Total Pageviews

Tuesday, May 2, 2017

Why are we on the way towards chaos?

Image result for brexit trump le pen

Greece.  Brexit.  Trump.  Le Pen.  Isis.  

None of these are problems.  These are symptoms. 

There is one big problem plaguing the Modern world.  And that is something few are even willing to acknowledge:

Negative Real Rates.

Because of the massive global debt, the central banks of the world are forced to keep interest rates well below the rate of real inflation.

They claim there is no inflation, in order to justify this.

And if you just count the cost of buying a new laptop or flat screen tv it's true.

But is you count in the cost of Education, Health Care, and Housing: Inflation is growing faster than 10 percent per year.  Not to mention Food, Energy, Insurance etc.

In fact if you take the 500 most purchased items in the 50 largest cities in the US, inflation has been growing at over 10 percent per year for over 40 years.

Meanwhile, when you lend the bank your money they pay you ZERO percent for the privilege.

That means you are losing TEN PERCENT PER YEAR on all of your cash.  For those who can't afford Hard Assets and Stocks that means you are sinking quickly into a morass of debt.  That's the entire middle class everywhere.

This will never end because the central banks will never raise rates anywhere near the real cost of holding money.  They can't.  Because the interest on National Debt everywhere would crush every budget.

So to maintain central government power everywhere, the central banks will continue to crush the middle class by refusing to recognize and compensate the real cost of money.  And by taxing every other form of wealth. 

This means that the masses of the middle class worldwide will continue to sink into oblivion.  And they will express their discontent by electing more Trumps, and Le Pens, in the Western World, and by acting out violently everywhere else.

So buckle your seat belts.  Things are moving in one direction.  Quickly.


No comments:

Post a Comment