SC259-2

https://alt-market.us/the-engineered-stagflationary-collapse-has-arrived-heres-what-happens-next/

The Engineered Stagflationary Collapse Has Arrived – Here’s What Happens Next

In my 16 years as an alternative economist and political writer I have spent around half that time warning that the ultimate outcome of the Federal Reserve’s stimulus model would be a stagflationary collapse. Not a deflationary collapse, or an inflationary collapse, but a stagflationary collapse. The reasons for this were very specific – Mass debt creation was being countered with MORE debt creation while many central banks have been simultaneously devaluing their currencies through QE measures. On top of that, the US is in the unique position of relying on the world reserve status of the dollar and that status is diminishing.

It was only a matter of time before the to forces of deflation and inflation met in the middle to create stagflation. In my article ‘Infrastructure Bills Do Not Lead To Recovery, Only Increased Federal Control’, published in April of 2021, I stated that:

“Production of fiat money is not the same as real production within the economy… Trillions of dollars in public works programs might create more jobs, but it will also inflate prices as the dollar goes into decline. So, unless wages are adjusted constantly according to price increases, people will have jobs, but still won’t be able to afford a comfortable standard of living. This leads to stagflation, in which prices continue to rise while wages and consumption stagnate.

Another Catch-22 to consider is that if inflation becomes rampant, the Federal Reserve may be compelled (or claim they are compelled) to raise interest rates significantly in a short span of time. This means an immediate slowdown in the flow of overnight loans to major banks, an immediate slowdown in loans to large and small businesses, an immediate crash in credit options for consumers, and an overall crash in consumer spending. You might recognize this as the recipe that created the 1981-1982 recession, the third-worst in the 20th century.

In other words, the choice is stagflation, or deflationary depression.”

It’s clear today what the Fed has chosen. It’s important to remember that throughout 2020 and 2021 the mainstream media, the central bank and most government officials were telling the public that inflation was “transitory.” Suddenly in the past few months this has changed and now even Janet Yellen has admitted that she was “wrong” on inflation. This is a misdirection, however, because the Fed knows exactly what it is doing and always has. Yellen denied reality, but she knew she was denying reality. In other words, she was not mistaken about the economic crisis, she lied about it.

As I outlined last December in my article ‘The Fed’s Catch-22 Taper Is A Weapon, Not A Policy Error’:

‘First and foremost, no, the Fed is not motivated by profits, at least not primarily. The Fed is able to print wealth at will, they don’t care about profits – They care about power and centralization. Would they sacrifice “the golden goose” of US markets in order to gain more power and full bore globalism? Absolutely. Would central bankers sacrifice the dollar and blow up the Fed as an institution in order to force a global currency system on the masses? There is no doubt; they’ve put the US economy at risk in the past in order to get more centralization.’

The Fed has known for years that the current path would lead to inflation and then market destruction, and here’s the proof – Fed Chairman Jerome Powell actually warned about this exact outcome in October of 2012:

“I have concerns about more purchases. As others have pointed out, the dealer community is now assuming close to a $4 trillion balance sheet and purchases through the first quarter of 2014. I admit that is a much stronger reaction than I anticipated, and I am uncomfortable with it for a couple of reasons.First, the question, why stop at $4 trillion? The market in most cases will cheer us for doing more. It will never be enough for the market. Our models will always tell us that we are helping the economy, and I will probably always feel that those benefits are overestimated. And we will be able to tell ourselves that market function is not impaired and that inflation expectations are under control. What is to stop us, other than much faster economic growth, which it is probably not in our power to produce?

When it is time for us to sell, or even to stop buying, the response could be quite strong; there is every reason to expect a strong response. So there are a couple of ways to look at it. It is about $1.2 trillion in sales; you take 60 months, you get about $20 billion a month. That is a very doable thing, it sounds like, in a market where the norm by the middle of next year is $80 billion a month. Another way to look at it, though, is that it’s not so much the sale, the duration; it’s also unloading our short volatility position.”

As we all now know, the Fed waited until their balance sheet was far larger and until the economy was MUCH weaker than it was in 2012 to unleash tightening measures. They KNEW the whole time exactly what was going to happen.

It is no coincidence that the culmination of the Fed’s stimulus bonanza has arrived right after the incredible damage done to the economy and the global supply chain by the covid lockdowns. It is no coincidence that these two events work together to create the perfect stagflationary scenario. And, it’s no coincidence that the only people who benefit from these conditions are proponents of the “Great Reset” ideology at the World Economic Forum and other globalist institutions. This is an engineered collapse that has been in the works for many years.

The goal is to “reset” the world, to erase what’s left of free market systems, and to establish what they call the “Shared Economy” system. This system is one in which the people who survive the crash will be made utterly dependent on government through Universal Basic Income and one that will restrict all resource usage in the name of “carbon reduction.” According to the WEF, you will own nothing and you will like it.

The collapse is engineered to create crisis conditions so frightening that they expect the majority of the public to submit to a collectivist hive mind lifestyle with greatly reduced standards. This would be accomplished through UBI, digital currency models, carbon taxation, population reduction, rationing of all commodities and a social credit system. The goal, in other words, is complete control through technocratic authoritarianism.

All of this is dependent on the exploitation of crisis events to create fear in the population. Now that economic destabilization has arrived, what happens next? Here are my predictions…

The Fed Will Hike Interest Rates More Than Expected, But Not Enough To Stop Inflation

Today, we are witnessing the poisonous fruits of a decade-plus of massive fiat money creation and we are now at the stage where the Fed will reveal its true plan. Hiking interest rates fast, or hiking them slow. Fast hikes will mean an almost immediate crash in markets (beyond what we have already seen), slow hikes will mean a drawn out process of price inflation and general uncertainty.

I believe the Fed will hike more than expected, but not enough to actually slow inflation in necessities. There will be an overall decline in luxury items, recreation commerce and non-essentials, but most other goods will continue to climb in cost. It is to the advantage of globalists to keep the inflation train running for another year or longer.

In the end, though, the central bank WILL declare that the pace of interest rates is not enough to stop inflation and they will revert to a Volcker-like strategy, pushing rates up so high that the economy simply stops functioning altogether.

Markets Will Crash And Unemployment Will Abruptly Spike

Stock markets are utterly dependent on Fed stimulus and easy money through low interest rate loans – This is a fact. Without low rates and QE, corporations cannot engage in stock buybacks. Meaning, the tools for artificially inflating equities are disappearing. We are already seeing the effects of this now with markets dropping 20% or more.

The Fed will not capitulate. They will continue to hike regardless of the market reaction.

As far as jobs are concerned, Biden and many mainstream economists constantly applaud the low unemployment rate as proof that the American economy is “strong,” but this is an illusion. Covid stimulus measures temporarily created a dynamic in which businesses needed increased staff to deal with excess retail spending. Now, the covid checks have stopped and Americans have maxed out their credit cards. There is nothing left to keep the system afloat.

Businesses will start making large job cuts throughout the last half of 2022.

Price Controls

I have no doubt that Joe Biden and Democrats will seek to enforce price controls on many goods as inflation continues, and there will be a handful of Republicans that will support the tactic. Price controls actually lead to a reduction in supply because they remove all profits and thus all incentive for manufacturers to keep producing goods. What usually happens at that point is government steps in to nationalize manufacturing, but this will be substandard production and at a much lower yield.

In the end, supplies are reduced even further and prices go even higher on the black market because no one can get their hands on most goods anyway.

Rationing

Yes, rationing at the manufacturing and distribution level is going to happen, so be sure to buy what you need now before it does. Rationing occurs in the wake of price controls or supply chain disruptions, and usually this coincides with a government propaganda campaign against “hoarders.”

They will hold up a few exaggerated examples of people who buy truckloads of merchandise to scalp prices on the black market. Then, not long after, they will accuse preppers and anyone who bought goods BEFORE the crisis of “hoarding” simply because they planned ahead.

Rationing is not only about controlling the supply of necessities and thus controlling the population by proxy; it is also about creating an atmosphere of blame and suspicion within the public and getting them to snitch on or attack anyone that is prepared. Prepared people represent a threat to the establishment, so expect to be demonized in the media and organize with other prepared people to protect yourself.

Be Ready, It Only Gets Worse From Here On

It might sound like I am predicting success of the Great Reset program, but I actually believe the globalists will fail in the end. That’s not going to stop them from making the attempt. Also, the above scenarios are only predictions for the near term (within the next couple of years). There will be many other problems that stem from these situations.

Naturally, food riots and other mob actions will become more commonplace, perhaps not this year, but by the end of 2023 they will definitely be a problem. This will coincide with the return of political unrest in the US as leftist factions, encouraged by globalist foundations, demand more government intervention in poverty. At the same time, conservatives will demand less government interference and less tyranny.

At bottom, the people who are prepared might be called a lot of mean names, but as long as we organize and work together, we will survive. Many unprepared people will NOT survive. Understand that the economic conditions ahead of us are historically destructive; there is no way that serious consequences can be avoided for a large part of the population, if only because they refuse to listen and to take proper steps to protect themselves.

The denial is over. The crash is here. Time to take action if you have not done so already.

....

http://endoftheamericandream.com/if-the-streets-of-america-are-this-chaotic-now-what-will-they-be-like-when-things-really-start-hitting-the-fan/

If The Streets Of America Are This Chaotic Now, What Will They Be Like When Things Really Start Hitting The Fan?

If you are not alarmed by what is happening to our largest cities, you should check to see if you still have a pulse.  Once upon a time, the beautiful new cities that our forefathers constructed were the envy of the entire planet, but now many of them have degenerated into crime-infested hellholes that are absolutely teeming with violent predators.  Shoplifting has essentially become a national pastime, open air drug markets operate freely right under the noses of indifferent authorities, and addicts pull down their pants and take a dump whenever and wherever they feel like doing so.  Thanks to record levels of illegal immigration, gang membership is absolutely exploding, and human trafficking has reached truly frightening levels.  Of course our steadily thinning police forces are overwhelmed at this point.  In fact, police in Seattle are stretched so thin that they often are not able “to take reports from rape victims”.  And if you are the victim of a non-violent crime in Seattle, good luck ever getting a police officer to pay attention to your case.  From coast to coast, communities are descending into a state of utter lawlessness.  So if things are this bad already, what will conditions be like when things really start hitting the fan?

Continuing a trend that we have seen for the last couple of years, crime rates all over the nation just keep going higher and higher.

For example, auto theft, grand larceny and transit crime are all up by more than 50 percent in New York City so far this year…

Data released by the New York City Police Department showed Grand Larceny Auto increased by 51.1% with 5,420 incidents as of June 5 compared to just 3,587 incidents by the same time in 2021.

That category had one of the largest upticks during the most recent crime statistic report covering May 30 to June 5. Grand larceny incidents spiked by 50.1% from 20,659 incidents reported to NYPD as of June 5, compared to the 13,713 reported during the same period last year.

Meanwhile, overall transit crime surged by 53.6% so far this year.

I thought that the new mayor was elected to end the crime wave.

Instead, it appears that it has been supersized.

One way to hide the rapid rise in crime is to decriminalize things that used to be major offenses.

In Portland, voters decided to decriminalize hard drugs, but that just turned the city into an “open air drug market”…

The streets of Portland resemble an ‘open air drug market’ after state officials’ scheme to decriminalize hard drugs led to a surge in overdose deaths, critics claim.

Law enforcement agents say that the streets of Portland are full of homeless addicts openly buying and selling drugs and that signs of drug addiction are actually increasing statewide, Fox News reported.

Photos show the desperate situation in the liberal Pacific Northwest city, where people can be seen shooting up drugs or passed out in broad daylight.

At one time, Portland was one of the most magnificent cities in the entire world.

Now it is a horror show.

On top of all the ordinary crime that is going on, now we are witnessing a very alarming rise in politically-motivated violence.

The Supreme Court decision that will overturn Roe v. Wade is expected to be released this month, and a group known as “Jane’s Revenge” has announced that it is “open season” on those with pro-life views…

The pro-abortion group Jane’s Revenge is declaring it “open season” on pro-life groups and crisis pregnancy centers.

The group has a history of damaging property during their protests, and they took credit for the vandalization of a pregnancy resource center in Des Moines, Iowa earlier this month. In a message posted to social media, the group said they broke windows and left graffiti political messages all over the clinic. “It was easy and fun,” the message read.

Sadly, even though the official Supreme Court decision has not even been released yet, there has already been quite a bit of violence.

In fact, it is being reported that there have been more than three dozen attacks on pro-life groups, churches and crisis pregnancy centers in recent weeks…

An armed would-be assassin’s alleged attempt on the life of Supreme Court Justice Brett Kavanaugh last week is part of a wave of violence, arson, vandalism, and intimidation targeting pro-life groups and government officials since the leak last month of a draft Supreme Court opinion that would overturn Roe v. Wade.

There have been more than three dozen such incidents directed at crisis pregnancy centers and churches in at least 20 states and Washington, D.C., according to a tally maintained by LifeNews.com, an anti-abortion site.

The thin veneer of civilization that we all take for granted on a daily basis is rapidly dissipating, and our streets are becoming more uncivilized with each passing day.

If this is happening while economic conditions are still relatively stable, what will happen once things start getting really crazy out there?

In some parts of the world, the food crisis has already reached critical levels.  For example, the government of Sri Lanka has actually shortened the work week so that workers will have more time to grow their own food…

Sri Lanka’s federal government on Monday approved a proposal that would shorten the work week of most public sector staff to four days so that workers will have time to farm their own crops, Reuters reported Tuesday, noting the measure aims to combat Sri Lanka’s worsening food shortages caused by a recent economic crisis.

“Sri Lanka’s Cabinet late on Monday approved a proposal for public sector workers to be given leave every Friday for the next three months, partly because the fuel shortage made commuting difficult and also to encourage them to farm,” Reuters reported on June 14.

Over in Africa, the United Nations has stopped feeding approximately 1.7 million citizens of South Sudan because they simply do not have enough funding to feed the rapidly growing throngs of desperately hungry people…

The World Food Programme has been forced to stop providing food aid to around 1.7 million people in South Sudan, because of a lack of funding. The UN-run organization will still reach 4.5 million people, but many will miss out on vital resources.

According to BBC News, over half the population of South Sudan is currently facing hunger due to floods, localized drought, continuing conflict, and rising food prices. Marwa Awad is from the World Food Programme and is in the northern town of Bentiu in South Sudan, where she has been talking to people about the effects the cuts to aid are having.

All of the experts are telling us that the global food crisis is going to get a lot worse as the months roll along.

If the UN has already reached the limit of what they are able to do, who is going to help the millions upon millions of hungry people that will soon need help in order to survive?

Here in the U.S., food production has been affected by a bizarre series of disasters, and we are being warned that much less will be produced this year than originally anticipated.  I think that one expert summed up the current situation very well when he warned that “we are teetering on the edge right now”…

Pennsylvania farmers are being “crushed” by the record cost of diesel – so much so, that questions about a food crisis are starting to loom, the Morning Call reported.

One farmer in Lehigh County is quoted as saying: “I’ve got a tractor hooked up to my corn planter out here, no diesel fuel, and I can’t afford to get any.”

That farmer was airing his gripes to Kyle Kotzmoyer, a legislative affairs specialist for the Pennsylvania Farm Bureau. Kotzmoyer then turned around and testified to state lawmakers: “We have reached that point to where it is very close to being a sinking ship. We are teetering on the edge right now.”

If we eventually get to a point where food prices spiral completely out of control and there are widespread shortages, do you think that those living in our core urban areas will respond with grace and patience?

Of course not.

Instead, people will go absolutely nuts.

We got a small preview of what is to come during the Arab Spring of 2011.  There were serious food shortages around the world that year, and that resulted in tremendous civil unrest.

Here in the United States, most people do not have large amounts of food stored up, and that is especially true in our largest cities.

So we better hope that the rapidly growing global food crisis does not affect us too severely, because the truth is that we are definitely not equipped to handle such a scenario.