Let’s open with hardcore news from the week of 8/7…there is a very specific reason for going over these details so just follow along…

• As of 8/7 total credit rose $17.8 billion exceeding estimates by 40% Bloomberg survey of economists. This clearly indicates substantive proof that the consumer is surviving on debt…and a huge debt of historic proportions continues to form.
• As of 8/7 deflationary pressure that’s hitting Chinese businesses as the economy weakens. Using the gross domestic product deflator — a measure of economy-wide prices — China is already in deflation. “Deflation” is a bad thing, a very bad thing for the 2^nd largest economy in the world and primary trading partner with the U.S.
• As of 8/7 the boss of “Black Swan” fund, Mark Spitznagel, has raised the alarm on dangerous amounts of debt, slammed the Federal Reserve for putting financial markets and the US economy at risk, and we are in the greatest credit bubble in human history.
• As of 8/8 China’s trade woes are destroying hopes of a China economic recovery. Imports and exports fell for the world’s second largest economy much faster than estimated last month. China’s imports are down more than 12% in the last year, exports contracted 14.5%.
• As of 8/8 U.S. stocks have skyrocketed since their dreary end to 2022—but Morgan Stanley’s Mike Wilson is convinced equities are in a “boom-bust” position. U.S. government spending had helped prop up markets and the economy…giving rise to the mistaken consensus view that the risk of a recession has faded considerably. Clearly showing that it is primarily the U.S. government fueling the stock markets.
• As of 8/8 Bank of America warned that there is $1 trillion in corporate debt that is in serious danger of default. And another $1.8 trillion in corporate debt due for renewal at much higher borrowing costs.
• As of 8/9 regional banks are looking like failed Sun Valley Bank but it is looking grim for many mid-sized banks as well. Moody’s is downgrading many US banks and putting many others under close review. The problems are arising from Treasury Bill rates, devalued real estate assets, and runs on cash by depositors. Also contributing to problems are customers struggling to secure a loan, getting approved for a credit cards, and making large purchases on credit. Two major US banks, Bank of New York Mellon and US Bancorp, are now under review for downgrades. Additionally, Moody’s reported a negative outlook for 11 financial firms, including Capital One, Citizens Financial, and Fifth Third Bancorp.
• As of 8/9 Fitch downgraded U.S. federal government debt securities…T-Bills. One factor cited was a “steady deterioration in standards of governance.”
• As of 8/9 Business Insider reports “the resumption of student loan payments combined with interest-rate hikes will fuel a consumer-led recession…starting in the third or fourth quarter [2023].”
• As of 8/9 Warren Buffett’s $33 billion ominous warning to Wall Street. His company has net sales of $33,000,000,000 worth of stock in recent months…signaling a huge and ominous warning regarding Wall Street’s outlook.
• As of 8/9 according to the Federal Bank of New York; 1) Americans surpassed $1 trillion in credit card debt, 2) historic amounts of unpaid debt for longer periods of time, 3) less income with which to pay that debt, 4) household debt grew to a record-high over $17 trillion, 5) the number of people delinquent more than 90 days is rising quickly, 6) start-up of student loan payments this fall will further shrink consumer ability to pay bills, 7) personal bankruptcies are expected to rise substantially.
• As of 8/9 Business Insider is reporting big banks are trying to dump commercial real estate loans as pressures mount in that sector. JPMorgan, Goldman Sachs, and Capital One are among those trying to shed commercial real estate debt exposure, sources told Bloomberg. Some banks are having trouble securing buyers, and have been holding onto unwanted loans as they search for a deal.
• As of 8/10 Wells Fargo has reported that home equity could be the source of the next spending boom. Why? Historic levels of credit card debt reducing available credit, same for revolving debt as well as consumer loans. “Home equity revolving credit balances rose for the fourth straight quarter.” What they didn’t talk about…the housing crash of 2007…due to…over-leveraged housing market.

Did you digest all of that? Did it make your eyeballs want to fall out? Or maybe you dozed off for a minute.

So here is the question…If there is so much horrible underlying economic news, actual facts, solid evidence, why is the economy still functioning at all? Now there is the right question to ask…or at least one of them.

So let’s look at who controls the REAL money in the US…

• Blackrock money management $10+ trillion
• Vanguard Group nearly $10 trillion
• Bank of New York Mellon has over $40 trillion in “custody”
• State Street Corporation controls nearly $5 trillion
• JPMorgan controls nearly $4 trillion
• Charles Schwab has nearly $7 trillion
• Fidelity has nearly $5 trillion
• Bank of America nearly $4 trillion
• Edward Jones and Wells Fargo at a paltry near $2 trillion each

So the top 10 money management corporations in the US control nearly $90 trillion. Yeah, that looks like this $90,000,000,000,000…that equates to $275,000 for each man, woman, and child in the United States. But I am not done…

• 40% of all money in existence was created in 2020 by the Federal Reserve.
• As of the end of 2022 it increased…80% of all money in existence was created from 2020 – 2022 by the Federal Reserve.

Yeah, that means trillions and trillions and trillions of dollars were simply created from thin air and pumped into the economy. The total is approximately $16 trillion that the Federal Reserve created in just a couple of years. Remember, not a penny’s worth of value behind any of that money…it was simply created on the Fed’s computer keyboard and then sent out into the economy.

So why does it appear that the economy, especially the stock market, is doing so well?

Let’s pick the low-hanging fruit first…the Fed. Ironically, the Fed is a rabidly left-wing organization politically…and entirely vested into the Biden Administration…and all things Progressive. So that created “funny money” was pumped into institutions that support Biden and his radical leftist/Progressive agenda. That averages more than $5 trillion per year getting funneled to left-wing causes…which directly or indirectly benefits the only a small portion of the economy…a very targeted group of companies.

Now the juicer stuff…9 out of the top 10 money managers (Fidelity excluded for the most part) are completely invested in left-wing causes such as ESG, etc. All of those 9 are controlled by global elitists…who belong to the World Economic Forum (WEF). So where did that $16 trillion from the US government go? Almost to the penny it went to these 9 money managers via one channel or another.

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FWIW…1) Blackrock handles US federal government employee retirement fund money, 2) JPMorgan provides credit card services to the US federal government. Hummmmm, interesting.

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And who do you think controls the top Fortune 500 companies in the United States? Yup, the $90 trillion controlled by the 10 largest money management firms…9 of which are controlled by the world’s elites.

Let me throw this on you…the 2022 US gross Domestic Product figure was $25.5 trillion dollars. Do the math…the 10 largest money managers control more than 3.5 times the entire annual US GDP and they control all of the Fortune 500 companies. And remember, the WEF controls 9 out of 10 of those money managers.

As long at the global elites want the economy to do well…it will. And the US government just gave them a free $16 trillion bonus check from 2020 – 2022 to put into their ever growing coffers.

Now, look around you…how are you doing financially? How about your family members, your neighbors, or your co-workers…how are they doing financially?

The absolute facts clearly show that the average US citizen is doing VERY badly, going deeper and deeper into debt, and having more and more trouble paying bills…and it will get much worse in 2023 & 2024.

So why does the economy appear to be doing well? Simple, the super rich, the elites, are making money hand over fist…with the US government’s help.

But then you see that so many regional and small banks are about to go under…well, who buys up those banks and their financial assets at a discount? Oh yeah, JPMorgan, Bank of America, and Wells Fargo…3 of the top 10 money management companies. So the power of money gets more and more consolidated.

Then you hear that 40% of all corporations are in serious financial trouble and most, if not all of the 40%, could go bankrupt…but who will buy the assets, including the customer base, of those companies when they go under? Oh yeah, the 500 corporations that are controlled by the 10 largest money managers.

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The estimates are $300billion – $500billion changes hands daily through the stock markets. If a loose cooperative of companies, say money managers, want the stock market to go up or down how easy would it be for them to make that happen? Would $100billion influence the market on any given day?

Now imagine this…you have $90 in your pocket, if you wanted to spend 10cents on something, would that bother you, even if you lost that entire dime by it falling out of your pocket?

That is what the top 10 money managers can do…spend .011% (1/10th of 1%) of the money they control to move the ENTIRE stock market any way they want it to go on any given day…without blinking.

So now ask yourself this…

Who really controls the winners and losers in the stock markets?

Hell who controls the entire stock market?

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So now you know. The economy will roar along, at least for some folks, until it doesn’t. And it will all stop when a handful of people associated with the WEF decide to pull the plug. And when the global elitists make that happen, whose hands will all that money be in? Who will control all of those assets…including the assets that secures consumer debt?

And what will your status be at that time, when everything falls apart…you will own nothing, or virtually nothing…will you be little more than a serf?

At least now you have a better idea of why the economy appears to be doing so well…as most Americans struggle to pay their bills and put food on their table. Nice, huh?

This is why I talk so much about the economy…trying to make sure I do all I can, to reach as many people as I can, to warn as many people as I can, to maybe, just maybe, get more folks to prepare for the financial devastation that is coming. And it is coming…and it will be devastating…and I don’t think it is far off.

Let me close with a couple more tidbits…

• On August 7th Moody’s downgraded 10 more banks…on the risk of collapse.
• On August 15th reporting Janet Yellen, Treasury Secretary, that Americans should anticipate a decline in the USD as the world’s reserve currency.
• On August 15th I heard the term “richcession” for the first time…coined by Bank of America. Unemployment is rising fastest among households making $125,000 or more. As of last month, the number of high-income households receiving unemployment benefits was about 70% higher than the year before, more than double the rise in the lowest-income bracket, which includes households making $50,000 or less. That continues a trend that started at the beginning of 2023 but has become more pronounced this summer, the bank noted. Who has the highest amount of student debt? Who has the largest home mortgages? Who has the largest amount of credit card debt?
• On August 14th Robert Kiyosaki (author of Rich Dad, Poor Dad) warns that a crash landing is coming, “America is broke” according to him.
• On August 14th former Home Depot CEO, Bob Nardelli, issued a grim warning over US bankruptcies: “It’s different than anything I’ve seen. I think we’re going to see a lot of bankruptcies. Like Bed, Bath and Beyond. We got Walmart not only laying people off, but closing stores. We got Accenture laying people off. We got Amazon closing distribution centers. So I think there’s a tremendous-mixed message.”  He went on to say that we could see an average of 10,000 retail closings per year for the next 5 years.

Folks…what more can I say? What more can I share with you? I am frustrated beyond belief! You don’t know how much I worry about each of you and your financial well-being. The economy could easily collapse overnight and I fear what it would to you…to all of us…if we are not preparing.

Look, I am no financial expert at any of this…but I can see the signs and I can listen to those that are the experts. This isn’t anything new. This change in the economy started over 100 years ago, and the transition has been accelerated since about 1970 when the collapse of the middle-class began. But you have seen it seriously starting to collapse at almost light-speed in the last 16 years…since the beginning of the 2007 housing collapse. You can feel it…you know it is happening…you know it since COVID-19 hit us.You can’t deny what you both know and feel.

Please talk to your family…see what you can do to get your financial house in order…do something…PLEASE.

 

 

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