Donald Brynolf Swenson: Markets could be in CRASH mode within two WEEKS! WHY?

June 1 is a Thursday and this could be the psychological day of infamy for America. Our so-called Debt Ceiling issue will (most likely) not be finalized given the current mentality of our Congress by this date. The GOP has proposed a bill which would raise the Debt Ceiling by $1.5 trillion until May of 2024. The current debt ceiling bill is 'dead on arrival' in our Senate as the Democrats will not approve the GOP bill (so it seems). This means Biden must CAVE and/or a stoppage of excess spending must occur on June 1.

If this is valid, then a major CRASH in our stock markets is likely by/on Thursday, June 1 (less than two weeks from today). American is essentially broke as our revenues are now some $1.5 - $2 trillion less than our spending. The GOP does not want more taxes levied and the Democrats want no limitations on their spending. This means continuing deficits (and/or stoppage of much spending). Our economy is now slowing and tax revenues are declining. The END can be visualized IMO!

Income tax revenues are now declining. Witness the numbers here: www.usdebtclock.org. Also, total local revenues are declining as I write. Also, the Fed's monetary base is declining as is the M2 money supply. Even the Fed's balance sheet is declining as I write. We are now heading for a major CRASH in our markets and my prediction is that June 1 could be the crucial day of infamy. Watch and see if this prediction is valid. June 1 could be historic for America!

America is technically bankrupt and few seem to recognize our financial condition. The total assets of our nation are some $188 trillion and our unfunded liabilities are also some $188 trillion. If we add the other debts to our liabilities we are now in the negative and this means BANKRUPTCY for America. This condition can not be reversed as our entire economy is based on DEBT and Unfunded Liabilities! America is bankrupt and this situation will become obvious (to most) in the days and months ahead.

The current debt ceiling issue will likely bring all this reality into focus for those who desire understanding. You can witness the numbers here: www.usdebtclock.org. There is now no financial salvation for America as our leaders are totally polarized on most financial issues. The GOP wants to deal with the financial house of cards and the Dem's want to continue the charade (kick the can down the road). It's all coming to a head and my sense is that JUNE 1 is a key date. If nothing is resolved on the debt ceiling issue, then our markets will SPEAK IMO.

Investors are starting to sense that our economy is heading for trouble. As of today, our Central Bank (the Fed) has been able to deceive our investors with 'false' confidence as they continually MANIPULATE the prices of stocks and interest rates. It's all done by the PLUNGE PROTECTION TEAM (PPT) which operates out of the New York Federal Reserve building. Ronald Reagan started this program during his Presidency.

This Central Bank has a current policy of trying to lower the INFLATION RATE for the overall economy. This policy is now slowing down our economy even as many prices are still increasing (inflation). The combination of inflation and less liquidity will bring our markets into recession and then eventually a serious depression. The last GREAT DEPRESSION was some 90 years prior (1929 - 1937). We are now facing a similar (and much worse) event. See my missive on Keynesian economics for more understanding.

The Fed's policy is slowing the economy and the end result will be a HUGE recession and then a depression. The only hope would be a change in the mentality of the GOP so that no serious debt ceiling is imposed. This is very unlikely IMO to happen. The GOP is now wanting to IMPEACH Biden and with the recent Durham Report it is unlikely that the mentality of the GOP will change by June 1, 2023. Our Treasury (Janet Yellen) says that June 1 is the day of infamy for her spending policies. The manipulations will end.

Given the situation with our Congress, the policies of our Central Bank (to slow the economy), the polarization of our elected leaders, the ideas of impeachment surrounding Biden, the continuing deficits that grow over time, and the lack of international support for the dollar ($), I see no way that this set of conditions can continue past June 1, 2023, without some type of stock market CRASH. Investors have a date to focus upon and the date is June 1, 2023!

There is ONLY one option that might turn this scenario around for a short time period. It would be a pivot from the FED (our Central Bank) and a RETURN of QE (quantitative easing) at an elevated level. Our Fed could pivot and start a new QE program (what I call official counterfeiting of the dollar) and this might temporarily stop the trend towards a final collapse and a huge market CRASH. Watch the FED going forward. Our FED can counterfeit $$$$$$$$$$ into the trillions if they CHOOSE.

Money rules over this planet and the game of money is changing significantly. The Keynesian model of economics is essentially OVER and Biden's MMT (modern monetary theory) is also ending with this debt ceiling issue. The final straw is our FED and their decisions to potentially REINFLATE the economy with counterfeit dollars into the trillions. I think this is hugely UNLIKELY and this means JUNE 1, 2023, could be the DAY OF INFAMY for America. Watch and SEE!