Investors around the world need to buckle up because the world is going to see hyper-accelerated currency devaluation in 2025.
November 20 (King World News) – Gregory Mannarino, writing for the Trends Journal: The people of the world and the economy of the world are in a transition phase. A transition into a new system with a new set of rules.
Global debt is surging as the world economy is free-falling. Here in the U.S., we have factory activity, manufacturing, industrial output, along with business activity overall in contraction.
Moreover, ever since the beginning of the year we are getting mass corporate layoffs (which was one of my main “themes” I said would happen at the end of last year moving into 2024). With that, debt and deficits continue to HYPER-INFLATE.
Meanwhile, the U.S. stock market has hit no less than 52 new record highs in 2024. We have banks with BLACK HOLE balance sheets, LOADED with bad debt, and here in the U.S. loan defaults are skyrocketing…
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What can we take away from all this?
First: In the truest sense central banks are running a worldwide Ponzi scheme. In doing so, to keep the Ponzi going, central banks must create currency. The mechanism of vast currency creation is MASSIVELY inflationary.
Every dollar/euro/etc. which is created, to have any purchasing power, must steal a fraction of a fraction of a fraction of a fraction of purchasing power from every other already existing central bank note.
This process, performed trillions of times over, IS WHY WE HAVE INFLATION. Inflation occurs as the currency is devalued/loses purchasing power.
This mechanism is made worse as the overall pool of available currency must grow AS MORE CURRENCY IS PRODUCED AND THEREFORE DEVALUED.
Moreover, this process is again made worse as central banks use newly created currency to monetize the debt.
Today, central banks are in the process of lowering rates. To do this, central banks must create new currency in vast amounts and buy debt.
Here, this mechanism again, is highly purchasing power negative. This process is made even WORSE when a politician promises to lower rates way down. (No president can lower rates on their own).
A major campaign promise by president (s)elect Trump was a promise to lower rates. A president can certainly work closely with a central bank to lower rates (which obviously makes the central bank stronger), but presidents do not have the ability to create currency nor buy debt to lower rates. Lower rates also mean a loss of purchasing power.
Second: By central banks continuing to flood the world with debt, and puppet presidents promising lower rates, central banks get stronger meaning we lose.
Oh, make no mistake, stock markets, corporations, the 1-2 percent, and the money changers (banks), they ALL THRIVE in an artificially suppressed rate environment. But for the average guy/gal, and the economy, lower rates/currency devaluation are highly destructive.
Moving forward.
Currency devaluation will accelerate moving into 2025 which means that collectively central banks gain more power.
Currently here in the U.S. we are witnessing a phenomenon. A bridge is being created into the new system. Trump and Musk are promising mass deregulation which is being sold to an unknowing public “as to shrink government.”
Does that even sound right to you? Of course not.
Moreover, Trump is in the process of deregulating the banks, along with deregulating crypto, and merging the two. This process is being weaponized as to “mainstream” cryptocurrencies.
This process is a bridge, nothing more, to the new tokenized singular system.
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