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The Fed Is Pulling The Plug On The Debt Bubble. ‘Cyber Attacks’, Followed By The Greatest Depression Are Coming

by on July 12, 2022
Janet Yellen

(Left: What a sweet little granny, our Janet Yellen.)

The Fed is raising rates aggressively. But they didn’t keep interest rates close to zero for 14 years for no reason: it was because rising rates will make the Mega Debt unpayable. They say they’re raising rates to ‘fight inflation’, but in reality, the Fed is pulling the trigger on the Debt Bubble.

By Anthony Migchels, for HenryMakow.com

The Fed first started tapering in 2018. This, as predicted, immediately led to a deflationary shock, and in September 2019, they ‘had to’ restart Quantitative Easing. To bail out both the banks, and the real economy, both facing a liquidity squeeze.

This came to a climax in the weekend of March 18th 2020, when they gave Wall Street $4 Trillion to at least temporarily fix their balance sheets, while they locked up 4 billion of us, to prevent a popular revolt over the bailout.

But they ‘went too far’ (these fools know exactly what they’re doing), creating massive asset bubbles, and rising prices in the real economy. And creating the problem, infuriating everybody faced with exploding prices (the reaction), and now implementing the solution: raising rates ‘to fight inflation’.

But there was a reason the Fed and other Central Banks have kept interest-rates close to zero since the 2008 crunch: debt became unpayable around 2008, and to prevent an immediate mass default, they kept the cost of borrowing low.

Since then, debt has only multiplied, and with it the need for eternally low interest rates.

We have already seen what happens when the Fed tightens, in September 2019: liquidity in the economy, both financial and real, will dry up, and defaults will result, and these will in turn crunch the commercial banks.

There is simply zero reason why it won’t happen again this time. The only question is when.

For now, the banks are loaded: they park about $2 Trillion with the Fed every night, they call this ‘reverse repo’, that’s their excess liquidity, that they have been building up in preparation of what is now coming.

$2 Trillion may sound like a lot. But really, once the dominos start falling, that’ll prove to be just chump change.

The Debt Bubble: a Neutron Bomb with financial means
Never have they done this before: blowing this gargantuan $300 Trillion debt bubble with this so called ‘fiat’ system.

Banking has always been about keeping money scarce through Gold Standards.

For fifty years they have allowed debt, and thus money, to grow with 8% per year. And the current system needs this, anything below 8% is deflationary, leading to recessions, busts, and worse. This can be easily gleaned from graphs of M1/M2 money growth and recessions over the last few decades.

But if you have $300 Trillion debt, 8% growth means that the World has to take on $24 Trillion in new debt this year alone. Just to keep the economy functioning normally. That’s about as ‘unsustainable’, to use a fav buzz word of theirs, as it gets. That’s about a third of World GDP. Next year it’ll be $26 Trillion. Compound interest/exponential growth in full force.

The commentators are oblivious. Everybody is talking about ‘inflation’, nobody is asking WHY the Fed printed all those trillions two years ago. Next they go make jokes about ‘what is a 1% interest rate hike going to do against 10% inflation?’.

Well, if you have a $90 Trillion debt, as the US is carrying around (State, corporate, households), a 1% rate hike means already almost a trillion per year is being taken out of the real economy per year. Sure, it takes a little time for debts to get rolled over and the new rates taking effect, but that doesn’t change the basic point.

We have already seen what carnage a 0,5% + 0,75% hike has wrought: crypto has already been all but deflated (incidentally: exactly as we predicted 18 months ago), with 72 of the 100 biggest alt coins losing more than 90%. Stocks are down almost 20%, the worst first six months on record. Real Estate is still keeping afloat, in the West anyway, not in China, but the Fed has already signaled they’ll be nuking that market too. They’re now saying they’ll raise rates again with 0,75% this month. That’ll be a total of 2% interest rate increases, meaning just having a money supply will now cost an extra 1,8 Trillion per year to the real economy. Best of luck with that.

Keep in mind there are no ‘accidents’ in banking. They printed too much to create the rising prices we have seen the last two years, just to have the excuse to raise rates now. Just as they started tapering in 2018, to have the excuse to start printing in 2019. They’ve been boosting and busting the West into servitude ever since Banking came back on the scene after the Usury Free Middle Ages. The Amsterdam Tulip bubble was back in 1637. You’d think people would wise up at some point.

What is coming now to the West, the deflation of this monster $300 Trillion debt in the next five years, will be the money changers’ greatest feat. It’s going to leave everything in ruins, and ultimately set the stage for World War 3.

So the problem is twofold: debt can no longer grow. The numbers are simply too astronomical at this stage. Something must be done, one way or the other.

But once debt/money stops growing, there will be deflation. And deflation will cause depression. And depression will cause defaults.

And once defaults start, they’ll start cascading. A chain reaction will commence in the financial system, and ultimately the whole debt will go up in smoke.

And with the debt, the commercial banks, who are all toast. But they have done their job. The whole debt is collateralized, and the collateral will all be consolidated in the States via the Central Banks.

Yes, the Bank wants Communism, and this is how they get it.

‘Cyber Attacks’ and the end of the current regime
Lagarde, Powell, Yellen, they have been maintaining ‘oh, no, another financial crisis is not going to happen this lifetime, we see no real problems.’ Seriously. They say this. Nobody cares.

But ‘Cyber Attacks’. That’s the ‘main concern’ for ‘the financial system’ (Here’s Lagarde, Powell, Yellen).

So ‘cyber attacks’ is how they plan to sell the coming deflationary collapse. Likely, such ‘attacks’ will be a huge ‘national security issue’. There will be much fanfare, and it’s hard to see how the current ‘leftist’/Great Reset lot is not going to get ousted. They have done everything possible to make themselves as hated as possible. Klaus Schwab and Bill Gates are not expected to ‘succeed’, they’re just there to scare everybody in the desired direction: the right wing of the Beast.

It’s not just me saying this: Uncle Vlad himself recently stated he expects a ‘change of elites’ in the West shortly, and that ‘rightist’ and ‘populist’ Governments will take over.

Once all this plays out, the Fed will also cease suppressing Gold, which will then start its ascent into the stratosphere.

People will eat it all up, and be ‘relieved’. But nothing will be solved.

Nothing can solve the $300 Trillion debt, $90 Trillion of which is held by the US, with the Government having another, pretty astounding, $160 Trillion of unfunded liabilities for the decades ahead.

Conclusion
Whites/Westerners were 33% of World population in 1900, and only 9% now. We have been in steep decline for over a century, and we’re now facing a terrifying coup de grace.

There’s no point mincing words. It’s going to be genocidal. Deagel always maintained their numbers were based on the collapse of the financial system. Jacques Attali, already 30 years ago, said the debt bubble, based on American housing, would last until around 2025.

It’s hard to believe it’s going to be as bad as Deagel said, but for certain it’s going to be much worse than the Russians dealt with after the Soviet collapse. And that was brutal.

So keep prepping. Don’t buy any dip, other than Silver. Don’t waste any time on what the fools ‘think’, but be sure to help them out where you can. And make peace with the Spirit, because that’s what this ultimately is all about.

Related:
The Next Phase In The Financial Crisis Is Coming
What The Great Reset Is About (Video)
The World Crisis = The Financial Crisis
The New Gold Standard IS The Great Reset!

Post Scriptum: some additional comments in an email:
“This is the problem: previously, they bailed out the banks, when the deflationary forces took over.

But they can’t anymore: they’ve printed all they can without creating a hyper inflation. This is the issue.

David Icke called it immediately in 2008, and when I heard him say it, I immediately sensed he was right, and it stayed with me ever since.

He said: “This is only the first round. The aim is to make Governments and Central Banks use up all their ammo.” With ‘ammo’, he meant QE and low interest rates. And indeed, they’re now at their end. QE leads to rising prices and bubbles, and interest rates can’t go below zero. Although they will try even that, especially in Europe.

What he said was downright prophetic.

Also: Do NOT be deceived by the coming transition to the ‘right’. What they’re doing is making the ‘right’ preside over the Greatest Depression. They will be the ones who get to kick pensioners out of their stone cold apartments. They will get all the blame. And rightly so, because it is the evil ‘right’ that always promoted Capitalism. These Cabbalists like their karmic justice. Remember: the Beast has two wings: ‘left’ and ‘right’.”





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25 Comments
  1. Clive permalink

    >What is coming now to the West, the deflation of this monster $300 Trillion debt in the next five years, will be the money changers’ greatest feat. It’s going to leave everything in ruins, and ultimately set the stage for World War 3.

    Deflation is not possible in this system. It’s not the 1930s when money was an asset. The US dollar is a liability of the Fed and generates its demand (“value”) from the payment of interest on debt. If they tried to deflate this ponzi it wouldn’t be a depression, in would be Dark Ages, not even the Fed could control it.

  2. blade permalink

    I am not as pessimistic as you regarding the demographic crisis.

    The vast majority of third worlders in europe and the usa have no chance of making it either.

    Once the debt fails the welfare state that props them up is going to collapse and so will they.

    Imagine the farmers that ship food over to the third world going bankrupt……africa is going to collapse and so will the population.

    I do believe it will be genocidal but it will be much worse in the third world countries and for third worlders in european countries.

    I think there will be a dramatic decline in population for sure but it is going to balance out the world drastically.

    • I live in a “third world” country Thailand. Of course it is not as “third world” as its neighbors Cambodia, Laos, Vietnam, Burma, etc. I also spend a lot of time in India every year. What I know is that a majority of people in these countries live on small farms and are basically self-sufficient. They grow enough rice, vegetables, and fruits, and keep a cow or two for milk and fertilizer. They do not require much “money” at all. They will be the best off when the debt bubble blows and the financial system seizes up. They are not dependent upon that system

  3. Carbon Currency End Game.

    The Value of property and its re-financing in a rebased unit of value will be adjusted to support the level of Debt in the economy, as 85% of all debt is based on residential values the overall prediction of the price collapse is I think wrong. I would like to discuss with you what I think is happening in terms of the UBERisation of the Housing Market.
    I am pretty sure I have figured out what’s happening in the broadest sense. With respect to censorship, medical interventions mandated by the corporate state, etc, Social points systems, and all of that the Die is definitely not cast. Everything is still to play for but will not be resolved in newspapers, or social media.
    Those in privileged positions ( In the Golden Billion) have far more influence than you seem to believe based on what you have written here. Engaging with the system as it was advertised according to branding circa 1990 pre-collapse of the Soviet union will suffice to make the necessary small adjustments to head off the crazies like Gates at the pass.
    From here on forward the place to argue the case is directly at the top table. Expecting talking heads to admit their mistakes in public is naive. The problems that exist in the world today are orders of magnitude less difficult than those faced in the first half of the 20th century. That’s my own experience the experience of others, perhaps including you will differ.

    The “Unvaccinated” Question (Revisited) EVENT 201 given its proper Context is a Monetary System Event.

    My ten cents

    • THE SIX WAYS ON SUNDAY, CARBON CURRENCY END GAME 16 TO 1 ON, WHAT ARE THE ODDS OF THAT?. R &R DISCUSS

      If one observes the long game the dominant Narrative of the past 30 years is Climate Change and CO2 emission being the only thing anyone needs to focus upon. The Carbon footprint narrative is by a long chalk well ahead of the curve even with the relatively short but seemingly endless Pandemic and Vaccine Narratives of the Past two years.
      Naming names ,Larry Fink of Blackstone and Blackstones Going Direct is considerably more powerful a control lever on what happens next than the efforts of Bill Gates and Dr. Fauci to enrich Big Pharma and themselves, Gates also has a bigger card in the game and that is Digital ID and its relationship to both Near earth Satellite networks and the 5G networks, which coincidentally really were rolling out at the Same Time as the Wuhan Event, also in coincidentally Wuhan.
      The Vaccines and Vaccine Injury is very much closely related to the Adjuvants and not necessarily the Pathogen dose delivered in the solution of the Adjuvant. It is the Adjuvant rather than the disease which is of interest to the 5G / ID aspects of what the past two years have really been all about.
      The Repo Spike in Newyork on September the 19th was the starting pistol, of course, the dress rehearsal was Event 201, The Objective was almost certainly to gain widespread acceptance of Digital ID’s on SmartPhone devices and possibly by stealth through Nanotechnology, within the Adjuvant solutions in the MRNA vaccines( Experimental Gene Therapies?).
      So what about Climate Change, CO2, and all that, no its not the Graphine found in some adjuvant samples but the Rationing of Carbon through a Carbon-based currency which is why the Climate Change Agenda particularly the CO2 control knob is so important.
      The ratio of Good Energy ( renewables) for which Carbon Credits will be created and Bad Energy of “Fossil Fuels which represent Carbon debits, is 16:1. There are various combinations which could see the ratio vary but essentially as with The Gold Standard a Carbon Credit Renewables Standard has the same ratio as the Historical Bi-Metallic ratio known to numasticist’s the world over. A deflationary centralised banking regime will be able to impose Austerity to an authoritarian extent extending to a population control mechanism. This is a far more likely delivery mechanism for Rapid population reduction policies than any Vaccination regime, Famine equally, is a far more effective and efficient means of population reduction than certainly War or any other form of genocide, also for the Authoritarian regime deploying it, it is also complete with a shield of plausible deniability.
      Just my 10 cents per KW/h or my 100 euros/tonne of CO2

      Just Saying.

  4. hello permalink

    Anyone noticing a bunch of cryptic boasting on television, comics, media, etc., about some kind of “great divide” or “seperation” come 2025 when the “lights go out.” I see it all the time. It’s just like when the supremacist Likudniks were boasting about 9/11 before it happened. Mark my words, something will go down. The power grid, nukes, civil war, world war, who really knows, but they want us all dead and the infrastructure intact, so possibly a real ethnic bioweapon? Who really knows.

  5. Reblogged this on Calculus of Decay .

  6. CK_ permalink

    Is the debt crisis real or just an excuse to tank the global economy? Years ago, you’d written an article that the debt borrowed from one hand is owed to the other hand.

    https://henrymakow.com/the-manufactured-debt-crisis.html?_ga=2.68031189.555268049.1657845545-1442929782.1657845545

    • The debt is real as long as we think we have to pay, or better, the Governments think we have to pay. They collect for the Bank.
      But indeed, it should be mostly written off, but that would destroy the deposits of the rich.

  7. feddy is a godzilla criminal enterprise.. as is their controller.. CBD central bank dynasty

  8. bullsmoke you know nothing.. gvt debt is criminal

  9. kakus permalink

    Clint Richardson,the end of jokes?

    http://www.strawmanstory.info/

  10. bhaktadasa permalink

    Good article. The debt implosion is what it is all about.

  11. Spot on..Good article, I believe the Religious Jews will push the implementation of the Noahide laws in the US .
    Christ is the only way out of this mess ..

    • hello permalink

      DeSantis, Italalian crypto-Jew who pushes the Noahide Laws, hung out with Israeli human trafficker Joel Greenberg and made ‘antisemitism’ (nonsensical misnormer) illegal in Florida and Trump, likewise, made quite clear that he wants to execute all ‘antisemites in the US. 2024 is coming shorty, March of 2025 will be the great divide, mark my words. All the billionaires mention some “great seperation” come 2025. Civil war?

      It appears the left, latching on to the Cheney rhetoric, in fact, using Cheney to push the narrative that Trump is Hitler incarnated, even though Trump is nothing like Hitler, hired by Bush apointee Stone to destroy the Reform party of which the leader of the Reform party then extoled Trump (Kabuki theater), we can see the narrative being played. The Left, the media, wants to nudge us rightward, into the arms of Likudnik supremacy.

      They will take the blame for what is coming and it will be the year of culling.

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  4. The “Unvaccinated” Question (Revisited) EVENT 201 given its proper Context is a Monetary System Event. – Not The Grub Street Journal
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