This is Part 10 in the Money Series: Mom and Dad Normal learn about the debt ceiling
“So as we’ve explained,” said Sue. “If nothing changes, the U S must remain in ever-increasing debt, to keep the Ponzi scheme from collapsing. That means more and more money has to be printed by the Federal Reserve. And what is the Federal Reserve? It’s not an arm of government. It’s a consortium of banks. The banks, at their core, are acting in the interest of the Spoon Cartel, who hold the original debt of the nation.”
“It’s Foxes, who are busy guarding the hen house.” Abe offered.
“Yes, it’s the group of Witch Doctors and their Spoon Cartel, who owned all the wampum in the first place. They originally contributed to the U.S. Treasury, but that was generations ago, in the days of pirate ships and fledgling revolutionary governments. Is their interest in figuring out a way for the world to share equitably in their wampum?”
“Some would argue that it is. That we all hang together or we each hang separately. In the long term, capitalism at its best looks out for the interests of its consumers, as well as its wealth owners.” Said Mom.
“Sure,” said Sue. “Some would argue that. But those who argued that would not be invited into the meeting of the Witch Doctors. So no, their concern isn’t with making the world a better place. Their concern is keeping the Fox families well-fed, well-entertained, and well-endowed. So what do they do?”
“They set up a trade school across the bridge from Cambridge to teach future Henry Paulson’s to do a good job at guarding the family wealth,” offered Dad.
“Yes, yes, they do that,” Sue said. “But what else do they do?”
“They buy all the news media to make sure the public never understands economics,” added Abe.
“Okay, yes, they do that, too. But what really, really important thing do they do, that ensures their future?” challenged Sue.
“They move their money into the debt of other nations, ahead of the dollar collapse, so they won’t be hurt by it,” guessed Mom.
“Bingo,” said Sue.
“When the demand for the U S Dollar falls, U S Treasury Bond prices fall, which is doubletalk for interest rates rise. People become less able to pay their bills. Ultimately, the gap between rich and poor widens. It keeps widening, as unemployment rises. Eventually, the economy is so weakened it collapses. Money has so little value that people need wheelbarrows full of dollars, just to buy a loaf of bread.”
“So what does a poor schmo like me do, to protect my family?” Asked Dad
“Assume the collapse is coming,” said Sue. “Live like it’s definitely on its way.”
Next: How to prepare for the collapse of the global economy