Powerful voices in the financial and economic sectors are warning that the U.S. is headed for a gigantic economic collapse. The U.S. continues printing money to keep up with its financial obligations, spending way beyond its means. With Democrat Joe Biden as president, there is even less of a check on spending than under Republicans. The debt recently increased another trillion within 90 days, reaching 34 trillion.
Rep. David Schweikert of Arizona started putting on regular presentations in the House of Representatives about running out of money, due to Social Security and Medicare bankrupting the country. Stanley Druckenmiller, chairman and president of Duquesne Capital, warned of the “Coming Fiscal Horror Show” in a speech last spring, lamenting that due to the the out-of-control spending on entitlements, “pensions tomorrow will be a fraction of what they are today, and the government won’t be able to pay for more than half of Americans’ health care bills.” Additionally, he warned that “risky behavior from investors, banks, and the government” are creating
“unprecedented bubbles in both breadth and magnitude,” pretty much an “everything bubble.”
A key financial indicator of the financial shakiness is the latest ranking of debt-to-GDP ratio, 119%, in fifth place in a ranking of countries with the highest ratio — behind only Japan, Greece, Singapore and Italy. The U.S. is in danger of losing its place as a reserve currency. If it does, the “the government would face challenges in financing its budget deficits and implementing its fiscal policies.” There will be higher inflation, higher borrowing costs, less access to capital, and a slower economic growth rate.
At $548.5 billion, the combined assets of the three banks that collapsed in 2023 eclipse the total assets of all banks that failed in 2008 by $175 billion, and are about $173 billion short of equaling all other bank failures since 2001.
Last year, JPMorgan CEO Jamie Dimon admitted he hunkers down in a war room once a week to prepare the bank for possible debt default. Graham Stephan, a real estate investor and personal finance expert, says key banks may be on the verge of collapse, such as Credit Suisse. In 2022, Dimon said there was a 20% to 30% chance the economic downturn would be worse than a recession.
Many believe it will dwarf the stock market crash of 1929. A former trader at CBOT told me that the crash will be bigger than the crash of 2008. He said the key factors to watch are when unemployment dips under 4% — which it has, and repo rates. The latter was a sign that prefaced the fall of Lehman Brothers. He said “gold and silver will not protect you.” Others in the financial industry say the crash is coming within the next 24 months, and many will lose their homes, which will be bought up by big business and rented out.
Jeremy Grantham, co-founder of Boston-based fund manager GMO, predicts that the coming crash “will be recorded as one of the great bubbles of financial history, right along with the South Sea bubble, 1929 and 2000.”
Even the left admits a crash is coming. Sen. Elizabeth Warren points to household and corporate debt as key contributing factors that could implode once interest rates increase, making debt payments impossible.
Mark Zandi, chief economist of Moody’s Analytics, and Jesse Rothstein, professor of public policy and economics at the University of California Berkeley, both warn that another close contested presidential election could cause massive financial disruption in the stock and bond markets.
Col. Douglas Macgregor (Ret) said in July 2023 during an interview that the situation is so bad there may not be a 2024 election. He said it will result in closing the banks for a couple of weeks, and violence and criminality will spill over into many areas of life.
David Webb, a former hedge fund manager, warns in a new documentary called The Great Taking that central bankers intend to seize private property. Dimon shocked people when he said in 2022 that the government may need to use eminent domain to seize private property from people for investing in green technologies to combat climate change. Webb said the banks will be shut down, and the ones allowed to reopen will be under government control, with everyone forced to use a centralized banking app. He believes it is impossible to have segregated funds that are safe from this.
Armstrong Economics suggests that civil unrest will occur in major cities, and they “will be out of food in 7 days when there are no trucks to bring it into town.” Martin Armstrong is concerned it will splinter the U.S. into three divisions; the South and Midwest Bible Belt, the Northeast, and the Pacific states.
Former investment banker Carol Roth said in a new New York Times bestselling book that it is important to acquire assets, since the globalists are trying to eliminate private property. She decided to write “You Will Own Nothing: Your War with a New Financial World Order and How to Fight Back” after hearing that one of the World Economic Forum’s predictions for 2030 was “You will own nothing, and be happy.”
For those worried about a potentially extended loss of power, internet, and phone services, one of the experts in this area, who goes by Praying Medic, published a book last month advising how to prepare and what to do once it happens. Steve Bannon frequently discusses the topic on his War Room show.
Someone extremely powerful and connected, who has access to the top financial and economic experts, asked me to write about this. It’s not a matter of if, it’s a matter of when. We all learned when the 2008 crash happened that the government will bail out the big banks and other big businesses like auto manufacturers, but the middle and lower classes will bear the brunt. Note that hardly anyone is blowing this off as a conspiracy theory. Get ready now.
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