Article by Colonel Nogov on Nov. 10, 2015
About two weeks ago JP Morgan’s chief global strategist David Kelly released a paper “Avoiding the stagnation equilibrium” in which he states, “Sadly, it is probably more likely that we get stuck in a “stagnation equilibrium” where a zero interest rate policy actually reduces demand in the economy, prompting the Federal Reserve to prescribe even further doses of a medicine that, for a long time, has been impeding rather than promoting economic recovery.”
Say what? Did the chief global strategist for JP Morgan just say that zero interest rate policy is actually hurting the economy? Something that alternative financial advisers have been saying for years now.
The paper goes on to conclude that the fed should start raising rates. When one of the top guys at JP Morgan starts sounding like alternative financial advisers, I know something is about to go down. It’s not as if the guys at the top levels of the megabanks are idiots. They understand economics inside and out. They are some of the top criminal minds on the planet.
Why the sudden change of tune? Everything these guys do and say is to help themselves, not the economy. When they were promoting QE and zero interest rate policy before, it was for their benefit, not the overall economy. They knew it would hurt the economy, yet promoted it anyway. I think this paper does two things. It signals to the other criminal megabanks that it’s time to pull the trigger on their plan and it starts selling the idea to the public.
The clown has been unleashed.
So, what’s about to go down? I can only imagine. Imagining took my mind to some seriously dark places.
The first most obvious question is: Why does JP Morgan want to prick the massive bubble built up along all asset classes? It’s not as if they really care about people or the economy. They’re looking out for what’s best for them.
In an attempt to get inside these guy’s heads, it lead to this question: If I had the power of the printing press and cared nothing about people, what would I do? If you think that question is dark, the answer I came up with is even darker.
I am gaining no more benefit from QE and zero interest rate policy, so it’s time to pop the bubble. (The megabanks have been preparing themselves for years now.) Not only would I let it pop, I would let it crash as bad as it could. Raising interest rates and not printing any more money will crash every asset class, stocks, bonds, real estate, commodities (except gold and silver, I’ll get to that) to extreme low levels.
The effects of this among the common people will be devastating. Massive unemployment, bankruptcies, foreclosures, homelessness, rioting, starvation, the rate of suicide will spike, a spike in drug and alcohol abuse, a spike in overall crime rates, war. The popping of the real estate bubble was just a small taste of this.
The people will then be begging for a rescue. Help us! Save us! Help us! Save us! When I thought the situation had hit rock bottom, I would give in to the pressure of the public outcry and crank up the printing press like the world has never seen.
I would then buy up every hard asset I could. Real estate and gold mainly. I wouldn’t buy stocks or bonds or other commodities. I might possibly buy some means of production. For instance, if a company like caterpillar was having a fire sale on all their inventory, tractors, bulldozers, etc. I might buy that as well.
I would buy and buy and buy. It doesn’t matter if the prices are rising because I’m buying it with the funny money I’m printing anyway. The common people who have survived so far and haven’t been foreclosed on would be so relieved to sell just to get out from under the crushing debt burden.
I would keep printing until the currency is destroyed. This will likely destroy central banking too, but I don’t care at this point because the golden goose is at the end of its life cycle and the only thing to do now is reap the last bit of assets I can from the system. I know the system can’t be saved.
Many governments will also be destroyed. It makes no difference. The peasants will install new governments. The only governments I will help protect are the ones who hold the key to property title registries. The local governments.
When the currency is finally destroyed, I will be holding a large percentage of the worlds wealth, Real estate, gold, means of production, art.
When the smoke clears, the fingers will be pointing everywhere. It was capitalism. It was socialism. It was free markets. It was the government. It was corporations. It was over regulation. It was under regulation. It was the democrats. It was the republicans. It was the gold bugs. It was central banking. The masses will not know what to believe and I will walk away having committed the crime of the century.
In my darkest imagination, the above scenario is what I think the megabanks have in mind as their end game.
I think the bail-in scare is mostly a red herring. Or may occur on a small scale. Though I’ve protected myself from it just in case.
About gold and silver. When the asset classes collapse, gold and silver could go any direction. In the long run, physical gold and silver will be the common man’s salvation along with an emergency food supply. In the short run, gold could go up, down, or sideways. It’s manipulated. Openly.
This headline says it all.
293 paper contracts for every ounce of physical gold at the comex. This is like fractional reserve banking for gold, except physical gold, unlike currency, can’t be conjured out of thin air. What if people want to take physical possession of the gold they have a contract on. A gold bank run. Do 292 contracts per ounce get wiped out? Not likely.
Most likely they’ll settle in currency. How much currency will people accept instead of getting their ounce of gold? How much will the price of gold get driven up?
Instead of settling in currency maybe they chop up the ounce of gold into 293 pieces and everyone gets a 1/293rd piece for their contract. This would put the price of gold at an astounding $322,000 per ounce in today’s dollars. I don’t think that’s even remotely possible.
If this article by JP Morgan signals the pricking of the bubble, find your seats. The horror show is about to begin.
I generally try to avoid “disaster porn”, but this article by the top global strategist from JP Morgan got in my head and wouldn’t go away.
Far from being a pessimist, I think on the other side of the worldwide economic collapse and disaster there will be pockets of real freedom.