Years ago I said we were headed towards the worst financial collapse in 500 years. I might have underestimated how bad things will get within the next two to three years.
Summing up my previous thoughts.
Economists can predict how bad a Depression will be based upon the amount of outstanding Unpayable Debts that are due. These debts by definition will never be paid and therefore must be cancelled.
There are 3 ways to cancel unpayable debts en masse. One would be making debts smaller through hyperinflation as Germany did in 1923. Another would be to walk away from debts by discharging them in bankruptcy court and in foreclosures as America did in 1933. Because Western Central Banks like the Federal Reserve system do not allow us to have money unless we have a debt, our money supply was reduced by 31% from 1929 to 1933. If you discharge a debt, the corresponding money in a checking account evaporates. And that decrease in money caused the Depression which starved at least 3 million Americans to death. The Third way to cancel Unpayable Debts en masse is the only painless one. It was called the Jubilee by the Bible Writers. It was copied from the Babylonians who learned it from the Sumerian kings who cancelled debts starting some 4,400 years ago. There is no evidence that either Israel or Judah practiced the Jubilee.
I have also warned that since the bond and stock markets are headed to a decline that overseas investors will likely dump their US stocks and bonds and then use those dollars to buy commodities. Soaring commodity prices will cause hyperinflation. A 25% annual inflation will cut your purchasing power in half in 3 years so investors will want to get out of dollars. I have predicted hyperinflation and Nationwide Food Riots in the US before election day in November of 2024. As I said before, I define a hyperinflation for an international reserve currency as starting at 25%. I would expect a 60% decrease in wages after the Dollar Dies but it could get worse.
And now a new and disturbing element.
Sergey Glazyev is a member of the Russian Academy of Sciences, and a former adviser to the Kremlin from 2012 to 2019, for the past three years he has been Minister in Charge of Integration and Macroeconomics of the Eurasian Economic Union (EAEU).
He was interviewed by Pepe Escobar.
Glazyev: Transition to the new world economic order will likely be accompanied by systematic refusal to honor obligations in dollars, euro, pound, and yen. In this respect, it will be no different from the example set by the countries issuing these currencies who thought it appropriate to steal foreign exchange reserves of Iraq, Iran, Venezuela, Afghanistan, and Russia to the tune of trillions of dollars. Since the US, Britain, EU, and Japan refused to honor their obligations and confiscated the wealth of other nations which was held in their currencies, why should other countries be obliged to pay them back and to service their loans?
In any case, participation in the new economic system will not be constrained by the obligations in the old one. Countries of the Global South can be full participants of the new system regardless of their accumulated debts in dollars, euro, pound, and yen. Even if they were to default on their obligations in those currencies, this would have no bearing on their credit rating in the new financial system. Nationalization of extraction industry, likewise, would not cause a disruption. Further, should these countries reserve a portion of their natural resources for the backing of the new economic system, their respective weight in the currency basket of the new monetary unit would increase accordingly, providing that nation with larger currency reserves and credit capacity. In addition, bilateral swap lines with trading partner countries would provide them with adequate financing for co-investments and trade financing.
Escobar: In one of your latest essays, The Economics of the Russian Victory, you call for “an accelerated formation of a new technological paradigm and the formation of institutions of a new world economic order.” Among the recommendations, you specifically propose the creation of “a payment and settlement system in the national currencies of the EAEU member states” and the development and implementation of “an independent system of international settlements in the EAEU, SCO and BRICS, which could eliminate critical dependence of the US-controlled SWIFT system.” Is it possible to foresee a concerted joint drive by the EAEU and China to “sell” the new system to SCO members, other BRICS members, ASEAN members and nations in West Asia, Africa and Latin America? And will that result in a bipolar geo-economy – the West versus The Rest?
Glazyev: Indeed, this is the direction where we are headed… You correctly highlight potentially central roles of China and Russia in the genesis of the new world economic order.
He mentioned the BRICS nations which includes Brazil, Russia, India, China and South Africa. They have a combined nominal GDP of US$19.6 trillion, about 23.2% of the world’s. But more importantly they have trading partners near bankruptcy based on debts denominated in dollars, euros, pounds and yen. For example, Sri Lanka just suspended payment on its debt of $50 billion. Russia and China could in the near future offer them a digital currency backed up by a basket of commodities. Any nation wanting to cancel their debts could do so. And more importantly Russia can offer them oil and food. The US will soon have no food to export.
The BRICS nations could invite dozens or more nations to their annual summit and offer them instantaneous debt cancellation and repercussion free nationalization of foreign assets. The BRICS ambassadors could call on the heads of state and their finance ministers for the remaining holdouts after say 30 to 40 nations announce at the Summit that they will no longer pay debts.
At that point, the worldwide panic will have been created shutting down all stock and bond markets. This will trigger a quadrillion dollars in Collateralized Debt Obligations instantly destroying world economies based outside the BRICS umbrella. BRICS nations are establishing their own cables across thee seas to avoid snooping by NATO. Of course the leaders of the BRICS nations, Russia and China, could call for an emergency summit at any time.
The above scenario is very likely to happen as Russian and Asian economists have dedicated their lives to the goal of undoing the Dollar Debt Empire. And the Powers That Ought Not To Be have dedicated themselves to maximizing control over their citizens rather than improving their economies. To that end that have created food and oil shortages and released bioweapons to force people to accept authoritarian state powers over them. Their goal is to starve people into accepting food rationing including both digital ration cards and passports.
There is a physical element other than the above economic ones pushing us to a Global economic collapse. In 2020 we entered a Grand Solar Minimum like the Maunder Minimum of 1645 to 1715. Edward Maunder noticed the decline in the number of sunspots was correlated with cooler and harsher weather. Economists noticed that the price of wheat in the UK spiked 400% higher in certain years.
Modern physicists have also noticed that the decline in the Sun’s magnetism allows many times more cosmic rays (nuclear particles from distant stars) to strike the earth. This corresponds to a greater number of more intense earthquakes and volcanoes. In 1709 there was a “Big Freeze in Europe. It was caused by 3 volcanoes erupting and sending ash into the atmosphere. The ash blocked sunlight. In France the top meter (nearly 40 inches) of their soil froze which sent food prices soaring 600% higher. A similar event today would kill billions of people. And earthquakes in California, Japan or in any financial center could cause an economic collapse that could force BRICS or others to take immediate and desperate actions. We entered a Grand Solar Minimum in 2020. Read more here: https://vidrebel.wordpress.com/2019/12/30/2020s-surviving-the-cold-the-quakes-and-volcanoes/
The above meme mentions the tens of trillion stolen from the Department of Defense by Bankers and DC Swamp Creatures. The US has bombed countries who refused to sell oil in dollars, Iraq and Libya. Russia has shut down Ukrainian air power using their S-500 system vs the Ukraine’s older S-300. If they or the Chinese were to sell the S-400 to regional powers like the Iranians that would end Dollar hegemony very quickly.
Wall Street steals ten trillion dollars here, there, everywhere. Pretty soon you are talking about the end of human freedom, the end of humanity, the end of everything and everyone we cared for.$10 Trillion Here, 10 Trillion There:https://vidrebel.wordpress.com/2020/06/23/10-trillion-here-10-trillion-there/
The next meme refers to 911.
I wrote about 911. I believe Israel did it.https://vidrebel.wordpress.com/2021/09/10/911-truths/
I mentioned starvation as a means to force us into submission.The War Against You: The Final Stage:https://vidrebel.wordpress.com/2022/04/25/the-war-against-you-the-final-stage/
I also mentioned bioweapons. Bird flu is a bioweapon and so is covid and the mRNA experimental injections mistakenly called vaccines. Ashkenazi Jews are nearly immune to covid. Iranians and Italians are the most susceptible according to Science Direct. Read about covid here:https://vidrebel.wordpress.com/2021/09/07/covid-truths/
Pepe Escobar’s interview with the Russian economist can be found here:https://thecradle.co/Article/interviews/9135