Will the London-Wall Street Financial System Survive to the November U.S. Elections?

Aug. 3—Behind Global NATO’s drive for war and chaos almost everywhere, is the realization that the monetarist global financial system, dominated by the City of London and its Wall Street satrap, is headed for total collapse. Bets are, among the more sanguine of the players in what are called the financial markets, that the crack-up could come before the November Presidential election. Were that to happen the Democrats would be treated to a landslide defeat.

With the latest fake job creation figures (they are actually much worse than represented, as they conceal the number of jobs some people need to work to earn a decent income) and rising fake unemployment figures (there are large numbers of partially employed people that are counted as employed and they have lost all track of people who have dropped out of the "counted" economy or have stopping looking for work), the Federal Reserve is expected to lower rates next month, in an effort to kick the can down the road and delay the collapse. Sources report that the delayed taking such action this week, even though they knew that bad numbers would were on the way, so that they might, with the delay, to have a better chance of pushing the collapse beyond the election. But saner analysts see all this as a fool's errand, since it cannot prevent a collapse, that could quickly halve or even more the price of stocks and other financial paper.

"We are talking about some kind of a adjustment." said a Wall Street linked source today. "This is likely the big one—the blowout that most people knew was coming, but which few people want to face."​

Sources say that this realization may embolden the Global NATO crowd in this country to take another shot at eliminating former President Donald Trump, the GOP candidate, and go for plunging the country into civil war type conditions.

There are a number of factors driving this analysis of a coming financial crack-up. First, by conservative calculations, the debt overhang in this system: the valuation of all financial paper and aggregates, including such spurious garbage as the actually-worthless bets called derivatives, is somewhere around $2.4 quadrillion (that’s quadrillion with a “q”)! There is no way this debt can be collected or paid in any way, when measured against the actual physical output of the global economy—even if you could somehow enlist the most viable of all economies, China, in this project.

Perhaps it is easier to think about this in physical, rather than silly numerical terms. Let’s represent the total size of the physical output of the world’s economies as a golf ball. If we were now to come up with a physical representation of the size the debt and other financial instruments that the physical output must support, the most appropriate one would be the planet Jupiter! The relationship is incommensurable; there is no way it could be made to work.

What those who run the system have done is not to take measures to prevent the inevitable crack-up. Rather, they have acted to delay that inevitable breakup through various financial tricks, such as the Fed manipulating interest rates, and by issuing new debt to pay on existing debt, and where possible, looting various countries, in a cannibal-like primitive accumulation of their assets—a looting on a scale that would make Nazi commandants of concentration camps envious. In addition, they have encouraged the creation of speculative bubbles in real estate and elsewhere, to generate additional purely financial values to give the appearance that "wealth" is being created. 

But these games have run their course, as the golf ball/planet Jupiter shows far more accurately and convincingly that any faked economic numbers from "reliable" government or market sources. And there are certain indicators that doom is just around the corner.

For example, the U.S. covers for its national bankruptcy by issuing debt in the form of Treasury Bills and Notes. This money is then deployed to cover shortfalls in revenue collection and to pay for such things as the war in the Ukraine and the military buildup to arm Global NATO for its various wars; most of it, however, goes to cover interest and principle payments on existing debt. For an extended period of time, the largest buyers of U.S. debt were China and Japan. But both nations have stopped buying. In the case of China, whose economy and banks have come under attack from the U.S. government, they are not only not buying the debt, but they are also dumping their U.S. holdings. Back in 2012, China held $1.3 trillion of U.S. Treasuries. Twelve years later, in 2024, those Chinese holdings have dropped by 40%, so that they now hold only $768 billion, and are dumping further. During this same time, U.S. debt issuance has increased.

So who is buying U.S. debt?

For a while, the big money center banks, like Citibank, Bank of America and so forth, were being forced to eat that debt. But that choked-off capital was needed to cover other problems developing within the banking sector. Those banks can’t eat Treasuries, especially at the rate they were being issued, so the Fed took them on in their portfolio of U.S> debt holdings, which has massively increased. In that way the Fed was treating the U.S. government as it treats an insolvent bank that it might bailout by taking its worthless paper. 

Now, more and more Treasuries are being offloaded to other banking centers in Global NATO’s financial empire, especially in Europe—in particular, the City of London and its related ancillary banking centers: The Cayman Islands, Switzerland, Luxembourg, and so on. Their holdings in the same period (2012 to 2024) rose from $725 billion to $2.4 trillion today.

But this can’t go on forever. The United States now finds itself in a position where it must follow the diktats of Global NATO, and especially the City of London, or suffer bankruptcy.

At the same time, there has developed a huge crisis in the commercial real estate (CRE) sector, that affects the banking systems, insurance companies, and various pension systems and trusts that have all taken on CRE paper when it seemed that this was an easy way to make monetary profits. As the crisis in the commercial real estate market deepens, the threat of some major banks going down is emerging. For a time, it appeared that this crisis would affect only the regional banking system, which was bloated with non-performing commercial real estate loans, and which has already seen some notable collapses and bailouts and forced mergers. Banks had lent into what they perceived to be a booming market, only to witness the “stay-at-home” period during the COVID pandemic continuing after it. This, sources report, meant that the need for large office and retail was called into question.

"Some have refused to see the handwriting on the wall," said a source. "People are now working more from their homes and are shopping more online. As an employer, why would you want to continue paying for high rent commercial office and retail space, when you can reduce your costs by keeping your employees working from their homes? And, if you can get just about everything online and have Amazon deliver it to your front door the very next day, why would you waste your time shopping at big box stores or boutiques in malls?"

The smaller towns and cities were affected first, and the regional banks took the hits. But, did anyone really believe that the bloated commercial real estate portfolios of the mega-banks would not be far behind with even bigger hits, since they held the mortgages on the skyscrapers and similar, now dinosaur, office towers.

In an article titled “The Coming Commercial Real Estate Crisis of U.S. Banks,” the editors of GnS Economics Newsletter argue on Substack that the biggest banks are facing the biggest threat of failure due to CRE loans blowing up. The analysis by Mate Suto and Tuomas Malinin is simple: Smaller banks have by far the largest relative exposure to CRE loans; but when it comes to non-performing CRE loans which are non-farm-based and are based on rent—not business income—as the means of servicing the loan, the non-performing or defaulted loans suddenly become 4.5% of all loans, and are held, almost entirely, by the largest Wall Street and regional banks. And these loans—typically for large office buildings—are by far the largest mortgage and other loans in the CRE sector.

“The situation is expected to soon reveal its impact. Banks facing increasing problems will raise their provisions, negatively affecting their profitability and, more importantly, the credit market. [Wells Fargo has just announced a surprising, large increase in its loan-loss provision.] Bank failures are almost certain to follow, as warned by the Chairman of the Fed, Jerome Powell. Buckle up!”

Some are making comparisonsof this election year to 2008, when the residential real estate market blew out, leading to the election of Democrat Barack Obama as President. Sources say that Donald Trump’s people may not have a clue about what to do about this crisis, but they are fully prepared to blame it all on “Sleepy Joe” Biden and that nasty bitch sidekick, Kamala Harris, who is his anointed replacement. “The Democrats will have a hard time getting out from under even a crisis with one major bank,” said a source. “But if several major banks take hits, and it panics the markets, well, then the fat lady has sung for the Democrats.”

But there is a larger issue here.

The looming financial blowout of the monetarist system comes as much of the world is seeking to get out from under its collapse and its current looting policies. While the City of London and Wall Street head for a deep crisis, a new alternative system is coming into being, centered in the BRICS nations, with China in the lead.

“Some idiots decided China was our enemy,” said the source. "Competitor, yes. Enemy, no. What kind of enemy agrees to eat what some might consider your worthless debt? So, we kick them in the teeth and threaten them. And they stopped buying our debt. They want to provide capital for investment here. They want to partner with Americans, such as with the State of West Virginia, and we throw sand in all that. And now they say, ‘Hey, we don’t need your stinkin’ dollars,’ and proceed to create, in embryo, a new monetary system, based on the principles we used to follow about promoting human progress through investments in infrastructure, and technology-driven capital investment, with a new trading currency, other than the dollar.

“Maybe, just maybe, we need to walk all this back,” said the source, “and take a different path. The one we should have taken more than a decade ago and what might have happened if bankrupt Wall Street and Global NATO had not gotten in the way, and screwed everything up.

“It’s time to put Wall Street and its system through a bankruptcy reorganization and get our priorities straight," the source concluded. "That’s the alternative now to war and a collapse that will otherwise soon be upon us.”