Let’s start by explaining the government’s current situation…
The government is operating in a way that puts them continually farther into debt.
They are pinned down by payments like social security, medicare, discretionary spending, and interest expenses on the debt.
They’ll continue to borrow until the lenders won’t give them any more money for being too high risk of defaulting.
Then, the government would turn to the Federal Reserve and ask them to print more money.
However, the Fed is politically independent so they could say no.
Recently, Jerome Powell, a chair of the Federal Reserve, was asked if they would help finance the government’s debt.
He answered and said, “Under no circumstances.”
Joe thinks that either the government will try to take printing power or other banks will lend at a discount to the government. But right now, we don’t know!
If you think about it, the USD is one huge Ponzi scheme. But, it’s working. We don’t know how long it will work though.
People say our economy is in such bad shape, but compared to what? Compared to other countries, we’re doing alright.
If the world reserve currency changed from the dollar, what would it change to?
Right now, there is no better alternative, so I think it’ll stay for a bit longer.
If banks are regulated and subsidized constantly by the government, then over time, the government can mold the banks into whatever they want them to be.
Do we want banks to be controlled by the government? No.
If this happens, there will be about 6 national banks that are all controlled by the Fed and they would be your only option.
Soon, one central bank would regulate all cash flow in the U.S., which makes it easier to use, but also it is manipulated easier by the potentially tyrannic government.
So, what’s with the banks?
The threat of bankruptcy is urging the government to change laws or force the Fed to change policies.
In the meantime, I suggest educating yourself and preparing for these unknown events.
That’s it for today!
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DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the author