The number one enemy to We the People is not a President, a Party, or any political machine. It is not something we abhor; rather, something we can no longer live without. It used to be occasional or now and again – now it is the only way 80% of We the People survive! It has replaced wage increases! And like any addictive substance it is slave-enticing away our ability to be without! What am I talking about?

DEBT!!

Not just the National debt, or corporate debt, or banking debt. This is about OUR DEBT; the debt of We the People.

Official US Debt Clock

As of January 26, 2018, We the People owe:

$18.8-Trillion in personal debt
$14.9-Trillion in mortgage debt
$1.5-Trillion in student loans
$1.0-Trillion in credit card debt

and RISING VERY QUICKLY!

Are we heading for another impending collision with fate? One that involves excessive debt, loss of credibility in U.S. economy, which means significant loss of value of our U.S. dollar. Then an unexpected primer like another mortgage crunch, or perhaps super high healthcare costs, or even plain old out of the ballpark personal debt – will start the dominoes falling. The impact to the financial industry will likely be 10x, 100x greater this time around and will clobber We the People! This time our government bailouts and our government controls and government stimulus will be completely ineffective! In other words our failed economic system has become immune to anti-meltdown medicines of the past. Then what? Well there is a last-ditch option that hopefully would avoid the Ultimate Great Recession even if by a hair. This event if implemented, would try to normalize our over-indebted, otherwise permanently broken future. The term is Financial Jubilee !

The result of Jubilee to our economy is called Hyper-inflation!

These two reactors will be ugly, ugly, ugly, for We the People but not leave us in economic reset mode – which is rally nation and government reset mode! Unfortunately, using this approach will further critically endanger our democracy and our freedoms. Why? We become even more subservient to those few and getting fewer, who will still have great wealth and to the government that will be controlled by those few who have that wealth. The term for this state of government is Democratic-Plutocracy. We vote, but only for those put before us by wealth. Shall we explore financial jubilee and hyper-inflation? See how they will affect our nation?

American Financial Jubilee

“Total debt is currently growing at almost 4% a year. Since 2008, our economy has grown an average of 2.9% a year. That means, once again, our debts are growing much faster than our economy. Our economy did not deleverage. The “normal” methods of reducing our country’s debt burdens did not work.” [1]

Consider if you will, a world where the ATM does no longer work, is shut off. Credit cards are no longer accepted at stores or online and neither is any form of paper currency! Why? Because the banks who orchestrate our means of barter, are gone; wiped out of business! Our new economic landscape has become littered with paper dollars and I.O.U. offers but because the U.S. dollar is no longer the World Currency, and has been so devalued by Federal, Corporate, and Consumer missed payments – all our dollars under the mattress are as worthless as the politicians who authorized their printing. Welcome to the Ultimate Depression!

This scenario will uncle Sammy (via our politicians) thrash to avoid (total meltdown). This scenario represents a level of economic contraction and dysfunction not seen in our precious United States, since 1929 – but the next one would be much worse. Therefore will politicians ramp up the pretty talk to We the People. They will plan, compartmentalize, and label the happenings in terms of “they” not “We” and then implement their planned, American Financial Jubilee. The politicians will once again, pick winners – and losers from among We, those who will rule We (indirectly) through election of they, using their politician selective wealth. And who will the politicians choose? Well those who can make sure that these get re-elected of course; super wealthy political posturing persons.

Welcome Democratic-Plutocracy!

A Debt Jubilee (or holiday) can only be imposed (implemented) by the Federal Government and make no mistake, although a jubilee will likely avoid the Ultimate Depression, both the action and resulting hyper-inflation will have radical, far reaching affect, at home and abroad! We will look back and lament for the day we had freedom to choose and the ease of trading without the need of hard assets at every transaction because more often than not, the longer term result of jubilee can be either a new, reduced and highly unstable currency or even a bartering system replaces worthless currency; my wagon for your horse sort of stuff. A government would prefer a new reduced value currency and they would try their best to stabilize it for use. This brings us to term number two.

Hyper-Inflation

“Hyper-inflation is when the prices of goods and services rise more than 50 percent a month. The severity of price increases distinguishes it from the other types of inflation.” [2]

Has the U.S. ever experienced hyper-inflation? Yes, but not since – the Civil War. Does that mean then that we should not worry about our economy flying to the moon of despair?

WE SHOULD HAVE GRAVE CONCERN WHEN OUR POLITICIANS ARE IN CHARGE OF ECONOMIC CONTROL! Not that any other Capitalist could do better, meaning without self-serving motive, but the fact is politicians are not interested so much in our economy as how our economy – can get them re-elected. The richer they are, the less concerned are they.

“The most well-known example of hyper-inflation was during the Weimar Republic in Germany in the 1920s. First, the German government printed money to pay for World War I. From 1913 to the end of the war, the number of Deutschmarks in circulation went from 13 billion to 60 billion. The government also printed government bonds, which has the same effect as printing cash. Germany’s sovereign debt went from 5 billion to 100 billion marks.

At first, this fiscal stimulus lowered the cost of exports, and increased economic growth.

When the war ended, the Allies saddled Germany with another 132 billion marks in war reparations. Production collapsed, leading to a shortage of goods, especially food. Because there was excess cash in circulation, and few goods, the price of everyday items doubled every 3.7 days. The inflation rate was 20.9 percent per day. Farmers and others who produced goods did well, but most people either lived in abject poverty or left the country.” [2]

Why did the farmers and goods producers do okay? Because instead of buying and selling with currency, they bartered directly with their tangible goods – food, clothing, etc.

Move ahead to 1929 – 1933. The United States Great Depression of 1929 hit the world hard. It hit the already impoverished German people very hard. Their situations dire, poverty great, outlook grim, hopelessness. Did this grim economic plight in Germany, lead to the rise of Adolf Hitler?

“Widespread economic misery, fear, and perception of worse times to come, as well as anger and impatience with the apparent failure of the government to manage the crisis, offered fertile ground for the rise of Adolf Hitler and his Nazi Party. Hitler was a powerful and spellbinding orator who, by tapping into the anger and helplessness felt by a large number of voters, attracted a wide following of Germans desperate for change.” [3]

Who does that description and technique remind us of? Perhaps we want to thank our lucky stars that we were not in the middle of a great recession (other than in his mind and constant bombast). Otherwise we might have ended up with Adolf II. Fortunately for We the People Obama humbly and with much perseverance, to the crisis at hand, carefully and with restraint, set our course in 2009. By 2016 election the U.S. was out of grave danger, in a stable, howbeit smaller sized economic growth.

Follows are some signs of underlying stress in the current economy:

The same banks, hedge fund and insurance companies that gave us the great meltdown of 2008, are getting back full control. How? Through Trump and GOP Congress deregulation. The financial betters got deregulation granted the banking industry in 1999, by GOP Congress repeal of Glass-Steagall [4]. Amazingly but perhaps not so much, was that Billy the defunct President signed that Congressional decree; that repeal that led up to the 2008 meltdown!

Now, in 2018, these same financial banks, hedge funds, and insurance companies like AIG (remember We bailed them all out), are being primed again by GOP Congress. They have not really slowed down anyway; Dodd-Frank being more a wall between We the People direct savings and Wall Street gambling than curtailing it. But now, these Wall Street gamblers are free again to go all in with CDS (credit default swaps) and ABS (asset backed securities), highly-leverage, betting between these various financial companies and they will have again, no wall between their gambling and our savings! When next, a “hiccup” occurs that threatens their highly leveraged game? Well they think – the treasury of course! One good bail out deserves another; no the banks have not learned any lesson whatsoever from 2008. Have We the People?

The problem and the danger is that in our still fragile economy any hiccup and we will have another domino effect crisis like 2008. The difference being that this time – will be much much worse. This time we may have no choice but to allow the banking industry to TOPPLE – along with our economy. Why? Wall Street is not prepared for the day that call comes to pay up, neither is the Federal Government and neither are We the People, by the way!

Therefore we all risk again, a major meltdown – the greater Ultimate Depression! What will the falling domino be this time? Retail collapse, Mortgages again, unsupportable (too much) consumer/business debt, U.S. dollar being debunked as the World Currency, Healthcare costs, Trump bombast that causes chaos – what?

— references —

The Future of We. Hyper-Jubilee?

DEBT!!