All eyes are on the Federal Reserve, neither federal nor reserve. And the ultimate outcome of the Federal Reserve’s stimulus model and this will be a stagflationary collapse. Not a deflationary collapse, nor an inflationary collapse, but a "stagflationary" collapse.
The reasons for this are very specific—Mass debt creation was being countered with MORE debt creation while many central banks have been simultaneously devaluing their currencies through quantitative easing measures or QEs. On top of that, the US's unique position of relying on the world reserve status of the dollar is diminishing.
Understand this if nothing else. Stock markets are utterly dependent on Fed stimulus and easy money through low interest rate loans. That's the fact, Jack. Without low rates and QEs, corporations cannot engage in stock buybacks. Meaning, the tools for artificially inflating equities are disappearing.
But the Fed will not capitulate. They will continue to hike interest rates regardless of the market reaction. The economy will reach an inflection point where everything that is unsustainable finally starts unraveling.
Naturally, this is compounded by supply chains disruptions, unprecedented high gas prices, rolling electrical blackouts, food shortages, foreclosures and other consequences of economic malfeasance resulting in riots and other mob actions that will become more commonplace, perhaps by mid to late 2023. This will definitely be a problem for us all.
This will coincide with leftist factions, encouraged by globalist foundations, demanding more government intervention. At the same time, conservatives will demand less government interference and less tyranny.
I have no doubt that Joe Biden and the Democrats will seek to enforce price controls on many goods as inflation continues, and there will be a handful of Republicans that will support the tactic but price controls actually lead to a reduction in supply because they remove all profits and thus all incentive for manufacturers to keep producing goods.
What usually happens at that point is government steps in to nationalize manufacturing, but this will be substandard production and at a much lower yield. As far as jobs are concerned, Biden and many mainstream economists constantly applaud the low unemployment rate as proof that the American economy is “strong,” but this is an illusion.
Covid stimulus measures temporarily created a dynamic in which businesses that survived the lockdowns, needed to replace workers that were laid-off or fired for refusing to take the experimental vaccines. Now, the covid checks have stopped, Americans have maxed out their credit cards, and many of those jobs, particularly those in specialized fields such as, aviation and medical nursing, remain vacant.
There is nothing left to keep the system afloat. What's next for our country as it implodes under an economic collapses? Well... I'll leave that to the darkest realms of your imagination. But I will say this. It's going to go mediaeval.
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