QE is slowly destroying the global economy

Global Intel Hub  ZERO HEDGE EXCLUSIVE — 10/18/2021 — As explained in Splitting Pennies – It’s not the value of assets going up it’s the value of the USD going down.  Let’s start out with rumor of a “Global Dollar Collapse” – what does that even mean?  Collapse against what?

Currencies are traded in pairs, i.e. one against another, this includes Bitcoin, the price is usually reflected as BTC/USD which means 60,000 [USD] = 1 [BTC].  Bitcoin is denominated in Dollars.

There is only one chart that matters in this environment, and it’s the answer to the question about dollar collapse, product shortages, and where we are headed.  It’s the Fed’s infamous “Money Supply” chart, M1 – from fred.crediblock.com:

Source: Fred.crediblock.com

Here we have zoomed in and highlighted ‘tapering’ – in this context ‘tapering’ means Quantitative Easing (QE) “Money Printing” at a rate 2x – 10x more than normal, not 1,000x more.

Source: Fred.crediblock.com

The US Dollar is a global reserve currency so if it goes down it must go down against something.  As 95% of foreign currency is backed by USD, that something is not going to be foreign currency.  In other words, you can’t buy Euros in expectation that a USD collapse will make the EUR/USD rate higher.  It may move a few basis points but it’s not going to go up like the chart above, because if you look at the central bank balance sheets they all use USD as a base currency.  This may seem counterintuitive but that’s the structure of the modern central banking system, post Nixon’s default.  Before 1971, the USD was backed by Gold so that’s the reason most of the world chose to use the USD as the reserve currency, that and most of the world was bombed into complete devastation by US made munitions.  I’m not saying that affected their decision making but let’s be realistic here.  But when Nixon defaulted on that system, the world didn’t adjust.  It’s almost as if Nixon worked for the Globalists, or (ahem) had a Globalist advisor telling him what to do, O Henry! Oy vey.

The world kept on using the US Dollar as if it was ‘as good as Gold’ because the policy then became, wink wink if you use our money then we will protect you with our military, (See Saudi Arabia, Taiwan, South Korea, Japan, and many others..) and if you don’t – well you get bombed.  Students of history may note that before major US invasions there were policy shifts away from US Currency, such as Iraq did shortly before US forces arrived to change the policy.

We are experiencing the collapse in value of the US Dollar now, and that is being reflected in the prices of stocks, housing, energy, consumer goods, and crabcakes.  The “Dark Winter” war game Fauci is hinting at is very real, you can read about it here or see the entire PDF here. (This file was uploaded to GlobalIntelHub.com in 2013)

You may be asking what a military bioterrorism exercise has to do with money printing.  As explained above, US economic policy has always been tied to US foreign military policy.  What is driving the shipping and logistics quagmire are multiple variables:

Labor shortage
Inflation (Fed money printing)
COVID policies (as directed by privately funded WHO)

So the shortages are artificially engineered with a few goals in mind.  In the short term, it’s going to drive margins for the manufacturers through the roof.  For a long time companies selling staples like Toilet Paper, Toothpaste, Chicken, and Diapers have been used to razor thin margins, where the cost of shipping goods is often higher than the goods themselves.  So it is in the interest of the Monopolies of the world to form a cartel and create scarcity.  Scarcity creates a market where consumers may be twice the price they previously paid, or greater.

The most likely scenario of the Dark Winter economically is that there will be less variety, and prices will be off the charts.  There will be sausages, but only 2 choices not 100 choices.  Do we really need 300 kinds of Cheese to choose from?  The other day at a celebratory lunch we ordered crab cakes, the waiter said ‘one or two’ we said ‘two’ not asking the price, it was an event.  We loved them so much we asked for an order to go – got the bill and $21 per crab cake!  When we asked the server he explained about the crab ecosystem and the ‘cost of food is skyrocketing’ but where is the problem?  Just don’t order crab cakes.  But here is where massive QE becomes toxic.

It takes time for money printing to circulate through the economy.  We are seeing now the effects of QE from months ago.  The only ‘hot money’ are stimulus checks that people spent before the payments settled in their accounts, but if you look at the total stimulus vs. the entire QE it’s a minor percentage.  The evidence of this is by looking at a hot money indicator known as ‘Velocity of Money’ which means how often the same dollar trades hands.  In a vibrant economy, velocity of money should be high.  What has been happening, money is increasing in quantity (making the value less) at the same time the velocity of money is going down, inversely:

The markets are rigged, the game is fixed, the losers lose.. The rich get rich.  That’s how it goes – everybody knows.

We live in a planned economy, markets are an illusion.  It is done in such a way as to make people believe otherwise.  Stock market quotes are shouted on a continual basis even in the elevators while you go to your meeting, people bet on stocks they like.  But they will never shout M1 or Velocity of Money statistics in the media.

We are living through the slow collapse of the US Dollar, but one must look at things for what they are.  When you see asset prices going ‘up’ that’s not what’s happening, the dollar is going down.  It now costs you $21 to buy the same crab cake that cost $10 6 months ago.  Out of all the QE that was generated, the greater majority of it has went into the revenues of the mega cap companies of the world, and crushing the little guy who didn’t have the stamina or political pull to make it through lockdowns and mask rules.

Think about the vicious circle of QE another way.  As the QE has driven up stock prices, retired and semi-retired boomers are sitting on some huge profits and have money to spend.  That creates organic inflation on the consumer level, and since the supply side is not so elastic, it may even create shortages.  Take the case of the US ammunitions market.  There are certain types of ammo such as 6.5 Creedmoor.  Previously it was .22 that was unavailable.  Across the board, prices of available ammo are up double and triple digits – if you can get it.

There are those who believe that when the USD collapses it will send Gold & Silver skyrocketing – the big problem with that is metals markets are totally manipulated.  [1] JPMorgan last year agreed to pay more than $920 million to settle cases in silver manipulation alone.  In fact, if you take a good look at markets, there are Monopolies everywhere.  The Monopolies are cartels in that they are not single organizations but they function as one, such as OPEC.  The same is true in financial markets as it is in Silicon Valley or even in the automotive sector.  Cartel A may stage economic terrorism against Cartel B but in the end they have common interests to fix prices and screw the end user (the consumer).  This is also true of central banking, which is why a US Dollar collapse as envisioned by Bitcoiners and Gold Bugs is an unlikely scenario because it would collapse the whole system.  If the USD simply stopped working, or the Fed defaulted force majeure – there would be no assets to measure the collapse against.  Or in other words, there is no financial hedge for such a scenario, in which case the only metal that would be valuable would be accelerated lead.  Although it seems as if sometimes the Fed doesn’t know what it’s doing, they do have access to the world’s smartest people, AI war game economic simulations, research institutions, and pretty much anything they could possibly need.  They have simulated and planned out thousands of what if scenarios, often with the US Government (for a good read on this topic see Jim Rickards “Currency Wars”).  Don’t think that 100+ years of planning and preparing has left the Fed lost in the dark.  They have technology that most people don’t even know about – for example they have tagging in electronic currency since the 1970s.  Once electronic currency leaves the Fed and goes into member bank accounts and into the economy, they can trace each step every dollar has made back to the source.  The US Dollar has been a Crypto currency at least since the 1980s, and proliferated since the 1990s – but only the Fed itself has the keys to unlock that encryption.  So in other words, it’s Crypto for the Fed – but not for the end user.  Bottom line is the Fed knows where each and every dollar came from and where it is at all times.  The banks do not have the keys but if they do call FinCen they can get the ‘guys upstairs’ to let them know what’s going on.

If these doomsayers are suggesting the dollar will implode- what is the alternative?  It’s certainly not China, and it’s definitely not Bitcoin.  Yes there are many alternatives such as a Gold backed currency, or a sovereign currency – but do we have the political courage and economic stomach to suffer through the adjustments necessary for a money based debt-free system?  As long as people keep demanding their comfort long life, the answer is a hard no.  The Fed has a contract with the US Government to create the financial system and manage it – as a private currency or if you want an economic Monopoly.  That contract could be unwound just like we did away with Prohibition or many other ridiculous ideas to create artificial Monopolies to benefit a few UHNWI.  But what is the likelihood of that happening?  Very low, considering Wall St. is DC’s most powerful lobbyist, and due to the rotating door policy they are ‘regulating themselves’ which means giving themselves Monopolies and using Federal Government power to quash competitors, such as was done with COVID lockdown rules, and was done with the Dodd-Frank Small Business Destruction Act.  Or to put it in perspective, in order to actually collapse the system we would need a boycott.  We need the greater majority of users to stop using US Dollars for a week.  How long is that going to last?

When JP Morgan and friends sold the Congress on the Fed in 1913, they were all wealthy beyond words and had their own fiefdoms.  It would take that kind of money and power to lobby DC to create an alternative – and the Monopolists and not going to vote themselves out of power – why would they?  Do you see the situation we are in?  The current system works and the Fed can easily stop an implosion by printing more money.  Trading curbs, bank holidays, government shut downs, lockdowns, electrical grid failure, trading halts, and now “COVID” can all be used to stop a crash if it happened.   We must understand that a modern ‘bank run’ is not possible because of how the electronic financial system works.  Try to go into a bank now during normal times and request $50,000 in cash.  You can order it, if you have it in your account, it may take 6 weeks it may take 6 months.  But you can use your card to buy a car that costs the same amount, and you can drive away with the car- that day (assuming there is a chip from the factory).  Point is we can’t use archaic economic models to attempt to dissect the macro picture in today’s connected world.

It’s going to change our decision making, and will have an accelerated impact on social behavior which is what they want in order to usher in the New World Order, so either invest big in private markets or stop eating crab cakes.  They are all buying our compliance one way or another.

That doesn’t mean one can’t make a few shekels trading the markets @ LevelX, or investing in Pre IPO companies before they IPO – but if you want to understand global macro markets checkout  Splitting Pennies – Understanding Forex

[1] https://www.reuters.com/business/finance/florida-miners-lawsuit-accuses-jpmorgan-manipulating-silver-prices-2021-10-01/

Leave a Reply

Your email address will not be published. Required fields are marked *