“Then, governments, because the economy collapsed globally, started spending like drunken sailors,” Dowd says. “The last 12 years have been a ballooning of what I call the central bank-government bubble, the sovereign debt bond bubble.”
Who’s going to save that bubble? Who’s going to be the buyer of all that debt when this bubble finally blows up? Answer: No one. Many who are aware of the situation are just surprised the system has lasted this long.
It looked like it was ready to burst in 2019, and then, conveniently, Covid showed up, which granted emergency powers to all central banks. Governments went on another spending spree, printing money, and this allowed them to kick the proverbial can down the road for another two years.
“Here we are in 2022 and it’s unravelling again,” Dowd says. “And the reason why Covid was important is because the Federal Reserve was able to plug the hole in what was beginning to become a liquidity debt crisis.
“They printed 65% more money. The money stock went up 65% year over year in 2020, and that was able to paper it over. Then, when the economy was shut down, it was an external shock, not in the internal shock, so when they reopened with all the money in the system, we had a recovery for a year and a half. Stock markets went crazy, credit markets went crazy, and we went back up again.
“But here we are two years later, [with] inflation caused by the bad policies of the Biden administration, the EU, the money growth … also, Covid broke a lot of supply chains … Basically, we hadn’t had inflation in goods and services for the last 12 years. We had inflation in assets, stocks and bonds.
“What’s going on now is the real economy is feeling the effects of the inflation, the bad policies. We’re starting to see the U.S. dollar go up, and the dollar is a reserve currency of the world. Over the last 22 years, there’s been a tremendous growth in what’s called dollar denominated debt … We have about $15 trillion in dollar denominated debt.
“So, when you see the dollar going up, that’s indicative of a debt crisis because money’s becoming tight. There are fewer dollars out there. People are scrambling for dollars. And the reason why I think we’re imminently going to collapse is we’ve never seen a commodity inflation cycle with the dollar going up at the same time …
“You can make the case that it’s intentional because the policies are so bad that they’re shutting down energy production. Before the Ukraine War, Biden’s first executive order on Day 1 of his administration was to shut down the Keystone pipeline. So, here we are. I think we’re at the end.
“Covid provided cover for the central banks and the governments, but it also allowed for a control system. If everything’s going to collapse, wouldn’t it be nice to have a control system where travel is restricted, you can blame it on a virus, you create vaccine passports, which then get linked to digital IDs, and then central bank digital currency. So, I think Covid was a convenient excuse.
“As we roll through time, I’m starting to think this was a plan. I don’t have evidence, but the fact that we’re not stopping what’s going on suggests to me that it’s a conspiracy of interests, and they don’t want to stop the rollout of these vaccines.
“And the longer this goes on, the more convinced I become that Covid may have been a plan. I used to say it was a convenient excuse, but the longer this goes on, the more ridiculous this becomes. So, I think there was ill intent.”
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