Conspiracy Theorist: 5/5

‘Colossal financial event’ coming…

But nobody knows exactly when

By Mark Luedtke

It’s easy to predict the U.S. economy will soon experience an unprecedented crash. It’s easy to predict the global economy will do the same. Booms and busts are created by the artificial expansion of credit triggered by the printing of counterfeit money by central banks. Central banks print money much like counterfeiters in their basements. They hand the money over to their friends, just like counterfeiters in their basements. They and their friends go on a spending spree, just like counterfeiters in their basements.

There are a few differences. Central bank counterfeiting is legal. Counterfeiting out of your basement is not. This has no effect on the economic consequences. Whether legal or not, counterfeiters use their phony money to amass wealth for themselves and their cronies, leaving less for everybody else.

Bankers buy primarily stocks and bonds first, producing bubbles in these markets. The mansions and yachts are secondary, but they feed the outrageous bubble in high-dollar real estate we’re seeing.

The third difference is banks which receive the newly counterfeited money use it as a foundation to create even more counterfeit money in an upside-down, credit-creation pyramid. While somebody in their basement might print and steal millions, central banks print and steal trillions – the Federal Reserve (Fed) has expanded its base from about $800 billion since the 2008 financial crisis to about $4 trillion today – and because banks only have to hold about 10 percent of that new money in reserves, they can create ten times more credit, flooding the economy with tens of trillions of dollars. Similar counterfeiting is happening in every developed country.

Despite this unprecedented counterfeiting, the current boom never took off like past booms, but the unprecedented bust will follow. The only question is when.

Conventional wisdom says never bet against the Fed. So far that’s been true, but the Fed ended its Quantitative Easing counterfeiting programs months ago. It still counterfeits enough money to keep interest rates at zero, but Yahoo reports, “The New York Federal Reserve officials tasked with prying interest rates off the floor have been meeting with bankers and traders to plot how best to do it, amid deep uncertainty over how much control they will really have over short-term lending markets.”

The supposed experts at the Fed have broken the economy so badly they’ve lost control.

Economist Mark Thornton explains, “It turns out that officials from the New York Fed have been asking traders, financial firms, and even other central bankers how they can increase the Federal Funds Rate by 1/4 of 1 percent without bringing the world financial system to its knees.”

The Fed’s expert thieves have painted us all into a corner, and they can’t find a way out.

Despite unprecedented counterfeiting by the Fed, the dollar is getting stronger. This may sound like good news, but Business Insider reports otherwise. “The surging dollar is a signal that a colossal financial event is just around the corner,” it declares. “The last four large dollar shocks in the past 45 years have been symptoms of huge financial events: the collapse of Lehman, Britain’s panicky ejection from the European Exchange Rate Mechanism (ERM) in 1992, the first Gulf War, and Paul Volcker’s shock rate hikes in the early 1980s. Today’s surge is already considerably larger than the one that surrounded Lehman’s collapse, although the economic conditions are very different.”

Calling today’s economic conditions different is like saying nuclear bombs are different than firecrackers.

The reason it’s impossible to predict exactly when the event will occur is event triggers are created by human action, and people are unpredictable. Maybe the trigger will be Greece withdrawing from the Eurozone. Greece’s financial problems dropped out of the news a couple of years ago, but they didn’t go away. They’ve gotten worse. The Greek government is effectively out of money. It’s paying 24.87 percent interest on bonds while it negotiates more, comprehensive loans, but it refuses to give concessions. The rest of the PIIGS (Portugal, Italy, Ireland, Greece and Spain) aren’t far behind. Maybe the trigger will be a clash between U.S. and Russian troops in Ukraine. Maybe an Israeli attack on Iran will trigger the crash. Nobody can know.

Although rulers will focus on the trigger to protect central bank counterfeiting, the trigger is incidental. Central banks set the economic bomb and lit the fuse. When it explodes, the counterfeiting cycle will start over, even bigger, and repeat until our rulers own everything, creating a new, feudal society.

The views and opinions expressed in Conspiracy Theorist are the views and/or opinions of the author and do not reflect the views and/or opinions of the Dayton City Paper or Dayton City Media and are published strictly for entertainment purposes.

Mark Luedtke is an electrical engineer with a degree from the University of Cincinnati and currently works for a Dayton attorney. He can be reached at MarkLuedtke@DaytonCityPaper.com.

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Reach DCP freelance writer Mark Luedtke at MarkLuedtke@DaytonCityPaper.com.

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