Economic Collapse is Inevitable, and a Long Time Coming

Economic Collapse is Inevitable, and a Long Time Coming

by Jeremiah Harding

An old slogan goes, “play stupid games, win stupid prizes”, and the US has been playing extremely stupid games for a long time now. As many of you may have heard, the stock market has been having some trouble lately. It seems that market manipulations which trickle down from a state level, combined with an inefficiency of the state apparatus for handling disease has created a rather precarious situation. The fact that coronavirus took hold, and that the state’s answer  was to not only freak out the entire planet with a long series of  fear campaigns, but to institute a series of quarantines, closures, and other centralized measures to contain the problem, which have the common person rushing for supplies and safety, says a lot about how the current state handles hard situations. The fact that an alleged “crisis” in the oil market can cause more disruption is further evidence of mismanagement.   With an economy rigged by unnecessary production and distribution of debt, and the fact that the currency is corrupt and fake from the ground up, it’s not if the US economy collapses, but when. The question is, have the chickens come home to roost, or will this can be kicked further down the road?

 

Fake money, real empire

For those of you who don’t know, the entire US monetary system is a fraud. I first started looking into this because of Ron Paul’s “End The Fed” campaign, and his accompanying book. It reads:

After all is said and done, the Fed has one power that is unique to it alone: it enables the creation of money out of thin air. Sometimes it makes vast new amounts. Sometimes it makes lesser amounts. The money takes a variety of forms and enters the system in various ways. And the Fed does this through techniques such as open-market operations, changing reserve ratios, and manipulating interest rates, operations that all result in money creation. Given that money is one half of every commercial transaction and that whole civilizations literally rise and fall based on the quality of their money, we are talking about an awesome power, one that flies under cover of night. It is the power to weave illusions that appear real as long as they last. That is the very core of the Fed’s power.

 

To more fully understand this concept, I highly recommend reading his book. It goes to great lengths to isolate the various working problems associated with the existence and operation of the Federal Reserve, and it’s well worth the several afternoons it might take the common reader to read the full text (or the few hours using something like the Sprint Reader extension,  which I swear by). But for those of you with less time, Ron Paul recommends Mike Maloney’s work with his GoldSilver YouTube channel, which lays out in blunt detail what he calls “the greatest scam in the history of mankind”, and bangs out a quick introduction to the workings of, and relations between, various aspects of the financial sector of the US government, as well as how this creates many of the problems we now see. His simple breakdown is as follows:

“Government creates glorified I.O.U.s, banks swap I.O.U.s to create currency, government spends the numbers, banks multiply the numbers, our numbers are taxed, the debt ceiling [is a] delusion, [and] secret owners take their cut.”

 

The presentation basically says the following – the Treasury and banks exchange IOUs for profit, which are then sold to the Fed with checks written on a broke account – another IOU – to essentially “create” money. He quotes the Boston Fed in saying that, “When you or(?)I write a check there must be sufficient funds in our account to cover that check, but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check it is creating money.” He details how the banks use that created fake money to then buy more bonds, in a vicious cycle where the banks always earn interest. Mike says,

“The end result is that there’s a buildup of bonds at the Federal Reserve and currency at the Treasury. This process is also where all paper currency comes from.”

 

He details that government then spends those numbers on government programs, injecting them into the economy, so that the fractional reserve system can even further multiply them by creating  more fake computer numbers usable by the banks, thus incredibly and wholly artificially inflating the available supply of currency in the economy. He goes on to say that the growth of the money supply only serves to grow all prices, and also necessarily grows the state. All of this requires the perpetual raising of a wholly artificial debt “ceiling”, which will never stop being raised, because for every unit of currency made under this faulty system, at least one unit of debt is created, and usually more, resulting in an ever heightening ceiling, and ever-increasing rounds of QE, and only really serves to directly benefit a shady group of stakeholders the public doesn’t know about.

 

Pretty terrible, right? Well, it gets worse. Because part of what he said was that the US spends these dollars  almost exclusively on war. He isn’t wrong.

 

War for oil…

War is big business – and why would it not be? What could possibly be easier for statist psychopaths than killing people and maintaining a global empi- *cough*… “hegemony”? From The Balance, “Estimated U.S. military spending is $934 billion. It covers the period October 1, 2020, through September 30, 2021. Military spending is the second-largest item in the federal budget after Social Security.” Excluding VA funding of  $105 billion, to take the absolute worst care of the returning attack dogs possible, $829 billion still goes to the Department of Defense, the Department of Homeland Security, the State Department, the National Nuclear Security Administration in the Department of Energy, and the FBI and Cybersecurity in the Department of Justice.

 

But where does all that money go? Well, the maintenance of a massive global empire of control, death, and destruction. It also goes to boosting the available control of US allies, and the defense budget doesn’t even take into account foreign aid to countries that have agreed to abide by US foreign policy, accounting for $1.6 billion on its own!

 

So, what does it look like to do the bidding of the US government? Well, a very prominent example of this can be highlighted in the existence of the petrodollar. The petrodollar is money resultant of and put back into a system which ties the price of oil to the US dollar, and promises market protections from the West, and allies, in exchange for participation in an essentially rigged market. You know how you constantly hear hippies mocked for claiming that there is a war for oil, and not for our freedom or your interest? Well, they’re not wrong. For almost a century now, the US government has been rigging foreign policy, and many multinational interactions, to their benefit, so they can control huge aspects of global finance and economics. They’ve done some of this in plain view, and still much of it in secret. But what has come out of it has been a world economy that almost exclusively benefits the agenda of the US and their allies. However, the chief benefit of the petrodollar to the US economy has been its ability to cushion the inevitable fall of the dollar, by helping the US government offload debt. Also from The Balance:

 

A 2006 U.S. Treasury Report indicated that increased oil prices generated an extra $1.3 trillion in revenue for OPEC countries since 1998. Oil revenue was spent on increased imports, higher wages for government employees, increasing reserves, and retiring debt. The oil-producing countries used these funds to provide a cushion to fall back on. They also learned from the recession of 1998 when demand for oil fell and prices declined. These actions helped to lower volatility in their economies and in the global economy.

 

The BIS only reported OPEC members, so non-OPEC funds were unaccounted for. The Treasury said that oil exporting countries purchased about $270 million in U.S. securities. Based on other information, they suspected that the unaccounted-for funds were invested in construction loans, regional stock markets, private equity funds, and hedge funds. An unknown amount of funds could have been invested in U.S. assets through foreign intermediaries, which are untraceable.

 

These hidden petrodollars increase global volatility. That’s due to their sheer size of $400 billion. If it is in U.S. Treasurys, a withdrawal of that size could trigger both a decline in the dollar and higher interest rates. That probably will not happen, since the United States is also one of OPEC’s best oil customers.

 

The article goes on to detail the US meddling in the affairs of Iran, Russia, Venezuela, China, and more, all because they have the reins on the blood supply of the world. At least, that’s what they think. And that’s why they put so much money, time, and effort into the maintenance of this illusion. Despite Trump’s recent lies about pulling out of various countries, only to immediately go back in, and only to pull out a fraction of the troops, when he did pull any out, the US still maintains over 800 military bases around the world, and a regional foothold in many countries, granting them a permanent seat at the table when it comes to the policy of many nations.

 

But an illusion is exactly what it is. That’s what many nations are figuring out and why there have been many instances of upheaval lately, causing disruptions in global markets and massive panicked responses from the Trump White House. That’s why when Saudi Arabia recently got into a price war with Russia in regards to oil prices, there were many people speculating that it would be the rise of another economic collapse. You see, Saudi Arabia was one of the first petrodollar countries, and that means US market stability is directly tied to their participation in global oil markets. This means that when they jump, everybody else jumps too. Even if there’s a rope around their necks. From New York Times:

 

With oil prices plunging and Russian state television blaming Saudi Arabia for the collapse of the ruble, the kingdom on Tuesday signaled what seemed to be an escalation. Saudi Aramco, the national oil company, said that on April 1 it would start providing customers with 12.3 million barrels a day. That is a 26 percent increase on its output before the deal with Russia collapsed. And taking dead aim at Moscow, the kingdom offered steep discounts for April deliveries to customers in Europe, a direct strike against one of Russia’s primary markets.

 

It continued:

 

State television stations blamed Saudi Arabia for the ruble collapse and offered as solace expert commentary that the United States and Saudi Arabia would ultimately suffer more. “At these prices, by year’s end shale oil companies will fall apart,” state Channel 1 reported. With hundreds of billions of dollars salted away in rainy-day funds, Russia is in many ways unusually well-positioned to withstand the impact of falling oil prices. But it has nonetheless been rattled by how fast and aggressive Saudi Arabia has been in responding to the breakdown of talks in Vienna.

 

Allegedly due to this oil war, economic stability has been widely considered as bad or worse than it was during the 2008 financial collapse. That collapse left millions of families destitute, and many more individuals high and dry, as unstable financial policies in the banking sector had caused the common person to bet too much on long-term stability, while analyzing current trends, and economic patterns. Nobody cared then that banks were pumping out subprime mortgages like Halloween candy, distributed to any unscrupulous kid wearing the right costume, to look like a legitimate homeowner. Nobody cared then about the financial instability inherent in trusting a bunch of profit motivated banks heavily interested in a hyperinflated economy, due to the nature of finance, and the accessibility of the loan process, with the stability of a whole country, and the future of its housing market. As a result, a huge bubble formed, and people rushed in to take advantage of that bubble, just as they had taken advantage of all bubbles previously, and will likely continue to do so. When that bubble popped, suddenly, a bunch of people cared a whole lot about how stable decisions made from the top down can be, and everybody had an opinion on how terrible the banks were.

 

However, most of them don’t know or care about the fundamental nature of the system, and the fact that the vast majority of economic decisions are made, manipulated, and abused by a central authority comprised of a series of unaccountable, unknown people who will all seem to constantly profit off of economic downturns such as these. The fact that nations can use oil to leverage their position in the global economy and cause gigantic ripple effects like this – all to thumb their nose at foreign national leaders –  at the persistent expense of the working class, would be shocking and extremely offensive to the common person. Unfortunately, as the system stands, economic education is disincentivized, and rendered unpopular. That’s why the people running the system still have popular support.

 

For instance, in response to this oil war, Trump is considering a mass bailout of the oil industry, which also  happens to benefit the people funding his reelection campaign. According to Salon, “Harold Hamm, a billionaire Trump adviser who owns Continental Resources, an energy company which lost half of its market value Monday”, and it continues to say, “Some Trump advisers told The Post that the administration was eyeing ‘targeted assistance’ for the companies. Though under consideration, another official warned that ‘political blowback over the idea may eventually lead campaign advisers and others in [the] administration to talk Trump out of it.’ ”

 

But that doesn’t even get to the heart of the issue, which is the economy specifically. At this point, the market manipulators at the Federal Reserve have stepped in to kick the can perpetually down the road ever more by announcing a $1.5 trillion intervention into the economy. Those of you who read the beginning of this article know that at some point, the bank loans used to create the dollar and secure the United States’s place as head of the global hegemony will eventually need to be defaulted on, because there’s literally no way to pay them all back. I mean let’s be clear; at the time of writing this article, the United States national debt rests around $23.5 trillion, and as anyone who’s watched that series on money knows, every time money is printed, it  adds to the debt. Exponentially. Every government program amounts to an exponential increase in debt that adds to an ever growing debt total which is unpayable. This is well evidenced by another calculation, that being the United States gross domestic product, currently resting around $22 trillion. And that’s before any other calculations are made. Net domestic product is lower, and the most recent estimates put it around $18 trillion meaning even if you looted all the profit from United States labor, you wouldn’t pay back the debt. In order to do so, the state would need to start dipping into household assets, looting the common person of what they have saved and earned.

 

The last time this happened was around the last depression, when the US government literally stole a ton of metals from the common person, in a lying claim to prevent hoarding. This might happen again, and who knows what they’ll steal this time, and how brutal they will be when they do it. I mean, last time they didn’t have a massively militarized police force at their behest who regularly kills an average of 1000 people a year without a Great Depression to spur  even more oppressive statist action. The last time, they didn’t have a gigantic military, intelligence, and prison industrial complex, which effectively allows them to remotely police the entire planet. They didn’t have an information dragnet, and tracking devices on every civilian with a cell phone. The cage has gotten much more effective at containing people, and if they decided to let the chickens come home to roost, make no mistake; they could. And someday, they will.

 

But distrust in the government is at all-time high, and trust in the media outlets –  which have acted as their mouthpiece for centuries – is at an all-time low. Protests have been sparked around the world over a variety of issues, almost all related to one civil liberty or another, and almost all resulting in huge groups of people in the streets at the same time. I wonder how these protests could be stopped. They certainly can’t be good for the elites, and they certainly can’t be healthy to the plan of mass control, when it becomes clear that there’s a significantly large group of people willing to take up space on an issue.  From Hong Kong to Virginia, millions of people have been pouring out in opposition of their local government and the central authorities which those local governments behave in the behest of.

 

Enter coronavirus.

For months now, this virus, which started in China, has been ramping up in severity. It started relatively proxamol to the location of the protests, which were aimed at the democratic liberation of Hong Kong in opposition of the Chinese government, and their apparent flaunting of Hong Kong’s sovereignty. It spread quickly, and began claiming lives almost instantaneously. So the Chinese government did what they do best, and deployed a massive security state to lock everybody down, forcing hundreds of thousands of people into quarantine over the space of a month. For my podcast – the Weekly Hellscape – I extensively went over the facts surrounding this issue. Basically, the Chinese government is massively underreporting the numbers of dead patients and overloading funeral homes with , on orders to sanitize and burn them all en masse. The US is planning quarantine zones at  Joint Base Pearl Harbor-Hickam, Hawaii, Great Lakes Training Center Navy Base, Illinois, Naval Air Station Joint Reserve Base Fort Worth, Texas, Dobbins Air Reserve Base, Georgia, Fort Hamilton, New York, Naval Base Kitsap, Washington, Joint Base Anacostia-Bolling, Washington, D.C., Joint Base McGuire-Dix-Lakehurst, New Jersey, and Fort Custer Training Center, Michigan.  Some US cities are already being locked down, too, and many sporting and entertainment events have been cancelled. The World Health Organization is calling it a pandemic, and it’s hit a huge chunk of the world now. All of this has only increased panic in the economy, and forced the stock market and all assets and currency, into sharp decline.

 

But hey, the streets are clear. And that’s good for the elites. Citizens are staying at home, and when they’re not staying at home they’re rushing to go buy toilet paper and other supplies at the local grocery store in such droves that the shelves are regularly barren in many places. Must not have heard of online shopping. Gone are the protests, empty are the streets, and silent are the people about all previous abuses. But that’s just a coincidence, right?

 

Francis Boyle, a professor of international law at the University of Illinois College of Law, and author of the US Convention on Bioweapons, insists it’s no coincidence. From guadalajarageopolitics.com, it details the following, Professor Boyle served on the Board of Directors of Amnesty International, as a consultant to the American Friends Service Committee, and on the Advisory Board for the Council for Responsible Genetics. He drafted the U.S. domestic implementing legislation for the Biological Weapons Convention, known as the Biological Weapons Anti-Terrorism Act of 1989, that was approved unanimously by both Houses of the U.S. Congress and signed into law by President George H.W. Bush.

In an exclusive interview with the Geopolitics and Empire show, Boyle detailed his ideas on this:

 

… if you just do a very simple Google search on ‘Does China have a BSL-4 laboratory?’, Wuhan comes up right away. It’s at the top of the list. That’s all with the moment this type of thing happened I began to do that. So a BSL-4 is the most serious type. And basically BSL-4 labs, we have many of them here in the United States, are used to develop offensive biological warfare weapons with DNA genetic engineering.

 

So it does seem to me that the Wuhan BSL-4 is the source of the coronavirus. My guess is that they were researching SARS, and they weaponize it further by giving it a gain of function properties, which means it could be more lethal.

 

Indeed, the latest report now is it’s a 15% fatality rate, which is more than SARS at 83% infection rate. A typical gain of function travels in the air so it could reach out maybe six feet or more from someone emitting a sneeze or a cough. Likewise, this is a specially designated WHO research lab. The WHO was in on it and they knew full well what was going on there.

 

Yes. It’s also been reported that Chinese scientists stole coronavirus materials from the Canadian lab at Winnipeg. Winnipeg is Canada’s formal center for research, developing, testing, biological warfare weapons. It’s along the lines of Fort Detrick here in the United States of America. I have three degrees from Harvard. It would not surprise me if something was being stolen out of Harvard to turn over to China. I read that report. I don’t know what was in those vials one way or the other.

 

But the bottom line is I drafted the US domestic implementing legislation for the Biological Weapons Convention that was approved unanimously by both Houses in the United States Congress signed into law by President Bush Sr. that it appears the coronavirus that we’re dealing with here is an offensive biological warfare weapon that leaped out of Wuhan BSL-4. I’m not saying it was done deliberately. But there had been previous reports of problems with that lab and things leaking out of it. I’m afraid that is what we are dealing with today.

 

So there you have it – the guy who literally wrote the book on bioweapons believes it to be one. This and an oil struggle are coming on the heels of a long-term economic downturn, clearing the streets of protests, and spurring public support for interventionism. Doesn’t seem like coincidences to me. But surely it can’t be that simple right? Surely this economic decline must rest firmly upon recent events, and not be the result of a long-term problem! Nope. The fact is, things have been incredibly unstable for a long time, and this kind of collapse is literally inevitable. Meet the bull run and the inverted curve. From MarketsInsider:

 

March 9, 2020, marks the 11th anniversary of the longest running stock bull-market in history. Stocks have been climbing higher since the post-financial crisis low on March 9, 2009. The bull market in equities officially became the longest-ever in August 2018, and has continued to gain since. A bull market is defined as a 20% increase on a closing basis that is never interrupted by a subsequent 20% decline. The S&P 500 has gained 339% in the 11-year period through Friday’s close and boasted an annualized return of 15.3% through 2019. While markets move in reaction to a number of events, there have been four main drivers of the most recent bull rally – strong corporate earnings, stock buybacks, easy monetary policy, and solid participation. The record bull run also faces perhaps its biggest threat as the coronavirus outbreak spreads, sending markets into a tailspin as investors worry that global growth will grind to a halt.

 

 

And if that’s not bad enough, we’ve been riding an inverted yield curve for a bit now. From Investopedia:

 

An inverted yield curve represents a situation in which long-term debt instruments have lower yields than short-term debt instruments of the same credit quality. The yield curve is a graphical representation of yields on similar bonds across a variety of maturities. A normal yield curve slopes upward, reflecting the fact that short-term interest rates are usually lower than long-term rates. That is a result of increased risk premiums for long-term investments. When the yield curve inverts, short-term interest rates become higher than long-term rates. This type of yield curve is the rarest of the three main curve types and is considered to be a predictor of economic recession. Because of the rarity of yield curve inversions, they typically draw attention from all parts of the financial world.

That’s right – not only is this not new, but an accurate prediction of recession has been flashing at us for long enough that those paying attention have taken notice.

 

And to be completely blunt, this has not only been coming for a long time, but is warranted. For as long as the United States has been a country it has relied on the exploitation and looting of one people or another, and the fact is that our debt-based currency and our woeful unwillingness to live within our means has put the US as the worlds 1%, at the unpayable expense of billions of people around the world. Sure, the US seems like they’re on top. But only so long as the rest of the world decides to not knock us off. As the old saying goes, the only reason you’re still alive is someone has decided to let you live.

 

The US government has exchanged the Liberty of countless people, and the prosperity of the future for control of an increasingly globalized marketplace, dominated by their interests, and ruled by themselves and their allies in the hegemony. They know that this system is an unstable house of cards destined to someday tumble to the table, only to need resetting, no matter who was sitting atop its leaves. The people relying on this system have learned to avoid critical thought on the issue, and criticize and dismiss anyone who points out these systemic problems as conspiracy theorists, worthless ne’er-do-wells, traders, criminals, and parasitic disruptors. Maybe a collapse like this is exactly the wake-up call they need to know that they’ve gotten by entirely too easily, on the backs of everyone else, while literally being unable to contribute wholly in return.

 

But probably not. Likely, the economic interventionists will find a way to kick the can further down the road, acting as though they fixed the economy, even though it’s still fundamentally doomed to failure, and a massive collapse that will destroy millions, if not billions, of lives. And people will thank them for it. Because that’s what they’re trained to do. Panic when they’re told to panic, thank when they’re told to thank, and obey always.

 

If that’s not you, welcome aboard – it’s gonna be a bumpy ride.

Works Cited

https://mises.org/library/end-fed

https://goldsilver.com/hidden-secrets/episode-4/

https://www.whitehouse.gov/wp-content/uploads/2020/02/budget_fy21.pdf

https://www.thebalance.com/u-s-military-budget-components-challenges-growth-3306320

https://www.state.gov/wp-content/uploads/2020/02/FY-2021-CBJ-Final.pdf

https://www.nytimes.com/2020/03/10/world/europe/russia-saudi-oil.html

https://greatgameindia.com/transcript-bioweapons-expert-dr-francis-boyle-on-coronavirus/

https://markets.businessinsider.com/news/stocks/bull-stock-market-record-run-may-end-soon-coronavirus-panic-2020-3-1028976087

https://www.investopedia.com/terms/i/invertedyieldcurve.asp

Jeremiah Harding

An angry anarchist bent on black-pilling the universe, he hits hard on everything ranging from taxation to technocracy. Everything is a conspiracy, or at least that's what he wants you to think. He's written for Poliquads, various libertarian sites, and his personal anti-state propaganda site, which launched last year. He has a podcast, called The Weekly Hellscape, where he details the week's news, from the opposite perspective of friendly, and he has a YouTube channel, where he descends into madness. He's coming for all your sacred calves. Stay tuned!