Fiat Endgame – More QE, NIRP, Bail-Ins and Pensions Plunder…”The problem is that these monstrous bubbles are already starting to burst”
By: Clive Maund
GoldSeek.com
Monday, 5 October 2015
The fiat money system should be branded a “crime against humanity” because of what its unbridled excesses must inevitably lead to – chaos, destitution and war – which is what we are clearly heading towards.
Over the past year or so, the Fed let the idea take hold that it was going to gingerly start a rate rise cycle, which helped to fuel a big rise in the dollar. The ruse worked and the Fed got a lot of bang for no buck. However when push came to shove and the time arrived a few weeks back when they had to “put up or shut up”, they backed down, and it became apparent that the whole thing was a hoax. They do actually want to start a rate rise cycle, in order to start trying to undo the enormous damage caused by their profligacy of recent years, and because they are gravely concerned about their own bloated balance sheet, but it is apparent to all and especially them that if they try it they will crash already very fragile stockmarkets and burst various asset bubbles simultaneously, like the Real Estate bubble, not to mention the towering derivatives overhang.
The problem is that these monstrous bubbles are already starting to burst, even without the catalyst of the Fed or other Central Banks raising rates, because the system is atrophying under the weight of an immense debt burden that has reached critical mass as “extend and pretend” has been continued towards its ultimate conclusion. Total world debt including derivatives is assessed at a cool $500 trillion. The system is clearly set to implode, and is already starting to, but surely there must be some way or ways to keep it limping along just that little bit longer so that those presiding over this mess can hang on in power for as long as possible. Happily for them, there is.
Normal people believe that interest rates can’t go below zero or not by much, which is a reasonable supposition – after all, who but a lunatic would allow themselves to be charged for depositing money at a bank? Mad though it may seem, Europe has already proved this wrong by starting to levy charges against bank deposits. Although the percentages levied are thus far tiny, the fact that they have had the audacity to do this establishes a dangerous precedent. So we can expect NIRP (Negative Interest Rates Policy) to be an important plank in the “extend and pretend” endgame. Negative interest rates are of course legalized theft, but since those in power do not suffer from the weakness of embarrassment they will brazenly go ahead and take this route. Such action will naturally incite bank depositors to pull their funds to “stuff under their mattress” so steps will have to be taken to disincentivize and marginalize cash transactions.
The Rest…HERE
