Are We on the Verge of Economic Armageddon?
Author: 655464
9/13/2021
I would like to preface this “paper” by saying I am not here to spread fear or to worry people about what is to come. In fact, everything I write here could be completely wrong. I am no one special in terms of being “in the know.” I went to college and focused on economics at a top 5% accredited business school in the world. My final year I dropped out before getting my degree after being offered a job that paid me well enough. I have continued to follow world economics ever since and that is how I stumbled into the info I am about to share. I am just someone who likes numbers and the flow of money. This paper is not meant to be academic; it is meant to inform. I did my best to make this paper easy to understand regardless of education or knowledge. Lastly, I will keep this as politically neutral as possible. The point of this is to warn people and to be prepared, not to argue.
Story time…
I am worried that we are on the brink of complete economic collapse. This worry has been in the back of my brain ever since the start of the pandemic, as I am sure it has been for many of you. Even though that thought has always been there, it has never really surfaced in the past. It was easily suppressed with the thoughts of “Our politicians and world leaders would never let this happen, let alone during a pandemic.” Sadly, I am starting to think my optimism is misplaced.
Some of you may know, most probably do not, in 2019 President Trump suspended the debt ceiling. This suspension was set to last for two years. Nothing crazy here, pretty common practice. However, that suspension ended in July of 2021. As we all know, since that suspension has taken place spending has gone through the roof. This is no one’s fault. Our government has done their best to help keep food on the table and get aid to people amid a global pandemic. Doing their best comes at a cost, however. This cost is equivalent to $5 trillion US dollars over the past 14 months. (see below)
In 14 months, the US debt increased by roughly 21.74%. Although this is an alarmingly fast rate, typically it would be nothing to worry about… except for the fact that the debt ceiling was suspended in 2019 because there was already a worry of government shutdown. Potentially even a default on debt, albeit at that time, that would have been extremely unlikely.
As we continue with the topic of debt, I would now like to talk a bit about the World Bank. The World Bank has views on what they typically consider to be a safe amount of debt. They measure this through your Debt-to-GDP ratio. For them, anything over 77% can result poorly for an economy.
Countries routinely go over this 77% mark and honestly it does play a lot into each individual country and how they operate. This 77% is not an end all be all but it gives us a point of reference. That in mind, let’s go ahead and look at the pace the US has been on the past few years.
Prior to 2019 we have been consistently hovering around the 105% mark for Debt-to-GDP. From what I gather that is not too alarming for the US. Not ideal, but still not too crazy. Considering the numbers prior to 2019 it makes sense why our national debt just seems to keep going up. We are spending more every year than we make, Econ 101. After 2019, things start to fall apart and quick. In 1 year, we see a spike of about 20% followed by another jump of 5% (which I expect is much higher, but we don’t have that data yet nor do I think we would be shown the real numbers.) I don’t know how to articulate this to you, but that is not good. Don’t just take my word for it, go check out the World Economic Form to check out the IMF’s thoughts…. Don’t worry, Ill save you some time. See Below.
As the IMF put it “The record is not encouraging” and I would have to agree completely. I think as we continue on to our next parts of this paper you may agree as well.
Earlier this week, Wednesday Sept 8th, Treasury Sec. Janet Yellen gave a speech. A speech far more people should be worried about and talking about. In fact, I don’t see it on the news or online. Janet Yellen warned to congress that the United States is on track to default on their debt sometime between October and mid-November. Again, typically this is not that big of a worry. The Government will just raise the imaginary debt ceiling or suspend it again, Right? Nope. Wrong. Wrong as f*ck.
“So, you are saying the United States is going to intentionally default on its debt? That will never happen. It would ruin the US dollar and bring down the world economy with it.”
Unfortunately, that is exactly what I am saying. To begin to understand why they would do this we need to go back and look at our history. Has there ever been a time before when the United States has Defaulted on their debt? The short answer would be “Not really”, but it is not a solid no.
This blurb is from BBC. There is one specific spot that I chose to highlight there. That is the year 1933. This was not a true default of debt and honestly, I couldn’t tell you what would make it a true one or not. Regardless, the facts remain that it happened. Why did it happen though? Yes, we were in the middle of the great depression but that was not why the US defaulted. They defaulted for one simple reason. They needed to change the way their currency works. That brings us to the Gold Reserve Act. I would try to explain it but as I stated in the preface of this paper, I am a nobody. Im not going to pretend to give you the technical of every aspect. Just laying out the big picture and letting you decide from there. See Below.
Perfect, now we learned about the Gold Reserve Act of 1934. Now we know the US Defaulted on debt in 1933. This was not necessarily super bad because they were already in a great depression. We needed to do something to bring value back to the USD.
By now you’re probably thinking “Gee, thanks for the history lesson this doesn’t prove anything.” Yeah, you’re right. Just bear with me. It is sum of this information that changes things.
So, we learned the Dollar lost all its value back then and the US needed to change that. They did a pretty good job of taking care of that given the fact we have been the world’s foremost superpower basically since that change. Let’s shift back to the 21st century now. It doesn’t take a genius economist to tell you that inflation is running rampant right now. The Dollar is once again losing all its value. If you can’t see that happening all around you currently then honestly, save yourself some time and quit reading this paper. IMO you would have to be blind, deaf, and living under a rock to not see inflation happening rapidly in front of us. For arguments sake and for the analytic people I will give some examples for you.
Below you will see what our average amount of money we print daily typically would have been (prior to the last 2 years or so). The US prints roughly $541 Million a day which equates to about $204B a year.
Honestly, I can’t say if that is good or bad but given that we have been doing that for a while, It doesn’t seem to be too bad… Especially when you compare that with what I am about to show you next.
Now let’s look at how much money is being printed as of late.
My lord, if reading that doesn’t scare the shit out of you, nothing in this article will. Just for the lazy folk reading this I will give you a TLDR:
Jan 2020 Fed Res = $4 Trillion.
Jan 2021 Fed Res = $6.7 Trillion.
For most people it is quite hard to visualize what $1 trillion dollars looks like, let me help you.
1 Million seconds added up equals about 11.5 days.
1 Billion seconds equals about 32 years.
1 Trillion seconds equals about 32,000 years.
Are you F**king kidding me? Within 12 months the amount of money increased by $2.7 trillion. That means in 1 year that money increased by 67.5%... which is equivalent to 40% of the current money in circulation has been printed in the last 12 months. (I am not going to explain why this is bad. If you’re reading this, you should understand why currency must have something backing it for value.) This is the same mistake the Germans made while trying to repay debt after World War 1. Below you will see an example of 2 pictures. First being a picture of a German attempting to buy something. You can see she has a literal basket of money with her. She was not rich. That’s how much money you had to carry to buy simple things. Below that you will see another hyperinflation example from Zimbabwe.
Let’s get back to the issue of our current national debt. We need to ask ourselves the question “How is our national debt issued?” Let me tell you. Our national debt is issued via selling bonds to outside entities and individuals. A Bond is essentially 1000s of debts rolled into one massive debt that someone can buy and then collect the payments on interest on said bond. For example: the housing market collapse was caused by bad bonds. People who had no credit, no money down, nothing. Just absolute junk in terms of mortgages. A funny thing happens though when you lump them all together. All of a sudden when 1000s of dog shit loans and mortgages get added up into a bond, that bond becomes safe…? In Hindsight, we now all know that was stupid and caused a crash of epic proportions. Great, now we are all caught up on what a bond is. Honestly all that financial and legal jargon doesn’t matter to much. What does matter is THE UNITED STATES ISSUES BONDS IN US DOLLARS. That is very important for what is about to come.
Before we go any further on why these bonds are so important, I want to turn our attention to current events that are happening around us that I am sure you have not heard of. As stated near the start of this paper, the US is on track to default on their debt sometime in Mid-Oct to Mid-Nov. Congress has a deadline of Sept 30th to get this stuff figured out. We still have hope they will get it figured out and all this crap I’ve put on paper for you will become worthless. However, hope gets us nowhere, so I decided to start looking around at what else is happening in world economics with a similar timeframe.
Fed officials have bought millions of shares of some of the largest companies out there. Majority of their buying happened after the housing crisis in 2008 with some exceptions. Since they have started accumulating, they have not had a sell off. Just have been letting it build for over a decade.
Announced last week, Fed officials have said they will be selling off ALL of their positions by.. SEPT. 30thspecifically due to a “Conflict of Interest.”
Let me put this simple for you
Billionaires don’t give a flying F*** about a conflict of interest. If that was the case, we would not have had the housing market crash or basically any other crash for that matter. Their interest is their own. If they have a conflict of interest right now… the only conflict would be them not wanting to lose everything in the upcoming crash.
If that does not strike home for you, let’s look at how the DOW has been performing since they started unleashing their shares.
Must be another coincidence, right? I would say not. You must understand how massive the holdings are that are being dumped. They have the power to move the entire market and they will continue to sell at least through Sept 30th.
If that wasn’t enough for flip the proverbial scale for you, let’s look at Evergrande. The 2nd largest holding institution in China. They are already feeling the pain. Yes, Yes, Yes, I know this article is about the US and not China but ask yourself who is the largest holder of US Debt? Yeah, that right, Its China. How are the majority of Bonds issued? Yeah, in USD. Are you catching what I am throwing?
What else is happening in the world that you are not seeing currently? I will show you.
A good ole game of “He Said She Said”
Do you remember earlier when I said that they will intentionally not increase the debt ceiling? Well, they are already laying the groundwork. You have articles saying the Democrats are refusing. You will see articles saying the Republicans are refusing. No matter how hard I looked I could not find anything concrete on what anyone’s plan is to fix this debt issue. All that we can find is media spreading sh*t to both sides of the aisle from the other side of the aisle.
This is typical for American politics. It is always Red v Blue and nothing else. No one can have a serious convo or be open to ideas anymore. Where this is not typical for American politics is the fact that we are talking about imploding the US Dollar, the US Economy, and in turn the World Economy. I don’t care which side you are on politically, but this is beyond messed up. As a country we are either so divided that we can’t come together on a way to stop the worst crash we have ever seen, or we are intentionally crashing the world economy. I am not sure which is worse but as I have said before. I hope I am very wrong about this.
If I had to make a guess you probably did not see this either, did you? Or maybe you did but just thought it was a bunch of nonsense because you don’t understand the Technology.
That’s right, good ole Digital Currencies. It has been in front of your face for years now. Small messages here and there, just something to put a thought in your brain. Recently, it has been heating up rapidly. As you can see these are all fairly new posts. Feel free to do your own research if you don’t believe me.
FINALLY. We have made through most of the learning, odd facts, and random events. Now we can tie this all together.
Back to where we left off on the Bonds. Remember, our debt is given out in the form of Bonds that are issued in our native currency, USD. So, what happens if the US defaults on debt? Catastrophe.
I do not like the sounds of any of that. I don’t think a single person does. One specific spot though to look at would be “Not only that, but the US Dollar would lose its place in the list of global world currencies.”
For every individual in the US this would be an absolute nightmare. The Dollar becomes worthless. The economy completely crashes. You lose everything.
There is a scenario however, that this could be very helpful to an entity. That entity would be:
The United States Government.
- The United States government has $28 Trillion of debt.
- That debt is in the Form of Bonds issued in USD.
- If the US Defaults on its debt the USD is worth nothing.
- If the US Dollar is worth nothing, $28 Trillion worth of debt becomes worthless.
- US forces hyperinflation on USD (already started) prints out a $28,000,000,000,000 bill (see Zimbabwe and 1921 Germany)
- Debt becomes paid in full, from a worthless piece of paper printed with no backing.
- United States find a new currency or way to back it. (crypto currency)
- United States makes it illegal to own whatever their next currency is. (Gold Reserve act 1934)
For example: SEC v. Ripple (ironically happening since January 2021)
- United States props price up of next currency. Brings themselves out of the crippling depression just experience by the intentional default.
- United States is once again the top World Superpower effectively holding all the money.
This is the scenario that keeps playing over and over in my head. I can’t stop thinking about it. I worry for all my friends, my family, my fellow Americans and frankly, the whole world. I plan on releasing this document and keeping myself anonymous. If I were to talk about this to people, I would be labeled as a lunatic and crazy so that is why I will be keeping my name off this.
Please, someone prove me wrong. I want to be wrong.
I do not know how you are supposed to protect yourself against something of this magnitude, but I will tell you what I will be doing. Make your own choices from there.
I will be investing in commodities, objects that have value:
- Precious Metals (Physical chunks of metal. Not stock holdings)
- Raw Materials (Oil, steel, aluminum, wood)
- Crypto Currencies (I’m not going to shill you a coin, this isn’t investment advice. Do research.)
- Food/water/living supplies. Anything you need to keep yourself alive. (this isn’t an investment but if the world economy goes down, so does shipping, manufacturing, and producing.)
One of my clients is a former bonds trader for Goldman Sachs and many other major players on wall street (he will remain unnamed). Prior to writing this I ran my ideas past him and said “Does this make sense and is it possible? History has a way of repeating itself so I could see it happening.” He replied “Well, I don’t think history repeats itself… but I do think history can echo. It sounds like I can hear the echo starting.”
I would also like to draw attention to times in the past when the economy has crashed. There has always been 1 major detail of when crashes occur that I have noticed. I’ll let you see that detail for yourself in the pictures below.
Great Depression:
Black Monday:
Housing Market:
Other smaller crashes:
As you can see, crashes for our economy almost universally happen in October. When is the US set to default on their debt? Sometime around Mid-October.
I will not lie, finding a way to present all this info in a way that makes sense is no easy task. For days now I have been trying to find the words to articulate everything that I have read and stumbled upon, but I found that there is no way to say this out loud without sounding like a deep web conspiracy theorist. The best I can do is put it all on paper in front of you. I cannot learn this information for you. I cannot understand this information for you. All I can do is give you the breadcrumbs and hope that you care enough to understand it yourself. There is no smoking gun piece of info that will prove this theory and there never will be. It is not a single piece of info, but the sum of everything I shared that created this worry for me.
There is far more info out there for you to find. Think of this as a starting point and continue to dig deeper. Everything I have shared is available online for free. There is no special place to look, you just must be willing to read, understand and connect the dots. If you are looking for a place to start, I have a single recommendation for you. There is a man named Klaus Schwab. He is the founder of the WEF (World Economic Form). In the early summer of 2020 Klaus wrote a book. That book is called The Great Reset. If there is a place to start… I would start there.
My time here has come to an end. At the very least, I hope this “paper” allows you to see past the bullsh*t we are being fed. I pray that I am wrong. I pray for my friends and family to make it through any tough times we may see. I pray reading this helps.
May God bless you all,
655464
Update 1:
09/22/2021
In the past week or so since I originally wrote this “paper” there have been a few newsworthy events that I feel should be added. I will go in chronological order because I feel it shows how rapidly we are approaching my “Armageddon” timeline. As always, take everything I say with a grain of salt and do your own research. I hate sounding like a doomsday crier, but I feel this is information everyone should be paying attention to and doing their own critical thinking on.
We will start things off with Monday Sept. 20th. Part of what we talked about earlier is the US forcing hyper inflation to pay off debts. (Imagine printing off $1 Trillion Bill.) See below.
Well… There we have it. There are actually serious talks being made right now about minting a $1 Trillion platinum coin. As I am sure everyone reading this knows, you can’t just mint money out of thin air and expect not to have serious consequences, let alone this amount of money. Let’s do some math so we can further understand what is being proposed here.
- Fed currently has about $6.7 Trillion. (This is already alarming considering in 14 months we have increased by $2.7 trillion.)
- 1 / 6.7 = 0.1493 or 14.93%
Minting that one single coin alone will increase our total amount of minted currency by 14.93%. That becomes a major issue when you are not adding value to back that currency that is being printed. You would effectively be diluting the value of the dollar by 15% in one single mint. That sounds bad enough, now imagine them doing that 28 more times to wipe the $29 Trillion in debt.
The biggest objection I have always had to them doing something like this is that they would basically be plunging us all into extreme poverty. That would include not only the U.S. but the entire world. Unfortunately, it seems that may be the plan. Don’t take my word for it, take it from Klaus Schwab, the founder of the World Economic Form. See Below.
By the year 2030: “You’ll own nothing. And you’ll be happy.”
This tweet from Feb 2017 is still available to view. I specifically linked it because if you don’t see it for yourself, more than likely you will not believe it.
I hate that statement with the last fiber of my being. I couldn’t even imagine how this could be a thought to someone or how a government would consider doing this until recently. For me, this draws some odd parallels to what we are seeing across the globe now with “Vaccine Mandates.”
This is simply Big Brother saying, “Trust us, we are the Government, and we know what is best for you.”
As Ronald Regan once said, “The 9 most terrifying words in the English language are: I’m from the Government and I’m here to help.”
Next, I would like to move on to give updates on where congress is at with our debt ceiling crisis. I won’t go into this info because it’s pretty darn self-explanatory once you read the headlines. As always, all this info is available online.
It seems that the GOP may be dead set on having the US default on its debt. You can find a ton of articles about this, these are just a few of the top ones. These articles are from today, Sept 22nd but it was first announced that Mitch McConnell would vote to default on Monday, Sept 20th.
My next update has to do with Federal Reserve Chairman, Jerome Powell. Today he is addressing the nation about inflation and potential debt default. At the time of this writing, he is still currently talking so I imagine I will have more to add in the coming days. For now, I want to focus on something that he said during his speech which everyone should be paying attention to. See Below.
They are specifically warning about this exact scenario I have been painting for you guys. I would expect if we were in a situation like we are in now, that the Fed would address this and speak to everyone. I am not saying that this if proof that it is coming but this is saying you better open your eyes and pay attention.
Chairman Powell has finished his speech for today and there was some crucial information that was released right at the end. In my eyes it is a bomb. See Below.
This confirms one of my former statements about the US considering a switch over to a digitally backed currency. Honestly, I think this is inevitable but what is super interesting to me is the bottom highlighted spot here. He is talking about issuing a CBDC (Central Bank of Digital Currency.) This would be needed for the advent of a digital currency. What makes this far more interesting is what happened this morning for the first time.
It was announced this morning that Bhutan, a country on the southern border of China, will be launching a CBDC. This is crazy news in its own right. It has been something that has been talked about between countries for a while. I personally think this is more of a “when” not “if” for every major country in the world. However, it is not the fact that a CBDC is being established that caught my attention. What caught my attention is who would be assisting them with establishing the CBDC. See Below.
That is right, Ripple is helping them establish the CBDC. Who is Ripple? Great question, I have only mentioned them one time and that was in a brief anecdote.
Ripple happens to be the crypto company currently being sued by the SEC. Coincidence again, right?
(I don’t believe in coincidences)
*Disclaimer: I am not telling you to invest in Ripple or their Crypto. This is not to shill you a cryptocurrency. This is not financial advice. Do research and determine yourself. *
In case you haven’t heard of Ripple and their battle vs. the SEC, I will give you a very brief run down. The SEC is suing Ripple for security fraud. They are saying their digital currency is not in fact a currency but is actually a security contract (Stocks, bonds, investments). The case has been very vague and has received almost no media time until recently even though the case has been ongoing since January 2021. The past week or so CNBC and Fox have slowly been putting out some of the first stories regarding this lawsuit. A lot of smoke and mirrors.
EVERY SINGLE country in the world regards Ripple/XRP as a currency with the exception of one.
The United States of America.
Now, I want you to ask yourself. How would a company literally assist with putting together a Central Bank for a country, if what they offer is not a currency?
At this time, I have nothing else to add. As more relevant info presents itself, I will add to the paper. For now, stay informed and stay safe.
God Bless,
655464
Here is a list of sources that I used for the images in this paper as well as some of the information.
Read this^^^^
9/22 Below