the ridiculous over-valuation of all assets must come to an end. They kept kicking the can down the road and now they (we) are at the end of the street. There is no more road.
    They hold your “savings”. Ha ha ha. When you and your pension company put your money in the banks-financial it becomes theirs not yours. You gave it to them. The contract you signed specifies that they will give it back to you if and when they like. When the ‘Entities’ go bust, that’s it. You have gone bust.
    So you are smart, you don’t have a Mortgage, you don’t lease your vehicle. You don’t owe anyone any money so you are safe. Wake up dummy. The city, state, country has to operate, therefore they need revenue in the form of taxes, licences, fees. The homeless can’t pay. The bankrupt ‘entities ‘ and businesses can’t pay. So you sunshine are the last resort. Raise taxes until you can’t pay and then come and take everything you have.
    This is not something new, America is not unique. This strategy has been used over and over throughout the world for the last 20,000 years. America has had a good run and now it is time to crash it. Thereby having the few “own” everything of value.

    A quote from a 1924 edition of the American Banker’s Association not intended for the public sums up what is currently happening all around us:
    “Capital must protect itself in every possible way, both by combination and legislation. Debts must be collected, mortgages foreclosed as rapidly as possible. When, through the process of law, the common people lose their homes, they will become more docile and more easily governed through the strong arm of government applied by a central power of wealth under leading financiers. These truths are well known among our principal men who are now engaged in forming an imperialism to govern the world.
    By dividing the voter through the political party system, we can get them to expend their energies in fighting for questions of no importance.
    It is thus by discreet action we can secure for ourselves that which has been so well planned and so successfully accomplished.”
    Wake up sunshine, it is coming and other than shooting them, there is nothing you can do to stop it.
    That won’t save you or keep things as they are, but it will at least afford some satisfaction
    Why else do you think they are so worried about guns?

    • Replies: @Brad Anbro
  32. abcdef says:

    Americans are victims of the FED and Zelenski… but the MSM directed the Pilgrims to America, the FED began visible in 1865, when Lincoln was shot, continued through 1901, when McKinley was shot, and permanently established itself when foreign bankers successfully changed Art. 1, Sec. 9, para 4 of the Constitution of the USA into the 16th Amendment[which allowed a bank that could not fail to be established [Federeal Reserve Act of 1913, making cost of domestic and international activities and operations of the FED and its apparatus into personnel debts of every American tax payer]. Zelenski’s terror began only since 2014.

    My nomination for the proper order would be MSM,<== copyright and patent laws ( grant govt owned monopoly powers to private ownership) <== popular vote for President (Electoral College elects Presidents see Art II of Constitution of the USA), <== FED<== NATO<== CIA<== Zelenski

    Mike Whitney says it well: " the asset-price bubble the Fed has created with its low-rate mania is so gargantuan and unstable, that any tightening of policy can ignite a system-wide meltdown. .. the web of debt stretches across the entire system endangering even the stronger players. The last thing Powell wants to do is prick the bubble the Fed has been inflating for the last 14 years."

    How wide is the system? Its global and it has been exasperated by punishing non conforming persons and governments who refuse to use USD as their reserve currencies, and or those who refuse to comply with other requirements central bankers and their compatriots impose on nations and their elements around the globe. Most notable among them are the Oil Embargoes attempting to prevent Russian, Iranian and Venezuelan Oil to reach the Wall Street controlled global markets<=hence oil itself is going through the price roof.

    Adding to the Powell's problem also are the newly instituted gold backed Currencies such as the Russian Ruble and the Chinese Yuan which are challenging the strength of the dollar <=hence pushing prices through the roof..

    • Replies: @Abdul Alhazred
  33. Savers have been getting screwed and spenders rewarded for years. The FED as well as BOC etc would screw up a free lunch and are beholding to big money. The people who are really getting affected by high food and gas prices are the poor to middle income. The rich not so much.

  34. padre says:

    That’s what happens, when you put your Federal reserves in private hands!

  35. @Notsofast

    And what about the debt?

    • Replies: @Notsofast
  36. @Hitch

    I just like to point out the ESG that is being shoved down the throat of any corporation with publicly traded stocks by Black Rock. Non compliance by ESG could doom the stocks of any corporation whose stocks would be delisted from ETF’s or simply dumped by Black Rock. Hence we saw the generous contributions by most American companies to BLM after the riots of Saint George Floyd.

    The Kaaba in Mecca is one such black cube that has often intrigued me for I have often wondered if there is any connection with the Rabbis’ black cube.

    • Replies: @Hitch
  37. @CelestiaQuesta

    You wrote:

    Once they tank the stock market and everyone moves into cash, they tank cash and move into a new fed/government controlled crypto. It’s a never ending pyramid scheme that only (((they))) benefit.

    Only fools are on that Merry-go-round that you suggest above.

    The smart money is in gold (or silver) bullion or owning a portfolio of precious metal mining stocks.
    Physical gold [or silver] is the ONLY asset that has no counter party risk.

    • Replies: @Mefobills
    , @Bro43rd
  38. Realist says:

    Excellent article…and devastatingly honest.

    The whole system is designed to make the rich and powerful…more rich and powerful.

    This country is in the crapper and the swirl is on.

    • Agree: Agent76
  39. Mike Whitney, great finish to your article with that quote from Mises, the patriarch of the Austrian School of Economics.

    As usual, the Austrian School principles, as used by the Libertarians like Dr Ron Paul and Peter Schiff, get it right every time.

    Of course, by mentioning Mises, you’ve opened yourself up to criticism by the Marxists/Trotskyists like the Michael Hudson groupies – the same clueless economic illiterates that have been trolling many of the other threads here in the UR.

    • Agree: Bro43rd, Mark G.
    • Replies: @Skeptikal
  40. abcdef says:

    its too bad you cannot public my comments.. IMO this article is a lie because it leaves out so much..

  41. Realist says:

    nationalize the fed, seize it’s assets, do a forensic analysis of it’s books, jail all the banksters involved, seize all of their personal assets. regain control of money printing and stop paying interest on our own money. back the new dollar with the natural resources of the country which should also be nationalized.

    Sounds good… who is going to do it?

    • Replies: @Notsofast
  42. MLK says:

    I can’t be the only one who remembers the centrality of central bank coordination in the 2008 financial crisis and in the years afterward. I mention this because we must note its narrative absence.

    The Fed’s asset is the USD, still the reserve currency for the globe. Analogous to “It’s good to be the king,” the Fed is going to protect what is literally a license to print money.

    Just as it’s a mistake to conflate asset inflation with the price/goods variety, don’t do so with the Fed and the Treasury, or other parts of the federal government.

    Everything else aside for the moment — and, yes, that sounds a bit like “Other than that Mrs. Lincoln, how was the play” — don’t be distracted from the utter fiasco that was and remains the sanctions rollout against Russia. It cannot be overstated how damaging it is practically and in terms of the US as the leader of global finance. Rather than belabor, my point is that the Fed has made its move to beat into submission Treasury/DOJ on the sanctions insanity. In particular, that means putting the wood to Congress, which empowered those agencies through one sanctions law after another.

    I can’t be the only one to come to the conclusion that when the Treasury/DOJ announced the latest salvo against the evil Putin, sanctioning his purported girlfriend, the time is coming to an end of letting them play with dad’s razor.

    Short of putting Trump back where he belongs in the Oval Office tout de suite, there needs to be a negotiated settlement with Russia that reverses at least the sanctions on energy and other commodities immediately in return for some sop that allows the USG to save face.

    Otherwise the Fed will continue to tighten. Shortening the amount of time before the Euro inevitably goes bye-bye.

  43. Alrenous says: • Website

    Has nothing to do with “cooling” the economy. Raising the interest rate reduces the demand for loans and thus reduces the total dollars in circulation. Most dollars are poofed into existence and raising the interest rate means the banks can poof fewer dollars into existence.

    Also real inflation is more like 40%, so have fun with that.

    By the way, are Fed loans virtual poof-money like regular loans are?
    Seems to me like banks must lend real money to each other to meet reserve requirements, but the Fed loan would be printed on the spot. Hard to check, though.

    Note that most of America’s economic distress is due to the Fed price-fixing interest rates like this. Violently sodomizes the supply of money, which propagates to anything you buy with money. Primarily it makes firms that destroy wealth yet still manage to pay their stockholders and CEO barrels of cash.

    “as of March 26, 2020, the reserve requirement was moved to 0%.”
    “Although this rate is typically 50 basis points below the discount rate, as of April 2020 the two are equal—at 0.25%.”
    “The 2008 financial crisis saw the Fed’s discount window take on a central role in maintaining a semblance of financial stability. Lending periods were extended from overnight to 30 days, then 90.”
    ….hey, uh, did they put it back down again yet?

    The funny thing is that banks are already limited primarily by folks being willing to take out loans, not by their reserve requirements.

    • Replies: @mh505
  44. Yes, the Fed raised rates by 50 basis points

    Why use the language of the enemy?

    The average person prolly knows what 1% or 2 % means but “basis points?”

    Terminology means to conceal not reveal.

    • Replies: @Jim H
  45. Agent76 says:

    Feb 18, 2021 Global debt soars to 356% of GDP

    The world’s debt-to-GDP ratio rose to 356% in 2020, a new report from the Institute of International Finance finds, up 35 percentage points from where it stood in 2019, as countries saw their economies shrink and issued an ocean of debt to stay afloat.
    Is Inflation the Legacy of the Federal Reserve?

    Jan. 17 (Bloomberg) — In today’s “Single Best Chart,” Bloomberg’s Scarlet Fu displays how inflation has increased in the 100 years since the creation of the Federal Reserve.

    “Inflation is taxation without legislation.” Milton Friedman

  46. Realist says:

    Gated communities will not be any more safe than government underground bunkers when SHTF.

    Indeed. And hopefully, there will be plenty of middle-class people there to do the right thing when they are flushed out.

  47. whataliar says:

    the very definition of inflation is the expansion of the money supply. why is it that all economist types think that raising rates affects this in a downward trend that has any real effect on the money in circulation?

  48. Mefobills says:

    Remember the Cares act, and all of the Black-Rock funny business.

    The cares act was money conjured into existence using special purpose vehicles at the FED. They dusted off some old trickery, to conjure… and then pointed the new funds at Black Rock.

    This is all pure privateering, to then uphold the stock market and investor class. In the course of the action, there was a structural change in the economy, where many small businesses went caput. Big business got bigger, and was able to buy up many small businesses.

    This action had both a supply shock (small business is a big part of economy) and injected new demand in the form of conjured money.

    The structural change is also responsible for inflation.

    The U.S. is a corporatocracy. This corporatocracy is managed by a finance Oligarchy.

    Black Rock’s Aladdin software is used to monitor and control “investments.”

    Mussolini nationalized the banks in 1926 for their doing something much more benign, banksters were only swinging the stock market by voting absentee stock.

  49. Anon[334] • Disclaimer says:

    Whatever the rate of published inflation, it is false. Bread for example is up by 12%, gasoline up by 50%. You can expect that the huge increase in gas will affect material and overhead in everything else pushing the cost higher than the published inflation rate. Some other food prices up by 45%. My car is now worth more than when I bought it even with 60,000 miles more on the engine.

    Hence the inflation rate published by the Gumment is bullshit.

    Nevertheless, I have no sympathy for the average citizen. They buy things they do not need, bid up house prices, buy consumer goods that rapidly depreciate, run up the credit cards and apply for more and do not save and invest. Constant shopping has become a habit, the Corporations make it easy to shop even while taking a dump. It is so bad people wander the Malls looking for something to buy. In short, needs mean dick and folks have to have those \$950 apple green sneakers even though they have a dozen pairs in red, blue, purple etc

    Come the crunch, which always happens, they are left stranded. Blame the Fed, the Jews, the Banks or whoever else they choose as much a and as long as they wish. To find out who is really to blame for being unable to cope with the rising prices these people need to look in the mirror.

    This will all pass, things will get back to normal but no-one will learn their lesson. In another few years we will be back in the same spot, with the same problem and the same moaning and groaning !

    The average American is dumb, plain and simple !

    • Disagree: Robert Dolan
    • Replies: @Mefobills
  50. @Achmed E. Newman

    The other face is Jerome Powell, not Ron Paul.

    • Thanks: Achmed E. Newman
  51. Mefobills says:
    @Truth Vigilante

    The smart money is in gold (or silver) bullion or owning a portfolio of precious metal mining stocks.

    The smart money is to hold some gold/silver as a commodity asset, to then have low risk.

    The other smart money is to buy appreciating assets, especially in other economies that are better managed, like China.

    I have a vision of TV, with his gold statue, incense sticks and wearing special robes. He then goes through a ritual of paying homage to his gold god.

    Stop gas lighting the UNZ readership. Libertarianism is part of liberalism. We are in this pickle because liberalism is a false ideology, and privateers owning the money power operate for their benefit, not the general welfare.

    Liberalism came into being when our (((friends))) funded it, especially using stock market capital from Amsterdam. Post expulsion 1492 to 1694, our friends used their gold hoards to start up a Wissell bank and also figured out ways to maneuver the stock market to take sordid gain.

    Jews emigrating from Antwerp set up Wissell exchange banking operations to change money and discount bills of exchange, take deposits and make loans. This caused disorderly exchanges and our friends did a rake off during the chaos.

    The Jews then preyed on the Aryan Dutch, because they were easy targets. Holland was a free thinking Libertine community. Jacobus Arminius, the Dutch theologian, proclaimed the doctrine of free will, religious toleration and natural law, in opposition to Calvinist doctrines of predestination.

    Lolbertarian ideology finds easy roots in high trust Aryans, who find the Liberal idea of free will and religious toleration appealing. Of course the Jews wanted religious toleration, so they could move about without friction, to then ply their (((usury))) trade.

    Modern western construct of Finance Capitalism and debt servitude formed after expulsion from Spain in 1492, was done in a way consonant with libertarian teachings. Or rather, since libertarianism is Jewish, it is consonant with finance capitalism and debt spreading.

    • Disagree: Bro43rd
  52. @Chris Moore

    You are confused.

    “Whites” are not neocons. The term neocon means jew.

    Trump is no Christian.

    Trump is a zionist like Biden…..he just says a few things that are true but does nothing….he’s a release valve do nothing like Trey Gowdy but with a bigger platform.

    • Replies: @Chris Moore
  53. IreneAthena says: • Website
    @Achmed E. Newman

    Jerome Powell, chair of the Federal Reserve.

    • Replies: @Achmed E. Newman
  54. Chris Moore says: • Website
    @Here Be Dragon

    Don’t forget “atheist” Arthur C. Clarke’s black cube monolith.

  55. Andreas says:

    There’s no doubt the Fed contributed to the inflation of stock prices. They let companies borrow free money at virtually zero percent and use it to buy back their own shares to artificially increase the stock price. Buyers then payed a higher price for shares of stock for a company that had not intrinsically increased in value. Now it’s payback time.

  56. “In other words, the Fed is providing a subsidy to the banks for borrowing money. Have you ever heard of anything so ridiculous?”

    It would not be so ridiculous if the banks provided the same deal to the consumer!

  57. Rooster15 says:
    @Achmed E. Newman

    This. I posted below before I saw you’re comment, but this is the biggest issue with what’s going on right now. Do you notice how it’s never talked about in the mainstream anywhere? That’s how you know it’s important. If no one on any of the financial talk shows says a word about it, it means their scared sh***less to say anything about it. It reminds me of the Netflix movie: Don’t Look Up. This can be applied to everything significant that’s currently destroying our country that we’re not supposed to talk about: black crime, trans mental illness, covid skepticism, Jan 6 myths, etc.

  58. Mefobills says:

    Nevertheless, I have no sympathy for the average citizen. They buy things they do not need, bid up house prices, buy consumer goods that rapidly depreciate, run up the credit cards and apply for more and do not save and invest.

    Blame the victim much? How very Jewish of you. The Goys are only dumb animals.

    To find out who is really to blame for being unable to cope with the rising prices these people need to look in the mirror.

    There you go again. White people evolved for high trust; this evolution occurred during the ice ages, where they had to go along to get along in order to survive. These small tribes also had an aristocracy leadership. In this case, Aristocracy meant “merit” and not how much money you had amassed.

    Because of this evolution, NORMIES follow orders. This worked great in the ice ages, but causes malfunction when a predatory elite has inserted themselves as a parasite.

    Anybody with eyes could see how normies are always waiting for a new download from the press organs, telling them how to think. The mass formation event that was Covid was a function of a parasite elite managing the normie herd.

    So, in a way Jews are right. Goys are dumb animals, but Jews are not to be the Aristocrats – they don’t have merit. They did not earn the right, they inserted themselves instead as a parasite, and instead of managing the herd to keep it healthy, they milk it.

    Come the crunch, which always happens, they are left stranded

    Yes, of course they will be left holding the bag. They will also wonder why things are the way they are, because they are Normies, and are unable to think outside of their box. Mostly they want to be told what to do, and to live a decent life without being a predator.

    The average American is dumb, plain and simple !

    All populations have a gaussian distribution.

    The question that NOBODY is asking, is how do you select for your hierarchy. Who are the aristocrats going to be. Who is going to pull on the control levers, and to what effect.

    Chinese are equally trusting and can be herded. It only took about 15 days of propaganda after the Hainan incident. The Chinese press was blasting away about how the Americans were spying, etc.

    The population was whipped into a frenzy in no time. This is the nature of man, he does not really have “free will” or “free dumb.” His range of motion is what is given him by the Aristocracy.

    The Aristocracy (people who have real merit – not Oligarchs) are then held in check by a constitution. In China’s case, they have the mandate of heaven, which holds their aristocracy in check.

    Fascism, or National Socialism, is in alignment with “ice age people” evolution, which is why northern europeans or Han’s thrive under the system. These types of people are automatically high trust, unlike middle eastern peoples.

    The normies will operate following the signals the aristocracy emits, including prices and money.

    The Western World is a corporatocracy, which is a finance usury system and has inserted the “worst types” as the aristocracy; hence malfunction is a foregone conclusion.

    • Agree: Miro23
    • Replies: @Anon
    , @IreneAthena
  59. mh505 says:

    Real inflation may not yet have arrived at 40%, but this number is definitely closer to the truth than what the author states.

    Why would anyone believe official data?

    • Replies: @Alrenous
  60. Notsofast says:
    @Here Be Dragon

    the debt to who? 38% of the t bills are owned by the fed, no problem there, for we seized all their assets, sell off all the rest of their assets and simply print what you need to pay the rest. there is no need for any sovereign government to pay interest on their own money, this is nothing but a scam run by banisters. these people are criminals that have been running a ponzi scheme for decades, this is why we’re not allowed to audit the fed, they would be caught red handed.

    • Replies: @Here Be Dragon
    , @frontier
  61. Raising interest rates to fight inflation is like trying to put out a fire by throwing gasoline on the fire, what the zionist privately owned FED is doing is a deliberate destruction of the America economy, what the covid-19 scam and psyop failed to destroy will now be destroyed by the zionist owned FED.

    Central banks and a graduated income tax are 2 of the 10 planks of the communist manifesto and a central bank is the controller of a nation via the central bank control of the money creation and America has been under zionist control since 1913 when the zionists saddled America with the zionist privately owned FED and IRS, thus putting Americans in a zionist virtual prison without bars, a prison of money creation out of thin air.

    The FED and the IRS are unconstitutional and are the basis of communism aka the great reset, the FED and IRS need to be abolished, unless this is done, the zionists will remain in control of America.

  62. Chris Moore says: • Website
    @Robert Dolan

    Trump is no Christian…Trump is a zionist like Biden

    I agree. That’s why I called him a ((Christian)).

    But if Zionists aren’t really Christians, how many “Christians” are there in America?

    For example, if everyone in Congress who votes blank checks for Israel is a Zionist (and they are, whether they’ll admit it or not) how many people who disguise themselves as “Christians” in Congress but who are really Zionists are there?

    That’s why America is becoming a schizophrenic shi*hole — people who think they’re Christians (or profess to) are something other than Christians. Their “Christianity” sucks at the tit of Mammon and the Fed and the ((Jews)).

    So I’m not confused. They are.

    The question is, how long has America been on the Zionist tit? Even “anti-Semite” Henry Ford relented to the ((Jews)) and joined the City of London and Wall Street world war effort for the ((Jewish)) Ponzi.

    As I’ve noted before, the Anglosphere elite have been sucking at the tit of ((Jewish)) bankers and oligarchs since the Victorian era.

    • Replies: @Mefobills
    , @Mefobills
  63. Notsofast says:

    as i’m a little busy right now, i’m nominating you. but seriously the only way this could happen would be for a catastrophic collaspe of the west both financially and militarily and the rise of the russians and chinese systems, so give it a couple of weeks, it appears that we’re well on the way.

    • Thanks: Realist
  64. @Notsofast

    No, no.

    You are smart. Don’t pretend you don’t understand me.

    What about the debt?

    And how would you treat this –

    • Replies: @Notsofast
    , @Miro23
  65. @IreneAthena

    Thanks, too, Irene. As I said, I’m not good with faces, but then another excuse is that I’ve only seen Jerome Powell once in a picture, while looking him up to see if he was an AA candidate. (There is that one AA new Fed Governor now.)

    The cartoon makes a LITTLE more sense now, but still not so much.

    • Replies: @IreneAthena
  66. Mefobills says:
    @Chris Moore

    The cousin hood is a great link, where Joyce discusses the history of the Jew working to parasitize the British post 1694. The King had been ejected from throne and was a mere figurehead after the advent of Bank of England.

    To conclude, the history of Jewish ’emancipation’ and its aftermath in England is a long and sordid one, replete with hypocrisy, behind-the-scenes intrigues, and ethnic self-interest. There is no need for elaborate conspiracy theory here — the established and documented facts speak for themselves in a voice loud enough to bring reason to the honest man if only he will listen. One striking aspect to this history is that the abuse and expansion of power was concurrent with protestations of Jewish weakness and victimhood, a fact that brought to my mind the words of the great Ralph Waldo Emerson: “The sufferance which is the badge of the Jew, has made him, in these days, the ruler of the rulers of the earth.”[51] I should also answer that common critique made of any work dealing with the members of the Cousinhood: “But can you blame all Jews for the actions of a few individuals?” It has been abundantly demonstrated this history involves more than a few individuals, and that it was their Jewishness which linked them.

    Still waiting on some retard Lolbertarian to tell me how the Jews in England were operating with “Human Action.” The parasite inserted himself to then take gains for their IN GROUP. This liberal idea of the tough individualism is story time for kiddies.

    I’ve been beating the CREDITOR over DEBTOR dynamic horse for a long time now on UNZ. If you don’t think in terms of in-groups and creditors over debtors, then you cannot understand the world.

    This is an operative condition, creditor/debtor – and apparently I’m not the only one noticing it:

    Macaulay, it seems, viewed emancipation as a means of ‘keeping the Jews in check.’ For example, he insisted that “Jews are not now excluded from political power. They possess it; and as long as they are allowed to accumulate property, they must possess it. The distinction which is sometimes made between civil privileges and political power, is a distinction without a difference. Privileges are power.”[11] Macaulay was also aware of the role of finance as the primary force of Jewish power in Britain. He asked: “What power in civilised society is so great as that of creditor over the debtor? If we take this away from the Jew, we take away from him the security of his property. If we leave it to him, we leave to him a power more despotic by far, than that of the King and all his cabinet.”[12]

    So, there you go. Creditor elites do not have merit.

    The Western concepts of Parliamentary Democracy are a hidden control system run from behind the scenes, at the behest of a creditor elite. These creditors ALWAYS will want to maintain their power position over debtors. Or put another way, Capital will always demand supremacy over labor.

    Does anybody really believe a Jew will relent his creditor position, when it is the source, the wellspring of his power?

    This is why it is important that Russia transition to a Tsar system post haste. There can still be voting, such as in a Constitutional Kingdom, where the votes are a polling of the population, a check on the king’s actions.

    A jewish elite erasing debts on the goyim, when they hold the debt instruments. Impossible.

    The money power belongs to the Sovereign, not to creditor elites pulling hidden strings.

  67. “The Fed Isn’t Fighting Inflation, It’s Fueling It”
    Well yeah, that’s what the Fed is set up for. To print money to bail out their lousy friends who floated gigantic loans to get the interest. When the host (borrower) can no longer pay off the loans, the banks (only the big boys) have the Fed bail them out and leave the debt to the taxpayers.

  68. Mefobills says:
    @Chris Moore

    That’s why America is becoming a schizophrenic shi*hole — people who think they’re Christians (or profess to) are something other than Christians. Their “Christianity” sucks at the tit of Mammon and the Fed and the ((Jews)).

    One can argue when Christianity became fake. I put it for sure at the time when our (((friends))) in Amsterdam were printing Bibles in English, emitting propaganda via their press organs, and putting the British into debts.

    The Jewish Stock Market manipulators were buying the first printing presses, like Elon Musk buys MegaCasting machines.

    Manessah Ben Israel was funding Oliver Cromwell, as Protestantism held up the Jew – as people of the book.

    I don’t consider Catholicism as JudeoChristianity. The Catholics tended to hold the Jews in check and had doctrine against mammonism and usury. The Catholic Church was looted with the Protestant Judeo Christian Reformation.

    So, for America to have a real “Great Reset,” Christianity has to be reset as well. (Qumran scrolls indict modern Christians as being out of alignment with Christ’s real teachings.)

    Catholicism got its start when Constantine converted the Pagan Roman Church to Christianity. It didn’t triumph over paganism, but paganisms leaders adopted it. Pagan leaders substituted Christ for Caesar. Christianity also inherited the Pagan Church’s property – about 1/3 to 1/2 of all the lands of the Empire, and about 1/4 of the population.

    The coinage acknowledged the conversion to Christianity by the time of Constantine’s son.

    Rome reverted back to the Caesar as King working in tandem with the temple. This was NOT PRIVATIZED Jewish money power.

    The merchant has always stood outside the gates of the city-states, wanting to tear it down, and insert himself.

    • Replies: @Chris Moore
  69. @Wilson

    Wilson, you are forgetting Hemingway’s caution from “The Sun Also Rises.”

    “How did you go bankrupt?” Bill asked. “Two ways,” Mike said. “Gradually and then suddenly.”

    Didn’t the hyper-inflation in Germany after WWI, (caused by the disastrous Treaty of Versailles), come about suddenly?

    And the average small investor lost half of his savings in the stock market crash of 2008, another event that occurred just about overnight. Several brokerage houses suddenly went bankrupt. That scenario could easily happen again today. The stock market is down 20% from its all-time high, and the Nasdaq down 30% since November. Yes, indeed, due to the actions of the FED’s monetary policy, we could be heading for a sudden collapse followed by hyper-inflation.

  70. @Karl1906

    WWI was about taking control of the state owned central banks in Russia and Germany. The banker backed Lenin got Russia’s, the Treaty of Versailles forced Germany to privatize.
    For being an idiot, he certainly seemed to recognize what the game was.

    • Replies: @Karl1906
  71. frontier says:

    the debt to who? 38% of the t bills are owned by the fed, no problem here

    Inflation was triggered by the banana republic debt “monetization” the Fed engaged in – it was considered criminal to do before 2008 and the “too big to fail” lunacy. These t-bills must be sold on the open market in order to get rid of inflation. That’s in addition to getting the fed funds rate to parity with official inflation, then we can think about getting official inflation to parity with the real one – at the moment, real inflation is about twice higher.

    simply print what you need to pay the rest. there is no need for any sovereign government to pay interest on their own money

    This is Venezuela-style economics, it will lead to worse conditions than there because the US doesn’t have excess oil – said oil is the only reason Venezuela is still afloat and without a major revolution or “regime change”. I’m not saying the current Fed polices are better, but your proposals aren’t better either. The result of your fantasy economics would be massive inflation and corruption, it’s really a change for the worse.

    The Fed can act responsibly but there’s nothing to make them do it – the problem is total political corruption in the presence of which sane economics polices are impossible. Proper financial reforms will never materialize in a corrupt political environment and yours aren’t even proper, they are more of the same.

    • Replies: @Notsofast
  72. @Achmed E. Newman

    The part everyone fails to mention about Keynes, is that the government money injected in “down times” was supposed to be from money set aside during “good times”. Keynes was stating Clifford Douglas’ Social Credit model in a different way.

    Another gloss over in the article is that the New York Fed is the one holding all of the higher interest rate bonds/notes. Pension plans are risk averse, and default to government bonds whenever possible. Actuarial reports on pension plans treat a 1% change in interest rates as a 10% change in liability. Put another way, If the interest rates rose to their proper level, all pension plans would be solvent. By the New York Fed holding all of those notes, and suppressing real interest rates, the game to steal pension assets and your retirement savings continues.

    • Replies: @Achmed E. Newman
  73. Hitch says:
    @Joe Levantine

    It used to be J.P.Morgan, Warbug and Goldman Sachs that ran the market manipulation racket. Now they have added a layer of abstraction and today it is Blackrock, Statestreet and Vanguard. Ultimately it is the same inbred families calling the shots.

    Mohammed wasn’t literate, and he had Rabbi’s write the Koran. Of course he would have had no way of verifying what the Rabbi’s had written. The Donmeh and the entire House of Saud are just C-Jews anyway, so it would seem that Islam is just Crypto Judaism. The Kaaba seems to me to be just another Jew-Cube.

    • Replies: @Chris Moore
  74. Anon[334] • Disclaimer says:

    Blame the victim much? How very Jewish of you. The Goys are only dumb animals.

    I have to run out right now, to the Synagogue, oops I meant the Church.

    I will reply later, the Rabbi awaits me, He wants to know my plan to rob more Goyim LMAO.

    Shalom LOL

    M. Bills Anon

  75. regmax says:

    If all else fails blame white people, christians, and Jews.

  76. Chris Moore says: • Website

    Manessah Ben Israel was funding Oliver Cromwell, as Protestantism held up the Jew – as people of the book.

    I maintain the ((Jews)) are the people of the book — the Golden Calf Hebrews.

    Uncivilized grifting, slaving and usury — using goyim collaborators and useful idiots as their front men — is their way of life, what ((Soros)) calls their “civilization.”

    It’s no accident that the Transatlantic slave trade came out of ((Jew))-corrupted Protestentism. Original Protestentism was “anti-Semitic” for the same reasons Catholicism was — logos. It was logical. It made common sense.

  77. Notsofast says:
    @Here Be Dragon

    they bought the debt with paper pay them with paper and let the chips fall where they may.

    • Replies: @Here Be Dragon
  78. Jewnighted States money supply grew by 38% – by \$5.9 trillion – in less than two years; the unprecedented output of “the printing press” or just digitals all chewed up.

    “If the dollar continues to govern the world economy, nothing will change, regardless of the results of the war [in Ukraine],” Assad explained. “Using the dollar is not blackmail, it is robbery,” he continued, claiming that the Nixon administration’s decision to decouple the dollar’s value from that of gold in the 1970s made it “a worthless piece of paper.”

    “The United States still continues to trade around the world using this worthless piece of paper. This is robbery, and it applies to the whole world,” he said.

    “As long as the dollar is a global currency and continues to be settled through US banks or what is called the American Federal Reserve, you are under the authority of this dollar; and therefore your future as a state, a country or society, as an economy is under the mercy of the United States,” he declared.

    That is the reason for “Ukraine” and its setup by Soros (Rothschild-Rockefeller Syndicus) and the Jewnighted States of Washington & Jew Yolk, Israhell & Vatica(n);

  79. Inflation is…more money for the same thing and that extra money is being pocketed by some and of course the longer it lasts the more the lucky ones who are part of the deal collect.

  80. Notsofast says:

    the real problem with venezuela’s economy is that the u.s. has been attacking it illegally with sanctions and even attempted to assassinated their president on a number of occasions. they have attempted multiple coups and illegally seized their international assets and even created a sock puppet leader they try to force the rest of the world to acknowledge.

    the fed is nothing but a ponzi scheme and you can’t unwind a ponzi scheme, time to pull the band-aid off, it’s not going to get any better. continuing your fantasy ponzi economics is just kicking the can down the road.

  81. HT says:

    While some Jews destroy the value of our currency and usher in mega inflation to make it easier to pay off their business debt, other Jews use that distraction to destroy our culture and spread degeneracy. I’m just Jewed out at this point.

    • Replies: @Kurt Knispel
  82. Alrenous says: • Website

    Big mac index. Not 100% precise but always better than the alternative.

  83. @HT

    It might be of little comfort right now; still:
    When this – the Third Jewish World War – is over, the difference between Mankind v Jew will be like todays difference between man v monkey. The Jew will be looked at the way man looks at monkeys now:

  84. Miro23 says:
    @Here Be Dragon

    Help! The UK and Ireland combined hold about half as much US debt as China. I can understand that China is recycling export earnings but what are the UK and Ireland doing? Making investments?

  85. Miro23 says:

    The media would like to believe the Fed is doing everything in its power to fight inflation, but it’s not true.

    Well, if the whole of the West is deep in debt – governments , corporations the public – then they can’t meaningfully increase interest rates.

    Spain is fairly typical of a Southern European country that has massively debt binged. Government, corporations and the public are in fact hard pushed to meet current debt payments even at ridiculously low rates – never mind a rate (12%?) that would start to cool inflation.

    So it’s an inflationary spiral or an across the board financial collapse (inc. banks) . Take your pick.

  86. The Federal Reserve Bank Is An Organized Crime Syndicate

    Jay Powell Is The Frontman For The Financial Factions That Own And Control The Federal Reserve Bank

    The Ruling Class of the American Empire controls the Federal Reserve Bank; The Federal Reserve Bank’s Quantitative Easing monetary policies create price inflation asset bubbles that reward the billionaires and the top ten percent loot holders; The Federal Reserve Bank is deliberately stoking inflation to attack and harm White Core Americans of modest means.







    • Agree: Truth Vigilante
  87. Monetary policy is exclusively to blame for inflation in the USA and other nations.

    The evil and treasonous globalizer plutocrats and the nasty money-grubbing top ten percent loot holders own and control the globalized central banks. The plutocrats and the upper middle class skanks deliberately created asset price inflation so they could clam rake huge ill-gotten gains out of the rancid and corrupt financial system.

    That Connecticut guy named Kevin Phillips used to go on and on about financialization and he was right to do so.

    Now this disgusting GOLDMAN SACHS HUBBY name Teddy Cruz is blaming Biden for the inflation and that mentally unhinged globalizer geezer Biden is blaming Putin but the MONETARY POLICY EXTREMISM of the globalized central banks is to blame for inflation.

    Some people claim that Biden or Putin are to blame for inflation, but I know, it’s the central bankers who are at fault.





    • Replies: @Notsofast
  88. Tax the rich? Sure.

    Financially liquidate the billionaires and the top ten percent loot holders? Yes.

    Implode the asset bubbles created by the monetary policy extremism of the Federal Reserve Bank and that will financially liquidate the billionaires and the top ten percent loot holders.

    Implode the asset bubbles created by the Federal Reserve Bank to extinguish inflation.

    Three small increases in the federal funds rate will be sufficient to achieve the required implosion of the stock and bond and real estate asset bubbles. From zero federal funds rate to 6 percent and from 6 to 10 and from 10 to 20 will instantly implode the asset bubbles in stocks and bonds and real estate. Of course you must stop the billions of dollars in asset purchases that the Fed is doing now when they electronically conjure up dollars out of thin air to purchase mortgage-backed securities and the billions or so a month in government bonds that the Fed buys.

    This is the third frigging asset bubble, starting in the 1990s, that the plutocrat- and privately-controlled Federal Reserve Bank has inflated using monetary extremism — low or zero or negative interest rates, asset purchases, quantitative easing, dollar swaps, direct central bank purchases of sovereign and corporate debt, balance sheet ballooning, bailouts…etc. — and enough is enough, DAMMIT!

    The billionaires and the top ten percent loot holders must be financially liquidated. That is more important politically than taxing them a bit more or taxing them at all.


  89. @PJ London

    Your comments got me to thinking. I have a mortgage on my house; I have no debt other than that. My retirement assets are with a credit union and I have not banked at a “bank” for the past 30 years. I do not have quite enough money with which to pay off the mortgage and even if I did, that would still leave me with the question of real estate tax liability.

    I could move to a much smaller place, which I could pay “cash” for and would have a much more reasonable potential real estate tax liability. But where would that get me? If things in this country get as dire as your post suggests they could get, there are an awful lot of honest people that will find themselves in BIG trouble. And if that happens, I am afraid that there will be a revolution.

    • Replies: @Mefobills
  90. peterAUS says:

    So it’s an inflationary spiral or an across the board financial collapse (inc. banks) . Take your pick.

    Inflationary spiral resulting in impoverishment of middle class and debasing of currency.

    Solution: CBDC with the “social control package”.


    • Replies: @SaneClownPosse
  91. Jim H says:
    @Mick Jagger Gathers No Mosque

    ‘The average person prolly knows what 1% or 2 % means but “basis points?”

    ‘Terminology means to conceal not reveal.’ — Mick Jagger Gathers No Mosque

    Yes, it’s jargon.

    On the other hand, “basis points” is easier to say than “hundredths of a percentage point” — particularly when so many foreigners are unable to enunciate the ‘d’ in ‘hundredths.’

    I call them ‘bips.’

    As in, “The Fed is expected to announce a 75-bip hate rike [I’m a bit dyslexic] tomorrow.”

    If I were the scribe recording the minutes of the FOMC meeting, I’d add a sarcastic “Thanks for playing!” just to épater le bourgeois.

  92. The media would like to believe the Fed is doing everything in its power to fight inflation, but it’s not true.

    Yes, the Fed raised rates by 50 basis points in May and, yes, the Fed is trying to sound as “hawkish” as possible. But these things are designed to dupe the public not to reduce inflation.

    In my case this is “preaching to the choir”, but Mr. Whitney did a nice job with the many detailed explanations.

    Americans who are not in the top 1% are going to take a beating, and so are foreign holders of American “Bonds”. This is clearly by design, and for the most part the Top 1% of American Rich People are going to come out of an inflation spree in great shape.

    And the press-assisted scam mentioned by Mr. Whitney continues:

    ‘Never say never’: Wall Street contemplates a shock decision from the Fed

    The “shock” is that the Fed might make the next increase a whole .75% So the entire process continues to be a Chinese Fire Drill.

    • Replies: @frontier
  93. @Renoman

    Zelensky is an actor (as is Biden, Trump, Boris, Macron, Turdeau, et. al.) strutting about on the world stage.

    “All the world’s a stage.” Every event is being managed behind the scenes.

    The Producers and the Directors tell the actors how high to jump and when.

    A government’s response to the Covid scam tells you all you need to know about which world leaders are beholden to the Cartel.

    All of them, except for a leader of a minor African nation, who submitted fruits for Covid testing, then subsequently died of cardiac arrest.

    Putin is not a sovereign individual. Iran’s ayatollahs went along with it.

  94. Hillaire says:

    He’s mainly correct… but the crash of march 2020 was just foldback from the collapse of the repo markets in 2019…

    ‘Covid’ was the response to this, how should one term it…financial clusterfuck.. the ponzi was unraveling…

    At that time covid was still in the early psy-op stage… being created as ‘patsy’ and then the churn and stimulus package…. the vaccines (genetic injectables)…you’ll note event 201 and the repo crash ran concurrently..

    Take a peek at how many CEO’s and so called titans of industry jumped ship in February 2020..

    Well before the Covid psy-op..

    • Agree: peterAUS
    • Replies: @mulga mumblebrain
  95. Notsofast says:
    @Charles Pewitt

    fuck volcker, fuck the fed, fuck anyone that thinks private banks should print and control our monetary policy.

  96. Jim H says:

    Here’s where the rubber meets the road for US home buyers and home owners:

    ‘The average rate on the popular 30-year fixed mortgage rose 10 basis points to 6.28% Tuesday, according to Mortgage News Daily. The rate was 5.55% one week ago.’

    That’s almost double the mortgage rate that prevailed just six months ago.

    Say goodbye to those 20 and 30 percent windfall gains on your house last year.

    This rate-induced sharp stick up the rectum is going to bitch-slap the housing market into a bloody heap sprawling on the floor.

    And don’t bother dialing 911 … no one can hear you scream.

    • Agree: Truth Vigilante
  97. frontier says:

    Government, corporations and the public are in fact hard pushed to meet current debt payments even at ridiculously low rates – never mind a rate (12%?)

    Current debt payments carry the low interest rate of past and current borrowing – they cannot increase. Future debt will be more expensive… what do normal people, corps and govs do when debt becomes more expensive? They reduce borrowing, what else? Why can’t Western governments do so instead of sending billions to Ukraine, wasting money on free everything, immigration, military and (most of all) corruption? Even Spain is sending military equipment to Ukraine, meaning they have plenty of pork in their budget that has to be cut. On the other hand, corporate profits have been going up for years as have the number of billionaires – they can afford higher rates and taxes.

    So it’s an inflationary spiral or an across the board financial collapse (inc. banks) . Take your pick.

    This is a false conclusion that you based on your false claim above. These are not the only options, the other and only sane option is to reduce government spending and increase corporate taxes and interest rates – we’ve been going in the opposite direction for many years, it must be reversed.

    There is a special kind of irony in your statement that “it’s an inflationary spiral or an across the board financial collapse”. You apparently have no clue what you’re talking about because an inflationary spiral leads to either across the board financial collapse or across the board political collapse and wars – any financial collapse is way preferable to that.

    • Replies: @Miro23
  98. frontier says:
    @Zachary Smith

    The “shock” is that the Fed might make the next increase a whole .75% So the entire process continues to be a Chinese Fire Drill.

    A Kabuki theater it is… meticulously choreographed every step of the way.

  99. @peterAUS

    Debasing of the currency is a cause, not an effect.

    Devaluing worthless fiat scrip, meanwhile THEY hold most of the real physical assets.

    • Agree: Notsofast
  100. Skeptikal says:

    “And most of that stimulus money was sent by Democrats to foreign countries. ”

    According to (I think) Michael Hudson, a lot of the stimulus money went directly to banks and credit card companies.

    The money was deposited directly in people’s bank accounts. For anyone who had credit or debit card debt that was attached to their bank accounts (i.e., a credit card issued by their bank, or they had debt on their debit card) , the money went directly to pay off the interest on that debt. The money didn’t sit around in their accounts waiting for them to decide how to spend it. So the stimulus money was actualy a windfall for credit card companies and banks.

    There may be some who disagree with this analysis. It is not mine, but I can’t document it at this point. I am pretty sure that this is what Michael Hudson said.

  101. Bro43rd says:
    @Truth Vigilante

    Your over the target taking flak.

    I truly wish @RonUnz could figure a way to charge commenters by the word.

  102. Skeptikal says:

    “The assumption is that the FED wants to control inflation (raise interest rates to exceed inflation) – and that this makes the crash inevitable.”

    Tthe fellow who writes the Doomberg blog labels the current situation in which the Fed finds itself Zugzwang (literally, “forced to move”), a chess term referring to having to make a move when there is no good move—when one has been maneuvered into such a spot by one’s opponent.

    There is no good move for the Fed at this point—every move leads to disaster—but they have to make some move. But it looks like they have maneuvered themselves into this Zugzwang situation.

  103. peterAUS says:

    From 40th minute in particular.

  104. Skeptikal says:
    @Truth Vigilante

    Are you saying that Hudson has a different analysis of the situation?

    Can you clarify the basics in how it differs?

    I don’t think I am a “groupie” but Hudson has always seemed to me to make sense.

    But I would like to find out what the areas are of conflict with the info and analysis Whitney puts forth in this article.

  105. Federal Reserve Bank Chairman Jay Powell is a nasty three dollar whore for the plutocrats and the top ten percent loot holders.

    There are thousands of three dollar whores plying their trade all across this once great land of the USA who have more honor and integrity than that rancid billionaire-controlled puppet whore Jay Powell.

    Jay Powell is the evil frontman for the organized crime syndicate called the Federal Reserve Bank. The privately-controlled Federal Reserve Bank uses its monopoly power over monetary policy to concentrate loot and political power in the greedy clutching claw hands of the globalizer plutocrat billionaires and the vicious and avaricious money-grubbing White Upper Middle Class Snot Brats.

    Fed Organized Crime Syndicate Boss Jay Powell goes to Jeff Bezos’s massive compound estate in Swamp City DC for dinner and takes his orders from Bezos and other billionaires and Jay Powell only serves billionaires and the nasty skanks in the Upper Middle Class and corporate managerial slobs and foreigners. The Fed is the globalized organized criminal syndicate that pauperizes regular people and enriches the greedy, money-grubbing plutocrat slobs.

    SECESSIONISM and MONETARY EXTREMISM and EXPLICIT WHITE IDENTITY POLICS and the JEW/WASP RULING CLASS of the American Empire and monetary policy madness and mass legal immigration and mass illegal immigration and anti-White propaganda endlessly emanating from the corporate propaganda apparatus and the only thing holding the American Empire together is monetary policy extremism from the privately-controlled Federal Reserve Bank.

    Don’t listen to corporate propaganda whore douchebags such as the rodentine Ross Douthat who sniff on about WHITE IDENTITY POLITICS being “toxic.” The Reagan/Bush/Trump Republican Party is toxic and the JEW/WASP Ruling Class of the American Empire is toxic and the NY Times and the Wall Street Journal are toxic and Explicit White Identity Politics is exactly what will start the dislodgement process of the rancid JEW/WASP Ruling Class of the American Empire.

  106. Miro23 says:

    Current debt payments carry the low interest rate of past and current borrowing – they cannot increase.

    Maybe not where you are, but in Spain almost all mortgages are variable rate. If base rates increase than your monthly repayment also increases.

    You apparently have no clue what you’re talking about because an inflationary spiral leads to either across the board financial collapse or across the board political collapse and wars – any financial collapse is way preferable to that.

    It depends what kind of economy you’re dealing with. If an advanced industrial economy experiences and inflationary spiral it can have strong redistributative effects. For example, in early 1920’s Germany, the hyperinflation reduced the value of the D Mark vs. foreign currencies and made German industry very export competitive. Large scale German manufacturing operated at maximum output and workers wages kept up with inflation. Savers, bond holders and many on fixed incomes (mostly middle class) were wiped out while the financial/banking elite (mostly Jewish) saw an unprecedented transfer of assets into their hands. By one estimate about 1/3 of prime German city centre property transferred to their ownership.

    They awarded themselves large D Mark loans and bought the property. Then a few years later paid back the loans in what became known as “confetti money” – so in effect they received it free.

    Agreed that there’s an increased possibility of a dictatorship. But this is just because the existing system is so corrupt, unfair and useless, and incapable of fixing itself – so better to get rid of it and have a fresh start. German economy/society recovered nicely after A.H. took power. The trouble only started with his militaristic ideas of German Imperial racial destiny.

    • Agree: Mefobills
  107. IreneAthena says: • Website
    @Achmed E. Newman

    Ron Paul might fit into that picture, as a third character, beneath a conversation bubble with the words, “I told you so!”

    It’s interesting, that like Wilhelm II and the “Kaiserette,” neither Powell nor Yellen were elected to their positions. After Wilhelm II’s abdication amidst a big old mess, the new leader, Fuehrer was … a military dictator.

    A military dictatorship may be what’s planned in order for the 99 percent, who will own nothing, to “be happy”— or at least compliant— about The New Currency, managed by technology and doled out in sync with one’s obedience to the New Order. I hope the future holds a good surprise, but with it or without, I see trouble ahead.

  108. Bro43rd says:

    MMT is Keynesianism tweaked. Keynesianism is what has been practiced by virtually every government for the past century. MMT still allows ‘money creation’ to be a government function when ultimately it is an economic phenomenon. Mr Hudson, whether knowingly or not, is just another tool of government oppression. Essentially a snake oil salesman for the government.

    Government control over money is the chains that bind us. Repeal legal tender laws & let people trade however the parties involved can agree to. The most desired money will come about organically & fiat currency will return to its intrinsic value. Good money will chase the bad money out.

    • Agree: Achmed E. Newman
    • Thanks: Mark G.
  109. I say the Federal Reserve Bank should be NATIONALIZED and the Fed should begin doling out mass quantities of loot like that Saturday Night Live comedy bit where the Coneheads consume mass quantities of beer and potato chips.

    Use the nationalized Fed as a tool to politically dislodge from power the evil and treasonous JEW/WASP Ruling Class of the American Empire.

    The Fed is now electronically laundering conjured up currency through the FIRE sector — Finance, Insurance, Real Estate — and the Fed has created massive soon-to-pop asset bubbles in stocks and bonds and real estate.

    The Fed should be nationalized and the federal funds rate raised to 6 percent and the Fed’s ballooned balance sheet must be liquidated and that will pop the asset bubbles in a split second and the Fed should be doling out the cash directly instead of laundering the loot through the banks and the FIRE sector and the debt-based fiat currency system needs restraining anyways.

    Universal Basic Income(UBI) or the Pewitt Conjured Loot Portion(PCLP) is about raw power and who has it. A UBI or PCLP will allow the historic American nation or the European Christian ancestral core the ability to dislodge from power the evil and treasonous JEW/WASP Ruling Class from power.

    The Pewitt Conjured Loot Portion(PCLP) will pay each American who has all blood ancestry born in colonial America or the USA before 1924 a cool ten thousand dollars a month. The US Treasury and the Federal Reserve Bank shall work together to conjure up the cash out of thin air, just like the ruling class is doing now.

    Sam Francis said it’s all about the ruling classes and Sam was right. A UBI or PCLP will create the conditions whereby tens of trillions of dollars and land and property and licenses and other assets can be severed from the ownership and control of the current corrupt and illegitimate JEW/WASP Ruling Class members of the American Empire and doled out to the patriotic and honorable old stocker members of the European Christian ancestral core.

    UBI or PCLP is about raw political power; it’s not about economics.

    The ability to control the central bank is the true power and it must be contested by the old stocker members of the historic American nation.

  110. The federal funds rate is now(June 14 2022) less than one percent.

    The federal funds rate hit 20 percent in 1981 — lets do it again!

    The federal funds rate at 20 percent will instantaneously implode the asset bubbles in stocks, bonds and real estate.

    The Los Angeles Dodgers won the World Series in 1981. The Oakland Raiders won the Superbowl in 1981 following the 1980 NFL season. An extraordinarily dumb movie with no Joe Pesci in it named Ordinary People won the Oscar for best film in 1981. Christie Brinkley was on the cover of the 1981 swimsuit edition of Sports Illustrated. Ain’t we all proud of Brinkley’s curvy hips and the patriotic way her beautiful legs and curvy hips make a nice picture? Yes, we are proud of our Christie!

    Plutocrats were told that 1981 federal funds rate jump to 2o percent would bring on massive debt binge once the financial shock was over. Plutocrats were told mass legal immigration and illegal immigration after 1981 would keep wages of Americans down and stagnant. Plutocrats were told in 1981 that in a few decades the wealth in the USA would be massively concentrated in the hands of plutocrats.

    What was going on in 1971?

    Nixon took the frigging dollar off the gold standard because foreign governments were demanding gold for dollars, and Nixon told them to go to Hell and the globalized plutocrats knew they could steal everything in the United States better with a debt-based fiat currency system and monetary policy extremism from the privately-controlled Federal Reserve Bank.



  111. Chris Moore says: • Website

    Mohammed wasn’t literate, and he had Rabbi’s write the Koran. Of course he would have had no way of verifying what the Rabbi’s had written. The Donmeh and the entire House of Saud are just C-Jews anyway, so it would seem that Islam is just Crypto Judaism. The Kaaba seems to me to be just another Jew-Cube.

    Is there a racket the ((Jews)) don’t have their hand in? They’ve got the Abrahamic religions covered, atheism covered, capitalism covered, Marxism covered, liberalism covered. They even incited fascism to spur the creation of Israel and today control the neo-Nazis in Ukraine.

    Their only weak point is that they’ve got to coerce, buy, bully and brainwash loyalty. There is no organic love for the ((Jews)), but tremendous pent-up (often repressed and unconcious) rage. This means there are millions (billions?) ready to pounce when someone or something finally puts them on their heels.

    Maybe that something is the Internet.

  112. Mefobills says:
    @Brad Anbro

    Your worries would be easy enough to take care of by adjusting the balance sheets
    A modern economy can be modeled as inter-related balance sheets. The problem is the debt instruments and finance paper are distributed in “free markets.”

    Lolbertarians are wrong:

    Neoclassical (and “Austrian”) economists worry about government debt. They claim that government debt “crowds out” private sector investment, by borrowing money that the private sector could have used to invest, and that it saddles future generations with the burden of paying back that debt (Mankiw 2016, pp. 556-57). They don’t worry about private debt, because they see changes in the level of private as simply a transfer of spending power from one private individual to another,

    MMT and Post Keynsians get it mostly right. But, the MMT crowd is still wrong when it conflates private banks with the Treasury.

    Post-Keynesian (and “MMT”) economists worry about private debt. They claim that bank lending creates money, and this adds to demand, directly affecting the macro economy. Financial crises are caused by too high a level of private debt, followed by credit—the change in debt—turning negative (Keen 2020)


    In 2014, The Bank of England came down on the side of the Post Keynesians in this dispute (McLeay et al. 2014): contrary to what economic textbooks argue, bank lending creates money.

    So, the argument is over. Banks create and destroy money. When former bank credit channels into your debt instrument… your mortgage, the former credit disappears. What comes from nothing returns to nothing.

    Keen’s jubilee is aimed at a general debt release. If you have a mortgage, you would get a substantial amount of “credit” which channels directly into reducing principle. Maybe 30K per person. It depends on what the models say is appropriate.


    A “Modern Debt Jubilee” could achieve this. A Modern Debt Jubilee uses the capacity of the government to create money to reduce private debt by effectively swapping credit-backed money for fiat-backed money:

    Rather than debtors having their debt reduced, everyone—borrower or saver—is given the same amount of government-created money;

    Debtors must reduce their debt; savers get cash that must be used to buy newly-issued corporate shares;

    The proceeds from selling these shares must be used to pay down corporate debt;


    The Jubilee gives banks the finances needed to buy Jubilee Bonds, the interest income from which compensates them for the fall in their income from private debt.

    Everybody gets the same amount so no kvetching about how unfair it is.

    My addition: I would inject enough to pay down corporate debt, and also have enough for import substitution. That way industry ramps up to make things, so the U.S. can employ American labor rather than foreign labor.

    Do you think the average Congress Critter is able to understand the above? We are in a pickle because our privateering finance elites want you indebted. That way you are paying them.

    The public debts on the books, where they rebate to Treasury, can be shuffled off onto another ledger. This would require new accounting rules.

    In other words, there are sensible ways out of our pickle, and there would be no gnashing of teeth and curses to high heavens.

    • Agree: A B Coreopsis
    • Replies: @Brad Anbro
  113. Anon[233] • Disclaimer says:

    Ref: My Comment 50 where Robert Dolan disagreed and you were somewhat belligerent.

    Well Mefo, here I am five or so hours later. I went down to the Synagogue but the Rabbi would not let me in as I was still Catholic LMAO even after 5 hours of argument. I told him I had chosen the name Mefo Dolanberg but he would have none of it. Jews you know !!

    I dont care what anyone says whether it is the donkey cart man or an Economist with a Phd. Inflation and taxes hurt those who spend the most and those who have spent the most on wants and not needs !

    On UR we hear about Blacks this and that. White complain that they are tired of blacks and their perpetual victim hood. Yet whites complain about Jews just as much and said Jews probably are tired of white victim hood. The Chinese are also probably fed up with out constant bellyaching. Thats the way the world spin.

    Now the percentage of Jews in the world in 0.2%. How did these people with such a small minority come to dominate the roost. Wait a minute. They got rich and manipulative because they do business among themselves ? NOOOOOOOOOOOOO !! The other races made them so. The Goyim complain bitterly but they got to Disney, pay to see Hollywood Movies, buy through Amazon and display 24/7 trash on Facebook, Instagram, You Tube etc. They look at the shit news. All this makes the Tribe rich. The Goyim give them the whip and bucket of salt and the Tribe applies the lash to their backs.

    Then there is all this talk about demolishing the Fed, expelling blacks and Jews, this, that and the other but WHO exactly is going to do any of that ? DUH !!

    Everyone blames everyone else. Well, we live in a democratic society and people can do as they chose. I dont indulge in that kind of time wasting activity.

    The only person I can control is myself. Hence I strive to make wise decisions and never to make the same mistake twice. The multitude do stupid things over and over and then wonder why they are always in a mess.

    Inflation, deflation, rising interest rates, the Fed, Politicians, Jews, Chinese, Blacks, credit card debt or whatever, do not bother me in the least. If it is a millstone for others its because when things were good they did not prepare for when things get bad which they always do.

    The multitude do and say stupid things as if they wished to show their skill in that regard. They put themselves in the wringer, never reflecting on their past lives and experiences. And since someone else is to blame they never have to do anything to prevent a recurrence of the same old problem.

    Its the same old same old. Different day, same circumstances, same shit and the same complaints ! When this bump is all over no one will do anything differently and in another 10 years or so we will hear the same redundant refrain !!

  114. Karl1906 says:

    The problem with Kaiser Willy wasn’t a lack of intelligence but of character. He could be easily swayed if an advisor sounded more believable.

    • Replies: @Curmudgeon
  115. @Miro23

    You wrote:

    Well, if the whole of the West is deep in debt – governments , corporations the public – then they can’t meaningfully increase interest rates.

    Not correct.

    Increasing the Fed Funds Rate to the right level to tackle inflation (say around 15% – 20%) can easily be done.

    Of course, even at half that rate the U.S government would not be able to service the interest payments on its debt.

    SOLUTION: The U.S government levels with its creditors and tells them it cannot pay off the whole debt (which said creditors already knew anyway so it won’t come as any surprise). They agree to a restructuring whereby the U.S government agrees to pay off say 25% of the debt and they default on the rest.
    If the creditors don’t agree to that, the U.S government has leverage in that it can say it’ll do an ‘Argentina’ and default on the entirety of the debt.

    Even after having 75% of its debt written off, the U.S government will still have enormous difficulty in servicing the interest repayments whilst still being fiscally irresponsible and funding forever wars, a bloated bureaucracy, various boondoggle programmes like subsidies for inefficient Green energy inituatives.

    SOLUTION # 2: The U.S must immediately begin to live within its means. Entire departments should be abolished and the remaining ones severely defunded – just like Libertarian Dr Ron Paul said he’d do in his 2012 Presidential campaign.

    This will free up enough money to service the debts and save the republic from the inevitable inflationary Depression which is surely coming.
    (In fact, we’re already in the early stages of it – about a Category 1 by my reckoning. Category 5 level hurricane conditions are on the way).

    • Thanks: IreneAthena
  116. Rooster15 says:

    A poster on another site brought up an interesting point on how they think the Fed will continue to raise rates, impacting the citizenry, while allowing QE for USTs. Now to me this sounds like hitting the gas and brake pedal at the same time, but I believe something like this is in the works. The government essentially would act like a middleman, and divvy out the dollars to preferred groups. Which I suppose isn’t really that different than what they do now… just with the added flare of bending us over more vehemently than they already do.


    Education is fundamental. How do you dilute something. Kolaid for example. Add more water. If you don’t understand that the fed has been diluting the dollar since the end of the gold standard, you definitely failed chemisty. Or you just like weak Kolaid.

    • Replies: @Achmed E. Newman
  118. @abcdef

    Good analysis but what is MSM?

  119. @Notsofast

    Yes of course. A-ha.

    Why U.S. Opposes a Return to the Gold Standard – Peking Review, 1965

    As a rule, a country cannot pay off its debt to another except by exporting goods or in gold. Payment in the currency of a debtor nation would not be accepted by a creditor nation.

    And in any case as long as that debt clock is ticking there will be no change in this situation, it’s only going to get worse and worse and there’s a limit to that.

    The clock should be ticking in the opposite direction.

  120. @Curmudgeon

    Yes, Curmudgeon, I did know of Keynes’ idea of spending taxpayers’ money in down times and setting it aside during good ones. As a believer in the free market, of course I don’t like it either way.

    You bring up a good point about the pension plans. They are stealing our money, but then again, if they let rates rise, this Ponzi Scheme of an economy goes down.

    • Replies: @Curmudgeon
  121. @Marcus Chapman

    Kool-Aid, you know like this guy:

    Oh, yeah!

    Agreed, Marcus, the gold standard kept the government honest.

  122. @Truth Vigilante

    As much as I agree with your attitude, and Ron Paul’s, there’s more to this blowing off 75% of creditors’ money, T.V. It’s not like it’s one big note to China*, right? Treasury Bonds are fungible. Pension funds will hold them, investments by 401(k) holders, market funds of different sorts, etc., who knows…

    So lots of entities and people will go broke, not just some big-money hot shots. The dollar is going to have to die one way or another though, so I’m not saying your way will be any more financially painful on the whole than any other.


    * Were it that, I always say that the best move for all involved would be our telling the Chinese “you’d be speaking Japanese, if it weren’t for American, so let’s call it even.” Animal House style: “Listen, you fucked up. You trusted us!”

  123. RestiveUs says:

    I always thought the correct past-tense of the execution word hang was “hanged”, not “hung”. Is that no longer the case? A towel is hung to dry, a person is hanged to die.

    • Agree: TTSSYF
    • Replies: @CelestiaQuesta
  124. IreneAthena says: • Website

    My favorite word to describe most rulers of the world (with some exceptions, e.g, leaders of some Southern Hemisphere countries who’ve tried to maintain independence from the exploitative ways of the International Monetary Fund)

    They’re just…kaka. Every little child should learn that this little word has two meanings: the second meaning is “tyrannical aggressor.”

    The question that NOBODY is asking, is how do you select for your hierarchy.


    If the Great Reset goes the way I want it to go, rather than the way the Kakistocracy wants it to go, natural-born leaders/judges, trusted by their near neighbors, will emerge at the local level. All governance will be local, after the Great Good Reset following (or…preceding???) the Elimination of Kakistocracy. In time, to manage things like water resources, and provide protection from bad-news-tribes, cooperative leagues will form. All will benefit from the collective wisdom/peaceableness of the local leaders. There will be no king, because “everyone will do what’s right in his own eyes,” and sages through the ages have warned that folks end up being enslaved if too much power is concentrated in a single person.

    If wishes were Porsches, we’d all ride in style.

    • LOL: meamjojo
    • Replies: @Mefobills
  125. @Skeptikal

    ‘Bro43’ explains it pretty well in his comment so scroll up to that for some enlightenment.

    To encapsulate Michael Hudson succinctly, he is an admitted Trotskyist so his economic philosophy is based on a foundation of Judeo-Bolshevism, whereby the almighty state owns the means of production.
    Said authoritarian state will dictate what our allowable carbon footprint will be (only EV’s allowed), what we eat (no meat – only that ‘goo’ that is supposed to be a meat substitute), what experimental mRNA vaccines that haven’t been subject to long term (or SHORT term) Randomised Control Trials we inject into our eyeballs etc.
    All decisions will be made by an ‘omniscient’ Politburo and Hudson has anointed himself to be the head of it – such is the hubris of this man.

    For a better appreciation of where his beliefs fail and how I’ve comprehensively eviscerated them time and again, scroll down to my comments below this recent UR article:

    Whilst I don’t actually exchange comments with Michael Hudson (he banned me from commenting on his articles a long time ago because I was pointing out the fallacies and economic absurdities in his statements – so he started sulking like a 2 year old and won’t engage me in articles on UR written by others), I do have exchanges with some of his groupies.

    One of Hudson’s most prominent groupies is a fellow by the name of Bill.
    He also happens to be somewhat of a Mofo – hence the appropriate pseudonym he uses of ‘Mofo-Bill’ or something like that (he’s not a great speller – he still can’t spell the word Libertarian).

    Have a look at the exchange I’ve had with the Mofo and you may start to learn some real economics. ie: the Austrian Economic School of thought – as employed by the Libertarians like Dr Ron Paul below in this 3 min clip:

  126. IreneAthena says: • Website
    @Truth Vigilante

    Choice Two, please. Choice One is only a temporary fix, for without eliminating all those massively wasteful money-sinks, we’d end up in debt again soon.

  127. antibeast says:
    @Truth Vigilante

    The U.S government levels with its creditors and tells them it cannot pay off the whole debt (which said creditors already knew anyway so it won’t come as any surprise). They agree to a restructuring whereby the U.S government agrees to pay off say 25% of the debt and they default on the rest. If the creditors don’t agree to that, the U.S government has leverage in that it can say it’ll do an ‘Argentina’ and default on the entirety of the debt.

    That’s called a debt default which would instantly trigger the catastrophic collapse of the USD debt pyramid in the USD-based global financial system due to the role of the US T-bills as its base asset. Such a catastrophic collapse would make the GFC in 2008 look like a picnic.

    • Replies: @Truth Vigilante
  128. @Skeptikal

    ‘Skep’, in relation to the comments in the article titled ‘Will the Global South Break Free from Dollarised Debt?’ that I posted a link to, be sure to especially read Comments # 10, 12, 31, 86, 106, 107 (be sure to watch/listen the video/audio in that comment from 14:40 – 23:30), 108, 122, 126.

    That will give you some background as to why Michael Hudson’s opinions are not sought by any well credentialled entities.

  129. map says:

    Rate hikes aren’t the only way to deal with inflation. Remember, inflation is an increase in the money supply, a shrinking economy, or both. You can have inflation with an expanding economy if the money supply grows faster than the expansion. You can also have inflation if the money supply is stable or shrinking if the economy is shrinking faster.

    The problem with the Fed’s rate-hike agenda, which is a liquidity-removal agenda, is that it removes liquidity across the board, including the liquidity that is keeping the real economy afloat. Continue doing this, and you will eventually crash the whole thing.

    The solution is to lower taxes and regulations and expand economic activity that causes increases in the supply of wealth. This means stop attacking energy and start getting businesses that disappeared under covid up and running.

  130. @Hillaire

    I want to know how many CEOs and titans of industry have died of CoViD19. And how many had saline injections while pretending to be receiving ‘vaccines’ like the two thousand (so far), including the head of the largest Spanish BigPharma gang, caught doing so in Spain.

    • Replies: @Hillaire
  131. Annwn says: • Website

    The « City » of London, this State within a State, directly or indirectly controls a large number of international institutions including the IMF (International Monetary Fund), the WB (World Bank), the Vatican Bank (through of Torlonia, the Italian London branch of NM Rothschild & Sons), the ECB (European Central Bank), the BIS in Switzerland (Bank for International Settlements which is also under British control and supervises all reserve banks around the world including the Central Bank of the Russian Federation and the People’s Bank of China, both members of the BIS), as well as the « FED » (US Federal Reserve itself secretly controlled by EIGHT banks with British participation). All major banks and corporations in New Zealand and Australia are directly or indirectly controlled by the « City ».
    We have just written that the Fed was secretly controlled by eight banks with British participation. In 1973-1974, two United States Senate study committees conducted a survey of the top 324 American corporations; they found that these were in fact controlled by EIGHT large financial institutions: the Morgan Guaranty Trust Co., the Bankers Trust Co., the First National City Bank, the Chase Manhattan Bank, the Bank of New York, the Stade Street Bank and Trust Co., the Merrill Lynch Pierce Fenner and Smith and the Cede and Co. (group of New York Fellows).
    Note : Julius Évola said that one of the favorite tactics of « occult warfare » is to draw all the attention of the adversary to elements which are only partially or secondarily responsible for Subversion. Thus, the whole reaction is then unloaded on these elements, which have become scapegoats, or, as he writes elsewhere, « false objectives ».
    Link (french) :

  132. @antibeast

    You write:

    That [my suggestion that creditors take a 75% haircut] is called a debt default which would instantly trigger the catastrophic collapse of the USD debt pyramid …. Such a catastrophic collapse would make the GFC in 2008 look like a picnic.

    What I suggested is an HONEST default.

    Yes, it will affect the USD but the global financial system will do just fine after a tumultuous couple of years.
    That’s because the world will be UNSHACKLED from the USD-based global financial system and will then transition to a Yuan/Ruble backed system as the Sino-Russian Super hegemon establishes its rightful role at the head of the table.

    China with its huge manufacturing base and Russia with its resource base – each nation able to offer the world something of substance that can benefit our lives.
    Contrast that to the U.S, the greatest parasite in human history, that can only offer the world endless war, exploitation and hubris.

    The choice is obvious.

    If said honest default is initiated, the U.S will have the potential to rebuild trust and will live to fight another day – albeit with a lower standard of living.

    By not doing what I suggest, the U.S will spiral into an inflationary depression from which it will never recover.
    The latter course will be, BY FAR, the worse outcome for the U.S.

    • Replies: @antibeast
    , @nokangaroos
  133. @Achmed E. Newman

    I have always been cynical of all economic and political theories. They work well on paper, but seldom in real life. There have never been free markets. They have always been subject to some sort of regulatory measure imposed by a government, regardless of its nature. Irrespective of the economic system or theory, it is the those that hold political power that inevitably flourish at the expense of others.

  134. antibeast says:
    @Truth Vigilante

    By not doing what I suggest, the U.S will spiral into an inflationary depression from which it will never recover. The latter course will be, BY FAR, the worse outcome for the U.S.

    Doing what you suggest is like asking someone with terminal cancer to blow his brains out with a shotgun in order to end his misery.

    Imagine a debt-pyramid consisting of hundreds of trillions of USD-based financial assets bought with hypothecated loans from the \$30T of US T-bills owed by the US government. Then imagine those USD-based financial assets spread all over the world, across all asset classes, whether stocks, bonds, futures, derivatives, mortgages, etc. Next imagine demolishing the base of that USD-based debt-pyramid. The magnitude of the resulting financial collapse and the severity of the ensuing economic depression will probably result in the implosion of the US economy which will bear the brunt for the demise of the USD.

    That’s how bad the USA would find itself in were the USD to die a sudden death and would do anything to prevent the demise of the USD at all costs. This explains why the USA instigated the Ukraine Crisis which has destroyed the EU-Russia economic relationship while undermining the Euro. The next step is for the USA to destroy the EU in order to get rid of the Euro currency altogether. That way, the USA could force European nations to use the USD again, just like in the pre-Euro days, which is the American plot to save the USD.

    • Replies: @Truth Vigilante
  135. Mefobills says:

    Kakistocracy indeed.

    You are right about small tribes of people being able to regulate themselves. If you are a pyscho or sociopath, chances are you are not going to be able to BS the people, and lever yourself into power.

    Only in small tribe circumstances does democracy work.

    Also, the way that economics work, in order to have local economy requires some sort of local money and control from the center.

    Otherwise, the center has to be wise, and inject money from time to time into the local community.

    The other problem is imperialism, where others want to take your stuff. Russia is a case in point, where the Atlantacists want to break Russia up into so many new divisions, which in turn are put into dollar debts.

    So, here we are, we need a wise center, which can aggregate small local economies, to then protect themselves from outside aggression. The U.S. federation was supposed to work along those lines, where people band together for protection, but there is local economy in the States.

    But, then you can get an unwise King, and power corrupts.

    So, the eternal question. How to you get a wise king who is incorruptible. They have and do exist.

    It actually takes a unique personality type, usually an INTJ, which is a very small fraction of the population, and these types DO NOT WANT to go through the hassle of being elected. They have be selected. There has to be some sort of merit, testing, and then selection.

    Xi may be of this personality type as well. They are philosopher kings, Stoics. They measure everything and are cautious. They are widely read, and think through things several moves ahead.

    This is why Putin always outsmarts the many at think-tank landia in the U.S. It is also why so many are pissed off at Putin for being so cautious.

    There is no way that the Atlantacists are going to outsmart Xi and Putin together.

    Modern Western thought was funded into existence by our (((friends))) who invented parliamentary government, funded the reformation, funded enlightenment and other liberal traditions, which then allowed them to become a perpetual creditor elite.

    It actually will take the destruction of American democracy (because it failed) as the founders check and balances did not work. Also, since there is no longer an ethnic core population, things will get ugly. No philosopher kings, no long range planning, and you end up with a tower of babel.

    • LOL: meamjojo
  136. @RestiveUs

    Please excuse my limited vocabulary, I also misspelled ‘plow’, wrote ‘ploy’.

    But thanks for noticing, I appreciate corrections, they really do help with my writing.



  137. frontier says:
    @Truth Vigilante

    One of Hudson’s most prominent groupies is a fellow by the name of Bill. He also happens to be somewhat of a Mofo – hence the appropriate pseudonym he uses of ‘Mofo-Bill’

    Talking to Mofo and Hudson is like talking to drones, they have their agenda and they don’t deviate from it. I gave up on them years ago, figured, they were either the same person or at least working together. Hudson used to peddle higher deficits while claiming they don’t lead to inflation. AFAIK he’s dropped that line after inflation could not be hidden anymore.

    It’s pretty clear to me that we have a political problem, the economic woes are due to that and they will never be fixed by the current system of two parties with one glorious agenda… The economy would improve if we simply returned to the times when negative real rates were considered a crime along with Fed’s ballooning balance sheet and the pile of private assets in it.

    • Agree: Truth Vigilante
  138. @Truth Vigilante

    I’ve seen this clip before but thank you, T.V.

    Last week on the Peak Stupidity blog I posted an hour-long video of Peter Schiff being interviewed by Jimmy Dore* – “Peter Schiff explains it all – tell me somethin’ I DON’T know!”.

    Your video is unintentionally hilarious, as these 2 news idiots seem simply flabbergasted that Ron Paul has some kind of 6th sense as in a science fiction movie or Twilight Zone episode. “Oh my God!” the woman says. Hey, lady, do you understand that Ron Paul has actually used logic and simple economic knowledge to see what was going on. What happened was BOUND to happen, but you’d have only known that if you had only had a brain…


    * Mr. Dore was respectful and hardly said anything, because I think he knew he as clueless as the MSNBC folks are in your quick Ron Paul clip. Mr. Dore is more humble about it, though.

  139. @frontier

    Agreed. MefoBills with his MMT sales pitch is like Michael Scott in the scene below, and Truth Vigilante is Jim Halpert.

    I agree with you on some of your commentary, MF, such as democracy only working for small polities. However, this country was NEVER supposed to be one anyway, if you recall. The idea was to have a Constitutional Republic, if we could keep it. Alas the idiots here couldn’t…

    Thank you too, Irene Athena, for the great comments! It’s great to see that at least some people understand.

    This is one of my favorite scenes EVAH from my favorite show EVAH.

    • Thanks: Truth Vigilante
    • LOL: IreneAthena
    • Replies: @IreneAthena
  140. Sen Paul’s problem was his failure o spell out what over investment meant at the time. More importantly, he attempts rest the blame on Fannie and Bernie, he simply doesn’t have a gasp on the magnitude of the speculation.


    I have been thinking about how to respond to the inflation issues here. M views of the economy ignore the inflation deflation cycles whether caused by manipulative practices of shorting product or the money supply of the natural ebb and flow where supply and demand flux.

    We are operating on economic rules and practices in an economy that simply no longer exists. we are not only no longer attached to gold standard. We are not even attached to any real tangible standard at all. we measure debts and profits based on formulas encouraged by foreign bank protocols, we are now in Basel III implications – post collapse, which should speak volumes.

    Trying to comprehend the US economy that may or may be confined to US laws, practices, standards and institutions in light of this

    begs the question, why didn’t those in need of bailouts get their needed funds from the referenced banking and financial institutions instead of the public tax dollar.

  141. IreneAthena says: • Website
    @Achmed E. Newman

    Hi, Achmed E. Newman, and thanks. Since the “LOL” response is so ambiguous, I thought I’d clarify that the laugh was aimed at the Office video you shared. As Kali* mentioned elsewhere, it is becoming exhausting to follow the back-and-forth between Truth Vigilante and Mefobills but I guess I’ll stick my neck out one more time.


    The first time I heard about Keynesian theory, a voice whispered in my heart, or maybe it was my mathematical BS-detector gently beeping: “This is not the way. Look elsewhere.” It wasn’t until Ron Paul’s presidential runs in the 2008 and 2012 elections that I felt strongly enough about any candidate to “get involved.” His candidacy was based on ideas that made sense and seemed morally right: Austrian economic theory, and governance based on the non-aggression principle. (Yes, anarchists, I get it, you consider g.b.o.n.a.p an oxymoron.) I campaigned– hard — for Ron Paul. I remember getting a phone call from a local up-de-up from the Republican party. How dare I, she wondered loudly, support a Republican presidential candidate who practically guaranteed that Barack Obama would be elected instead? So, in order to prevent that eventuality, the best she and her ilk could do was to promote war-mongering neocons Mitt Romney and John McCain!!! I’m wondering if those election losers might’ve been even worse deals for the country/world than Obama ended up being, had either of them won.

    I was also accused of being an “anti-Semite(sic)” purely because I supported Ron Paul. (Those accusations were actually part of what STARTED my investigation into the meaning of the triple parentheses, and an understanding of how Dr. Paul’s peace-and-prosperity doctrine was not “good for the Zionists.” I never ended up becoming an “anti-Semite'(sic) as I know that Palestinians are Semites, too, and some Jews (e.g., Mondoweiss ) are not Zionists.) So, when terms like “LOLbertarian” get thrown around, I’m reminded of those accusations, and have to assess how much anything I have to say will change anyone’s mind. It seems like those conversations always devolve to pointless name-calling, usually from the MMT side. I understand that there are limitations to any system (completely free market vs. some protectionism via tariffs) but I haven’t seen anyone elected to a position at the federal level of government who has the integrity of Ron Paul and his son Rand, though like anyone else, neither is perfect. My disillusionment with the majority of those in power is nearly complete. I wish I could believe, as some do, that Putin and/or Xi are the saviors who will replace the corruption in the West. My concern is that corruption is exactly what they will replace: one form of corruption for another. That Satanic globalists would be satisfied controlling the West, and not the East, doesn’t sound like Satan, or globalists, either, for that matter.

    How to get through the disintegration of the splintered land of my birth, “the fall of the tower of Babel?” (I do agree with Mefobills’ description of what will come next in the US.) I can’t see or plan any farther into the future that that, or trust anyone beyond the boundaries of my world that is becoming narrower and narrower (say, a few counties within my state.)

    * HEY KALI, if you’re reading. Garden news. Last week, I cut up and planted pieces of some sprouted potatoes in and a few fennel. Thinned out the fruit on the apple tree, and covered a lot of remaining fruit with “maggot guards.” Yesterday, I bought more veggies starts that have to go into ground (or like those take-over-the yard fennels, into containers. I found a great use for those “sweet-gum” “Liquidambar styraciflua” spheres that look eerily like spike proteins and litter the yard every fall — fill the bottom third of large planters with them, and those planters won’t be so heavy to move around, and won’t use up so much potting soil.)

  142. @Mefobills

    Thank you very much for the interesting reply. I have heard of the “debt jubilee” before but I do not see anything like that ever happening in the USA. The “elite” (or whatever you want to call them) are just too greedy and I am afraid that they are going to “ride this thing to the end” and I do not think that will be very pretty.

    As far as I am concerned, all government “debt” is based on fraud, as is all other forms of debt, including the mortgage on my house.

    Take care…

    • Replies: @Achmed E. Newman
  143. @antibeast

    You write:

    Doing what you suggest is like asking someone with terminal cancer to blow his brains out with a shotgun in order to end his misery.

    No it isn’t.

    If inflation is NOT gotten under control, then your analogy above is correct.

    The risk that the U.S will enter an inflationary Depression that ultimately will lead to a TOTALLY WORTHLESS USD is FAR worse than the consequences of what my plan entails – I means it’s a NIGHT & DAY difference.

    You write:

    the resulting financial collapse ….. will probably result in the implosion of the US economy which will bear the brunt for the demise of the USD.

    There will be a limited implosion and then the U.S will begin to recover shortly thereafter – albeit from a lower base (with a reduced value USD that makes U.S exports competitive).
    On the flip side, we’ll see reduced purchasing power in terms of other currencies so that the U.S consumer is unable to suck up parasitically a disproportionate amount of the output of other nations – and all that will be richly deserved.

    After all, the U.S exploited the world for so long with its ‘exorbitant privilege’. Think of it as karma.

    You also write:

    [they] would do anything to prevent the demise of the USD at all costs. This explains why the USA instigated the Ukraine Crisis which has destroyed the EU-Russia economic relationship while undermining the Euro.
    The next step is for the USA to destroy the EU in order to get rid of the Euro currency altogether.

    Well then, how well did the Ukraine crisis work out for the USD ? It had the OPPOSITE effect !!
    The Russian ruble is the best performing currency in the world this year.

    It may not be evident to you but the rest of us can see it clearly.
    The U.S is run by INCOMPETENT FOOLS and the chess masters of Russia and China are dozens of moves ahead of them on the geostrategic grand chessboard.

    Yes, inflation is worse in Europe than in the U.S and the Euro will suffer disproportionately but that will only go on for so long as Europeans freeze next winter as they’re not able to pay for escalating energy costs and European industry is hobbled as they’re deprived of cheap and plentiful Russian natural gas.
    There will come a point where there will be an insurrection and the bought-and-paid-for politicians in said European nations that have prostrated themselves to the Anglo-Zionist empire will be turfed out.

    Soon thereafter the Euro experiment will come to an end as Germany goes back to the Deutsche Mark and other European nations revert to their own currencies.
    That way each nation will be sovereign as far as their own fiscal and monetary policy is concerned and the northern European nations will no longer have to prop up the profligacy of their southern brethren.

    • Replies: @antibeast
  144. @IreneAthena

    Thanks for that comment of yours.

    I’ve suspected this about you for some time IreneAthena but your remarks confirm it.
    You are an absolute treasure.

    • Replies: @IreneAthena
  145. IreneAthena says: • Website
    @Truth Vigilante

    Aw, back at you, TV. With so many voices telling us we are “useless eaters,” we need to be reminding each other that we are all Imagos Dei, no “upgrade” to transhumanity needed or wanted!

  146. antibeast says:
    @Truth Vigilante

    It’s not possible for the USA to default on its debt without destroying the USD and collapsing its USD-based debt pyramid. The only way for the USA to save the USD is to expand its USD-based debt pyramid by selling more USD-based debt to European nations. That’s what the USA plans to do with Europe once it destroys the EU and kills the Euro after the Ukraine Crisis is over.

    The USA behaves like a hungry wolf looking for its prey while the EU happened to be the fattest lamb on this planet. No way the EU will survive the crisis in Ukraine which the USA used as its sacrificial lamb to lure Russia into destroying the EU and kill the Euro. The USA will move into the EU pretending to be its savior but intending to devour the Europeans instead.

    You know the story of the boy who cried wolf? Zelinsky was the boy who cried wolf too often as the wolves finally arrived and devoured all the sheep in town.

  147. @Brad Anbro

    A debt jubilee would be another moral hazard that would teach the responsible among us to never, ever be responsible again! In Biblical days, it was known what years the debt jubilee would happen. Therefore, you would lend appropriately.

    You do this crap (which won’t happen anyway), and you get a deal like the student loan forgiveness going on right now – doesn’t even need a law, as the Dept. of Education just up and does it. See “Introducing Moar Moral Hazards – Case #2293”. Excerpt below the tag:


    There are really 3 pieces of moral hazard that have been pinched off and dropped onto American soil with this one, of different sizes. Let’s just think first about how a young person who had scrimped a bit in college, worked as much as he could, and maybe not bought that large pick-up truck on payments and not partied as hardy during his 4 years at the U, to keep his loans under \$10,000, might happen to feel upon reading this news.

    A significant number of graduates (or not) have been blowing off these loans, too.

    How about a guy who did accumulate more of a loan than he could have but made up for it by finding one of the fewer decent jobs left, working hard after college, and shoving money into that loan to be rid of it for peace of mind? He was too upright of a person to blow the loans off. How about that guy who spent another couple of years in graduate school, listened to his Dad about the job market, got married to a hard-working yuppie gal, OK, hopefully a hot yuppie, and they have not only paid off half their loans in 3 years, but they are making a lot of money, at least per the IRS tax forms?

    Besides all the taxpayers who really don’t have the hours in a day to think of all the ways the Feral Gov’t is screwing them over, all of these people are getting royally screwed over too. Their responsibility was not rewarded. Instead the Feral Gov’t is now making them into suckers. The 1st guy, like many, was responsible and forward-thinking enough to not accumulate as much debt as the banks and the university would have been glad to lend him. The 2nd guy made a great effort to pay off the loan quickly, in order to get ahead in life. The 3rd guy got ahead in terms of earnings, so the Commie part got him. All of them are losing out to the irresponsible who have done none of this.

    What are you supposed to think now? I know I’d decide soon enough that being responsible does not pay in this country. Next government project that comes along to “help” the American people? “I’ll take advantage of all of it, and I’m not gonna sweat it.” I know I’d be thinking like this. This sort of thing, being treated unfairly, really, really pisses people off.

    • Replies: @Brad Anbro
  148. Karl1906 says:

    They all wanted that war for sure.

  149. @Truth Vigilante

    – There´s still this little constitutional injunction against default that has
    propped up US credit rating way past expiry date …
    OK, screw the Constitution; after all, who´s gonna stop us?
    The problem is a default concerns only the funded debt (the \$31T) –
    how do you propose to finance the unfunded liabilities (pensions, veterans´
    benefits and the like, \$193T)? Nuclear blackmail is getting old all the time.

    – It´s going to be a slow-motion train wreck, and falling standards of living
    will be the least of worries.

  150. @IreneAthena

    Thanks for the story of your (real) economics education, Irene. Two things additionally:

    1) I HATE HATE HATE the ironic LOL that some commenters use the tag for. I simply assume that when someone puts that in, he thinks something is just plain funny. Yes, I figured you meant that The Office scene, of course.

    2) I told Ron Paul in person in early ’12 (just over 10 years back) that if he wanted to win the primary in [REDACTED] State, he needed to talk about illegal immigration. He didn’t blow me off, but then his reply was simply about “I stand for law & order, of course …”

    Can you imagine if Ron Paul had listened to me and started in on illegal immigration, even if not in the fashion of Donald Trump? If he could have gotten past the marginalization that he ended up getting from the Lyin’ Press, he could have been a 4-years-earlier, much smarter, and much more capable Donald Trump. What a missed chance.

    BTW, I like about everything that Ron Paul has to say – probably voted for him over 30 years ago and then various times. However, he didn’t get yet, at that time, that these people (even legally) being imported were not your Constitutionalist Libertarians. Not 1% of the 50-60-odd million newcomers of the last half-century will be donating money to the Rand Paul campaign, watching Ron Paul’s (and his sidekick’s) Liberty Report videos, or subscribing to Reason magazine (let’s put that mag’s idiotic open-borders stance aside here).

    However, I read a column on this site by Dr. Paul a few months back that had me realizing that he now DOES understand the problem. He didn’t use the same words I would, but he noted in his fashion that these immigrants are not the ones that will support Liberty and Freedom when it comes down to it.

    • Replies: @IreneAthena
  151. Mihilus says:

    FED should (and eventually will) go bankrupt. The only thing that keeping them afloat is the asset bubble they created. There is no way out and the only way to sustain it now is to keep feeding the inflation monster. And so they will. But eventually even that wont work any longer.

  152. Hillaire says:
    @mulga mumblebrain

    Exactly… but some fools still think the microsoft coff (the common cold or as ‘Bill’ now calls it ‘mild flu like disease that targets the old’ ) was a bio-weapon.. whilst those that really ‘know’..

    assiduously avoid the genetic ‘injectibles’…

  153. IreneAthena says: • Website
    @Achmed E. Newman

    I have a recollection of the immigration issue being discussed during Ron Paul’s “reLOVEution”——remember that bumper sticker?—but as one might imagine, the focus was not on “building the wall” or “sinking the boats,” but rather on stopping US foreign and economic policies that drive people out of their homeland in the first place: devastating wars of choice to maintain the Zionist and neocon/neoliberal world order; culture-crumbling coups all over the world, fueled by the Deep State; unfair (and poorly named) “free” trade agreements like NAFTA, where heavily subsidized US agribusinesses crossed the border, the other way, and destroyed the livelihoods of traditional farmers there.

    By the time Trump’s campaign started with his famous ride on the escalator, more people who had supported Dr. Paul had come to realize, as you already had, that immigration was actually being weaponized (as well as being quite the profitable racket for certain refugee “support” agencies.) Those Paul-to-Trump supporters were likely from the “paleo-conservative” flank of the “reLOVE-ution” Don’t forget Dr. Paul also had had a lot of support from former Democrats seeking refuge from what they realized was “just the alternate War Party,” and they would/will likely have to witness lifeboats being filled to capacity before they recognize the gravity of the situation. It took me a while, and I had always been more conservative than liberal, so I don’t know how many more of his supporters wouldn’t have been ready for the “build the Wall” approach back in 2008/2012. Was Ron Paul’s campaign choice to focus on elimination of causes of immigration sincere? naive? Or strategic?

    • Replies: @Achmed E. Newman
  154. IreneAthena says: • Website

    Kakistocracy! One word that can be used to show off one’s impressive vocabulary, while one enjoys something like the emotional release of cussing!

    There are some people who believe that Xi will be just the man needed to re-assemble what they hope will be the smoldering remains of the USA — and some of those people are Communists or at least socialists, but not all of them are. What resonates with that last “non” group is the meme of the serious Asian student banishing the noisy University-Safe-Spacers with his “hey! this is library!”

    I am not yet convinced that Xi is the answer.

    I hear there are some Chinese who do just fine, and some who do not, and a lot of the difference is made by whether or not one’s local Party members are wise, compassionate, decent people.

    Whether Xi is coming to (a) save or (b) enslave what might become the former USA— and even if he decides to leave the US alone, I am inclined to hold on to the remaining shreds of patriotism, strengthen bonds with people at the local level whom I can trust, and… maybe.. hopefully… see an American phoenix re-emerge… or if that project fails, definitely not my first choice, at least a local pool from which The Party can select one of those “wise, compassionate, decent” local leaders.

    • Replies: @Mefobills
  155. @IreneAthena

    Was Ron Paul’s campaign choice to focus on elimination of causes of immigration sincere? naive?

    I’d say both of these, and not “strategic”*. Let me put it this way, Athena:

    1) Yes, the warmongering by the US MIC since the end of the Cold War is terrible, unnecessary, and a squandering of trillions of dollars and much goodwill that this country has built up around the world by the end of the Cold War.

    2) Yes, there are lots of refugees due to the wars that this country started or was involved in.

    3) The immigrant invasion would be going on no matter if there was none of that. Not until this country gets (and it won’t take so long, the way it’s going) to an equal level with other shitholes rather than shitholier-than-thou before it would stop.

    Many call this an osmotic process. That’s fine, but then they say this is inevitable. It is not in ANY way inevitable. If our Globalist elites didn’t WANT the great replacement, there’s nothing, money or capability wise keeping this country from having as secure borders as, say, China.

    OK, the 2nd half of (3) was off the subject. Sorry.

    Thanks for the good conversation here.


    * I take it by the last one you mean strategic for his policy points/campaign. Ron Paul is such an honest guy that I really don’t think he’d do that. He had been somewhat ignorant, IMO, of the problems with the massive LEGAL immigration and ignorant of genetic differences that cause vast cultural differences (resulting in people coming that COULDN’T EVEN UNDERSTAND standing up for some Constitution thingy).

    As an example of his honesty, Ron Paul is against eVerify on Constitutionalist (4th Amendment) grounds. However, as much as the IRS, Motherland Security, NSA, and dozens of other Feral Gov’t orgs know about us, I think eVerify (the vetting out of illegal aliens for employment) is kid stuff compared to that, and worth doing.

    • Replies: @IreneAthena
  156. IreneAthena says: • Website

    (By the way I’m not Athena, who is a different commenter, but IreneAthena) By “strategic,” I did not mean dishonest, in any way. I meant “taking a first things first” approach to problems, first working on eliminating the problems a critical mass could agree ARE problems, rather than focusing on an approach that would alienate support for eliminating those primary problems.

    We’d be living in a really different country had Ron Paul been elected, a better country, a safer world. But then again, we’d have needed to be living in a different country in order for Paul to get elected. No use talking about what- might-have-beens now.

    And everything you said about Globalists: agree.

    • Replies: @Achmed E. Newman
  157. Bert says:

    In 1980 human capital in the U.S. was much more solid than 42 years later. Many citizens could understand the necessity for higher interest rates (Fed funds rate of 20% briefly) and a sharp recession. There were fewer grifters and man-children among the populace, and even among the politicians. The resolution now will be far more painful and chaotic. Nobody will be buying high rate U.S. Treasuries to hold for 30 years as was reasonable in 1981. A 30-year bet on a country where parents vaccinate their babies against a non-existent risk? Would be a crazy bet. This country turned to shit since ’81: the human capital, the politics, the ability to think, the will to resist. Warlords need to protect their population base, so they will do a better job.

    • Replies: @Achmed E. Newman
  158. IreneAthena says: • Website
    @Achmed E. Newman

    #160 was a reply to you; I forgot to hit Reply.

  159. Mefobills says:

    The former U.S.A failed because of the open back door.

    Unless the rear door failure mode is fixed, then any new country will fail again:

    Kakistocracy does sound like cussing!

    • Agree: A B Coreopsis
    • Replies: @IreneAthena
  160. IreneAthena says: • Website

    Goodness, no! I have been resisting, and will continue to resist, turning my country over to NATO and the neocons, and I’m not about to naively agree to see it yielded to Russia, China, especially not to the “2+2 = 5 and if you contradict me for making that claim, you’re a racist” set.

    That said, Whites like me who are “on record” going against the official Covid19 narrative have been put on a White Supremacist “watch list.” There’s a Hegelian effort to get Whites like me and Blacks like me hating each other, but I’m not playing their game. Click on my website link if you don’t believe me.
    * wanders off, muttering, “Kakistocracy.”*

  161. @IreneAthena

    Firstly, sorry about using the wrong name. I had been writing Irene but then mistakenly took the last part of your handle. I did see your reply to me too, but it’s been a very long day (up 20 hours right now, but I wanted to get this reply in to you).

    I see what you meant by “strategic”. The thing is, illegal immigration issue was simmering in ’12 just as in ’16 when Trump used it (not in a bad way of “used”, BTW) to get to the Presidency. Not only would the issue have likely gotten Ron Paul past most of the roadblocks of the Lyin’ Press, but he’d have been more of a man of his word, in 2 senses:

    1) Trump can just plain be a bullshitter – he’ll promise something that he has no plans about and has no idea about how it could be accomplished. Ron Paul is very honest.

    2) Trump really wanted to get certain things done, but he didn’t know how to build strategies to do these things. Ron Paul knows what goes on in Washington, and would have been able to keep his word better by knowing how to handle the opposition.

    I don’t know if you mean that Ron Paul was perhaps being careful with his speech, so he could get in a position to do something to help. One thing I DO appreciate about Donald Trump is that he knew the Lyin’ Press was completely against him, so he didn’t even try to please them or play their games. He enjoyed pissing them all off (still does), as I would too!

    Yeah, that’s what might have been. What WILL BE is major economic failure, with the coming collapse of the US Dollar. How we go through that, and what comes out on the other side, is why we should be making plans now.

  162. @Bert

    Yes, we were in a much better position 40 years ago, Bert, but it isn’t just that the stupidity of the people has increased. In 1980, America was still a manufacturing powerhouse. Most products Americans used were made here, and we exported goods all over the free world. That is not the case today. There is no big wealth creation to back up the bad economic practices.

    • Agree: Adam Smith
  163. The fat lady is warming up. Wiemar America is here. The idea that the usual suspects are going to get away with it this time is hilarious. They already failed in the summer of 2020. The so called race riots were the attempt at a color revolution. They failed because white men with guns kept the savages hemmed into the cities they control.

    Its all over but the shouting. Unfortunately the shouting is going to last for awhile.

    Ron you should gather your wealth and go to Israel before you get run off.

  164. @frontier

    “The economy would improve is we simply returned to the times…”

    An incredibly detailed and insightful observation which is imminently diable to boot.


  165. @Mefobills

    Your argument spans the positions of Aristotle to the concept of Mandate of Heaven — and would seem to account in part for the cyclicality of empires. But your observation that (((their))) control of western institutions strongly suggests that the nadir of the cycle for the West will extend most readers’ lifetimes.

    In unfettered capitalism, there is only one endpoint — oligarchy.

    • Replies: @Truth Vigilante
  166. @A B Coreopsis

    You wrote:

    In unfettered capitalism, there is only one endpoint — oligarchy.

    How would you know the endpoint of unfettered Capitalism – seeing as the only thing close to unfettered Free Market capitalism existed before the formation of the Federal Reserve in 1913 ?

    The fact is, the Oligarchy we have today came about under Socialism and is a byproduct of Crony Corporatism. ie: the antithesis of capitalism.

    America is not called the U.S.S.A for nothing you know.

  167. @Achmed E. Newman

    “Achmed” –

    Thank you for the reply. I agree with most of what you have said. No, we will not see any kind of a “debt jubilee” in the USA, or anywhere else for that matter, because the “elite” want it all and they will not stop until they get it all – with the complicity of BOTH political parties.

    Lately I have been thinking that I have lived my life just the opposite to what I have lived these past 71 years on this earth. Instead of becoming a skilled industrial electrician, working in various factories in that capacity for 40+ years, working thousands of hours of overtime, saving money and living within my means and accumulating a modest retirement savings, I should have been an ordinary United States dead-beat, borrowing to the hilt, etc.

    Now in my retirement, my income is still being taxed and we have more free-loaders in this country than ever before. But they are not the only ones. ALL the politicians are at the trough feeding, as well as all of the corporate welfare going on. Not to mention the bloated, fraudulent military, the out of control courts lawyers and police and the phony “war on drugs” and the “war on terror.”

    I hold out absolutely NO hope for my country or for the rest of the “civilized” world, for that matter.
    ALL of the problems that humanity faces could be solved with today’s technology and some common sense. But “they” do not want any of these PLANNED problems solved; there is just too much money to be made with leaving things just as they are. Sad…

    Thank you.

    • Agree: Achmed E. Newman
    • Replies: @Truth Vigilante
  168. @Brad Anbro

    I agree with the bulk of your comment except for the second half of this sentence of yours:

    I hold out absolutely NO hope for my country or for the rest of the “civilised” world, for that matter.

    As you rightly point out, there is next to no hope for the U.S and it will descend into the abyss as the coming inflationary depression implodes your economy.

    However, for the vassals of the U.S (like Australia where I live), once the U.S descends into civil unrest as most American cities come to resemble a Mad Max post apocalyptic movie set, by that stage the USD will have lost its reserve currency status and the Zio oligarchy in your country will be so busy focused on the domestic unrest and turbulence that they won’t have the time or the power of intimidation to threaten said vassals.

    That being so, countries like Australia and the western European former vassals will be signing on to the Chinese Belt and Road initiative and establishing trade and diplomatic ties with Russia as well.

    After all, the Afghanistan and now the Ukraine debacles have emphatically proven that the U.S alleged Full Spectrum Dominance is nothing more than an illusion.
    America’s military backing in any conflict is next to worthless – as was proven in Syria (despite CIA/Mossad training and logistical support for the head chopping ISIS mercenaries).

    Nations around the world will flock to establish good relations with the Sino-Russian SUPER HEGEMON because prosperity will be assured within their orbit.

    Those that stay tethered to the U.S will sink into the depths of the Mariana Trench with them.

    Simply put, there is much optimism for the rest of the civilised world once America’s demise is complete and irrevocable.

    In fact, America’s demise will USHER IN A PERIOD OF PEACE AND PROSPERITY the likes of which the world has never seen – at least not in living memory.

    The sooner said countries can abandon ties with the Anglo-Zionist empire (of which the U.S is the epicentre), the sooner their economies will flourish.

    I’m sorry to say these things about the U.S and I wish it were otherwise, as there are many decent people in your country like your good self and countless others that will end up as collateral damage.

    But unfortunately those ‘warriors’ in your armed forces that are/have been in a position to do their sworn duty and uphold the constitution have not had the guts to do it.
    ie: conduct a coup and overthrow the ZOG dictatorship that has run America into the ground.

    • Replies: @Brad Anbro
  169. @Truth Vigilante

    Thank you very much for the reply and OK about you living in Australia. I have talked with Australians (and New Zealanders) many times with my amateur radio (ham radio) hobby.

    I am guardedly optimistic about the rulers of Russia and China pursuing avenues of cooperation, rather than confrontation and exploitment, as is the case with “my” country’s foreign policy. I may be wrong, but Mr. Putin strikes me as being a very intelligent and practical person. I do not know very much about the persons in China’s government.

    Thanks again…

  170. “…Mr. Chairman, we have in this Country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks – This evil institution has impoverished and ruined the people of these United States, has bankrupted itself, and has practically bankrupted our Government. It has done this through the defects of the law under which it operates, through the maladministration of that law by the Fed and through the corrupt practices of the moneyed vultures who control it”

    From: “Financial Interests Should Not Dictate Foreign Policy of United States Government.” U.S. Congressional Record, Thursday, June 15, 1933 (legislative day of Wednesday, June 14), by Louis T. McFadden, who was Chair of the House Banking Commitee.

    Since its inception, in 1913, the Federal Reserve was crooked to the core.

    Also, since its inception, ALL the bosses of the Federal Reserve have been jewish (except for one)… What a goddamned coincidence!

    But lizzard of booze claims that the Fed is an innocent institution that is part of the federal government… It is NOT! It’s a private corporation owned by the jewish banksters.

    What I quoted above is a congressional record, so, hard evidence. The resident trolls would have trouble defending the fed against these well-founded accusations by senators and congressmen. Still, they have to try, I guess, they are just boot-licking servants…

    By the way, shortly after his tirade against the Fed and the jewish banksters who own it, Mr McFadden was murdered… Just another coincidence, of course…

    I have lots of specific info like this in my hard drives… I’ll be releasing it little by little, to diisseminate the information, and also to torment the resident trolls, who have the obligation to defend their masters but will have trouble defending the indefensible muahahahahahaaa!

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