STAFF NEWS & ANALYSIS
The US ‘Recovers’ While a Global Financial Catastrophe Looms
By Daily Bell Staff - September 19, 2016

We Just Got Some Fantastic Economic News About Middle-Class Families … America’s long, slow, and frustrating economic recovery hit an important milestone last year, as middle-class incomes rose for the first time since the Great Recession. According to the latest annual analysis from the Census Bureau, real median household incomes jumped by a surprisingly strong 5.2 percent in 2015, which as the White House Council of Economic Advisers notes, is the fastest rate on record. The latest yearly increase occurred in 2007, before the housing bust and financial crisis put us all through an economic thresher. -Slate

Slate is ecstatic over the latest economic news, believing that the US is on the road to recovery. This is incorrect, though. The US and the world are on the way to the largest economic disaster ever faced.

The scourge of central banking has homogenized the world’s economies. This is not merely speculation. The world’s top banks meet regularly in Switzerland at the offices of the Bank for International Settlements

The BIS is supposed to “coordinate” the policies of major central banks.

If one steps back and looks at it dispassionately, wonderment ensues. Central banks are state mandated monopolies. They are kept in place by force.

And these monopolies meet regularly with the BIS for purposes of further coordination. Regional and national monopolies, in other words, are harmonized – monopolized – by the BIS.

The result of state monopolies is always the same. They lead to disaster. Since central banks are the most powerful economic entities in the world, the disaster, when it comes, will create a catastrophe unlike any other.

This is not just our perspective. No less a luminary than William White, a former top executive with the BIS, stated earlier this year that the world’s indebtedness was irreversible.  Nothing less than a global jubilee will suffice to right the global economy.

White didn’t blame central banking per se for the growing global insolvency, but he could have.

Those who set up the Fed certainly knew of its capacity for disaster. Back in the 1930, the Fed expanded its balance sheet by 300%, according to recent historical report provided by Gains, Pains and Capital. More:

On a relative basis, the Fed’s balance sheet grew from 5% of US GDP to 23% of GDP. This is an expansion relative to GDP is IDENTICAL to that which the Fed has accomplished since 2008.

And the outcome is looking to be the same. In 1933, CPI began erupting higher. By 1937, CPI was 3.6%. The Fed was forced to hike rates to halt inflation, kicking the weak US economy in the teeth and triggering a particularly nasty recession.

Please put aside all the blather about recovery and central bank good intentions. Central banks are weapons of mass economic destruction and, even worse, this is exactly what they are intended to be.

Nobody needs to sit down to tell this to Janet Yellen. She may well believe she is operating an entity that does the best job it can to increase US consumer solvency.

But those who created central banking (and the BIS as well) meant for central banks to give the appearance of beneficence while triggering ruinous realities.

Here’s more from Slate:

To put it another way, 2015 may go down as the inflection point when the recovery started to meaningfully filter down to typical American families.

Economists and journalists have been wondering for years when middle-income households would finally see a reasonable raise as incomes lingered in their post-crisis ditch.

But last year, they were up across almost all age groups (there was no significant change for 15- to 25-year-olds), races, and income bands.

This analysis would seem to include the entire US economy but Slate is still not taking a broad enough perspective. The Daily Coin provides a much more profound perspective in a recent article entitled, “Replacing The U.S. Dollar with an SDR Note Remains the Overriding Vision.”

Here:

 In an article The Daily Coin published we clearly stated the [recent G20] meetings that would take place on the “sidelines” would be where the real meetings would determine the next step(s) in the, currently, unfolding monetary shift.

The Federal Reserve Note, U.S. dollar, is now on the chopping block of history. While the axe has not been lowered it is certainly being sharpened. China has made it clear there is going to be a change and “the United States had to go along with the Chinese because they hold a large portion of the U.S. government debt.”

This is the reality of the US economy, then: the US dollar is losing its status as the world’s sole reserve currency.

One can speculate from this that there will be, sooner or later, significant price inflation as the dollar weakens.

Additionally, of course we have massive amounts of dollars that have yet to find their way back to the US.

Finally, it is perfectly possible that China could unleash some of its dollar reserves as a warning.

It is fashionable to say theories about monetary supply and demand are misguided, but that has never been our perspective. Just as in the 1970s, we are entering a more severe stagflation – as Greenspan has predicted – that will inevitably result in high prices and higher rates.

The trouble is that sovereign, industrial and consumer debt are so high these days that higher rates will not create solvency. They likely will create a collapse.

And this is the “end game”  – the desired finality. With the world prostrate and its remnants of liquidity frozen, banking elites will swoop in with the final – global – solution.

Perhaps the SDR will become the functional currency. Perhaps the IMF or the BIS will become the new central bank. Perhaps the UN will become the seat of global government.

Conclusion: The reality here, if you take a step back, is that the US is not “recovering” or not for long. The elements of a worldwide collapse have been painstakingly fitted together. All that is needed now is a trigger.

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  • Praetor

    The census bureau, this is a source for economic analysis.

    Global Jubilee, don’t tell anybody this is a Jewish idea. China holding large amounts of U.S. debt, bad for them bad for us. U.N. the new global capitol, being its on U.S. soil, now this could be a problem, for the U.N.

    Let see! 95 million not even looking for work. 1.4 trillion outstanding student loans. 50% of college graduates working jobs that do not require a college degree. For the first time middle class is the minority. 34% of working Americans supporting 66% of the U.S. population. That is just the start of the great economic numbers.

    I think Slate should be looking for more accurate information on the economy than the census bureau.

    I’m glade the DB reads the garbage coming out of the ministry of propaganda, I can not!!!

  • John Lock

    Obama – Clinton still support Keynesian theory economic policy – Keynes rejected it before he died.

    Postwar[edit]
    After the war, Keynes continued to represent the United Kingdom in international negotiations despite his deteriorating health. He succeeded in obtaining preferential terms from the United States for new and outstanding debts to facilitate the rebuilding of the British economy.[66]

    Just before his death in 1946, Keynes told Henry Clay, a professor of social economics and advisor to the Bank of England[67] of his hopes that Adam Smith’s ‘invisible hand’ can help Britain out of the economic hole it is in: “I find myself more and more relying for a solution of our problems on the invisible hand which I tried to eject from economic thinking twenty years ago.”[68]

  • apberusdisvet

    First of all, I call BS on any statistic emanating from any of the many economic propaganda outlets of the USG. Secondly if, in fact, there was any increase it has been totally swamped by the increases in rent, health care, and local property taxes.

  • And this is the “end game” – the desired finality. With the world prostrate and its remnants of liquidity frozen, banking elites will swoop in with the final – global – solution.

    Perhaps the SDR will become the functional currency. Perhaps the IMF or the BIS will become the new central bank. Perhaps the UN will become the seat of global government.

    Well, don’t stop there, DB, whenever you haven’t delivered any probable possible solutions, only likely available, virtually new platforms. What new meme and modus operandi/vivendi will be put in place to take over from the elite dinosaur that crashed the global control system?

    • Dimitri Ledkovsky

      SDR denominated in Bitcoin.

      • mary

        exactly. bank of england has been studying bitcoin/blockchain and in multiple outlets, tptb have been floating the idea that “we need banking but we don’t need banks.” Looking more and more that btc was a deep state project.

  • Doski

    The NET Gain was more than offset by the costs of the UN-Affordable “Affordable Care Act”, but lets NOT consider anything that even resembles the truth.
    Freeze ALL Credit and the Banks, regardless of size, FOLD Immediately with the World Economy following almost as Quickly.

  • StarValentine

    Well, we refuse to fight. We have been told ALL violence is bad, so we are not defending ourselves. But I read that a contemporary observer to the French Revolution wrote a book shortly thereafter saying the French royalty and aristocracy were being deliberately given bad advice (from people outside of France), resulting in them doubling down on and compounding the callous behavior and actions that were enraging the populace. In other words, just like a bully on the school yard, they kept shoving the French citizenry, until if finally reacted. I feel like the same thing is happening today in the US and Europe. It seems the people will be provoked until they react, but they must react regardless, because they have no choice.
    I know masters always tell slaves the first to resort to violence is always wrong, which only means the slave may never fight back, but just like on the school yard, in prison, or in the jungle, if you don’t fight back, you will only be victimized more, by more people, and lose all of your respect, until your life is seen as worth less, and then snuffed out in disgust.
    As the African gladiator told Maximus in the movie Gladiator, “You have to fight.”

    • Mstrjack

      The Pen Is Mightier Than The Sword

    • Samarami

      Finding it difficult to ascertain what it is you mean by “fighting”. I engage in the fight daily by urging you and all who might chance upon my “comments” here and dozens of other places to abstain from beans. I and the late Robert LeFevre, I should add, who penned the article. Sam

    • JohnnyZ

      Some history here: the French revolution (as was the US one before that) was not some spontaneous grass-roots event, but was organized and manipulated by the illuminati / masons. The latter are still in control. So I doubt they will give bad advise to rulers or provoke the peasants to a degree, which will reignite a new revolution (unless they wait with a proper solution of course – to transform to global government). But otherwise their police state is well prepared for a peasants’ revolution. The only way to fight is through spreading the information about their lies etc.

  • William
  • rahrog

    Of course Slate did a thorough investigative analysis on the methodology of fedgov’s report. Everyone knows we can trust the MSM and our benevolent rulers.

  • JohnnyZ
  • Steve

    The voluntarist age will one day come. Here is looking to that great day:

    https://www.youtube.com/watch?v=R1WoM-b_Y_Y

    (lyrics)
    “Come The Day”

    I know that one day soon a song shall rise;
    You’ll hear it with the sleep still in your eyes
    You’ll waken to a brand new day
    Can you hear bells ringin’
    Voices singin’
    Far away?

    A time when every man will be as one
    A time to reach right out and touch the sun
    Come the day
    Freedom’s still a thought within your mind
    The fleeting thing that some may never find
    It may be still a million miles away
    Can you hear bells ringin’
    Voices singin’
    Far away?

    A time to live without doubt or fear
    Welcome to the happy world that will be here
    Come the day
    The trumpets of war will cease to blow
    The sound I hope that we may never know
    We’re waiting for the day
    Can you hear bells ringin’
    Voices singin’
    Far away?

    Lift up your voices and sing this song
    Let the whole world hear it loud and strong
    Can you hear bells ringin’
    Voices singin’
    Far away?

  • alohajim

    Bravo! The banking industry is a criminal enterprise legally protected by the governments they control. Bankers are the scourge of humanity and rule through lies, deceit, plunder, theft, and mass murder. The only real issue on this planet is when mankind can throw off the yoke that bankers have attached to every human being. I’m doing my part, DB is certainly doing their part, how about you?

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