HOW DO YOU PREPARE YOUR FAMILY FOR A FINANCIAL RESET?

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Does anybody who’s ever tried keeping their family’s heads above treacherous financial waters have any idea what in the world is going on right now?  Overseas, we’ve got accusations of chemical attacks and fake chemical attacks simultaneously coming out of Syria and England.  We’ve got threats of a major trade war between the United States and China.

Domestically, we’ve got a U.S. dollar that is worth four cents on the dollar, with the value declining as I write this.  The U.S. bond market and stock market, both pegged to the U.S. dollar, are filled with too high prices and too much risk, so they no longer provide a guaranteed safe haven to protect our assets from the declining U.S. dollar.

We have President Trump with his tax cuts, and Central Banks that are talking about raising the interest rates.  Our economy has been stretched to the max.  This last series of programs that were put into action by the Federal Reserve Bank since our last crash in 2008 have failed.  And all of this is happening at the exact same time.  It’s a recipe for disaster, and now someone is talking about a complete financial “reset,” and we have to wonder how that will affect our ability to feed and clothe our families during difficult days to come.

Why is all of this happening right now?  According to Lynette Zang, Chief Marketing Analyst at ITM Trading, ten years of American Central Bank failures means that all of the fiat money assets that were targeted for “‘reflation’ have created tremendous bubbles, and now they’re trying to undo the experiments with our economy.”  They’re trying to undo what?

Zang, who has worked in commercial banking since 1986, says what we have witnessed is a Central Bank rally followed by what appears to be a Central Bank crash — with whatever is to follow.

“The Fed is going to start tapering their stimulus,” the former stock broker and investment banker says.  In other words, print, print, print money is all we know, and now the scant part of that flow that came down to us is being cut off.

Zang says what fuels this whole financial system, which is called a “fiat currency system”, is the constantly compounding debt.  “And interest rates are the tools that they use to speed that up or slow that down,” she says.

Our problem is the world has been anchored at zero percent interest for too long.  “That means they’re out of the tools that they typically would use to do that,” Zang says, “which is why they’re trying to unwind and normalize something that isn’t normal to begin with.”

Our money system is not normal to begin with because it is based on debt.  The best we can do in our present day financial reality is borrow more, of what the Federal Reserve “prints”, so we can buy what we can afford to borrow — at a price, that compounds daily with interest.  And now the Federal Reserve Bank has no more tools to keep it going.  The American financial house of cards is rapidly crashing, and what exactly that means to us, the average person struggling to make a living and raise a family of four, will be up to us.

According to Zang, “they’ve” been calling for a “reset” since 2013, and “they’ve” run out of options.  There’s no purchasing power left in the U.S. dollar.  All the currencies in the world that are tied to the U.S. dollar have eroded over time due to inflation, to near worthlessness.  And that’s what all of our family law community assets are tied into.  It’s all going down the tubes.

“They’re talking about a financial reset,” Zang says, “but it looks more like a planned demolition.”  The Central Banks are in huge trouble.

We, here, in the real world, have no choice but to get our heads around this concept of a new financial reset.  We need to understand what’s going on.  Big changes are happening to us and we’re not being told about it straight forward.  We need to find answers to tough questions.  We need to ask those tough questions.  We need to understand how this financial crisis that is happening, and is apparently going to get much worse, is going to affect us if we’re an average family of four who just happens to be going through the biggest crisis of our lives, and it’s called divorce.

So what is a financial “reset”?  Is it getting rid of the debt, a new currency?  What?
“Transitioning us into the new financial system,” Zang says cryptically.  “Establishing the new financial system they have in mind, which ties into cryptocurrencies and cyberspace.”

If what Zang says is true, then the situation we find ourselves in appears clear enough.  We are going from a debt based financial system to one that is centered around crypto currencies, cyberspace, and digital money controlled by a central governing process.

If we’ve gone to the grocery store lately or tried to buy movie tickets we know our dollar is buying less.  Everything we own seems to be going down in value while everything we need gets too expensive to buy.  We’re forced to settle for less and make difficult choices as to how we’re going to spend our precious remaining financial resources.

The old financial system that started under U.S. President Richard Nixon in 1971 was based on debt.  That debt, and all the compounded interest that has accrued on it, stands today as not payable.  And the interest on that debt continues to add up.

Zang says a “reset” to the financial system begins with a reset of the debt.  She says we have been dealing with nothing but compounding interest, which is “what creates money in the system, and we’re never going to get out of debt.”  It’s the way the system was built and they are going to have to “reset” the debt, so we will be able to continue to function economically as individuals and a nation.  But at what price?

Our currency, the U.S. dollars we spend to buy food, gas, and clothing, are merely debt instruments that don’t pay interest.  Our financial system is based on the foundation of never ending debt.  We’ve reached the end of the line.  Compounding interest will never be paid off.  “It has to reset.”  “The system doesn’t work anymore.”  “It died in 2008.”  “It’s a zombie system.”  “The entire system will crash.”  These are Lynette Zang’s words, not mine.

And the question remains.  What do families have to do to have a chance to survive in a rapidly changing world like this?  The answer is they have to learn the truth of the world that swirls by them while they’re busy making plans, or playing with their cell phones.  Heads of families have to take the time to learn to understand what is truly going on in the economic realm in which they live.  Right now, we in America are living on borrowed time, financially, and most of us don’t even realize it.  We might be aware that something is going on, that bills are becoming difficult to pay, but we don’t really pay attention to finding solution to our ever increasing financial difficulties.

That’s why we’ve got to deal with the true nature of today’s realities, financially and otherwise.  We’ve got to do our homework.  We’ve got to weed out the lies in information we receive and determine who’s telling the truth.  We’ve got to understand that, financially, our dollar may be about to disappear.  That there most probably is some kind of major change coming to our financial system and the currency we will use to live on.  That we’re going to have to understand what that is all about, how it will affect us, so we can figure out how to preserve what assets we have left.  We must learn to understand how a financial “reset” will affect the future of our families.

Where does your family stand on this?

 

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CENTRAL BANKS/GOVERNMENT BATTLE FAMILY FOR PURCHASING POWER

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To understand finances in any meaningful way – where one might actually be able to help his or her family survive the oncoming financial collapse – one must at least be aware of how central banks play with our purchasing power, and how that relates to interest rates and gold.  To help shed some light on this financial shadow, James Turk, writing for Goldmoney, alerts us to a financial indicator called backwardation. According to Turk, there are two types of backwardation, money backwardation and commodity backwardation, and he iterates that “both apply to gold.”  He explains that backwardation (and something called contango) are “a mathematical result that reflects the cost of money as measured by the interest rates of one (national) currency relative to another.”  Okay, and…uh…what exactly does that have to do with the price of milk in Ventura? Turk goes on to explain that interest rates are set to reflect the risk that the currency might be debased through governmental and central bank policy.  In other words, we, the consumers, who presumably are the “market”, would lose our purchasing power due to central bank manipulations that could thwart “real and accurate price discovery” in the marketplace.  Hmmm, now why would a central bank like our Federal Reserve debase the value of our hard earned dollars to make it so we had less purchasing power? In 2008, Chris Powell of GATA.org asserted that, “There are no markets anymore, just interventions.”  Which means that the interest rates we deal with today that affect our purchasing power are not so much a reflection of true market conditions, but result from “heavy-handed central bank manipulations” that Turk says thwart “real and accurate price discovery by the market.” But Turk also emphasizes that central banks can only push so far (a limitation he calls “pushing on a string”) before market forces begin to push back.  Central banks in countries such as South Africa or India, whose interest rates tend to remain relatively high as compared to other currencies due to the fact they have a greater risk of being debased by government and central bank mismanagement, might then lower their own interest rates.  This would cause holders of the rupee and rand to sell the currency, which in turn would cause the exchange rate to drop.  This is because the risk of holding those currencies at lower interest rates would be perceived as being too great compared to other less risky investment opportunities for one to place their liquid capital (money). So, it appears there are limits as to how much damage “central bank intervention” can actually cause our families, or what it might be able to accomplish.  And based on what Turk says, this is because the people of the world, who we call the “market”, act as a “guardian that carefully watches central bank tinkering and responds to it by moving their money around to better suit their risk preferences.” But what if we don’t have any money to move around to better suit our risk preferences with?  We’ll try to figure this out.  And more.  As this discussion about family finances, central banks, interest rates, and gold continues…