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SimulationCommander's avatar

Wow! Straight to the point! Strong language, but required!

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Phil Davis's avatar

Here is one other important item to understand. It may be the most important. That is this: the US along with other world leaders know what is coming, sovereign defaults.

The cash raised through the banking systems is drying up. The long end of bonds is of no interest to anyone. Why buy long bonds in a rising rate environment? Additionally, the markets are sensing the coming defaults and are avoiding anything over ten-year maturities. There are a plethora of small crashes happening, this year in the UK, for example, revolving around liquidity issues, then there are the repo markets that have a fit a couple of times a year. These are usually stable markets, but no more.

The analogy I can think of is a person planning on going bankrupt in the future so they borrow as much as they can now. This is Congress and the World. They have no intention of ever paying any cash back. They have always worked this way, but now as the end nears they are desperately raising the amounts to the limits of our outrage. What's the maximum we can borrow without causing a revolution?

This is why we are seeing their villainy, their shameless abuse of others' money and trust. We are very close to the end.

Please realize too that the purpose of this Ukraine nonsense has several variables depending on what part one is playing in the chaos of the world. But, the forefront of reasons for war is to cover the coming defaults. Killing Russians is the moral justification for—we just stole your hard-earned cash.

How will this play out? The defaults will never be called by their proper name—DEFAULT. They will tell us interest will continue to be paid, but that principal will have to come later, maybe very later. It will be something like the above where the justification makes sense on some nonsensical level. But look, how many bought the story about an invisible particle that shut the world down?

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