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MY CLUBHOUSE THESIS: HYPERINFLATION IS CLOSE

Discussion in 'The Kruse Longevity Center' started by Jack Kruse, Mar 11, 2021.

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  1. Jack Kruse

    Jack Kruse Administrator

    "When you take rates to the zero bound you force institutional investors to search for higher yield. It is the capital markets where you zero interest rate policy flow through. One of the reasons we are seeing banks step back today is that the economics…"

    Bingo. Whee! [this will not end well]

    [​IMG]
     
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  2. Jack Kruse

    Jack Kruse Administrator

    Nah there is no wage inflation......LOL
    MetLife is raising its U.S. minimum wage to $20 an hour from $15 https://trib.al/vkMzMXy
     
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  3. Jack Kruse

    Jack Kruse Administrator

    Why would major corporate CIA sponsors like Palantir buy gold for a Black Swan event? Might it be they know something is coming soon economically? Or might be they laundering gold out of Afghanistan for the government? A black swan is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences. Black swan events are characterized by their extreme rarity, severe impact, and widespread insistence they were obvious in hindsight.

    If you think it is economic reset vs theft of afghani gold the clue might come in the number of gold bars involved.

    Palantir has a balance sheet of something like $40 billion. For a company worth over $40 billion, an investment of $50 million is like the average person putting a hundred dollars into gold. Who only puts the equivalent of $100 away in case the world comes to a halt? No one, unless you are laundering gold.

    What they want people to believe: https://nypost.com/2021/08/18/palantir-buys-50m-worth-of-gold-bars-to-counter-black-swan-event/

    What they really might be up to:
    https://www.nytimes.com/2012/12/16/...-out-of-afghanistan-officials-wonder-why.html
     
  4. Jack Kruse

    Jack Kruse Administrator

  5. Jack Kruse

    Jack Kruse Administrator

    The Treasury General Account decreased by almost $100 billion last week. Due to the debt ceiling, the US Treasury has had to go much lower than its quarterly target. They want like $750 billion in the account but it's about half that now.
     
    GavinH, John Schumacher and ND Hauf like this.
  6. Jack Kruse

    Jack Kruse Administrator

    For the second year in a row, U.S. gamblers are missing the off-ramp in markets, on the basis that they are uniquely immune from reality. A delusion that will be once again unrequited in the 4th Q debacle I see coming.

    Might the confluence of real change be the Cutter Incident 2.0 with a concurrent market crash that completely unhinges the Fed?

    [​IMG]
     
    John Schumacher and GavinH like this.
  7. Jack Kruse

    Jack Kruse Administrator

    I support this message.

    [​IMG]

    Bitcoin is the vaccine that will free you of viral tyranny created to bring you future economic tyranny.
     
  8. Jack Kruse

    Jack Kruse Administrator

    In 1921-1922 Germany, all investments were going to the moon, people were ecstatic thinking they were getting rich, but really it was just the beginning of their currency hyperinflating
     
  9. caroline

    caroline Moderator

    When leaving the house this morning at sunrise ....we have to make sure we have I.D. with us and a mask and we can't go more than 5k from home....and we can only go out for exercise or 1 person can go for food or doc appointment.

    Since I am of European heritage ....it feels like we are in Nazi Germany.

    And BTW - no covid in our area - never have had.

    On the radio this am .....vaccine has been approved in the U.S.?????
     
  10. Jack Kruse

    Jack Kruse Administrator

    You are. I warned you to leave.
     
  11. Jack Kruse

    Jack Kruse Administrator

    Reminder: A taper announcement does not equate the Fed ending asset purchases or reducing their balance sheet. The Fed will keep buying assets for months to come at a rate significantly higher than during the 2009 financial crisis.
    And that with several Fed officials already having admitted to asset purchases being the wrong policy in this environment. The Fed is openly engaging in the wrong policies and will continue to do so into next year. Ponder that.

    If in any professional setting you know your doing the wrong thing, admit your doing the wrong thing but keep on doing it for months to come you’d get fired on the spot. If you can start QE with 0 notice you should be able to end it on the spot if it’s the wrong thing to continue
     
  12. caroline

    caroline Moderator

    I completely get what you are saying and what you have said all along and appreciate it .....but where would we go???? In my limited knowledge I can't come up with one place we could move to.
    We always loved the Bahamas and the Caribbean but they are a hot bed of drugs etc and they suck politically [what country doesn't]... Maybe Costa Rico?

    This plandemic is worldwide is it not? It seems to me that we all are in the same position of jumping from the frypan into the fire - no matter where we live.

    I guess if we have multiple bitcoins we could just keep moving around ....
     
    Last edited: Aug 27, 2021
  13. caroline

    caroline Moderator

    I am totally awestruck by how fast the majority of the population has been brain washed.....
     
    DebraGM likes this.
  14. Jack Kruse

    Jack Kruse Administrator

    $14.2 Trillion of negative yielding debt!
    [​IMG]
     
    John Schumacher likes this.
  15. Jack Kruse

    Jack Kruse Administrator

    The Fed's balance sheet has hit another all-time high at $8.35 trillion.
     
  16. Jack Kruse

    Jack Kruse Administrator

    Jobs report disappoints — only 235,000 positions added vs. expectations of 720,000
    https://www.cnbc.com/2021/09/03/jobs-report-august-2021.html

    Clubhouse thesis is intact.

    Ask yourself this:
    How do you miss half a million jobs off an estimate? How?

    Answer:
    When you are lying to the public in an economic war against the people at the end of a debt cycle. Political effects always lead to spike hyperinflation that is not transitory and it ends in a deflationary spiral.
     
  17. Jack Kruse

    Jack Kruse Administrator

    What you're told by the gov't: "taxes redistribute wealth"
    What's really happening: "tax the poor, give to the rich"

    As if the 2008 banking bailouts didn't teach us that game plan
     
    JanSz likes this.
  18. Jack Kruse

    Jack Kruse Administrator

    LATEST: More cracks showing up: Philippine Airlines filed for Chapter 11 bankruptcy in New York with a lender-supported plan that helps the island nation’s main carrier recover after the pandemic devastated global travel.
    https://www.bloomberg.com/news/arti...nes-files-bankruptcy-as-travel-fallout-mounts

    Hyperinflation will default into a deflation spiral.

    • Deflation is a scenario where there are falling prices of goods and services across the economy.
    • When deflation is occurring, businesses and consumers often slow their spending since they expect prices to fall further.
    • Deflation can cause a recession or slowdown in economic growth since consumer and business spending are two key drivers for growth.
    • Deflation is the opposite of inflation, which represents widespread price increases of goods and services in an economy.
    • Deflation will be felt less in third world. It will be magnified in the US. It is wise to think about an exit plan from the 1st world.


    • In the short-term, deflation impacts consumers positively because it increases their purchasing power, allowing them to save more money as their income increases relative to their expenses.
    • In the long-term, deflation creates higher rates of unemployment and can eventually cause consumers to default on their debt obligations.
    • The last time the world experienced an entrenched period of deflation that lasted for many years was the Great Depression.
    DEFLATION IS THE BOUNCE AFTER INFLATIONARY SPIKES

    Deflation tightens the money supply because there's an increase in real interest rates, causing consumers to save money. It hinders the revenue growth of firms, potentially causing lower wages and layoffs for workers. This cycle leads to higher unemployment rates and lower growth rates. The wise realize this EARLY when they live in the 1st world and they plan to go to the third world where unemployment is already higher than the first world. Their assets in this area will be more stable on a relative basis because their floor is already low and stable.

    Why should consider leaving the first world during times like this?

    During times of deflation, since the money supply is tightened, there is an increase in the value of money, which increases the real value of debt. Most debt payments, such as mortgages, are fixed, and when prices fall during deflation, the cost of debt remains at the old level. In other words, in real terms–which factors in price changes–the debt levels have increased.

    Another reason you need to leave the first world?
    Any debts you have now will crush your financial future.

    Let's say as an example, the government of Greece owed $100 billion to the United States in the previous year. Thinking in terms of oil, the government could have bought 100 million barrels of oil. However, this year, Greece is experiencing a deflationary period and could buy 200 million barrels of oil with the same amount, since the prices of goods and services have decreased. However, its debt has stayed the same, but now the country is actually paying more–200 million barrels of oil as opposed to 100 million. In other words, after deflation, Greece would be paying the U.S. 200 million barrels of oil worth of money to pay their debt. As a result, deflation can cause the real value of national debt to rise.

    It will do the SAME TO YOUR PERSONAL DEBT.

    Terminal Deflation Is Coming
    Central banks’ interventions in the pandemic economy are unprecedentedly vast—and not nearly enough to prevent the next step in this reset.


    Deflation is the opposite of inflation, deflation often follows acute inflation shocks in a contagion. This represents widespread price increases of goods and services in an economy.

    The U.S. Federal Reserve has established nine new lending facilities in its efforts to supply the entire world with dollar liquidity. Buying all manner of private and public debt has expanded the Fed’s balance sheet from $4.1 trillion in late February to over $6.5 trillion by mid-April. Today it is now 9.2 Trillion dollars and it is growing at unbelievable rates.

    The Fed was injecting about $1 million into the financial system every second, with a declared upper bound of infinity in Feb - June. Today it now close to 1.4 million per second.

    Sailing in uncharted waters invites speculation about what sort of dangers might sink the ship. One common failure scenario for the Fed’s new monetary policies is the fear that $1 million per second for the indefinite future will cause a short term inflationary disaster. That fear is intuitive, widely held, and influential. TRANSITORY has become the common word used by Jerome Powell. It is also completely misplaced. Economic history suggests that non transitory deflation, not inflation, is by far the more likely—and in some ways the more dangerous—destination of the Fed’s current trajectory without yet more unprecedented action.

    Weimar Germany is an obligatory fixture of any dire warning about the threat of expanding the money supply or government overspending. The example is also widely misunderstood. The hyperinflation of 1923 was not the result of a central bank mindlessly printing money, nor of an overly generous level of government spending, but rather of political crisis. The initial political crisis was the lockdown response to COVID. This will lead to vaccine mandates by politicians using corporate leaders tied to the WEF reset plan. It is a political action againt the people.

    Most miss the context of what hyperinflation means.

    The Weimar government—which lacked the political legitimacy to either raise taxes or obtain loans—printed money to paper over the ongoing violent distributional conflict triggered by billions of marks of reparations demanded by the victorious Allies (by force, in the case of France and Belgium’s occupation of the Ruhr valley). This story repeats itself in most of the classic instances of hyperinflation, whether the assignats of Revolutionary France, Soviet Russia during the country’s Civil War, or the worst recorded hyperinflation ever, which was Hungary in 1946. Each was a case of an intractable political crisis in a postwar government with insufficient legitimacy to collect taxes and no access to foreign capital markets. Contrary to Milton Friedman's theories that inflation is ALWAYS comes with monetary action , history suggests hyperinflation is always and everywhere a political phenomenon.

    THIS IS THE BIGGEST MISTAKE THE FED IS MAKING NOW.

    The US gov't soon won't be able to collect taxes because of the pulse of hyperinflation they create. Everyone will soon see their transitory idea blew up. They will be behind the eight ball. The next shoe to drop will be the beginning of a deflationary spiral in the USA because of this error in Fed policy.

    In September 2021, COVID response by vaccine mandates will be the new political crisis that opens the gates to deflation. Lockdowns were and are the political cause of the deflation spiral that comes after the inflation pulse. Time is running short to make your plans.

    If you think I am wrong think about this:

    Imagine believing that the virus closed the economy rather than the lockdowns. This FRED chart data says something else.

    [​IMG]
     
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  19. Jack Kruse

    Jack Kruse Administrator

    Political effects always lead to hyperinflation and default into deflationary spirals. This is part of the plan.
    Boris Johnson is about to unfollow the science.
    [​IMG]
    In the US what is the correlate?

    The politics of vaccine passports and how healthcare could collapse onder the power of healthcare workers leaving enmass in the 4thQ
     
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  20. Jack Kruse

    Jack Kruse Administrator

    Good results are difficult when indifference predominates. You must seek your answer and not rely on medicine or the government. When we are seeking our answer, we cannot be indifferent about the questions we ask, because we want the answer that brings transformation. So, the first questions that lead to the right answers we must ask of ourselves: Am I making a positive deposit into my future? What will I reap from this decision? What is motivating me to take this action? When we ask ourselves the right questions we will lead ourselves to the right answers. The problem is not to find the answer, it's to face the answer. Begin to live with the answer then die with the question.



    The Black Swan Mitochondriac learning strategy can be stated in 3 points:

    1. Continually ask "Why?"

    2. When you learn something, learn it to where you can explain it to a child.

    3. Instead of arbitrarily memorizing things, look for the explanation that makes it obvious.



    Numbers don‘t lie. Politicians and journalists now do. This is why the first amendment is dead now and we have to rely on amendments two, four, and six for our coming safety. It means the SCOTUS is where our trust lies. Politicians lying to us, this will lead to a hyperinflation spike and end in 2.5 X deflation spiral compared to the Great Depression. This has undermined my trust in the government's fiat money and the government itself.
     
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