Prepare For The Collapse

For all the talk about changes that may happen in the USA economy, the reality is that the Federal Reserve is the one that controls the economy and it needs to help Trump with interest rates near zero  – because if they don’t, the Trump administration may be unable to pay the massive debt of over $20 trillion government debt, $67 trillion of total USA debt, and over $106 trillion in unfunded liabilities. Of course, that will bring the economy crashing down.

The global economy and financial system of the entire world is on the brink of collapse. The conditions are ripe for collapse and most of the ideas that Trump has put forward will not do anything to prevent the cataclysmic about to be unleashed. They may actually be worst.

The Federal Reserve is holding a $4.5 trillion dollars’ debt that they have no clue what to do with. That also makes impossible to come to the rescue with trillion-dollar assurances that they will make everything nice with more quantitative easing.

As much as the Zionist like to call themselves the geniuses of the financial world, the fact is they have created a corrupt system that is nothing but a Ponzi scheme. The whole economy doesn’t rest on a solid foundation of high productivity, low debt and robust savings and investment. Those are the factors that produce sound economic growth and stable economies. Instead, we have an idiotic rigged unsustainable system built on money printing and debt creation. It’s a snake pit that makes you think wealth is debt creation and no matter how much you print eventually the whole system will collapse.

The monetary fake gods have run out of tools to deal with the next crisis. QE, ZIRP and NIRP have all failed. We’re worse off than ever before and no amount of printing can save the economy. In reality, the only possible way to save the world economy will be to have a voluntary and carefully organized bankruptcy of the Federal Reserve. But that will mean forgiving debt of the rest of the world and a freeze of currencies for at least ten years so no valuations and devaluations happen until everything is organized.

Regardless of how you try to come up with a solution the outcome is the same. The dollar is broke and we need to find a solution sooner than later.  There is very little than anyone can do to preserve a fundamentally flawed financial foundation.

The biggest problem facing the Federal Reserve is the end of the dollar. How can they maintain zero interest rate policies if as it is the world no longer wants to buy any U.S securities? The faith on the dollar is gone and while the Euro may be collapsing soon that does not mean that people will actually buy dollars. Everybody knows the debt is even greater. Especially now that major countries such as Russia and China have ways to avoid the dollar as the reserve currency.

Shortage of Gold

Nobody has a clue how much gold the United States has in their vaults. While Russia, China and other nations have been buying gold. The United States no longer holds much gold at all. In fact, so little that was unable to return the gold owned by Germany when they requested their gold back. If all the other nations were to request their gold supposedly being held in USA vaults may trigger a dirty secret to be exposed. The gold is gone.

Fewer Are Buying United States Debt

If that was to happen no nation will be willing to but any United States debt (Treasuries).  That means that the FED will have to come up with some new creative way to dump the debt on somebody else. They may have experimented the solutions in Ecuador. They have forced retirees to take the debt while they grabbed the citizens’ money, an IRA-style investment only in United States Treasuries (debt). 

Unsustainable Debt

The current United States National Debt is approaching $20 Trillion. The meaning of that is every citizen of the United States has a debt of $166,000. In government debt alone. But easily is three times that debt if you add the other debts sustained by the United States. We are broke, period. Worse than you think because that does not begin to cover debt obligations for unfunded liabilities (Social Security & Medicare), which is $106 Trillion. Unsuspecting Americans do not even realize that Trump is actually an idiot proposing the deportation of illegal aliens. In fact, the United States needs all those people to become taxpayers as quickly as possible to share the burden of rescuing the country. (the future does not look very bright. This is a much better plan http://sostohumanity.blogspot.com/2016/12/the-vaca-plan-for-immigration.html

The Collapse is Coming

The majority of American lives in a bubble that makes them believe that they are better off than the rest of the world. A relatively few people realize how bad the economy is and if in 2008 the Federal Reserve was able to dupe the world into socializing the United States debt and dump the deficit and debt on the rest of the world. It is impossible to do the same again. The collapse that is coming. The tragedy is that only those that recognize what is going on will be able to save themselves.

 In all of world history, no nation has accumulated such massive debt as the United States has. The trillions upon trillions of debts are beyond comprehension. The day of reckoning is upon us and we will all suffer the consequences. The biggest problem is that no one wants to confront and will do anything to postpone the due date. Yet it only becomes worse.

The rest of the world has become aware and they have been preparing in so many ways and in the United States, we keep ignoring the facts as if we are omnipotent and somehow, we will find a way to avoid it.  But in fact, Trump is not a smart man at all as some people think. In fact, he wants to force corporations to bring back as soon as possible all their trillions of dollars out there in the rest of the world, the inevitable result is currency inflation. This may actually trigger a chain reaction that will not be stopped. The end result will be the collapse of the dollar.

 Most Americans refuse to believe and cannot imagine or comprehend that the dollar could possibly collapse. The sad reality is that we have done nothing to prevent an economic collapse. 

Trump is Making Things Worse

The combination of events happening in the world right now is making the economic situation deteriorate faster than ever before. Most people will be caught off guard due in great part to the massive mainstream cover-up and propaganda.  However, you can see the warning signs everywhere. I have analyzed carefully the Trump government and if I am correct it may be worse than you can imagine.

Regardless of your political inclination, the reality is that the USA government is working closely with big business, big money, and big banks. It has taken only three weeks for the Trump government to demonstrate open hostility to its own citizens and is already borderline authoritarian fascism. Most people cannot even hope to be represented by their congressman or senator. I should know, none of my proposals has any congressman or senator bother to even respond with anything but a lousy letter from an intern that has been identified from each one of them. Generic letters to pretend they are listening to you. Disgraceful politicians that care little for what is happening in America.

Very few politicians actually represent our personal and individual interests over that of big money and big power – it’s an unfortunate human condition and democracy will come to an end if this continues. We must prepare for what lies ahead.

The Event Ahead

We have reached the point where the debt is impossible to stop. The powerful elite has lost control of the situation and Trump may have been allowed to win to cause the collapse and the elite can walk away pretending that they were not at fault.

The economic collapse will bring social unrest and war is unavoidable. It is more a matter of how far it goes as social chaos may bring complete anarchy of society. There will be millions upon millions of people confronted with the destruction of their standard of living. Riots and crime may become impossible to stop and some states may even consider separating from the United States.

 The full extent of the damage to the economy is unknown. No one seems to realize how broken the banks really are. And no one can predict how the global economy is about to crack under all of the pressure.

Of course, no one dares to face the fact that the debt of the United States has reached an impossible point of no return and the only way that it will end in a collapse. The signals are much to clear. But few are paying attention.

This critical warning will be probably ignored as most of my warnings have been ignored in the past. Yet I am predicting that only a few months from now, the world’s economy is going to face a full-blown collapse the lights of which we have never seen. We are already experiencing extreme volatility that can’t give any other result but a global financial crisis.

Brexit is one of the triggers that should be used as an alert to severe problems in the financial system. I fear that investors are again ignoring at their peril.

Stock markets around the world have plummeted recently and huge losses keep piling up. In the USA, the “fantasy” of supposed changes in the economy by Donald Trump-inspired investors for markets to recover quickly. And now the S&P 500 index is making new all-time highs. But those can’t be lasting results when the Trump administration has shown signs of complete instability.

Regardless of whatever economic policy in the United States it will be unable to mask massive underlying problems. By March 16 it will become much too evident that once it hits twenty trillion dollars in debt the debt ceiling will have to be raised. But that is only government debt and if we add all the other debt of the United States we are looking at a figure so astonishing as $250 trillion dollars.

Europe is trapped in an environment of negative growth, massive debt and sky-high unemployment. It is not only Greece, Portugal, Cyprus, Spain and Italy who are suffering the same symptoms. Italy’s has smaller growth that seventeen years ago when the population is much larger. Spain is approaching bankruptcy and has seen unemployment beyond 20% of the workforce. France is reliving centuries past recessions, and struggling to maintain any kind of competitiveness against Germany.

So, the entire world is confronting serious problems in the financial sector. Banks are becoming insolvent. You can’t have banks leveraged with debt forty times their equity/capital.  Back in 2008, the collapse of Lehman Bros. was the trigger for the complete collapse of the world economy and yet they were leveraged only 31 times their equity/capital. Deutsche banks are over forty. The world is about to imploded and it will spark the worst global financial crisis since the Great Depression.

Europe’s banking crisis will destroy the European Union and the Euro will collapse. In Italy, it is calculated that close to 18% of bank loans are bad, that is over $360 billion dollars. The avalanche of losses has just begun and Italy’s UniCredit has lost nearly 70% of its value. Royal Bank of Scotland has declined more than 55%. Credit Suisse, Deutsche Bank and Barclays have seen their shares decline by 50%.

Strangely that is the only thing holding the European Union. Because they are hoping that the European Central Bank will step forward with new Ponzi schemes to bail these banks out. But that is not going to stop the bleeding because nothing will change the economies of the countries in question.

The breakup of the European Union will trigger a financial earthquake with such magnitude that could potentially cause a global collapse. The extreme volatility and dysfunction in all global markets.

Bank runs would become inevitable and the damage will spread as consumers may try to prevent being left without cash well before the actual earth-shattering event took place. Just like in the France of Louis XVI before the French revolution the banks will be the beginning of the end. European banks will be declining further for the lack of confidence. Eventually, bank runs would spread into a more widespread financial crisis in the global financial sector. Non-eurozone financial institutions in the U.S. and Asia would come under immense pressure because they too have heavy exposure to European banks.

An EU crackup would also mean the end of the euro. All Europeans countries will have no recourse but to create their own new currencies. Unless those currencies are backed by silver or gold they will lose value very quickly. Of course, the possibility is that Germany and others may gain value rather faster than the decline of the others. That means exports from Europe will become rather cheap for some countries and extremely expensive for others.

There lies a big mess for Donald Trump.  The imposition of tariffs at this time is beyond stupidity and can only make worse the problems of others.

Several countries will be experiencing massive inflation spikes and buying power erosion. Countries with weakened currencies and bank failures would see sovereign defaults on an epic scale.  In normal circumstances, the United States would have enjoyed an incredible economic output. Unfortunately, these events would further imperil the banking system across our globalized economy.  It will affect all trade agreements, existing EU business contracts, trade deals and financial transactions would have to be established in entirely new currencies. And the legal validity of existing euro-denominated deals would be unknowable. The biggest problem will be a liquidity crisis and a global recession.

I am not trying to be right on my predictions and I am analyzing the data as I see it and all I know is that we need to prepare for such an event.

What Can We Do?

I have seen many people claiming to have a perfect plan to profit from the collapse and that is absurd. If this happens we will be lucky to hold our community together to improve our survivability through a thought process of self-sufficiency, self-protection & preservation, and insulation from dangers that will be even geographical.

Germanico P Vaca