Finances are crazy these days.  You can’t get a decent avocado for under two bucks.  Manufacturers are shrinking bags we buy, reshaping boxes to the smaller side, raising prices, and cutting the ingredients and expense from goods we purchase to feed and clothe our families.  Our family paychecks shrink faster than a tank of fuel on a glycerin burning dragster on a hot summer Texas day.

To make things even more challenging, we’re having a helluva tough time dialing in to financial truth.  It’s tough trying to decipher the information we need from mainstream fictional rubbish, peddled by influencers representing a world that runs recklessly and morally amok, using “fake news” as a cover for the face of corruption and guilt in the global financial industry.  Yet there’s never been a more important time to understand what’s happening to our paychecks, why they are disappearing so fast, and how to find employment and keep it long enough to collect that paycheck.

The backs of our minds warn us not to believe everything we see on the television.  Inflation and employment statistics are not as good as the U.S. government and mainstream talking heads would have us believe.  

Just ask John Williams at shadowstats.com, who analyzes and exposes flaws in the U.S. government economic data.  There’s a huge difference between the statistics presented by Williams versus those espoused by the mainstream.  Somebody here is way off.  Yet, that’s all we have to choose from.

We do know for sure the national debt continues to multiply, and the $23 trillion and rising debt is unpayable.  That’s a fact that could ultimately lead to our collective demise.  Yet we continue to live and die in a debt-driven society without any idea of how to escape.  Something’s going to have to give, right?  Or we’re not going to make it.  At some point we’re going to have to begin to ask ourselves, How long can we continue to do this?  Right? 

Central banks as we have learned are soon to become the way of the T-Rex.  Central banks have run out of the tools necessary to keep our financial system alive.  Central banks have run out of measures to solve the out-of-control debt problem.  That’s why central banks are soon to be extinct.

Before that happens, however, central banks are going to play the system a little while longer.  They’re going to stretch the last device they have, which will give them enough time to squeeze the rest of the wealth out of our paychecks – by lowering interest rates toward ground zero.

This would make the debt service payable, period, that’s it.  It’s as simple as that.  No great math involved here, folks.  Move along, move along.  Which means there’s not going to be much leftover for us, when the bursting of bubbles have eaten away the last of our family assets.

HOW LOW CAN CENTRAL BANKS GO?

What’s not going to be so simple is figuring out how much lower central banks can go with interest rates, when interest rates are already historically low?  We already see negative interest rates in countries like Japan and Switzerland.  That means when you invest a dollar in those nations’ bonds, you will get back less than a dollar when you cash out.  U.S. central banks right now have but a couple points left with which to play.  

Precious metals and investment savant Jim Sinclair of JSMineset believes negative interest rates are hard to come back from.  But that’s where we’re headed in the U.S.  It’s like being stuck in glue.  Once you set foot on the mousetrap pad you ain’t getting back off.

To get rates back to a traditional level, we would have to get back to a traditional financial environment, Sinclair tells journalist Greg Hunter.  With what is going on today in the world, that does not appear possible.

The lack of monetary stimulation in our economy leaves us only with physical stimulation.  We need to make business to raise our GDP.  We could build roads and our nation’s infrastructure.  Or war, perpetually, which is what past American presidential administrations have specialized in.

And then there’s always gold.  We could buy lots of gold to solve our financial problems.  Russia and China have tripled their gold holdings over the last ten years for this very purpose.  What do they know that we don’t?  And what has the U.S. done lately regarding our gold holdings?

AND THEN THERE’S GOLD

That’s what the second reset is going to be all about.  Who has the gold. 

I’ve been writing about America’s gold holdings, or lack thereof, for a long time, highlighted by this globally recognized post last September regarding what’s going on with H.R. 5404, and the gold backing of the U.S. dollar.  Those who invest in gold for the long term are doing so knowing the rise in gold value will offset their losses in assets tied to the U.S. dollar losing its value.  That’s what all these other countries in the world like Russia and China and their satellites, dominions, and Republics, are doing as they shed their reserves of U.S. dollars.

Jim Sinclair says gold’s recent northern trajectory is here to stay.  He says the price of gold is going to continue to rise, and it won’t face the man made setbacks we’ve experienced for the last fifty years – until the next financial reset.

The next financial reset?  

That’s right, there’s going to be two.  The creator of JSMineset says the first financial reset is going to fail, because the first reset “will be the product of government geniuses, not the marketplace.”  In other words, the marketplace will eventually upset the first reset, and then there will be a second reset of the Western financial system.  

SO WHAT’S A FINANCIAL RESET?

Jim Sinclair says financial resets are Biblical in nature, and they deal with debt.  Going back to the Holy Scripture, when debt becomes too onerous to repay there will be a Jubilee to abolish all the debt.  That will happen here to a certain degree, Sinclair says.  But it probably won’t directly benefit the average Joe, you, or I.

It recently happened to doctors in California, who were told their medical school debts would be paid off so long as they pledged that at least 30% of their caseloads would be devoted to Medi-Cal patients for five years.  There was no word on any kind of debt forgiveness for lawyers.

In the meantime, we’re still going to need a U.S. currency that’s sold to the public in good faith, and can buy us goods and services to keep our families going.  The problem is, according to the pertinent financial statistics, we’re all pretty much in a state of debt, with many of us sinking deeper and faster than others.

Jim Sinclair’s partner, precious metals and financial expert Bill Holter, tells USAWatchdog.com that to understand Jubilee you have to recognize debt as being both an asset and a liability.  It’s an asset to the person who lent it and liability to the person who borrowed it.  

The problem is in the financial psychology of the average American, who equates debt with wealth.  We have been raised to believe debt is the foundation of our financial system, so if you have a Jubilee and wipe out debt, driving the asset side of debt to zero, then there goes the foundation of our entire financial system.  So what are we going to do then?  What will then become the foundation of any ensuing financial system?

Bonds equal debt.  So we also need to consider pensions and / or financial systems that own bonds, which are debt.  If there’s a Jubilee, those pensions balance sheets are likely to take a severe hit.  Who would personally take that hit?  And where will our families be when the pension bloodbath finally takes shape?

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