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☐ ☆ ✇ Global South

eCONomics Part IV: Interest Rates Manipulation

Par : AHH — 12 mars 2024 à 13:49

In this part: Interest rates manipulation as a way of tackling inflation — one of the most shocking financial scams of all time; plus an update on de-dollarisation and No Plan B for Uncle $laughter

With thanks to our own Colin Maxwell of New Zealand.

Please see: Part 1 ; Part 2Part 3

The duck shooter’s clubhouse on Jekyll Island, Georgia, United States of America

Introduction

It should be of no shock to any of us by now as to the reason WW1 began a very short time after the U$ Fed was incorporated, and this set the tragic pattern for the next 111 years. This tiny group of bankster plutocrats were handed on a plate by Congress a giant counterfeit printing press – a privilege that these thieves would deploy to progressively impoverish the working classes of most of the planet.

I won’t go into this too deeply here as I covered the background of the Frankenstein-like creature from Jekyll Island in the link below – my April 2022 expose’, and the debilitating effect this dreadful bankster construct has had on the global financial scene ever since:

Midnight Train to Georgia

It remains my life’s mission to expose the fact that the Western central banking industry, and its plutocratic owners operating in the shadows, are the head of the human food chain and the underwriters of more than 90% of humanity’s wars, terrorism, and financial impoverishment.

The great news though is that humanity is being thrown a lifeline by the BRICS+/BRI blocs and their related initiatives. Indeed all we have to do is to summon up the presence of mind to recognise this new reality and to reach out and grab the opportunity with both hands. The background of this new global paradigm was explored in Part III of this sequel –

Banking 2.0

The solution will be multi-faceted as it will involve a new global paradigm – never again will a single national currency have dominance – the new system will include a novel trade-only settlement instrument which will be stable, hard backed, and yet still able to provide adequate liquidity for the participating members’ productive economies.

In reality, WW1 never ended – WW2 was a follow-on with a brief respite of barely one generation in between, paving the way for the future hybrid financial, and techno, forever-wars. These, including the COVID debacle and the great poisoning with chemicals and pharmaceutical toxins, are simply a continuation of the same families pulling the strings from the shadows.

This is the business of human butchery and their intentions are becoming more explicit and outrageous as each decade passes by. In every sense of the word, this plutocratic network is a blatant terrorist organisation and needs to be dealt with accordingly. The rules of engagement should be the same and history reminds us that the only sure-fire way to deal with organisations like this is to permanently cut off their funding.

Because the New York Fed is the most outrageous model ever devised and has become the number one money spigot of the globe, this is precisely the place to start. This has never been more urgent as it is painfully obvious that there is a push for another bank run crisis which the owners of the banking cartel think will give them the crisis excuse to usher in a new retail central bank digital currency (CBDC) system where every man and his dog can have an account within the “Federal Reserve” system. This is their grand plan, which if successful would give the commercial banking cartel total control of every aspect of our lives through a social credit control and tracking system of all retail account holders.

Prof Richard A. Werner of the University of Winchester

1. Professor Richard Werner

“empirical evidence is that interest rates are a lagging indicator and a farcically ineffective monetary tool”

paraphrased/quoted from… https://soranomics.com/#content_20_fancybox-8

As Werner points out, it is not interest rates, but bank credit that determines economic growth, simply because ~97% of the money supply in our Western fiat currencies is created out of thin air by privately owned commercial banks.

There is zero basis for the official narrative that higher interest rates lead to lower growth and that low interest rates lead to high growth.

As with most aspects of eCONomics the quickest way to get straight to the truth is to simply assume the 180˚ polar opposite of the official narratives. Interest rates are simply not useful as a monetary policy tool – PERIOD! (23:30)

Interest rates actually follow growth – so where on earth did this idea come from that interest rates are this key variable? – it is not based on empirical evidence but on the concept of equilibrium which is based on no less than 8 assumptions none of which hold up in the real world…

  1. Perfect information
  2. Complete markets
  3. Perfect competition
  4. Instantaneous price adjustment
  5. Zero transaction costs
  6. No time restraints
  7. Profit maximisation of rational agents
  8. Nobody is influenced in any way by the actions of others

(29:00) The methodology in Economics is the Deductive Method – reverse engineering AKA Charlatanism.


2. eCONomics

eCONomics — the pioneer pseudo-science that paved the way for other disciplines to follow as a tool of central planning and globalist agendas

Karl Popper

Karl Popper called this the ‘immunising stratagem’ which scientists fancied could guard their theories from being challenged by the use of reverse engineering in what became known as the ‘deductive approach.’  This is my interpretation of the process…

  1. Predetermine a conclusion that supports the banking cartels’ grand theft from Mainstreet
  2. Invent a model that can give you that contrived conclusion
  3. Identify the false maxims that can propagate the lie and present them as facts
  4. Present these steps in the reverse order
  5. The network that has the key to the giant printing press then buys up all of the networks and agencies required to manufacture the narrative, even when it is nothing more than a bunch of myths premised on deliberate lies

3. How high would hikes need to go to arrest inflation?

High enough that they cripple the real economy before there is any ‘measurable effect’ (sic) on what they labelled ‘inflation’

Poet Lawrence Ferlinghetti asked… “whether man must burn down his house to roast his pig…”

The current Western neo-classical monetary policy used to tackle inflation is precisely that scenario.

Worse still, history illustrates that interest rate hikes have to be so utterly brutal that they need to be at the very least at the level of the true inflation rate, or higher – Paul Volker did this in the 1980s when the rates were pushed above 20%. This was construed as successful from the point of view that it appeared to halt inflation when all it had done was destroy enough of the economy and liquidity to make sure ‘inflation’ was halted.

Ronny Raygun with Paul Volcker – confirmed in 1979 by the Senate as Fed Chair

In 1979 the federal funds rate had averaged 11.2% and Volker took them to a peak of 20% in March 1980. The prime rate topped out at 21.5% in 1981, which heralded (surprise, surprise, NOT) a rise in unemployment to over 10% and the 1980-1982 depression.

“Volcker’s Federal Reserve board elicited the strongest political attacks and most widespread protests in the history of the Federal Reserve (unlike any protests experienced since 1922), due to the effects of high-interest rates on the construction, farming, and industrial sectors, culminating in indebted farmers driving their tractors into Washington, D.C. and blockading the Eccles Building.
US monetary policy eased in 1982, helping lead to a resumption of economic growth.”… Wiki quote.

Although I am a great admirer of Ron Paul – IMO the quote below reveals that even he was not aware of the utter falsehood of attempting to use rate hikes as a constructive monetary tool to address inflation.

“Being in Congress in the late 1970s and early 1980s and serving on the House Banking Committee, I met and got to question several Federal Reserve chairmen: Arthur Burns, G. William Miller, and Paul Volcker. Of the three, I had the most interaction with Volcker. He was more personable and smarter than the others, including the more recent board chairmen Alan Greenspan and Ben Bernanke.”

Volcker may well have been smartest, but in my opinion all three wreaked havoc on Mainstreet and massively rewarded the financial economy at the expense of families, SMEs, and the productive economy. As Volcker aged, he became more critical of the banking industry but that was long after he had spent his career indulging and implementing most of the destructive hoaxes of neo-classical eCONomics.

Other features of Volcker’s career…

  • A prominent member of the Trilateral Commission which was founded by David Rockefeller, Zbigniew Brzezinski, and Jimmy Carter
  • A long association with the Rockefeller family including in his position at Chase Bank
  • A long-standing member of the Bilderberg Group

SUMMARY:  interest rate hikes are not an effective monetary tool to address inflation – on the contrary, they instantly feed inflation just as hikes in energy prices do – you do not even require the most basic economic nouse to understand this principle – it should be self-evident to anyone with an IQ even approaching room temperature.


4. Safe Havens in times of financial strife – where are they now?

In the 1980s the level of total debt was so much less than it is now that the entire financial meltdown was at a totally different level. Today just the Govt debt alone is a death spiral in itself, with an extra $1 trillion added every 100 days.

In 2024 the U$ will have to issue $10 Trillion in Treasury paper to finance more deficits and to roll over old paper at much higher interest rates. The revised cost of this debt will rise from ~$1 Trillion to $1.5 Trillion. This is a debt spiral where more and more money has to be borrowed just to pay the interest back – paying down debt is not even on the radar.

All of the big 5 Western fiat currencies have this problem including the three sometimes referred to as ‘default currencies’ – the dollar, the Yen, and the Swiss Franc – these used to be seen as safe havens to hide when the financial/geopolitical shite hit the fan. Now none of these are safe any longer, and so the pressure will really come onto these currencies as there are now viable alternatives that countries can use in their accelerating de-dollarisation strategies – these include…

  • Gold stacking by central banks — this is at an all-time historical high at around 1000 tons per annum for the last few years – this is a no-brainer, especially now that Gold is a first-tier asset under the new Basel III regulations – this facilitates the process, out of plain sight.
  • Silver – although not monetized like gold under the new international banking regulations, at a 90:1 valuation compared to gold at a historical average ratio of ~16:1 this has to render silver the most undervalued commodity on the planet – silver makes for a fascinating story given that it is both a monetary and industrial commodity and the fact that 85% is mined as a by-product of other PMs. Silver is the absolute wildcard when the big reveal of the Western fiat currencies commences – at 16:1 with gold at $2,500 oz that would put silver at $156, with gold at $3,000 – silver would be at $187, gold at $5,000 – $312, and at $10,000 – $624! Another way of looking at it is that silver has basically been demonetised since 1873, and if it reverted back to its primary historical value as a monetary metal, then it would be around 1/10 of the value of gold per oz, which with gold at $2000 per oz, that would price silver at $200. IOW two entirely different methods render a similar result.
  • Any and all commodities that are needed in the future
  • Crypto-currencies — if you trust them enough – although arguably some are more trustworthy than certain national currencies – they also carry the added bonus of being another way of disenfranchising the private banking cartel


To me the Western safe havens no longer exist, as the main Western fiat currency economies now face a very unpleasant binary choice between either…

A. Severe hyper-inflationary depression, or
B. Severe and extended debt liquidating depression


5. A tribute to Pepe Escobar’s recent work in Russia

What a privilege for us all to have such direct access to Pepe’s insights. I regard him as the undisputed global high priest in terms of geopolitical analysis and journalism. I am most certainly not alone in this view, judging by the audiences he pulls in terms of readers and interviews with people of note in this fight for multi-polarity and who are involved in developing the architecture of a new paradigm in global socio-economic methods and relations.

His audience with Glazyev, whom I have enormous respect for as an honest and courageous economist, was particularly intriguing, and not the least because some of the revelations were done off the record. My own personal hypothesis is that the entire development of the new trade instrument is making great progress, but that there is no point in rushing the announcement of the final details, as long as there is still ample opportunity for BRICS+ countries to gold stack… see above chapter (4) first bullet point.

Of course, this opportunity is entirely courtesy of the U$ obsession with massively shorting gold in this pathetic attempt to hide the plummeting purchasing power of their currency. It could be any day now when an entity insists on a large physical tonnage and the physically driven price discovery process begins. When that happens the gold price will break out and it will be time for the various player’s hands to finally be revealed.

In the meantime, the RoW carries on carefully checking out further de-dollarisation strategies and putting the finishing touches on the new trade instrument. As I said previously, the BRICS+ bloc has an enormously strong hand, whilst all the West has is the grim reality of an impending debt spiral.

Glazyev sees the next stage as detaching commodity prices from the dollar and quoting them in other units. This involves the new model based on two different baskets – a basket of currencies of member countries, and also a basket of exchange commodities. The fact that this currency will be so inherently stable will make it more attractive than the dollar, the pound or the euro.

Technically the trade currency instrument is almost ready, and the process only requires the political will and acceptance by India and China. In the meantime, the transition to settlements in national currencies is well underway.

The trade instrument will be backed not only by the national currencies but by the huge reserves of the nominated commodities that combine to back up the new international settlement currency. This new currency is not a substitute for national currencies.

Once all of the technical issues are finalised, they will prepare an international treaty that will be open to accession by all other countries wanting to join. Glazyev is clearly in no hurry and has put a time frame of within 2 years from when he made these announcements back in late October 2023.

Gazyev listed these advantages…

  • Guarantees are created against attempts by outsider countries to interfere in mutual member relations
  • Each member country’s trade and position in the financial world is much more secure
  • Gives all members an opportunity for equal trade, economic, and investment opportunities
  • The distribution of commission income will be regulated by an international treaty
  • All of this will be transparent to make certain that no country abuses the issue of the trade currency


5. SUMMARY – The long and the short – literally!

None of this reality is being addressed by Uncle Slaughter and clearly, they have no plan B. A giveaway is the fact that actual military spending for 2022 ended up at a mind-boggling $1.537 Trillion – more than twice the publicly acknowledged level. If nominal GDP is around that $20 trillion then that military budget is a truly obscene 7% of GDP, and equal to more than the next 40 biggest spenders combined.

In fact, the next 40 countries spending totalled $1.431 trillion – some $100 billion short of the U$’s $1.537T and with Romania coming in at #39 in the list at $5.2 billion, it could well be the equivalent of the combined 60 or more highest military spenders.

I eventually got sick of adding and gave it up – besides, I was in dire need of a wee dram.

Colin Maxwell
( March 12, 2024)

☐ ☆ ✇ Vu du Droit

Don de Bernard Arnault : merci not’ maît’, vous êtes trop bon

Par : Régis de Castelnau — 8 septembre 2023 à 08:59
Nous devrions être fiers. Nous français, nous avons l’homme le plus riche du monde en la personne de Bernard Arnault. C’est ce que nous racontent les gazettes qui pensent amuser le bon peuple en relayant avec gourmandise les classements de… Continue Reading
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