As global inflation/stagnation/recession envelops less developed countries, the likelihood of them having the ability to pay their debts is diminished to – zero. The largest debt holders of these African, Asian and Latin America nations are China and Japan. But middle east countries are also on the line for massive debt agreements, including Iraq. In 2020 before the ravages of the WHO induced Pandemic, outstanding debt of developing countries topped $11 trillion. The debt service is roughly $4trillion and growing.
Debt relief means a country is absolved of its obligation and the countries or institutions holding the debt write it off as a permanent loss. In that context, it is not unlike the student debt writeoff – the end result is further devaluation, further inflation, and further poverty. A cycle that is created every few decades as a sort of Cartel RESET.
Micro-loans were the newest instrument used to collateralize countries into default given interest rates as high as 40%. A Cartel Arrangement – albeit legal. The Green Fund created for Climate Change is such a micro-lending scam. The funds absconded from various country’s taxpayers are deposited into international banks which use the funds as regulatory deposits to make micro-loans.
Countries facing default today include: Ukraine, Sri Lanka, El Salvadore, Ghana, Egypt, Tunisia and Pakistan. In total 40 countries are facing this potential.
While the purpose of the ragland sanctions against Russia was to initiate their debt default, the sanctions backfired horribly. Exploding gas prices and alternate buyers in the wings proved a massive win for Russia and a further angering point to the Cartel. In retaliation, the Cartel doubled down to advance their RESET more quickly.
Defaults have a number of consequences:
For some countries it means a transfer of ownership – as in the spoils of the country now belong to the debt holder. Or it means internal chaos and a warlord mentality similar to The Dark Ages. Sri Lanka. During the Obama Regime – the Federal Cartel purposefully kept interest rates at 0% to entice developing countries to borrow. It was also the recipe for a recession recovery – LOW interest rates!
Because interest rates are now up 2.5 basis points with more next month the recession has created shortages some real and some manufactured. Tourism, which is the basis of many countries recovery from Lockdowns has defaulted given the rise of airfares hotels and related costs. These countries are frantic to reconfigure their debt. Too late. Because this is the exact stage the Cartel desired.
With the US Federal Reserve Cartel ramping up interest rates they exasperate the global debt defaults while devastating US industries, most specifically the Construction Industry.
The US Construction Industry is a $1.5 trillion annual revenue source employing 7-10 million workers. When this industry falls the related dominoes are mind-blowing! The manufacturing and mining segments are dependent on construction.
Instead of ‘preparing’ for this inevitable crisis, the Biden WH is busily spending more untold dollars on bailouts, military inventory depletion, Ukraine, green failures, and literally anything that has absolutely zero VALUE to preserve or reignite our economy. 2024, is too late.
If we look at the economy under Trump’s policies, the global condition was a positive. But in a mere18 months, The Cartel has managed to destroy the US oil industry, US food industry, US auto industry, and now the US construction industry. We don’t have 2 more years.
With a perfect credit score today’s mortgage rates are pushing 5.625% to nearly 7% – depending on your state. Insurance rates have risen as well due to crime stats. Rentals have gone up as much as 40%. All while job cuts increase 10% to 20%!
As a result, Powell has declared Americans will “feel the pain”! That PAIN will be caused by Gerome Powells adherence to the All Might Cartel dictatorial regime.
Comparing the economic effects to the Carter years is not a valid comparison. The US productivity for the first quarter of 2022 was more than double the highest negative during the Carter regime. Borrowing rates reached as high as 25% during the Carter years extending the recession into depression status. The Federal Cartel kept raising rates as a means to stagnate and prolong ‘the pain’ reaching a 20% prime rate. The same economic responses a corrupted Powell’s employs on Americans today.
Carter’s recession lasted from 1980 until 2003 before GDP recovered to its 1979 levels. And unemployment hit 10.6%. When Powell and the Progressive economists say this recession will last thru 2023 – the reality is the recession is scheduled to last until 2030.
Like the Biden WH Cartel, Carter claimed the reason was an oil shortage – economists immediately tightened the money supply with the reasoning that high inflation would subside high unemployment. It Did Not WORK!
Everything Carter did – failed The People. And that exact same destruction is Gerome Powell’s blueprint. Including the Regime blaming the entire global destruction on Russia and High oil prices despite available inventories being shuttered.
But Carter was a Cartel Elite. One of the worst President’s in history – Biden is likely set to beat that Legacy. Not just for his incompetency, his dementia, and his failures, but for his abject corruption within the frame of Hunter, China and Ukraine.
Zelenskyy, the Ukraine comedian bohemian, still believes that Soros is going to force the global economy to ‘rebuild Ukraine’ – demanding $1 trillion for the ‘project’. But our money and weapons will be completely depleted. And Ukraine will become ‘dust to the wind’. Along with a host of debt riddled developing nations.
UNLESS We Rise as ONE and awaken to the Chaos before it consumes us!