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April 6, 2023 - Health Ranger - Mike Adams
10:50
The Fed is STUCK, must now choose between economic annihilation and currency hyperinflation
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We are looking at a perfect storm of market annihilation where the Fed is caught between a rock and a hard place, and there is no way out of this one.
Let me explain.
So you know we have runaway inflation because of all the money printing, and that inflation is, of course, far worse than what the Fed admits to, or the Treasury.
They say it's only 6% or something.
You and I know it's more like 15% or 20%.
It's much higher.
I mean, just look at the cost of food, for example.
So the only effective way to really fight that inflation, by the way, at least from a Fed monetary policy position, is to do what Volcker did back in the 1970s, raise interest rates to 15%, 18%.
I mean, you want to sock it to inflation, that's how you do it.
That halts it.
Well, we are right now at 5% Fed rates.
And the debate is over whether the Fed is going to raise it one more time to 5.25% before they begin the pivot.
Well, first a pause probably for the rest of this year and then a pivot in 2024.
Pivoting meaning lowering interest rates or engaging in monetary expansion.
So first of all, the 5% rate that we're at right now of the Fed interest rates is nowhere near high enough to stop inflation.
Nowhere near.
It needs to be more like 15% in order to stop this runaway inflation.
And you'd have to stop all the money printing, which will never happen because they have to keep printing money to do things like send money to Ukraine or bail out the banks.
And why are the banks failing?
The banks are failing because the Fed is raising interest rates, causing losses in the long-term bonds, treasury bonds and mortgage-backed securities that the banks invested in when interest rates were low.
So to recap and explain this bind that the Fed is in, again, the only way to stop inflation from a monetary point of view is to raise interest rates to something like 15%.
But if the Fed raises rates even to 5.5%, they will break the entire financial system.
For reasons that we've already kind of covered here.
They raise interest rates and the banks become insolvent.
We already saw this with Silicon Valley Bank, Silvergate, Signature Bank out of New York and so on.
The banks are invested in long-term bonds and those bonds are interest rate sensitive.
Interest rates go up, the value of the bonds goes down and these banks become wildly illiquid and then the only answer is to print more money to bail them out, which is exactly what's happening.
If the Fed raises rates to even 5.5%, they break the system.
They will also break the stock market, by the way, because the stock market is factoring in a Fed pivot this summer.
The stock market, most investors think that the Fed will no longer raise rates.
And so that has been baked into the anticipation of asset prices rising for the rest of this year.
But if asset prices rise due to the Fed keeping interest rates at only 5%, then, of course, inflation is going to rise out of control, especially as the Fed keeps printing money.
You see, this is a vicious cycle that has no end, and the Fed has run out of ammunition.
They can't raise rates beyond maybe 5.25%, which could happen early May.
But beyond that, if they raise it again, they'll break the whole system.
So the Fed has no more ammunition to stop runaway inflation.
And they continue to print money, trillions of dollars, because that's what's demanded by the Biden administration and the Treasury to keep bailing out the banks that keep failing.
We're going to have probably hundreds of billions of dollars a week in money printed in order to bail out banks as these bank failures accelerate this summer and through the second half of 2023.
So the money printing is actually only going to accelerate inflation.
At the same time, the Saudis, of course, have cut their oil production, well, Saudi Arabia alone, by half a million barrels per day, OPEC by over a million barrels per day.
And I interviewed John Perez on the Alex Jones show just yesterday, and Perez said that his intel tells him that OPEC is going to slash another 2 million barrels per day in production.
He's seeing oil at $150 a barrel this year.
Maybe even by late summer.
$150 a barrel would send gasoline prices into the stratosphere, fuel prices, diesel, transportation prices, and then you're going to see, of course, more inflation in food and clothing and consumer goods and automobiles and everything.
So there's no off-ramp to the insanity here.
The black swan has been unleashed and cannot be called back.
There's no way to tame the black swan or bring it in for a gentle landing.
This is a black swan, metaphorically speaking, that's wearing a suicide vest and has been given a target, and that target is the U.S. economy.
The economy is going to be strongly fractured, just savaged by what's coming here.
Not just the financial markets.
I'm not just talking about paper profits and losses.
I'm talking about the real economy, people's jobs, small businesses, manufacturing production.
Mining operations, import, export, transportation, healthcare, aerospace, you name it.
It's all going to be hammered by these phenomena that I'm talking about here.
And the Fed has lost control.
They've lost control.
Again, look, if you're the Fed, you have only two choices here.
You can either one, crater the entire financial system by raising interest rates, or two, destroy the currency by not raising interest rates.
That's it.
Those are the two choices.
You're either going to have economic collapse or hyperinflation.
And according to some experts that I've interviewed, you're actually going to have both.
Bob Moriarty told me that.
I've had discussions about this with Andy Sheckman and John Perez and others.
We're probably going to have both.
A horrible economic collapse, you know, beyond a depression, combined with hyperinflation.
You know, not just stagflation either.
People talk about stagflation, stagnant growth plus inflation.
No.
I'm talking about collapse-inflation.
The economy collapses and you have hyperinflation.
The worst of every financial scenario in history combined at the same time.
That's where this is headed.
And the Fed has lost control.
They cannot change this because the money printing has gone on too long.
They've kicked the can down the road so far that the road leads off a cliff.
And now they're chasing the can off the cliff.
As far as I can tell, there are only a few strategies that can save you from this economic destruction.
And frankly, none of us are going to emerge from this unscathed.
We're all going to be hammered in one way or another, but at least assets like gold and silver and perhaps real estate, you know, owning land, housing, these kinds of things, these can hold some amount of value and insulate you from the worst effects of this.
At least Prevent a lot of losses that people will experience when they keep their assets in fiat currencies and stock markets and bonds and so on because stocks and bonds and currencies will all be at least partially wiped out.
The devastation will be across the board.
And in this environment, of course, gold and silver will very likely skyrocket in terms of dollar denominations.
But that doesn't mean they're becoming more valuable.
It just means dollars are becoming more worthless.
But that's going to happen.
No question in my mind.
But the timing for this is becoming crucial.
Dan Golka, I allegedly, he said recently that the exits are closing down.
The wealthy people are using the exits to get out of the system, to get out of fiat currency and to buy gold and silver.
And central banks are buying record amounts of gold every quarter.
In fact, just month after month, record gold purchases.
Go look up the numbers.
It's off the charts because they know what's coming.
But for regular people, the exit opportunities out of the banking system or out of fiat currencies, those opportunities are shrinking rapidly.
You have Blackstone limiting withdrawals.
You can't get your money out.
And I think you're going to have bank limits on withdrawals soon.
You're going to have essentially kind of slow motion bail-ins or bank freezes.
For the regular folks, you know, you and I, we won't be able to get our money out of the system and it'll just crater.
So the window of opportunity to do something is definitely closing fast.
Now, of course, our sponsor in the gold and silver space is the Treasure Island Coins and Precious Metals Company.
If that's an option for you, do your own research.
I'm not your financial advisor, and gold and silver prices are manipulated by the deep state.
They may crush those prices even more.
Gold could go down, at least the price on paper.
But if you have gold and silver in your hands, They can't take the ounces from you by manipulating the markets.
You still have the ounces, and that's what's going to count in the end, I believe, having the ounces in your hands.
But do your own research.
See if this is a good option for you.
Maybe real estate is an option for you.
Maybe a certain amount of crypto.
Maybe treasury bills is a better option for you.
Maybe you can increase investments in your own inventory.
Maybe you can buy products that you can sell later, and that might be the best option for you.
But do your research and see what works for you to reduce your risk exposure to fiat currencies, insolvent banks, and the potential collapse of the Western financial system.
Thank you for listening.
Mike Adams here, The Health Ranger.
Naturalnews.com and also Brighteon.com.
Take care.
A global reset is coming.
And that's why I've recorded a new nine-hour audiobook.
It's called The Global Reset Survival Guide.
You can download it for free by subscribing to the naturalnews.com email newsletter, which is also free.
I'll describe how the monetary system fails.
I also cover emergency medicine and first aid and what to buy to help you avoid infections.
So download this guide.
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