We obviously have money to burn. Between The Fed and The Treasury there seems to be no limit on the amount of money to be created. Central Banks and Governments (not always the same thing) are doing the same. Where does the global bubble end? Finding the answer is out task.
Mike Maloney 2016: https://youtu.be/Q3BjMUd391c
Bull Boom Bear Bust: https://youtu.be/MNV_gIWgfy0
X-22 Report: https://youtu.be/JBQxkv6LJ80
Welcome to another Money Today. The craziness continues. So, I’m hoping this is the last time I’m going to talk about this subject. We’ll just go over it one more time, we’ll refer back to this video in the future because what I’d really like to do is just spend this whole channel on mainly discussing the future of money, like what is going to happen?
There are plenty of people who will discuss what happened and maybe I’ll throw some of those in once in a while, but what happened is we can clearly see what happened and I’m going to play some clips right here and we’ll take a look at that. And then we’ll start spending our time in the few further channels on discussing on what’s next? What is the future of money? But in the meantime, here are some clips for the basis of what I’m going to talk about, and then we’ll get back into discussing it right after.
Speaker 1: So, the crisis is still going on today. When there’s a crisis, it echoes around the world. And here is, you see QE1, this is the blue, it’s the Federal Reserve, Bank of England is green, Bank of Japan is red, the European Central Bank is yellow. So, quantitative easing one, quantitative easing two, quantitative easing three, but right now they’re creating the equivalent of $180 billion every month. And so, the emergency that is going on in Japan and in Europe has not ended and the world is so globally connected with the next recession, we are going to see one hell of a crisis.
Credit card limits are being slashed without warning. 4.4 million newly unemployed people in the U S just in the past week. All of the job gains during the “economic recovery” have vanished in just a matter of weeks. Credit card debt for households for individuals is higher now than what it was prior to the financial crisis. And 67 million people could have trouble paying their credit card payment. And this is out of community news. A recent report here, nearly one-fifth increase in homelessness in San Bernardino County, that’s here in Southern California compared to one year ago, which was April, 2019.
Now, who knows, maybe when we get some data on areas that are even more expensive, maybe homelessness will be even worse. But when you look at hundreds of people and sometimes even thousands of people additional becoming homeless, we know then it’s a lot more than just thousands of people went crazy, just in the past year. There’s an economic impact here that’s affecting a lot of people. And think about all of the mortgages right now that are in forbearance, we have 3 million people, either one, they can’t pay, or two, choosing not to pay their mortgage just after being out of work for what, four or five weeks now since the lockdown. The homeless problem could be many more millions of people if it were not for banks giving these forbearances.
Speaker 2: I wanted to get your take on the economy and what you think is happening right now? Do you think we’re heading into or do you think we’re in a recession, depression, or do you think we’re heading into one or Trump said, he believes there’s a lot of pent up demand, he believes that the economy is going to spring back. What do you think is going to happen with this economy?
Speaker 1: Well, I think the point you made that’s really relevant is that there’s a transition underway. The old system is not coming back and that’s good because the old system was dysfunctional, it was parasitical, it was controlled by speculators on Wall Street and the city of London and Brussels and Frankfurt. It’s a shadow banking system. It got bailed out after 2008 and then it built up a new bubble. And now it’s coming back saying, as this bubble is popping, you have to keep pumping money into the bubble.
This is not a Corona recession or a Corona depression. The collapse was underway before there was a single case of Corona virus anywhere in the world. In September, and I think we discussed this maybe in September or October, the repo markets were taken over by the Federal Reserve, the overnight lending markets because there were liquidity crunches. There were liquidity crunches because the banks no longer were willing to take worthless assets for overnight lending. They knew that there were these zombie corporations that weren’t making enough money to pay the interest on their debt that needed for accounting purposes, short term infusions of cash. And that’s what the repo markets are.
But the banks bailed out of that, they left it, they dropped it. And the fed went in, in the middle of September, 2019 and since that time, we’ve had a flood of money. We’ve had all these liquidity institutions and facilities set up. We have quantitative easing, we have repo to the hilt and now we have $4 trillion being put at the disposal, essentially of BlackRock, the equity firm, to determine winners and losers. And the fed is loaning the money for that.
In the meantime, the fed is buying every bond, corporate bonds, junk bonds, and so on. My inclination would be to say, shut down the fed, nationalize it, take it over, put it under the treasury completely. And then let the so-called Federal Reserve eat the losses for all the bad debt they’ve taken on. And then let the treasury go on about the process of generating new credit for physical production.
Host: Okay. So, if you looked at those clips, you see there’s a lot of people who knew there was going to be an implosion of the economy. Not too many people understood that the bubble could be blown up one more time. It was a lot of people out there saying, “Oh, this is it. 2008, there’s no way they can do this again.” Frankly, it would have to be something worldwide and just happened to come along this pandemic. Or somebody put it, human malware came along and all of a sudden now we have this amazing excuse to just print money around the world. I mean not just United States, everywhere. And that’s what had to happen to be able to blow this bubble up one more time.
And if you go back, I look at what’s been going on for the past few years. What it looks closer to, this is all being coordinated. All of these trade talks and meetings and things, it just seems all to culminate into exactly what’s happening right now. It’s just a worldwide bailout that had to happen or else that was it. But when you say that is it, that’s what we’re going to get into in the future episodes. Don’t for a second think they would — as I was saying, this part was planned. Well, don’t for a second thing that the next part is not planned too.
The question is, is when and what? And that’s what we’re going to have some fun digging into. So, crazy enough, stock market is up today, even though factories are shut down, supply chains are shut down. There’s just no correlation between the financial economy and the real economy. And that’s been true for a long time, but the average person couldn’t just see that. And if right now you’re still watching CNBC or one of these financial channels and still believing what they’re saying, that there’s any sort of correlation between the physical and these financial markets. I can’t even imagine being that blind. Is it just no possible way that you could make that connection anymore.
And I think the majority of people get it. Those aren’t the people you’re going to hear about a lot or see. But there are a lot of people who knew something was coming at least, I’ll give them credit for that. I mean people like Peter Schiff, since 2008 has been saying there’s going to be a crash. Well, you know, even the clock’s right twice a day.
So, we are here. We’ll hopefully stop talking about what happened and we will start talking about what’s going to happen, and that’ll be the fun of money today and money tomorrow. Maybe I’ll have to change the name. Anyways, thanks for watching. And it will be so interesting to get into this. Bye.