This post follows up on my previous post, Geo-Financial Alert, in which I referenced David Wilcock’s alert that something big – politically and financially – must be underway.
If we listen to the mainstream news, we hear that the economy is percolating along in grand fashion (in spite of it being to Obama’s credit, not Trumps). But the Central banks know this economy can’t last. They didn’t think it would last this long. They thought the crash would have already occurred and thought they would have Hillary in office by now, picking up the pieces and setting up their socialist state. But now when the crisis does come, Trump will blame the central banks and the deep state.
The world is about to see the perfect financial storm. The FISA warrant to spy on then-candidate Trump will be un-redacted and the extensive apparatus that drove it will be exposed in a court setting. During this same time, the economy will fall apart. In spite of manipulated official data, cracks are appearing in real estate, retailing, corporate buybacks, and interbank lending. The housing market that has been pumped up by easy money from the Central banks low interest rates is beginning to fail as those rates rise. The new business start-ups and business expansions are running into the same rising wall. When the fed raises rates again in September, both residential and commercial real estate will lead all U.S. markets down.
Banks around the world have been unable to raise interest rates to a level from where they can use lowering of rates as the cure for the next downturn. So they have been experimenting with new QE tools. They be planning a test in Chicago – where a task force is investigating a universal basic income program. They hope that putting free cash directly in the hands of consumers will buy some time, or turn the people’s angst away from the bankers when they see the economy failing them yet again. They also hope to make the U.S. more socialist.
A website, The Global Macro Monitor (GMM), points out that the type of financial stimulus used in past years have inflated asset prices only while leaving the people’s economy behind. This doesn’t put food on the table, and people in the real economy are struggling. GMM notes that this has elicited a new “populism” which of course is a big part of what got Trump elected. It is in the face of this growing public awareness, says, GMM, that the banks will create what it calls “the people’s QE”. The bankers sense that if this time they were to attempt another round of financialization – just benefiting themselves and their cronies – as they always have in the past, the pitchforks would be out.
Because the wealth disparity is so vast, as it has become in the past seven years, the efficacy of asset inflating or, what we call “jack asset” monetary policy diminishes, and more and more Fed stimulus is needed; as are higher, and higher asset prices.
That is why we believe that during the next recession, the Fed will be forced to roll out some sort of “people’s QE.” That is, the direct financing of consumption, possibly in the form of financing a universal basic income, the direct bailout of public pensions, and the funding a massive jobs facility, for example … executed through the direct purchase of Treasury securities earmarked for such programs. …
A “people’s QE” will supposedly ensure the new liquidity is injected directly into the hands of those who will spend it, generating the demand to lift the economy out of its morass. (Consequences of Jack Asset Monetary Policy, 9/12/2018)
Such a policy could be very popular among the people in the short term. But it is the candy handed out by the child trafficker, and this people’s QE will lead the U.S. polity right off the cliff. It will take some years, but a failed economy and a totalitarian coup will result.
Meanwhile, in spite of official statistics, the economy is declining quickly. At the same time, the extent and import of corruption that led to spying on the president and a multi-million dollar witch hunt is about to be exposed as the traitorous breach of justice that it is. When these things lead to crisis there will be a run on supplies and credit will freeze up. The market will fall, unemployment will rise with stores closing and businesses failing. Banks will be unable or unwilling to lend; and some will close. The U.S. will move to a new currency.
The dollar is a debt instrument. It is an I.O.U. of the Federal Reserve; and it is a debt that can not be paid. The central bank needs to be dismantled and when this is inevitably faced this will cause a shock of techtonic proportions. When the new currency is issued, citizens will most likely get pennies on the dollar when converting to it. That is because the intrinsic worth of the present currency is far less than it now trades for. The only way this could be otherwise is if some form of “people’s QE” could be implemented in conjunction with the currrency exchange. Gold and cyrptocurrencies will go up.
Below, Dr. Jim Willie, of The Hat Trick newsletter, on August 8, 2018 offers an excellent analysis of this, calling it the world financial “reset”.
He said the process has already kicked off, with liquidity problems at Deutschbank, the Italian banks, in Turkey, and with all the EU banks that have been lending to them. There are currency crises in Venezuela, Turkey, Iran, Saudi Arabia, Mexico, and all emerging market nations such as India, the Dominican Republic, and Brazil, with South Africa coming soon. At some point, Italy will drop the EU and re-institute their lira – but even this won’t help since Club Med countries such as Italy depend on fraud instead of enterprise.
He shares that John Williams’ Shadow Stats calculates consumer inflation running at over 9% over the last three months, unlike the 3% rate our official statistics show. That means we don’t have economic growth but rather the economy is shrinking. Over the last 20 years it has seen a 22% decline – but this has been papered over by financial tricks.
All the while, the central banks around the world have been coordinating to prevent a banking system breakdown. Black Monday in 1987 was a response to our high tech industry being shipped overseas and the economy subsequently shrinking. Greenspan responded by creating derivatives.
According to a friend of Dr Willie at J.P. Morgan, the Exchange Stabilizataion fund of the U.S. Federal Reserve (the Fed) now uses derivative management in the trillions: but he can’t talk about it. There are multiple trillions of such unsterilized debt impounded by derivative instruments that may release into the system at any time.
Money velocity and investor interest in U.S. bonds is very low, but the U.S. has been covering this up by buying its own debt. The BLICS – Belgium, Luxemborg, Ireland, Cayman Islands, and Switzerland – use the Belgian central bank clearing office, funded by the U.S. to effectively double treasury purchases at the auctions. This helps keep rates low.
As for derivatives, Dr. Willie explains that interest rate swap derivatives need a near 0% yield environment to feed on and their process creates a false 10 year bond demand. Investors effectively borrow short term and go long long term at 30 times leverage (bond carry trade). Willie estimates that the U.S. has been covering over 70% of its debt needs by various covert means, and use derivative instruments to insure the remaining 30% to sweeten the deal for their real customers without having to raise rates.
But now, as interest rates have been rising the carry trade is being unwound, pushing the 2 yr and 10 yr rates together. He says that the existence of this derivatives based carry trade makes raising interest rates suicidal. It will bring the system down, leading to a Police State.
So the game is ending. TD Originals, in Central Banks Have Gone Rogue, Putting Us All at Risk, 9/13/2018, adds that something like 40 central banks now buy and hold stocks (not the U.S. Fed), with the Swiss leading the way. But they note that the U.S. Federal Reserve is now taking away the punch bowl with by selling (or not buying) assets so as to sop up QE dollars from the economy and by raising of rates. Central Banks Have Gone Rogue puts the problem this way:
To investors, propping up the stock market may seem like a good thing, but what happens when the central banks decide to sell? The Fed’s massive $4-trillion economic support is now being taken away, and other central banks are expected to follow. Their U.S. and global holdings are so large that their withdrawal from the market could trigger another global recession. That means when and how the economy will collapse is now in the hands of central bankers.
So to update Dr. Willie’s statement, the central banks around the world are no longer coordinating to support the banking system but are coordinating to manage the banking system breakdown. They have been propping it up for decades, propelling it into hyperspace and are now attempting re-entry. They are pretty sure it will burn up, and they need contingency plans.
Dr. Willie says that Rockefeller has a mission to destroy the U.S., economically, financially, and socially. He doesn’t mean Rockefeller alone, but Rockefeller running point in America for the big banking families. The situation is made all the more unstable because this new world order cabal has not gone unnoticed and a powerful alliance of opposition groups has established itself. This opposition is the alliance that organized support for Donal Trump and that through his presidency is working to drain the swamp.
An incident occurred in 1995 in which seven generals on a flight over Alabama were shot down by the Bush group (the cabal). The generals were organizing impeachment evidence against Clinton for selling military weapons to the Chinese. This was a story the cabal did not want released, and were covering it up through the Monica Lewinsky scandal.
The surviving generals created the America First movement and began to meet annually in Idaho. America First generals swelled in their ranks from then right through the Obama administration, until they put Trump up for election.
Meanwhile, Trump has been enmeshed in the corruption in NYC since at least the 1980s, which would include some elements in the FBI and CIA, some organized crime, some politicians and some political fixers. He has had and still has backing from the Russian/Ukranian/Jewish mob.
Dr. Willie also believes the bankers will look to gold as a solution and a gold standard in some form will come out of this. He speculates that Turkey may go to a gold-backed currency. He anticipates big steps for gold standard integration implementation – think disruptive.
It looks as though the new world order (NWO) is in a fight for its life; being attacked by a Trump-spotlighted “white knights” populist alliance that is international in scope. As a student of the biblical end-times prophecies as well as of the fiat money system, I have long expected a systemic failure of the banking system with a subsequent reset. I have also come to believe that the Antichrist will not be a leader of the NWO but will be a “man of the people” who takes the controls of the anti-NWO faction once it succeeds in becoming the new status quo.
This has been a long time coming; it may not even take place this year; and may take multiple years to complete the transition. But it looks so much like we have arrived.
Check out Minds! The new Facebook