By Gregory Mannarino TradersChoice.net
How does one do more than “unlimited?” Well, the European Central Bank just did it! And in case you are wondering, as always, the Federal Reserve must follow suit.
No two central banks on the planet are more in lockstep than the ECB and the Federal Reserve, these two central banks do everything in tandem.
Several weeks ago, the ECB announced an “unlimited bond buying program,” (and just by coincidence), the ECB did this on the same day that global bond yields began to spike in an uncontrolled manner…and yes, the Fed followed suit.
Here are the facts… Although the mainstream propaganda ministries have people focus on what the stock market is doing at any given moment, the KEY to the markets overall is the debt market—more specifically bond yields, and more specifically that, is the benchmark 10-year yield.
Since the global market meltdown of 2008, central banks have been, and continue to, buy all the debt. This mechanism has artificially suppressed rates therefore robbing savers blind moreover, and very successfully re-inflated both a stock market and real estate super-bubbles.
Central banks, none more so than the ECB and the Federal Reserve are on a mission to do one thing, which is be the lenders and buyers of last resort. The power of any central bank resides in its ability to inflate, that is, issue more debt. The more debt a central bank is allowed to, or called upon to issue, the exponentially stronger they become.
Every time a new program, or act, is instituted by Congress or any other “governing body,” it requires the debt to expand—and central banks are more than happy to lend.
Every single “developed” nation on Earth is multiple trillions of dollars in debt, and they must not only remain so, but must become even more in debt for the system to function.
Today the U.S. national debt sits at just over 30 TRILLION DOLLARS, and in just the last two years that number has increased by 20 percent. Do you think this is by accident? How about no.
What has been thrust upon the people of the world is a debt based economic system, it’s a twisted system designed to create not only nation slaves to the central banks, but its citizens as well.
The only way in which a debt-based system can function is to expand on the debt continually, and relentlessly. A debt-based system persists/can exist only if cash is borrowed into existence, the moment this mechanism stops, the entire system implodes.
Today the backbone of the debt-based system is a crisis-to-crisis mechanism, which gives politicians a blank check to borrow ANY AMOUNT they want into the system, and they sell these things to an unknowing public.
As an example of this, the senate just passed “The Inflation Reduction Act” which will cost nearly $400 BILLION dollars. This Inflation Reduction Act is being sold to the public as “energy security,” (a false narrative which every single administration tries to sell to the public), and to stop climate change. So, to put this into perspective—they are selling a lie—YOU CANNOT SPEND YOUR WAY INTO LOWER INFLATION! If you could spend your way into lower inflation, then why not spend 100 TRILLION so we can reduce inflation to ZERO!
All this spending is really doing is guaranteeing that inflation will continue to skyrocket, FASTER—but you are not supposed to know that. Moreover, global debt will BY DESIGN continue to inflate, making central banks more powerful than ever before.
Welcome back to reality.