“A banker is the person who lends you his umbrella when the sun is shining and wants it back the minute it rains.” – Samuel Clemens
Hello Friends.
I want to start this report with a few words about how to process information in a world that has deliberately had all connections to reality, all the anchors and moorings, destroyed. As has been repeated for over a century and never more accurate than today, we are not in Kansas anymore, and as hard as it is to let go, no silver shoes are waiting to be tapped together to bring us back to Kansas for a long time, if ever.
Our world now is a live-stream-driven political reality – a fake reality presented as a newscast from a reality show presented as real life!
People have wittingly or unwittingly taken walk-on parts and roles in this simulation of reality for various reasons. For most, it is fear. For some taking part as a crisis actor or misfit has rewarded them with an elevation of status. And more and more misfits will be granted status increases when social credits increasingly become part of the monetary system. In previous articles, I have talked about the role of social credits after we are subjected to the Great Reset.
For this article, I want to address the fear component of role-playing in this fake, digital, Hollywood style dream-show.
Mainstream media is captured and a fully controlled platform of propaganda. It is the primary feed point for the newscasts presented as reality in this fake political reality. Part of the responsibility of the mainstream is keeping people in a state of learned helplessness, numb with fear, and wide open for profoundly evil suggestions.
Disinformation
…Deliberately misleading or biased information; manipulated narrative or facts; propaganda – Dictionary.com
We are being played from all angles: nuclear war, fabricated pandemics, fabricated environmental crises, political scandal, polarization, and disinformation about various dangerous topics from food shortages to the financial system.
We'll know our disinformation program is complete when everything the American public believes is false. William Casey, CIA Director 1981-1987
People must tune out and turn off mainstream information at all sources to get through this maze. Cable TV, mainstream Internet live streams of pretended news, magazines, newspapers, mainstream-owned radio, and TV, and the vast sea of digital channels offering 24/7 programming must be drastically curtailed in our lives.
Knowledge is an excellent reducer of anxiety and fear, but knowledge is no longer available to those that consume mainstream information products.
Inflation, Liquidity and Currency Crisis.
Over the past 4 or 5 articles, I have discussed why raising rates in a collapsing market will not solve the inflation problem. Raising rates is only worsening inflation problems for the middle class and below.
Raising interest rates is relentlessly promoted by the mainstream as the Federal Reserve's gallant attempt to fight inflation (disinformation). The Federal Reserve is not a Federal agency and has no reserves. The Federal Reserve is the forward-facing division of a group of private bankers controlling the US (and worldwide) credit systems. It has only one mission: to serve the interests of the member banks and shareholders.
The Fed can control interest rates by raising rates when the economy is heating up and money is changing hands quickly (velocity).
But to prevent damage to the economy, the Fed and governments in league with the Fed must cut spending, including ending debt buybacks, stopping quantitative easing (just more printing), and other programs that pour currency into the system already choking on its currency.
As we can verify, the Fed and the governments they control are not reducing spending and are still raising rates in a slowing and contracting economy. This is evidence that a deliberate plan is in progress to further damage the economy.
The damage will come first from inflation, then by the side effects of inflation, like liquidity lockups, and finally, a loss of confidence in the dollar. Plummeting purchasing power is the end game, resulting in devastation to anyone who has not calmly made an effort to educate themselves regarding how to prevent from being wiped out and to recognize when they are being deceived by the mainstream.
Bombs In The Bond Market
The debt market is a critical component of the market's ability to soak up currency or provide liquidity, like oil in a machine, to the currency markets. When inflation rises and yields rise, bondholders, especially in a world reserve currency, begin to sell bonds to improve liquidity (supplies of cash).
As businesses experience a slowdown in sales due to rising interest rates and inflation, they drain their cash reserves making debt payments and standard monthly expenditures.
When these businesses look to banks for working capital, they, too, are faced with rising lending rates and increasing problems in the banking industry. Banks become illiquid as they pay higher Fed fund rates, and deposits are sucked down to support rising liquidity demand. Meanwhile, bank asset values are falling as housing prices decline, causing balance sheet losses and potential bank failure.
This process leads to the so-called liquidity crisis when cash is not available. In turn, the Federal Reserve is forced to provide liquidity to cash-starving banks while buying back debt products, further exacerbating inflation.
This death cycle is happening now and is causing currency crises. The currency crisis is what we are experiencing currently as the dollar (and euro, and pound, etc.) buy less and less, presented as rising prices across the board by the mainstream media.
At some point, people who have been wisely buying silver (and gold) will lose all faith in the dollar's purchasing power and begin to trade silver for products and services. This is because silver (and eventually) gold will maintain purchasing power reducing the actual cost of available items and stopping the hemorrhaging of purchasing power in the paper currency markets.
Signs are everywhere that central banks are printing money to save banks and to save national sovereign currencies. For example, South Korea just announced a plan to provide $35 billion (50 trillion won) in support for credit markets that have been strained by rising interest rates, stepping in to reduce the risk of defaults weighing on the economy.
South Korea will expand and operate its “liquidity supply program” to prevent a credit squeeze roiling corporate bonds and other short-term money markets, Finance Minister Choo Kyung-ho said on Sunday in a statement, after a meeting with Bank of Korea Governor Rhee Chang-Yong and other senior policymakers. – IBID [emphasis JM]
On Friday, October 14th, the Federal Reserve bailed out Credit Suisse.
The Federal Reserve Banks have extended $6.3 billion to the Swiss National Bank through the Dollar Liquidity Swap line.
That's after swapping $3.1 billion last week, with Credit Suisse announcing shortly after last Friday that they will buy back up to 3 billion Swiss francs ($3 billion) of debt after credit default swaps skyrocketed for the bank.
The failure and collapse of Credit Suisse could be the beginning of a chain reaction much like the Lehman Brothers collapse in 2008.
Where No Bubble Has Gone Before: Treasury Bubble
Worse, though, is the debt crisis facing US Treasuries if dollar strength forces central banks outside the US to sell treasuries to maintain liquidity.
According to the financial analysts at Chief Investment Office (CIO):
The USD wrecking ball will force central banks to defend their currencies,” Farr told Barron's, referring to the US dollar. “If central banks must defend their currencies, they will sell Treasuries to raise” dollars. The upshot is lower bond prices and higher rates, he said: “The act of selling Treasuries is bearish for bonds, and we believe this worldwide phenomenon is barely even out of the starting gate.
For months, traders, academics, and other analysts have fretted that the $23.7 trillion Treasurys market might be the source of the next financial crisis. Then last week, US Treasury Secretary Janet Yellen acknowledged concerns about a potential breakdown in the trading of government debt and expressed worry about “a loss of adequate liquidity in the market.” – Fragile' Treasury market is at risk of ‘large scale forced selling' or surprise that leads to breakdown, BofA says
Herein we discover the Trojan Horse currency virus activated by Fed rate increases and finishing with the desired result: failed fiat currencies worldwide. The poison pill contained in the world reserve currency, the dollar, has infected all nations with hundreds of trillions of dollars poised to find their way home, decimating dollar purchasing power as they do. This will be the final cut of the inflation knife: hyperinflation.
Summary
The point of the above analysis is that we are being deliberately led to the point where the current financial paradigm, including cash and the privacy it provides, will be said to have failed and labeled a terrible idea that must be scrapped. Of course, this was evident in 1971 when the dollar was unleashed from the chains of gold backing.
We will be told that a new and safer currency will be introduced to prevent the massive damage done by fiat currency from ever happening again. That is precisely the same story sold to get the Federal Reserve Act passed in 1913.
Forget the fear and make plans. Plan to have purchase-power-preserving assets in the form of precious metals, especially silver. Acquire food, water, guns, ammo, productive land, and farm equipment. Acquire animals like chickens to get through this calamity created by design and promoted by the controlled mainstream media.
When the central bankers install the new digital currency as a replacement for the dollar, humanity must refuse to accept any further central bank currency.
At that time, all of us must become our own bank. By holding and transacting with your own precious metals and other competitive currencies, there will be no need for central banks or central planners. And as for government, the government that governs the least governs the best. We must scale down and minimize centralized control systems in favor of local and self-ordering private solutions to the problem of government.
For now, fear not, be patient and stand ready when to time is right to finally end the tyranny of central banking.
Market Update
Physical Silver & Gold Premium Update
Silver Spot Price: $19.54 | 1 oz. Silver Eagle Price $39.24 | Premium 100.8% !!
Gold Spot Price: $1670.90 | 1 oz. Gold Eagle Price $1,883.60 | 9.72% (All Time High)
$50 face value junk silver 69.27% over spot price for 71.5% silver quarters
10 Yield: 4.02%
Crude Oil Price: $87.87
Housing Market:
Housing Market Hits Brakes As Prices Fall Most Since 2009
What Does a Bond Market Collapse Mean for Mortgage Rates?
Used Car Markets:
CarMax says inflation taking toll on car demand; auto stocks fall
Please note that the so-called “Junk Silver” is a fantastic way to own fractional silver and carry and use silver in a familiar, safe manner. Please see my new article, What is Junk Silver and Why You Should Buy Some. In this article, I explain how to price and buy “junk silver” and why it is a good idea to get some – oh, and get it soon.
Final Words
Forget the fear, this is the world we live in, and very little of what we learn passively is true. It has only propaganda value, an agenda in play to cause fear and indecision.
Turn off the mainstream and bone up on surviving a financial wipeout.
The wipeout is deliberate, just like the fake pandemic and the damages caused by vaccines. We need now only plan to survive and then later punish those involved and begin taking steps to prevent something like this from happening again.
** Ideas and suggestions in this article are my own opinions and are not intended to be financial advice.
Jack Mullen
