For example, the average first world citizen, the one who should presumably have the most opportunity for economic prosperity, can not function in society without debt. Purchasing a house or car, going to college, or supporting a family have become so expensive that without credit cards, bank loans, and social programs, life is impossible.
And yet while the middle and lower class struggle to survive, in many cases working two or more jobs to support their families, the ultra-wealthy have become more rich and powerful. Clearly there is something wrong with the status quo, and with most of humanity distracted by earning-a-living, the true cause of all our suffrage remains obscured.
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The truth is, hidden oligarchs and plutocrats have been quietly amassing ungodly amounts of wealth while the rest of humanity toils away — and this is by design. These plans work over decades and centuries of time, slowly but surely changing the social fabric and the way business is done so that eventually the people become renters and paupers on the land that their forefathers settled.
It starts like this. First governments are bankrupted, which has happened several times in US history, the latest was in 1933 it seems.
Related Forbidden History: This United States is in its fourth (4th) bankruptcy
This is accomplished by central banks that charge interest to print money which eventually makes the government insolvent. This helps the citizenry to accept usury (the charging of interest), creating parasitic economic policies and business practices. Once this happens, the government goes bankrupt and debt is leveraged against the citizenry, as servicing payments (interest on the debt) is charged to the people in the form of income tax.
At this stage, the focus is on the citizenry. Slowly making the cost of living more expensive, so that the consumer is eventually bankrupted, being forced into the workplace due to economic hardship. This is exactly what has happened over the past 80 years since 1933.
For example, I am 34 years old and my parents, who are in their early 60's purchased a car, house and paid for school in the 1980's via my mother's part-time job and my father's full-time job. Both of them were able to pay for college while starting a family and had no student loan debt after graduation.
By comparison, my good friend from childhood just started his family. Both he and his wife work full-time jobs while taking care of their one-year-old child. They live in an apartment, have student debt, and cannot save money to buy a house or new car because of servicing payments on their existing debt. They have become wards of the state, paupers of the land, debt slaves that are totally dependent on landlord creditors — and this is how most people in the world today live.
The last sector of the economy to be bankrupted, as part of the plutocratic agenda, is the private business sector, of corporations. Today these entities own everything, but even they are over leveraged to banks, who are the true titleholders of all the assets via mortgage contracts.
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Until recently, corporations were the last remaining solvent entities. But as the below article details, now even corporations are unable to service their debt, and are resorting to layoffs and quality cuts when able, or defaults and bankruptcies when they are not. The energy and shipping sectors of the economy were two glaring examples of this from earlier this year.
Related Energy Industry Collapsing | At least 67 U.S. Oil and Natural Gas Companies Bankrupt, 1/3 of Industry At Risk in 2016
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What this indicates is that many economic cycles of boom and bust are part of an orchestrated effort to restructure society into a more manageable feudalistic system. When the rich own everything, and the poor own nothing, we essentially have feudalism. The poor can't offer anything to the rich other than their labor, and the rich don't want to offer anything to the poor but basic survival needs. This way, the rich stay rich, and the poor stay poor.
Related The Slavery of Feudalism Replaced with False Capitalism | Financial Feudalism
It seems the world is headed for a major economic correction or transition, a type of reset. The question is, what will this reset look like?
If the past is any indication when the people choose to remain ignorant and inactive, the economic system that forms after a reset is more draconian and limiting. But when the people stand up and refuse anything but an honest, fair, and prosperous system, what emerges serves the people.
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The bottom line is if we want prosperity for ourselves and our children, we need to participate in the process of making it a reality. Placing our trust in untrustworthy policies promoted by nefarious bankers got us into this mess. Only by developing key knowledge and placing our trust back in humanity can we ensure the future is safe and secure for all people.
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Source - The Economic Collapse Blog
By Michael Snyder
If a new financial crisis had already begun, we would expect to see corporate debt defaults skyrocket, and that is precisely what is happening. As you will see below, corporate defaults are currently at the highest level that we have seen since 2009. A wave of bankruptcies is sweeping the energy industry, but it isn’t just the energy industry that is in trouble. In fact, the average credit rating for U.S. corporations is now lower than it was at any point during the last recession. This is yet another sign that we are in the early chapters of a major league economic crisis. Yesterday I talked about how 23.2 percent of all Americans in their prime working years do not have a job right now, but today I am going to focus on the employers. Big corporate giants all over America are in deep, deep financial trouble, and this is going to result in a tremendous wave of layoffs in the coming months.
We should rejoice that U.S. stocks have rebounded a bit in the short-term, but the euphoria in the markets is not doing anything to stop the wave of corporate defaults that is starting to hit Wall Street like a freight train. Zero Hedge is reporting that we have not seen this many corporate defaults since the extremely painful year of 2009…
While many were looking forward to the weekend in last week’s holiday-shortened week for some overdue downtime, the CEOs of five, mostly energy, companies had nothing but bad news for their employees and shareholders: they had no choice but to throw in the towel and file for bankruptcy.
And, as Bloomberg reports, with last week’s five defaults, the 2016 to date total is now 31, the highest since 2009 when there were 42 company defaults, according to Standard & Poor’s. Four of the defaults in the week ended March 23 were by U.S. issuers including UCI Holdings Ltd. and Peabody Energy Corp., the credit rating company said.And by all indications, what we have seen so far is just the beginning. According to Wolf Richter, the average rating on U.S. corporate debt is already lower than it was at any point during the last financial crisis…
Credit rating agencies, such as Standard & Poor’s, are not known for early warnings. They’re mired in conflicts of interest and reluctant to cut ratings for fear of losing clients. When they finally do warn, it’s late and it’s feeble, and the problem is already here and it’s big.What all of this tells us is that we are in the early stages of an absolutely epic financial meltdown.
So Standard & Poor’s, via a report by S&P Capital IQ, just warned about US corporate borrowers’ average credit rating, which at “BB,” and thus in junk territory, hit a record low, even “below the average we recorded in the aftermath of the 2008-2009 credit crisis.”
Meanwhile, we continue to get more indications that the real economy is slowing down significantly. According to the Atlanta Fed, U.S. GDP growth for the first quarter is now expected to come in at just 0.6 percent, and Moody’s Analytics is projecting a similar number…
First-quarter growth is now tracking at just 0.9 percent, after new data showed surprising weakness in consumer spending and a wider-than-expected trade gap.Of course if the government was actually using honest numbers, people wouldn’t be talking about the potential start of a new recession. Instead, they would be talking about the deepening of a recession that never ended.
According to the CNBC/Moody’s Analytics rapid update, economists now see the sluggish growth pace based on already reported data, down from 1.4 percent last week.
We are in the terminal phase of the greatest debt bubble the world has ever experienced. For decades, the United States has been running up government debt, corporate debt and consumer debt. Our trade deficits have been bigger than anything the world has ever seen before, and our massively inflated standard of living was funded by an ever increasing pile of IOUs. I love how Doug Noland described this in his recent piece…
With U.S. officials turning their backs on financial excesses, Bubble Dynamics and unrelenting Current Account Deficits, I expected the world to lose its appetite for U.S. financial claims. After all, how long should the world be expected to trade real goods and services for endless U.S. IOUs?As this bubble bursts, we are going to endure a period of adjustment unlike anything America has ever known before. I talk about the pain coming to America in my new book entitled “The Rapture Verdict” which is currently the #1 new release in Christian eschatology on Amazon.com. To be honest, I don’t know if any of us really understands the horror that is coming to this nation in the years ahead. None of us have ever experienced anything similar to it, so we don’t really have a frame of reference to imagine what it will be like.
As it turned out, rather than acting to discipline the profligate U.S. Credit system, the world acquiesced to Bubble Dynamics. No one was willing to be left behind. Along the way it was learned that large reserves of U.S. financial assets were integral to booming financial inflows and attendant domestic investment and growth. The U.S. has now run persistently large Current Account Deficits for going on 25 years.
Seemingly the entire globe is now trapped in a regime of unprecedented monetary and fiscal stimulus required to levitate a world with unmatched debt and economic imbalances. History has seen nothing comparable. And I would strongly argue that the consequences of Bubbles become much more problematic over time. The longer excesses persist the deeper the structural impairment.
This spike in corporate debt defaults is a major league red flag. Since the last financial crisis, our big corporations went on a massive debt binge, and now they are starting to pay the price.
We never seem to learn from the errors of the past. Instead of learning our lessons the last time around, we just went out and made even bigger mistakes.
I am afraid that history is going to judge us rather harshly.
Those that are waiting for the next great financial crisis to begin can quit waiting, because it is already happening right in front of our eyes.
If you believe that the temporary rebound of U.S. stocks is somehow going to change the trajectory of where things are heading, you are going to end up deeply, deeply disappointed.
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