Back in September of 2019 I posted a model of the federal reserve's balance sheet which predicted that it was about to explode upwards very soon. Until that point, the narrative from the fed was that yes, it had created some fake cash out of thin air to handle the 2008 financial crisis but that we were done with that now. Yellen proclaimed we would never have another financial crisis in our lifetimes. Because of this, stupid people believed the fed was telling the truth that deleveraging their balance sheet was possible when in fact people like me were saying it was not only NOT possible but that exactly the opposite was about to happen.
As you can see by the current state of the fed's balance sheet shown in the chart below, my model was 100% correct and the fed was exposed to fed watchers to be a lying charlatan. The general population still hasn't figured it out but my prediction that a skyrocketing fed balance sheet would finally result in rising prices, which most mistake for "inflation", was spot on. Prices have indeed been rising at record rates since the explosion of the fed's balance sheet.
Anyone with any sense knows that we live in a debt based economy and that we are now at that point in the cycle where nobody wants to buy our debt anymore. Not Russia, not Europe and not the Chinese. They have stopped trusting that we will repay. It is no different than the time leading up to the 1972 collapse of the gold window and the massive devaluation of the greenback that followed. Both events are the suckers telling the con men, we no longer believe in the con game. We are out.
Without those foreign suckers to buy our debt the federal reserve had to step in because as the central bank it is the lender of last resort to the US government. All this time the fed's balance sheet was very small but in 2008 it began to skyrocket. The proper interpretation of this is the loss of confidence in the issuing authority of the greenback. Again, the normal path here is to create debt in order to fund government expense, no matter how corrupt or stupid or extravagant that spend may be, but then to foist this bad debt off on suckers. That path is now shut down and the only buyer of US debt is the federal reserve. That is what the rising fed balance sheet actually is: US treasury debt which they accepted in exchange for the "temporary" printing of new fake currency.
So look at the above chart, how it is reaching up to the sky, and now look below at the cash on hand at the US treasury. The proper way to interpret these two charts is that the fed created trillions from thin air to fill the treasury but now it has all been spent. It's been pissed away buying votes from useless eaters of society: deadbeats, illegal aliens, prisoners and criminals, liberal arts "students", etc. In other words, all of those among us whose nature is to consume before (or without ever) producing anything. We have nothing for these trillions spent, no new infrastructure, no new societal skill set, nothing. All we have done is teach more of the population that laziness is a workable strategy because government is a seemingly endless source of free wealth for those who will be obedient and do as they are told.
The wave count for this cash spend down is almost complete. The cash is almost gone. Do we really think that will be the end of it? Do we really think that everything will just go on as normal once the treasury completely runs out of cash? HOW STUPID must a person be to believe such a thing? Waaaay too many people now owe their daily meals and monthly shelter to government largess. If government cannot provide SNAP bribes to the voters and section 8 housing subsidies (vote bribes) then half, yes half, of the people in this country will go hungry.
If there is any way to stop this, the government must do it. And since the greenback is not yet worthless, government still has the ability to stop the starvation and homeless explosion for now. But it cannot do so by tapering in any way. It must in fact double down on currency printing. There simply is no alternative but to do so.
Importantly, what will be the excuse used this time to explain the need for such massive debasement of the currency as will be needed to re-fill the treasury? The public is pretty much done with being scared, and fear has been the mechanism of choice for convincing the herd to debase the currency up until now. I don't think covid delta is a big enough threat on anyone's mind to serve as the reason for the next multitrillion dollar based debasement program. And without something to distract the herd from what is going on, people will begin to get very angry very quickly as prices continue to skyrocket on the basic necessities of life.
People think we have a long long time before something really bad happens. That is crazy. The debt is in the straight up portion of the exponential curve now and that has the effect of reducing / compressing time between "events". Some kind of event is coming. I don't know what it will be but it has to be significant or else the government risks being mobbed and then dragged into the streets and killed. So when the next fear event arises, and perhaps they will try to use another terror event to be blamed on terrorists let into the country by Biden through our southern border, know in advance what it really is: another false flag event whose only goal is to provide political cover for the further debasement of the currency because we just got very unlucky and fell into "the perfect storm". I'm telling you well in advance, it's all bullshit, just like this covid PLANdemic was completely contrived. Yes covid is a real thing, a very bad strain of flu. No, it is not the black plague. Yes, government has purposefully blown it out of proportion so that it can appear to stupid gullible people like government is on our side when in fact government is in it to win it for itself. Yes, covid was man made on purpose through a process called enhancement of function. In other words, it was made more deadly on purpose in the wuhan lab. Yes, Fauci helped fund this work so that the US elite could have access to the work and control of it. Yes, it was released on purpose because they needed political cover for the predicted fed balance sheet explosion.
I will let you roll your eyes one last time at all this. When the next fake crisis happens and government tries to whip up a panic in the public in order to again rip us off with debasement of the currency then eye rolling will no longer be tolerated. If you can't figure out what is happening after having been warned so many times in advance, there really is no hope for you. Being a good person is not going to save you from the eventual outcome of the collapse of the GDP (Global Debt Ponzi). Being prepared at least gives you a fighting chance.
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