Financial, Economic and Social Mood Update (April 2, 2023)
Inflation (or more accurately: the loss of purchasing power) in North America, Europe, Australia and other countries tied to the west is in no way “transitory” – on the contrary, it looks to be permanent and getting worse by the day. In your own lives, look at the prices in the grocery store, for your monthly utility bills and for insurance – especially something like homeowner’s insurance. All of these prices have literally skyrocketed over the past few years.
The political & the financial system power structure in the western countries appears to be collapsing by the day as well, driven largely by an insane desire to promote conflict with and in much of the rest of the world. The power structure “on the other side” is becoming ever more independent from the west, specifically from the post-World War 2 hegemony of the American Dollar. The illegitimate Biden regime in Washington, D.C. is now presiding over the collapse of the American Empire which has ruled the world since 1945.
This “other side” power structure can be seen emerging most clearly in institutions such as the “BRICS” countries (these are Brazil, Russia, India, China and South Africa), in the SCO (the “Shanghai Cooperation Organization” which includes almost all of Asia) and in the Chinese BRI (“Belt and Road Initiative”). Note – BRICS actually includes the 5 main founding nations plus 3 applicant nations (Algeria, Argentina and Iran), 5 more nations which have officially expressed interest in applying for membership (Afghanistan, Egypt, Indonesia, Saudi Arabia and Turkey) and finally 6 additional nations now in official dialogue for BRICS expansion (Kazakhstan, Nicaragua, Nigeria, Senegal, Thailand and the United Arab Emirates).
The Belt and Road Initiative includes most of Asia, South America, Oceania, Australia, Europe, Canada and about half of Africa. The goal of the BRI is to tie the world to mainland China via infrastructure projects, economy and finance. The countries partaking in these initiatives are gradually moving away from the US Dollar as a medium of exchange and they are also unloading ever more of their holdings in the massive USD $31 TRILLION US national debt.
In a nutshell, this means that the American Dollar will continue to lose ever more of its purchasing power, which translates into an ever declining standard of living in the USA. The decline of the US Dollar is one reason I believe that interest rates & bond yields will not decline soon. One asset that is not “trash” is cash – be this in the USA or the rest of the world. Real estate, bonds (i.e. debt), tangible goods (things you can “touch” such as automobiles, etc.), precious metals (the best known one being gold bullion), corporate stocks and digital electronic cryptocurrencies all remain depressed and will likely remain depressed for many years to come.
The middle class is already almost gone – think about the fact that 80 percent of the American population already depends upon highly subsidized government healthcare through the likes of Medicare, Medicaid, Medi-Cal and Obamacare, and that about half of the US population no longer files an annual income tax return.
The modern day United States of America is experiencing something similar to the “Fall of Rome” which has happened to all formerly great global powers in the past. Think about what happened to the United Kingdom (England) especially after the fall of the former British Empire after World War 2 when American global hegemony replaced British hegemony. The purchasing power of the once mighty British Pound has collapsed over the course of hundreds of years, and the same thing is happening to the American Dollar today. The British Pound Sterling emerged between A.D. 600 and 800 (more than 1,400 years ago) and the Bank of England was the world’s first modern “central bank” which practiced “money printing” (in the form of modern credit inflation). The Pound has lost more than 96 percent of its purchasing power since 1945 alone according to the British House of Commons Library. The Pound has lost 99.3 percent of its purchasing power since 1751 when the British House of Commons Library began keeping annual inflation statistics.
The corrupt mainstream media (owned & controlled by the likes of the WEF World Economic Forum through major investment firms such as Blackrock & Vanguard) does not report this, but there are now massive popular demonstrations in many countries where governments are not legitimate. These countries include France, Israel, the United Kingdom, Portugal, Greece, Moldova, Nigeria, Venezuela and South Korea. Massive strikes have brought Germany to a halt. The European economies are now much worse off compared to the USA due to the American-led boycott of & war against Russia. Most of the European countries are now desperately trying to restart economic trade with China, because they are in dire need of the raw materials & natural resources from Asia, Russia & beyond. The Battle of Bakhmut in the Ukraine has turned into NATO’s Stalingrad. After Russia mops this up & after the spring rains cease (most roads are not paved in this part of the world are thus muddy beyond description), Russia will march west to neutralize what remains of the Ukraine. Napoleon Bonaparte was stupid enough to try to invade Russia in 1812. Adolf Hitler repeated the same mistake in 1941. NATO repeated this mistake yet again through its proxy the Ukraine in 2014/2022……………………..the end result will be no different.
Our entire global economy & society reached a “peak” in optimism & nominal prices at the end of 2021. This speech by Robert Prechter of Elliott Wave International illustrates this clearly: https://my.elliottwave.com/products/club/event.aspx?guid=d3a36c43-8759-4d48-b7ba-37a69f8c2e66. All of human society – be it the economy or mass human social mood, is now in the throes of a massive collapse. Here is yet another pertinent article by Elliott Wave International backing this up: https://www.elliottwave.com/en/Articles/2023/03/14/17/29/3-Stock-Indexes-One-Message.
