More Inflation is Needed to Keep the Financial Expansion Alive
Inflate or Die
Negative Interest Rate Mortgage
The solution out of this Mess is ready for implementation
The world’s monetary debt-backed monetary system of the Rothschild Central Banks’ days are numbered. It is irreparable and according to their plan, was already poised long ago to be replaced by its successor, the SDR-monetary system of the IMF. That was planned to be implemented after a major event had taken place, marking the start of WW3. Fortunately, the cabal has now been driven into a corner and their original plan cannot be implemented, despite their many attempts to force a war first with the Ukraine and now with Iran. Top cabal puppet Benjamin Netanyahu, among others, has been at the forefront of the efforts to provoke this full-scale war.
Today’s monetary system works on false debt backed money, which is a do-it-yourself version of inflation to rob the people blind of their purchasing power. It is not without reason that it has been deemed illegal. It is a classic example of large-scale fraud, pretending that this new money represents real wealth. The only people who can get away with this type of scam are those who work for the government; they claim that their counterfeiting stimulates the economy. Which is nonsense.
The counterfeit money is introduced into the economy in a number of different ways. Over the last 30 years, it has mostly gone into financialised assets through monetary back alleys, and stayed there. Of course, this was great for people who owned stocks, real estate and bonds. The top 10% of the population, watched its wealth grow from about $20 trillion 30 years ago to about $75 trillion today. During that same time, U.S. GDP rose only $15 trillion — which is about what the bottom 90% gained in wealth during that time. The proof has been amply provided that the Monetary system is Dysfunctional, as short-term funding dried up and liquidity panic broke out, which was confirmed by the recent already 5 overnight in a row Repos to save the financial system. As $84Billion was needed, only $75Billion of the Central Bank Bailout money became available for the Banks, so someone didn’t get their funds?
It should be known, that USA Inc. in the meantime had to pay $ 1,000 trillion of debt repayment to the Chinese Elders at the end of September, for which they received on their request a postponement until October 18. That debt payment deadline has resulted in the production of trillions of new dollars to keep the markets afloat – which is probably the reason why the dollar index has passed the 100-point-status and automatically can lose up to 50% of its value. Due to this situation, that is expected to continue to worsen, and will become the ultimate reason to choose the only way out via the global reset with the introduction of the gold standard, in order to prevent a worldwide depression.
The immediate cause of the cash shortage is unclear. In a larger sense, it is most likely a manifestation of the Inflate-or-Die trap; by having funded the economy with huge quantities of funny money – $22 trillion added via quantitative easing over the last 20 years. And having driven savings rates down near all-time lows, by punishing savers with negative yields; The central bank is now forced to add more and more fake money just to keep the show going on.
“Inflation” refers to an increase in the supply of money. People use it colloquially to refer to consumer price increases. But increasing the supply of money doesn’t necessarily increase consumer prices. It depends on where the money flows and how it gets there. Following each of the two bubble blow-ups this century, the feds decided to “stimulate” the economy with fake money.
The essential fraud of the financial system is not only that the money is fake. It is also the presumptuous self-importance that seven well-paid puppets on the Federal Open Market Committee can control, improve and stimulate a $20 trillion economy, as if it were a cranky antique automobile in need of a tune up.
The “wealth” it produces is fake too. In the 50 years after WWII, household net worth averaged about 350% of GDP. Then, suddenly it shot up to over 500%. Where did that extra money – about $30 trillion of extra household wealth – come from? Real median household income was a little over $60,000 in the late ’90s; it’s still a little over $60,000 today. Contrary; the top 1% that captured just 4.9 percent of total U.S. income growth in 1945-1973, but since then the country’s richest class has gobbled up an astonishing 58.7% of all new wealth in the U.S., and 41.8 percent of total income growth during 2009-2015.
During that same time period, central banks flushed some $22 trillion in new (fake) money into the world economy. That money bid up prices for stocks, housing and bonds, making asset holders much richer, relative to everyone else. In effect, the central banks aided and supported the grandest theft in history.
In fact, under the Constitution, the Federal Reserve has never been authorised to establish a central bank. While, this illegal institute has never been audited, which is now expected to happen after the return of the Gold Standard.
More Inflation is Needed to Keep the Financial Boom Alive
Another way to look at it is to compare total household net worth to GDP. Typically, households have a total net worth equal to about 3.5 times GDP. Now, the figure is over five times GDP. Households have about $30 trillion more, almost all of it owned by the 10% of richest families and almost all of it based, not on increased real wealth (GDP increases), but on the aforementioned funny-money counterfeiting.
When you can make that kind of money by doing nothing, it’s a tough habit to break. Henceforth, even with all its major bonds trading with below-zero yields, the European Central Bank (ECB) can’t resist.
The ECB is back in the funny-money game! Beginning November 1, the bank will begin revving up its QE (quantitative easing) program to the tune of €20 billion per month. It said it will buy “securities” with that €20 billion. Though it didn’t say which securities.
The bank also lowered the negative interest rate on excess deposits held by commercial banks from -0.4% to -0.5%, European commercial banks can park cash at the ECB. But they have to pay for the privilege of doing so. That price just went up. But with rates already near or below zero, there’s not much inflation juice left in the monetary channel.
Inflate or Die
The central bankers are inflating; they have to keep inflating or the show will come to a screeching halt. The increasing money supply causes confusion, mistakes, and disasters. When consumer prices rise, at first businesses are happy with the extra income, until they see their costs rising too. Then, they are lost.
The lower the return on cash and savings, the more conservative and risk averse investor and bank behaviour becomes. If central banks want inflation in consumer prices — in Japan, in Europe or in America — they’re going to have to raise rates.
President Donald J. Trump won’t like that idea: He wants a weaker dollar. A weaker dollar is the only way to a revival in U.S. exports, actual U.S. GDP growth above 3%, improves the president’s re-election chance in 2020. – Within minutes of the ECB announcement, President Trump tweeted:
“European Central Bank, acting quickly, Cuts Rates 10 Basis Points. They are trying, and succeeding, in depreciating the Euro against the VERY strong Dollar, hurting U.S. exports… And the Fed sits, and sits, and sits. They get paid to borrow money, while we are paying interest!”
President Trump aims for monetary inflation, fiscal inflation and probably other types of inflation people have never even heard of?
When money is pumped into the economy via the monetary channel, stocks, bonds and property prices rise. When pumped into the economy via the fiscal channel, consumer prices rise. Typically, they rise slowly at first. Then, they rise fast. Effectively, monetary inflation evaporates the value of your money.
The only way the central banks can keep the financial bubble alive, is to inflate it more. That is the real meaning of the Fed’s recent turnaround. Fed chair Jerome Powell has paused his rate hike program, and is now looking at more cuts. To support Trump’s re-election in 2020, the Fed has to inflate the financial sector with more cheap credit, or the Fake boom will die.
Negative Interest Rate Mortgage
Now, a Danish bank has launched the world’s first negative interest rate mortgage. It provides mortgages to home owners for a negative rate of -0.5%. The bank pays borrowers to take some money off their books. Of course, as usual, only relatively well-off people can become home owners and benefit from this reverse cross-subsidy. It is a token gesture, duping the public at large into believing that they are benefitting from the new banking stint. The bulk of such operations serve large corporations. The borrower pays back less than the full loan amount. Switzerland may soon go into the direction of Denmark.
It isn’t always possible to determine the effects of monetary inflation by looking at price inflation. Higher prices are just one consequence of monetary inflation. Monetary inflation also misallocates resources, encouraging more debt and less saving. It tricks investors into thinking that more savings exist than really is the case.
This often leads to unsustainable bubbles, such as those present in stocks and real estate. Moreover, inflation hides the cost of government spending. If Central Banks were not able to create money out of thin air and help governments to fund their deficits, then people would not stand for the increase in taxes.
All stimulus efforts are merely different forms of fraud — all based on misleading consumers, investors and businesses with “inflation,” that is, with fake money that no one ever earned or saved.
Inflation is worse than people may think; the destruction of their fiat money lurks stealthily in the wings. Owning gold is one way to protect yourself from the Central Bankers’ deceptive policies and preserve your wealth.
It’s only a question of time until the average consumer will have to reimburse the banks for their central bank deposit expenses, meaning, the customers will be getting negative interest on their deposits. That’s inflation camouflage. A sheer fraud, but all made legal by a system that runs amok, that does not follow any ethics or legal standards.
To make sure the little saver doesn’t think about depositing his savings under his matrass or in a hole in the ground, instead of bringing it to the bank, money will be digitised and cash will disappear.
Madame Lagarde has already more than hinted at that, when she gave a pre-departure speech at the IMF – explaining how she sees the future of monetary banking. The future, according to her, being no more than 15 to 20 years away, will constitute a cashless society.
Just enough time for the elder generations – those that may still instinctively feel a hint of rejection and oppression and have some consciousness about personal privacy, those that may resist money digitisation – may have died out. The young, up-and-coming age groups may be brainwashed enough to find a cashless society cool.
In fact, Europe is already a test ground – many department stores and other shops in Nordic countries – Sweden, Norway, Denmark, Finland and the Netherlands – no longer accept cash, only electronic money. In Sweden, over 90% and in Denmark, already upward of 80% of all monetary transactions are made digitally.
The solution out of this Mess is ready for implementation
The only solution to get the world out of this mess is the already partially operational Quantum Financial System (QFS) that is waiting in the wings for full implementation and is completely independent from the existing, centralised monetary system, making all other previous transfer systems like the banks and for example blockchain obsolete. After the Revaluation (RV), all sovereign currencies will be gold or asset-backed, to ensure a sustainable value, to be stored and transferred via QFS. Everyone will receive an account in this new monetary system.
Wake up everyone, we have allowed the Central Banks to control our markets, by giving away our power to issue our own money, interest free. Share this message with everyone you know. If many more of us wake up, the cabal’s manipulation game will be over, vaporised in an instant into non-existence. And subscribe to this blog for not missing future information.