On Mon, 05 Sept 1977 12:56:00 UTC, the spacecraft Voyager 1 was launched from Earth. Fairly recently this spacecraft left our solar system and entered into interstellar space. At the time of writing this article, after 42 years and six months, travelling at just over 38600 miles per hour, Voyager 1 is now just over 13.8 billion miles from Earth. Travelling at the speed of light, it would take around 20 minutes and 35 seconds to cover this enormous distance (see here).
I write the above because sometimes such enormous numbers are thrown around by politicians and bankers and I’m sure that many of us find it hard to visualise just how enormous these numbers are.
There was a time that Voyager’s 13.8 billion miles from Earth sounded like a mind blowing figure. Think then just how much the more than 700 billion dollars that the United States printed to stimulate the economy during the 2008 financial crisis really is. By comparison Voyager’s distance from Earth seema like a hop skip and a jump.
Fast forward to 2020 and nobody can help but notice that the stock markets are in turmoil. In the last few weeks the stock markets have lost around 30% of their value with some relief last Friday with the promise of 1.5 trillion dollars of stimulus. This is the equivalent of the GDP of Australia or Russia: Voyager 1 is suddenly looking to be still very close to Earth.
Some months ago the US government started bailing out the repo markets to the tune of 50 billion dollars a day, this with the promise that it was just a precaution that would only last a week or perhaps two. Months later, the repo bail out continues, up until last week the amount had merely doubled to 100 billion but now according to some estimates this is heading towards 500 billion a day with one trillion a day expected in the near future. By comparison Voyager 1 has barely left Earth’s orbit.
Let’s be clear about this, bailing out the repo markets provides the illusion of liquidity, various banks and financial institutions need this freshly printed money to keep the cash machines running, pay cash withdrawals and allow us to pay our bills. Without these bail outs, we would already be in Mad Max territory: this time is approaching though.
These markets died at the time of the 2008 financial crisis since they have been propped up with printed money. The 700 odd billion in stimulus used to bail out the markets in 2008 seemed like a lot but now we’re talking trillions, billion are now neither here nor there. This coming financial crisis, even before we’ve felt the full effects of it, has already consumed more cash in stimulus by exponents than the 2008 crash. This is the stuff of nightmares!
How long do you think that the US can print a trillion dollars a day to keep the banking system running? Which bank will crash first? You have to bear in mind that once this money has been printed, we hoi polloi are liable through taxation for the interest on the debt. Meanwhile the top 0.01% will use this worthless fiat currency to purchase tangible assets: what is coming up is the greatest wealth transfer in human history, the 2008 crisis was just a dry run.
Check this out from Inequality.org – apparently the top 1% of the world’s population own 44% of the world’s wealth: this though isn’t enough for them, they want it all. I’ve no objection to people turning a coin but this isn’t business, it is fascism.
Consider this US debt clock, with the US national debt currently standing at around 23.5 trillion dollars and rising exponentially: what do you think this figure will look like after the massive bailout that will soon be required?
A US taxpayer currently has to service (taken as an average) 190000 dollars of government debt before he provides for himself or for his family, this is soon going to be much, much worse. Most western countries are in the same state as the US, by the end of the imminent financial crisis we hoi polloi will be left scurrying around like rats for what is left and the top 1% will own much more than 44% of the world’s wealth.
What we are watching is a carefully planned wealth transfer and we would be naive if we thought that our politicians didn’t know what was going on, including that clown Boris Johnson. Perhaps we should ask ourselves just how our politicians plan to deal with the world of Mad Max as liquidity dries up and the cash machines and credit facilities run dry?
Well, coronavirus or Covid-19 seems very convenient for politicians. In the coming months as the bank runs begin and the world’s economies crash, by that time we hoi polloi will be in full lock down.
What with ever increasing travel restrictions, bans on mass gatherings, people being confined to their own homes, this is the stuff of a totalitarian police state.
What we need to ask ourselves now is what kind of world will we be left in after the coming financial and health crisis? Will we ever regain much of our freedom and independence in a totalitarian world where we’re all scrambling around for a much smaller and ever diminishing slice of the pie?
We have been led into this dire position by a long succession of fake politicians that never really represented us, their main job is to fob us off with smiling reassurances while they sell us out and betray us.
Maybe one day we’ll find truly honest and democratic politicians to represent us, until that time: never trust a politician!