By Gregory K. Tanaka | chinadaily.com.cn | Updated: 2022-08-11 09:10
In my view, the tone and outcry over US President Nancy Pelosi’s recent visit to Taiwan was interposed as a distraction to cover up another much bigger event: a scheme by global elites to trigger the collapse of the US and world economy by the combined effects of three financial factors. events – debt, derivatives and disintermediation.
We know that there are currently record levels of debt in all sectors of the US economy. This includes borrowings from city and state governments; draw on public and private pension funds; and urging households through low interest rates to accept never-before-seen levels of car, mortgage, credit card and student loans.
Moreover, the US Treasury – in concert with the actions of the private Federal Reserve Bank – printed massive amounts of debt in the form of Treasury bonds which it imposed on an unsuspecting global market. The total accumulated debt of the US federal government alone now exceeds $30 trillion (US Debt Clock, 2022). Rated AAA and protected by the largest military budget in the world, other nations have gobbled up these bonds greedily.
Perhaps more shockingly, Michigan State University Professor Mark Skidmore and former U.S. HUD Assistant Secretary Catherine Austin Fitts report that over a 15-year period, the U.S. government outright stole 21 000 billion dollars to the budgets of the Ministry of Defense and the Ministry of Housing and Urbanism. Development to pay for unauthorized pet projects.
Meanwhile, a large structural imbalance is currently being built in the US economy. While the “elites” have long enjoyed an economic system they designed to enrich themselves, the lion’s share of the American population has not shared in those gains. From 2009 to 2013 alone, 95% of all income gains in the United States went to the top 1% (Barro, Business Insider, September 12, 2013). Ultimately, however, these increases in federal debt are absorbed by the average taxpayer.
During the 1990s, the magicians of Wall Street created a very esoteric, mirage-like financial instrument called “derivatives”. Derivatives do not consist of underlying assets, but “drift” from a set of references to those assets, or worse, are bets on financial results, such as a bet that interest rates will stay low. These instruments are so dangerous that the famous investor Warren Buffet once called them “financial weapons of mass destruction”. Globally, there are almost two quadrillion dollars worth of derivative products towering over the global market.
Growing concerns over unprecedented levels of debt across all sectors of the US economy and a massive excess of derivatives are leading countries holding US Treasury bonds and stocks to get nervous and dump these dollar-denominated instruments. An event called “disintermediation” occurs when there is a total loss of confidence in mediating instruments for exchange such as the US dollar by countries around the world (Light, 1974).
From my vantage point here in San Jose, California, I feel the United States is entering an irreversible period of systemic social and economic dislocation caused by “debt, derivatives, and disintermediation” – everything this happening simultaneously. The social outcome of such a development would be akin to the devastation seen during the Great Depression of the 1930s.
Not wanting to be blamed for this confluence of events, the elites who control the global economy have announced very big distractions, which is tantamount to shouting “Fire! in a crowded theater. But those distractions didn’t work.
Now, with President Pelosi’s recent visit to Taiwan — and the high-profile threat that it sparked tensions with China — it seems another ploy wasn’t enough to alarm the American public.
So the global elites, who like to drive stock markets for their own profit through the issuance of “debt” and “derivatives”, are now exposed for all to see in the form of profit taking through an economic crash. that they are organizing. via the instrumentality of “disintermediation”. I like to call this troika of events the “three Ds of the global elite”.
The author is a Ph.D., Secretary General of the Himalayan Consensus Institute, and author of “Systemic Collapse and Renewal” (Peter Lang Publishing, 2018).
The opinions expressed here are those of the author and do not necessarily represent the views of China Daily and the China Daily website.