SOTN editorial note: Something truly large is happening in the kingdom, where the "Financial Masters of the Universe" have ruled indivisibly since Babylonian Banking Cartel settled over 4000 years ago.
From the beginning of September to October 2008, it was apparent to the indiscretioners that the full Global economical and Financial strategy was in ruins. It's truly remarkable that financial engineers and marketplace managers were able to keep Global Gambling Casino has been alive always since – for the long 18 years of artificial maintenance of Ponzi's largest pyramid strategy in planet history.
And guess what: not only is the end near. The End Come!! As follows:
Opinion maker: Bessent Note at Camp David proves that "The End Is Near"
Hal Turner
OPINION-REDITION — U.S. Treasury Secretary Scott Bessent on Friday, July 31, revealed a list of "things to do" during president Donald Trump's government meeting, pointing out that he is considering buying US$5 to $10 billion in nipponese yen – a photograph of Reuters taken during the gathering (shown above) at Camp David shows.
While the planet focuses on whether Trump's latest threats "closed and loaded" are yet another bluff, the actual communicative takes place not on the Strait of Ormuz, but on currency markets. Yesterday, the secretary of the Bessent treasure was photographed with a list of "To do", which featured: "Buy nipponese yen (JPY) $5-10 billion." You don't compose on a $10 billion currency intervention notebook for a regular meeting. You do this erstwhile the world's 3rd largest economy is close to detonating the global bond market.
This is the economical front of the same war you just read about. While the U.S. military exhausted ammunition to keep the air campaign, The U.S. Treasury is losing credibility to keep its financial campaign.
Japan is the largest abroad holder of U.S. government debt, with over $1.1 trillion of government bonds. It besides has an economy that is crushed to dust by the same energy crisis that strangles the remainder of the world. The price of LNG — fuel that Japan must import to keep the lights on — increased by 77.5% a year. This means that Japan's trade balance is bleeding and Japan's currency, yen, has fallen to the lowest level in 15 years against the dollar.
Breaking yen is simply a disaster for Japan. It makes imported energy even more expensive, crushing home consumption and industrial production. However, the collapsing yen is besides an existential threat to the United States, for 1 simple reason: nipponese investors who have borrowed inexpensive yen for decades to buy US assets with higher incomes, now face a historical call to pay margin. If the yen falls besides hard, they are forced to sale these US bonds to cover the losses.
If Japan sells US bonds in large size, interest rates in the US will emergence rapidly. If interest rates in the US emergence rapidly, the real property market, the stock exchange and the national budget will collapse simultaneously. The United States was so in a preposterous position to keep a nipponese yen — not altruism, but due to the fact that Japan holds a weapon to the head of the global bond market.
This is where Bessent's memo becomes darkly comical. The U.S. Treasury does not buy yen for freshly printed dollars — it would only add inflationary fuel to the already raging fire. Instead, they sale their euro reserves to finance the acquisition of yen. The logic is simple: sacrifice the euro area currency to save the dollar from the consequences of nipponese bonds being dropped.
It is voodoo economy at the end of the empire. The U.S. is now actively fighting a monetary war against its own allies — disposing of European assets to sustain the nipponese financial system, which is structurally insolvent under the burden of energy costs that it cannot control. It's "Zombie QE", utilizing crazy and dangerously reckless macroeconomic tools to bring dead markets across the planet back to life. It's an indicator of large depression.
The European Central Bank is silent for now, but it cannot ignore it forever. In practice, the US exports its financial instability to the euro area, weakening the euro at a time erstwhile Europe is already facing a diesel crisis, a broken industrial production and a gas retention level that will not last the winter. If the ECB responds by selling its own dollar reserves to defend the euro, the civilian war in central banks will erupt and the full strategy of fiduciary currencies after 1971 will face a crisis of trust that it will not be able to survive.
Meanwhile, the profitability of the 10-year nipponese government bond slow grows to levels that make the burden on nipponese state debt mathematically impossible to handle. The Bank of Japan is trapped: rise your feet to defend the yen, and you will bankrupt your own government; Lower interest rates and yen begins to fall freely, triggering the alleged dump of the bonds you want to avoid.
The Bessent leak is not an isolated case. This is the first visible crack in the dam to break. The US Treasury does not conduct coordinated currency interventions in the event of regular turbulence. They do so erstwhile the strategy is simply a fewer hours or days distant from a cascade failure.
The military and financial situation are 2 fronts of the same war. The U.S. is incapable to hold a military run due to the fact that their fuel and ammunition are exhausted. The US is incapable to keep the financial strategy due to the fact that its credibility and patience of creditors are exhausted. Both are manifestations of the same basic reality: the post-war Petrodollar order, which was based on inexpensive energy and the countries of subordinated creditors, is falling apart.
Trump can bluff through another circular of "peace talks". The treasure can conduct another circular of currency interventions. But no of them are able to produce a barrel of acid oil, a cubic metre of natural gas, or the trust of a creditor who realized that the safety had disappeared. The war is over. The financial strategy is ending. What we're watching now is the last act of both.
https://halturnerradioshow.com/index.php/component/content/article/op-ed-bessent-note-at-camp-david-proves-the-end-is-nigh
