Ten Dominos to fall by 2024 Bursting the $600 Trillion Derivative Bubble
(Bankruptcy of a Country Happens Gradually Then Suddenly).
Derivative value: meaning deriving value from an underlying variable asset. Derivative bubble: The stock market, Federal Reserve Bank, government, unrecorded debt, annual spending deficits, inflating prices, a struggling economy, and weak dollar. The dominos will fall (reach the breaking point gradually then suddenly) as a $600 trillion derivative bubble burst into deep depression, insolvency then bankruptcy.
The dominos are teetering with Open Borders and 2 to 3 million illegal refugees and migrants becoming vagrants, drug dealers and welfare cases… Cost of Afghan exit … Higher taxes … increases in minimum wage, The permanent deferment of the debt ceiling of $22 trillion with current debt per the debt clock (www.usdebtclock.org) of $30.5 trillion With $158 trillion of unrecorded entitlement obligations.
With inflation at 5% to 10% in 2021 and 15% to 20% in 2022 … Declining value of $1.00 to $.38 in 2000… Increase in the consumer price index of .09% in June to 2.0 in September to 5.0 in 2022 … With the Fed contemplating interest discount rates to their banks being increased due to inflation, from .09% in 12/20/20 to 2.5% in 9/20/21 to 4% be end of 2021 and only God knows how much after the midterms since it is a Democrat run Fed.
With mindless leadership of the Democrat party proposing $2 trillion infrastructure and jobs bill and $3.5 trillion climate change bill or a total of $5.5 trillion to $6.2 trillion in spending over the next ten years that supposedly is paid for by increased taxes on the wealthy then requires trillions more of debt.
(Biden/Yellen “it won’t cost one cent”)! In fact it’s 600.2 trillion cents in debt? “During the Covid relief period the Fed printed another 300 years’ worth of money in a matter of months” J. Grantham. Question: how can a one term President commit a future administration to ten years of spending with sheer abandon? Then blaming the prior administration for every reason for doing it? Thus the domino effect is also imposed on future administrations. Doing so, means all elections of incumbent and/or incompetent management have dire future consequences. This alone bodes the demise of the two-party uni government system.
Domino #1 the national debt of $80 trillion using (GAAP) generally accepted accounting principles increasing at the rate of $300 billion per day pending infrastructure jobs bill funded by tax increases covered by Fed/Treasury’s printing press. See the www.usdebtclock.org for true GAAP financial condition of America.
Domino#2 A Federal Reserve Bank printing cash for government spending; “A 1,000 billion spent here, a 1,000 billion not spent there, and pretty soon you’re talking real money.” Senator Dirksen of Illinois …“During the Covid relief period the Fed printed another 300 years’ worth of money in a matter of months” J. Grantham.
Domino#3 the 2021 Federal and State annual deficit spending $15 trillion using cash basis budgeting and accounting.
Domino#4 the bullish stock and bond markets (stocks 35,000 DOW 5,000, bonds and Treasuries $29 trillion in Federal recorded debt). Cash printed by the Fed is king for the DOW and the negative cash flow for the debt driven financial condition of America.
Domino#5 the Federal Reserve Banking System cash reserves $500 billion excluding member banks. Non collateralized treasury bills, notes and currency issued to American banks. Treasury Secretary Janet Yellen suggesting a 100-year Treasury note may be necessary to defer interest yield to the next century.
Domino#6 the impact inflation has on the economy … 1% means it takes $1.01 to buy a dollars’ worth of goods, 100% means it costs $2, etc.
Domino#7 the value of the dollar impact on the cost of goods sold … a decrease in the value of a dollar means a dollar is now worth 50 cents … this means it takes $4 to purchase a dollar’s worth of goods. The exponential impact drives prices up and demand down. This means America’s GNP costs 10% more to produce market ready products and demand drops 10% leaving a GDP stagnation of $4 trillion or a drop to $17 trillion.
Domino#8 the Asian consortium headed by China’s control of costs and pricing of the supply lines. This enables China to dictate the, cost, pricing and quality. This drives 15% of America’s GDP down $3 trillion per year since our inflation of market ready products costs depend on China’s prices and shipping costs.
Domino#9 the competition by Russia, Saudi Arabia, Iran and Germany for the cost of energy supplies for driving the American grid, limited manufacturing and distribution services. This drives the cost of energy up with the negative impact on American GDP of $1 trillion per year.
Domino#10 will fall (reach the breaking point gradually then suddenly) as a $600 trillion-dollar derivative bubble burst into a deep depression then bankruptcy. Stagnation takes over and a bailout reorganization is imminent. Downsize government, upsize enterprise to paydown debt and reduce government spending.
Intervention: American Enterprise Party is preeminent in 2022–2024.
What happens when the bubble bursts? Like any enterprise bankruptcy happens gradually and then suddenly shrinks everything. The size of the problem for a country, such as America, ripples throughout the world since we are the biggest consumer as well as the provider of technology, food, capital and credit leverage. China for example will have to take a haircut since the USA owes them $1.3 trillion … also Japan $1.5 trillion.
The Federal Reserve banking system and the World Bank then teeters and Russia’s and Mideast economies will take a hit on its energy supply profits. China’s GDP will suffer the greatest because of their dependence on the USA being their best customer with the supply line purchasing of food, technology, computer chips, pharmaceuticals, purchase of supply line products driving their economy. As worldwide costs escalate and currencies are devalued, borrowing increases and weak economies and currencies are then in jeopardy of bankruptcy. The USA, Chinese, Japanese, Shanghai and Hong Kone gstock markets will plummet.
What is the solution for preventing this disaster? My American Enterprise Party Trilogy proposes the steps to financial and social mobilization and stabilization. They also put enterprising Americans on notice that their votes are the platform for producing lower debt, reduced deficit spending and stopping irrational fiscal policies that gradually have now taken us down suddenly and permanently .
In Volume One the reasons for this sudden event by losing the global trade war to China and why American politics are at the center of the blame game needing a tie breaker Swing Vote to bring the political extremes to the middle where the solutions in policy and financial management reside.
Volume Two how to increase capital, reduce current and future debt and pay down what we now owe according to generally accepted accounting principles (GAAP) and continue to be the leader in technology and economic success.
Volume Three who will make it happen … enterprising Americans with patriotic and ethical work habits who are contributing to the GDP and GNP and sharing in the profits and wealth of international success.
The formula that our constitution requires is monetary capital (capitalists) and human capital (socialists) must work together in a profit sharing environment so every American citizen or aspiring citizen has the opportunity to participate in a free market economy as an American enterprise. This is where each enterprise a needs skill to bill and the workers must learn to earn for their share of the profits driving the national GDP and their own economic prosperity.
This synergy or marriage of the two conflicting isms (capitalism and socialism) happens in every American business every day of every work week to create our GDP and GNP. So why do the Democrats and the Republicans, the reds and the blues, the liberals and the conservatives, the left and the right, the Hatfield’s and the McCoy’s fight over who is right? What’s right is the Great American Enterprise, the greatest invention since the printing press and the internet, that can only function with freedom and democracy.
Why then do we have this bureaucratic swamp with executive orders reversing what lassez-faire needs to operate to make profits that sustain our economy, debt service, technology, cash flow and superiority in the world trade war. Capitalism and socialism have the same purpose and goals to operate as team members for continued success and require three political parties to coexist … two parties tend to want to be in total control and are protecting turf rather than doing the right thing for fiscal and social wellbeing. Obtaining and protecting the American Dream with Humanism that I call Americanism. Where there is no color line in free enterprise.
The third party representing both capital and society for the majority of enterprising Americans, keeps the decisions and policies centered on problem solving not building back bigger government and bigger egos centering the wealth with the Few on the backs of the Many. The solution is the capitalists must learn to share and the socialists must “learn to earn for a skill to bill”. Then free enterprise has no color line since it’s creed is opportunity for all who take a risk for the reward in a laissez-faire economy.
With this swing vote balance America is truly a government of one purpose for the people, of the people by the people. Government. The one purpose of serving all equally and equitably without regard to color, gender, religion, creed and ideology. Under one God, one flag and one purpose … in God we Trust our needs for peace and prosperity.