Anatomy of the Endgame


Anatomy EndgameAs we continue in our discussion of America‘s Financial Endgame, we come to the anatomy of how this process is expected to unfold.  I have separate this process into five “phases” of progression toward an ultimate collapse and recovery.  These five phases are:

  1. Spending and Deficits
  2. Continued Quantitative Easing
  3. Bond Market Collapse
  4. Drastic Government Action
  5. Regress Toward a Sustainable Growth Trajectory

Within each of these phases is four separate steps in the progression toward the next phase.  Each separate step has its own implications toward the collapse of America’s financial system.

Separating these steps into their respective phases, we see the following progression of events:

Phase 1: Spending and Deficits

  1. Government Spending creates the appearance of growth
  2. Inflation held in check by a lack of private lending
  3. Banks restrict lending because of incentives from the Fed
  4. Deficits continue to mount as politicians spend without constraint

Phase 2: Continued Quantitative Easing

  1. The Fed continues to subsidize spending by monetizing debt
  2. Mounting Government Debt precipitates a Spiral
  3. The Fed’s quantitative easing spills over to broadly inflate prices
  4. Inflation causes civil unrest and riots

Phase 3: Bond Market Collapse

  1. The Fed reduces the money supply to stabilize prices
  2. Reductions in the Fed balance sheet spike yields
  3. Higher interest rates expand the Deficit and accelerate the spiral
  4. The Debt Spiral causes bond prices to collapse and spikes yields

Phase 4: Drastic Government Action

  1. The Government moves to socialize institutional retirement assets
  2. Dramatic increases in taxes
  3. Dramatic reductions in government spending
  4. Economic crash – continued riots, multiple burned out cities

Phase 5: Regress Toward a Sustainable Growth Trajectory

  1. Money stabilizes around either commodities or fixed growth rules
  2. Cycle of productive innovation resumes
  3. Stable money and prices keep economy on sustainable path
  4. Eventually, the “real” innovation results in “quantum leap” growth

The map for the future of America’s Financial Endgame is already beginning to unfold.  Many people feel that this is a highly frightening situation, and they are right.  However, the situation is moving regardless of whether we choose to pay attention to it or ignore it.  In my personal view, I certainly hope that the events I have outlined do not come to pass in the way that my analysis leads to believe that they will.  I would prefer that the wealth of an entire generation of American be spared the decimation of continued inflation and an economic collapse.

Unfortunately, as individuals we do not have the ability to directly impact the course of public policy.  There are forces at work which we cannot control.  All that we can do is ensure that the decisions we make are helping us to preserve and protect the physical and financial well being of the people we care about.

Our next discussion will enter the “Spending and Deficits” phase of the progression toward America’s Financial Endgame.

About these ads
Categories: America's Financial Endgame | Tags: , , , , , , , , | 26 Comments

Post navigation

26 thoughts on “Anatomy of the Endgame

  1. 607624 13286I see your point, and I totally appreciate your article. For what its worth I will tell all my friends about it, quite resourceful. Later. 60601

    • I think that the unwinding of America’s financial system is going to catch many people unprepared. Unfortunately, many people are capitalizing on future risks to scare people into buying sketchy financial products. Being informed and learning to see the opportunities that will be presented in the coming years will be paramount.

  2. 81589 768233I believe one of your commercials caused my internet browser to resize, you may well want to put that on your blacklist. 748712

    • I think you were on somebody else’s site. There are many (other) people using the “end game” concept for fear-based sales messages with auto-play recordings, etc. The fundamental thesis of my analysis is that there are different ways to invest successfully, depending on what is happening in the larger macro-economic environment.

      I am not trying to get you to buy gold through an affiliate account.

  3. 366838 556011You ought to take part in a contest for among the top blogs on the internet. I will suggest this internet internet site! 685797

  4. 623460 369685A genuinely fascinating read, I could effectively not agree entirely, but you do make some quite legitimate factors. 33359

  5. 495364 691743I want seeking at and I believe this internet site got some genuinely beneficial stuff on it! . 837113

  6. 101194 4472I like this post a lot. I will definitely be back. Hope that I will be able to read more insightful posts then. Will probably be sharing your knowledge with all of my associates! 790799

  7. 105696 91833I like this website because so a lot helpful stuff on here : D. 844996

  8. 299925 465399Would adore to always get updated fantastic website ! . 318382

  9. 538055 135375Thank you for sharing with us, I conceive this website genuinely stands out : D. 612910

  10. 356550 368946Hey there, Can I copy this post image and implement it on my personal web log? 473683

  11. 51874 425291I discovered your weblog internet site internet site on the search engines and check several of your early posts. Always sustain up the quite very good operate. I lately additional increase Rss to my MSN News Reader. Seeking for toward reading considerably far more on your part later on! 302211

  12. 885429 133821Aw, this was a really good post. In thought I want to put in writing like this moreover ?taking time and actual effort to make a really excellent post?nonetheless what can I say?I procrastinate alot and undoubtedly not appear to get 1 thing done. 753861

  13. 840495 237740I certainly enjoyed the method that you explore your experience and perception of the area of interest 931203

  14. 542538 512279I definitely did not realize that. Learnt something new nowadays! Thanks for that. 220218

  15. 935380 851829This internet web site is my breathing in, really excellent pattern and perfect content material . 3140

  16. 860862 221475Have you noticed the news has changed its approach recently? What used to neve be brought up or discussed has changed. Its that time to chagnge our stance on this though. 403839

  17. 584420 299977It is onerous to search out knowledgeable individuals on this subject, even so you sound like you already know what you are talking about! Thanks 448287

  18. 738297 375597Very good publish, thanks a lot for sharing. Do you happen to have an RSS feed I can subscribe to? 456817

  19. 993932 587005I conceive this site contains some rattling superb information for everyone : D. 612785

  20. 8419 938973Glad to be one of many visitants on this amazing internet site : D. 192581

  21. 981518 464388Hi there! Good post! Please do inform us when we could see a follow up! 682680

  22. 460208 176498As I website possessor I believe the subject material here is rattling fantastic , appreciate it for your efforts. 431055

  23. If some one dessires expert view concerning blogging and site-building afterward i recommend him/her to
    pay a quick visit this website, Keep up the pleasant work.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Blog at WordPress.com. The Adventure Journal Theme.

Follow

Get every new post delivered to your Inbox.

Join 605 other followers

%d bloggers like this: