On April 8, the US Treasury is scheduled to auction off 10-year and 30-year Treasury bonds. “Right now, the Federal Reserve is printing trillions and Congress plans to hand out $1 trillion directly to consumers to spend,” explains Israeli economist and financial journalist Rafi Farber. “At the same time, production has completely stopped. Hyperinflation is at the doorstep on the other side of this coronavirus panic.”
But something else big is happening on that same day. April 8 happens to also be the first night of the Jewish ‘Holiday of Freedom’ – Passover.
Connecting the two major events, Farber makes a daunting prediction saying: “On April 8, Pesach (Passover) Seder Night, there won’t be anyone willing to lend to the US government and buy these bonds, not anywhere near current interest rates. Seder (Passover meal) Night this year, the world will realize that the Death of the First Born of the United States of America – the US Dollar itself – is actually possible.”
Additionally, just as the Jewish people commemorate their freedom from slavery, Farber explains that the “US uses the dollar to enslave the rest of the world.” It does this by printing paper in exchange for real products from other countries, accumulating massive debts at home that can never be repaid and trade deficits that can never be balanced.
Noting that Passover may be the beginning of the end for the dollar, Farber says “I believe that on Seder night, the day of those Treausury auctions, the world may come to the realization that it is at least theoretically possible for the dollar to completely die.”
The financial author, who predicted the Black Monday Stock Market crash of 2015, has another ominous forecast on the first day of the Jewish holiday saying: “We will all wake up to a new world. A world that has lost faith in the dollar and interest rates will start to rise precipitously.”
The reason, as Farber explains, is paradoxically that the world is scrambling for dollars right now, for cash, not for promises by the US government to pay cash in the future. “There will be no buyers. Not at these extremely low rates. How is the US going to convince anyone to loan it dollars when foreigners need every dollar they can get right now? This will cause interest rates to spike on April 8 and 9 and people will realize that the federal government may indeed go completely bankrupt. They cannot afford high rates on $24 trillion in debt,” he said.
“Ultimately,” he continued, “this could be akin to a sort of Plague of the Firstborn for governments across the world while we sit inside our houses discussing Yetzias Mitzrayim (exodus from Egypt). We will wake up and people will realize that America can, in principle, go completely bankrupt. I expect a run on bond markets to accelerate at that point, and currencies to fall hard versus real assets like gold and silver and other commodities. Russia, though, should be OK.”
Regarding Russia’s immunity, Farber explains that “Their currency, the ruble, is backed by gold and they have almost no public debt.”
According to the Bible, during the very first Passover in Egypt the Israelites were prohibited by God from going outside at all as a plague was afflicting everyone around them. “This year is going to feel a lot like the original Passover. May we all stay healthy,” said Farber.
Source: Israel in the News