Debt And Inflation Are Bringing The Economy Down

A determined government can always create inflation.

– Ben Bernanke

BALTIMORE, MARYLAND – “Fed Adds $82 Billion to Financial Markets.” That’s the headline on page B12 of today’s Wall Street Journal, reporting on Tuesday’s Federal Reserve action. On Monday, the Fed added $60 billion.

This “repo madness” has been going on for four months.

It’s time to ask some questions…

From Theoretical to Desperate

Who is the biggest debtor in the world? Who is already scheduled to borrow another $20 trillion in the next 20 years?

Who has the biggest bet against the U.S. currency and U.S. government bonds? Who then has the greatest interest in seeing the U.S. dollar… and U.S. bonds… go down? Who would gain as much as $23 trillion if the dollar went the way of the Venezuelan bolívar tomorrow?

And who is in a position to make it happen?

The answers to those questions are all the same: the U.S. government. Nobody stands to make more from inflation and a fall of the dollar and U.S. dollar bonds.

In August of last year, that interest was still mostly theoretical. In September, it became real. Soon, it will be desperate.

Shrimp Gumbo for Thanksgiving

Yes, Dear Reader, if you let the turkeys decide it, you’ll have shrimp gumbo for Thanksgiving. And these turkeys will make damned sure the dollar goes down.

U.S. debt cannot be repaid. Donald Trump promised to pay it off in eight years. Instead, he’s adding to it at a rate of nearly $100 billion per month. And these deficits can’t be covered by honest borrowing or taxation. That leaves the Fed’s (fake) money printing; it’s the only way out of the debt trap.

Yesterday, “investors awaited inflation data for more clues on Fed policy,” said the news media. They’re wasting their time. The agenda is already set… the strategy is already determined… the Fed’s fate – and ours, too – is sealed.

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