Negative rates and collapse fears; two prerequisites to enable the largest transfer of wealth in human history

Think about it; If the world goes to war, where will the U.S. get its oil and agricultural goods?
We are being played as the suckers during the largest transfer of wealth going back to Adam

We need to start contemplating the economic ramifications of a global conflict scenario, because the Anglo-American elites and their companies are already way ahead of us.

Where do you think the United States will procure its energy in a post-WW III world? They will get it right here at home, and when their firms, with their zero-cost borrowings, are done buying up all the choicest fracking acreage, they will soak us forever. The best part is that fracking offers some of the best energy opportunities in a post economically-collapsed environment, since the start-up costs are a small fraction of traditional methods. But according to the alt-financial media, fracking is a myth, built on cheap rates.

What’s the game here? Beat down and bankrupt oil and gas assets, beat down and bankrupt agricultural assets, [then] sweep in and buy them all up with the zero cost borrowing?

That’s what you are saying, no?

I almost wonder if the Green New Deal isn’t part of the ruse to take the eye off oil and gas.

Incredible if true.

Have a good weekend.

Alex -Illinois

If Exxon, Chevron, and BP are buying up shale oil assets hand over fist while the underlying asset prices plummet, I think it’s safe to say that shale oil has an excellent future, especially in a post economically-collapsed environment or post-war world. These blue chip, globalist firms know much more about the industry than ZeroHedge and the Economic Collapse Blog. Large drilling projects with multi-billion dollar start-up costs would no longer be practical under such scenarios.

Think about this; Wouldn’t it be in the best interest of the elites to watch asset prices collapse? Wouldn’t it be in their best interests to denigrate the shale oil concept to suppress asset values? I say it would.

I also find that concepts like the “green new deal” make it more difficult for the typical farmer and oil driller to stay in business. Government regulation of all kinds, while ostensibly promulgated as a public good, only work to crowd out investment. Only the biggest and most well-funded firms can stay in business and keep up on the regulations. It’s as if the government acts like an organized crime enforcer, so only those able to play along can remain in business. The government benefits, but so do the large multinationals who are stripped of extra competition. Very often, the foundations that promote ideas like the green new deal are funded by the multinational firms who we think would be against the regulations.

What’s worse, is that the more regulations that are heaped onto the backs of farmers and oil drillers, the lower their assets prices move over time. More and more suppliers drop out of the game – all in the name of a protecting the environment.

More trouble for Indiana farmers: their land isn’t worth as much.

The annual Purdue Land Value Survey finds the best farmland selling for $456 an acre less than it did last year. That’s a 5% decline, and a 16% drop since values peaked five years ago. The current average is the lowest since 2012.

Farmland Values for Best Land Sink to Lowest Level in Seven Years; WIBC.com – Indianapolis, IN, August 26th

How about the so-called “greedy bankers” who turn the American and Canadian farmers into debt slaves. The American and Canadian farmers mortgage their lands and use high-cost debt to grow crops that can be grown for less in South America.

I think of all that farm land in the plains states, whose owners can no longer service their lands and debts within the constraints of the globalized commodity markets. I can picture a scenario where land prices collapse and the multinational food manufacturers swoop in and use their zero-money to buy up assets for pennies on the dollar.

That’s right, we are being played on a scale that is unimaginable. The elites are guiding interest rates and the yield curve lower, so they can drop their borrowing costs, which will facilitate their efforts in buying up the world’s best assets. It has nothing to do with raising prices and economic growth. Lower rates actually inhibit loan formation and help to suppress economic vitality.

Lower rates only work to consolidate corporate and government power over the populace, since these entities are the only ones who are able to borrow at these rates for general borrowing purposes. You and I may be able to get a cheap mortgage, but that is an asset-backed loan whose underlying collateral will not generate offsetting income. Only the best and biggest will be able to exploit these debt markets to buy up the world, while the rest of us have our assets slowly stripped away from high holding costs.

Martin Armstrong is out there talking up his big bang theory again and that it took place as he said it would. Talk about bias and backfire effect. He was all wrong, but that doesn’t matter to the thousands of his followers who can never be convinced that they were gamed as suckers. If it wasn’t collapse from high interest rates then it’s a collapse from low rates.

Armstrong mentions in his post that the politicians are leaning on the central bankers to buy up all the debt and keep rates low. But, if it were up to his cycles, nothing the central banks and politicians could do would be able to save the system he says has been collapsing since 2015. Furthermore, his cycles mention a bottom in 2020. But if we didn’t have a top going into 2015, how can we have a bottom going into next year? So many questions, so few answers. Armstrong is just covering his tracks. I find it highly likely that this system will drag on for years and rates will continue to go firmly negative.

This whole scheme of negative rates is one that is only benefiting the elites of the new world order and their controlled firms. The worse the economy performs the better their financial system performs for them.