Getting Positioned for the Worst Depression in the History of the World…”if you think things are bad now, this is a “walk in the park” compared to what’s coming”
By: Clive Maund
GoldSeek.com
Monday, 25 May 2020
The gargantuan global debt bubble is now imploding at an astounding and terrifying rate, with the virus acting as a catalyst to speed up the process thanks to the lockdowns and the massive economic disruption that they are causing. The global economy is coming to a dead stop, with the airline, catering and tourism industries the first victims and already largely destroyed in the space of just a couple of months. Several days ago on TV there was the extraordinary sight of hundreds of cars in various US locations snaking sometimes for miles in lines to collect food handouts – and these weren’t beat up old clunkers held together with wire and duct tape like in the days of the Beverly Hillbillies – many of them were flashy SUVs and Mercedes etc. What became clear from the reporters talking to some of the people stuck in these lines is that a few months ago, or even weeks ago, many of them were living comfortable middle class lifestyles, and then they suddenly found themselves with no work, no income and quickly broke. Sadly, what also became clear is that many in the line thought that this was just a temporary phenomenon, not realizing that in the future they will be lucky if they are able to afford to run their vehicles. What we are seeing here of course is the modern equivalent of the 30’s soup kitchen lines, which means that we are already in an economic depression.
The reason that this article is titled “Getting Positioned for the WORST DEPRESSION IN THE HISTORY OF THE WORLD” is that debt and derivatives have never built up to such vast levels on a global scale before. It will take a correspondingly severe depression to eliminate this gargantuan mountain of dross.
Greg Mannarino postulates in his uniquely insightful video blogs that a big reason for the lockdowns was to intentionally kill the economy and bring the velocity of money to a dead stop, so that the Fed could create limitless amounts of money to buy and backstop everything without immediately stoking inflation leading to hyperinflation, and also to destroy small businesses so that their assets and workforces could be mopped up by the big corporations who are the beneficiaries of bailouts. Whilst I agree that these were probably key objectives, I think there was also a simpler explanation for the destructive lockdowns. The gangsters now running the Western world realized that they have taken debt expansion to its ultimate extreme and that they could no longer keep the game going – it was becoming dangerously unstable as evidenced by the Repo market starting to fly apart last Fall, necessitating Fed intervention. So basically, they decided to “pull the plug” on the whole thing, but clearly, the resulting mass unemployment, destitution and poverty are creating the conditions where the angry masses, looking around for someone to blame, would come after their leaders with guns and pitchforks. So they had to contrive a way to effectively impose Martial Law without actually calling it that, which would further incense the downtrodden masses. Hence, the release of the virus which fooled the masses into locking themselves down. While the virus undoubtedly has some killing power, which gives it credibility, the death and illness statistics are fiddled and grossly exaggerated by a compliant media, with hospitals being financially incentivized to label most deaths as Covid-19 deaths and to place people on ventilators etc. all in order to scare the sheep into accepting the use of “fear masks” that are designed to amplify the paranoia and into accepting the lockdowns that accelerate the destruction of the economy, so that their lives will soon be at far more at risk from destitution and hunger than they are from the virus.
One thing that the masses seem incapable of comprehending is that the Central Banks run the world. They are the true power, so in effect the world is run by faceless unelected plutocrats who print as much money as they like to enrich themselves at everyone else’s expense while coercing everyone else into debt slavery. Governments are merely puppet shows put on to amuse and distract the masses. In the US it is really extreme, they don’t even bother to have more than two parties (controlled by the same Masters) who are like Punch and Judy. It’s always a laughable and pitiable sight to see the sheep lining up to vote every 4 years, thinking that their puny vote will make a difference, when of course it makes no difference whatsoever.
It is the towering mountain of debt built up to critical mass over many decades that is now causing the global economy to implode, the virus was merely a catalyst introduced to “get it done and over with”. National debt, municipal debt, corporate debt and personal debt of every kind including credit card debt and student debt constitutes a gigantic festering putrefying stinking mountain of accumulated intrinsically worthless garbage that will – all of it – end up totally worthless before this depression is over as a necessary prelude to a new beginning. Mannarino asserts that the Fed is using this crisis to “buy up the world” and he’s probably right, but if they are they are welcome to it – would you want to own this garbage? What will happen is that their exponential money creation in pursuit of this end will eventually ignite a hyperinflationary firestorm that burns everything to the ground, so that they end up as the proud owners of NOTHING.
Thus, if you think things are bad now, this is a “walk in the park” compared to what’s coming down the pike when their desperate efforts to prop up the debt markets and stop rates rising by ballooning their money creation at an exponentially increasing rate lead to their value being eviscerated by hyperinflation, so that all this debt ends up as worthless in real terms anyway.
The Rest…HERE
