by Ken Vincent, Featured Contributor
I’M NOT REALLY one of those doom and gloom guys, but there are certain facts and statistics that can not be prudently ignored. Among them are these:
Banking debt is growing 30 times faster than economic growth. Derivatives are now passing 710 trillion dollars. (I was having stomach pains at 200 trillion). We have racked up some 17 trillion dollars in new debt in the past 6 years. The largest exporter of crude oil has now shifted to Russia, and we are not in the best of terms with them. That means that OPEC no longer dictates oil prices (good, bad, who cares?).
China has developed a huge “phantom” banking industry and are rapidly accumulating a huge horde of gold. The U.S. Dollar is rapidly being replaced as the world’s reserve currency. China and Russia are already trading in Chinese Yuan. Many in the international monetary scene believe that we are well into a 10 year plan to replace the dollar with another currency. The smart money seems to be on the International Monetary Fund SDR, pegged in some fashion to the Yuan.
So, who is buying all this new U.S. Debt? Russia and China, formerly the biggest buyers closely followed by some Arab countries are now selling. So who is buying? Well it seems that Belgium is one of the biggest new buyers. Clearly Belgium doesn’t have the economic muscle to do all that buying, so one must assume that they are acting as a front for some other entity. I don’t know who that is, but I’m sure the insiders in our security forces know. At least we can hope so.
Now we can toss in all the rioting and terrorist activity in the middle east, much of which we have funded by supporting various dictatorial regimes. Just look at the billions of dollars of military weapons and hardware that we abandoned in Iraq, now in the hands of ISIS.
If you want a some more facts to assure a few nights of insomnia read “The Death of Money”, by James Rickards.
Oh, did I mention that the inflated stock market is now at 203% capitalization? Or that the FDIC can only pay 5% of the deposits they insure, or that the Fed is insolvent?