The United States economy is on the verge of collapse… Will Biden last until the elections?

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By: Alexander Nazarov

 

Trump, in any case, will either get a house in ruins, a house on fire, or a bomb with a lit fuse.

In the American stock markets, an unprecedented record bubble inflated in the shares of information giants, and never before in history has the stock market rise been so rapid, strong, and sustainable.

At the same time, ordinary Americans have begun to cut back on their consumer spending amid rising debt and dwindling savings, which could lead to an economic recession in the coming months.

At the same time, the US budget deficit reached historic record levels ($828 billion in the period from October 2023 to February 2024), which resulted in the country’s treasury also borrowing at historically high levels, while the Federal Reserve is reducing the number of dollars in circulation (about $70 billion) monthly.

At the same time, only about $800 billion remained in US Treasury accounts.

All of this combined leads to a decline in available capital in the financial system, which could cover the borrowing appetite of the US government and companies and support stock market growth.

The market will run out of money around the time of the US elections, either shortly before, or immediately after.

There is only one way out of this impasse: to resume the printing of uncovered dollars by the Federal Reserve, in unprecedented volumes, because this will most likely happen against the backdrop of a stock market collapse, a chain reaction of bankruptcies and widespread paralysis in the banking system.

At the same time, the Fed is effectively unable to beat inflation, which keeps the interest rate high and thus keeps interest payments and the budget deficit high.

The resumption of quantitative easing (printing unhedged dollars) would once again accelerate inflation and the flight of foreign investors and governments from dollar assets.

All of this puts the Biden administration in front of two options: either start the crisis early and reduce its severity for several months, but that will force his administration to deal with the crisis, or postpone the crisis for several months, which will increase its severity on the United States and Trump, with the latter expected to win, the Democrats’ choice is clear.

In any case, Trump will inherit from Biden either the explosion, or its consequences, and the anger of citizens against the authorities.

He will simply have no choice but to shift full responsibility for the collapse of the economy to his predecessor, with judicial investigations and prison sentences issued against members of the Biden administration.

I believe that the leadership of the Democratic Party is well aware of this possibility, and I don’t rule out attempts to rig the elections by the Biden administration, or an attempt to overthrow Trump immediately after the start of the economic collapse, if that happens after he takes office.

In any case, conditions will arise in the United States of America by the end of the current year 2024 for a civil war to break out, and all that remains is to add a social explosion and crowds of disaffected citizens to the streets, until potential events turn into reality.

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