Economy 
No Comments New Money
Our fractional reserve banking system creates new money in two ways; it prints it or borrows it into existence. I am not a financial advisor so any remarks are purely my personal understanding or observation. When new money is borrowed into existence it gives the illusion of growth. Being that debt incurs interest, as time passes the return on borrowing to attain growth is less and less productive.
Notice how much more the FED is printing/borrowing now compared to the 2008 collapse. Our national debt went from just over 10 trillion in 2008 to almost 12 trillion in 2010. As a percentage of GDP, 68% to 82%. 2021 sees almost 30 trillion in debt and 124% of GDP. Growth has become so anemic that the incurred debt can’t be covered.
We are reaching a tipping point where our debt can destroy the whole financial system, to put it bluntly, collapse. Once defaults are the normalcy the FED will have to print more instead of its current threat of raising rates.
The only way out is a return to honest money. Some think gold and silver and other precious metals and I do believe some commodity ownership is wise. However, I think cryptocurrency, after much attempted sabatoge, will become the medium of exchange. It’s already a two trillion dollar market and young people are more inclined to use something digital, safer, and less bothered by government intrusion. For a while the market will be choppy and remain the rollercoaster ride it is today.
But as stable coins offer a “middle” ground, safer if you will, and NFT becomes more common, then Bitcoin and the like will start replacing the world’s failing currencies. Governments will try to stop it but as players like Russia use it vs the U.S. dollar it’s usage will become commonplace.
I believe Bitcoin will trade in a sideways pattern for sometime. For those quick on their trade, there’s money to be made. The next phase of the card- house building by the FED make for a very risky trading time.
Buy endurables, things you need, things of real value. We knew the FED scam would bring us to this point and God help us to grab the reigns of power from the grubby mits of those who think they’re better than we.