Recent remarks by Trump and his top economics advisor Larry Kudlow that interest rates must be lowered and that Jerome Powell and the Fed have hurt the economy and the stock market’s potential.
Considering the Federal Reserve has pumped the stock market full of fake money and that the stock market is a giant bubble, we aren’t quite sure about that. Of course the President as well as Stephen Moore are not anti-Fed. They just want a DIFFERENT kind of central planning to happen. It’s really down to picking between two terrible things, but with that said, interest rates were hiked quite a bit in recent days due to the Fed desperately attempting to avoid the inevitable… Negative interest rates… In the past, the Fed has always dropped rates 5-10% in a downturn.
Considering the inverted yield curve data which always signifies a recession, at the very best, interest rates will have to drop at this rate to about -2.5%. It’s an absolute joke. All fiat currencies eventually revert to their true value of zero eventually as they always have. The issue here is what the Fed among other central banks of the world are attempting to do to avoid their own downfall. With negative rates in Japan and Sweden, we see the growth of a centrally planned cashless society.
China and India are the leaders in bringing technocratic technology to the next level. It’s so overwhelming it should concern everyone. This was always the goal. You cannot have a bank run in a truly centrally planned cashless society. All of peoples’ money goes through the bank. People don’t own their money if it’s in the bank and the bank has no promise of giving your money back. They will essentially own you. Depositor insurance as it is, is incredibly low and people like Mario Draghi wants to eliminate the insurance all together. So now all transactions will be able to be tracked, taxed, etc.
Another thing that plays into this is the likes of social credit scores like we see in places like China. This will not end well which is exactly why people need to decentralize and diversify. In our opinion, everything from gold and silver to decentralized cryptocurrencies and blockchain infrastructure that’s outside of the government enforced legal tender law system. The competition of currencies is crucial. The ability to be outside of the fractional reserve system is also crucial. There are more solutions than problems.
The U.S. economy’s size makes it resilient. It is highly unlikely that even these events could create a collapse. When necessary, the government can act quickly to avoid a total collapse.
The Federal Reserve can avoid a financial collapse with a few phone calls. For example, it can use its contractionary monetary tools to tame hyperinflation. The Federal Deposit Insurance Corporation insures banks. There is little chance of a banking collapse similar to that in the 1930s.
The president can release Strategic Oil Reserves to offset an oil embargo. Homeland Security can address a cyber threat. The U.S. military can respond to a terrorist attack, transportation stoppage, or rioting/civil war. In other words, most federal government programs are designed to prevent just such an economic collapse.
But these strategies won’t protect against the widespread and pervasive crises caused by climate change. Rising sea levels, depletion of fish stocks, and extreme weather are just some of the effects. If nothing is done, the World Bank warned that temperatures will increase by 4 C if nothing is done. That’s when all the ice sheets in Greenland and West Antarctica would melt. Sea levels would rise 33 feet, flooding every major coastal city. Once sea levels rise 10 feet, it would flood 12.3 million people.
Seas would continue to rise by one foot per decade. That’s too fast to allow humans to build anew. The damage would exceed $600 trillion, double the total wealth of everyone on the planet. That would shrink the global economy by 20% from what it is today. That’s worse than the worst year of the Great Depression.
20 SIGNS THAT A HORRIFIC GLOBAL FOOD CRISIS IS COMING.
Are you ready for the collapse of the agricultural system? In this video I go over all of the factors which threaten the global food supply. Consumerism, overpopulation, urbanization, pollution, biodiversity, monoculture, farming practices, water shortages, herbicides, pesticides, fungicides, overfishing, geopolitics, bee extinction, monopoly (big agri), genetically modified food, global warming, soil erosion, land loss. drought, are just some of the many challenges to our way of life. GET READY.
According to the World Bank, 44 million people around the globe have been pushed into extreme poverty since last June because of rising food prices.
The world is losing topsoil at an astounding rate. In fact, according to Lester Brown, “one third of the world’s cropland is losing topsoil faster than new soil is forming through natural processes”.
Due to U.S. ethanol subsidies, almost a third of all corn grown in the United States is now used for fuel. This is putting a lot of stress on the price of corn.
Due to a lack of water, some countries in the Middle East find themselves forced to almost totally rely on other nations for basic food staples. For example, it is being projected that there will be no more wheat production in Saudi Arabia by the year 2020.
Water tables all over the globe are being depleted at an alarming rate due to “overpumping”. According to the World Bank, there are 130 million people in China and 175 million people in India that are being fed with grain with water that is being pumped out of aquifers faster than it can be replaced. So what happens once all of that water is gone?
In the United States, the systematic depletion of the Ogallala Aquifer could eventually turn “America’s Breadbasket” back into the “Dust Bowl”.
Diseases such as UG99 wheat rust are wiping out increasingly large segments of the world food supply.
The tsunami and subsequent nuclear crisis in Japan have rendered vast agricultural areas in that nation unusable. In fact, there are many that believe that eventually a significant portion of northern Japan will be considered to be uninhabitable. Not only that, many are now convinced that the Japanese economy, the third largest economy in the world, is likely to totally collapse as a result of all this.
The price of oil may be the biggest factor on this list. The way that we produce our food is very heavily dependent on oil. The way that we transport our food is very heavily dependent on oil. When you have skyrocketing oil prices, our entire food production system becomes much more expensive. If the price of oil continues to stay high, we are going to see much higher food prices and some forms of food production will no longer make economic sense at all.
At some point the world could experience a very serious fertilizer shortage. According to scientists with the Global Phosphorus Research Initiative, the world is not going to have enough phosphorous to meet agricultural demand in just 30 to 40 years.
Food inflation is already devastating many economies around the globe. For example, India is dealing with an annual food inflation rate of 18 percent.
According to the United Nations, the global price of food reached a new all-time high in February.
According to the World Bank, the global price of food has risen 36% over the past 12 months.
The commodity price of wheat has approximately doubled since last summer.
The commodity price of corn has also about doubled since last summer.
The commodity price of soybeans is up about 50% since last June.
The commodity price of orange juice has doubled since 2009.
There are about 3 billion people around the globe that live on the equivalent of 2 dollars a day or less and the world was already on the verge of economic disaster before this year even began.
2011 has already been one of the craziest years since World War 2. Revolutions have swept across the Middle East, the United States has gotten involved in the civil war in Libya, Europe is on the verge of a financial meltdown and the U.S. dollar is dying. None of this is good news for global food production.
There have been persistent rumors of shortages at some of the biggest suppliers of emergency food in the United States. The following is an excerpt from a recent “special alert”
HOW TO START A HIGH-PERFORMANCE HOMESTEAD FROM THE GROUND UP…
Homesteading is the only (legal) way I know of to become almost completely self-reliant from the food corporations, the utilities companies, the Government and Big Pharma… by harvesting hundreds upon hundreds of dolars of organic food year-round, and collecting thousands of gallons of crystal-clear drinking water for free…
To take back your health by growing your own groceries, and making your own food out of basic ingredients, such as cheese, bread and even chocolate to name a few…
Then you could stockpile the excess produce for dark days… (The shelf life of ingredients is longer than that of the resulting foods, anyway…) So while other preppers pay thousands for overpriced, highly-processed “emergency food”, you’ll build your survival stockpile for free…
It’ll be like having your own personal supermarket just a few feet away from you… Though not the kind that sells processed meat full of hormones and steroids, veggies full of pesticides that have absolutely no taste at all, not to mention and all the other junk full of preservatives…
If you want to understand what life is like during a collapse, talk to people who lived through the Great Depression. The stock market collapsed on Black Thursday. By the following Tuesday, it was down 25 percent. Many investors lost their life savings that weekend. The Dow didn’t recover until 1954.
By 1933, one out of four people were unemployed. Wages for those who still had jobs fell. U.S. gross domestic product was cut in half. Thousands of farmers and other unemployed workers moved to California in search of work. Most became homeless hobos or moved to “Hooverville” shantytowns.
And while this brand of willful ignorance is not unique to America, it is yoked to the particularly American culture of abundance — and an ideology of domination and invincibility that dates to the end of the second world war. Over the last 18 years, however, that ideology has been compromised: by 9/11, of course, but also by a series of natural disasters and the near-collapse of the global economy. Fears that were once the provenance of paranoids feels increasingly, persuasively, like logical. As Rawles tells me, “The whole base is growing. Conservatives do not corner the market on common sense.”
The America we are accustomed to is no more. Practically overnight the stock market has plum-meted, hyperinflation has crippled commerce, and the fragile chains of supply and high-technology infrastructure have fallen. The power grids are down. Brutal rioting and looting grip every major city. The volatile era known as “the Crunch” has begun, and this new period in our history will leave no one untouched. In this unfamiliar environment, only a handful of individuals are equipped to survive.
“Prepping is the way that people have always lived,” Bedford says. “At an archaeological site, they’ll find a big drum of wheat, or a huge thing of that held honey: Food storage basics go back for so long! So when did the shift happen? When did being completely unprepared for everything — and always flying by the seat of your pants — when did that become a virtue?”
The ones who prepare for the worst outcomes are typically the ones who land on their feet. It’s when you do not open up your mind to the possibility of downside that you’ll be caught flat-footed, and potentially take a much bigger hit than you otherwise would have experienced.
If a U.S. economic collapse occurs, it will happen quickly. No one would predict it. That’s because the signs of imminent failure are difficult to see.
Protecting yourself from a U.S. economic collapse is difficult. A catastrophic failure can happen without warning. In most crises, people survive through their knowledge, wits, and by helping each other. Make sure you understand basic economic concepts so you can see warning signs of instability. One of the first signs is a stock market crash. If it’s bad enough, a market crash can cause a recession.
Second, keep as many assets as liquid as possible so that you can withdraw them within a week. In addition to your regular job, make sure you have skills that you’d need in a traditional economy, such as farming, cooking, or repair.