Would I say there will never, ever be another financial crisis? … Probably that would be going too far. But I do think we’re much safer, and I hope that it will not be in our lifetimes, and I don’t believe it will be.

Janet Yellen
Federal Reserve Chair
June 27, 2017
Yellen: I Don’t See a Financial Crisis Occurring ‘In Our Lifetimes’
[I wonder, given the current state of things, if she would like to update that assessment. Or is that that she has a rather low expectation of our lifetimes?—Joe]

What we are witnessing right now is the final phase of a collapse scenario that was more than a decade in the making, and Biden is about to help finish the job.

Biden will no doubt seek to hyperinflate the dollar in the name of offsetting the losses and keep things afloat for a short time, but the real agenda will be to trigger price spikes in goods as well as eventually killing the dollar altogether. No amount of stimulus will stop the crash that has already been set in motion; the bailout measures from this point on are Kabuki theater, a show put on for the masses to make us believe that the government and the banks “did everything they could” to save us. The elites have no intention of stalling or stopping the collapse; their “great reset” demands it.

One’s initial assumption would be that Biden would then take the blame for the economic crisis, but it appears that the establishment is going to set up a Herbert Hoover narrative and lay all the blame squarely on Trump and conservatives. In the past I have noted that Trump’s trajectory was very similar to Herbert Hoover’s, in that he was a business mogul and Republican that pushed for corporate tax cut policies and also extensive tariff’s.

Brandon Smith
January 20, 2021
Biden’s Presidency Will Be A Catalyst For Secession – And Perhaps Civil War
[I’ve been listening to the book When Money Dies: The Nightmare Of The Weimar Hyper Inflation. There are a bunch of takeaways which I think are relevant to our current situation. The ones I have taken note of so far include:

• The government was, in a sense, without options because of increasing obligations which they could not pay for. The option of defaulting was “too terrible to confront” and they could avoid the confrontation in the short term by printing more money. Our situation more than parallels theirs.
• The volume of paper became so large people carried their money in baskets and wheelbarrows. People would have their baskets and wheelbarrows stolen and the thieves would leave the money behind.
• Things moved quickly. A cup of coffee was priced at 5,000 Marks when you sat
  down on the table but was 8,000 Marks after you drank it and went to pay for
  it.
• One of the things that slowed the increase in the currency supply was the physical creation of the paper bills*. Our digital money will not have these restrictions on the rate of increase.
• Some people did well in this environment. Among these were people in businesses where their costs were upfront and product sales were much later.
• People in union jobs with effective striking power producing essential goods were able to avoid the worst of the situation.
• People in the services industries, include doctors, lawyers, etc. did poorly.
• People in government jobs and on pensions were the worst hit. They had nothing to barter with and no effective ability to go on strike.
• Certain areas (I’m thinking these were something like an equivalent of our counties) issued their own currencies with exchange rates based on a quantity of grain or fuel.
• The masses of the people, including well respected economists, did not understand why it was happening. They needed someone or something to blame. Jews became the “winners” in the scapegoat Olympics.

We live in interesting times.—Joe]

* The capacity of the infrastructure for producing and distributing the currency was exceeded. With the denomination of the bills increasing at an exponential rate even the limits on things like the speed of the design of the bills was exceeded. The ability to produce and delivery the paper to the printers, get it through the printing presses, and distribute it to the banks exceeded the truck transportation capacity.

The main idea of MMT is that since government creates money there are exactly no limits to how much money government can create.  Back when money was backed by gold (say, with one ounce of gold being worth $20) there was a physical limit – by definition you couldn’t have more $20 gold coins than you had ounces of gold.  MMT says, “Hey, since Nixon took the world off of the gold standard, we’ve been making up this money stuff anyway.  So let’s go all in.”  This is not exactly like a drunken 21 year old with Mom and Dad’s credit card in Las Vegas.  Not exactly.  The credit card has a credit limit.

John
January 20, 2021

The Post That Gave The World Bikini Economics: Why MMT Is A Bad Idea.
[It would appear that the U.S. is in the process of testing MMT.

We live in interesting times.—Joe]