Global chaos – what will the banking elite do now?

Global Chaos 2019

Protests have broken out in many countries across the globe, with citizens unhappy for a variety of different reasons. Some are protesting over economic conditions, others are protesting over tax hikes. Elsewhere protests are breaking out over controversial laws or prison sentences imposed by governments.

Governments are also busy resolving a variety of governance issues as well. Brexit, Trump impeachment, Canadian elections, U.S 2020 elections, and Middle East wars, just to name a few. At this time in October 2019 here is the list we have of countries experiencing protests and unrest:

  • Lebanon(economic),
  • Catalonia (separatists),
  • Chile (economic),
  • Ecuador (economic),
  • Iraq (ethnic disputes),
  • Yemen (proxy war between the Saudis and Iran),
  • Mexico (El Chapo’s son escape with the ongoing gang drug violence throughout Central America),
  • Hong Kong (China control dispute),
  • Kashmir (India Pakistan disputed region),
  • Tunisia (elections),
  • Algeria (elections),
  • London (Brexit and climate change protests),
  • Syria (Turkish incursion into North Korea),
  • Africa (various Islamic factional attacks),
  • U.S. (ongoing street battles between Antifa and Trump supporters),
  • France (foiled 911 terrorist attack and the ongoing yellow vest protests), and
  • Netherlands (climate change protests snarling traffic – various other countries as well).

Perhaps not a complete list and each protest have varying degrees of violence. Some have even died. We won’t go into each one of the protests, as it would take a separate article on each to understand. The point here is that the globe is angry and taking it to the streets. Why?

Most of the protests are economic-based. Or at least disputes over governance that would result in an economic change in the populations. Some blame global wealth inequality – regardless if it is envy based. News Forecasters asks, what is the response of the banking elite to calm the populous? After all, “idle hands are the workshop of the devil.”

The short answer is, print money – and print it fast! Central bankers around the globe to various degrees are re-energizing their QE programs – though they don’t want to call it QE, because the name QE has turned into a bad word. Looking at the inset chart, one could get the impression that the Fed is panicking. Why such a quick turn in policy?

Looking at the longer-term balance sheets of global central banks, it has been relatively stagnant, since 2016. News Forecasters believes this is about to change. Central bankers are about to push rates even lower and debase their currencies further. Other global central bankers will follow the Fed’s lead and jump into the same game.

People’s QE is one idea that is starting to be floated as an idea. European Central Bank President Mario Draghi said, “the Governing Council should be open to ideas such as Modern Monetary Theory, while noting they’re closer to fiscal policy and should be directed by governments.” News Forecasters believes some form of people’s QE will happen. It may just be called something else.

The other alternative is to return to sound monetary policy (fixed monetary base). But this for sure will only create an instant global recession, or worse yet a depression. Central banks really have no choice but to extend and pretend – debase the currencies. They know if they don’t, the pitchforks for them will come out in unprecedented force – literally running for their lives! Making the current global unrest look like a picnic.

The unfortunate reality is, that in time, the currency debasement, will increase the wealth inequality even further. The rich can borrow and buy assets at today’s currency value (at low-interest rates) and repay in the future with a more valueless debased currency in the future – the poor cannot. At some point in time, this cycle of monetary insanity will stop. At that point, it is a financial disaster – ending in war. 

News Forecasters believes we are not quite there yet (perhaps 2 to 5 years), but we for sure are getting closer. If you are poor, perhaps now is the time to spend a little money and invest in a gas mask – you may need it shortly.

A video presentation of this subject:

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