Many Americans have been predicting this for well over a decade, but it appears the big axe is finally set to swing at America. Amidst a spate of global currency moves causing seismic shifts in global assets, military conflicts are fast enveloping the planet. An increasingly dysfunctional US government struggles over war with Iran, which incidentally just dumped the dollar, in a domestic environment that is steeped in racism, police brutality and irrational fear without end. Our water supply is being swiftly contaminated, all over the country, by fracking. And above all, corruption and lies are being exposed on the internet at breakneck speed, making it painfully obvious, to even the most political clueless, that something terribly wrong is about to happen.
With this as a backdrop, the Fed appears set to place the final nail in the coffin by implementing negative interest rates that will almost certainly cause a run on the banks, the likes of which Americans have never before experienced.
If it happens, it will be a crisis from which America will not recover.
The usual suspects are claiming, as are experts from the libertarian wing, that the move is necessary to stave off a drop in demand for exports, resulting from the flood of euros initiated by the ECB and the allegedly concomitant strengthening of the dollar:
I predict that the Fed will start charging negative interest rates on bank reserve accounts, which will ripple through the markets and result in negative interest rates on savings at banks.
I make this prediction only because it is the logical action of the Keynesian managers of our economy and monetary policy.
Our exporters will scream that they can’t sell goods overseas, due to the stronger dollar.
So, what is the Fed’s option? Follow the lead of Switzerland and Denmark and impose negative interest rates in order to drive down the foreign exchange rate of the dollar.
It is the final tool in the war on savings and wealth in order to spur the Keynesian goal of increasing “aggregate demand”.
If savers won’t spend their money, the government will take it from them.
Of course, the not so obvious outcome will be a run on the banks and massive panic to spend those dollars before they are worthless. That in turn will cause a run on the supermarkets and a death spiral of hoarding by a largely armed suburban population, who will have to fend off hoards of urban marauders scrambling to survive as supplies dwindle. This will not be pretty.
At this point, there’s not much the average American can do except prepare (for the worst) and work hard to avert complete and utter chaos by continuing to share knowledge, especially with neighbors (because communities where people talk to each other are better able to weather the storm of societal breakdown).
But there is still one last hope for America: rally behind the only thing that can save this sinking titanic – interest free public banking in every state of the nation, controlled by local governments and empowered to re-employ the masses to rebuild a crumbling national infrastructure and coordinate plans to ensure that agribusiness meets the immediate needs of local populations.
I don’t like or agree with what I’m fixin to write but there is a creditor and debtor relationship with banks and we are the debtor. And the debtor has no say. And it’s their bank account not yours they let you use it and that is all covered in their terms of agreement.