Inmates of The Hotel Eccles QE Rehab Facility

MILES FRANKLIN

Chairman Bernanke promised the Fed would unwind Fed purchases from the 2008 crisis. Now we know they can’t and won’t. The Fed balance sheet of created QE currency units will expand until a reset occurs.

When will increasing debt and the QE nonsense stop? Perhaps…

a) When a snowstorm devastates South Texas in August.

b) When the Fed begs forgiveness for its monumental sins.

c) When the US government balances its budget.

d) When global fiat Ponzi Schemes collapse.

e) When a huge financial reset occurs.

BOTTOM LINE:

Like the Eagles said in 1977:

“Welcome to the Hotel California… Relax, said the night man. We are programmed to receive. You can check out any time you like but you can never leave.”

The 2020 post COVID-19 pandemic version could be:

“Welcome to the Hotel Eccles… Relax, said the chairman. We are programmed to deceive. You can check out any time you like but you can never leave.” We have become inmates in the Hotel Eccles QE Rehab Facility because:

• National debt and money supply must grow. Inflate or Die!

• U.S. National Debt of $25 trillion can never be paid in today’s dollars. It must be defaulted or devalued. Expect a reset.

• Government and the banking cartel want dollar devaluation, consumer price inflation and more debt. They will sacrifice the dollar to support the bond and stock markets.

• The U.S. economy runs on debt and credit. Dollars are debts of the Federal Reserve. The U.S. government spends $ trillions over its revenues each year, so national debt must increase. In the absence of foreign and domestic buyers at artificially low interest rates, the Fed must monetize. QE4ever!

• Dishonest dollars created from nothing spend like existing dollars, but they make existing dollars worth less, until they become worthless. Countries who pursued similar policies are Zimbabwe, Argentina, and Venezuela, bad precedents.

• Oops! The consequences of monetizing $ trillions will be catastrophic, but we must not focus on those consequences in an election year.

From the Eagles: “This could be heaven, or this could be hell.”

Post COVID-19 Pandemic version: This will be heaven and hell. It will be (for a while) heaven for the political and financial elite and hell for the lower 90%. See below.

(CLICK HERE TO CONTINUE READING)