About a year ago in a Private Blog post on Ask-Socrates.com Martin Armstrong let it slip that the real plan of The Davos Crowd with the Great Reset was to replace the traditional banking system with the central banks.
I’ve talked about this obliquely in previous posts noting that Modern Monetary Theory (MMT) doesn’t require the money center banks to be the buyers-of-last-resort of whatever debt the U.S. Treasury Dept. auctions up. That’s the most important role they serve in keeping the system afloat.
They provide the fiction that there’s never a failed U.S. Treasury auction even if they immediately turn around and flip those securities right back to the Fed and get dollars. Since the 2008 Great Recession these same banks have sterilized most of that money, further building the Ponzi pyramid, by holding these dollars as ‘excess reserves’ with the Fed who then pays the IOER rate – Interest On Excess Reserves.
Now that this has become a chronic problem, the Fed no longer reports this directly.
For all of the Bernanke and Yellen years that rate was 0.25%. Today it’s just another tool Jerome Powell uses to confuse money markets about the health of the banking system.
Who’s Afraid of MMT?
But, back to Armstrong’s revelation. It sounds a little bit loony tunes, that the banksters would want to get ride of themselves, because so many of us in the ‘alt-finance’ space see them as two heads of the same hydra. And in many ways they are. The banks and the central banks work together to defraud investors and debase their currencies to buy favors and advantages in the market they could never earn in an honest market.
This, not capitalism, is the source of the ever-expanding wealth inequality leftists bang on about all day.
The dollar, euro, yen, pound, etc. are all, in effect backed up not by the full faith and credit of the U.S. government’s ability to pay. That’s the bedtime story they tell us to go to sleep. But really they are backed by the U.S. military’s ability to project power around the world and at home.
The dollar is ultimately a Proof-of-Guns (PoG) currency. The central banks digital currencies (CBDC) that are on the drawing board are the ultimate version of PoG. The problem for them now is that the U.S. military is looking less and less formidable in an increasingly multi-polar world and an arms race it can’t win thanks to debt servicing eating up the productive capital the country generates.
One of the biggest problems in analyzing what’s happening is the tendency to fall back into 2-dimensional thinking, us v. them, black v. white, government v. people. And I fully understand that two-dimensional thinking is a very human trait, especially in a world of folks and a society that is what Ian McGilchrist would call “Left Brain Possessed.”
But the world isn’t two dimensional. We don’t live in screens nor do we assess data across only one dimension. Data is multi-facted as are cabals of people in power. I could go on a rant about the limitations (and misapplication) of the Scientific Method’s variable isolation and it’s deleterious effects on our thinking, but I already did that.
In short, there are also factions within both the Banking Cartel and the Davos Crowd and they compete for control over the policies. There are at least six factions that vie for their piece of the pie. And Klaus Schwab at the World Economic Forum has bribed all of them to sign up for the Great Reset.
They may be in cahoots at times, like to get rid of Donald Trump or today to fight Bitcoin and cryptocurrencies, but they all have different agendas. Those agendas are reassessed in real time by them, just like everyone else does. And as such, two-dimensional thinking fails to capture the nuance of what’s happening.
Now, the banks are going along with the Great Reset trying to remake the world because the world turned against them in 2008-09. This was their bribe so they can survive.
They do this to rebrand themselves within the new MMT regime run by the central banks. But, are they really needed when CBDCs can deposit money directly into people’s accounts with the Fed? Why do we need traditional bank accounts when the old dollars will no longer exist?
A lot of crypto investors are now asking that same question by the way. When you look at what’s happening on Ethereum and other DeFi platforms like Waves you realize very quickly you don’t need a traditional bank account to hold your savings. With the proper on and off ramps can get back into the ‘real world’ pretty easily and be on the up and up with your local tax policies.
The Swiss are now the next guinea pigs in this experiment, with the SNB announcing the cancellation of everything bigger than the 1,000 SWF note. Turn them in by the end of October or they will be worthless.
Astroturf or Greenways?
Men like Jamie Dimon wear two hats. One as the CEO of J.P. Morgan Chase and the other as a shareholder of the Federal Reserve. In this environment where the only things hated more than the politicians and the media is the banks do you really think Dimon is going to die on the hill of JPM?
No, he’ll happily sacrifice JPM when the moment is right to allow the central bank takeover of the economy. The Millennials and Gen-Zers who (through Obama’s OfA and Soros’ support of BLM/Antifa/etc.) the Davos Crowd radicalized into their 21st century Brown Shirts were easy to recruit in the wake of 2008-09 where all of their parents got thrown out of their homes and not one banker went to jail.
The brazen unfairness of it all animates so much of the hatred within Antifa/BLM. And, in so many ways, they aren’t wrong. Occupy Wall St. as Tim Pool pointed out because he was there, was a peaceful protest against racism which were bodily hijacked by Antifa and turned into Occupy Wall St.
It was astroturf from the beginning. But the anger is real. The organization of it is pure strategic planning by people intent on ruling the world and if they can’t then burn it all down.
I see exactly what Armstrong was talking about. The Davos Crowd in Europe is setting up the U.S. banks to be the villains of the next big financial crisis. Obama through Biden is putting in place regulation, tax policy, court decisions, etc. to ensure both maximal anger at the banks and get the maximum effect on the structure of the U.S. economy.
So, once this crisis hits and the banks are caught once again having been irresponsible, they will be blamed like no other villain has been blamed since Hitler. And the Progressives on Capitol Hill — the Lizzie Slapahos and the AOCs — will demand the banks pay for killing the little guy.
This is why we have this April jobs report. 266k vs. 987k expected, but a massive labor shortage.
We have a labor supply shortage because of welfare, huge unemployment payouts, eviction moratoriums, etc. The economy wants to get restarted and Biden/Obama are literally forestalling this in order to ensure the supply chains for food, lumber, gasoline, rolled steel, chips and everything else dries up.
Vandals or Savages?
I don’t believe anything I’ve heard about the Colonial Pipeline ‘hack.’ I don’t believe the ‘hackers’ were real anymore than I believe Bloomberg’s report that Colonial paid $5 million in anonymous cryptocurrency in ransom. The shutting down of the I-40 bridge across the Mississippi River was another massive over-reaction. And what is Gov. Gretchen Whips and Chains doing trying to shut down a pipeline that is the lifeblood of her state’s economy (as well as that of Ontario, Quebec, the fading Rust Belt)?
It’s almost like we are governed by people whose policy is deindustrialization and the destruction of our way of life or something?
Cocking up the labor market along with energy and goods distribution has to be seen as a planned disruption as much as the response to COVID-19 was seized upon to do maximal damage to Trump and divide us politically (…more)
The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of The Duran.