The Media Is Ignoring These Two Events Which Could Cause Economic Collapse – Investment Watch

From Brandon Smith
Approach again in 2014 I wrote an article titled False East/West Paradigm Hides the Rise of International Foreign money. I used to be impressed to cowl the problem because of three particular traits which on the time have been regarding.

The primary pattern was the elevated point out inside globalist circles of one thing referred to as the “Nice Reset.” Christine Lagarde who, as the pinnacle of the IMF on the time, was abruptly throwing the phrase round in press interviews and in Q&A occasions on the World Financial Discussion board. This appeared to me to be a rebranding of the “New World Order” agenda which institution elites had been recognized to mutter about in moments of uncommon honesty. It indicated a concerted push in the direction of international centralization within the face of financial and social decline inside nations.

The second pattern which I famous was the shift of Jap nations right into a extra open partnership with international banks, together with the IMF’s inclusion of China within the Particular Drawing Rights basket system, and within the case of Russia, Goldman Sachs changing into deeply entrenched as an “financial adviser” to the Kremlin.

The third pattern was the inexplicable rush by each Chinese language and Russian central banks to purchase up as a lot bodily gold as doable. To my thoughts, the solely motive for China and Russia to purchase up treasured metals was as a hedge in opposition to inflation and foreign money collapse; particularly, as a hedge in opposition to the collapse of the U.S. greenback because the world reserve foreign money. This might be precipitated by the BRICS (Brazil, Russia, India, China and South Africa) nations and others dropping the greenback in international commerce, or by an financial conflict through which utilizing the greenback grew to become untenable for japanese international locations.

It was as if the connection between the East and the globalists had advanced into one thing else – clearly, I believed, Russia and China had been a warning concerning the Nice Reset agenda and each nations have been now positioning to outlive the fallout. This system to destroy the U.S. greenback and diminish the U.S. financial system has been overtly admitted by globalists for a few years. Again in 1988 the Rothschild owned journal The Economist primarily admitted to the plan in an article titled Get Prepared for a World Foreign money.

The article admitted that in roughly 30 years (in different phrases, immediately) there could be a decline within the financial affect of the U.S. and the greenback, resulting in the establishment of a brand new foreign money which they referred to as Phoenix backed by the IMF SDR basket. This agenda has been reiterated by international establishments over and over the previous few a long time and it seems that it’s now being enacted by way of an engineered financial conflict between the East and the West, simply as I predicted.
In 2014 I said:

The destruction of the greenback and the establishment of a world financial forms aren’t actions that may be executed overtly by worldwide financiers. These occasions will coincide with excessive disaster, possible worse than the Nice Melancholy period, with thousands and thousands upon thousands and thousands of individuals dropping the flexibility to financially help themselves and their households…

I’ve warned for fairly a while that the event of East/West tensions could be used as a canopy for a collapse of the greenback system. I’ve warned that among the many American media this collapse could be blamed on an Jap dump of international alternate reserves and treasuries, leading to a world domino-effect ending U.S. world reserve standing. In flip, the worldwide group could be conditioned to see this because the mere bumbling of a spoiled America gone power-mad, moderately than the results of a covert program of financial destabilization. This may result in all-out conflict or a fiscal firestorm that leaves a lot of the world crippled and determined for assist.

However an financial conflict with the East may not be sufficient to undermine the U.S. and herald a brand new world financial system with one world foreign money. The globalists must sabotage our financial system from inside, as effectively.

Whose facet is the Federal Reserve on?

One other occasion which I’ve been warning about for a few years is the inevitable motion by the Federal Reserve to hike rates of interest into financial weak point, inflicting not solely an inversion of the yield curve however the crash of U.S. inventory markets in response.

Right here’s the issue: the Fed has created a Catch-22 situation (I imagine intentionally) through which U.S. markets have grow to be hooked on central financial institution quantitative easing, QE, together with stimulus measures. Clearly these identical easy-money insurance policies additionally set off exponential progress of inflation.

If the Fed was to ever hike charges and take the punch bowl away from the celebration, shares and quite a few sectors of the financial system would crash (we noticed a style of this again in 2018).
However, in the event that they didn’t hike charges and cease asset purchases, then there could be a hyperinflationary catastrophe.

Both approach, the American public loses and the globalists get the disaster they need. As a substitute of fixing both drawback of inflation or deflation, the Fed has conjured a disaster occasion which mixes each – a stagflationary crash.

I outlined this menace intimately final yr in my article The Fed’s Catch-22 Taper Is a Weapon, Not a Coverage Error.

Years again it was arduous to say precisely once we would see the breaking level. Right this moment, it’s apparent that the second has arrived, and never surprisingly the mainstream media is barely reporting on it.

Two main occasions have simply as predicted by my warnings years in the past, and so they might very effectively end in an epic monetary calamity. The general public is being saved in the dead of night on the risks inherent in these newest developments.

Russia declares finish of greenback commerce

The BRICS nations together with Russia, China and India have been shifting away from the U.S. greenback in response to western sanctions over the invasion of Ukraine and the removing of Russia from the SWIFT system. This motion is primarily targeted on Russian oil and fuel exports, as Russia now calls for that anybody shopping for the very important commodities should accomplish that in rubles as a substitute of {dollars} (to this point, the de facto international petro-currency).

The mainstream media has utterly ignored the implications of this tactic on the a part of Russia; not solely that, however they’ve buried any point out of the truth that the Russian central financial institution simply backed the ruble with gold. For this reason the ruble exploded again to life after foreign money markets reopened within the nation after western governments congratulated themselves that the Russian foreign money was stone useless, guaranteeing a cataclysmic financial despair on this planet’s 11^th largest financial system. The latest spike within the ruble’s worth has bewildered U.S. and E.U. economists, but it surely was simple to foretell for those who’ve been monitoring Russian gold purchases for the previous decade.

Because of this the Russian financial system is not about to fold anytime quickly, and now the EU, which is reliant on Russian oil and fuel exports for 40% of their vitality wants, is about to face financial doom until they undergo paying for vitality in rubles (which they gained’t) or discover a alternative supply for fuel and oil (which is inconceivable). Moreover, with Europe on the worldwide market in search of various oil sources, a giant chunk of the oil market shall be rerouted.

What does this imply? Much less oil and fuel to satisfy the demand in different international locations. In different phrases, costs are about to skyrocket greater but once more.

For now, Biden is making an attempt to mood value spikes by releasing strategic petroleum reserves, however that is merely a stopgap. There’s nowhere close to sufficient in U.S. reserves to offset the sheer quantity of oil that Europe wants. I proceed to foretell that fuel costs will rise to at the very least double what they’re immediately throughout the U.S. It’s a easy matter of provide and demand.

Past the problem of driving oil costs vastly greater, the Russian transfer to utterly drop the greenback because the petrocurrency might be the preliminary domino in a sequence that can result in the top of the greenback’s international reserve standing.

As I’ve famous for over a decade, Russia and the BRICS nations have been making ready for this final result for a very long time. China and Russia have solely moved nearer collectively, and this pairing makes excellent sense strategically – Russia has large pure assets and uncooked supplies, whereas China has the biggest manufacturing and exporting base on this planet. India and China collectively maintain 36% of the worldwide inhabitants, greater than sufficient folks to behave as a client basis.

This doesn’t imply the BRICS is not going to see some fiscal ache because of the financial conflict, but it surely’s vital for the western public to grasp this reality: we’re the actual goal of the battle, not Russia. It’s the U.S. and Europe that shall be damage most, with the greenback struggling the worst harm.

The general public is being misled to assume that there isn’t any threat on our facet of the worldwide chess board when the precise reverse is true. A lot of the threat is on our facet.

Federal Reserve tapers whereas the financial system bleeds

The battle with Russia and (for now, solely doubtlessly) China has utterly overshadowed the second huge story in financial information. That’s the Fed’s predictable transfer to lift rates of interest, although they’re doing so throughout a time of financial weak point.

Don’t imagine me? Numbers for retail, dwelling gross sales and manufacturing have been in decline together with GDP. On the identical time, costs on requirements together with meals, vitality and housing prices have continued to extend at a dizzying tempo.

This can be a textbook case of stagflationary collapse.

The timing of the Fed’s charge hikes couldn’t be extra excellent in the event that they have been making an attempt to extend the harm of the crash forward.

We know for a reality the Fed is able to such a cold-blooded act, as a result of we’ve seen it earlier than.

Any scholar of financial historical past can let you know that is precisely what the Fed did within the early Nineteen Thirties, which led to an excellent worse drop in U.S. markets and the extended and torturous deflationary occasion we now know because the Nice Melancholy. Besides this time, we are going to see components of each inflation and deflation concurrently.

Contemplate: the invasion of Ukraine occurred conveniently proper after the latest official experiences of 40-year-record-high spike in U.S. inflation and the Fed’s determination to taper simple cash and hike rates of interest.
Historical past tells us the possible outcomes: a considerable-to-catastrophic drop in shares inside the subsequent few months, together with frozen credit score markets. Similar to in 2008, the whole monetary system will shriek and shudder to a halt. (However hey, this time the bankers have Russia accountable, so all of it works out for them…)

Inventory markets don’t actually concern me all that a lot, given they’re nothing greater than a trailing indicator of financial catastrophe. In different phrases, shares often crash after the collapse has already begun.

However due to the general habit to simple credit score within the company world, the results of the Fed rate of interest hikes shall be like forcing heroin junkies to go cold-turkey. We’ll see the financial variations of nausea, sweating, extreme shakes and muscle spasms, and naturally relentless cravings. The smaller, less-resilient companies who can’t afford lobbyists will die, leaving solely the biggest and coincidentally authorities supported firms to feast on the stays.

Time is brief – put together now

I define all of this not as a result of I imply to frighten folks with doom-and-gloom, however to tell you of actuality. Time is very quick for us to organize ourselves and our family members.

As well as, I hope to shine a highlight on the propaganda and lies which can be being unfold inside the mainstream media. These ongoing campaigns of lies and omissions of inconvenient truths are designed to mislead the general public into considering the approaching crash is all concerning the East vs. West battle. In any case, that’s a a lot simpler promote, isn’t it? We have now to undergo so we are able to overcome our barbaric foes over there! has been an efficient rallying cry for Individuals because the days of our Founding Fathers.

However it’s a lie.

The reality is, this can be a deliberate disaster that has been within the works for many years.

Make no mistake and mark my phrases, in a pair years you’ll be listening to all a few grand plan on the a part of establishments just like the IMF and the WEF to “save” the worldwide financial system utilizing a brand new foreign money system that’s nationally “impartial.” They may provide to peg all currencies to the SDR basket and certain a digital foreign money framework so long as every nation accepts that the globalists are in charge of their economies by default.

The try shall be made. Whether or not or not the globalists succeed is one other matter. It’s as much as us to insulate ourselves from the disaster as a lot as doable. Meaning making ready your self for a new world the place the U.S. greenback is a relic of the previous, and the one actual enduring protected havens would be the identical as they’ve been for the final 5,000 years: bodily gold and silver. We should be able to oppose the brand new globalist system with all the things we are able to muster.

We can not let the puppeteers deprive us of our freedom and our future.

Brandon Smith has been another financial and geopolitical analyst since 2006 and is the founding father of Alt-Market.com.

The views and opinions expressed on this article are these of the writer and don’t essentially replicate these of Birch Gold Group.