The press notices that “populist” candidates are getting widespread support even when they don’t seem to deserve it. Inquiring minds want to know why. “I was on the right side of that issue [Brexit],” claimed Donald Trump, speaking to an industrial-age crowd in Monessen, PA. “I was with the people. Hillary was with the elites.” Voters seem to have a choice. Those who like the status quo can go with Ms Clinton. Those who want change can select Mr Trump. Then, the Deep State can continue calling the shots.
Almost no one has noticed the role of the Deep State’s creepy money in creating both Trump and Clinton. And almost no one has noticed how it, more than anything else, caused Chinese capital investment to go wild; cut US productivity; increased drug, alcohol, and suicide rates in Monessen and the rest of the US heartland; and now brings the world to the brink of a historic crisis.
In 1971, President Nixon cut the last ties between the US dollar and gold. In doing so, he switched the US – and the world – from money based on wealth to a new kind of money based on debt.This money was “flexible”. The feds and their banking cronies could create almost as much of it as they wanted. The only trouble was, each dollar added to the world’s debt, not to its wealth. The new money system was like a computer program with a built-in virus. It would function fairly well for 30 years. Then, the doomsday virus would be triggered.
Here’s how it worked
The insiders were first in line to get the new money. Everyone else had either to earn it or borrow it from them. Gradually, wealth flowed from Main Street to Wall Street… and to the Deep State. The rich got richer. But the poor and middle-class struggled to keep up with student debt, auto debt, housing debt… and every other kind of debt the financial industry could put on them. “I’m the king of debt,” boasts Trump. He made his money from leveraged real estate – which paid off as cheap credit raised asset prices. “I made a fortune off of debt. It was good for me. But bad for the country.”
At least he seems to understand it. Clinton has no idea. Her entire career – and now her campaign for the White House – depends on the credit-financed, Deep State elite. Clinton says the “king of debt” would bring a recession. (As though she wouldn’t.) She’s wrong; it will be much worse. As debt mounted in the late 1990s, the system became more unstable. Stocks crashed in 2000. The feds came in with more credit. Stocks crashed again in 2008. Again, the feds came back – this time with the cheapest credit in history. Now, the world owes more than $200trn – more than twice annual global economic output, and $60trn more than when 2008 struck.
Meanwhile, growth rates have stalled… and interest rates are already below zero on more than $10trn in government bonds. What will happen the next time stocks crash? What will happen when the economy goes into recession?
We don’t know. But this is something you can count on: we will find out.
Category: Geopolitics