Is the US headed for another Great Depression? I'm not a financial guru but here's what I know...
PRESIDENT TRUMP: “The fact is, we’re probably heading into a Great Depression, something I’ve never said before publicly. You know, I don’t believe I’ve ever said that before. It’s a hell of a statement to make and I hate to make it.
The choice in this election is between a Biden economic bust – and it’s going to happen and it’s going to be ugly – or a Trump economic boom.
Under Joe Biden, the Marxists, fascists and Communists are not just tearing down statues. They’re tearing down our economy. They’re dismantling our borders, they’re destroying our laws. They’re looting our middle class and mutilating our children. We can’t let that happen. I’m not going to be Herbert Hoover. We need to stop that sucker.”
So far, Trump’s predictions have ALL come true. What will it mean for America if he’s right and we let it happen?
People hear terms like recession and depression but don’t really understand what that means for their lives. Unfortunately, I believe that most people quietly pretend this won’t happen and, if it does, think it will NOT impact them. THEY WOULD BE WRONG.
Everybody knows the stock market crashed in 1929 and lost 85% of its value but what they don’t know is that the Great Depression literally lasted 10-15 years. It took WW2 to end the last Great Depression. Will they use WW3 to end the next one? That’s the plan, IMHO.
Three years after the crash - by 1933 - the banking system had collapsed, over 25% of the labor force was unemployed, and prices and productivity had fallen by nearly 70%. Reduced prices and reduced output resulted in lower incomes in wages, rents, dividends, and profits throughout the economy.
Factories were shut down, farms and homes were lost to foreclosure, businesses were abandoned, and people were starving. Lower incomes and unemployment meant the further inability of people to spend or save their way out of the crisis, thus perpetuating an economic slowdown in a seemingly never-ending cycle.
WHY DID IT HAPPEN?
The Great Depression began in the United States as an ordinary recession in the summer of 1929 - which is widely believed to have stemmed from tight U.S. monetary policy aimed at limiting stock market speculation. Biden is employing the same type of monetary policy in an attempt to destroy the economy so the NWO can “build back better.” Same thing - different day.
In 1928 and 1929, the Federal Reserve had raised interest rates in hopes of slowing the rapid rise in stock prices. These higher interest rates depressed interest-sensitive spending in areas such as construction and automobile purchases, which in turn reduced production. Some scholars believe that a boom in housing construction in the mid-1920s led to an excess supply of housing and a particularly large drop in construction in 1928 and 1929.
In other words, the Fed motivated the public to not spend or buy homes and to instead buy dividend paying stocks and U.S. Treasury bonds from 1926 to 1929. This is the reason the S&P 500 went to a bubble high in 1929. The high real yields motivated the public to avoid investing in real estate and other real assets. Today the hedge funds are buying up residential real estate so the average person can’t!
SOUND FAMILIAR? In other words, the Fed used interest rates to manipulate and economy and literally CREATE THE GREAT DEPRESSION. They are doing the same thing again - but this time they are also paying people not to work and creating inflation by reducing supply and raising energy prices.
By the fall of 1929, U.S. stock prices had reached levels that could not be justified by reasonable anticipations of future earnings. Panic selling began on “Black Thursday,” October 24, 1929. Many stocks had been purchased on margin—that is, using loans secured by only a small fraction of the stocks’ value. As a result, the price declines forced some investors to liquidate their holdings, thus exacerbating the fall in prices.
Between their peak in September 1929 and November 1929, U.S. stock prices declined 33% AND would eventually go on to drop 85% over the next 3 years. This is what is referred to as the Great Crash of 1929.
Mortgages were unaffordable from 1926 to 1929 because the real yields for U.S. Treasury bonds and the S&P 500 Dividend were near all-time highs.
The stock market crash reduced American aggregate demand substantially. Consumer purchases of durable goods and business investment fell sharply after the crash. The financial crisis generated considerable uncertainty about future income, which in turn led consumers and firms to put off purchases of durable goods.
Although the loss of wealth caused by the decline in stock prices was relatively small, the crash also depressed spending by making people feel poorer (which destroyed consumer confidence - the number one measure of the economy - IMHO.)
The decline in stock prices was one factor contributing to declines in production and employment in the United States. Real output and prices fell and industrial production in the United States declined 47 percent and real gross domestic product (GDP) fell 30 percent. The wholesale price index declined 33 percent (known as deflation).
People think they know what another Great Depression means (they say no big deal!) because they lived through the “Great Recession of 2007-2009.” There is NO comparison. The severity of the Great Depression in the United States becomes especially clear when it is compared with America’s next worst recession, the Great Recession of 2007–09, during which the country’s real GDP declined just 4.3 percent.
Imagine something 10 times worse!
This is what the DJIA looks like over time - inflation adjusted. The market peaked in 1929 and reached a new low in 1932. The market peaked again in 1965 and dropped to a low in 1982. Since then it’s been rising - with a few major downturns in 2002, 2009 and during COVID - but imagine if the Dow declined today like it did during the last Great Depression & lost 85% of its value - down from 35,000 to 5000? How would that impact your life and your finances and your psyche?
On the other hand, gold prices peaked in 1933 when the DJIA was at its low point and again in 1980, 2011 and 2020.
Many people ask why gold isn’t rising faster…here’s what Rickards says. I like Rickards.
We’ve all heard about BRICS by now - the group of countries (Russia, China, Brazil, India, South Africa, and more) who want to control the world’s oil and the world’s money and dethrone the US dollar as the world’s reserve currency. Does this mean anything to the average person? Yes - it’s complicated.
Can BRICS dethrone the US dollar? It’ll be an uphill climb, experts say.
Read about what the breaking of the US dollar, if Putin and Xi are successful with BRICS, would mean for the world and YOU. If the world economy goes into free-fall, which many predict.
I've vetted this article with some of the smartest people I know and they say it's right on track. Rickards predicted this in 2019. He's not trying to sell us anything. This is the nightmare that Trump was trying to STOP before they stole the White House from him. You can look back and see clearly now what his goal was. To SAVE us.
Do you think DeSantis can fix this? NOT ON YOUR LIFE.
https://smallcaps.com.au/jim-rickards-world-unprepared-next-financial-crisis-future-gold/
Who’s going to bail out the central banks if the world’s financial system goes into free fall?
With another financial crisis imminent, Mr Rickards posed the question: who is going to bail out the central banks if they fail?
“Your only alternatives are turn to the International Monetary Fund (IMF) to basically bail out the world although that is a slow and difficult process.”
If the IMF did rescue the central banks, the process could take six months to a year.
For an IMF bail-out to occur, it would require 85% approval from all member countries.
“If you have a 15% plus 1% blocking power vote then it doesn’t happen.”
He added that the US was the only country in the world with a 16% voting power.
However, he pointed out a small coalition such as BRICS (Brazil, Russia, India, China and South Africa) nations and Venezuela could collectively block any relief action from the IMF or put conditions on it.
And that condition may well be that the US dollar is no longer the global reserve currency.
Mr Rickards said the other alternative was to shut down the banks.
“And that’s what I expect will happen. They’ll close exchanges, close banks, close ATMs, freeze accounts.”
When people say that will “never happen”, Mr Rickards explained it has happened many times before including Cypress, Greece and Argentina.
He added it also happened in the US in 1933, when US President Franklin D Roosevelt ordered every bank to close.
The bank shutdown lasted eight days, but Mr Rickards said no-one knew how long the closure would be and it could easily have been a month-to-two months.
He pointed out another financial shutdown occurred in the US in 1914 when World War One broke out.
“The New York Stock Exchange was closed for five months – from July 1914 to December 1914.”
Looking at what most of these countries who are joining together all have in common - is they are targets of US sanctions.
“Russia has been sanctioned for its operations in Ukraine and Crimea; China has been sanctioned for theft of intellectual property, limits on foreign investment and unfair trade practices, etcetera; North Korea has been sanctioned for weapons; and Iran has been sanctioned for its nuclear enrichment program etcetera.”
According to Mr Rickards, the US’ financial war on these countries effectively suffocates their economies.
Mr Rickards said this form of warfare works “but the question is how long a country is going to sit there and take it. And the answer is not much longer.”
He said China and Russia could feasibly implement a permissioned digital currency system that is backed by gold and based on blockchain technology.
He said digital coin tokens would be used to keep track of transactions and the balance settled with physical gold once or twice a year.
“What’s missing from that? The US dollar. There is no dollar at all.”
And if you think this is a fictitious scenario. Think again. Mr Rickards pointed out it was already underway.
Now you understand why Biden is frantically trying to get Venezuela on America's side for oil. Now you know why he's desperate to talk to Saudi Arabia - who won't take his calls. He doesn't want Saudi Arabia joining with the BRICS nations to stop using the dollar for oil, remove the US as the reserve currency and turn us into a 3rd world country.
Like I’ve said many times before - our ONLY saving grace is that America has tons of gold - more than China, Russia & India combined. Or at least that's what I hope!
PETER SCHIFF: This time, it’s going to be US Treasury debt that’s the problem. Nobody is going to want to own our sovereign debt because of how high inflation is. And that’s also going to create a dollar crisis. There is where we’re heading and it’s a big disaster. If the world stops wanting US dollars because they no longer have confidence in the US currency’s future purchasing power in the exchange rate of the dollar versus their own currencies, it will cause the prices of everything Americans want to buy to go way up. Meanwhile, the cost of borrowing money will also go way up.
So, Americans see their standard of living go way down. Because if the price of everything goes up, they can’t afford to buy anymore. So now, a lot of the things we take for granted we can no longer afford. And to the extent that we need to borrow money, we can’t afford that either. So, the entire economy just collapses, and that is the disaster that we are heading for.
It is a depression, but unlike the depression of the 1930s, where the people at least got the benefit of falling prices that provided some relief. During the depression, you lost your job, but at least the cost of living went down. And if you didn’t lose your job, you were actually better off because you had your paycheck and your paycheck went further because consumer prices fell during the 1930s. But this time, even the people who don’t lose their jobs are going to suffer because they’re going to lose the value of their paychecks. They’re going to lose the value of their savings. Because everything that you need to buy is going to be a lot more expensive. And that’s going to compound the burden for the unemployed. Because not only are they going to be without jobs, but their savings are going to be destroyed. And even if they get checks from the government, it’s not going to be enough to afford the basic necessities.
I don't know much - but I do know this:
When George Soros…
When Hillary Clinton…
When the Rothschilds…
When The Vatican…
When Klaus Schwab…
When the WEF…
When the IMF ...
When the MSM…
When Bill Gates…
When A-List Celebs…
When Big Tech...
When the CFR...
When Black Rock…
When Fox News…
When the RINOs...
like Romney, Cheney, Bush, DeSantis, Kochs, Murdoch, McConnell and others are all working together with the Democrats to get rid of Trump to save themselves - I know which side I need to be on.
These traitors all INSTALLED BIDEN to destroy Trump and destroy US ALL. We need to stand together and destroy them!
If you want to see our future if we keep going down the Social Justice road of Socialism - watch this interview that Tucker did with the leading candidate for President in Argentina:
https://x.com/TuckerCarlson/status/1702442099814342725?s=20
What can you do? Take off the blinders. Study history and base your decisions on fact - not emotion. Spread the truth. Be confident and take a stand. Put on the full armor of God. Silence is complicity.
Evaluate your situation. Make a plan. Prepare your family. Hold hard assets and property. Stock up on essentials in case of a long term famine, energy shut down or cyber attack. Evil DOES exist and preparation is not fear. And pretty much everything the fake news and establishment politicians tell us is a lie! They are the crazy ones - not us.
God gave us good brains! Let’s use them or lose them!
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