The next debt crisis is coming and Martin Wolf rightly warned that we need to be ready to switch to sovereign money and implement the Chicago Plan revisited.
Yet, there is no sign, the Trump administration, packed with private bankers, is preparing for that switch. Rather, it has become clearthat Trump and his banksters are accelerating the severity of that debt crisis by pushing up interest rates while promoting an agenda of wars, and possibly also false flag epidemics, to contain unrest.
It has also become clear that Trump has picked generals with an authoritarian, anti democratic streak for leading positions, something which could ease the implementation of martial law in the USA on behalf of the bankers.
Pentagon chief James Mattis yesterday even directly threatened Syrian President Bashar al-Assad saying “the Syrian government would be ill-advised ever again to use chemical weapons.”
His personal threat is a sign of the extent to which the mobster mentality has already taken hold of Trump’s adminstration that Mattis ignores the fact that he does not have the power to launch military action. There is a the Constitutional requirement for Congress to authorize military action in the USA, and the American people just elected a Congress campaigning on an anti war platform.
UK Prime Minister Theresa May tried to remind Trump and his Junta generals that the USA and UK are democracies by noting that the UK parliament had not authorized strikes against Assad. But it is to be doubted that Trump’s attack dogs Mattis and H R McMaster, high on their personal power trips, want to grasp the point that they do not have the untrammelled, unfettered power of Junta generals in a South American dictatorship, but must ask for permission from democratically elected bodies before they go to war.
The Goldman Sachs and Rothschild bankers who pack Donald Trump’s cabinet may well be calculating that this pair of authoritarian generals could be especially useful to them when it comes to controlling the social unrest triggered by the financial crisis they are creating by starting diversionary wars or even false flag epidemics.
Trump even chose former Rothschild and Goldman Sachs bankers Wilbur Ross and Steve Mnuchin to sit beside him in the “situation room” in his mobster hideout, his private golf course in Florida, when he launched missile strikes against Syria, nearly starting World War Three, and without consulting Congress.
The banksters are clearly planning to impose their control grid soon if the rapid and destructive pace of the planned interest rate increases is anything to go by.
US government and personal debt is at historic highs. Until now, the effects of the debt have not been fully felt because the Federal Reserve has kept interest rates historically low to try and keep a lid on social unrest. Borrowing costs have been near zero since the 2008 financial crisis.
But in December, with the election of Donald Trump the Fed started the first of a series of planned increases, aiming to get interest rates up to four or more percent in a relatively short time and with the full support of the Trump administration.
Rising interest rates will increase debt costs for the federal government, and will also lead to higher interest rates on mortgages, credit cards, car loans, and business loans. In a recessionary economy, businesses, people and the government will soon be struggling to keep up with payments. Delinquencies, bankruptcies and foreclosures are set to soar along with social unrest.
Americans owe more than a trillion dollars in credit card debt — the first time the national credit card bill has crossed the trillion-dollar mark since 2008.
Car loans and student debt have also topped a trillion dollars. The numbers were released in a batch of Federal Reserve data on Friday.
The Financial Times considers the soaring student loan debt, which has grown by 170 per cent to 1.4 trillion dollars, to be the new housing debt bubble.
The Federal, state, and local governments also facing soaring debt costs, predicts the WSJ, which calls the debt bomb a time bomb. In fact, growing interest payments are already showing up in the federal budget.
There are many differnt ways of counting debt but even conservative estimates put interest payments on federal debt in the fiscal year 2016 at 240 billion dollars or about 6% of total government spending or almost half the defense budget of 604 billion dollars, despite the historicaly low interest rates.
But, if the current pattern of mounting debts and rising interest rates persist, the government could soon find itself paying more in interest payments on its debt than on defense, reports Forbes.
Whichever way you cut or slice it, the USA, along with the rest of the globe, is facing a double whammy of soaring personal and government debt costs.
Martin Wolf has argued that the private creation of money with interest rates, about 90% of which has been diverted to mortgages creating property bubbles, which banks busted in 2008 to allow them to foreclose, is like a black hole in our economy.
The banksters know that Trump’s plan to revitalize the economy is built on sand as long as the creation of money and interest rates remain in their hands.
That is one reason why they are so interested in creating diversions such as World War Three or another Ebola false flag in the near future.
Epidemics allow the government to implement all kinds of martial law mechanisms to control social unrest. In addition, these control measures can be implemented more or less simultaneously across the globe. And not just in America, but Europe, Japan and China are facing financial collapse due to excessive debt.