Interest Rates - A Ticking Time Bomb?

With the world awash in liquidity i.e freshly printed fiat money pouring forth from various elitist instigated TARP, tax payer funded corporate/banker bailout and a seemingly endless succession of Quantitative Easing scams.. errm schemes, one begins to wonder where it is all going and what will happen when the chickens come home to roost?

For my part, non of it seems to be seeping my way, so I know the cash osmosis must be selective, If not to you or I, where then does the torrent wick to?

Not being a fiscal expert I tend to cut through the industry “cashanese” and try to stick to the short plain words of reality.

The gloriously expanded money supply is obviously not dispersed equitably or evenly, there are no air-drops of cash to the hapless strapped citizens, the loot is funneled directly into bank vaults and corporate coffers. In theory this bonanza is supposed to leak out and distribute itself across the spectrum. It is obvious it does not.

If banks would or could loan their stash or if corporations could or would expand operations domestically then perhaps some of the excess slop could find its way into the general economy… Since most citizens are submerged in preexisting debt, they are ineligible for more loans. Since corporations take their windfall offshore jobs here are not created. So… What happens next? Presumably more of the same.

The banksters, after they have siphoned off their bonuses and rewards are stuck with bulging excess, with a need to churn the butter, they take what they have and feed it back to the government cash cow. The flow of cash is a closed loop system, it does however… by nature reward the elite while imposing a hidden tax on citizens through inflation. Inflation Is A Tax There is a spirited discussion here with companion technical explanations. Does Quantitative Easing Benefit the 99% or the 1%? There is no prize for guessing correctly!
For a discussion on the hidden time bomb – rising interest rates.

So while that preamble addresses current affairs, What? I wonder… will future affairs bring about?

To be addressed shortly… here are a few of the smoldering questions to consider.

• What happens when interest rates rise, which they must surely do?
• What happens when imports and exports cease to flow?
• What happens as the steady increase of unemployment and under employment continues?
• What happens as individuals, municipalities, states, counties and countries default on loans?
• What happens when public services are hollowed out to a bare shell?
• What happens when pensions and entitlements cease to be available as advertised?
• What happens when the chickens come home to roost?

To discuss these questions and many others proceed to Beyond Prophecy Discussion Forum. This is a new feature and your membership and contributions are welcomed and appreciated.

Many think we have arrived already and we are undergoing recovery, if you are in that camp then good false hope and change to you.

I may be unusually cynical but cannot resist thinking a trap is set, perhaps once enough little fishes have swum into the “money for almost free” nets then the “interest rate raise card”… will be played.

It is likely the governments will be the significant holders of such debt because of banks selling them debt instruments and as such the governments will have unrestricted ability to collect…

This alone is a frightening specter,  the IRS or equivalent as a ruthless loan shark enforcer. Something to think about when you consolidate your debts against your assets.

I remember paying 18.5 % mortgage rate (usury), not that long ago. Many have forgotten how rapidly interest rates can go–from 0 to 20+ in the blink of a banksters eye.

I do know one thing, any political party striving for election would be foolish. Campaigning to lose would demonstrate guile and intelligence. Whoever is in the seat when the worst comes will go down in infamy, not accolade. A quintessential example of “Losing can be Winning” or conversely, “Winning could be Losing.”

Whoever is in the drivers seat when the final collapse comes… may spend decades after as a fringe party… or no party at all.

Expect to see the “dolt” card played again… as wily opposition tries to remain so.

 Stay tuned…