Is the US really heading into a Great Depression?
Is it possible for America to go into a another Great Depression? Unfortunately, I believe that something like the Great Depression could happen again.
Most definitely. In fact we’re already well on our way there. To understand why you first have to understand how the original Great Depression occurred.
Before 1913 the US was on the gold standard. Banks would take your gold and give you bank notes in return. If you put your money in a savings account they would create bank notes from that and lend it out or invest it in the stock market, paying you interest in return.
Then the Federal Reserve was created. The Federal Reserve is a banking cartel. They said to the banks, “now you can lend out as many bank notes as you want, we’ve got your back”.
At first the banks were wary of doing anything risky. To a banker their bank is their life, and if it goes in the toilet they’d find themselves shirtless and living in a homeless shelter somewhere. However starting around 1920 the banks began to take the bait. They started creating bank notes for gold that they didn’t actually have, and lending them out and investing them in the stock market.
This drove up stock prices greatly. Everyone rejoiced at how great the economy was and how a new age of permanent prosperity was upon them. Everyone could get cheap credit and use it to buy superfluous junk.
However the banks also had to pay back their depositors the gold that was lent to them. Every bank note they printed that wasn’t backed by gold was thus leverage, or in other words ‘borrowed’ money. The more leverage the banks took on the fewer the losses it would take to wipe out their entire store of real gold, and many banks had insane leverage ratios. The more leverage they racked up the more cautious they became about adding more leverage.
And then stocks began to falter. As banks became more cautious the relentless upward drive of stock prices came to a halt. Then they started to fall. For the most heavily leveraged banks that was all it took to cause them to go bankrupt, and when they went bankrupt they had to sell off all their assets to pay their debts. The selloffs of course drove prices further downward, forcing other banks to fold in a chain reaction all the way to the bottom.
Now at that point they should have just been honest and cut their losses. In other words, they should have admitted that they didn’t have the gold that they were pretending to have, and just redeemed their notes based on the amount of gold that the actually had. However that’s not what they did.
Instead, under the misguidance of Hoover, they tried to reclaim as many bank notes as they could to try to restore the original value. This only served to make things worse. Since money kept being pulled out of the economy prices couldn’t stabilize and businesses were unable to recover.
Then Roosevelt came along and took advantage of this to blame the Federal Reserve for not printing enough money to deal with the crisis! By diverting people’s attention from the real cause of the Depression he managed to ensure that the same crooked practices that caused it would not only be repeated again, but even be encouraged by the very people who were robbed by them.
Fast forward a couple of decades
In 1971 the US dropped the gold standard completely. People had long since forgotten why they needed it in the first place. Now the banks can create as much money as they want, with the Federal Reserve backing them up with their crooked schemes. Stock prices get driven up to bizarro world levels, people are burdened with huge amounts of debt that’s issued using money that the banks don’t actually have, and thanks to all of this it’s no longer possible for a family to survive on a single paycheck anymore.
We’ve already seen numerous economic bubbles and crashes, in 1987, in 2001, in 2008, and now in 2018, with each crisis being worse than the one before it. Also thanks to the money-printing madness, corporations in the 80s went on a rampage buying out other corporations (using borrowed money, of course) until only a handful of corporations now own virtually the entire US economy. Money is funneled out of the hands of the lower and middle classes and into the hands of the rich, government sponsored monopolists, who thanks to the mega-corporations can freely buy all of the politicians before the voters even cast a ballot.
It’s also given the government an excuse to raise taxes. The government taxes more things and at a higher rate than it ever did prior to 1913. The income tax didn’t even exist before then. The government spends over 60% of its budget on social welfare programs that nobody even needed before the Great Depression, and does so through deficit spending putting the country into debt far beyond what it can ever actually pay back.
Social security and government pensions are a complete scam. Those programs take the money that’s paid into them and spend it immediately. They replace it with treasury bonds, mere IOUs that the government makes to itself and which can only be paid through future taxes, at a time when the government is spending more money than it collects. The scheme is literally funded by less than nothing.
Neither democracy nor capitalism truly exist in the US anymore thanks to all of this. People are getting poorer by the day and pointing their fingers at all the wrong places looking for the cause, and voting for all the wrong solutions, which in reality will only make them poorer.
Warning!!! First Signs That U.S. Consumers Are In Very Serious Trouble
30 Million Americans Face Hunger As They Can’t Afford Insane Grocery Prices:Nearly 10 percent of the U.S. population is facing the threat of hunger and about 70 percent of Americans say they are struggling to pay their grocery bills right now.
The following video reveals the secrets of a future crisis, but the government does not want us to know the truth!
In short, the future of the US looks like this:
2018? Our economy was rockin in 2018, in fact it was doing great until the covid lockdowns in 2020.
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