Authored by Brandon Smith via Alt-Market.us,
The
US economy has been experiencing what I would call a form of “stasis”
for the last year; it’s floating in the deep ocean, waiting for a
catalyst. Either it finds dry land soon, or another anchor is added and
it sinks into the abyss.
In my article “Trump’s Return: Get Ready For Chaos To Be Unleashed And Blamed On You”,
published in July of 2024, I predicted that Biden would step out of the
presidential race and that Trump would win the election. I noted that:
“It
was perhaps one of the biggest blunders the globalists have ever faced.
The WEF’s Klaus Schwab, Dr. Evil himself, has faded into the background
and retired as executive chairman. The big play for medical tyranny
bombed. Now what to do?
Is it a mistake
that the establishment has continued to stick with Biden despite his
delirium? Or, did they send Biden into that first debate knowing exactly
how bad it was going to go? Is this a ploy designed to complete the
Herbert Hoover scenario?
This year,
Trump hinted in an interview with Fox Business that he “does not want to
become the next Herbert Hoover” inheriting a time bomb economy from
Biden. Biden argued in response that Trump was ALREADY like Herbert
Hoover because of the jobs lost during covid.
This is, of course, a false claim. But the narrative is everywhere: “Trump will oversee a crash in America similar to 1929…”
There were two ways to interpret the election outcome:
1) The
globalists put all their eggs in the Biden basket (and the covid
basket) and made a detrimental error. Leaving the White House open to be
taken by conservatives even with possible election manipulation.
2) The
globalists accept that they failed to turn the pandemic into the
permanent medical tyranny they wanted, but they’ve moved on to Plan B.
They are now setting up conservatives and populists to take the fall for
an economic crisis they have been brewing in the background for years.
When
it comes to the second scenario, it’s important to understand that it
is impossible to reform the current economic system without triggering a
rapidly escalating crisis. Libertarians have been chanting the motto
“End The Fed” for decades, but I don’t think many of them grasp what
this would actually entail. Any change in the status of the Federal
Reserve means financial chaos.
The globalist system is set up to self destruct if it is tampered with. This is an unavoidable fact.
We
are already seeing the consequences of this with Trump’s closing of
USAID and his implementation of tariffs. The effects are not as visible
in America, but around the globe the throttling of US funding to foreign
markets is causing a panic. It’s astonishing to see just how dependent
the rest of the world has been on US taxpayer dollars and the steady
fiat created by the Federal Reserve.
Europe,
for example, is scrambling to fill their security void with
proclamations of increased military spending. Europeans often criticize
Americans for not supporting socialist welfare programs like universal
healthcare. What they don’t mention (or are too ignorant to realize) is
that THEIR socialist programs have been entirely dependent on US defense
spending.
We make NATO possible with hundreds of
billions of dollars in military support so that Europeans can have
their free healthcare while they sneer at us. Canadian officials across
the border have admitted that if they increase their NATO spending to
just 2% of GDP as they are supposed to do, their social welfare programs
might take a hit.
This is only one example of the kind of
instability that occurs when the US stops paying for the rest of the
planet. We have seen numerous third world governments show up (like
South Africa), demanding continued handouts from the US. They don’t ask,
they EXPECT. They have been enjoying our money for so long they now
feel entitled to it. That is the globalist system we are currently
living in.
So, you can imagine what might happen if all that
America cash is cut off at the source due to a government shutdown.
Generally, a government shutdown affects foreign aid by halting new
obligations and disbursements of funds .
While some aid can
continue, the impact depends on several factors, including the type of
program, existing contracts, and the administration’s policies. We have
no idea at this stage how long the shutdown will last, but foreign
governments and outside contracts must be sweating bullets. Trump has
even argued that he can use the shutdown to cut programs and make
changes he would not be able to accomplish otherwise (Senate Republicans
have already used a new rule to confirm over 100 Trump nominees while
the Dems are throwing their shutdown tantrum).
This isn’t a
terrible idea. In fact, I applaud him for it. Most of Trump’s policies
are exactly what we need to reverse our disastrous course, but is it too
late?
I have to acknowledge the fact that the system won’t
tolerate reform without negative feedback. Loss of dollar circulation is
going to put pressure on foreign banks to look for alternatives. I’m
not talking about a BRICS currency because the BRICS aren’t capable of
replacing the dollar. What I’m talking about is globalist institutions
like the IMF and BIS which have both been quietly working on a digital
(CBDC) dollar alternative for a number of years.
Meanwhile,
the dollars that don’t spread out overseas will come back to the US,
and we are already experiencing persistent stagflationary conditions. Price increases have slowed since Biden was in office, but we certainly haven’t seen costs in necessities go down much.
I
would point out that the housing market (a canary in the coal mine) has
been dealing with a rapid decrease in sales since the pandemic. Yet,
the insane prices refuse to decline to meet the falling market demand.
We are also seeing this in groceries, gas prices, electricity, auto
prices, etc. Demand is plunging, but prices will not adjust. Retail
sales remain high, but only because Americans are spending a lot more
money for a lot less stuff.
Gold and silver are also trying to tell us something.
Despite growing stagnation, metals are skyrocketing in price. Silver
prices have exploded by 50% since last year. Gold is over $4000 an
ounce.
This is good news for those of us holding onto PMs, but it
is also a signal that inflation is not going anywhere. One could argue
that metals are merely catching up to where they should be in the face
of suppression by banks, but I don’t think this explains it.
More
likely, dollars are coming home to roost in the US and this is going to
keep prices high even in the face of a deflationary event (recession).
That’s not good in the short term. Like I said, globalism is designed to
punish anyone that tampers with it.
And then there’s the central
bank. Concerns are rising in the mainstream that Trump may use recent
events as a means to “reimagine” the Federal Reserve, thus ending its
much touted “independence”. The Fed is, of course, not independent – It
answers to international banks, as noted by globalist insider Carroll
Quigley in his book “Tragedy And Hope”. This is the structure that was
put in place over a century ago to help finance the globalist edifice
through fiat.
By interfering with the Fed, economic blowback is assured.
This
is not to say that nothing should be done; the entire globalist empire
must be erased eventually. But it’s naive to think that we can do it
without a historic crisis. Even basic government spending cuts will
trigger instability – Upending the Fed would be a disaster. And guess
who gets the blame for that disaster? You, me, and anyone who backed the
populist movement.
So be ready for the international ire
and be ready to fight, because they’re going to try to crucify us when
the anti-conservative and anti-nationalist narrative drops. I have
always said that Democrats would never allow a shutdown on their watch.
They would only ever support a shutdown while conservatives are in
power.
But maybe the shutdown will end quickly. The
debate largely depends on the Democrat Party’s insistence that illegal
immigrants in the US under pretenses of asylum are “documented”. This
means they get access to ACA coverage (free healthcare). This is an
indefensible position and they won’t be able to exploit it for long.
That
said, the political left has proven over and over again that they want
the country to burn, and if they can do it while Republicans take the
blame, all the better. I worry that a budget agreement is not meant to
happen and that a crisis is meant to fester. Is this the “inflection
point” many of us in the alternative economic media have been expecting?
If
so, then it is happening sooner that I thought it would. I figured we
would have at least two years of Trump’s second term before the other
shoe dropped. But the speed at which leftist groups and the globalists
are accelerating their political violence suggests an economic reckoning
is around the corner. Every major crash event in history tends to coincide with civil unrest and war, and the pattern appears to be repeating.
