Things are starting to look weird, eerie, dangerous and sinister!
1.3 Billion people of India shut down
200 Million in Pakistan shut down
Many poor people in those countries are on daily wages...how long they can survive even if they receive meagre alms from the government!
This is the first time I came across some debunking about a prevalent narrative from Germans. Remember German do not fool around.
Corona virus --- real virus mutating or from a bio lab or from a live animal maket in Wuhan is one thing and FED giving a biggest bailout in the history of mankind is another.
For health I pray---- for FED I follow the money trail.
US debt to gdp ratio is 108%. According to world bank the percentage should be below 77%. That means if the ratio is above 77% the holders of US debt can demand a higher interest rate due to the increase in risk factor.
USD is a leading world reserve currency meaning even if they print dollars it doesn't create inflation as being a reserve currency it has the "Trust" not only in US economy that the GDP of the US economy is so strong that it can sustain limitless printing of currency but also the world GDP backs up the currency. A Devine concept of sorts that God has given you limitless resources and so infinite resources requires infinite currency that trades in those resources (note the economics books first chapter starts with resources are scarce and demand is unlimited a contradiction there or at least what all else should believe in). And so FED can print USD whenever needed to stimulate economy and it does this by a process called monetizing the debt and by issuing treasury bonds. Japan and China are biggest USA treasury bond holders. They are the two countries with highest exports to USA...While Japan is under US occupation China is reducing its stock of US bonds.
Recently Jerome Powel said:
"When it comes to lending, we’re not going to run out of ammunition," Powell said. "That doesn’t happen."
With this debt monetization Fed does bailouts of its banks and corporations as those entities indulge in steeling and robbing peoples monies and when everything is robbed and they cannot exist any more they are given a bailout shot to keep them alive and keep the financial system intact. Fed has done bailouts throughout its history but 2008 was one of the biggest. This process keeps inflating the US debt bubble. US government that is funded by US tax payers pays interest on it. In essence US citizens generation after generation are now under debt. But this debt is now so huge that it is un payable more on this latter.
Fed didn't fix the problem in 2008. Fixing in the form of decreasing spending: 800 military bases, useless defense toys such as 1 trillion dollar disaster called F35 Jet and Wars etc and so 2008 bail out was a temporary stop gap solution. Those bailed out banks in US invested the free tax money in stock markets. The problem was a ticking time bomb as without controlling the spending and with Clinton globalization US is not producing enough physical goods to leverage the deficit financing without debt monetizing or quantitative easing.
Fast forward to September 2019 then something happened in money markets. US banks stopped honouring Fed treasury bills in the repo trade. To get a detail understanding of the repo trade read here but the take away is the fed had to intervene by providing more liquidity in the market to keep the "system running".
As this repo trade turmoil was on going come Jan a new corona virus was detected in China. While Trump and company were singing songs of exceptional nation of the world and didn't take immediate precautionary measures Corono Virus silently spread through out USA.
As of now most of the US is shut down except one thing FED printing press.
Apart from the liquidity that FED was injecting for repo market. FED behind the facade of Corona Virus did a bailout of $6Trillion!.
Now lets get back to US debt being un payable. Here is how...China is reducing its stock of US treasures. US sanctioning any country that wants to have an independent approach, many countries want to avoid trade in US dollars. Putin Discusses this here:
The cherry on the cake turned out to be Putin declining to lower the oil production and in one master stroke Putin is taking out the House of Saud and US Shale oil producers. Rest US tax payers are biggest financiers of US debt. Well most of the US population especially in flyover states is unproductive(jobless), homeless and no means to pay for health insurrance. I came to know that kids in US schools have to rely on meals provided by school by Step Curry instagram post:
Wow! People in USA cannot feed themselves what to talk about paying taxes. And so the only remaining weapon left in USD is the trust inertia that may go on for another decade. Decade was my guess before the COVID 19. After COVID 19 world changed and now things look really bleak. In any case once that Trust Inertia is gone or some one calls Emperor has no cloths (meaning there is no reason to honour USD as it has no value) US will be bankrupt! USA will be un able to pay its debt. What follows after that? Well social unrest for sure. This is why I call this bailout to be the last tango of federal reserve.
Lastly enjoy this scene from movie catch me if you can. The printing press and flying treasury bills provide a glimpse of times in front of us.
1.3 Billion people of India shut down
200 Million in Pakistan shut down
Many poor people in those countries are on daily wages...how long they can survive even if they receive meagre alms from the government!
This is the first time I came across some debunking about a prevalent narrative from Germans. Remember German do not fool around.
Corona virus --- real virus mutating or from a bio lab or from a live animal maket in Wuhan is one thing and FED giving a biggest bailout in the history of mankind is another.
For health I pray---- for FED I follow the money trail.
USD is a leading world reserve currency meaning even if they print dollars it doesn't create inflation as being a reserve currency it has the "Trust" not only in US economy that the GDP of the US economy is so strong that it can sustain limitless printing of currency but also the world GDP backs up the currency. A Devine concept of sorts that God has given you limitless resources and so infinite resources requires infinite currency that trades in those resources (note the economics books first chapter starts with resources are scarce and demand is unlimited a contradiction there or at least what all else should believe in). And so FED can print USD whenever needed to stimulate economy and it does this by a process called monetizing the debt and by issuing treasury bonds. Japan and China are biggest USA treasury bond holders. They are the two countries with highest exports to USA...While Japan is under US occupation China is reducing its stock of US bonds.
Recently Jerome Powel said:
"When it comes to lending, we’re not going to run out of ammunition," Powell said. "That doesn’t happen."
With this debt monetization Fed does bailouts of its banks and corporations as those entities indulge in steeling and robbing peoples monies and when everything is robbed and they cannot exist any more they are given a bailout shot to keep them alive and keep the financial system intact. Fed has done bailouts throughout its history but 2008 was one of the biggest. This process keeps inflating the US debt bubble. US government that is funded by US tax payers pays interest on it. In essence US citizens generation after generation are now under debt. But this debt is now so huge that it is un payable more on this latter.
Fed didn't fix the problem in 2008. Fixing in the form of decreasing spending: 800 military bases, useless defense toys such as 1 trillion dollar disaster called F35 Jet and Wars etc and so 2008 bail out was a temporary stop gap solution. Those bailed out banks in US invested the free tax money in stock markets. The problem was a ticking time bomb as without controlling the spending and with Clinton globalization US is not producing enough physical goods to leverage the deficit financing without debt monetizing or quantitative easing.
Fast forward to September 2019 then something happened in money markets. US banks stopped honouring Fed treasury bills in the repo trade. To get a detail understanding of the repo trade read here but the take away is the fed had to intervene by providing more liquidity in the market to keep the "system running".
As this repo trade turmoil was on going come Jan a new corona virus was detected in China. While Trump and company were singing songs of exceptional nation of the world and didn't take immediate precautionary measures Corono Virus silently spread through out USA.
As of now most of the US is shut down except one thing FED printing press.
Apart from the liquidity that FED was injecting for repo market. FED behind the facade of Corona Virus did a bailout of $6Trillion!.
Now lets get back to US debt being un payable. Here is how...China is reducing its stock of US treasures. US sanctioning any country that wants to have an independent approach, many countries want to avoid trade in US dollars. Putin Discusses this here:
The cherry on the cake turned out to be Putin declining to lower the oil production and in one master stroke Putin is taking out the House of Saud and US Shale oil producers. Rest US tax payers are biggest financiers of US debt. Well most of the US population especially in flyover states is unproductive(jobless), homeless and no means to pay for health insurrance. I came to know that kids in US schools have to rely on meals provided by school by Step Curry instagram post:
Wow! People in USA cannot feed themselves what to talk about paying taxes. And so the only remaining weapon left in USD is the trust inertia that may go on for another decade. Decade was my guess before the COVID 19. After COVID 19 world changed and now things look really bleak. In any case once that Trust Inertia is gone or some one calls Emperor has no cloths (meaning there is no reason to honour USD as it has no value) US will be bankrupt! USA will be un able to pay its debt. What follows after that? Well social unrest for sure. This is why I call this bailout to be the last tango of federal reserve.
Lastly enjoy this scene from movie catch me if you can. The printing press and flying treasury bills provide a glimpse of times in front of us.
