The coming economic crisis and war attempts to keep interest rates low (buy gold & silver !)


The bubble of the decade is about to burst. The “everything bubble” is in fact propped up by military spending (which benefitted hugely from easy credit and thus public debt) as well as housing and Chinese debt as well is involved.

Here is a mathematical model I have found (through Daniel Lacalle’s Twitter, he’s among the growing crowd of observators pointing to the coming economic crisis)

JOLTS model.JPG

More on debt, private (corporate) :

fredgraph.png

What has to be understood is : one of the main motors of public debt is war, esp. in the USA.

Another way to understand that is the situation between North and South Korea : successful negotiations reduce the prospects of war and thus the need for public debt, leading to an increase in interest rates. One meeting between Kim Jong il and the South happened in 2000 (then : Internet bubble burst), another in 2007 (then 2008 crisis started). What’s happened a few days ago ? Peace treaty in preparation. Everytime : less need for low interest rates -> spark a change in Fed policy which burst the bubble that had formed because of the need to pay for the anterior war. After 2000 the Iraq war propped a bigger bubble through the same use of low interest rates to pay for debt. The Iraq war is responsible for the 2008 crisis.

So how to interpret attempts at going more at war in Syria ? very easily. It should also have its share in Israeli warmongering against Iran. (I have pointed out that Iran already did nuclear tests underground, involving even megatonic devices)

The use of depleted uranium to keep jihadism alive by oppressing all the people in bombed countries for the years to come (it is an eternal pollution used since Vietnam) is also a very good assets for future bubbles. (see of course depleteduranium.org on this)

Wars are obviously the best way to convince central bankers of the need to keep interest rates low. Let it make the bubble of public debt that has never been truly deflated. Let politicians gain money from weapons contracts where corruption is rife and easy (just ask the company for checks and services in exchange for a higher buying price).

Non-interventionism : in markets, in foreign countries, in the lives of people. Let us have the money we want, stop messing with crypto currency platforms. How it is ABSOLUTELY A FANTASTIC EASY RIDE to buy call warrants on companies that will benefit from wars ? How it is SO MUCH A WAY TO ENRICH YOURSELF if you are in the inner circles of power ?