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À partir d’avant-hierAnalyses, perspectives

The Western Train Wreck

Par : AHH

For GlobalSouth.co by our Col from New Zealand

Western eCONomists and the train wreck they cheerlead

If eCONomists took the time to read and understand the allegory within Baum’s book “The Wonderful Wizard of Oz”, then IMO they would learn more about fixing the broken Western financial system than from all of the current neo-classical textbook tripe combined.

So too, Ellen Brown’s epic book “The Web Of Debt” explains both the allegory and the connection to the most monumental theft of wealth in the history of our species. It seems that none of shills that the MSM promote have even made the connection.

I studied economics in the early 70’s and have had to spend the next 50 years unlearning what is essentially mythology.

All of the maxims are based on faulty models, including how money is created.

Modern-day neo-classical economics is a self-perpetuating myth – essentially it is nothing more than pseudo-science based on a giant hoax which allows money to be created as debt by the giant Western private banking cartel.

No wonder critical theory specialists, engineers, and even lawyers, can be better at understanding effective economic theory than us poor sods who were fed all this tripe at Uni.

99.9% of economists go along with this monumental con job simply because their jobs depend on them perpetuating these extraordinary myths.

Case in point – some snippets from a recent Washington Post (WaPo) article’s outrageous spin on the print fest:

“Since 2020, the United States has powered through a once-in-a-century pandemic, the highest inflation in 40 years and fallout from two foreign wars. Now, after posting faster annual growth last year than in 2022, the U.S. economy is quashing fears of a new recession while offering lessons for future crisis-fighting.

“The U.S. has really come out of this into a place of strength and is moving forward like covid never happened,” said Claudia Sahm, a former Federal Reserve economist who now runs an eponymous consulting firm. “We earned this; it wasn’t just a fluke.”

Washington’s success in reviving the economy also suggests a new approach to future downturns, one that relies more on the government’s power of the purse and less on the Federal Reserve’s control of the cost of credit.

“The U.S. has seen a particularly strong GDP recovery and inflation has cooled sooner and more quickly than in other large, advanced economies. And the increase in real wages is unique to our country’s recovery,” Treasury Secretary Janet L. Yellen said in a Chicago speech last week.

The Fed helped by cutting borrowing costs for consumers and businesses and by buying trillions of dollars’ worth of government and mortgage-backed securities to goose the economy.”

A Perfect Storm and a Derivative Time Bomb

IMO the likes of shills like WaPo and Janet can yell all they like but that won’t prevent the a perfect storm of events happening this year – this will be the all time biggest wake-up call for humanity.

The giant derivative positions of the US TBTF banks are time bombs – last time I worked out their derivative/equity ratios, Citigroup was a complete disaster with Goldman ‘Sucks’ being in the stratospheres.

All of the other top six were seriously shaky too. Given that derivative parties are the first in line as creditors, and us deplorables the very last, then this factor alone is a train wreck waiting to happen.

The Great Taking

David Webb’s recent revelations in his free PDF book “The Great Taking” makes the situation even more alarming, as essentially around 90% of the assets we think we own in the Western world, WE DON’T!

It turns out that the DTCC (Depository Trust Clearing Corporation) and its nominee company Cede & Company are now owners of a huge percentage of the stocks/securities/bonds etc around the world and that most of us are merely beneficiaries at best, not owners of these paper assets.

The very name that the acronym DTTCC stands for is dodgy enough, but how sinister is the name ‘Cede’? – the definition of this word –
TO SURRENDER POSSESSION!!!

Cede & Co. is now the owner of record of most of our stocks, bonds, digitalised securities, mortgages, and more; and it is seriously under-capitalised – holding capital of only $3.5 billion, clearly not even a drop in the bucket of what would be required to in a systemic meltdown – this massive anomaly is clearly deliberate.

As mentioned above, the fact that the derivative holders have first call on these assets in any crisis, and can just sell them off without any due process whatsoever, even perhaps simply in a situation of perceived risk, all adds another layer of risk to owning/buying paper assets.


Who on earth would be dumb or suicidal enough to bet against gold

Ummm, that’ll be Da Fed, in its increasingly vain efforts to hide the crash in the purchasing power of the US dollar. It is the only major central bank that has continued to bet against gold.

Even after Basel III compliance turned gold into a first-tier asset class, the Fed and the house has persisted with its idiotic synthetic dollar support.

Meanwhile, this facilitates the other global CBs in their gold stacking which they will continue to do, courtesy of the Fed accommodating them with its synthetic market manipulation.

Gold Stacking is Grossly Underestimated

The Rest of the World (RoW’s) gold stacking is relentless and monetary gold transactions do not require reporting because foreign exchange gold is categorised as money, versus commodity data, that is captured through customs records.

Within this trade lies a much higher de-dollarisation process than many of us realise, and the disparity between the overall Western gold holdings* and the estimated 60,000 tons accumulated by the now well-established (2013) Sino/Russian alliance, puts these two parties in control of a real market-driven physical supply price discovery process.

*(let alone the Fed – which due to unbridled rehypothecation could be close to zero or even negative – remember the last proper audit was in 1953)

The RoW can pull the pin whenever they want and the multiple military flash points make this all the more likely.

Also, the PBOC’s access to >20,000 tons of Chinese citizens’ gold, held in the Shanghai Gold Exchange, raises the potential physical supply to more than 80,000 tons.

In the case of the PBOC needing these holdings, it would not be a case of confiscation – the owners would be provided with a generous lease fee for allowing their gold to be used as a patriotic measure.


Now You See – Now You Don’t – Are the U$ Pinning their Hopes on Discovering Alchemy?

Europe’s tiny central bank gold holdings are probably accurate and likely not rehypothecated to any great extent, but the same cannot be said for the US’s claimed 8133 tons of US gold holdings.

It is almost certain that there are multiple ownership claims on each ounce, and this is why global central banks are quietly repatriating physical bullion. The same with silver the paper claims for each physical ounce are at least 90:1. The silver price discovery market is even more broken with the true G:S ratio needing to be more in the realms of 8-16:1.

Texas is very wise building its permanent state depository and recategorising gold as legal tender. They do not trust the centralised system either, and now at least six other states are looking to follow Texas because they simply have zero trust in the management of the US Treasury gold.

If Texas doesn’t trust the system, then why on earth would the RoW?

Foreign Exchange Reserves Quietly Converted into Gold Bars

It turns out that the massive global shadow banking industry, and with gold being auto-categorised as foreign exchange reserve, that this combination has hidden the fact that large swaths of foreign exchange reserves have been converted into physical gold.

This trend dates back to at least 2010 but really ramped up when the US weaponised the dollar in March 2022 with Russia’s SMO in Ukraine.

This makes a ton of sense (literally) for the RoW, as it amounts to de-dollarisation by stealth – converting incumbent US dollar debt into stacks of debt-free bullion.

Furthermore, this sanction proofs potentially trillions of excess reserves – a no-brainer when the entire globe is in such a state of financial and military turmoil.

Estimates are that China has around $6 trillion in excess FX reserves giving a truly staggering gold/GDP ratio compared to Europe with a pitiful 4% average and the US potentially massively negative.

Summary

As long as the U$ perseveres with the 100% private bank cartel-owned Fed model, the economy is guaranteed to crash and burn.

Worse still, commercial banks create ~97% of the money supply in most Western economies, which means that all of these fiat-based currencies are doomed.

US Rep. Wright Patman (Chair of the House Banking Committee) identified the problem back in 1941 and no one listened…

“I have never yet had anyone who could, through the use of logic and reason, justify the Federal Government borrowing the use of its own money. I believe the time will come when people will demand that this be changed.

I believe the time will come in this country when they will actually blame you and me and everyone else connected with the Congress for sitting idly by and permitting such an idiotic system to continue.”

… end quote…


A Broken Model

The current U$ model is so broken in its obsession with monetising debt, that it now takes $1.55 in budget debt deficit to generate $1 of ‘growth’, and $2.50 in new debt to generate $1 of GDP.

The current debt death spiral, which was always an inevitable consequence of a self-destructive financial capitalism reality, is now in full swing.

Until the Fed’s ruinous model is completely dismembered, and money creation is conducted as a public utility, any other attempted reform is tantamount to tinkering with the font on the Titanic’s breakfast menu.

Ellen Brown’s most recent epic book (2019) focused on this subject too – ‘The Public Banking Solution’ – in which she outlines successful models that date back through the centuries. Ellen focuses on solutions rather than just endless commentary on the problems we all face.

Tragically all of this is ignored by 99.9% of economists and financial commentators. It appears that Western economies will have to crash and burn before the critical mass develops an appetite for meaningful and effective financial reform.

My personal interpretation of unfolding global events suggests that the train wreck is due in 2024 – not a lot of time to prepare.

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