Tag Archives: central banks

Another Housing Crisis in America Is Coming

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By Tim Kirby

Source: Covert Geopolitics

There is now an unprecedented spike in housing costs while COVID-19 has driven down the wealth of the average American.

Let’s begin our discussion of the next Housing Crisis with a relevant personal anecdote, that is a microcosm of what is happening all over the United States right now.

Some of my relatives made the wise decision to live within their means and build a smaller (by American standards) house in the early 2000s. They live in the Midwest which means there is generally plenty of space for a big house even within city limits. Mortgages and loans were super easy to get for even fantastically large sums of money at that time. So my kin were definitely in the minority in terms of choosing something smaller and affordable rather than a giant debt pit with a huge kitchen. In a region of America known for having a shockingly low average income of $20,000-$30,000 per year in the 2020s, the banks two decades ago were just throwing $300,000 worth of credit for McMansions to all-comers with seemingly little discretion.

When the 2008 Financial Crisis hit it was the McMansions that got seized first and foremost, whereas my relatives got through it relatively unscathed. It looks like across America some 10,000,000 homes were lost (or perhaps it would be better to say “transferred” to the banks) due to this crisis. Again, because of choosing to have low square footage my family members did just fine with their more reasonable payments, however something recently happened that should sound some alarm bells that a second crisis is nigh.

Image: It costs over a quarter of a million dollars to live in a relatively small stick-frame house in the absolutely most dangerous neighborhood in a city with no significant employment opportunities. Something is not right here.

My relatives were given an offer from a neighbor to buy their home at its value (the last time it was appraised before the Covid Pandemic) plus more than $100,000 on top of that. The explanation was that the offering party wanted to have their son or daughter move closer to them and they were willing to pay big bucks for any house on that particular street. My family members thought they had won the lottery. They ecstatically looked for smaller homes to buy, so they could sell theirs, pay off their current mortgage early and keep a hefty percentage of this seemingly massive overpayment living the rest of their lives debt free.

But to their surprise, besides double-wide trailers they couldn’t find anything to buy. Now even the price of a home, smaller than their already modest home, in the impoverished Rust Belt, now sells for the prices that the McMansions demanded before the 2008 Crisis. To be clear, a house at Pre-Covid value + $100,000 in that region, now cannot even buy a sanitary home that is one half its size.

Again, for foreign readers, the house in question is not a piece of real estate in Silicon Valley or Manhattan where insane sounding prices could be justified by elite salaries and the presence of successful entrepreneurs. No, this is in the part of America where making $15 an hour to sling pizzas is considered a “good” job, but this price hike is not isolated to my state of birth, this madness is happening across all of America, just take a look at the graph below.

It does not take an elite degree in economics to see that there is now an unprecedented spike in housing costs while at the same time, paradoxically, COVID-19 has driven down the wealth of the average American. It is true that building materials have become artificially expensive and that would reflect on housing prices, but in a nation that has so many homes, including abandoned ones, it is hard to believe that America is in a desperate shortage of housing, furiously building to catch up like the Soviets after WWII, who had all their villages bombed into the dirt by the Germans.

Panic is driving housing prices up in a few different ways. Americans are flipping out because of the supposed…

  • Lack of building materials, which means there must be a housing “shortage” because construction is mostly off the table, so they must buy now or be left outdoors.
  • Prices, that are just going to keep going up so they must buy now before the affordability train leaves the station forever.
  • “Historically low mortgage rates”, which are probably the most dangerous aspect of this situation that will turn it into the next economic fiasco.

One of the key reasons that the 2008 Financial Crisis happened was because of the low interest rates on mortgages and inflated values of homes in connection with a lack of regulation over the financial world as a whole – and these exact same things are happening again right now in front of our faces. Just look at these interest rates.

It is not hyperbolic to say that they are “historically low”, because they are. The only difference is that in the past people were suckered into a McMansion while making $20,000 a year, now they will be suckered into a tiny house, trailer or grungy hellhole for the same price, that they will probably end up losing anyways when the crisis hits. Ranch-style homes in Texas far from major cities are starting to reach the $600,000-$700,000 mark which is simply unsustainable unless there are vastly more cattle and oil tycoons down there than we are aware of.

It simply does not require a genius financial mind or the word “Harvard” on your resume to see where this is going. We are again heading towards a housing crisis, only this time the bar is lower as the average American is getting less house and is paying more for it. Of course, the banks will “win” because whenever homes are lost they do not vanish out of existence, but get transferred to them the real lords of the realm so this won’t be bad for everyone, just almost everyone. The normies are doomed.

In a political context this repeating madness seems only to underline my belief that the arguments for small government are correct, but the problem is when government is both small and weak. This situation would not happen if those we elect were completely in charge of how America works systemically as a reflection of the will of the masses. The power that banks have may at times be overexaggerated by the conspiratorial types, but as we can see the nation is again being pushed down the wrong path and no one can stop it, meaning the benefactors of the coming crisis, the bankers, must have vastly more influence and power over Washington than anyone else, who would not benefit from this housing catastrophe.

THE SAME SHADY PEOPLE OWN BIG PHARMA AND THE MEDIA

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By Dr. Mercola

Source: Waking Times

What does The New York Times and a majority of other legacy media have in common with Big Pharma? Answer: They’re largely owned by BlackRock and the Vanguard Group, the two largest asset management firms in the world. Moreover, it turns out these two companies form a secret monopoly that own just about everything else you can think of too. As reported in the featured video:1,2

“The stock of the world’s largest corporations are owned by the same institutional investors. They all own each other. This means that ‘competing’ brands, like Coke and Pepsi aren’t really competitors, at all, since their stock is owned by exactly the same investment companies, investment funds, insurance companies, banks and in some cases, governments.

The smaller investors are owned by larger investors. Those are owned by even bigger investors. The visible top of this pyramid shows only two companies whose names we have often seen …They are Vanguard and BlackRock.

The power of these two companies is beyond your imagination. Not only do they own a large part of the stocks of nearly all big companies but also the stocks of the investors in those companies. This gives them a complete monopoly.

A Bloomberg report states that both these companies in the year 2028, together will have investments in the amount of 20 trillion dollars. That means that they will own almost everything.’”

Who Are the Vanguard?

The word “vanguard” means “the foremost position in an army or fleet advancing into battle,” and/or “the leading position in a trend or movement.” Both are fitting descriptions of this global behemoth, owned by globalists pushing for a Great Reset, the core of which is the transfer of wealth and ownership from the hands of the many into the hands of the very few.

Interestingly, Vanguard is the largest shareholder of BlackRock, as of March 2021.3,4 Vanguard itself, on the other hand, has a “unique” corporate structure that makes its ownership more difficult to discern. It’s owned by its various funds, which in turn are owned by the shareholders. Aside from these shareholders, it has no outside investors and is not publicly traded.5 As reported in the featured video:6,7

“The elite who own Vanguard apparently do not like being in the spotlight but of course they cannot hide from who is willing to dig. Reports from Oxfam and Bloomberg say that 1% of the world, together owns more money than the other 99%. Even worse, Oxfam says that 82% of all earned money in 2017 went to this 1%.

In other words, these two investment companies, Vanguard and BlackRock hold a monopoly in all industries in the world and they, in turn are owned by the richest families in the world, some of whom are royalty and who have been very rich since before the Industrial Revolution.”

While it would take time to sift through all of Vanguard’s funds to identify individual shareholders, and therefore owners of Vanguard, a quick look-see suggests Rothschild Investment Corp.8 and the Edmond De Rothschild Holding are two such stakeholders.9 Keep the name Rothschild in your mind as you read on, as it will feature again later.

The video above also identifies the Italian Orsini family, the American Bush family, the British Royal family, the du Pont family, the Morgans, Vanderbilts and Rockefellers, as Vanguard owners.

BlackRock/Vanguard Own Big Pharma

According to Simply Wall Street, in February 2020, BlackRock and Vanguard were the two largest shareholders of GlaxoSmithKline, at 7% and 3.5% of shares respectively.10 At Pfizer, the ownership is reversed, with Vanguard being the top investor and BlackRock the second-largest stockholder.11

Keep in mind that stock ownership ratios can change at any time, since companies buy and sell on a regular basis, so don’t get hung up on percentages. The bottom line is that BlackRock and Vanguard, individually and combined, own enough shares at any given time that we can say they easily control both Big Pharma and the centralized legacy media — and then some.

Why does this matter? It matters because drug companies are driving COVID-19 responses — all of which, so far, have endangered rather than optimized public health — and mainstream media have been willing accomplices in spreading their propaganda, a false official narrative that has, and still is, leading the public astray and fosters fear based on lies.

To have any chance of righting this situation, we must understand who the central players are, where the harmful dictates are coming from, and why these false narratives are being created in the first place.

As noted in Global Justice Now’s December 2020 report12 “The Horrible History of Big Pharma,” we simply cannot allow drug companies — “which have a long track record of prioritizing corporate profit over people’s health” — to continue to dictate COVID-19 responses.

In it, they review the shameful history of the top seven drug companies in the world that are now developing and manufacturing drugs and gene-based “vaccines” against COVID-19, while mainstream media have helped suppress information about readily available older drugs that have been shown to have a high degree of efficacy against the infection.

BlackRock/Vanguard Own the Media

When it comes to The New York Times, as of May 2021, BlackRock is the second-largest stockholder at 7.43% of total shares, just after The Vanguard Group, which owns the largest portion (8.11%).13,14

In addition to The New York Times, Vanguard and BlackRock are also the top two owners of Time Warner, Comcast, Disney and News Corp, four of the six media companies that control more than 90% of the U.S. media landscape.15,16

Needless to say, if you have control of this many news outlets, you can control entire nations by way of carefully orchestrated and organized centralized propaganda disguised as journalism.

If your head is spinning already, you’re not alone. It’s difficult to describe circular and tightly interwoven relationships in a linear fashion. The world of corporate ownership is labyrinthine, where everyone seems to own everyone, to some degree.

However, the key take-home message is that two companies stand out head and neck above all others, and that’s BlackRock and Vanguard. Together, they form a hidden monopoly on global asset holdings, and through their influence over our centralized media, they have the power to manipulate and control a great deal of the world’s economy and events, and how the world views it all.

Considering BlackRock in 2018 announced that it has “social expectations” from the companies it invests in,17 its potential role as a central hub in the Great Reset and the “build back better” plan cannot be overlooked.

Add to this information showing it “undermines competition through owning shares in competing companies” and “blurs boundaries between private capital and government affairs by working closely with regulators,” and one would be hard-pressed to not see how BlackRock/Vanguard and their globalist owners might be able to facilitate the Great Reset and the so-called “green” revolution, both of which are part of the same wealth-theft scheme.

BlackRock and Vanguard Own the World

That assertion will become even clearer once you realize that this duo’s influence is not limited to Big Pharma and the media. Importantly, BlackRock also works closely with central banks around the world, including the U.S. Federal Reserve, which is a private entity, not a federal one.18,19 It lends money to the central bank, acts as an adviser to it, and develops the central bank’s software.20In all, BlackRock and Vanguard have ownership in some 1,600 American firms, which in 2015 had combined revenues of $9.1 trillion. When you add in the third-largest global owner, State Street, their combined ownership encompasses nearly 90% of all S&P 500 firms.

BlackRock/Vanguard also own shares of long list of other companies, including Microsoft, Apple, Amazon, Facebook and Alphabet Inc.21 As illustrated in the graphic of BlackRock and Vanguard’s ownership network below,22 featured in the 2017 article “These Three Firms Own Corporate America” in The Conversation, it would be near-impossible to list them all.

In all, BlackRock and Vanguard have ownership in some 1,600 American firms, which in 2015 had combined revenues of $9.1 trillion. When you add in the third-largest global owner, State Street, their combined ownership encompasses nearly 90% of all S&P 500 firms.23

A Global Monopoly Few Know Anything About

To tease out the overarching influence of BlackRock and Vanguard in the global marketplace, be sure to watch the 45-minute-long video featured at the top of this article. It provides a wide-view summary of the hidden monopoly network of Vanguard- and BlackRock-owned corporations, and their role in the Great Reset. A second much shorter video (above) offers an additional review of this information.

How can we tie BlackRock/Vanguard — and the globalist families that own them — to the Great Reset? Barring a public confession, we have to look at the relationships between these behemoth globalist-owned corporations and consider the influence they can wield through those relationships. As noted by Lew Rockwell:24

“When Lynn Forester de Rothschild wants the United States to be a one-party country (like China) and doesn’t want voter ID laws passed in the U.S., so that more election fraud can be perpetrated to achieve that end, what does she do?

She holds a conference call with the world’s top 100 CEOs and tells them to publicly decry as ‘Jim Crow’ Georgia’s passing of an anti-corruption law and she orders her dutiful CEOs to boycott the State of Georgia, like we saw with Coca-Cola and Major League Baseball and even Hollywood star, Will Smith.

In this conference call, we see shades of the Great Reset, Agenda 2030, the New World Order. The UN wants to make sure, as does [World Economic Forum founder and executive chairman Klaus] Schwab that in 2030, poverty, hunger, pollution and disease no longer plague the Earth.

To achieve this, the UN wants taxes from Western countries to be split by the mega corporations of the elite to create a brand-new society. For this project, the UN says we need a world government — namely the UN, itself.”

As I’ve reviewed in many previous articles, it seems quite clear that the COVID-19 pandemic was orchestrated to bring about this New World Order — the Great Reset — and the 45-minute video featured at top of article does a good job of explaining how this was done. And at the heart of it all, the “heart” toward which all global wealth streams flow, we find BlackRock and Vanguard.

What’s Changed and What Hasn’t in a Tumultuous Year

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By Charles Hugh Smith

Source: Of Two Minds

Inequality is America’s Monster Id, and we’re continuing to fuel its future rampage daily.

What’s changed and what hasn’t in the past year? What hasn’t changed is easy:

1. Wealth / income inequality is still increasing. (see chart #1 below)

2. Wages / labor’s share of the economy is still plummeting as financial speculation’s share has soared. (see chart #2 below)

What’s changed is also obvious:

1. Money velocity has cratered. (see chart #3 below)

2. Federal borrowing / spending has skyrocketed, pushing federal debt to unprecedented levels. (see chart #4 below)

3. Speculation has reached the society-wide mania level. This is evidenced by record margin debt levels, record levels of financial assets compared to GDP and many other indicators. (see chart #5 below)

Interestingly, every one of historian Peter Turchin’s 3-point Political Stress Index is now checked. Recall that these are core drivers of consequential social disorder, the kind that leads to empires collapsing, the overthrow of ruling elites, social revolutions, etc.

1. Stagnating real wages (i.e. adjusted for real-world inflation): check

2. Overproduction of parasitic elites: double-triple check

3. Deterioration of central state finances: check

But what about social changes? This is an interesting topic because social changes are less easily tracked (few even ask relevant questions and compile the data). Social trends are often more difficult to discern, as surveys may not track actual changes in behavior: people may give answers they reckon are expected or acceptable.

Here are four long-term trends that may have been accelerated by the pandemic:

1. The residents of overcrowded tourist destinations are sick of tourists and are demanding limits that protect increasingly fragile environments and resident quality of life.

Here’s a typical observation of a resident in Hawaii now that tourists are coming back:

Sunday I saw a group of 30 spring break tourists littering the beach with red cups and bottles of alcohol and trash. They had a table full of booze on the beach and were happily leaving their trash everywhere. No masks and no cares for Hawaii. When they left, instead of using the beach access they all climbed over the fence into someone’s yard because it saved them a minute of walking.

No I don’t miss tourists.

This is a global phenomenon. The absence of tourists has awakened a powerful sense that the profits (which flow into elite hands, not local economies) have taken precedence over the protection of what makes the destination worth visiting.

2. Work from home is here to stay. The benefits are too personal and powerful. Corporations demanding a return to long commutes and central offices will find their most productive employees are giving them “take this job and shove it” notices as they find positions with companies that understand that you can’t turn back the clock or ignore the benefits of flexible schedules.

3. Consumer behaviors have changed and are continuing to change. This is not just an expansion of home delivery; it’s a re-appraisal of big-ticket spending on concerts, entertainment, sports events and many other sectors that depend solely on free-spending consumers who ignore the recent doubling or tripling of prices.

4. Perceptions of the wealthy are changing. I touched on this topic in The Coming War on Wealth and the Wealthy (1/5/21) and The Coming Revolt of the Middle Class (1/27/21). Inequality is America’s Monster Id, and we’re continuing to fuel its future rampage daily.

The American Terror State

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By Donald Monaco

Source: Global Research

On February 26, 2021, imperial President Joe Biden ordered the bombing of “Iranian backed militias” in Syria. Biden’s action was rationalized as “retaliation” for rocket attacks on American troops in Iraq that killed a mercenary contractor and injured a U.S. soldier.  

Missing from coverage in the corporate media was any mention of the illegal U.S. military occupation of Iraq and Syria.  The occupation was simply airbrushed from discussion.  By so doing, reality is inverted.  Victim is portrayed as aggressor and aggressor as victim.

From the standpoint of international law, aggressive military action taken by occupation forces cannot be termed self-defense.  Yet political elites and media propagandists finesse basic truths by detaching U.S. forces from the context of illegal invasion and occupation.  They assume the military has a ‘right’ to be deployed anywhere in the world.

Paradoxically, the militias assaulted by the United States have been fighting ISIS, once again exposing the ‘war on terror’ as a massive lie.  The same militia forces Biden attacked were once led by Iranian General Soleimani, who was assassinated by Trump, further demonstrating the genuine purpose of military deployment which is to destabilize regimes targeted as unfriendly, meaning not subservient to the Washington.

Almost simultaneously, the Biden administration signaled that there would be no punishment of Saudi crown prince Mohammed bin Salman, who was identified by the CIA as having given the order to assassinate Washington Post journalist, Jamal Khashoggi.

Also, unsurprisingly, the Biden administration announced that it would appeal a British magistrate’s decision not to extradite Julian Assange to the United States for prosecution under the espionage act.  Assange languishes in a British prison pending the appeal.  His transgression? Exposing U.S. war crimes in Iraq.

The pattern is clear.  Any action that supports U.S. global hegemony is justified, while any opposition is criminalized and repressed.

The core mission of the American terror state is to make the world safe for U.S. corporate profiteering.  A corollary imperative is to prevent any challenge to U.S. global domination.

First, the United States is a permanent warfare state that fights perpetual wars for perpetual profits.  The profits accrue to the “merchants of death” who sell their wares within the iron triangle of a military-industrial-complex that guarantees a massive return on capital investments.  The process is known as “military Keynesianism.”  Corporations such as Lockheed Martin, Raytheon, General Dynamics, and Boeing provide the arms for a global military empire to defend the global corporate empire.  Profits also flow to members of congress who own stock in the defense industry.

The permanent warfare state also allows profits to accumulate for corporations that exploit the world’s land, labor, and resources by protecting their access to foreign markets.  Corporations such as World Mineral Inc, Peabody Energy, Rio Tinto, General Motors, Lithium Americas, AES, and Blackberry Ltd in the mineral extraction industry, Exxon Mobile, ConocoPhillips, and Chevron in the energy industry, Apple, Amazon, Alphabet, and Microsoft in the technology industry, General Motors, Ford, and Tesla in the automotive industry, Johnson & Johnson, Merck, and Pfizer in the pharmaceutical industry, and Walmart, Amazon, and Costco in the retail industry all operate in the global market.

Commercial banks such as JP Morgan Chase, Citigroup, Bank of America in the banking industry, Wall Street investment firms led by JP Morgan, Goldman Sachs, and Morgan Stanley in the financial industry, and private equity firms such as The Blackstone Group, The Carlyle Group, Kohlberg Kravis Roberts Co, and TPG Capital in the investment management industry finance global corporate transactions.

U.S. Fortune 500 companies made $14.2 trillion in revenues during 2020 and held an estimated $2.6 trillion offshore to avoid paying taxes.  The largest American corporations made billions of dollars in profits while laying off thousands of workers during the coronavirus lockdown.  Billionaires Jeff Bezos, Elon Musk, Warren Buffett, and their cohorts increased their net worth by half a trillion dollars during a pandemic that saw 8 million people join the ranks of 38.1 million poor Americans.  Another 93.6 million live close to the poverty level in the richest nation on earth.

Second, any country that wants to control its own land, labor, and resources by implementing an agenda of economic nationalism becomes a barrier to free trade, globalization, and the neoliberal economic paradigm that emphasizes privatization and deregulation of economies for the benefit of private capital.  Countries that do not throw themselves open to foreign investment are punished by crippling economic sanctions imposed by the U.S. Department of Treasury.

Third, the neoliberal economic agenda of free market privatization drives the neoconservative political agenda of American global hegemony as justified by Bush Jr.’s “Preemptive War on Terror,” Obama’s “Humanitarian Intervention,” Trump’s “America First,” and Biden’s “Advancement of Democracy” ideologies.

Neoconservatives dominate the foreign policy establishment.  Besides protecting U.S. empire, they are rabidly pro-Israel.  The neocons conflate the interests of the United States with the interests of Israel, ignoring George Washington’s admonition to avoid “foreign entanglements.”  They want the United States to go to war with Iran, as they understand that the destruction of resistance to Zionist colonization in Palestine can only be accomplished by defeating Tehran.

Other Middle Eastern and North African countries that supported the Palestinian cause and had large reserves of oil coveted by empire, were decimated by implementation of a neoconservative plan to attack seven Muslim countries in five years, beginning with Iraq and ending with Iran.

George W. Bush, the Texas oil man, Dick Cheney, former Chief Executive Officer of Halliburton, and a rat’s nest of neoconservatives led by Paul Wolfowitz, Douglas Feith, Richard Perle, and I. Lewis Libby decimated Iraq.

Barack Obama, the University of Chicago law professor and Nobel Peace Prize winner and neoconservative Secretary of State Hillary Clinton, destroyed Syria and turned Libya into a failed state that resulted in the enslavement of Black Africans.

Donald Trump, the real estate mogul and celebrity show host and Mike Pompeo, neoconservative war hawk and Secretary of State, continued the occupations of Syria, Iraq, and Afghanistan, supported Saudi Arabia’s genocidal war in Yemen, recognized Israel’s annexation of the Syrian Golan Heights, moved the U.S. embassy to the occupied city of Jerusalem and offered the Palestinians the “Deal of the Century” that was promptly rejected.

Despite his rhetoric, Trump failed to stand-up to the military-industrial-complex by ending ongoing U.S. wars.

Finally, Joe Biden, a self-professed Zionist, supported every U.S. war to come down the pike during his tenure as U.S. senator and vice-president, making him a warmonger.

The policies of empire are planned in the corridors of the Council on Foreign Relations, Heritage Foundation, Rand Corporation, Center for Strategic and International Studies, American Enterprise Institute and a myriad array of pro-war institutes that function within the policy formulation network financed by the corporate rich.

The matrix of power in the United States is strikingly transparent.  The corporate rich own the country.  The political class protects their property and their empire by pursuing the interests of oligarchic masters as defined by ‘experts’ in the policy formulation network.  Academic and media elites rationalize the need for an empire that is never called by its proper name.

The costs of empire paid by the American people are staggering.

A study conducted by the Watson Institute of International & Public Affairs at Brown University concluded that the United States has spent $6.4 trillion on war since 9/11.

The National Defense Authorization Act of 2021 allocated $740 Billion for the military and prohibited President Trump from withdrawing troops from Afghanistan and Iraq.  Joseph Biden works within in the same institutional framework that enmeshed his predecessor.  The Biden administration is considering troop re-deployment to confront Russia and China.  But no return of troops to the United States is contemplated.

The United States currently has over 1.3 million active-duty troops, with 450,000 stationed on over 800 military bases in 70 countries around the world. Special military operations are being conducted in 141 countries.  U.S. global military presence escalated under both the Obama and Trump administrations.

As U.S. military presence increases around the world, so do the crimes of empire.  Obama prosecuted drone warfare that killed approximately 5,000 innocent civilians.  Trump escalated drone strikes.   Obama launched 1,878 attacks during his eight years in office.  Trump ordered 2,243 strikes during his four-year tenure in the White House while concealing deaths that occurred as the result of attacks.

Since 9/11 the U.S. has killed an estimated 6 million people in wars in Iraq, Afghanistan, Pakistan, Libya, Syria, Somalia, and Yemen.  At least 37 million people have been displaced by U.S. wars.  The U.S. has bombed 9 countries since 9/11 adding to the list of 24 other nations it bombed after World War II.  Exactly 80 countries have been subjected to U.S. counter-terrorism operations during the “war on terror.”  Behind the statistics lies an ocean of human suffering.

The monumental questions of peace and war in the United States will not be decided by an election.  They will ultimately be decided by a revolt.  The shell-game of American politics wherein populist rhetoric is used to conceal plutocratic governance is bankrupt.

The United States is a militarized terror state.  The magnitude of violence perpetrated by the U.S. government has become so routine that perpetual war is normalized.  The question remains, how long will the American people continue to be slaves of a terror state?

Stagflation Subterfuge: The Real Disaster Hidden By The Pandemic

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By Brandon Smith

Source: Alt-Market.us

In recent economic news, headlines are being dominated by concerns over rising bond yields. Increased bond yields are a sign of a possible spike in inflation and, logically, they call for the Federal Reserve to raise interest rates in order to prevent that inflation.

Higher bond yields also mean there is a competitive alternative to stocks for investors – both factors that could trigger a plunge in the stock market.

If one studies the real history behind the stock market crash during the Great Depression, they will find that it was the Federal Reserve’s interest rate hikes that caused and prolonged the disaster after they had created an environment of cheap and easy money throughout the 1920s. Former Chairman Ben Bernanke openly admitted the Fed was responsible back in 2002 in a speech honoring Milton Friedman. He stated:

“In short, according to Friedman and Schwartz, because of institutional changes and misguided doctrines, the banking panics of the Great Contraction were much more severe and widespread than would have normally occurred during a downturn. Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You’re right, we did it. We’re very sorry. But thanks to you, we won’t do it again.”

This then raises the question – inflation or deflation? Will the Fed “do it again?”

Probably not in exactly the same way, but we will see elements of both inflation and deflation soon in the form of stagflation.

It’s a Catch-22 that the central bank has created, and many (including myself) believe that the Fed has created the conundrum deliberately. All central banks are tied together by the Bank for International Settlements (BIS) and the BIS is a globalist institution through and through. The globalist agenda seeks to trigger what they call the “Great Reset,” a complete reformation of the global economy and capitalism into a single one world socialist system… managed by the globalists themselves, of course.

In my view the Fed has always been a kind of institutional suicide bomber; its job is to self-destruct at the right moment and take the U.S. economy down with it, all in the name of spreading its cult-like globalist ideology.

The only unknown at this point is how they will go about their sabotage. Will the central bank continue to allow inflation to explode the cost of living in the U.S., or will they intervene with higher interest rates and allow stock markets to crash?

Either way, we face a serious economic crisis in the near future.

 

Increasing Inflation Means Economic Recovery?

Mainstream economists will often argue that rising yields and inflation are a “good thing.” They claim this is a sign of rapid economic recovery. I disagree.

If “inflation” was the same as “recovery,” then there would not have been total economic collapses in Argentina in 2002, in Yugoslavia in 1994, or in Weimar Germany in the early 1920s.

I do not see recovery. What I see is the rapid devaluation of the dollar’s buying power due to massive fiat printing through stimulus measures. The Fed and the U.S. government are buying a short-term surge in economic activity, but at a hidden cost. This is a condition that the Dollar Index does not even begin to address, but obvious in prices of necessary goods and commodities.

Keep in mind that all of this is being done in the name of responding to the pandemic. The pandemic is the ultimate excuse for the active destruction of the U.S. economy. Stimulus measures have devolved into helicopter money being thrown about haphazardly as billions are siphoned primarily by major corporations and through fraud. People who are clamoring for a $2,000 relief check from the government have no idea that corporate welfare has been ongoing for the past year along with billions in retroactive tax refunds. All of that money printing is going to cause damage somewhere. It cannot be avoided.

 

It’s Not About The Pandemic

Let’s make something clear first: The pandemic is NOT the reason for the stimulus flood. The pandemic did very little to hurt actual business in the U.S. Rather, it was the lockdowns that did most of the damage.

Think about that for a moment – federal and state governments crushed the economy through lockdowns, then offered the solution of vast stimulus measures. This in turn is destroying financial stability and generating rapid price inflation.

Conservative states and counties that refused to shut down are recovering at a much faster pace than leftist states which imposed draconian restrictions on citizens. Yet, the lockdowns did nothing to stop the spread of COVID-19 in blue states. So, the lockdowns accomplished no discernible advantage for the public, but they did give the central bank a perfect rationale to further erode the dollar.

This resulting price inflation is something that not even the red states can escape.

For example, home prices are rapidly expanding beyond the market bubble of 2006. This is partially due to millions of people participating in perhaps the largest migration in the U.S. since the Great Depression. Anyone who is able is moving away from major cities into suburban and rural areas. But, home prices also have a historic habit of inflating along with currency devaluation. The cost of maintaining and remodeling an older home, or building a new home, rises as the prices of commodities like lumber inflate.

And lumber prices are certainly inflating! Softwood lumber prices are up at least 110% from a year ago, and are climbing as much as 10% in a week.

Home rentals also do not escape inflation, as the rising cost of maintaining properties forces landlords to increase rents. The only places where rents are decreasing are major cities that Americans are seeking to flee, such as New York and San Francisco.

 

Inflation In More Than Just Housing

The majority of commodities continue to see price inflation across the board. Food and energy prices have been creeping higher for the past year. Governments are once again blaming the pandemic and “stresses on the supply chain,” which may have been a believable claim nine months ago, but not today. Anything to hide the fact that all that stimulus has inflationary consequences.

Dollar devaluation is the most visible in terms of imported goods. In other words, it costs more dollars to buy goods outside the U.S. as the value of the dollar falls. And since the majority of U.S. retail is supplied by foreign producers, this means that average American consumers will suffer the brunt of inflationary consequences. Public stress and anger will be high.

 

Pandemic Lockdowns Are Just An Excuse

This is why the COVID-19 lockdowns must continue and the pandemic fear factory must remain active. The globalists need a cover event for the Reset and they need to keep the citizenry under control, and the pandemic can be blamed for just about anything. I think this is why we are already seeing the media hyping the existence of “COVID mutations.” Do not be surprised if the Biden Administration tries to implement a national lockdown sometime this year in the name of stopping the spread of a “more deadly” COVID-19 variant.

It won’t matter that the previous lockdowns were useless and all the data shows that keeping the economy open is a superior policy. It might seem like logic is going completely out the window, but there is a very logical reason for what is happening in the minds of globalists.

Stagflation comes into play through losses in certain sectors of the economy, high unemployment and the inability of wages to keep up with costs.

There is the continued dismantling of the small business sector, which, again, I believe is being destroyed deliberately. It’s not a mistake that small businesses were predominantly targeted as “non-essential” during the lockdowns. It’s also not a coincidence that the majority of COVID-19 PPP loans went to big box corporations while small businesses received almost nothing. The small business sector is being erased, leaving only the corporate sector to provide for consumers.

This may be why Democrats are so adamant about raising the federal minimum wage to $15 an hour. Wages are already rising according to market demand and region. The average non-skilled worker in the U.S. is making around $11 an hour. There is no need for the government to interfere, unless they have ulterior motives.

A $15 minimum wage would likely crush what’s left of small businesses, and only corporations that are receiving the bulk of stimulus dollars will be able to afford to pay workers the higher rate. On top of that, years from now the government could claim they “took action” to front-run stagflation by increasing people’s pay. But a $15 minimum wage is most useful to the establishment in the short term because it muddies the waters on the inflation issue.

Prices will continue to rise due to dollar devaluation, but the media and government will say that it has nothing to do with the dollar and everything to do with companies raising shelf prices to offset increased labor costs.

 

The Biggest Threat In The History Of American Society

I suspect that the establishment will do everything in its power to distract the public from the biggest threat in the history of American society – the stagflationary time bomb.

If they admit to its existence then the public could prepare for it, and they don’t want that. If Americans were to decentralize their local economies, support local small businesses instead of big box retailers, start producing necessities for themselves, and if they started developing currency alternatives like local scrip backed by commodities… then they would be able to survive a national financial crisis.

In fact, I guarantee that any community, county or state that takes these steps will immediately be targeted by the federal government, further revealing the truth: The establishment wants the public to suffer.

They want economic disaster. They do not want people to have the option of taking care of themselves. They need people scared, desperate and malleable, or they will never achieve their Reset agenda.

When will the central bankers pay for all the wealth inequality and misery they’ve caused?

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By Mitchell Feierstein

Source: RT.com

Janet Yellen’s been nominated by Joe Biden as Treasury Secretary, despite a poor record as Federal Reserve chair. This is typical of the unwarranted confidence placed in the central bankers who’ve caused so much financial pain.

The US Federal Reserve was established on December 23, 1913, and, despite its name, it is not a bank or part of the federal government. The Federal Reserve (or ‘Fed’) is owned and acts on behalf of its members, such as JPMorgan, Goldman Sachs and Berkshire Financial Services. Do you think the Fed cares about the wealth inequality its reckless policies have caused – policies that have benefited the .01 percenters that own it? Since 1913, the US dollar’s value has declined by 97 percent. Can the Fed really be considered to be doing a good job?

Consider, for example, these remarkable comments from central bankers. In March 2007, Fed Chairman Ben Bernanke said the subprime mortgage crisis was “likely to be contained,” and in May of that year, he added, “The vast majority of mortgages, including even subprime mortgages, continue to perform well. We do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system.” 

In October 2007, he said, “It is not the responsibility of the Federal Reserve – nor would it be appropriate – to protect lenders and investors from the consequences of their financial decisions.”

In November 2010, during a Federal Reserve conference on Georgia’s Jekyll Island, former Fed chairman Alan Greenspan said a lesson he learnt from the 2008 crisis is how the taxpayers implicitly subsidized the “financial intermediary system in the US.” He went on to point out that “there was rampant fraud in a lot of what was going on in these markets. We need far higher levels of enforcement of fraud on statutes – not new ones, existing ones. Things were being done that were certainly illegal and clearly criminal.” The look on then Chairman Bernanke’s face when Greenspan dropped this truth bomb was priceless.

In 2015, the Financial Times reported how the Bank of Japan’s Haruhiko Kuroda “reimagined” its monetary policy on the belief in Peter Pan’s ability to fly. No wonder Japan’s economy has had no growth for nearly 40 years. And the frightening part is the West began embracing this failed economic model years ago.

Then there was Fed chief Janet Yellen, who, in 2017, said she didn’t believe we would see another financial crisis in our lifetime. How many times were Yellen’s economic forecasts during and after the global financial crisis proven wrong? Too many to count.

She often repeated how the Fed’s temporary emergency measures would be removed and we would have ‘lift-off’ of interest rates. But, of course, none of this ever happened, and we are still waiting, over 12 years later. Yellen kept bailing out billionaires with near-zero interest rates while killing savers and increasing the wealth inequality gap. The oligarchs of Silicon Valley love Yellen. And Wall Street adores her, as well as the Fed’s magic printing presses, with their unlimited capability.

Yellen’s counterpart at the time, Mark Carney, who was the head of the Financial Stability Board and the Bank of England, as well as the ex-governor of the Bank of Canada, was singing from the same hymn sheet. Carney, mirroring the policies of Bernanke and Yellen, inflated grotesque property bubbles in Canada and the UK by pushing interest rates to 900-year lows, eviscerating savers and elderly retirees while landing taxpayers with the bailout bill for the billionaires and bankers who’d blown up the system.

Carney is another who got it wrong about normalized interest rates in both the economies his policies destroyed. He promised “escape velocity” in the UK, but, like Yellen’s ‘lift-off,’ both crashed on the launch pad. Their policies still protected and enhanced the oligarchy, though.

Central bankers such as Yellen and Carney were paid handsomely for this. One must surmise that their ilk always intended to enrich the powerful oligarchs in the cantons of Wall Street, London, and Silicon Valley to the detriment of everyone else. This is the model: propaganda, lies, and censorship are used to ensure globalism that fosters tyrannical rule, which, in turn, is beneficial to maintaining the status quo demanded by the oligarchy. Be an obedient apparatchik and earn a golden parachute when you exit.

The policies of these two central bankers have created the most significant wealth inequality ever seen and have allowed for the financial plunder that benefited the .01 percent and turbo-charged the oligarchy. But now, Yellen and Carney have transformed themselves into social justice warriors, championing equality, racial equity and climate change. In fact, Joe Biden has deified Yellen, saying, “We might have to ask Lin-Manuel Miranda, who wrote the musical about the first Treasury Secretary, Hamilton, to write another musical for the first woman Treasury Secretary, Yellen.” 

It beggars belief how, after years of lies and economic destruction, lipstick is put on pigs to re-brand the oligarchs’ go-to patsies, Yellen and Carney. And now, Yellen may get a chance to do some serious damage should she become Treasury Secretary. When considering central bankers like these, we should remember the old maxim: beware of false prophets.

Our Frustrations Run Far Deeper Than Covid Lockdowns

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By Charles Hugh Smith

Source: Of Two Minds

The reality is the roulette wheel is rigged and only chumps believe it’s a fair game.

It’s easy to lay America’s visible frustrations at the feet of Covid lockdowns or political polarization, but this conveniently ignores the real driver: systemic unfairness. The status quo has been increasingly rigged to benefit insiders and elites as the powers of central banks and governments have picked the winners (cronies, insiders, cartels and monopolies) and shifted the losses and risks onto the losers (the rest of us).

We now live in the world the 19th-century French economist Frederic Bastiat so aptly described: “When plunder becomes a way of life for a group of men in a society, over the course of time they create for themselves a legal system that authorizes it and a moral code that glorifies it.”

As I noted in The One Chart That Predicts our Future, ours is a two-tier society and economy with a broken ladder of social mobility for those trying to reach the security of the technocrat class and a well-greased slide for everyone who trips and slides from relative security down to the ever-expanding ALICE-precariat class: assets limited, income constrained, employed.

As Bastiat observed, those rigging the system to benefit themselves always create a legal system that lets them off scot-free and a PR scheme that glorifies their predation as well-deserved rewards that are the natural due of their enormous appetite for hard work and innovation.

You know, hard work and innovation like this:

JPMorgan Makes $1 Billion From Gold Trading After Paying $1 Billion Fine For Manipulating Gold Trading.

Embezzling a couple billion dollars also earns you a get out of jail free card: none of the perps in Wall Street’s skims, scams and frauds ever gets indicted, much less convicted, and none of Wall Street’s legalized looters ever goes to prison.

And this is a fair and just system? Uh, right. Meanwhile, the reality is the roulette wheel is rigged and only chumps believe it’s a fair game. Those who know it’s rigged have essentially zero agency (control / power) or capital to demand an unrigged game or finagle their way into the elite class doing the skimming.

The net result is soaring frustration with a patently unfair system that’s touted as the fairest in the entire world. Gordon Long and I do a deep dive into the frustrations with systemic unfairness in our new video, The Frustrations of Unfairness Are Reaching a Boiling Point.

The key takeaway in my view is the unfairness isn’t limited to the economy, society or politics– it’s manifesting in all three realms. It isn’t just frustration with domestic issues–the global economic order is also a source of unfairness and powerlessness.

We each drew up a list of specific drivers of unfairness / frustration. Here’s my list:

And here’s Gordon’s list:

There is much more in our presentation. These are the dynamics that are tearing apart our social cohesion and that will soon start destabilizing the economy–regardless of how much “money” the Federal Reserve prints.

What We Don’t Elect Matters Most: Central Banking and the Permanent Government

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By Charles Hugh Smith

Source: Of Two Minds

We’re Number One in wealth, income and power inequality, yea for the Fed and the Empire!

If we avert our eyes from the electoral battle on the blood-soaked sand of the Coliseum and look behind the screen, we find the powers that matter are not elected: our owned by a few big banks Federal Reserve, run by a handful of technocrats, and the immense National Security State, a.k.a. the Permanent Government. These entities operate the Empire which hosts the electoral games for the entertainment and distraction of the public.

The governance machinery controlled by elected representatives is tightly constrained in what it can and cannot do. It can’t do anything to stop the debasement of the nation’s currency, which is totally controlled by the Politburo of the Fed, nor can it do much to limit the Imperial Project, other than feel-good PR bits here and there.

The president wields vast powers but even the president is powerless to stop the debasement of the nation’s currency and the enrichment of bankers, financiers, corporations, etc., who fund the campaigns of the gladiators, oops I mean politicians.

If we set aside the term Deep State and simply call it the unelected machinery of governance (Permanent Government), we get a clear picture of its scope and power. Presidents, senators and representatives come and go, but the machinery of Empire grinds on, decade after decade.

A great many people and places in America don’t matter to the Fed or the Permanent Government, and so they’ve been abandoned to their fates. The darlings of the Fed and Empire are clustered in Silicon Valley and other urban hubs where the technological and financial machinery of global hegemony are fabricated and maintained.

Those far from these centers of banking, finance and Big Tech have little to no stake as owners of meaningful capital. All they have to sell is their labor, and that’s been losing purchasing power for decades as financialization and globalization have stripmined rural America and enriched the bankers, financiers and speculators who serve the Fed and unelected Permanent Government.

The Fed and the Permanent Government have been very, very good to the few at the expense of the many. Look at the chart below at America’s complete dominance when measured by the soaring wealth of its top 1% power elite: We’re Number One in wealth, income and power inequality, yea for the Fed and the Empire! And we don’t have to elect them–they elect themselves.