“I am more concerned with the return of my money than the return on my investment.”  Mark Twain

When the economic model for the U.S. and the world is based on ever increasing debt levels the end result will be an inevitable failure.  How long could your home and family exist with a model based on always increasing your personal debt?

YOUR money is at stake if you are invested in this economic model and Friday we received the latest of lies with a report of improving job numbers as the banks and politicians working with the media prop up their failing model.  All of the wealth and power held by those at the top of this economy stem from this fiction.

The facts are that the Federal Reserve, Janet and the boys club and other Central Banks haven’t a clue how to fix the problem and no incentive to do so.  All they have managed to do is continue the lies and eventual failure of their game with a Fed balance sheet growing from $1.3 size=3size=3size=3size=3size=3size=3size=3to $5 trillion, 4 times greater than the last implosion reaped.

  1. The bond bubble has grown since 2008 from $80 T. to over $100 T.
  2. The derivative market that uses bonds as collateral is over $555 T.
  3. The governments of the world and multinational corporations are using derivatives to fake earnings and hide their true debt levels.  Companies borrow money to buy back their stocks and prop up stock prices rather than productive reinvestment and the mal-investment grows.
  4. Corporate bonds are up double from $3.5 T. in 2007 to $7 T. today and represents half of our G.D.P. with no REAL output.
  5. The Central banks of the world are ALL leveraged at greater levels than Lehman Brothers was at in 2007 at 30:1.  The Fed today is leveraged 78:1 and the E.C.B. is 26:1.

Expanding such a destructive system is NOT the solution.  Getting rid of central banking is infinitely preferable as the modern monopoly of central banking is simply genocide in waiting.  It concentrates more and more power into fewer hands.  Eventually the imbalance is going to result in further repression, authoritarianism and the inevitable result will be a continuance of wars, destruction of infrastructure and personal property, hunger, disease, suffering and death of the poorest.

The world today exists in a revenue recession as energy, the S & P, industrials, materials and commodity prices fall.  We are feeling the effects of an earnings recession at home as well as a global recession.  Central banks will continue with monetary easing as collateral values continue to collapse and housing values top out.  Some nations are starting a basic income payment like, Finland, Holland and Switzerland.  The U.S. will attempt helicopter drops of money such as tax refunds and student loan forgiveness programs to improve consumer spending levels so that the U.S. can continue to export empty cargo containers to China.