By: David Gignac
I believe there will be no rate hike, it is not 1980 and in 2021-22 any increase in interest rates will lock up the economy as solidly as an engine that has been submerged in salt water for 2 1/2 years. It was hesitantly tried in 2013 and the markets immediately retreated to their safe space in what was called ‘the taper tantrum’ and it hasn’t been tried since.
The only lubrication for the economy is the pumping of money into a system that is bloated with the very grease that allows it to move. The Biden economy has destroyed any hope of normalcy and the very best we can wish for is stagflation until we move to some new system besides fiat.
Your full faith and credit have turned to hopium and if you try another credit system instead of sound money backed by gold you will get anarchy.
Hey Louis ~ the peasants are at the gate and would like a word with you.
Charles Hugh Smith, a futurist thinker is saying in 2022 that the unrest and rioting are naturally occurring and stemming ultimately from a lack of energy, depletion of oil production. He talks about bitcoin, another monetary system created from imagination, as a way to reset the economic paradigm with intrinsic fairness.
I am going to pass on commenting on Bitcoin at this point; although I am a proponent of some sort of ‘stable coin’ tied to precious metals.
The private western central bank is floating a solution in another debt instrument, the Fed Coin.
But just like the Federal Reserve Note, it is imaginary ‘money’ not backed by anything. It can be conjured out of thin air with the added ‘benefit’ that your purchases can be tracked, taxed, and can be withdrawn from your bank account by the government at the slightest provocation such as, buying a steak on the black market, and you could receive a frozen bank account; drive in a restricted part of town, fuel allowance cut in half. There is no limit to what they can or will do.
We need sound money. The federal reserve note ain’t that. All that’s left to see is whether we’ll voluntarily adopt sound money, or if we’ll get there after some disaster.
The thing is, sound money will take care of itself when paper money fails, people will burn Federal Reserve Notes for heat and start to use alternative currency and barter if not acted on by outside forces.
