It’s not a matter of whether the Fed’s plan to avoid economic collapse will fail; it’s only a matter of when. Right now we are seeing the stock market ‘melting up’ on an ocean of Fed-created liquidity. But buying $85 billion of bonds monthly is unsustainable, and the M-2 money supply will soon climb into the multi-trillions of dollars, ushering in an era of high inflation or even hyperinflation and a market crash.
The next 20 years will be like nothing seen before, with the American standard of living accelerating to the downside. It’s already happening; in the average household, both spouses have to work to sustain a lifestyle that, in the 1960s, one spouse could provide.
And in the face of zero interest rates and huge government entitlements, families today have little in the way of savings and a lot in the way of debt. What happens when the stock market tops out, or if there’s a bond crash as interest rates rise?
Meanwhile, gold is being hammered, and the anti-gold chorus is getting louder. Today it’s unlawful to pay your bills with gold. You must pay them with fiat currency created by a Fed computer. As Mayer Rothschild famously said, “Give me control of a nation’s money and I care not who makes the laws.”
Russell says it’s immoral to create money without working or assuming risk. Real, moral money is a call on someone’s labour. The current monetary system is immoral and an outrage. As such, its years are numbered.