China on the Cusp of a Full-Blown Banking & Currency Crisis
The comments below are an edited and abridged synopsis of an article by King World News
We have just seen the largest annual depreciation in the Chinese yuan in 27 years. China is much closer to having a full-blown banking and currency crisis than winning a hegemonic war against the US.
If central banks do not find another way to inflate, the entire global financial system will melt down.
The current central bank-run financial system is 100% debt based, and a debt-based financial/economic system only works if debt is constantly added or borrowed into existence. The moment this stops, the financial system implodes.
Wars, Congressional acts/policies, disease processes, warp-speed vaccines, engineered crisis after crisis, etc. are all mechanisms pushed upon an unsuspecting public to pull debt into the system.
Not only does the system demand that more debt be created, it must be created on an ever-increasing basis just to sustain the current environment.
The borrowing of debt into existence, which at its core demands that the currency expand/inflate, is inflationary.
Currently the world is being sold a lie, which is that inflation is running rampant because rates are too low. But raising rates is meant to kill demand, not lower inflation.
To lower inflation, all the Fed has to do is contract the money supply. If the Fed really wanted to lower inflation, it would increase the capital reserve requirement of the banks (currently at zero), and this would contract the money supply.
The last thing the Fed wants to do is contract the money supply; in fact, it wants to expand/inflate it. The power of any central bank resides in its ability to inflate. How do you kill a central bank? Prevent it from issuing more debt.
Central banks will never give up their ability to inflate. They are the most powerful organizations on earth, none more so than the Fed, which has the full backing of the armed forces, including their nuclear arsenal—hence the petrodollar.
We can expect another other mechanism that will allow the Fed to continue to inflate. Another disease process; expanding war; some new Congressional act/policy; another crisis… Some new way to borrow/buy debt.