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April 22, 2020 - Health Ranger - Mike Adams

16:57

Why the economy will not simply BOUNCE back

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	This Health Ranger Report Pandemic Podcast is brought to you by NaturalNews.com for uncensored reporting and HealthRangerStore.com for lab-tested preparedness supplies such as storable food, full-face medical masks, biostructured silver first aid gel, and iodine, only while supplies last.
	Friday, April 17th, update for Pandemic.News.
	Mike Adams here on some economic topics.
	There's a mass delusion floating around where people think the economy is going to be turned back on like flipping a switch.
	They're arguing things like, well, since we voluntarily turned it off, we can turn it back on.
	So this is what's called the V-shaped recovery.
	This is what a lot of people are anticipating.
	So even as 22 million Americans have lost their jobs, many stocks continue to rise because of the artificial money pumping, the reinflation of the bubble efforts.
	That are being undertaken by Washington, D.C., the Federal Reserve and Treasury and so on.
	A lot of people are fooled by this.
	They think that everything's going to get turned back on in no time.
	Again, the V-shaped recovery.
	What's really going to happen is what I've called not just the V-shaped recovery or the U-shaped recovery, not even the L-shaped recovery, which is a flattening Of economic activity, but rather it's going to be the FU-shaped recovery because they're going to bail out the rich and loot the working class.
	That's actually what has already begun and it's going to accelerate.
	There will be no V-shaped recovery.
	And here's why.
	We live in a complex system.
	Very complex economy of specialization and just-in-time deliveries and long supply lines and logistics.
	Lots of efficiencies in that system when it functions perfectly, but no redundancies.
	So in such systems, you have trade-offs between efficiency and redundancy.
	Yes, you can have the most efficient system with the best price possible, the minimized inventory with just-in-time supply lines, but in that system, you have few redundancies.
	Because redundancies sacrifice, in many cases, economies of scale.
	If you're going to have multiple producers in multiple countries producing the same widget, let's say, then some of those are going to be higher price and higher cost than whatever country can produce them at the lowest cost.
	But if you want redundancies, you need to have multiple widget factories, not just one factory, an ocean away, half a world away, run by a communist regime, no less.
	So we don't really have redundancies in this system, which means that The ability to recover from these disruptions is severely compromised.
	And, by the way, most of our world economic system has been funded by debt.
	It's a debt Ponzi scheme.
	And you can't bail your way out of a debt system by creating more debt.
	See, we've already got way too much debt.
	You're just adding more debt to that system.
	You're actually impairing the ability of the system to recover and function.
	This is not a small consideration.
	Everybody was already living on the edge, stretched too thin, too much leverage, too much debt.
	And you see, the retailers have stopped paying the mortgages, the rent of the buildings and retail space that they're leasing.
	The restaurants have stopped paying rent.
	And even in the residential sector, people who live in homes and apartments have stopped paying rent.
	So the commercial and the residential property owners have stopped paying the banks the loans.
	And so the banks are going to be in serious trouble.
	In fact, a lot of the bailouts that are happening right now, I believe, are designed to really flow through the people and into the banks to keep the banks solvent.
	So the government wants to make sure enough checks go to the people who have the loans so that they can make the loan payments so that the banks don't go under.
	Because bailing out the banks is going to be a multi-trillion dollar problem.
	And that problem is coming.
	You see, the banks, sadly, are highly leveraged as well.
	Not just leveraged in terms of having too many loans, but banks themselves have made bets.
	Banks are functioning like hedge funds in some cases and investing in hedge funds and making derivatives bets and things like that.
	And so they're highly, highly leveraged.
	And that leverage is unwinding.
	And if the Fed stops pumping money into the system, the banks are going to crater.
	The markets are going to crater.
	The derivatives are going to crater.
	And this day is coming, and you can't just restart the whole system because the system never had any basis in reality and financial solvency in the first place.
	If we had a strong system rooted not in debt but in productivity and ingenuity and creativity and free market principles, then yeah, you can restart that system in record time.
	Our system was already looted.
	It was already overleveraged.
	It was already in trouble before this coronavirus happened.
	It was in big trouble.
	And because of that, it cannot be simply restarted.
	It can only crater and then rebuild from the bottom up after the pieces have all fallen out of it.
	Humpty Dumpty, you know, sat on a wall, right?
	You've heard the nursery rhyme.
	Humpty Dumpty had a great fall.
	All the king's horses and all the king's men couldn't put Humpty Dumpty back together again.
	Why is that?
	Humpty Dumpty is the economy.
	Once the pieces fall apart, it's not a matter of just gluing them back together because you have a systemic relationship.
	A debt problem, a Ponzi scheme that transcends the individual parts of that system.
	That system is cratering.
	You can't just reassemble it by waving a magic monetary wand.
	Doesn't work that way.
	So the laws of economics are about to be, well, better understood, let's say, by people who currently deny the existence of economics.
	I find it interesting.
	You know, there are people who don't think that gravity is real.
	Right now, the flat Earth people, they don't think gravity is real.
	They have a different theory of why you don't fly into space.
	Well, their theory is that they think the Earth is flat and not rotating and not moving and so on.
	So they don't believe in gravity.
	If you don't believe in gravity, then you will have a difficult time navigating a universe in which gravity is real.
	Now, the reason I mention that is because if you don't believe in the laws of economics, Then you're going to have a difficult time navigating a world where economics is in play.
	And if you don't understand the emergent properties of complex systems, then you're going to have a very difficult time navigating those systems because you won't be able to understand what's happening.
	Let me give you a metaphor for this, a good way to look at this.
	There are people who think that you can discover where music comes from by dissecting a piano.
	And if you take apart a piano, you're going to find that it's made of wooden keys and pieces of wire, you know, little felt-covered hammers under the hood.
	You know how piano works?
	You ever looked inside a piano?
	It's pretty cool, but it's also very simple.
	Just some moving parts and some paint and metal pedals.
	And a large wooden box.
	You know, a piano is physically just a bunch of parts.
	But out of those parts, in the hands of a composer or a pianist, a performer, can emerge an incredible universe of music.
	Music that is not found inside the piano.
	You can dissect a piano.
	You don't find any music in there.
	Just like it's been said, you can dissect a living cat to try to find out what keeps it alive, but all you end up with is a dead cat.
	I know it's kind of a gruesome example, but the point is that you can't understand life by taking apart dead bodies.
	You know, this is a lesson for medicine.
	They're always chopping up cadavers and such.
	Oh, this is the liver.
	These are the adrenal glands, you know, whatever.
	You still don't understand life.
	You still don't understand nutrition because there are complex systems and emergent properties of these systems that cannot be understood by Taking everything apart, you know, compartmentalization and the material approach to medicine.
	Well, same thing's true with financial markets.
	You can't understand how debt works and how greed versus fear functions by disassembling the financial market and taking the pieces apart and then hoping you can put them back together again.
	Once you take it all apart, you have essentially the dead cat version of the markets.
	You can never put it back together again.
	Humpty Dumpty, you can't glue the pieces back together again.
	So as we're watching this system fail, in a sense, At some level, there's a dissection of the system going, and people are trying to, well, in Washington, they're trying to sort of pump up the different systems.
	Oh, here, bail out money to the consumers.
	We hope they spend money.
	Bail out money to the companies.
	We hope they keep people on their payrolls.
	Bail out money to the airlines.
	We hope that they will stay in business and resume flying one day.
	This is like squirting glue at Humpty Dumpty.
	Or it's like using superglue to try to put together a piano and hoping music comes out.
	Doesn't work that way.
	Doesn't work that way.
	And this is a lesson that people are about to learn.
	There are things that emerge from the system that are not found within the system.
	Same thing is true with your brain.
	Your brain physically is just a bunch of nerve cells.
	But as those nerve cells communicate, you have really holographic storage, and you have a combined consciousness with your soul.
	And from that system, you have emergent properties of love and creativity and ingenuity, ideas, all these things that cannot be found by dissecting a brain.
	Same metaphor.
	I mean, same style of metaphor.
	So financial markets are as complex as the human brain.
	This is why no human being can even understand all the moving parts of the market.
	Because it's more complex than any one human brain.
	The market is made up of, well, essentially billions of human brains making decisions about manufacturing and consumption and investment and debt and so on and so forth.
	All across the planet, billions of minds create the market.
	When that system fails, you lose the emergent properties.
	And it collapses back down to its parts, i.e.
	the wooden keys of a piano that no one is playing anymore.
	And at that point, a piano is just a bunch of wood and wires.
	It has no utility other than, you know, firewood because there's no one left to play the music.
	And they say in the markets, they say the music stops.
	That's a very reasonable metaphor.
	The music is about to stop and it won't just restart overnight.
	The complexity of what we've built is not something that can be just turned back on.
	So what can you do to survive this collapse?
	Well, several things, of course.
	But number one, realize that much of what you think is wealth is actually nothing but, let's say, the illusion of wealth.
	Something that is enumerated in the markets in a way that isn't even real.
	That no one can even really extract.
	If people start to sell their stocks in order to extract the wealth they think they have, then stock prices crater.
	And all the people who are using the stock market as a retirement fund, thinking that one day they can pull out their retirement money and live on that, they're going to discover that that can't happen, except for a very few number of people who are the first to sell.
	If you're not among the first, I don't know, one or 2% to sell, then you won't be able to extract much of your wealth out of that system because the system craters.
	The system creates the illusion of shared wealth.
	But in reality, once people try to extract that wealth, the system ceases to function with those emergent properties.
	It's like everybody who owns Bitcoin, they think Bitcoin has a certain value.
	If they all decided to cash in and sell their Bitcoin, it would collapse to zero.
	The only reason Bitcoin holds value is because very few people are selling it.
	The same thing is true with stocks.
	But it's totally different with gold and silver.
	Because gold has utilitarian value.
	Gold has a limited physical supply.
	Gold is an element of the universe that cannot be destroyed.
	So even if everybody tries to sell gold all at once, the price won't go down that much.
	Because it has this inherent intrinsic value.
	By the way, the Bitcoin does not have any intrinsic value.
	And a log file of a lot of computational work is not intrinsic value.
	For those of you who are Bitcoiners, if you think that proof of work is intrinsic value, then you don't understand the concept of intrinsic value.
	Proof of work is irrelevant.
	It doesn't matter how much work it took.
	What matters is what you produced.
	In the case of Bitcoin, you produce nothing in the real world, just something that's digital, something that can disappear tomorrow.
	When people mine gold, though, they produce physical gold, something in the real world, and that's why gold is different.
	But this isn't even a lesson about gold versus Bitcoin.
	This is about the markets.
	Just understand that what you think you own in stocks or bonds or interest rate bets, Or even a bank account can disappear tomorrow.
	And a day is coming that it will.
	So if you're not converting into real things, real physical things, gold and silver and land and all the things I've talked about, then you're going to lose most of what you think you have.
	That's the bottom line.
	Yep, the music will stop one day soon, probably.
	And you'll be left with whatever you have that's real.
	That's it.
	So spread the word.
	This is Mike Adams here at The Health Ranger, pandemic.news.
	And you can also check out When it comes to prepping, you not only need good products that can help keep you alive, awake, aware, and nourished during difficult times, you also need products you can trust.
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	Again, the URL is healthrangerstore.com forward slash prepwithmike.
	All one word, no spaces.
	I'm Mike Adams.
	Thank you for your support.
	Thank you for watching.
	If you want to support our mission, visit us at healthrangerstore.com for the world's largest selection of lab-verified superfood and nutritional products for healthy living.

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