Is this even possible? Faced with a complete collapse of the financial system, I agree that this is possible. What would YOU do? (if you could do something about it.)
What would I do? Isn't preserving yourself a basic tenet of life? The odds may be low but I also think some people are ready to put all their chips on the table. (If they are ready to go nuclear and that is the alternative then it almost looks sane.)
What is this book about? It is about the taking of collateral, all of it, the end game of this globally synchronous debt accumulation super cycle. This is being executed by long-planned, intelligent design, the audacity and scope of which is difficult for the mind to encompass. Included are all financial assets, all money on deposit at banks, all stocks and bonds, and hence, all underlying property of all public corporations, including all inventories, plant and equipment, land, mineral deposits, inventions and intellectual property. Privately owned personal and real property financed with any amount of debt will be similarly taken, as will the assets of privately owned businesses, which have been financed with
debt. If even partially successful, this will be the greatest conquest and subjugation in world history.
We are now living within a hybrid war conducted almost entirely by
deception, and thus designed to achieve war aims with little energy
input. It is a war of conquest directed not against other nation states
but against all of humanity.
Private, closely held control of all central banks, and hence of all
money creation, has allowed a very few people to control all political
parties, governments, the intelligence agencies and their myriad front
organizations, the armed forces, the police, the major corporations,
and of course, the media. These very few people are the prime movers.
Their plans are executed over decades. Their control is opaque. When
George Soros said to me, “You don’t know what they can do,” it was
these people to whom he referred. Now, to be absolutely clear, it is
these very few people, who are hidden from you, who are behind this
war against humanity. You may never know who they are. The people
you are allowed to see are hired “face men” and “face women.” They
are expendable.
One might seek comfort in thinking that this must be crazy; nothing
like this has ever happened before . . . but it has. The precedent for
the intent, design and horrific execution of such a plan can be found
by examining the early 20th century, the period of the great wars and
the Great Depression. The proclaimed “Great Reset” now in progress,
however, includes major innovations, which will allow unprecedented
concentration of wealth and of power over humanity through depriva-
tion. How might it come to pass that you will own nothing, as so boldly
predicted by the World Economic Forum? It certainly is not about the
personal convenience of renting.
With the collapse of each financial bubble and the ensuing financial
crisis, a story is rolled out which should now be familiar to you. It goes
like this: All of us are at fault. We just wanted too much, and we were
living beyond our means. And now, our collective greed has caused this
terrible global crisis. The “Authorities”, the “Regulators” had struggled
mightily to protect us from our own “animal spirits”, their great and
elaborate efforts having been demonstrated through decades of work.
Despite their good intentions, however, they failed, and can’t be blamed
(or prosecuted) for that. After all, we are all to blame. In any case, let’s
look forward. The financial system must be restarted, so that we can
provide credit to you again, create jobs and get the economy growing,
whatever it takes!
This time, what it will take is all of your property, or what you thought
was your property. Here is your Central Bank Digital Currency deposited
on your smart phone, so that you can buy milk. Noblesse Oblige!
Money is an extremely efficient control system. People order them-
selves upon money incentives, and thus difficult, dangerous and energy
intensive overt physical control need not be employed broadly. But the
money control system breaks down at the end of a monetary “super
cycle”, with collapse in the Velocity of Money (Velocity, or VOM). This
is a multi-decade process.
Velocity is the number of times that a unit of currency is spent to buy
goods and services in a period of time. This is measured by comparing
the value of all goods and services produced in a period of time (Gross
Domestic Product, or GDP), with the value of all cash and deposits
which can be used nearly as easily as cash (Money Supply).
Velocity = GDP
Money Supply
Thus, Velocity × Money Supply = GDP. Lower Velocity results in lower
GDP.
Milton Friedman was an economist noted for the study of monetary
history. In his book A Monetary history of the United States, 1867-1960
[1], co-authored with Anna Schwartz, we find the following observation:
[W]e know enough to demonstrate rather conclusively that . . .
velocity [of money] must have declined sharply from 1880 to
World War I . . .
Collapse in VOM is exactly what was unfolding from the 19th century
and leading up to the Great War. Within a few years, the Russian,
Austro-Hungarian, and Ottoman empires ceased to exist, as did the
Qing Dynasty. The German economy was destroyed. Then followed the
Great Depression, the Second World War, and the slow collapse of the
British Empire. No populations were unscathed. There were no winners.
Or were there?
While there was widespread deprivation, selected banking interests took
the collateral of the thousands of banks which were forced to close,
as well as of a great many people and businesses large and small—the
indebted. In the U.S., gold held by the public was confiscated. But most
importantly, closely held secretive private control of central banks and
money creation was maintained, as was the aforementioned control
over society’s key institutions, including political parties, governments,
intelligence agencies, armed forces, police, major corporations, and
media.
The heirs to this control position have known for many decades that
such a collapse in VOM would come again. They have been preparing.
For them, it is an absolute imperative to remain in control through
the collapse and “Great Reset”; otherwise they risk being discovered,
investigated and prosecuted. They are not doing it for us. There is no
noble purpose.
We are now living within a replay of this monetary phenomenon, i.e., a
profound decline in VOM, which began when Velocity peaked in 1997.
This was coincident with onset of a major global financial crisis, known
as the Asian Financial Crisis, and it was followed within a few years by
the Dot-Com Bubble and bust.
Throughout this period, I was managing long/short equity hedge funds,
and I developed the insight that the Federal Reserve was influencing
the direction of financial markets (this was considered conspiracy
theory, even by my partners). At that time, it was done through Open
Market Operations conducted by the New York Fed using repurchase
agreements on treasury securities.
I began, systematically, following the rate of growth in M3, the broadest
measure of money at the time (which is no longer published). I studied
what was unfolding incrementally, and I saw that in individual weeks
new money created was more than 1% of annual U.S. GDP. This was
when it first occurred to me that the Fed was getting less “bang for the
buck”, in that GDP was not responding to money creation. This meant
that the velocity of money was inverting, and that money growth was
now much higher than any GDP growth. The money being created was
not going into the real economy, but it was driving a financial bubble
with no relationship to underlying economic activity. I understood
this, not with hindsight, but in near real-time. If I could know it, Alan
Greenspan and the people he worked for knew it, too. So why did they
do it? If something does not make sense, it is necessary to change one’s
perspective and aim for a larger understanding. Crises do not occur by
accident; they are induced intentionally and used to consolidate power
and to put in place measures, which will be used later.
By the 4th quarter of 1999, when the Dot-Com Bubble was reaching
extremes, I saw that the money supply was being increased at more
than a 40% annual rate. I knew that this meant that the Velocity of
Figure I.1 Annual velocity of money, from 1900 to 2021. Source: Hoisington
Management.
Money was collapsing. Such a collapse occurs when the economy is not
growing despite very high rates of money creation.
Please observe the extremely important chart in Figure I.1, which was
prepared by Hoisington Management. For once, one can see a true
underlying determinant of the sweep of history.
Profound decline in VOM lead to the Financial Panic of 1907, which was
used to justify the establishment of the Federal Reserve System. The
Federal Reserve Act was passed by Congress in the quiet days before
Christmas, 1913. Archduke Ferdinand was assassinated six months
later.
Following a brief recovery in VOM during the Great War, it collapsed
further, leading up to the closure of banks and the confiscation of gold
in 1933. VOM recovered somewhat into the Second World War, and
then collapsed to a low in 1946, unprecedented until now.
VOM has now contracted to a lower level than at any point during the
Great Depression and world wars. Once the ability to produce growth
by printing money has been exhausted, creating more money will not
help. It is pushing on a string. The phenomenon is irreversible. And so,
perhaps announcement of the “Great Reset” has been motivated not
by “Global Warming” or by profound insights into a “Fourth Industrial
Revolution”, but rather by certain knowledge of the collapse of this
fundamental monetary phenomenon, the implications of which extend
far beyond economics.
Something has been planned for us, but not for the reasons you have
been given. How might we come to know something about the inten-
tions of the planners? Perhaps, by examining their preparations?
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