Pseudopandemic
Page 57
The jobs they "created" weren't the relatively well paid, unionised blue collar trades of the former productive economy. These were overwhelmingly low paid, zero hour contracts in the service industries. Employment rights in these jobs were ostensibly non existent.
A 2021 report from the Institute for Public Policy Research [17] (IPPR) described the perpetual rise of "in work" poverty:
"Rising housing costs for those on low incomes has been the key factor driving higher rates of working poverty in recent years.. This in turn is contributing to widening inequality, as there is a growing ‘locked out’ group formed disproportionately of working families with children being pushed into poverty.. The national focus on higher per capita GDP growth.. delivered little for working families over the past two decades."
The economies of western aligned democracies, driven by nothing but debt monetisation and with a monetary system serving no one but a tiny handful of selected stakeholders, were mortally wounded in 2008 and placed upon on QE life support. The slightest infection would finish them off. The entirely predictable financial pandemic came in September 2019 with the collapse of the US repo market [18].
Repurchase agreements are short term loans [19], typically overnight, where dealers offer State franchise bonds to investors with an agreement to repurchase them at a higher price the next day. This marginal difference is the repo rate.
The repo market enables bond sellers to raise short term capital. Investors can quickly monetise debt and, as the market mainly consists of State franchise securities, they are considered a safe investment. In theory, those who hold a large quantity of bonds (assets) use can use the repo market to raise finance at short notice. It is a vital component of the interbank lending system.
Investors use the repo market to turn a quick profit which they often then reinvest in longer term bond yields. The repo rate is generally around 2% but on September 17th 2019 the US market ground to a halt forcing those holding Treasuries to raise the rate to 10% in one day [20].
Despite this far more attractive rate investors still didn't use the repo market. Years of QE had left banks awash with excess base money reserves. Generally considered the most liquid of all monetary forms, they should have jumped at the chance to use them to make a quick killing with repurchase agreements. Yet they didn't.
Debt monetisation means that the only determinant for making money is your ability purchase debt. The more capital you have the more you can make. The centralisation of wealth, and the authority it affords, is the inevitable consequence.
When the repo market crashed just four banking giants [JPMorgan Chase & Co., Bank of America, Wells Fargo, and Citibank (Citigroup Inc.)] held 25% of Fed reserves and 50% of US Treasuries between them. Their liquid assets were heavily skewed towards Treasuries. In their 2019 4th Quarterly Report [21] the BIS explained why this was a serious problem:
"Repo markets redistribute liquidity between financial institutions: not only banks, but also insurance companies, asset managers, money market funds and other institutional investors. In so doing, they help other financial markets to function smoothly. Thus, any sustained disruption in this market.. could quickly ripple through the financial system. The freezing-up of repo markets in late 2008 was one of the most damaging aspects of the Great Financial Crisis.. The four largest US banks specifically turned into key players: their net lending position.. increased quickly, reaching about $300 billion at end-June 2019.. At the same time, the next largest 25 banks reduced their demand for repo funding.. swings in reserves are likely to have reduced the cash buffers of the big four banks and their willingness to lend into the repo market."
The BIS recognised that QE had provided so much liquidity to US commercial banks that they had less need to use the repo market. At the same time the biggest financial institutions were holding so many Treasuries that they were at risk of becoming their own customers. Far from being stable investments US Treasuries were looking distinctly shaky. This provided further disincentive to prospective repo market investors.
In addition, with so many reserves, fluctuation in the base rate made the biggest banks' cash flows unstable. The BIS noted that, for these too big to fail banks, "their ability to supply funding at short notice in repo markets was diminished." They added that this was "an underlying structural factor that could have amplified the repo rate reaction."
The BIS then claimed that the Fed had "calmed markets" by sprinkling fairy dust onto the collapsing system, monetising more debt through purchasing Treasuries off the banking giants clogging up the system. The Trusted News Cartel remained all but silent as the Fed pumped $6 trillion [22] into Wall Street traders to keep the patient alive just a little longer. The interbank lending system was seizing up again, the last gasps first witnessed in 2007 had returned and the IMFS was very close to extinction.
People have been told by their State franchises that the job retention schemes and small business subsidies were a response to the unavoidable economic turmoil created by a global pandemic. Not only was the global pandemic fake and the State franchise response a planned fiscal policy, the economic and monetary plan was formed months before anyone had ever been told about SARS-CoV-2. It had already begun, long before the first case of COVID 19 had even been reported.
It started in response to the repo market debacle. This set the trajectory for the construction of the new international monetary and financial system built upon carbon trading. This new sustainable and inclusive IMFS would enable the GPPP to seize the global commons and establish global governance. All they needed to do was convince us to go along with it.
The time was ripe for a Great Reset. Having prepared for this moment for a decade the core conspirators and their informed influencers were ready to administer the coup de grâce to the old IMFS and usher in the new. All they needed now was the trigger event: the pseudopandemic.
Sources:
[1] - https://web.archive.org/web/20200923025242/https://www.ifs.org.uk/publications/13302
[2] - https://archive.is/KZG44
[3] - https://archive.is/TXBV1
[4] - https://archive.is/YrelH
[5] - https://archive.is/2AGBa
[6] - https://archive.is/YR5FP
[7] - https://archive.is/ijcRN
[8] - https://web.archive.org/web/20200530015926/https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2012/the-boes-special-liquidity-scheme.pdf?la=en&hash=ED468AFFDF95429265E5ABFBE479F00339008DEF
[9] - https://archive.is/tIBvn
[10] - https://archive.is/yiGW2
[11] - https://archive.is/sFF5w
[12] - https://web.archive.org/web/20210527115428/https://tradingeconomics.com/united-states/money-supply-m2
[13] - https://web.archive.org/web/20210531200007/https://tradingeconomics.com/united-states/velocity-of-m2-ratio-q-sa-fed-data.html
[14] - https://web.archive.org/web/20210415051916/https://tradingeconomics.com/united-kingdom/households-debt-to-gdp
[15] - https://web.archive.org/web/20210601082835/https://tradingeconomics.com/united-kingdom/housing-index
[16] - https://archive.is/ppHzy
[17] - https://web.archive.org/web/20210526114559/https://www.ippr.org/files/2021-05/no-longer-managing-may21.pdf
[18] - https://archive.is/HDU4k
[19] - https://archive.is/2scNx
[20] - https://archive.is/PDraW
[21] - https://web.archive.org/web/20191209100451/https://www.bis.org/publ/qtrpdf/r_qt1912.pdf
[22] - https://archive.is/WfhGN
Chapter 28 - We Can Reset The World
Professor Mariana Mazzucato's website [1] describes her as "one of the world's most influential economists... on a mission to save capitalism from itself." This isn't just self promotional bluster, there is some justification for her claim.
A professor at University College London (UCL), she is the founder and director of the Institute for Innovation and Public Purpose (IIPP) policy think tank. She's is a member of the Scotti
sh State franchise' Council of Economic Advisers and South Africa's Economic Advisory Council. In 2019, she joined the U.N Committee for Development Policy [2].
She is a frequent invitee to the WEF Davos meetings and a staunch advocate for stakeholder capitalism [3]. She is a Bilderberger [4] and the IIPP think tank she founded and leads is a partner with [5] the Organisation for Economic Co-operation and Development (OECD), the European Union and, via the MOIN network, the Rockefeller Foundation among others.
The IIPP are also partners with George Soros' Open Society Foundation [6] (OSF). They are collaborating to develop a global executive leadership programme which will push "systemic and sustained change to to drive new economic thinking." Their aim is to create a "fundamentally different type of economy" based upon investment in "good work," delivering an economy that is "environmentally sustainable and governed via stakeholder value."
In September 2020 Mazzucato wrote an article for the World Business Council for Sustainable Development (WBCSD) called Avoiding Climate Lockdown [7]. There is absolutely no reason why the world should ever face a climate lockdown but she suggested they could be unavoidable unless the world creates a new international monetary and financial system (IMFS).
Just like the pseudopandemic lockdowns, the future climate lockdowns will be deliberate policy decisions designed to further modify our behaviour and achieve GPPP objectives. Now that the spectre of unnecessary lockdown chaos and destruction exists, Mazzucato suggests that the only way to avoid more needless turmoil is to implement the wish list of those threatening to instigate one. According to "one of the world's most influential economists:"
"The climate crisis is also a public-health crisis.. Addressing this.. crisis requires reorienting corporate governance, finance, policy, and energy systems toward a green economic transformation.. Building an inclusive, sustainable economy depends on productive cooperation among the public and private sectors and civil society.. Government assistance to business must be less about subsidies, guarantees, and bailouts, and more about building partnerships."
This is stakeholder capitalism. It is the formalisation of a global system of governance where elected governments are stakeholders in a network of partnerships. In this global public private partnership those with the power to create money, the parasite class, rule. There is no democratic oversight in this new world order. Mazzucato's expert advice is exactly what the GPPP and the parasite class want to hear. If it wasn't she wouldn't be influential.
The WBCSD she was writing for is an organisation of 200 CEO's from some of the world's largest global corporations. It is the hub for more than 60 national and regional business councils and partner organisations including the United Nations, the EU Commission, the World Economic Forum, the World Bank, The World Health Organisation, The World Wildlife Fund, the Bill and Melinda Gates Foundation, the Ford Foundation and BlackRock.
In 2010 the WBCSD published their Vision 2050 document [8]. Aiming to transform the global economy to meet Sustainable Development Goals (SDGs), they said that a pathway would be needed. It would "require fundamental changes in governance structures, economic frameworks, business and human behavior." They envisaged two distinct periods of transformation.
They called the decade between 2010 to 2020 the Turbulent Teens. This would be the time to construct the mechanisms that would enable the fundamental changes to be established. Transformation Time would start in 2020, once the fundamental changes had been able to "mature into more consistent knowledge, behavior and solutions."
In their conclusion the WBCSD suggested how the process of moving from the Turbulent Teens into the Transformation Time could occur:
"Crisis. Opportunity. It is a business cliché, but there is truth in it."
While for many of us 2020 was a disaster, the WBCSD were among the GPPP members for whom the pseudopandemic could not have arrived at a more opportune moment. It was a remarkable coincidence that the right crisis opportunity arrived precisely on schedule. In 2020 they updated their new Vision 2050 [9]. Stating that the time to transform had arrived, they said:
"Despite its enormous human and financial cost, the COVID-19 pandemic has created an opportunity to drive and accelerate change at a completely different pace than we may have previously imagined to be possible."
As Klaus Schwab stated, at no point were the GPPP concerned about COVID 19 disease, the least significant pandemic in the last 2000 years. Yet they knew that a huge financial bail out package, unlike anything we have ever seen, would be needed long before anyone had even supposedly heard of SARS-CoV-2. In August 2019, one month before the repo market collapsed, the GPPP had already decided to initiate what they called "going direct."
The US economic policy response to the pseudopandemic came in the form of the Coronavirus Aid, Relief, and Economic Security (CARES) Act [10]. This created the fairy dust to pay people not to work (furlough) while the old IMFS was finished off and the biosecurity controls put in place. Every GPPP State franchise involved deployed something similar.
The outline of the CARES Act was agreed at the G7 Central Bankers symposium [11] in Jackson Hole, Wyoming four months before the first cases of COVID 19 were reported. The largest investment management firm in the world, BlackRock, presented their report Dealing With The Next Downturn [12] to the gathered central bankers. BlackRock stated:
"Unprecedented policies will be needed to respond to the next economic downturn. Monetary policy is almost exhausted as global interest rates plunge towards zero or below. Fiscal policy on its own will struggle to provide major stimulus in a timely fashion given high debt levels and the typical lags with implementation."
BlackRock admitted that the existing IMFS was a busted flush:
"Conventional and unconventional monetary policy works primarily through the stimulative impact of lower short-term and long-term interest rates. This channel is almost tapped out."
Fiscal policy (State franchise spending and taxation) wouldn't be able to respond to a "downturn" because government debt was off the charts and you can't raise taxes from people who are broke. Similarly monetary policy was tapped out because interbank lending, and subsequent bond markets, were close to implosion. As the tax exempt foundations of the parasite class rendered their vast wealth untouchable, BlackRock proposed a better solution.
They recommended that an investment management firm, BlackRock for instance, should be put in charge monetising more debt on behalf of the State franchises. This could be done by bypassing all risk analysis and monetising any junk assets they could lay their hands on to fund State franchise policy directly. In doing so they were suggesting that State franchise fiscal policy should be controlled by central bank monetary policy. This was a proposal to formalise central bank control of government policy.
BlackRock said that this "unusual condition" would only be called for in extremely "unusual circumstances". While the "unusual condition" would require a "permanent set-up" it would only be used temporarily. Once fiscal policy objectives were achieved, which under their plan would also be monetary policy objectives, the temporary permanent set-up could then move on to the "exit strategy" placed on the "policy horizon." Whatever that could conceivably be.
We now know what the policy horizon looks like. It is the successful transition to a net zero, carbon neutral global economy. The central bankers will decide when these sustainable goals have been achieved and, until then, they are "going direct" and are firmly in charge of everything.
The "unusual circumstances" arose just a few weeks later when the repo market collapsed. Things got even more unusual when the WHO declared a global pandemic a few months later. With their "going direct" plan already functioning, the Fed were among the Central Banks, including Germany's Riksbank, who contracted BlackRock to assist them to monetise more debt. In the Fed's case this allowed BlackRock to go directly to selling its own ETF securities to the central bank, heaping more debt upon the tax payers.
BlackRock explained how this syste
m has reponded to the pseudopandemic [13]:
"The future evolution and global spread of the coronavirus outbreak is highly uncertain.. containment and social distancing are ultimately achieved by reducing economic activity.. That requires a decisive, pre-emptive and coordinated policy response.. A comprehensive global response should have the following elements:.. Generous sick-pay support and short-time work schemes to stabilize incomes and to limit job losses.. expanding funding-for-lending facilities.. Monetary policy should focus on preventing an unwarranted tightening in financial conditions and ensure the functioning of financial markets."
The pseudopandemic financial response was pre-emptive, coordinated and planned in August 2019. According to BlackRock, the subsequent lockdowns and social distancing were achieved by reducing economic activity. Another way of putting this is that the purpose of lockdowns was to reduce economic activity.
BlackRock presented the G7 with the solution they would use in response to the pseudopandemic seven months before the WHO declaration. The lockdown policies caused the subsequent collapse of economies and global trade. This deepened the financial crisis that began with the repo failure. The GPPP State franchises then increased the scale of going direct.
Yet more fairy dusts provided generous sick-pay support and short-time work schemes were used to stabilize incomes and limit job losses. There was no scientific rationale or public health benefit for lockdowns. They were designed to create a comprehensive global response to expand funding-for-lending in order to protect and ensure the functioning of financial markets. The pseudopandemic was a global heist.
The first Central Bank to go beyond going direct and take the next step to directly fund government spending was the BoE [14]. Through their Ways and Means facility they gave the State franchise unlimited freedom to run up as much debt as they liked without even going to the gilts (bond) market.
This economic insanity is only insane if you assume the GPPP have some further need of the current IMFS. Once you understand that they don't, it all makes sense.