A beloved eyesore implodes: The Capital Plaza Tower, Frankfort, United States. Photo credit: Micah Williams

The Big Collapse Awaits

In the 1970s when I served in the congressional staff and in the 1980s when I served in the executive branch, there was still some intelligence in the US government, with the exception of the Federal Reserve, where there has never been any intelligence.

Published: September 12, 2024, 4:43 pm

    Today there is no sign of intelligence anywhere in the US government. That fact is documented every day on my website.

    As I recently reported, about 900 000 new jobs that had been claimed over the preceding year have just disappeared in a revision. A further downward revision could follow.

    These non-existent jobs were the Federal Reserve’s evidence for a hot inflation-prone economy justifying high interest rates. All the time the Fed was preaching inflation, the Fed was contracting the money supply, a contraction that has been underway for 2.5 years. This in itself is proof that the “inflation” was really higher prices caused by the shortages the senseless Covid lockdowns caused. In other words, the higher prices were due to mandated shortages, not to inflation. A central bank too stupid to recognize this is too stupid to justify its existence.

    Whenever the Fed contracts the money supply recession follows. If the contraction is too large and lasts too long, as it was following the 1929 stock market crash, the result is a decade of depression and high unemployment.

    A contraction in the money supply means that the same level of economic activity and employment cannot be maintained at the same level of prices. Either economic activity and employment fall or prices fall. Historically, it has been economic activity and employment that fall first, and prices follow. Generally, that means profits fall.

    Now that it has dawned on the dummies at the Fed that they have set a recession in place, the talk is interest rate reductions. Wall Street is salivating over a possible half of one percent beginning. For Wall Street, a reduction in interest rates means an increase in money, and it is liquidity increases that drive stock prices higher. What usually happens is that stock prices rise in expectation of the Fed loosening, but by the time the Fed loosens the economy is in a recession. So stock prices rise while profits fall, with the market banking on recovery to bring profits up to the level implied by the stock prices that have jumped the gun.

    Things, however, can go wrong. Expectations of lower interest rates is a signal to start up home building. But if a recession is in place, who is going to be purchasing homes? If the builders’ loans are due before the houses sell, the builder goes bust.

    In today’s immigrant-invader overrun America, there is a new consideration. According to even presstitute media reports, in blue cities immigrant invader gangs are seizing homes and apartment buildings, and soon, if not already, newly constructed homes. If you are sufficiently stupid to live in a blue city, you can go to the grocery store and return to find your home occupied by immigrant-invaders. The police will not remove them.

    If you are stupid enough to live in a blue city, what this means is that you cannot risk going shopping, or to a medical appointment, or to pick up your kids from the school that indoctrinates them unless you hire a security service to occupy your home in your absence. You cannot possibly risk your home by going on a vacation. Builders will have to provide armed security for nearly finished homes, apartments, or any type of structure.

    No, I am not delusional. This is what is already happening.

    Keep in mind also my reports on The Great Dispossession. Federal regulators have taken away your ownership of your investments and bank account and given them, in the event that your depository institution enters financial difficulties, to the creditors of your depository institution. This is what is meant by a “bail-in.” If you thought you didn’t need to read my articles, you made a mistake. Use the search feature and find them.

    To be clear, we already own nothing if there is another financial difficulty. Given the Federal Reserve’s record, such a difficulty is certain.

    Will it be this time, or the next time, or the one after?

    pcroberts@app-6271a6d1c1ac18bb0c1965d2.closte.com

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