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Through-out this past year there has been a certain amount of speculation that World War III is eminent. When the general public thinks of war we conjure up images of horrific bloodshed and even nuclear weapons being dropped. But, there is a more insidious weapon that is actually poised to devastate economies all across the globe. What we know is that the Trump Administration being so ignorant about foreign affairs is poised to unleash a barrage of retaliation form our trading partners from around the world. These tariffs that he is considering if implemented could very well be justification for destructive attacks on the United States very precarious financial system by China, Japan, Russia, the EU and OPEC nations along with many other countries.

How this will unfold is that these countries will begin dumping off their U.S. debt holdings and by doing so will end the dollar as the world’s reserve status. This is only on the surface. The real danger is an internal war waged against the global economy by the central banks. It is the banks themselves that have through-out history deliberately created financial crises and collapses. Remember the financial crisis of 2008. That financial catastrophe for millions of Americans only made the financial institutions that much richer when the US government and the Fed pumped trillions of fresh cash right back to those too big to fail banks. If the US dollar was not the worlds reserve currency the panic of 2008 would have made the Great Depression seem like a picnic.

Today, vast sums of wealth can be transferred in and out at the speed of light. The collapse of one economy or economies really does mot mean the destruction of banker wealth. It is the banks themselves that see national economies as they say mere holding containers. How this works is that banks can pour their wealth which they can create from thin air, as long as the US dollar is the world’s reserve currency, into one or more of these containers or economy. They also can circulate that wealth within the container or economy for a time and then pour out all their wealth at a moment’s notice.

We have to remind ourselves that a destruction of a national economy can be exploited as a means to a greater end. Usually this so called greater end means using the crisis to justify greater centralization of power or the transfer of power from the public into the hands of the people who are behind the bankers. Through-out history there have been such transfers. The liquidity crisis of 1914 just after the Federal Reserve was established leading into World War I. Let’s not forget the hoarding of financial power by banks when the League of Nations was created. In 1920 the artificial bubble in multiple asset classes created by the Federal Reserve with very low interest rates. That bubble burst when interest rates were raised which brought on the Great Depression. The Depression in the US coincided with other fabricated economic disasters in Europe and Asia lead to the rise of fascism and World War II. All this greatly benefited the banking establishment as thousands of smaller banks were crushed. This was the start of the World Bank, the United Nations, the International Monetary Fund and the beginning of the European Union. When we realize what has happened we find that in every economic calamity consolidates property and bureaucratic control into a oligarchy class. And, with each financial catastrophe brings about massive debt dependency.

Today, we are in an era of burgeoning crisis and believe it or not the Fed is feeding the fire of disaster. A disaster that will trigger and explosion, a controlled demolition of our financial system. Remember massive debt dependency? What we have today are three ticking time bombs all capable of causing massive untold destruction. Consumer debt: Total American household debt at the end of 2017 has reached beyond $13 trillion. the highest in history. For the past 5 years consumer debt has risen. by the end of 2018 the projected consumer debt will be even higher. Credit cards, auto loans, mortgages, student loans etc, all indicate that the so called economic recovery is just smoke an mirrors. There has not been any legitimate wealth creation or resurgence. there has only been a greater dependence of the same debt that helped create the 2008 financial crisis. The Fed money only made those too big to fail banks that much richer. When the Fed quietly raises interest rates all that does affects the numerous asset classes including housing markets, mortgages etc, auto loans, credit cards and student loans. In effect when interest rates rise all other areas of the economy come under pressure. The average citizen with record debt levels are now face with a financial nightmare.

Corporate debt is the most subversive crisis waiting to explode. With rising interest rates and the amount of corporate debt already on the table we will more than likely see another stock market crash. Today the S&P shows that at least 40% of 13,000 corporations have debt to earnings ratio of 5 times. A level even higher than it was prior to the 2008 collapse. We have to consider that corporations have been exploiting low interest rates to borrow huge sums of cash for the sole purpose of purchasing their own stocks. None of this money went to increase employees salaries. Stock buybacks are a legal form of market manipulation in which companies by stocks back from the public which in turn reduces the number of existing stocks circulating in the market which artificially increases the value of the stocks overall.

We have to remember that stock buybacks have been the main fuel for the longest bull market in history. But, this bull market is so fake that even the media have begun to question its validity. Stock buybacks are completely dependent on cheap debt. Unfortunately cheap debt is becoming not so cheap anymore with the Fed raising interest rates. Eventually, maybe sooner than we think another stock market crash is inevitable.

The national debt has been the subject of many a Presidential debates and yet it looms higher than ever. In the wake of a potential global trade war the question arises as to how long will it take before major U.S. treasury bond holders like China dump their holdings in retaliation? The lunacy of Trump in his refusing to recognize the seriousness of our continued raising of the national debt ceiling only concludes that our national debt will only increase. The Federal Reserve used to be the largest purchaser of U.S debt. But, since they have raised interest rates the Fed will most likely not step in if and when a trade war escalates to a treasury bond dump. When that happens it will be too late for our dollar will no longer be the world’s reserve currency. And, when that happens all hell will break loose.

We had better recognize that all three contingencies of debt each one more profound every year are catalysts for an economic catastrophe that will occur if not addressed ASAP. The longer we remain in a perpetual state of denial by elected officials and fail to realize just how close we are to an economic Armageddon the sooner every American will pay a hefty price. A price we can no longer afford. There is a way to negate to possibility of financial doom but ti takes our elected officials first to recognize how close we are to falling into the financial abyss. We then have to implement the reforms that will negate the possibility of financial calamity by ushering in National Economic Reform’s Ten Articles Of Confederation.

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Source by Dr. Tim G Williams