Posts Categorized: Bill Holter
Over the years, many have continually asked “when”? When will the system break down? Well, I have some good news and some bad news for you. The good news is; you are watching the collapse in real time with your own eyes. The bad news? You are watching the collapse in real time with your own eyes! This will be short and sweet.
1. Inflation is raging as the continual money printing, expansions of debt, and deficit spending have finally overwhelmed the financial engineering used to hide their dirty work. Simply, our money was debased as the party raged on.
2. As a result (response) of the monetary insanity, market interest rates began to rise over a year ago. As usual, central banks are way behind the curve and are now being forced to tighten.
3. While inflation of commodities and everyday goods kicks into full gear, asset inflation is giving way to asset deflation.
4. Asset bubbles are bursting all over the world with THE most important rupture being the credit markets. Over the last year alone, interest rates on average are up well over five fold. The “foundation”, credit, has cracked and crashed before your very eyes. Few truly understand this.
5. Stock markets are now down significantly from their highs and the average stock has already entered bear markets. Those viewing their 401K statements for April will be very disheartened.
6. Real estate, which had been so hot over the last couple years has turned moribund. Buyers have been priced out, followed by being shut out due to mortgage rates more than doubling. Affordability does not exist. The psychology is about to change as owners will soon understand their asset is becoming a liability.
7. A topic all on its own, the rule of law has broken down but a subject for another day.
So where does this leave us? We had the “good fortune” of living in a virtuous cycle to the upside, unfortunately we will now have to live in a virtuous and self reinforcing down cycle as asset values circle the drain. Without great explanation, as rates rise, asset values decline, it is simple math. And here is the problem; think back in time only a couple years ago and you’ll remember how people were spending freely because they felt “rich” (and maybe got some of the stimmy monies?). Now it is the reverse. Homeowners are sitting on properties much longer and buyers no longer (have the ability) bid above asking price. In fact, discounted bids are already becoming the norm. The average stock portfolio is down well over 20% since the start of the year. Bluntly, people are beginning to feel “poor” and they will react by reducing spending. All of the above of course is topped off by the cost of living increases we already know of…
Again, none of this is rocket science and should not be new to anyone reading this. The bottom line is this; the wheels are falling off the global debt cart in a world where nothing functions without the use of credit. Shortages of all sorts are already happening even if you have the cash for purchase. The greatest fear for central bankers, debt deflation has finally arrived!
Lastly, please understand and never forget, “markets” have been ruled by financial engineering for three decades. Derivatives (probably $2 Quadrillion now?) of all sorts will begin to blow up. Whether it be because of the underlying interest assumptions, over concentration of paper versus deliverable goods (force majeure), or just plain old outright insolvencies …you will witness the exact reverse (in albeit a MUCH shortened timeframe) than the buildup.
As we warned you for years, “inflation of the things you need, and deflation of the things you have”! I know, it’s a bad cocktail but exactly what we are faced with … your best position is to be where you cannot be bankrupted while the world around you bankrupts!
We had our pal Tony sit down and speak with us for a couple of hours regarding being prepared. A ton of information and we have posted companies/links on where to purchase many of the items he speaks of. You can find them here. No one can come up to full speed with the time left us. Hopefully you are able to pull several ideas from this and last week’s talk to help you prepare for what we see coming!
Economic Explosion – The Fuse Is Lit | Bill Holter
Multiple countries are moving away from the US dollar. The fuse it lit, says Bill Holter, contributor at JSMineSet.com, and the system will explode when the only buyer of Treasuries is the Federal Reserve. He describes how to prepare for a collapse. “In an urban environment, when the financial system goes down,” he says, “you will not make it.” He suggests living rural to prepare for the collapse of the system. 90% constitutional silver could be the ideal transaction medium in a currency crisis, he says, because of its recognizability and divisibility.
Find Bill Holter online: https://www.jsmineset.com
For many years I have written articles with charts, graphs, data, etc. to connect dots and come to a conclusion. Many topics were complicated and we tried to simplify for the average reader to understand. Occasionally we wrote opinion pieces, but for the most part the articles contained proven facts that when accompanied by other factual data could lead to logical conclusions. This article could be considered an opinion piece as I do not care to footnote or prove anything I say. You can either believe I am correct or not. I write this because I would like to be on the record one last time. Let me start with the conclusion: our way of life is over! No matter who you are, how wealthy or connected, your life will change dramatically and will certainly become more difficult going forward. Interest rates have exploded on a percentage basis from the lows over the last couple of years (which had been in place for many years). Another way of saying this bluntly is that bond markets have crashed. Some will say “so what”, few understand. Credit has become THE foundation for both the financial system and real economy. The foundation used to be gold and silver, now it consists entirely of promises to pay. As interest rates rise and bond prices collapse, the “foundation” is being hollowed out.
Stocks have been hit pretty hard, even some of the “generals” that held the indices up for so many years are beginning to falter. We even have some indices like the Russell already making 52 week lows. We also see the sales volume in real estate beginning to dry up. In case you have forgotten, “price ALWAYS follows volume”. Mortgage rates were 2.75% just a year ago, now they are 5.4%, twice as high! If you have not made the connection, a doubling of interest rates basically means a halving of what someone’s income qualifies to borrow. In other words, for those who need to borrow to purchase real estate, their purchasing power just dropped 50%.
We were laughed at and maligned for many years and still somewhat today by those who refuse to pull their head out of their ass to see real world happenings. A short but devastating list of real world happenings where little to no debate is needed; inflation of nearly every single good or service we need to live, deflation of assets has already begun but most importantly of bond prices, we are on the cusp of WWIII as the west seems hell bent for conflict (to point at as the reason for economic and financial failure?), central banks and sovereign treasuries have destroyed their own balance sheets and own failed/failing paper or owe more than can ever be repaid, market liquidity at extremely low levels even though tens of trillions have been pumped into the system, moral and ethical decay as never seen before, work ethic has never been lower, knowledge of basic survival skills has become lost. Hell, a good part of the country cannot (or refuses to) define the difference between male and female!? It has gotten so bad that the current administration feels the need to establish a “ministry of truth” to silence (punish?) anyone with differing albeit truthful and realistic views.
Volatility in markets has exploded because liquidity seems to be drying up and credit more difficult to come by. If you are a student of history, then you’ll know that prior to every single market panic, volatility exploded before the event was understood by the vast majority. This is exactly where we are now in my opinion. Do we get a bounce from here? I do not know and will tell you it does not matter because this “credit cake” has already been baked and in the process of burning to a crisp! Of course, a .50 basis point rate hike by the Fed going into recession should solve ALL the problems?
To conclude, I believe you should either blissfully enjoy the precious little time left in fantasyland or, prepare for the sudden impact that is mathematically coming. In my mind, it is not if but when …and only a matter of how bad it will get? Do we go Mad Max? In late 2006, a Mad Max scenario was not an odds on favorite because society was not as fractured as it is today. Now that drag queen shows and so many other perversions are promoted by those paid by tax dollars to babysit our children, the fabric has already been torn. Not to mention the concerted efforts to cancel The Constitution of the United States? You can either believe the current fantasyland is normal and will continue throughout your lifetime, or you can believe that things real ..are, well, real? Maybe it would be easier to be ignorant and blissful? I guess it would be until it’s not? But then of course it is too late, I suppose you can always show up on your crazy friend’s/relative’s doorstep and hope they forgot you consistently called them an idiot and prepared enough for you both? It is here, it is now, and nothing you do will prevent it. Your only alternative is to do your best to prepare …NOW!
Standing a fearful watch,
Bill Holter’s Commentary
And you thought it was a “free country”?
The Illusion of Freedom: We’re Only as Free as the Government Allows
We’re in a national state of denial.
For years now, the government has been playing a cat-and-mouse game with the American people, letting us enjoy just enough freedom to think we are free but not enough to actually allow us to live as a free people.
Bill Holter’s Commentary
What a shocker!?
Federal Investigators Reveal ‘Bombshell’ Findings CDC & FDA Undertook Politically Motivated Actions During Covid Pandemic
A federal investigation into Health and Human Services, National Institutes of Health, the Centers for Disease Control and Prevention (CDC), and the Food and Drug Administration (FDA) found that public health officials suppressed Covid study findings for political reasons, the Government Accountability Office (GAO) has revealed in a 37-page report.
Bill Holter’s Commentary
Have your friends and relatives called you a tin foil hat wearing conspiracy theorist lately?
The Great Reset: Cyber-attacks on America’s Food Supply Have Started
Last night, there was a fire at a food processing plant in America. It was the 18th such “accident” to hit our food processing plants and distribution centers in 2022.