What's going on and what happened?

There are currently 6 major economic stimulus packages (money printing operations) running as of May 2020. Seen to the right is a list & timeline.

The most famous stimulus package is the 2020 $2 Trillion US Government Bailout of the Economy, but this is just a small piece of the giant money printing puzzle.

The 2009-2020 economic cycle has been the longest economic expansion in history.

The expansion was fueled by historically low interest rates and Fed money printing stimulus (QE), where Fed in co-op w/ banks increased the money supply by giving loans that were not backed by real savings, this requires continuous credit injection into the financial system.

Since the 2008 crash, the underlying economy has never expanded with the stock market. Stocks, real estate and investment prices climbed ever higher.

The banking system was already experiencing crisis events in September 2019, with Federal Reserve injecting $412 Billion into banks, so banks can make it through Christmas/NY 2020 and then continued injecting money in 2020.

Fed at first pretended this liquidity injection is not QE money printing, which was pushing stocks to new all time highs.

In 2019, before the virus lockdown started, a market legend predicted the 2020 stock crash. The virus lock-down was the catalyst, not the cause, which provided a good cover for all policy makers and politicians to blame the current global economic debt reset crisis on the virus.

Truth is that the Fed was already injecting vast amounts of money into the economy before the virus crisis started, and the virus is only a catalyst and excuse, while the global economic debt reset crisis has been brewing for decades.

Not many noticed this financial crisis development before the virus lock-down.

Bailout List & Timeline:

2019-09-10-2019-12-31

2020-01-01-2020-04-14

2020-03-24

2020-03-26

2020-04-09

2020-04-21

Truth is that the whole list above is financed by the Fed. Even the Government bailouts are financed by the Fed. There would very limited bailouts if there was no money printer available, such as The Fed.

Some people are asking "All this debt and QE money, but where is the inflation?", that is a valid question.
The answer is somewhat complicated, but here it is:


There are two types of money in fractional reserve system (most central bank systems in world today):

- Central Bank Money (obligations of central banks)
- Commercial Bank Money (obligations of banks)

When YOU deposit $1000 in cash (central bank money) into a commercial bank, with the current 10% fractional reserve system the bank can lend out $10,000 to a borrower (while holding your $1000 as reserve), creating a total of 9x more cash than deposited. This $10,000 is commercial bank money.

Where does the newly created money come from?
A bank clerk simply types into borrower's account:
Client Loan Size: 10,000 USD
Now a client can pull that cash, say for a car puchase.
When client pays back the money, the principal money
is destroyed, and the bank keeps only the interest.

All money on earth is debt to central banks or banks.
If the world decided to pay back all debt right now
there would be no money left and we still owe interest.
The world is in perpetual debt to bankers, and needs
to borrow ever more to pay existing principal
and interest.

Hyperinflation is built into the system by design.
The central bank can print enough money to buy
everything and/or devalue everyone's savings
to near zero purchasing power.
The powers that be don't care about money, they
care about power that comes with the money printer.

Back to the $10,000 typed into client's loan account:
The bank now holds a financial asset that is both an
asset and a liability at same time. Asset because it
pays interest, but liability because payment
can stop suddenly and the bank loses money.

Let's say in couple years of client's payments:
Bank's client has paid back $5000 in principal.
Bank's client has paid back $2500 in interest.

Now, the Fed decides to print cash. Bank wants it.

Fed buys the remaining loan of $5K from the bank.
Bank erases the entry Client Loan Size: $5000
Bank got $2500 in interest it kept.
Bank still got the $1000 deposited by YOU.
Bank can make another $10,000 loan now.
Bank also has $2500 to speculate with, say
stocks or make another $25,000 loan.

Free from the obligation, courtesy of the Fed, the
bank can now go speculate with it's new free
cash, lend it or put in other speculative practices
such as stock market, where all bankers know
the open secret, if Fed prints cash, then
everyone will buys stocks. Stock prices go up.
Banks have little interest to lend money with
interest rates at zero, so other investments it is.

The banks buy stocks from people/sellers
who have the extra cash to own stocks.
The seller gets the 'high price' as bank (buyer)
meets them, banks expect even higher prices,
the Fed is their friend. Now, wealthy people
or big corporations that sold stock have new
cash in banks. These folks who got extra cash,
most likely will not go spend it right away,
because they also have limitations on
consumption. They can only eat, drink, live
in so many things at one time. The cash is
idle in their bank accounts. The trickle-down
effect awards bankers and the wealthy first,
but does not easily reach the lower classes,
where consumption of new cash is immediate
due to paycheck to paycheck living.

This trickle-down effect fallacy cycle is
evident as Porsche and Ferrari is reporting
highest ever sales during the 2020 global
crisis. The extra cash made by the Fed
money printer has nowhere to go, so the
rich buy more toys, stocks, etc.,

The factory workers of Porsche and Ferrari
and other sought brands are all happy
that they have work during global crisis, but
these are skilled workers, and until they
pay for services from lower skilled workers
the money will not trickle down.

The trickle-down effect fallacy means that the people that are most likely to immediately spend the money and people that need it the most, will get it last, highly diluted, getting the breadcrumbs, after all other assets in upper-level classes have inflated, completely leaving the lower classes of society out of reach of homes, new cars, stocks, etc. The rich get richer and the poor get poorer with help of the Federal Reserve: The ultimate creator of inequality in the world. We suggest you research "the truth behind the central banking system" for yourself.

The government statisticians love reporting fake inflation numbers, by creative ways of modifying the Consumer Price Index, repeatedly removing very important factors from the statistics that would otherwise reveal CPI going up. Statisticians love to emphasize inherently strongly-deflationary goods such as electronics as one of main factors when calculating inflation. The lower class is getting screwed from all directions: fake trickle-down effect lies, while the government covers their money printer's back with fake inflation numbers.

First deflation, then hyperinflation. That is the argued road forward for the global world economy.

With the world indebted as never before, the biggest fear for the financial system is deflation.

Deflation occurs when velocity of money slows severely. During deflation things become cheaper and people hold off buying as tomorrow prices will be lower, and even lower next month. While waiting for lower prices, the economy grinds to a halt. While stocks, real estate and other investments go down in price, the debt burden remains the same, eating away the world's money at the same rate every month, while there's less cash to go around. Deflation creates a bad downward spiral for fractional reserve banks. The assets they hold lose value and risk making banks and other investment systems insolvent and bankrupt.

It is safe to say that most folks have no idea about implications regarding the $ trillions the Fed prints, numbers that are so big they are incomprehensible for the average man. The Fed can print $1 Trillion or $100 Trillion, it all looks the same.

We're on our way to a hyperinflationary depression end game.





Not all central banks are public. We were warned 200+ years ago by Thomas Jefferson about
inflation, deflation and private banks:


"I believe that banking institutions are more dangerous to our liberties than standing armies. The issuing power of currency shall be taken from the banks and restored to the people, to whom it properly belongs.

If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered."
-- Thomas Jefferson, Founding Father of the United States of America.

The Fed will continue printing, creating even more inequality. Analysts predict that the Fed will need to cut 1% on rates and go into negative interest rates or print another $3.3 Trillion, not pictured here in these graphics.