kingworldnews.com
You are about to take a trip down the rabbit hole of a plan by the Deep State for ashes, then the rise of the Phoenix.
The Deep State and The Blob fuel conspiracy theories
November 19 (King World News) – London analyst, Alasdair Macleod: Increasingly,
people are beginning to realise that their world is undergoing a period
of rapid change, with the future of fiat money now uncertain. For most,
it is too difficult to even contemplate. But growing uncertainties are
driving wild speculation about what those in authority now have in store
for the human race in the form of a global reset. It is a time for
conspiracy theorists, aided and abetted by our politicians and central
bankers who are being increasingly evasive, because events are
spiralling out of their control.
Then
there is America’s Deep State, or the British equivalent, the more
recently christened Blob; an amorphous entity comprised of the permanent
bureaucracy with its own agenda. These faceless planners have moved on
from merely making ministers’ lives difficult if they deviate from the
blob’s predetermined course — immortalised in “Yes Minister” and its
sequel series “Yes Prime Minister”.
As
we saw with Brexit, The Blob has been rigging political outcomes, even
conniving in elections. Christopher Steele, an ex-MI6 officer produced a
dodgy dossier on Trump to influence the American presidential election
in 2016. But there is no such thing as an ex-MI6 Agent because of the
Official Secrets Act, so we can only conclude that the intelligence arm
of The Blob sanctioned it on a distanced basis. MI6 works with other
intelligence agencies under the five-eyes agreement and is close to the
CIA. Though they do not necessarily share intelligence, it is impossible
to conceive of Steele’s role in influencing the outcome of a US
presidential election without the CIA’s knowledge. Almost certainly, the
fact that it was commissioned must have been with the CIA’s blessing.
At
the time of writing, we do not know the outcome of the current
presidential election, but enough doubt has been thrown on the validity
of the voting process to implicate unknown parties in managing the
outcome. It can never be proved, but for increasing numbers of sceptics
it looks like a Deep State operation. It is therefore hardly surprising
that conspiracies abound.
The World Economic Forum
The
most prominent of these conspiracies has hit the headlines in recent
weeks. Its ambition is to take the lead in resetting the world by
dismantling the capitalist system in favour of a greater technocratic
rule — a fourth industrial revolution no less, even planting microchips
in humans to read their brains and control them. The leader is one Klaus
Schwab, whose World Economic Forum runs the annual Davos bunfight.
As
leader of the Davos forum, Schwab probably sees himself as the
coordinator of world government. If so, at 82 years old he is probably
getting impatient about the progress towards his personal vision of
ultimate power. The covid chaos and the success of his climate change
agenda must be encouraging him to think he is very close to a
breakthrough. Alternatively, we might consider Schwab as a latter-day
Charles Fourier (1772—1837), the utopian socialist philosopher, whose
forgotten ideals were only marginally more narcissistic and bizarre than
Schwab’s…
While
the great and the not so good love the annual Davos party as a
networking venue for the politics industry, when it comes to
transferring real power to Schwab, it’s a no-no. The only time a
politician transfers power is when he is deposed by his or her
electorate, colleagues, or the military. And history is littered with
utopians, like Schwab, grasping for power over their fellow men. In
addition to Charles Fourier, we can include Georg Hegel (1770—1831) and
Auguste Comte (1798—1857), as well, of course, as Karl Marx. As thinkers
or philosophers, they were all influential in their day and some of
their ideas persist in the naïve.
So,
while increasing numbers of well-informed people are beginning to sense
the end of the current world order, to assume that this will hasten the
WEF’s grab for world domination by influencing events is a mistake. All
our deep states, blobs and their branches, particularly central banks,
will want to hold onto and enhance their executive power with the
political class increasingly cast as cover. The planners at national
level are not going to submit to Mr Schwab’s plans for world domination.
Instead, international relations involve mutual cooperation to secure
purely domestic objectives, something President Trump was in the process
of destroying. From the Deep State’s point of view, perhaps that’s why
he had to be deposed in favour of Biden, who is a long-serving compliant
figure.
Central bank digital currencies (CBDCs)
There
can be little doubt that central banks wish to increase their control
over money and how it is used, cutting out the obstacle of commercial
banks who produce most of the money in circulation through the expansion
of bank credit. From a statist point of view, commercial banking is a
dinosaur, an outdated remnant of free markets, perpetuating needless
systemic risk and superseded by technology. Branch networks will
disappear with cash, changing relationships between banks and the
general public for ever.
By
introducing direct central bank accounts for members of the public and
every business, commercial banks become superfluous and can be allowed
to die. And if one goes bust before commercial banking has ended, the
facility to transfer all its loans and deposits onto a central bank’s
books will then exist. The removal of systemic risk by the abolition of
commercial banks is one of several likely long-term objectives of CBDCs.
Commercial banks can be left with the role of investment banking
activities in capital markets.
We
can imagine the development of CBDCs going even further than just
replacing cash. Stimulation by dropping money into personal accounts can
be used to target increased spending by consumers, or even groups of
consumers, sorted by wealth, location or other factors. Some consumers
can be favoured relative to others, so in a swing state, for example, an
incumbent administration might buy votes. While this would be strongly
denied, as we have seen with unfettered fiat currency the state creeps
incrementally towards unstated objectives, using every tool at its
disposal. The election of Deep State-approved politicians then becomes
possible.
Eventually,
funding of all capital projects will come under the direct control of
the central bank. And savings deposits, always seen to be a brake on
consumption, can be banished. Capital can be made available for
government schemes and favoured businesses on the say so of the central
bank.
A future government statement might be issued on the following lines:
“Your
Government is pleased to announce that the National Audit Office has
approved a number of infrastructure projects targeted at improving
communications between administrative centres. This investment over ten
years will secure an estimated 500,000 jobs. The cost over the life of
the project is XXX billion monetary units. The Central Bank has
confirmed it will make funding for these projects available, both to
your Government and approved private sector contractors.”
This
would be a planners’ heaven. Furthermore, CBDC money can be withheld or
frozen for anyone suspected of crimes and tax evasion, starving them
into confessions of guilt. The justification is always that it is in the
national interest to ensure that financial and tax crimes are
eliminated — something commercial banks have singularly failed to do.
Overseas payments can be routed through other CBDCs, giving the central
banking network control over world trade. Just imagine foreign trade
being conducted through a grander version of the Eurozone’s TARGET2
settlement system!
Worried
yet? In the advanced economies Covid-19 has nearly eliminated cash,
which doubtless is intended to be replaced entirely by CBDCs. The end of
cash and bank deposits will allow the central bank to cap the amount of
cash anyone can hold, and also ensure that everyone is paid a “living
wage”. Already flagged, another intention is to eliminate the burden of
interest rates and by controlling where money supply is expanded, manage
the economy.
It
is commonly assumed that those in charge of us know what they are doing
— they don’t. They have become trapped at a socialist endpoint and are
doubling down in their efforts towards greater socialism. But their
dreams of future control are mere escapism. Individuals will lose yet
more personal freedom, but ultimately the state cannot conquer human
nature and the will of individuals to do what they want. The Soviets
attempted it and failed, despite killing and starving many millions.
Central
to the collapse of any state-directed reset will be the loss of faith
in fiat currencies, and particularly that of the world’s reserve
currency, the US dollar. This remains the case irrespective of whether
circulating currency is in cash, bank deposits, or CBDCs. Indeed, the
collapse could be hastened by CBDCs, because the intention is to
increase the pace of injection of new money into the economy if it is
required (it always is), and to impose deeper negative interest rates,
which cannot be easily achieved under the current monetary system.
If
these statist intentions are allowed to prevail, along with other
agendas such as the elimination of cheap and effective fossil-based
energy, the outlook for humanity is exceedingly grim. Like communism,
the global reset into which the western world is drifting will destroy
society. Those who believe in liberal values in the original sense of
the term — not the modern socialist connotation — will find themselves
welcoming the destruction of the current system before it is evolved any
further.
The course of a currency collapse
The
end of fiat currencies is likely to come sooner than later, from the
consequences of today’s massive money-printing, particularly of dollars.
Already, US government spending is financed substantially more by
currency debasement than taxes, a condition that will almost certainly
continue to deteriorate rapidly in the coming months. Furthermore, the
global banking system, which is extremely thinly capitalised, faces a
tsunami of bad debts which can only lead to a systemic failure — most
likely in the Eurozone initially, but threatening all other
jurisdictions through counterparty risks. It is coming to a head and is
likely to happen soon, possibly triggered by the second covid wave.
Long
before the two or three years required for any CBDC to be operational,
the world’s reserve fiat currency, the US dollar, is already
hyper-inflating. There are signs the markets are beginning to understand
this. Bitcoin’s price has risen sharply, sending signals to everyone
that the differential between its ultimately fixed quantity and the
accelerating rates of fiat currency debasement is feeding dramatically
into the price.
Despite
the economic slump, equity markets are being driven to new highs as
non-financial customers deem stocks to be preferable to bank deposits.
It has not helped that the Fed reduced deposit rates to zero last March,
well below everyone’s time preference. The Fed has also promised
infinite QE in order to fund the fiscal deficit. Therefore, it is not
surprising that individuals and corporations are shifting out of cash
balances into financial and other assets, with the notable exception of
fixed-interest bonds. Rising commodity and raw material prices are also
telling us that dollars are been sold in those markets.
This
is the point being missed in all commentaries: the mounting evidence
that markets, being forward-looking, are beginning to abandon the
dollar. And once it goes beyond a certain point, nothing will reverse a
rapid loss of purchasing power to the point of worthlessness. To avoid
this outcome central banks led by the Fed must immediately abandon
inflationary financing of budget deficits.
That
is not going to happen. In addition to the current hyperinflation must
be added the inflationary cover for the costs and consequences of
rescuing a failing global banking system. The costs are immediate, in
that governments will take on their books everyone’s bad debts. The
consequences are that through their central banks they will have no
political alternative other than to counter the economic slump through
yet more money printing.
US Treasury bond yields are already beginning to rise, perhaps reflecting this developing outcome as Figure 1 shows.
The
up-arrow at the bottom-right of the chart shows that the downward
momentum for the bond yield has reversed, forming a golden cross; that
is to say the yield is above its two commonly followed moving averages
which in turn are forming a cross with the 55-day moving average rising
above the 200-day moving average, a strong indicator of a major turning
point and of higher bond yields to come. The upward turn of bond yields
is to be viewed in the context of the dollar’s trade weighted index,
which is shown in Figure 2.
Currently
standing at 92.40, if the dollar’s TWI breaks below 91.75 (the low on 1
September) it is likely to head significantly lower. With foreign
holdings of dollars and dollar denominated financial securities
totalling almost $27 trillion, the chances are that dumping of the
dollar on the foreign exchanges will increase rapidly. That being the
case, the Fed will not only be funding the unprecedentedly high (for
peacetime) budget deficit but will have to absorb foreign sales of US
Treasuries and dollars in order to keep the cost of government funding
suppressed.
Evidence
is mounting that it cannot be done. And with the end of the suppression
of interest rates comes the collapse of accumulated malinvestments, of
government finances, and of the currency itself.
First the ashes, then, hopefully the phoenix
Elected
in 1929, Hoover was the first US President who thought he could improve
on the capitalist system of markets reforming themselves, and the
results were a disaster. He was thrown out of office and replaced with
another interventionist, Roosevelt, and the supremacy of the US
Government over markets reforming themselves became established. The
situation today is the logical destination of the fallacy that
governments can run the economy.
It
will end with the collapse and replacement of today’s unbacked fiat
currencies — the ashes and then the phoenix. There is every indication
that the time when all is rendered into ashes is rapidly approaching.
People with fiat, earning fiat, relying on fiat will be impoverished. A
currency collapse with no foreign currency to escape into is a
cataclysmic event, the like of which we haven’t seen before, not even in
Roman times. If it doesn’t buy you food and warmth a million bucks is
worthless.
Governments
will also have no means of collecting taxes, other than in their
worthless currencies. They will be unable to pay their administrators,
who cannot even afford to attend their offices. Their pensions and
everybody else’s will be worthless. There will be no incentive for
anyone in government without money. And without money there is no
political power.
There
can only be one solution, and that is a reset with gold. The slide in
currencies can be stopped by making them exchangeable into gold. The
reason for a gold-backed reset is not so much to stop a fiat currency
from further collapse but to use it to ensure the widest distribution of
the national gold reserves through a reformed gold-backed currency. The
US Treasury claims it still has over 8,000 tonnes of gold, which
assuming the Deep State hasn’t raided it, can ensure that a new dollar,
convertible by everyone into gold, can circulate as money.
The
same is true for other currencies, to greater or lesser degrees
depending on their national gold reserves. But to be credible, gold
coins must also circulate freely alongside readily convertible paper and
digital substitutes. The banking system must also be reformed to do
away with bank credit expansion, which creates deposits unbacked by
gold. By then most of them may be in public ownership or protection, so a
reform to abolish bank credit expansion should not be too difficult.
The
mobilisation of central bank gold is the best outcome by far. It
returns the choice of money to the people who use it for the
intermediation between their production and consumption. But very few in
government, their Deep States or The Blobs, have the intellectual
capacity to understand what needs to be done. Their advisors are
inflationists to a man or woman. Furthermore, the US’s Deep State is
obsessed with the threat from China and Russia, which between them
control international bullion markets (London and Comex are just paper),
and have substantial declared and undeclared reserves. Legitimising
gold will transfer enormous monetary and geopolitical power from America
to the Asian hegemons, which is likely to be strongly resisted.
Furthermore,
it will require governments to backtrack on the socialising process,
whereby by providing welfare and regulating everything their budgets got
out of hand. They must aim to reduce the full burden of their
activities on the economy to under 20%.
Following
a currency collapse, any central bank that thinks it can use a CBDC to
manage market outcomes will undermine its own credibility. Other than
issuers of gold-backed notes, they will have no role. in order for the
necessary reforms to stick, flights of fancy such as the statist
ambitions of planners and of the Klaus Schwabs of this world must be
abandoned, along with all the false sciences adopted by statists. But on
the positive side, a collapse of fiat currencies is required to sweep
away the current failing system, and sooner or later that is what we are
going to get.
