Unemployed men at a soup kitchen in New York during the Great Depression
HenryMakow.com – July 13, 2022
There is a fine line between fear porn – they paralyze us with fear — and a realistic appreciation of reality.
You will have to decide which this is. (and let me know – hmakow@gmail.com)
Migchels- “Previously, they bailed out the banks, when the deflationary forces took over. But they can’t anymore: they’ve printed all they can without creating a hyper inflation. This is the issue.
David Icke called it immediately in 2008: “This is only the first round. The aim is to make Governments and Central Banks use up all their ammo.”
With ‘ammo’, he meant QE and low interest rates. And indeed, they’re now at their end. QE leads to rising prices and bubbles, and interest rates can’t go below zero. Although they will try even that, especially in Europe.
Also: Do NOT be deceived by the coming transition to the ‘right’. What they’re doing is making the ‘right’ preside over the Greatest Depression. They will be the ones who get to kick pensioners out of their stone cold apartments. They will get all the blame. And rightly so, because it is the evil ‘right’ that always promoted Capitalism. These Cabbalists like their karmic justice. Remember: the Beast has two wings: ‘left’ and ‘right’.”
The Fed Is Pulling The Plug On The Debt Bubble. ‘Cyber Attacks’, Followed By The Greatest Depression Are Coming.
by Anthony Migchels — (slightly abridged by henrymakow.com)
We have already seen what happens when the Fed tightens, in September 2019: liquidity in the economy, both financial and real, will dry up, and defaults will result, and these will in turn crunch the commercial banks.
There is simply zero reason why it won’t happen again this time. The only question is when.
Why is the world full of people that think you want to see pictures of them? Please, someone create a browser that allows you to browse with pictures turned off. It’s unpleasant to be greeted with the faces of these people — like they’re peering in at your window.
Well, I read what can be seen.
In simplistic terms, we are moving to the right, but it’s not the old right that most understand.
We have been through a very long period of deflation. Not only deflation, but under capacity. Very few factories are at 80%, & most are ticking at around 50%.
This inflation is by design. Designed food scarcity, fertiliser scarcity, higher energy cost, all lead to higher prices. They need to pump up the sinking dinghy.
50yr mortgages, ones that your lambs can inherit, inherited debt. They are desperate to keep house prices up. Part on this is the higher pay rises, so they can borrow more. The nurse who can’t afford to feed her lambs, because she’s got to pay her mortgage.
Just about everything you can think of, is at least 50% over priced. Winding in the debt doesn’t help the banks. Let’s say everything fell in price by 50%, they’d cut everyone’s pay, but it would take decades for corporates and banks to make up for lost earnings, and home buyer/renters would have huge debts. There house is worth half their mortgage, their pay has been cut, because widgets and food is cheap, but you still have that massive mortgage to pay off.
It is a perfect storm.
Assuming that the pic above is Anthony and given the weight of the subsequent article, I would appreciate a more somber and dour demeanor than the ‘what, me worry?’ pose. That’s all.
OK, some numbnuts mentioned the “alexa AI” on here a few days ago as “proof” of the existence of “AI”. I’d never heard of it, so I went and looked it up. Surprise, surprise, it isn’t “AI”. Who’d have thought it? So what is it?
It’s “voice recognition”. What’s that? Your “device” “listens” to you — by recording what you say — then it converts it to a waveform (open up a music track in audacity to see what a waveform is). Then the “AI” hashes the waveform to create an “approximation” of what the sound is (it averages out the peaks to try to flatten out the differences in how people speak). This approximation / hash is then compared to a database of such hashes to “decide” what you said. Very “AI”. The “AI” then tries to sell you something… er, tries to “help” you (this “AI” belongs to amascum, so you can bet they’ve only got your best interests at heart).
As usual, the “AI” is just a computer program that can’t do sh_t unless it’s told how to do it first.
Part of the problem is that people keep spouting AI everywhere without knowing what the “I” stands for…
I’m still waiting for the “silicon life form”, LOFL.
@ Carl Jones
The solution is simple — put house prices back to what they were 50 years ago and reduce the mortgages to match. It solves all the problems except that all the rich people will cry over lost money (my heart bleeds). The poor could then actually buy stuff they don’t need for once, so your “economy” will “take off” for that reason. I don’t care how it doesn’t fit in with your “economics” — houses and “rent” are just a way to own someone else, and anyone that owns someone else’s home is evil.
burp (July 13, 2022 at 3:02 pm)
Mozilla has disabled the “add-ons” page in Firefox, but if you can find a way to get to it, there’s something called “ImageBlock” that does exactly what it says.
Mozilla! Total CRAP, when it used to be the best. It doesn’t even block pop-ups any more.
One of the biggest secrets of the architects of the UN Agendas was that in order to bring about a New World Order to conform to their control plans, it would be necessary to drain the wealth of the West, and even to bankrupt it as Maurice Strong was reported to say in the 1970’s. Of course, any such plans would not entail any loss of wealth and power to the lords, ladies and families of the ruling money power of the West. Rather what was deemed necessary was that power had to be transferred from the control of the common people, and particularly the middle class, and concentrated more in the hands of those very monied elites.
Open trade with China using our markets without any checks and balances starting in 1979 served first to impoverish our governments from the resulting trade imbalances and deficit financings from the loss of tax revenues. However, in doing so they began a massive wealth transfer to themselves with their foreign investments and with much of the profits being held offshore which is still the case. The only financial weakening with the loss of jobs, income and industries has been to the common people of the West and to their governments which are now complete shills of that same money power.
Does this mean they want to cause deflation or inflate the dollar to hyperinflation? No, they simply want to own and control virtually everything. They want to make the people of the West more dependent on government controls and handouts, with government more dependent on them, but at the same time the need to retain a Western business and financial dominance regarding the rest of the world, and in that respect they will only screw with the Western economy to a limited degree, for if all of our nations were truly bankrupt with no collateral assets and human infrastructure to rely upon then that same controlling money-power class itself would shrink and die.
I agree a deflationary collapse is coming, but many would say it is inevitable consequence of debt based money stimulation. Deflation is caused by inflation in a fiat money credit system. The newly injected money causes a boom that is followed by the bust. It happens like clockwork, no one can stop the inevitable collapse because government/media do not control optimism to pessimism cycle.
You can read all about this process in Robert Prechter’s book “Conquer the Crash”:
https://www.amazon.com/Conquer-Crash-Survive-Deflationary-Depression/dp/047056797X
People like Klaus Schwab do not control the bond or stock markets, nor do they control the real estate or gold prices. Those markets are huge. The WEF parasites want to cash in on the collapse, that any thinking person knows is coming. The WEF wants to create a techno-feudal state after the collapse. People are on to their evil and it won’t happen.
What is going to happen is debt default and severe credit austerity. The US Government is over 30 trillion in debt, and deflation with rising interest rates is going to put the big squeeze on deficit spending. The interest on the national debt is rapidly going up. It will soon be unpayable. This will happen as the USA follows ZOG into a war with Russia.
Given that the syncretic church of the NWO was so recently a topic of discussion here, the Great Depression-era, photograph accompanying the article, is rollingly percussive.
A queue of unemployed Americans, seeking alms at the Baha’i Fellowship, in New York City, sometime between 1929 and now, it seems. I bet the soup is kosher.
The big real estate bust in on us. I highly reccomend this Youtube channel who follows this new trend:
https://www.youtube.com/c/ReventureConsulting/videos
Real estate went up because of low interest rates and great speculation, bigger than Tulip Mania and the South Sea Bubble combined. The Fed bought 2.8 TRILLION in Mortgage Back Securities, this led most to conclude hyperinflation will soon make paying off a house with devalued currency easy. That assumption is not true, in fact in deflation cash will be scarce and paying off debt onerous.
https://fred.stlouisfed.org/series/WSHOMCB
Who is going to keep paying on a no money down real estate deal if real estate prices tan. No one! Thus the dynamics that created the bubble will reverse, and become an epic bust – greatly exagerrated by all the cheap money and speculation.
This recently happened in Japan, real estate went up for 20 years, then it went down for 20 years. The same will happen in ZOGmerica. Real estate is going to keep going down as the nation goes bankrupt. Many will lose their homes, all those who did reverse mortgages got suckered. Anyone who bought in the last 5 years of record high prices are going to eat shit – they will owe while prices fall.
http://4.bp.blogspot.com/-WULQuEXKvm8/VDW2HpKhNzI/AAAAAAAAIgw/1M_hZNNe80o/s1600/Japanese%2BHome%2BPrices%2B15%2BYear%2BBear.gif
This is not unusual either, in the last boom and bust I have relatives that were under water on their mortgage because in the midwest real estate prices never recovered to the 2006 highs.
When the bust comes waves of homes will be foreclosed and auctioned off on the county courthouse steps. I can remember Sacramento CA bust in 2009, brand new homes never occupied sold for 25-35K, when just months before they were listed for 250K. Those that had cash could snap up homes for rentals for only $25,000. At $1500 a month rent, they could quickly recover their capital.
https://www.macrotrends.net/2604/30-year-fixed-mortgage-rate-chart
Canada is the worst of all real estate bubbles (and thus will have the biggest crash):
Canada’s Real Estate Bubble Has Grown Over 800% Faster Than US Home Prices
https://betterdwelling.com/canadas-real-estate-bubble-has-grown-over-800-faster-than-us-home-prices/
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https://deflation.com/
https://deflation.com/answers/what-are-the-causes-of-deflation/
What Are the Causes of Deflation?
To understand the causes of deflation one must first clarify the definition of deflation. There is often misunderstanding around this. Many people define deflation as falling prices and inflation as rising prices. These definitions are wrong and describe effects of deflation and inflation, not the causes.
Deflation is a contraction in the amount of money and credit in an economy, where money is a socially accepted medium of exchange, value storage and final payment, and credit is the right to access money.
So, understanding what causes a contraction in money and credit is key to understanding the causes of deflation.
There are two main causes of deflation:
A build-up of excess credit.
A negatively trending social mood.
Pre-Condition for the Causes of Deflation
In order for there to be a contraction on money and credit in an economy, there has to have been a build-up of money and credit in the first place. This can be thought of as the primary pre-condition for the causes of deflation. Over the last couple of centuries, a minority of economists, particularly from the Austrian school such as Ludwig von Mises and Friedrich Hayek, and more recently from so-called post-Keynesians like Steve Keen, have written about the dangers of excessive credit expansion. The idea that credit expansion will lead to credit contraction is far from a mere theoretical, academic concept though. One just has to glance at history to see that deflationary periods are preceded by a build-up of excess credit. In fact, a 1957 letter by bank credit and Elliott wave expert Hamilton Bolton summarized a study he had undertaken of major U.S. depressions since 1830. He found that:
All (depressions) were set off by a deflation of excess credit. This was the one factor in common.
Sometimes the excess-of-credit situation seemed to last years before the bubble broke.
Some outside event, such as a major failure, brought the thing to a head, but the signs were visible many months, and in some cases years, in advance.
None was ever quite like the last, so that the public was always fooled thereby.
Some panics occurred under great government surpluses of revenue (1837, for instance) and some under great government deficits.
Credit is credit, whether non-self-liquidating or self-liquidating.
Deflation of non-self-liquidating credit usually produces the greater slumps.
On Bolton’s latter two points, self-liquidating credit is a loan that is paid back, with interest, from a productive economic activity. For example, a company borrows money to buy a new machine to increase production. The increased production creates the added-value to pay back the loan, with interest. Non-self-liquidating credit is where, for example, someone borrows to purchase a television — no economic value is being added to the economy.
The build-up in excess credit will go on for as long as a) there is a general willingness for people to borrow and lend, and b) borrowers have the ability to pay back their loans with interest. The most important factor is the willingness of people to engage in credit activity and, when this changes, it will have been caused by a move towards negative social mood.
A Negatively Trending Social Mood Causes Deflation
Trends in social mood are the cause of everything. The build-up of excess credit (inflation) that is a precursor to the subsequent deflation is, itself, driven by a positively trending social mood. People are optimistic about the future and so borrow and lend freely. The stock market goes up and companies’ bonds are in great demand because social mood detects nothing but blue skies on the horizon.
At some point though, as the cycle matures, mood transitions from positive to negative. There is no “catalyst” for this mood change — it happens subconsciously and naturally. But as the new negative mood sets in, society in general starts to become more cautious. This permeates into individual decisions regarding financial affairs. Lenders start to be less willing to lend, but borrowers also start to have a more cautious attitude. The process starts slowly, almost unnoticed, but gradually builds momentum until, as Bolton put it, “a major failure” brings the deflation to a head. The great credit crisis of 2008 did not just suddenly appear out of nowhere. Credit markets started to break down in 2007 when the willingness of lenders and borrowers began to wane.
The slowing in credit market and economic activity, caused by the negative trend in social mood, means that existing money is circulated less. Cash hoarding becomes prevalent as an increasingly cautious society sees the value in cash. As the prices of goods and services fall, a mind-set of delaying purchases emerges. This can lead to further cash hoarding, further price falls and a deflationary spiral.
As credit deflates, the money multiplier effect goes into reverse, causing the amount of bank deposits in the economy (money) to shrink as well.
@ Andy..
Yes… interesting synchronicity… the image is far more thought provoking than the article…
June CPI figures released, inflation is still “hot”, here are some headlines about why the Fed will continue to raised interest rates. If inflation continues to surge, interest rates will also, as the Fed is chartered for price stability. It is a modern myth that the Fed has the stock market’s back. Rising rates will put a big squeeze on so many corporations which are continually rolling over debt to stay afloat.
US Inflation Quickens to 9.1%, Amping Up Fed Pressure to Go Big
“US inflation accelerated in June by more than forecast, underscoring relentless price pressures that will keep the Federal Reserve on track for another big interest-rate hike later this month.
The consumer price index rose 9.1% from a year earlier in a broad-based advance, the largest gain since the end of 1981, Labor Department data showed Wednesday.”
https://www.advisorperspectives.com/articles/2022/07/13/us-inflation-quickens-to-9-1-amping-up-fed-pressure-to-go-big
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https://www.advisorperspectives.com/articles/2022/07/13/very-bad-ultra-hot-inflation-print-sends-markets-reeling-anew
https://www.advisorperspectives.com/dshort/updates/2022/07/13/consumer-price-index-june-headline-at-9-06
100 basis point rate hike next FOMC?
https://ca.finance.yahoo.com/news/bonds-slump-inflation-surge-fuels-130720879.html
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Rising rates in the mortgage market will start crushing home prices. IMO this will soon develop into a panic to get out of stocks, bonds, and real estate. Already just the first uptick in rates has completely crushed cryptos – which were driven by hyperinflationary fears. Soon gold and silver will be valued much lower.
Total crypto market cap has dropped by 2/3rds, 2 trillion loss:
https://coinmarketcap.com/charts/
Ultimately cryptos are worth zero.
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Gold find in Uganda bigger than all gold mined in history:
https://www.reuters.com/article/uganda-gold-idUSKBN2NP17M
“an estimated 320,158 tonnes of refined gold could be extracted from the 31 million tonnes of ore.”
Note: only 220,000 metric tonnes mined so far in human history!
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Deflation seems to be coming in a big way/
He’s very happy for someone who is deflating and depressing us
One more comment and highly recommend you listen to this guy:
Jim Bianco joins CNBC Fast Money: 100 in July, 75 in September, Stagflation a Real Possibility
630 views Jul 13, 2022
https://www.youtube.com/watch?v=D9wbCY_Z9_k
He is a top rated expert on everything the Fed does. He says in this video that:
1. the Fed has lost credibility
2. 70% chance 100 basis point rate hike July meeting
3. 75 points up again in September
4. The Fed never stops rate hikes until the Fed Funds rate is ABOVE the inflation number. Well inflation was reported today at 9.1% today.
5. Stagflation is here already.
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So that means interest rates are going up again and again and again. Interest rates are going to the moon people, they are going back to the 1980 highs and way faster than anyone expects.
And I predict Jay Powell will get the boot and a inflation hawk James Bullard will be installed as next Fed chief, he will REPEAT raising rates aggressively like Paul Volcker.
https://www.thebalance.com/who-is-paul-volcker-3306157
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The real inflation rate is far above the official rate. This is tracked monthly by Shadow Stats, here is the latest chart:
http://www.shadowstats.com/alternate_data/inflation-charts?mc_cid=c9e06f0672&mc_eid=UNIQID
http://www.shadowstats.com/
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https://www.economicgreenfield.com/2010/12/03/long-term-historical-inflation-and-implications/
Why would the Western establishment money power announce their global plans in the 1992 UN Agenda 21 and in the 2015 UN Agenda 2030 unless they are only the partial plans and politically correct pretexts to usher in their actual “resets”, which now look more and more to be mainly economic ones. The few who reacted to those UN sustainability humanitarian-carrot agendas saying it would end all our individual rights and freedoms and impoverish the planet, and said that none of the measures were actually necessary, or that all the sustainability perils were either fake or totally exaggerated, were totally ignored and discounted by the MSM, all financial and corporate leaders, together with all of our governments. Why? Because in fact they were all pretexts mainly for something else and still are.
You also have to ask why to this day even throughout the massive Covid fraud there has been absolutely no opposition to any of the UN or WEF plans, measures, and mandates coming from the corporate and financial heads and leaders in the world. There is no official opposition anywhere to all of these machinations and the silence especially from the corporate and political heads is deafening. Instead, those who have their fingers in all of the major economic pies of the world are just following in lockstep every measure meted out to them from above, and it is clear that they would not do so on the basis of all of the UN alleged sustainability perils. There must be some actual gain for themselves in the works.
It also does not make sense that the most practical people on the planet who are the bankster and corporate leaders, and very close to whomever is at the top of this ruthless pyramid of power are so silent about the radical changes proposed to imprison even them in the ostensible NWO UN plans. Hence, there must be other actual plans which in fact serve their interests more directly.
Listening to economists in early 2020 before Covid hit the fan, the plans which were announced for the future of our economies called for a major shrinking of our work forces, with planned downsizing in various industries, and the amalgamation of smaller corporations in order for their survival. There was the economic crisis in mid 2019 of the failing Repo markets, and in September 2019 the US Fed announced a trillion or so of QE to keep the over-night loan liquidity from freezing. Coincidentally, since the Covid scam began we have learned of the immense planning which took place with the involvement of our governments going back to at least to 2010 and likely much earlier with the 2009 changes to the definition word ‘pandemic’ by the WHO which meant that emergency lock-step mandates could be imposed by our governments for anything deemed as a pandemic and even for a common cold. All of our shill governments dutifully endorsed the changes, willing to be bound to any deemed virus illness in order to shut us down, with never a peep from any corporate or institutional head. We now know that the plandemic plans were in the works as were the vaccines at least a decade before kicking off the pandemic in 2020. It is, therefore, most difficult to accept that our governments together with the major financial and economic power moguls of the world and particularly of the West were not also planning each and every economic crisis to usurp more and more control over us.
The only major geopolitical economic issue on the radar since the mid 1970’s was the decision of the Western financial and corporate magnates to initiate free trade which not only entailed a great deal of development in the third-world nations, and particularly in China, but also a great deal of profit to be made from the resulting low-cost foreign labor, and mostly on the basis of using Western markets for their sales. All of this which occurred was not to the determent of any of the globalist-orientated corporate owners and investors, but only to ours. The huge economic expansion was their gain and our loss. In 20 years each creditor Western nation was turned into a debtor nation and I defy anyone who says that was not unforeseen or that it was accidental. Like everything else happening since, it all has been planned years in advance, not by God, but by men and women who have replaced God by themselves.
It is no accident that Justin Trudeau considers China to be a model nation which he wants Canada to follow, and that does not mean that he is a communist or that he isn’t. What it means is that all of the Western leaders in power these days are simply shills of the global economic order already established, and that all of them have bought into a “leveling” based on free trade where according to the financial and corporate heads wearing the pants, all prole working stiffs, and small business people will just have to get used to the competition and take much less home in order to survive.
Pope Francis and the international socialists love it as it will entail a flow of wealth from the West to the poorer regions of the world, and if we are to become more completive then at least what we have will be earned allegedly under more “equal” conditions. Marxist ideology is mainly economic equalization theory, and there are good chunks of it still quite active where the solution seems to be to destroy the hated bourgeoise class in order to level things off. They are terribly good with tearing down things to ground level in the name of equality but are inept at creating anything on the basis of equality.
However, despite the interests of the international socialists, the major trade unions did nothing in their traditional left-leaning political parties to protect jobs and industries in the West from the effects of the international free-trade investments in the gold rush to China. That one major economic global shift to China which was in fact as engineered and planned as the Covid plandemic, serves better to explain all of the sustainability pretexts and the looming technocratic and totalitarian WEF resets. We are essentially living in a top-down global business order in which these financial and corporate heads now expect the wages and benefits of any employee to be competitive and on par with wages in places like China or Bangladesh. If we want to live at a higher standard of living and be more like China then we will have to accept their totalitarians controls, and if we want more freedom then we will all end up like the people in Bangladesh and live in squalor. That seems to what the top-down establishment is saying.
Notice, that anyone of stature who suggests that we do not need any products from any third-world or totalitarian nation serving to impoverish us and destroy our hard-won structures is quickly ushered off the political stage and silenced. No the entire globalist movement is really backed by the international banksters and the corporate giants which actually own and control our governments. In line with all of the changes being forced upon us, they are systematically nullifying our basic legal rights. Corporate heads hate the alleged inefficiency which come from them and the intrusions by the courts. With such rights and benefits they keep saying, “We cannot compete against China. We have to be more like them. Let in-house tribunals do the work. Employees can be stakeholders and earn more social credits by being productive and obedient to one of the absorbing monopolies.”.
In fact, every UN sustainability pretext is up for grabs when it comes to negotiating with the BRICS nations which on one hand mainly want to control their own resources and emissions, but on the other hand they want to keep exploiting Western markets without any barriers. The Western-based global financial and business establishment agrees because they like that very arrangement which has made them so wealthy and powerful. But no longer is anything really major “Western” in terms of asset control or with respect to national loyalties, or even identity. Their interests are global and any tariffs are anathema to them.
To bring about their NWO they have to kill truth, freedom and justice as we know it, which includes the systematic killing of the integrity of the individual person, any semblance of real democracy, and our recourse to the courts for wrongs committed against us. They have been systematically killing our civilization for the past 60 years, and the financial and corporate elites are now the major source of all our our problems.
Yukon Jack: Yes, I have seen the joys of negative equity in places like Hong Kong. People took out a 2-million-dollar mortgage. Suddenly their property is only worth 700,000. Yet they still owe the bank 2 million. They could sell, go live under a bridge, and still they would be up to their necks in debt. Some end up jumping off the roof.
@ lofl: It was my suggestion for “cally” (or “my name”) to seek-out Alexa for AI — and then Alexa would have referred “cally” to “Sophia” and other robot models similar to her/it (aka: Artificial Intelligence). I have provided links for your convenience. 😀
https://www.businessinsider.com/sophia-ai-robot-video-viral-future-tech-2017-11
What is ALEXA? Best answer: Alexa is Amazon’s cloud-based voice service platform that powers an entire smart device ecosystem. With its constantly-improving artificial intelligence capabilities, Alexa can respond to simple queries and perform complex routines to provide information, entertainment, and general assistance to its users.
https://www.androidcentral.com/what-alexa-how-it-works-and-what-it-can-do
Fred B–Socialists are good at tearing down the good things and building white elephants; China drowned 40 cities and, I think 200 towns, just for a reservoir that can supply two cities with electricity