The Next Gold Rush Is Here

DREAM DUO WITH 150 YEARS’ EXPERIENCE

So if Yellen is appointed Treasury Secretary, we have a dream team with extensive executive experience in expanding debt and printing money. Talking about the experience, has there ever been a president and treasury secretary whose ages add up to over 150 years? I doubt it and sadly their long money manufacturing experience is the wrong medicine for the US.

Ahead for the new administration lies the arduous task of keeping the sinking “SS US ECONOMY” afloat.

Certainly not an enviable task. Because the end game is virtually certain. Ships can go down very quickly or it can be a long drawn-out affair.

This particular ship is already loaded with $80 trillion total US debt of which the government has issued $27 trillion and the Fed printed $7 trillion. Add to that derivatives and unfunded liabilities of at least $1/2 quadrillion. So say a total of $600 trillion in US debt including liabilities that will become debt.

DEBT WEIGHT – 150,000 747 JUMBOS

Just as an illustration, $600 trillion in $100 bills would weigh 60 million tons. This weight corresponds to 150,000 747 jumbo jets. With that amount of debt load, no wonder the ship will sink quickly.

It is obviously not surprising that governments are planning to do away with paper money in favor of CBDC (Central Bank Digital Currency). So much easier to stick the total debt of $600t on a small usb stick that weighs a few grams.

EXPONENTIAL PHASE OF QE IS HERE

And that is the way that central banks will try to fool the world, by shrinking the money supply to a binary code of Zeros and Ones in a reset. But even if that does away with paper money, creating a digital currency does not change anything. It will just become a new form of fiat that can be expanded at will but with the same problems as paper money.

What we do know is that the exponential phase of global QE has just started.

Just three central banks, the Fed, ECB, and BoJ have printed $7.5 trillion since March 2020, by expanding their balance sheets by 50% from $14.5t to $22t in November.

Morgan Stanley estimates that for 2021, central banks will print a total of $300 billion per month. This seems much too low, bearing in mind that major parts of the world are in lockdown with 100s of millions of people either furloughed or redundant and with many businesses going under.

View single page >> |
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.