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Get Ready For (Fraudulent) Higher U.S. Interest Rates
The U.S. government is already bankrupt. This is old news to anyone who has been following the number-crunching of individuals such as former Reagan economic advisor, Professor Lawrence Kotlikoff. The U.S. government, the greatest debtor in the history of the world, claims that it is about to (finally) raise interest rates, which have been permanently/fraudulently frozen at 0% for now over 6 years.
So, what happens when an already-bankrupt debtor chooses to pay higher interest rates on that debt? Ka-boom! But not in the Wonderland Matrix. In this fantasy-realm of nonsensical, economic mythology, literally anything is possible – including the impossible.
Beginning in 2009; the Federal Reserve began a policy of openly and publically pumping-up U.S. financial markets and U.S. equity markets with the most-extreme explosion of money-printing ever seen since the creation of the U.S. dollar, evidenced by a chart which regular readers have seen ad nauseum.
As has been noted in many previous commentaries; mathematics tells us that the ultra-extreme economic function expressed by this insane chart can only end in two ways (as always happens with such extreme, exponential curves): explosion or implosion.
“Explosion” (in this context) simply means hyperinflation, the U.S. dollar beginning a hyperinflation spiral, and then quickly plunging to zero. This is what we would have already seen, if the One Bank was not manipulating all of these (paper) currencies, all of the time. Fundamentally; the U.S. dollar is already completely worthless, based upon three, different, fundamental metrics.
But there is a second way in which the exponential money-printing of the Federal Reserve could end: in implosion. Obviously if explosion would/must occur from continuing the money-printing at that extreme/insane rate, then implosion would/must occur from the opposite: any attempt to reduce that money-printing.
We saw this, in 2013. For six months, professional liar B.S. Bernanke stood in front of a microphone every day promising that “tapering” was coming soon, just as this Boy Who Cried Wolf had been promising his “exit strategy” for the 5 years of lying which preceded that.
What happened? In simply talking about tapering; interest rates on U.S. government debt doubled, costing the crippled U.S. economy $100’s of billions in higher interest payments alone. This caused Bernanke to do a complete about-face in September of 2013, and (shamelessly) back-track on his promise: there would be no “tapering”.
But flash ahead to the end of 2014, and what are we told has happened? The lying puppet who replaced Bernanke, Janet Yellen, claims to have finished “tapering” all of the “QE” money-printing. She claims to have finished what B.S. Bernanke (and the chart above) insist is impossible to even begin: reducing the money-printing.
Of course in the real world; there has been no “tapering” of any kind. Every dollar of “QE” which was supposedly eliminated has been replaced by simple counterfeiting: creating new “U.S. dollars”, but not acknowledging the creation of these new $TRILLIONS.
This is also an old game for the Fed, which has been mass-counterfeiting U.S. currency since (at least) as early as 2009. This was when the U.S. Treasury Department turned the U.S. “Treasuries market” into (literally) a “blackmarket” where it is no longer possible to see precisely who is “buying” all of these worthless bonds – at the highest prices in history.
Obviously any form of “money” (including counterfeit money) can be used in a blackmarket. As explained in several previous commentaries, this is the only, possible explanation as to how the U.S. has delayed formal debt-default. In 2009; the supply of U.S. new debt tripled, while (thanks to the Crash of ’08) all the former “buyers” (i.e. demand) for that debt dried-up. Triple the supply, and no demand = debt-default.
But there was no debt-default for the U.S. In fact, despite having no visible buyers for its debt, and already being fundamentally bankrupt; interest rates on U.S. debt plunged dramatically – as the U.S. government insisted (and continues to exist) that there are buyers “lining up” to soak-up these endless $trillions of debt. It’s not possible, unless we assume that these “buyers” are using counterfeit money, supplied by the Fed itself.
How else could tiny Belgium (supposedly) “buy” over $140 billion of Treasuries in just three months, an amount equal to 30% of its national GDP? What we are supposed to believe is that for three months, the government of Belgium was “buying” U.S. debt (for absolutely no reason, whatsoever) at a rate greater than the entire output of is economy. Obviously no sane (or honest) government would devote more than 100% of the entire economic output of their economy to soaking-up worthless U.S. bonds – even for ‘only’ a three-month period.
What we saw, what was officially reported by the U.S. government was impossible…unless Belgium’s government was secretly provided with a large stack of funny-money, to fund all that bond-buying. It is in such a world of black markets and shameless/blatant frauds that we now hear all of the outlets of the Corporate media proclaiming that higher U.S. interest rates are on the way.
Simply do an internet search of the phrase “Federal Reserve about to raise interest rates”, and one will see all of the parrots of this propaganda machine squawking in unison. It’s not possible for this bankrupt government to raise interest rates, but (as with “tapering”) the Zombies are told – unequivocally – that the impossible is about to occur, again.
So given that the U.S. government can’t raise interest rates (but is ready/willing/able to perpetrate any form of financial fraud imaginable); what will actually be happening when the U.S. government pretends to raise its official interest rate, and thus the rate-of-interest it supposedly pays on (now) an $18 TRILLION mountain-of-debt?
What will happen is what happens every time anything changes in “the New Normal”. Life will get much worse for everyone, everyone except the Crime Syndicate which rules us, and the Fat Cats it represents. Everyone except the U.S. government will pay higher interest on their debts, once the U.S. government pretends to raise its own interest rate.
Because the Fat Cats at the top have been illegitimately enriched at the fastest rate in history over (in particular) the past 20 years; they have no debts. They are all debt-collectors, thus higher interest rates only make the Fat fatter.
For everyone else; it will be higher interest on their mortgages, higher interest on their credit cards, higher interest on their student loans, etc., etc., etc. But not the U.S. government. It will simply pay whatever it can afford to its own Debt-Collector, the One Bank.
But wait, interrupt skeptics, governments much account for monies coming in and going out. Not the U.S. government. Not in the Wonderland Matrix. It simply makes up numbers, and calls the collection of lies “the U.S. budget”. It is the U.S. government itself which has proven the level of fraud here.
Back when the United States still paid lip-service to the Rule of Law; the Treasury Department was legally required to do a once-a-year calculation of the real U.S. “deficit” (using GAAP accounting), as compared with the fiction: the “official deficit” announced (and supposedly calculated) in the annual Budget.
In the years of the Bush regime; the “official deficit” represented as little as 5% of the actual increase in indebtedness. It is not possible to “massage” numbers in order to reduce a calculation by 95%. One can only engage in such egregious lying through large/clumsy frauds, or out-and-out fabrications.
Not only could “the U.S. budget” not pass the scrutiny of any (honest) auditor, it couldn’t meet the scrutiny of the auditor’s pet monkey. It is nothing but an exercise in low-grade fiction writing. In such an absurdly falsified document, “pretending” to pay higher interest rates on its debts would merely be one of many gigantic frauds.
Get ready for “higher U.S. interest rates”, for all American readers, and very likely all readers, as this faux-increase in interest rates will likely ripple through the entire Western economic system. While the “increase” in rates will be purely illusory for the corrupt, puppet-government of the U.S.; it will be all too-real for all of us Little People.
When these higher rates have spread throughout our economies, don’t expect the U.S. government to report “higher deficits”. It will either report no change in its rate-of-increase in its indebtedness, or even a decrease in its “official deficits”.
In the Wonderland Matrix, not only is the “impossible” possible, it is a fait accompli. The propaganda machine (or the government itself) need merely “announce” something, and then (we’re told) it always happens, just as promised.
It happened when the U.S. government claimed to be able to “sell” three times as much debt, even though there were no buyers. It happened when the U.S. government claimed to “taper” its hyperinflationary money-printing, while the most-extreme bubbles in U.S. equity markets in 85 years not only survived, they continue to bubble higher.
We call it the Wonderland Matrix. The propaganda machine calls it “the New Normal”. The impossible is possible, again and again and again. Life always gets better for those on top. Life always gets worse for everyone else. We can get used to it, or we can become citizens again – and do something about it.
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Plucking the Chicken
Chicken buys the farm on credit
Chicken gives the bank eggs to pay down the farm
When the Chicken is ready, pluck the chiken. Take back the farm
Ease up. Repeat
The key is waiting until the Chicken is out of eggs, and the feathers are grown back. No use plucking a naked chicken
I forgot to add the part about kicking the naked Chicken out into the snow to give it an incentive to start producing again
No, short term interest rates will go negative while there's an interim rate rise in long-dated treasuries, reversing the twist when warranted by the markets themselves. Tha's called a steepening yield curve.
How does this affect bond yields? How do you raise rates for just some folks?
Lots of people are paying high interest rates on their homes, credit cards, student loans, cars and phones in the 7-29% range already, the people that loaned them the money borrowed it for nothing.
Audit the fed
As long as the money goes into the pockets of the 'right' people everything will be just peachy.....
Interest rates go up, Kablooey!