There is a new scam out there that will destroy a lot of people.

It is the "Buy Now, Pay Later" (BNPL) loan scheme.

I bet you don't know how it REALLY works and who will get left holding the bag (hint: not the poor people taking out the loans).

It works like this:

1. Someone who can't afford to buy something, wants it and is offered a BNPL deal. They can just buy it now and pay it off in "4 easy installments" or whatever.

2. There is no credit check. There is no income verification. Just, "Do you want it? Yes? OK, you got it -- NOW!"

3. It can be for anything: groceries, clothes, furniture, whatever. This is not put on a credit or debit card. It is a separate loan. No collateral, just a signature.

4. It is not reported on any credit bureau, so other lenders do not know how much of this debt that a credit applicant for a regular loan might have.

5. Many of the people who are getting these loans have no ability and/or no intention of ever paying it back. They just want the stuff -- now.

6. The loan is arranged by an affiliate (Affirm is a company that is the big player in this). The affiliate operates the program, so that a bank can lend the money to the customer, with the retailer acting on behalf of the affiliate at the point of sale.

7. Once the purchase is complete, the loan is owned by the bank.

8. The bank immediately sells the loan to the affiliate, and the bank earns a fee. The bank takes no risk. The retailer also takes no risk, but does make a sale they might not have otherwise made.

9. The affiliate (i.e. Affirm) then packages these loans up into collateralized debt, just like they do with Mortgage-Backed Securities. And just like during the years leading up to the mortgage melt-down, ratings agencies are grading these BNPL Collateralized Debt Obligations (CDO's) as "A paper." That is, these CDO's are rated as high-grade quality debt securities, even though the underlying assets are entirely made up of debt that was never underwritten by any standards whatsoever (no credit check, income qualifications, no collateral, etc.).

10. THEN ... these CDO's are sold via Wall Street to pension funds, mutual funds, and through investment broker advisors, who advise John Q. Public to buy these as a good investment because they earn an interest rate income that is slightly more than US Treasury Bills.

Unlike some Mortgage-Backed Securities, these BNPL CDO's have ZERO chance of ever paying off in full, since the debt can be easily ignored and never paid back.

These things WILL crash at some point. Not if, but when.

The middle class retirment system will get slammed with these, as they become more and more "attractive" by offering higher and higher interest income over time.

Excellent interview and discussion on this topic:

https://www.youtube.com/watch?v=ms10ZU9qdd4

BTW, the man on the left doing the interview has a YT channel about all the overbuilding in new construction and all the reasons why the Federal Reserve has created a ticking time bomb that will explode at some point.

It is becoming more and more clear that the central bank has orchestrated this on purpose.

First, they found an excuse to push interest rates way down and keep them there for a few years. People adjusted to this as the "new normal." Real estate prices went sky high because people could afford it with very low interest rates.

Meanwhile, they also pumped $9 trillion of fake printed money into the system, causing the massive inflation we are now seeing.

Then, the Fed found an excuse to push interest rates up very high in a short time, and keep them there. This has caused financial chaos, with the full effects yet to come.

The federal government (Congress/President) have also played a role, especially in the past 3 years, with massive increases in spending and borrowing, with the complete elimination of the debt ceiling, and with much of that spending being pumped into areas of the economy that has caused a temporary illusion of prosperty that is hiding an otherwise economy on the brink of disaster.

My personal opinion is that this is all been done by design, to wipe out the middle class. The scum cabal plans to wipe out the middle class to destroy America, so that one world government can be achieved.

We need to talk more and more about eliminating the idea of a central bank. It is the evil root of all financial manipulation.