Hyperinflationary Depression and Currency Collapse (US Dollar) Imminent?

[T Smith]

I just finished reading economist Michael Pento’s latest book, The Coming Bond Market Collapse. I breezed through this in short order and am somewhat disappointed he covers nothing new. In fact, Pento’s argument is likely stale material here. But his discussion does elicit some unanswered questions for me I hope to address in this thread.

The book in a nutshell: the U.S. central bank has backed itself into a corner with no way out and has no choice but to continue to inflate, prop up markets, and to monetize the debt, indefinitely, thus creating the biggest bubble to date, the U.S. debt market. The inevitable conclusion, per the laws of economics, is the collapse of the U.S. dollar. This will occur once foreign investors wise up and run for the exit, at which point the U.S. dollar will not only lose reserve currency status, but the global economy will also find itself in the throes of a hyperinflationary global depression. The only buyer of U.S. debt will then be the Federal Reserve Bank, prompting a runaway hyperinflation.

If this book were predicting geological catastrophe instead of economic ruin, it would be equivalent to the Yellow Stone super volcano erupting or the entire state of California sliding off into the Pacific Ocean after the big one.

The critique I have with the thesis (besides being two-dimensional), along with literally dozens of similar books and hundreds of similar articles I’ve read with similar theses, all of which point invariably to the collapse of the US dollar, isn’t substance. I think Pento is on target and has an accurate understanding of the problem. He cites historical precedent, has a solid grasp of economics and monetary policy (argued from the Austrian school perspective), and is even correct in assuming the logical conclusion to the time bomb is collapse. In short, the problem isn’t with the analysis… or even its logical conclusion. But all this goes almost without saying to anyone who understands economics; in other words, the Austrian school has already won this argument a long time ago….

The problem I have with his argument (and which renders its predicted outcome somewhat suspect to me) is the highly flawed premise many Austrian economists naively assume. And that is this: those silly Keynesians (and the chairman of the Federal Reserve in particular) in their blinded ideology and hubris are simply misguided. The underlying theme always assumes the Fed, in its earnest attempt at remedying the ailing economy, doesn’t fully understand what causes inflation, how to accurately measure inflation, or the real damage inflation does to the economy. In other words, Austrian economists who advance (rather obvious) remedies assume the Fed is innocently mistaken in its prescription to jump-start the economy and is merely on the wrong path to stave off the inevitable economic collapse.

In somewhat ironic fashion, if that premise were really true, the Federal Reserve would simply follow the obvious path (yes, even to Paul Krugman), which would be the Austrian remedy. The facts and remedies proposed by Pento are already well known to all serious economists and social engineers, and especially at the State level. The fact that there is even a false debate between the Austrian school and the Keynesian school is an engineered one, i.e., a generated distraction to legitimize what literally amounts to the latter being a scorched-earth monetary policy masquerading as legitimate economic theory.

The Austrian premise that the Fed doesn’t have faith in the free market’s ability to defend itself, doesn’t understand the movements in the gold price (ah, ahem… the Fed sets the gold price), that the Fed wrongly assumes all the money it pumps into the market (QE infinity) will be engaged by the consumer, that U.S. international creditors will soon have no choice but to cut up its credit cards, are all patently false. On the contrary, the Fed knows exactly what it is doing. If anything, the debate with Pento only humors the opposition, even if he and other Austrians don’t even know it.

The truth is, the Fed is proceeding accordingly in a very precise and methodical manner. Whomever it appoints as its chairman, be it Volker, Greenspan, Bernanke, or Yellen, is simply an academic sock incrementally executing the directive of the cartel’s objective, and that objective is nothing other than to concentrate the planet’s entire wealth and resources while it slowly sucks it dry, in a slow, deliberate, and vampiric manner, such that those who present remedies to the resulting paralysis and ensuing enslavement of humanity merely drag themselves into endless debate and academic quagmire. The Fed’s objective is calculably the very opposite of the underlying remedies outlined in Michael Pento’s book. It is false for him to assume otherwise; the Fed is taking the “wrong path” by careful and deliberate calculation. The fact that those who advance any argument against the Fed without grasping this broader picture (which to me seems elementary) makes me question their understanding of the probable outcome, economic laws or no economic laws.

Here are the questions I hope this thread will address and resolve. They are questions I am unsure of myself after deliberating how this is all going to go down:

The premise: The Fed can’t keep interest rates low forever or continue to monetize the debt; the laws of economics won’t permit it. Hence an imminent collapse is on the horizon.

My question (which Pento never addresses): Why not? There is still a LOT of wealth to concentrate and a lot more to siphon off, especially in North America, South America, and Europe. While admittedly much smaller and shrinking by the day, there is still a sizeable middle class in America to loot and elsewhere around the world for that matter. I’m not saying Pento is wrong, necessarily, (I actually agree with his analysis), but he doesn’t specifically address, to my satisfaction anyway, why the hell not? Why can’t they continue to tweak and to monetize and to keep bond prices high into the foreseeable future? Pento merely assumes, as a given, that the laws of economics won’t permit it. And under normal circumstances, he would be right.

All other things constant, the laws of economics, just as the laws of gravity, must necessitate a currency collapse, just as Pento says, unless one has anti-gravity technology. To wit: even as demand for U.S. debt wanes, the Fed can continue its bond purchases though its proxy banks. (Yes, this will cause more inflation, but that’s precisely the objective. Allowing the economy to expand and grow is sowing the seeds; inflation is the harvest. Enacting inflation is the mechanism that redistributes wealth from the masses to cartel).

The Fed can also continue to manipulate the price of precious metals and foreign currencies (making US debt more or less attractive); it can circumvent its proxy banks, if necessary, and directly buy US debt; it can manipulate geopolitical and/or effect false flag events (directing a flight to safety), and most importantly, it can wage highly covert global economic warfare against it chief economic foes, Russia (exporter of oil) & China (importer of oil) by directly manipulating the price of oil; the Fed also has the means (namely the U.S. military) to coerce foreign governments not named Russia or China (and maybe even Russia and China) to continue to purchase the host government’s (USA’s) debt. For the most part, all euphemisms and niceties aside, foreign demand for U.S. debt isn’t a voluntary arrangement folks; it’s a shakedown. In other words, I’m not so convinced it is as simple as “foreign governments heading for the exit,” as Pento asserts.

That said, I want to make it clear that I’m not arguing against the imminent currency collapse because of the reasons I state above; I’m just saying most of the fervent proponents of currency collapse fail to address all the covert weapons the criminals in charge could possibly employ to prolong the heist. My hunch is foreign governments can and will eventually resist the shakedown; but in my estimation global war, as in WWIII, is much more likely before a currency collapse. Then, and only then, does it seem likely to me that we will see a currency collapse. And by then such a collapse will be right on time. If we are not very careful, in other words, we could easily end up on the other side of such a global conflict with the current power brokers even more consolidated and with the maturation of the NWO well underway. We could easily see the rise of a global totalitarian fascist regime (especially after a potential post-nuclear WWIII exchange) from the scorched earth, and a new Bretton Woods arrangement, albeit with the same criminals still in charge and largely in tact, with even greater control, and right on schedule, providing the reset global financial solution of the post-WWIII global economy.

Thoughts?

[Lifebringer]

FED = CORPORATE BEAST.

You're right, it's the head of the octopus, but there are many family arms attached around the world. They can put a price on your labor if you work in one of their businesses and own you outright in the best days of your life, 35 hours a week, w/out benefits, healthcare, and when you are wore out in mind, body and spirit and just for once want to relax the rest of your short time left, they stick a tentacle in your retirement and suck that dry with mediocre health "monitoring" of chronic illnesses, and test subject for any pharma drug, their company makes, despite side effects. NOT a cure, but a quicker way out so they can get to the Trust, our children don't understand as they too are being deducted from, and the FED wants that Soc Security Trust and interest now so they can control the elderly's demise off the system after they've used people up.

Been in the medical insurance business, it's was sickening in the late 90's and early to mid 2000 years. But as with all changes that MUST be made for the survival of life on the planet, it simply will not happen overnight, unless Divine Intervention stops by to give them a buzz. LOL So, we do what we can in search of the hidden destructive agenda's, stop them by publicizing it, and then boycotting their pocketbook, until stuff changes for OUR future.
Hitting their pocket by not participating in the scams, is just the "knockout punch" WS and corporate slugs influencing the people's government NEED.

Right now, the GOP has the TP that hates the security net working for KOCH takeover for WS.
I say, "GET YOUR GREEDY HANDS OUT OF THE INFINITE TRUST OF LOVE FOR OUR FUTURE TO NOT END IN POVERTY. At least let the people have enough of their money to pay their rent, mortgage, utilities and food. They have substidized or low income housing, and just because they've neglected to build more affordable sustainable housing as WE told them in the 1970's with our tax money, doesn't mean the JOBS STILL THERE, ARE CREATED BY ELITES.
Our tax R&D money helped them develop it, and now they privately own, what we paid for in patents.

I think it's time to JUST DO IT,(a love blessing to those in their old age and leave their Psycho Elite undermedicated, crabby minds, flabby armed, mean cranky saggy azziz alone/stuck in the 1950's twilight zone.

"You can lead a horse to water, but you can't make them drink. You can give a man books, but you can't make him think.
(He'll eat the covers anyway, you can't fix stupid) LOL

[Dennis Leahy]

T,

I wish I had the overarching viewpoint that can only come from being immersed in study of global finance and high-level international economy - to be able to respond to your post intelligently. I just don't. So, I'm thankful that you are letting us in on your thought process, and your questions, and not just your conclusions.

I think the vast majority of us do not have enough understanding of the puzzle pieces to assemble ANY picture, much less the correct one.

It does seem very reasonable to me that just like US wars were not "mistakes" or fomented on incorrect data but rather were planned strategic imperialistic chess moves in a real-life global game of "Risk", the Fed cabal has made no mistakes at all, but rather calculated moves. I also think anyone who sees the Fed cabal as "on the ropes" is naive. There's plenty of venom in the viper's nest.

Dennis

[T Smith]

Here's another perspective, currency collapse in tandem with war:

Source: https://youtube.com/watch?v=gbBOP2uhwpM

https://youtube.com/watch?v=gbBOP2uhwpM