To understand our current economic situation it is necessary to understand some history. It has been nearly 95 years since America's last Great Economic Depression. This historical event started on Black Tuesday, October 29, 1929. The New York Stock Exchange crashed and this led to major changes for America and the World.
The election of Franklin D. Roosevelt in 1933 started an awareness by the public that a great crash had happened and that new polices were needed if a new prosperity was to occur. FDR immediately called in the gold which American's owned and then revalued this precious metal for the markets. FDR assumed that gold was a major part in the formula which caused this Great Depression.
The public had lost confidence in the markets and this resulted in a run for gold as the last straw in the closet. FDR recognized the fear and loss of confidence and he called in all the public gold so a new 'faith' edollar could be established. This new dollar was a FAITH dollar with no tie to gold. FDR kept the tie to gold for our international partners and this did not end until Nixon closed the gold window in 1971.
The other major change which occured during the FDR administration was the adoption of a NEW economic model for the markets to follow. This NEW economic model was introduced by a British economist by the name of John Maynard Keynes. Keynes advised FDR to start a huge government spending program to restart all the private markets. Keynes said that governent DEBT was needed to restart the markets.
FDR bought into this Keynesian economic model (in 1934) and the entire WEST also adoped this model. The dollar was now a FAITH dollar (no tie to gold) and this meant that the government could spend new dollars created out-of-nothing by the Central Bank. The public would get their confidence back with new insurance policies and new government progarms so as to restart the economy. Trust in government was the mantra for investors and the public.
All this worked (mostly) and the NEW Keynesian model was adopted for most goverments on our planet. Debt was used to create SPENDING and spending would restart all the markets. Contrarian economists warned the public that eventually this DEBT model of Keynes would END (but they expected this would be some 90 years down the pike). As of this year we are nearly 95 years of operation under this Debt economic model. Keynesianism is now our problem and another END is now coming for our economy and the markets.
JP Morgan has recently announced to the Media that a coming huge market crash is soon here. JP Morgan should know as they are an insider to the thinking of our corrupt Federal Reserve Banking System. The timeline of Keynesian debt finance is nearly over as our DEBT is now totally unsustainable. This goes for most nations on our planet. FAITH money is now digital/virual money and this IMMAGINARY money is soon going to crash and vanish. It all should happen between now and October 29, 2024. That is my expectation.
We now need a NEW model for our planet. My model is based upon the elimination of all money units from our planet. All debt would also be eliminated. We are ending the model of scarcity which required MONEY as a tool. We are entering a model of abundance (once the crash is over and done) and this means that we can eliminate money from our system. Money is actually immaginary and without any relevance for our children and grand children. All this can happen over the next decade IMO.
It is now time to prepare for the JP Morgan stock market crash. I have anticipated this event for years. It is now here. My sense is that this crash will happen by October 29, 2024 (or sooner). The Biden political debacle is part of this history. His spending policies are soon over (as well as his political career) and this will advance the crash event IMO. Congress is now fully AWARE that our Debt is unsustainable and beyond any viable solution. America's national debt is over $35.8 trillion and our total debt is over $100 trillion. With unfunded liabilities the total is over $200 trillion
World debt, under the Keynesian debt model, is also beyond any solution. All this history should warn people that the day of reckonning is here. I have been writing about this history for over 10 years. Those who have read my blogs are fully aware of this history. Today's public, however, are mostly unaware of this history. It is now time to bring awareness to the public. Have a great day and think on these words.
I am: Donald B. Swenson, Economist/Philosopher, http://kingdomecon.wordpress.com.
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