Damned If They Do, Damned If They Don’t On The Debt Ceiling – Investment Watch

By Brandon Smith

In 2021 I published an article titled ‘The Fed’s Catch-22 Taper Is A Weapon, Not A Policy Error’ through which I outlined the deliberately engineered trap the Federal Reserve has created for the American economy. Specifically, I confronted the difficulty of strangled liquidity through increasing debt costs vs continued money printing and inflation.

It’s a difficulty that Jerome Powell warned about in 2012, years before he became Fed Chairman; the results of making a stimulus dependent system after which abruptly cutting off the life support. As soon as he was installed as the top of the central bank he implemented the very policies he predicted would cause a crash.


The result? We just saw the start of the tip with the most recent banking crisis involving corporations like SVB, First Republic and Credit Suisse – It’s not only US funds, but banks all over the world that depend on liquidity injections from the Fed to remain afloat. The central bankers addicted the system to low-cost easy debt and now they’re taking away the drugs.

In other words, nobody can truthfully argue that the central banks are ignorant or unaware of the threat. They KNOW what’s about to occur and so they don’t care. But why does the establishment desire a crisis now as a substitute of 5 years ago, or five years in the long run?

Thankfully, much of the general public is becoming aware of the assorted programs to introduce CBDCs (Central Bank Digital Currencies), but what they could not understand is the style through which such massive economic changes normally occur. Generally speaking, in an effort to institute a brand new financial system the banks must take down the old system.

The last time we saw this occur was just after the Great Depression and WWII. The deflationary crash and the war conjured the right amount of worldwide chaos and before the dust settled western nations instituted the Bretton Woods agreement in 1944, making the dollar the defacto world reserve currency while locking down the value of gold.. Then they established the globalist International Monetary Fund (IMF) the identical 12 months and the United Nations in 1945. The world was centralized dramatically in a bit of over a decade.

I consider we’re fast approaching one other engineered singularity, a controlled demolition of existing systems to make way for a cashless society, a one world currency and global governance. I consider this since it’s all of the globalists can speak about nowadays; it’s not as in the event that they’re attempting to hide it anymore.

The BIS and IMF are actively fielding one-world digital currency mechanisms straight away; structures that might mix all national CBDCs under one umbrella. Within the meantime, globalist think-tanks just like the WEF (World Economic Forum) are ranting excessively concerning the coming era of an AI controlled economy and a “4th Industrial Revolution” through which you’ll “own nothing, don’t have any privacy” and shall be forced to adapt to a cashless socialist sharing system.

All they need is a scapegoat to finish their crisis formula. War seems to work well in distracting the masses from the true culprits behind any financial calamity, and diverse institutions are hard at work to persuade the general public that countries like Russia are accountable for ongoing stagflation problems. In fact, the stagflation crisis began well before the war in Ukraine and lots of Americans usually are not buying the spin.

China, a dedicated partner to the globalist project, has shown consistent fealty to the IMF and is a key player within the move towards a one-world currency system. Because they’re the most important importer/exporter on the planet and have considerable leverage over the US dollar, they’ve the flexibility to strike the ultimate blow against the dollar’s world reserve status. A heightened conflict with China could be an ideal cover for the dumping of the Greenback, making way for the IMF’s recent global currency, called the UMU (Universal Monetary Unit).

Nonetheless, foreign conflagrations is not going to be enough for the establishment to maintain the American public from scrutinizing the narrative. They need a domestic enemy, a daunting threat that lives right round the corner. That’s to say, they need to seek out a technique to blame conservatives and liberty activists for the upcoming crash that they caused.

Take note that the Biden Administration and the leftist media have been pumping out propaganda asserting that every one our fiscal problems including our national debt are someway rooted in conservative policies. That is nonsense.

At bottom, the vast majority of our economic threats might be traced directly back to the Federal Reserve in addition to large international banks, and these institutions enact policy REGARDLESS of the political party that’s in command of the federal government. But, if we’re going to speak concerning the political group that has most helped the central bankers set the calamity in motion, the Democrats win the prize.

It was Barack Obama and Joe Biden that doubled the US national debt from $10 trillion to $20 trillion within the span of 8 years. Trump didn’t help matters and didn’t institute spending cuts at the extent he must have, but the majority of his debt contributions occurred due to the covid response. There are quite a few issues to criticize Trump for, including the kinds of individuals he brought into his cabinet, but the present economic chaos just isn’t rooted in anything Trump did.

It was the Biden White House that pressed for covid lockdown policies to remain in place for years once they must have been ended inside months as soon because it became clear the covid virus was a non-threat to 99.8% of the population. Biden and the Democrats made it unattainable for the country to proceed functioning without trillions in covid helicopter money, and it was those fiat measures that finally broke the camel’s back. Prices on every part skyrocketed under Biden, not Trump.

The vast majority of our national debt problems were piled up throughout the reign of Democrats, and so they CONTINUE to demand trillions more in spending without conditions. This brings us to the debt ceiling.

Previously, the debt ceiling debate has been a predictable farce. Republicans demand cuts, they haggle with the Democrats who desire a blank check, nothing is ever really resolved and the debt ceiling gets raised yet again with no noticeable reductions in spending. The federal government keeps stealing from the American public at an exponential rate while also triggering more inflation.

It’s a Catch-22 for conservatives. Nobody within the mainstream criticizes the Democrats for wanting to spend more because most individuals don’t understand how inflation works. All of the Dems must do is comply with reasonable budget cuts, but they refuse. Once they don’t allow cuts, the Republicans are forced to either cave in, which makes them look weak, or, they’re forced to face their ground and be accused of reckless disregard for American debt obligations.

Democrats claim that ANY cuts to the budget will result in economic crisis. They don’t have any intention of negotiating to scale back US debt. They don’t must – All of the blame falls on conservatives regardless.

To be certain, there are multiple Neocon politicians that support the Democrats at every turn, but there are also some Republicans attempting to pull the country back from the brink. We should always give these people credit.  It’s easy to accuse all political participants of being a part of the “false left/right paradigm,”, and perhaps that was true ten years ago, but now I believe this mantra is being exploited to divide conservatives and liberty proponents from any alliances at the federal government level.

The leftist argument on the debt ceiling is basically this: “We must keep spending more to repair the issues created by spending an excessive amount of.”

It’s a circular con job. Pursuing budget cuts is portrayed as an act of terrorism by the company media. Saving taxpayer money is taken into account evil, and conservatives who entertain the notion are painted as insurrectionists. Why is not any one criticizing the Democrats and their all-or-nothing philosophy? In spite of everything, budget cuts might be made while ALSO paying off the national debt, right?

The tactic is sensible if you happen to have a look at it from a villain’s perspective. All of the Democrats must do just isn’t allow any cuts and proceed to demand more spending without conditions. Then, when the contingent of Republicans in Congress that truly care about fiscal responsibility refuses to back down, the White House, the media and the vast majority of leftists initiate a propaganda wave; a synthetic outcry suggesting that “radical” conservatives are destroying the economy.

If the conservatives give in, then the general public blames them for bowing to the “Uniparty.” In the event that they don’t give in, the establishment wraps up the stagflationary collapse and lays it right in our laps. They might attempt to force the difficulty of a debt ceiling impasse simply to hide the crash that is going on anyway.

Or, perhaps not. Perhaps this time is like all the opposite times and Republicans will back down yet again and the ceiling is raised by one other couple trillion dollars. The talking points I’m seeing within the media and on social media, though, suggest to me that something very strange is about to occur within the debt fight. If it goes down the way in which I believe, then it’ll be vitally vital to disrupt the narrative.

The economy is crashing for a variety of reasons and none of them have anything to do with the federal government attempting to spend less.

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