As the Delta variant spreads across the globe, countries, including the U.S. and Australia, have moved toward further lockdowns. The government impositions due to COVID-19 may be the new normal. "Political and cultural norms that Americans and Australians share - around liberties, around civil rights, around democracy - these things have been suspended because of a pandemic," says Australian economist John Adams.
Related Articles:
***WEEKLY SPECIALS ON SILVER***
1000 oz silver bars: only $1.69 over spot per ounce delivered plus 90-days free vault storage
2021 1 oz Silver Britannias: only $3.95 over spot
***CALL US: 1-888-81-LIBERTY (1-888-815-4237)***
0:00 Intro
3:47 Covid lockdowns
13:59 Financial preparedness
25:11 Protecting our liberty
35:33 The Fed's approach
==================================
BUY SILVER & GOLD at the best price of any listed dealer and support this channel!
CALL US: 1-888-81-LIBERTY (1-888-815-4237) or email your name and phone number to LibertyAndFinance@Protonmail.com
Donate to Support Our Mission!
https://www.Patreon.com/ReluctantPrep...
or
https://www.paypal.me/ReluctantPreppers
==================
Subscribe to Be Notified When We Post to YouTube (it's FREE!) ► http://bit.ly/Subscribe-Free
Liberty and Finance LLC receives financial compensation from its sponsors. The compensation is used is to fund both sponsor-specific activities and general report activities, website, and general and administrative costs. Sponsor-specific activities may include aggregating content and publishing that content on the Liberty and Finance website, creating and maintaining company landing pages, interviewing key management, posting a banner/billboard, and/or issuing press releases. The fees also cover the costs for Liberty and Finance to publish sector-specific information on our site, and also to create content by interviewing experts in the sector. Liberty and Finance LLC does accept stock for payment of sponsorship fees. Sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734. The Information presented in Liberty and Finance is provided for educational and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. The Information contained in or provided from or through this forum is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice. The Information on this forum and provided from or through this forum is general in nature and is not specific to you the User or anyone else. YOU SHOULD NOT MAKE ANY DECISION, FINANCIAL, INVESTMENTS, TRADING OR OTHERWISE, BASED ON ANY OF THE INFORMATION PRESENTED ON THIS FORUM WITHOUT UNDERTAKING INDEPENDENT DUE DILIGENCE AND CONSULTATION WITH A PROFESSIONAL BROKER OR COMPETENT FINANCIAL ADVISOR. You understand that you are using any and all Information available on or through this forum AT YOUR OWN RISK. All Rights Reserved.
See Full Interview Transcript Below
Dunagun Kaiser: Welcome back to Liberty and Finance we have a returning guest we haven't been able to get on for some time this is John Adams he is an Australian economist he's a fierce advocate and a champion for the rights of the ordinary people in fact he's co-host of the show In the interest of The People together with his co-host Martin North he's championed numerous causes we're going to talk about a few of those but John thank you for joining us here on liberty and finance this Wednesday July 27, 2021
John Adams: Thank you Dunagun for having me and it has been a while since we last spoke and it is good to see you again
Dunagun Kaiser: I want to brag just for a moment so people have a little bit of understanding if they don't know you well just an example just a spattering of the causes that you have championed in the past like a year or two that we've been interviewing together one is you we had through you got introduced to a construction expert who talked about frailty of shoddy workmanship and cracks forming on high-rise buildings as part of a big scandal in Australia, well people didn't think that was right on topic of risks that were clear and present dangers until we recently had a condominium collapse in Florida due to some inadequate inspections that sort of thing and inadequate action being taken in response to findings there, you've been championing the 10,000 dollar cash transaction ban that was being proposed by the by the Australian parliament you fought vigorously against that you submitted papers you spoke against that and I think actually helped to influence the outcome of that in a positive way for people's freedom you talked to us about faintly the Australian real estate bubble and a coming collapse of the financially overstretched asset prices there that were influenced by inflows of foreign money coming into the country and regulators turning a blind eye that sort of thing you've talked to us about interventions in the precious metals markets the importance of people holding physical metals rather than unallocated, excuse me, allocated and pooled metals so that they really have legal title to their things they possess and don't just have the illusion that they're actually have something that will be there for them if the chips come falling down and on and on and on you were you were quite vocal in criticizing some of the management of the US elections, just always standing up for the authentic needs and rights and concerns of the ordinary person well you've been quiet recently I think I understand from some of the conversation you've had with me that you've been needing to because of certain I guess developing activities that you're involved in and some perhaps future major outcomes that we'll be looking forward to hearing more from you about in the future but today we wanted to get together to talk about a serious matter that has affected most of the people in the globe and not the least of which is the people of Australia currently and that they're being deprived of their liberty being deprived of their freedom through severe lockdowns and we'd like you to talk to us about what the situation is on the ground in Australia with these lockdowns currently and what you see unfolding as part of that what are the big themes how it's really affecting people's lives the difference between people who are prepared versus unprepared and what you think ordinary people are able to do about it now and where you see this heading
John Adams: Sure, so yeah so here in Sydney now I'm in the central business district of Sydney today but I typically live in a town which is about 90 minutes south of Sydney, so in the area that I live in but also what they call greater Sydney which is Sydney and some surrounding regional towns we've been locked down for four weeks by the New South Wales state government under what they have called the Public Health Order and initially it was two weeks then and this is all on the basis of this so-called delta virus that started in India and that has started to spread and, the Premier, so the leader of our state has continued to say that this variant is a game changer because it because it is more contagious compared to the original version of Covid19 so on that basis we went into a lockdown to be honest the initial lockdown was a light touch because our Premier is very sensitive to the economic concerns and needs of our people but then when the the outcome that they were hoping on the community transmission wasn't turning out they've started to turn the screws more and more so initially was supposed to be two weeks and then they extended for another two weeks and then in the second fortnight the construction sector in greater Sydney was basically shut down and basically everyone was told to stay in your home and that a lot of retail activity was also curtailed as well and fruit of movement was basically suspended for a lot of people and obviously there was I guess hope and some reassurances that we're going to persevere for a short amount of time I get this delta variant under control and then we can go back to some sort of normality well yesterday the Premier announced that things have gone completely out of control in terms of the number of cases in terms of community and transmission and she announced an additional four week lockdown for greater Sydney so at this stage we are going to be locked down for two months and for a lot of people this has caused huge issues and those issues in terms of what you just said in your introduction and perhaps slightly different to some of your viewers and supporters in the united states Australia has the biggest debt bubble in the history of the country record real estate prices Sydney in particular has the most debt but also has the highest house prices now it was in January this year on on the show that I do with Martin North In The Interest of The People there was a there was a mood in Australia as well as here in Sydney that the worst of the of Covid19 had passed this that that there were some lockdowns particularly Victoria last year and they and we had opened up and there was a mood in the atmosphere that 2021 would be sort of the year of recovery, everything would be good, everything would be fine and everything will get back to normal and because of that atmosphere a lot of people rushed into the real estate market late last year earlier this year with record mortgages on the back of record unprecedented fiscal and monetary stimulus now controversially I have interviewed twice a a professor here in Australia called professor Ted Steele who's a molecular immunologist who has a very radical theory as to what Covid19 is and where it's come from based on his analysis and some of the data that we showed our audience we were warning our viewers in January that we expected Covid19 to return in Australia in 2021 and that there would be some form of lockdown or restrictions so we had warned our viewers that that people shouldn't be complacent when it comes to financial matters cash flow etc. people need to be flexible and agile and people needed to be obviously getting their debts under control as well well now that we have gone through this process over the last four weeks I mean the reports of people who just do not have enough income to meet their cash flow obligations particularly with these record mega mortgages, it is starting to crunch, there has been some government support, so the state government is providing support for businesses, the federal government's providing support for individuals, so far in the first month of lockdown the amount of support in terms of cash flow has been completely inadequate compared to what the requirements of citizens are and so you can understand that when you have a high inflationary environment with reckless amount of debt you actually need quite a bit of cash flow to meet all of your obligations and while you've got a full-time job I mean like here's the thing even before the lockdown even though that a lot of people had full-time work, stress like mortgage stress, rental stress were at record highs in Australia according to Martin North's own data set, so we had record stress before the lockdown and as we've had the inadequate support and that support has been delayed so for example businesses could only apply for support starting the 19th of July even though for the first two and a half weeks there was no support and still we've had an announcement of additional support, financial support in terms of yesterday from the federal state government but dare I say that's going to be inadequate, so obviously you started your YouTube show about reluctant preppers I you and I have been talking for several years about getting your fiscal house in order and so for me having you know pretty much no debt having a lot of savings precious metals and obviously taking a number of precautions myself with my wife and my kids and I have been able to weather the storm of lockdown reasonably well so far in the first four weeks whereas a number of other people across the country, sorry look at not only across the country but particularly in Sydney have really struggled, that I mean last year we had a very generous support program when the country was in lockdown and banks in particular gave blanket mortgage holidays for mortgage holders, banks this time around this year are very choosy about who they give a new mortgage holiday to and and I just heard a couple of days ago that there was one person who has a very large mortgage construction worker went to his bank and said can I have a mortgage holiday because I can't work because of the lockdown and the bank said no and now you are starting to see people who are desperate and dare I say that desperation could lead to social, civil and political unrest in the last weekend we saw a thousands of people march in Sydney against the lockdown and dare I say the lockdown's not just a protest against the economic concerns that people have but I think there is a sense that what we have seen under the advice of health bureaucrats is the imposition of a totalitarian surveillance state and this has been one of my biggest concerns Dunagun is that political and cultural norms that Americans and Australians share around liberty, around civil rights, around democracy these things have been suspended because of a pandemic and there is a big fear that we will not go back to the way things were pre-Covid19 in terms of our political and civil rights and so there is a concern that what these new measures are going to have some form of permanency and that will have a fundamental implication for the forward life of Australians and Americans going forward so things are in a real mess I think things are going to get worse and to be honest there was a question asked of the Premier yesterday by the end of August can you give a guarantee that we will come out of lockdown and the answer is I can't give that guarantee it all depends on what the data is saying what the case numbers are saying and it depends on the behavior of citizens over the next four weeks and so there is some concerns that lockdown will go into September, maybe October, there are rumors that it may even go through to Christmas so to be locked down to three to six months for those who have who are not prepared and obviously you know your whole mentor is to be prepared so for those who are not prepared we are seeing we're going to see some very bleak times here in Sydney
Dunagun Kaiser: Boy you touched on a lot of topics there gosh where to start one of the things you mentioned in passing a couple of times was preparedness because you mentioned financial preparedness that's got to be key and critical at a time like this when so many people's livelihoods they've been severed from their ability to exercise their profession, to earn, to work that sort of thing big big impact on people's lives very stressful and then it leads immediately to things like how are they going to buy food, how are they going to pay their mortgage and that sort of thing the next step beyond that was other types of preparedness you mentioned and you mentioned that you were able to weather this we certainly weren't among those that were fighting for toilet paper in the US you know during the original Covid season in 2020 because we had arguably laughable amounts of some non-perishable things around the house we we made some humorous advertisements in the past where my wife would go to open our large storage room and she couldn't even get into the door because it was floor-to-ceiling with whatever paper towels or toilet tissue or bottled water that sort of thing so we certainly had you know we're well supplied in many areas but eventually most and most people aren't most people don't have those reserves ahead of time and when they find themselves in a one week okay maybe two weeks maybe but when you start talking about months and months on end that would stretch the bounds of most anyone's physical preparedness that they had made unless those who live out in the country and have their own garden and their own chickens and you know well water and that sort of thing and can just sustain themselves on an ongoing basis and that leads to desperate people we when we interviewed Jerry Robinson a Christian economist in the us he talked about his father teaching him lessons about that even though he had gone through harrowing military challenges in his career his father that he said this the scariest the most frightening thing he'd ever seen was a hungry human being in the how desperate people can become when they really realize that it's existential for them and that can lead to a whole different level, it isn't just protest because we don't like the situation anymore, it can become a protest of desperation that's a completely different level of risk to everyone involved, one of those aspects about the risk is the potential for backlash from officialdom that can then be justified because people were misbehaving you know in the official view and therefore it justifies these clamp downs. Could you talk to us a little bit more on that theme you addressed near the end about this perpetuation of restrictions and this new imposition of a totalitarian state because ironically it has seemed more and more you know we were on the fringe you could say when we started our channel in 2013 Reluctant Preppers talking about preparedness at all was not mainstream at that point however in the last year and a half it's almost seemed that those who were the conspiracy theorists or the tin foil hat wearing people have been the most accurate recently in saying that folks this is not going to be over there's going to be another twist on this we're not going back to any semblance of normal, any promises that you're going to get back to normal if you go through these hoops and these gates of behavioral controls is a false hope because you can go through all those steps and A that's not a normal to have to do that if it curtails all of your natural rights and liberties that sort of thing and second (B) of all even if you do that you're not going to get back to freedom can you talk to us about this perpetuation that you're seeing happening and where you think that's leading to and perhaps what some people can do about it
John Adams: Sure, so one thing I'm going to say Dunagun is before we talk about the perpetuation of totalitarian surveillance the totalitarian surveillance state I mean what one of the biggest problems in Australia in terms of the credibility of these policies is the inconsistency in which these policies are being applied so what one big thing that happened in Australia and I'm sure it happened in America as well is when the murder of George Floyd happened there were protests around the world now the now there was protest all of Australia with Black Lives Matters in most states it was these were illegal protests they were unauthorized but they still went ahead and the government and the police did not crack down now in New South Wales it was slightly different so initially the government said okay people are outraged with the word of George Floyd we will let people march, then then there was a backlash on in in some quarters of the media saying well but we're in a pandemic how can you let people march if there is a pandemic so then the government backtracked and said and this was the day before the protest and the New South Wales government here in my state said okay the we will not allow the protest to proceed because of the risk of the pandemic now on the morning of the protest here in Sydney the organizers appealed the decision of the government to the New South Wales Supreme Court and the court that morning gave approval for the protest so the only place in Australia where the protest the Black Lives Matter protest was legal was actually in my state so that that that's a slightly different situation compared to some of the other states in Australia but but what I think politicians and bureaucrats and media media personnel in this in my country fail to understand is by allowing tens of thousands of people to march when you said there was a pandemic the credibility of that narrative was just destroyed because people today are saying well how is it that we can march last year but we can't march this year and I have to say that the response by the government and the response by police to the protest that happened just this past weekend is night and day compared to what happened last year and I think that inconsistency is really driving a lot of dissidents you know to basically discount whatever the government says to say that well you know we don't trust anything you say I have to say there is a very I think there is a big disconnect in terms of the risk assessment so in my state the Premier they do these daily press conferences at 11 am the Premier keeps on saying we are acting on the Health Advice now the Health Advice is never published we don't know exactly what advice the government is receiving so the chief health officer her name is Dr. Kerry Chan, when she gives the advice I mean she's at the press conferences and she gives her own medical update about what's happening in the state so she's not avoiding media scrutiny but I would say is that what she advises privately is not revealed, it's not open to independent scrutiny, the journalists who go to these press conferences do not ask tough adversarial questions so and my own assessment is that the public health risk is way lower than what we're being told and therefore the risk the policy response of lockdown and some of these other issues are being imposed are disproportionate to the public health risk and and so that's where I think the concerns about totalitarianism is coming in because if this was for example the black plague and the black plague in Europe destroyed half of the population so Europe went from a population of 40 million to 20 million in the black plague or if you have Ebola where the case fatality rate is about 50% then you could understand the need for the most extreme of extreme measures but when the survival rate of Covid19 is in the order of 99.7% people are saying well sure we cannot we can't stop people from dying because death is part of life is part of the humans existence so there has to be a rational scientific based cost-benefit analysis to understand well yes people are going to die but how many people are going to die and some statisticians talk about excess deaths and what is the most appropriate response and I think the data coming out of Sweden in particular shows that while you will have a slight increase in in excess deaths, those excess deaths typically happen among older people who have reached life expectancy anyway so the question has to come in is are you getting any genuine benefit by these lockdown policies or should you just let the virus spread among the general population and take precautions among those cohorts that are particularly at risk like the elderly so because the public health risk oh sorry because the people view the policy response to be disproportionate to the to the health risk and because of some of these inconsistencies about who can march and when versus you know left-wing causes versus other causes there is a concern that we are seeing our way of life being completely changed and then obviously you start to get into conspiracy theories you get into you know commentary by Klaus Schwab and the the Great Reset and the and the view of the elites that they want a new sort of society and Covid19 is the cover so this just generates a whole host of suspicion about what's really going on because common sense dictates that what these bureaucrats and politicians are doing it doesn't make any sense and again there is I mean while America has the constitution you've got the bill of rights you have various legal processes that can protect the whims of government in in this country we don't and a whole host of norms which were protected by say common law all by just British or English tradition have just been evaporated and destroyed by this Public Health Order and we are seeing a set of precedents being established where whether it's for a pandemic or for climate change or whatever excuse they want to come up with they can say well we've just implemented these extreme measures because the risk well the risk that the we the government says exists requires this policy response and people are very nervous about entering into a system which reflects East Germany rather than a traditional western liberal democracy
Dunagun Kaiser: Boy you've touched on a whole bunch of things there again I just wanted to respond to a few of them yeah you talked about the arbitrariness the inconsistency and yet the claim keeps being made we're following the data, we're following the science, we're following the medical recommendations and yet when you talk about the real risk the fatality rate that sort of thing if you say okay if this is really about medical health, if this is really about the public health, then we should be talking about maximizing the well-being of people and that means we certainly should not be denying or withdrawing either preventative or supportive treatment and care that we know is is available has been proven effective in multiple places around the world and yet I don't know how it's happening in Australia but certainly in the US we have doctors afraid of losing their positions, afraid of losing their licenses, being officially sent letters from the heads of the the medical boards of their state saying you will lose your license if you write certain prescriptions or if you provide early treatment to patients who are not yet in you know urgent emergency situations the respiratory problems so the same time we're saying we're following the science and following the data but we're withholding care and trying to not minimize the impact but maximize it seems the harmful impact on the people the other thing you mentioned was the cover story being used it doesn't justify the withdrawal of such severe encroachment of people's rights and liberties, the actual harm being caused by that in many estimations is far outweighing the benefit and how unnecessary so much of that overreach is and another way that you can look at both of those together is that we're in even in the us where we have the constitution and the bill of rights you can say that the that the government is following the form of constitutional leadership but not the substance of it so we you know don't necessarily have the right to assemble don't have the right to freedom of speech don't have the right to all of these things that we're supposed to have guaranteed to redress you know government for wrongs and to bear keep and bear arms and do all these things and yet so the constitutional forms are being followed they're still courts, legislature and executive branch appearing to go through the motions of doing their functions and yet they're not upholding any of the constitutional justification that gives them that those powers in the first place we have the state of Michigan that is voting and California, California voting to putting on the ballot to do a recall of their governor and Michigan to withdraw and strip their governor of ability to leverage an old emergency powers act was left from World War II Era, so there is some glimmer of light of the the good of the ordinary people being you know asserted to basically say you've gone too far this is overreach and we're not gonna allow to get away with this again but it seems like in many cases such as in where you are in Australia is it is it too late for the people to reassert themselves in the face of ongoing encroachments of their rights
John Adams: Well I mean so I probably wouldn't say that it is too late I mean what I think we are seeing is people are waking up to saying that sometimes something's not right in in terms of Australia I mean what one thing I will say is that in this country we do have a concentrated amount of media ownership and Australians typically get their information from television in particular and so it is easy to control a narrative in this country much more than I say the united states because I think a lot of Americans are more open-minded that they're more able to have interesting discussions out think outside the box and I think Americans are more open to sourcing different types of information from different people experts more so than what Australians are but I think we are seeing people wake up and I think that the desperation the economic desperation as that continues to become more acute I think we are going to see more people stand up against the this totalitarian system. One of the more most concerning things I think and I'm not sure how it works in the united states is that so we do have the ability for governments in Australia to have states of emergency typically states of emergency in the Australian context happen around natural disasters so whether it's a bush fire or whether it's a flood or things like that typically what happens at the state level is that they would declare a state of emergency, certain legal powers are given to bureaucrats so not the politicians but the bureaucrats and the bureaucrats have the ability to do certain things for a certain amount of time in order to overcome the state of emergency so for example if there is a bush fire the there is the people who run the emergency services that can direct resources independent of the politicians because and obviously you know one of the reasons for that is during an emergency you don't want things to become political you want seasoned civil servants to make the right decisions so that we can overcome the emergency and then get everything under control and then let's go back to our system of government, so when you have a flood or a bush fire or a cyclone or a tornado or something like that because they are these are short sharp events states of emergency have a limited shelf life where I think one of the big concerns is the states of emergency in Australia have been underway for 18 months and there is no sense that these states of emergency are going to end and we're going to go back to you know a political environment where it is just a normal business now that's where Hitler and the Reichstag fire comes into being, now some people say it's a false flag some people say it was a genuine fire whatever the case they had the parliament of Germany in Berlin was set ablaze by someone that was used as the pretext for the enabling act so the German constitution a whole host of civil rights trade unions and a whole bunch of other organizations were suspended and political power was given to Hitler and that was never reversed until the end of World War II so where I think it would be helpful for politicians to restore trust among citizens is to reform the state of emergency powers so it's so to say that yes even though in the case of a pandemic we will we have the power to have a state of emergency but there are more limitations about what can happen under that state of emergency and there has to be some shelf life so people have confidence that this is not going to be a permanent feature in terms of what we go for so let me give you example in the state of Queensland they announced last year that we're going to declare a state of emergency and I think they started for a few like I think three months six months then it went for a full year a couple of months ago they passed legislation in the Queensland parliament to extend the state of emergency until April 2022, so they've given themselves another 12 months to say we are in a state of emergency and therefore under this emergency certain powers are given to certain bureaucrats and the government can do certain things that in in normal and in the normal course of events they can't do so again so if the powers in Michigan or the states of merchandising are being stripped from the governor and being taken back by the legislature I think that's a healthy development and I think that will give citizens confidence that that what happened in Germany with Hitler is not going to happen in democracies in 2021
Dunagun Kaiser: Well I think that chapters yet to be written I guess said we've seen glimmers of light in that but it just seems like the overall backdrop is but wait there's more you know there's this new twist and now this is why it's more serious you mentioned earlier about Sweden proposing a alternate model which it was much more open, was much less restrictive on people's freedoms and saying look guys this this the overall outcome the way this played out was better for the society involved that again back to that sort of that head fake of leaders saying we're doing this because we're following the data we're following the science it's like wait a minute then why aren't you why aren't you letting leveraging the natural mechanisms of natural immunity herd immunity letting this go ahead and you know even when you have you mentioned wildfires let's just take that for example forest fires or wildfires one of the biggest tools that's used when you're dealing with those is to provide a fire break where they'll delight backfires to burn to sweep through so that you get you get it over with and then once it's once it's swept through it's out so the idea of a of a pandemic that's been proven that with proper treatment and proper care can be you know 99 point plus whatever percent survivable by most decades of the population you find a way to let that sweep its way through the population and burn itself out and use natural immunity, that's what you would do if you were humble enough to trust that why you know using wisdom in the face of nature could bring a better outcome and still mean restore and protect people's freedoms seeing that is just as important as just their lives but to use that cover story of saying trust us you'll thank us later that we've stripped all your freedoms away from you for an indeterminate period of time and maintain the state of emergency and just today I saw Gregory Mannarino a mutual acquaintance of ours put out the news story again that the Federal Reserve says are going to maintain emergency economic measures for the foreseeable future so here at the same time they're saying hey we're in a recovery hey looks like it looks like we're having just some transient inflation but it looks like the worst is over and the economy is coming back to life the supply chains are going to you know come back to life but no we have to maintain emergency economic measures for the foreseeable future, you as an economist can you comment on that we've talked about medical we've talked about liberty what about the economic emergency measures that are in place not only in the us but globally and whether they are any end in sight for those
John Adams: Well I mean so the emergency economic measures I mean that is that is a cover story so well before the pandemic I mean you and I did multiple interviews talking about an Australian household, Australian debt bubble and a global debt bubble now so even before the pandemic debt was out of control now when the pandemic happened sorry how about I take a step back in 2019 the Repo market blew up in around August, September 2019 and so they were implementing emergency measures in starting in September to keep the financial system together what happened with the pandemic is it accelerated the systemic amount of risk in the system and that's why they had to run out the unprecedented amount of fiscal and monetary stimulus so that they would stop defaults cascading into a meltdown of the financial system so that problem hasn't gone away so when you just think about this mathematically the amount of debt and the amount of debt that has been racked up in the last 12 to 18 months has been just astronomical we're talking I think from memory 20 to 25 trillion dollars of global debt additional during this pandemic phase just on a mathematical basis you cannot normalize monetary policy, you can't normalize fiscal policy and the reason is that if you normalize this stuff what will ultimately happen is the interest costs on the debt will start to rise and people will not be able to generate sufficient cash flow to meet the interest costs that's when you start to get delinquencies and defaults that's when you get you know a systemic risk and you get like a Lehman Brothers 2.0 so and on the economic front we are in a permanent perpetual state of emergency because the debt bubble well they are hell-bent on not allowing this debt bubble to collapse and they can't reverse the decisions that they have done because to reverse those decisions will basically raise systemic risk will lead to more defaults will lead to a potential financial meltdown now and in the Australian context that's why I kept on saying in 2019 in a number of videos particularly Martin North, we can't allow QE to happen because once QE starts it can never it can ever be reversed because again just for the benefit of your audience QE is when the government when the central bank prints money artificially to buy bonds at artificially high prices to lower interest rates so if they ever wanted to normalize policy they would have to sell the bonds back into the primary and secondary market and they're not going to get the prices that they bought them for which means that the price the the price of the bonds fall, the yields go up and that means higher interest costs and so you can do you can normalize to a certain extent or a certain degree but you can never go back to your pre-emergency situation because the debt is just too large and that's ultimately I mean where we're stuck so policymakers are stuck if people go to my website Adamseconomics.com I've written a number of recent articles about about the Australian context and there is a never-ending dead-end sort of course of action that our central bank is on and they keep on saying we're going to normalize in the next few years below, they can't, it's mathematically impossible and where this ultimately ends up again it's either the Harry Dent deflationary systemic collapse where asset prices will fall you know 70%-80% and we have the biggest depression in the history of the world or it's going to be some form of of runaway inflation hyperinflation so that's the ultimate outcome but between now and then the living standards of ordinary middle class people both in your country, my country are going to worsen and that will particularly so it's going to worsen without lockdown when you place lockdown on top of that it's just going to exacerbate financial concerns and financial pressure to the point that people will snap and the question is how will that snap will that snap in terms of social unrest, domestic violence, criminal activity I mean if you look what happened in Europe only last week I mean maybe it's a little bit too extreme to say but it looks like France you know could see a repeat of the French Revolution and people in France are just outraged that Macron said you can't go shopping if you don't if you don't actually take certain medical procedures so but I mean you're seeing right across Europe, Italy, Greece France place elements of London, I mean we are heading towards the same type of revolutionary zeal that was present in the late 18th century that led to the American Revolution and the French Revolution so I mean things are getting very dicey for the current power structure and they can't do anything to reverse course and it's just hard to know where things are going but things are going to get worse and obviously just to go back to where we started this conversation about your original title for your YouTube channel reluctant preppers I mean if you are going to get through this on an individual level whether you're living alone or whether you've got a partner or children you you've got to take preventative measures to give yourself a buffer so that when these acute financial pressures come on cash flow basis you can manage them and you're not going to you're not going to be desperate and unfortunately too many people in Sydney haven't taken preventative measures and they are basically stuck and I think things are going to get worse for them but for people like you and me so far so good and would you see how we travel moving forward
Dunagun Kaiser: John there's so many more important topics here that you've just broken open for us we're going to have to have you back on soon you talked about how they can never normalize rates based on where they are and the cowardice of mainstream media to not press for that admission publicly by financial and economic leaders as well there's so much more and the preparedness steps that individuals can make right now in their own lives to have a buffer of many kinds food, water, medical, supplies, cash, bullion, etc., networking with their neighbors, we'll have to have you back on we've been speaking with John Adams Australian economist and John always appreciate your presence here with us on Reluctant Preppers and finance and liberty we'd love to have you back on again real soon I understand you'll have some big news for us in the near future we'll appreciate you coming back on it help us understand more
John Adams: Thank you Dunagun for having me
Disclaimer:
This article is solely for informational purposes only and it should not be construed as a solicitation or offer to buy or sell on any financial securities/instruments, etc. nor anyone should take the content as an investment advise, any opinion expressed in this article are subject to change without prior notice, eurymanthus.wordpress.com and its author is under no obligation to keep current of the information herein and accepts no liabilities for any gains, losses of any kind arising from any of the material presented on any post/s and/or article/s published.
Trade At Your Own Risks
Archive posts
WordPress.com
No comments:
Post a Comment