Earlier today, an article appeared on Zero Hedge titled ‘Nowhere To Hide From The Collapse Of The Everything Bubble’ authored by Nick Hubble via Fortune and Freedom. In this writing, Mr. Hubble makes the over arching case that all asset classes are falling due mainly to the actions of the central banks and their money printing. In general, he is correct. However, Hubble made two massive errors in his claims. What concerns me is that if the average person takes the following information at face value from Hubble, or continues these assumptions as they are part of the current Zeitgeist, he or she will indeed be in for a world of hurt that they likely won’t come back from.
‘As democracy is perfected, the office of President represents, more and more closely, the inner soul of the people. On some great and glorious day the plain folks of the land will reach their heart’s desire at last and the White House will be adorned by a downright moron.’ H.L. Mencken. (1880-1956).
Is The Crypto Threat To U.S. Financial Stability $889 Billion Or $10 Trillion?
Yesterday, Benzinga reported on a curious statement made by Fed Chair Jerome Powell during his appearance before the Senate Banking Committee on Wednesday. Powell was asked by Senator Kyrsten Sinema (D-AZ) if the Fed had been tracking the events in the crypto markets in the past several weeks. Powell responded that the Fed was watching those events “very carefully” but the Fed “did not see significant macro-economic implications.” The article goes on to lend credence to this observation from the Fed by noting the following:
This is very real, and yet even today Jay Powell states to Congress there is no threat to the dollar’s reserve status. Do you see this news anywhere on mainstream media? No? That is verification enough for me …
Putin: New Reserve Currency Proposed Within BRICS
Russia’s Vladimir Putin unveiled a new scheme of international settlements, moving further away from the US financial system. In an address to the BRICS Business Forum Wednesday, he proposed a new reserve currency that will be used for payments in international trade.
Putin said the new payment method will be based off the basket of national currencies of BRICS member states: Brazil, Russia, India, China (PRC), South Africa and Russia. He then noted trade in goods and services within the bloc has surged in recent months amid failed Western sanctions.
So let me get this this straight, those running this country actually believe the way to reduce inflation is to borrow and spend more?
Biden Economic Adviser Asserts That More Government Spending Will Solve Inflation Crisis
Biden’s “Build Back Better” efforts have been a phenomenal failure so far, but maybe that’s because Americans just don’t understand a good thing when they see it?
This has been Biden’s argument on the state of the economy lately, as he persistently argues that there is no threat of recession because the US jobs market still “strong.” There is no mention from the White House regarding the fact that covid stimulus spending artificially drove up retail demand and created a temporary spike in jobs. If they were to admit that layoffs are about to ramp up because the covid checks are gone and people’s credit cards are maxed out because of inflation, then Biden would have nothing left to brag about.
Germany Triggers ‘Alert Level’ of Emergency Gas Plan, Sees High Risk of Long-Term Supply Shortages
Germany has declared it is moving to the so-called “alert level” of its emergency gas plan, as reduced Russian flows exacerbate fears of a winter supply shortage.
Economy Minister Robert Habeck announced on Thursday that Germany would move to stage two of its three-stage plan. It means Europe’s largest economy now sees a high risk of long-term gas supply shortages.
WOW, homeowner mortgage payments up 35% since the beginning of the year!
‘It is error alone which requires the support of government. Truth can stand by itself.’ Thomas Jefferson. (1743-1826).
Bill Holter’s Commentary
NATO pokes the bear even more? Cannot even imagine the dollar/ruble cross when this is all over?
Why Is Lithuania Risking Russia’s Wrath Over Kaliningrad?
Ryan WhiteTue, June 21, 2022, 2:06 PM·3 min read
Lithuania imposed a ground transit ban of EU sanctioned Russian goods through its territory on Saturday, cutting off the Russian exclave of Kaliningrad Oblast.
The governor of the oblast, Anton Alikhanov, said the ban will block half of all goods coming into the territory, the majority of which travel via railroad. The ban will also cut off Kaliningrad’s only oil pipeline from Russia.
Has Crypto Endangered Federally-Insured Big Banks? Ask State Street
There have been a number of articles lately attempting to reassure Americans that the crypto carnage will not cause financial instability or an economic collapse in the U.S. like that of 2008. The fact is, absolutely no one can say with any degree of certainty what will be the outcome of this unprecedented era of reckless investing. That’s because anything that causes the megabanks on Wall Street to pull back from lending to one another or to major counterparties – out of fear that the institution has dangerous crypto exposure – could cause the same contagion effect that occurred in 2008 from opaque derivatives and toxic subprime debt exposures.
While the masses are focused on inflation, the real story is MASSIVE ASSET DEFLATION! What few understand, debt underlies every single fiat currency on the planet. So as debt implodes …so do currencies. Inflation of the things we need, deflation of the things we have, and national currencies becoming worthless. What an ugly cocktail!
Unfinished Behemoth Ship Destined For Scrap
An unfinished mega-liner, Global Dream II, which was expected to become one of the world’s largest vessels, will be sold for scrap after its owner, company Genting Hong Kong, went bust.
In case you were wondering, with the current debt structure …we can never ever have positive real interest rates. This is why reset…
‘History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance.’ James Madison. (1751-1836).
Bill Holter’s Commentary
And it is only the beginning!
Jay Powell’s Punch In The Face For The American People-The Dollar Is No Longer The Preeminent World Currency
On June 17, 2022 at a Federal Reserve research conference, Jerome Powell stood and admitted to the world that the United States Dollar was no longer the preeminent world currency:
…’Looking forward, rapid changes are taking place in the global monetary system that may affect the international role of the dollar in the future. Most major economies already have or are in the process of developing instant, 24/7 payments. Our own FedNow service will be coming online in 2023. And in light of the tremendous growth in crypto-assets and stablecoins, the Federal Reserve is examining whether a U.S. central bank digital currency (CBDC) would improve on an already safe and efficient domestic payments system. As the Fed’s white paper on this topic notes, a U.S. CBDC could also potentially help maintain the dollar’s international standing.’…
Union Pacific Rail To Cut Fuel Shipments By Pilot Flying J Truck Stops And Gas Stations
Shameek Konar, the CEO of Pilot Flying J truck stops and gas stations, explained during a hearing that on April 13, Pilot Flying J was informed by Union Pacific Railways (UP) that the company was “required to reduce shipments by 26 percent.” Then, in subsequent conversations, UP asked them to reduce rail shipments even further by 50 percent or face embargoes. Konar said that the reductions will significantly impact the availability of fuel and fuel prices. Pilot Flying J supplies roughly 30% of diesel exhaust fuel (DEF) in the country. The trucking sector of our economy depends on DEF as all trucks manufactured after 2010 cannot operate without it, and the cut in deliveries will heavily impact the trucking industry.
Here is part of the deflation side of the equation …
Commercial Real Estate Is On The Brink
Commercial real estate may be on the brink, but nobody is ready to panic just yet.
The aftershocks of the idea of a coming recession continue to make their way through every industry. We have reported about numerous companies – including Netflix, Tesla, Wells Fargo, Cameo, Pelton and many more – who have all already implemented layoffs as a result of the slow economic climate.
This is not something that insolvent central banks/sovereign treasuries can afford. Hopefully recipients will understand they need to convert the currency before it becomes worthless …
Widow Will Become First Person In The UK To Receive Covid Vaccine Damage Payment
A woman whose fiancé died after having the AstraZeneca Covid vaccine will become the first person in the UK to receive a Covid vaccine damage payment of £120,000, GB News can exclusively reveal.
Until now, no lump sums have been issued to more than 1,300 people who claimed damage claimants for Covid jab-related injuries and bereavements, despite reports more than 400,000 people have reported vaccine side effects to the Yellow Card Scheme.
She will tell you after the smoke clears that you had fair warning?
Europe Faces ‘Severe’ Risk Of Disorderly Financial Market Correction: Lagarde
FRANKFURT, June 20 (Reuters) – The risk of an abrupt correction on Europe’s financial and housing markets is high, European Central Bank President Christine Lagarde said on Monday.
“Risks to financial stability have perceptibly increased since the beginning of this year,” she said in her capacity as the Chair of the European Systemic Risk Board, the European Union’s financial risk watchdog.