Question: Beloved Saint Germain, what will happen to the economy in the near future? According to some journalists, the worst is still to come due to the central banks being unable to mitigate soaring inflation by raising interest rates. It seems that the central banks are stuck between a rock and a hard spot and nobody knows what exactly will happen. Could you please give us some insight of what will most probably happen?
Answer from the Ascended Master Saint Germain through Kim Michaels. This answer was given during the 2022 Webinar – Democracy and Christhood.
Well, in the short-term inflation will continue to go up. This is not just because of the inability of central banks to stop it via interest rates. It is also because after the corona pandemic, there is a pent-up demand that is causing prices to rise according to some supply and demand.
However, much of the inflation you see is actually driven by speculation. Especially commodities and oil prices are driven by speculators who have seen the opportunity to make a huge profit out of the growing demand by creating an artificial shortage. What will happen, most likely in the near future, is that there will come a point where economic growth will start to stagnate and the world will go into a recession, which will then bring prices down again because demand will decrease. In the best-case scenario, this recession will not last too long. But in a worst-case scenario, it could lead to a deflation, where prices go down.
The real underlying issues behind the economy are basically three things:
First of all, there is the exploitation of the economy by the financial elite through financial instruments that do not contribute to the natural economy by providing products or services. They siphon money away from the population, and from the businesses who are providing goods and services. This is one issue that needs to be addressed.
The other issue is the money system itself, the creation of money through debt, which has reached a point where it just is not sustainable anymore. And this is partly a matter of creating a sound money system that is not based on debt. You could say this is the second issue, the creation of a money system that is not debt based.
But the third issue then, is the debt in itself, where people, companies and governments, nations have incurred such huge debt, that it just is not sustainable. Even the interest payments are threatening the economies of many nations, businesses and people. There will come a point where a growing number of people—economists, politicians, journalists, and so forth—will become aware that the world faces a simple choice. Either the economy completely crashes, and the entire financial system crashes because of debt, speculation, and so on. Or the democratic governments fulfill their responsibility to create a truly democratic economy, a free economy with equal opportunity for all that cannot be exploited by the power elite.
Even the power elite will begin to see that they can either choose to nullify some of the debt, or maintain the debt and demand payment of it, where they can cause the economy to crash so they will never get any more payments. There simply needs to come this awareness that the debt has reached such a level where the only way out is to nullify the debt, maybe not all debt, but certainly much of the debt.
You can see in the United States where the national debt has reached truly astronomical levels. And there needs to be some awareness and a movement of people saying: “Where are we borrowing this money? Who is lending it to us? To whom do we owe the money?” And it needs to be this awareness that: “Yes, we owe it to some big national banks, even some multinational banks. But shouldn’t these companies, these corporations, be American corporations? Why have we created this debt-based money system where the government needs to borrow money from private institutions, and the taxpayers are paying interest to these private institutions? Why are we not doing what it says in the Constitution, that only Congress has the power to print money? Why are we not printing money directly, instead of borrowing it from private banks that make a profit? Why are we allowing this kind of money system? Why are we allowing the Federal Reserve to run the economy?”
And other nations can of course, have different institutions, but nevertheless, debt-based money is a problem everywhere. The question is when this awareness will be there, whether it will happen in time to prevent a crash, or whether there will have to be another crash as severe as 2008 or 1929 in order for people to realize that you cannot have a democratic nation that has an anti-democratic financial system.
Copyright © 2022 Kim Michaels