How It Will End

 

Darryl Robert Schoon / Gold Seek

 

The amount of debt globally has soared more than 40 percent to $100 trillion since the first signs of the financial crisis as governments borrowed to pull their economies out of recession and companies took advantage of record low interest rates.

 

Debt Exceeds $100 Trillion as Governments Binge, Bloomberg, 3/10/2014

 

Capitalism, the bankers’ three hundred year-old ponzi-scheme, is a balancing act between the bankers’ credit and everyone else’s debt. In its optimal state, credit creates sufficient growth to pay society’s constantly compounding debts. When unable to do so, debt is paid by borrowing against future growth and in capitalism’s end game, aggregate debt exponentially expands until it can no longer be repaid except by exponentially depreciating paper money.

 

 

 

In 2010, in Will the US Devalue the Dollar, I wrote:  “… Today, the US, the world’s largest debtor, can no longer pay what it owes except by rolling its debt forward and borrowing more in what the late economist Hyman Minsky called ponzi-financing, financing common in the final stages of mature capital systems.”

 

“… the United States government and its agencies have, by far, the largest pile-up of interest-bearing debts ($15.6 trillion), the largest accumulation of unsecured obligations (over $60 trillion), the largest yearly deficit ($1.6 trillion), and the greatest indebtedness to the rest of the world ($4.8 trillion).”

Martin D. Weiss, www.moneyandmarkets.com, 2010    

 

Four years later in 2014, the aggregate amount of US debt is now $17.2 trillion of which the Federal Reserve has become the largest buyer; as China, for years the largest buyer of US debt, is losing its appetite for America’s increasingly suspect IOUs.

 

 

 

As a consequence, in what Professor Antal Fekete calls the world’s largest check-kiting scheme, the Federal Reserve has become America’s lender-of-last resort.

 

 

 

THAT WHICH CAN’T GO ON FOREVER WON’T

 

Central banks around the world are now printing money virtually out-of-thin air, virtual money, in order to provide the requisite liquidity that severely stressed capital markets require. This money, however, never reaches the economy-at-large. It is instead fueling asset bubbles in global stock markets sparked by the speculative frenzies induced by the bankers’ excess credit.

 

The credit boom is built on the sands of banknotes and deposits. It must collapse… If the credit expansion is not stopped in time, the boom turns into the crack-up boom; the flight into real values begins, and the whole monetary system founders.

 

Ludwig von Mises, Human Action, 1949

 

 

In Time of the Vulture (2007 1^st ed.) wherein I predicted an imminent catastrophic economic collapse, I wrote:

 

The collapse of the present financial edifice can come from many directions and from many causes. So will it be in the TIME OF THE VULTURE. When the abyss is no longer avoidable, it may be a dollar crisis that pushes us over the edge or it might be a failure of a major investment bank such as Goldman Sachs, JP Morgan, Citicorp, or Deutsche Bank or another overleveraged hedge fund like Long Term Capital Management or the inability of a small bank somewhere in the daisy chain of financial institutions to meet its obligations on a Monday morning.

 

In 1931 the failure of an Austrian bank, Credit Anstalt, set in motion a series of bank failures that was to plunge the world into the abyss now known as the Great Depression. Who knows what will be the cause this time? What bank? What currency? What default? What event?

 

Only one thing is sure. The present financial edifice, built on an inherently unstable foundation of paper money and ever-increasing mountains of debt, is vulnerable as never before. It may be a sudden movement or a gust of wind or a sonic boom; but whatever it is:

 

It can no longer be said it will be unexpected

 

HOW WILL IT END – R. BUCKMINSTER FULLER (1895-1983).

 

Last month, I spoke at the spring 2014 Liberty Mastermind Symposium in Las Vegas. The title of the event was Countdown to Collapse. There, I described how I had come to predict an event which to many was completely unexpected, especially by the pundits and experts expected to be aware of such an outlier.

 

In my presentation, I referenced two individuals, although well-known in certain circles, they are not often associated with the current crisis. The first was Buckminster Fuller. During his long and productive life, Fuller wrote 28 books, received 47 honorary degrees and 28 patents. He was a futurist, humanist, inventor (the geodesic dome, etc.) and after whom the carbon-based molecule, the Buckminsterfullerene, is named.

 

 

 

 

The Buckminsterfullerene, C₆₀

 (also known as the bucky-ball)

 

The Buckminsterfullerene is one of the largest objects to have been shown to exhibit wave–particle duality. Its discovery led to the exploration of a new field of chemistry, involving the study of fullerenes.

en.wikipedia.org/wiki/Buckminsterfullerene 

 

Fuller, however, was well aware of a coming crisis. In 1981, Bucky wrote that a catastrophic crisis—a crisis without precedent—was then in progress. Fuller described the crisis as a class-one event, an event set in motion by the Universe, i.e. God.

 

Humanity is moving ever deeper into crisis…it is a crisis brought about by cosmic evolution irrevocably intent on completely transforming omnidisintegrated humanity..into a completely integrated, comprehensively interconsiderate, harmonius whole. 

Buckminster Fuller, Critical Path, 1981

 

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