https://www.oftwominds.com/blogjan21/fed-fails1-21.html
How the Fed Fails
The Fed will fail as a result of two dynamics: diminishing returns and the U.S. dollar's
role as a global reserve currency. The Fed's reign as the godhead of financier-banker supremacy
has been fun and games for the past 12 years of stock market euphoria, but that's about to
change.
All those expecting the Fed to sink the USD to near-zero to "save the stock market" don't seem
to realize that they're also expecting the U.S. to surrender its global hegemony, which rests
entirely on the U.S. dollar. The USD is the world's dominant reserve currency--please
examine the chart below. The USD dwarfs the next largest reserve currency, the euro. The Chinese
yuan--due to its peg to the USD, essentially a proxy for the USD--is a tiny sliver of global reserves.
The owner of a reserve currency can create "money" out of thin air and trade it for autos,
oil, semiconductors--real-world goods that were not created out of thin air. All these
real-world goods required tremendous investment and significant costs to be produced and transported.
No wonder trading something for nothing--a remarkably good deal--is termed an exorbitant privilege.
It is not an exaggeration to say that the ability to create "money" out of thin air and trade it
for real-world goods is the foundation of America's global power. If the Fed prints USD to
near-infinity and the USD loses value relative other reserve currencies, the U.S. loses its
exorbitant privilege of trading "money" created out of thin air for real-world goods.
So everyone expecting the Fed to "print" the USD to zero is claiming the Fed is consciously choosing
to lay waste to the foundation of American power--just to boost Big Tech Robber Barons and zombie global
stock markets.
Recall that the Fed is not the Empire, it is the handmaiden of the Empire. The Fed's dual
mandate-- for PR purposes, stable employment and prices--is actually balancing the conflicting
demands of a global and domestic currency--Triffin's Paradox writ large.
The inherent problem with a reserve currency is that it must meet global economic needs and domestic
needs, and these are intrinsically in conflict. America's billionaires and pension funds want the
US stock market to loft higher on the back of a declining USD, but that diminishes the global
purchasing power of the USD--a trend spiraling down to economic ruin.
The Fed's balancing act has run out of runway. It's either destroy American hegemony by
crushing the USD or secure hegemony and let the stock market function as a "market" rather than
as a device to further enrich the top .01%.
(Recall that "nearly half of the new income generated since the global financial crisis of 2008
has gone to the wealthiest one percent of U.S. citizens. The richest three Americans collectively
have more wealth than the poorest 160 million Americans."
The Dangerously Diminishing Returns on Monetary and Fiscal Stimulus)
As for diminishing returns: consider what the Fed "bought" by handing $1 trillion to
financiers, banks and billionaires in 2008-09 and what it "bought" with $3 trillion last March.
The Fed's balance sheet shot up from $925 billion on 9/9/08 to $2.08 trillion on 9/9/09-- an
injection of $1.16 trillion to "save" the global financial system (and the U.S. stock and debt markets)
from complete meltdown.
The Fed continued goosing markets higher, adding another $1 trillion by 2013 (balance sheet $2.96
trillion). So the Fed "bought" a five-year rally in global risk assets--a rally that sent
wealth and income inequality into orbit--for a mere $2 trillion.
Last year the Fed had to print over $3 trillion in three months to "save the markets"
from a reckoning with reality. Take a quick look at the chart below. Notice how the Fed's
"saves" are tracking a near-parabolic curve. So will the next "save" require $5 trillion, or
will it be $7 trillion? And what are the consequences for such insanity on
the U.S. dollar's global hegemony?
So the Fed has a binary choice: preserve America's global hegemony or further enrich the
billionaires. You can't have both. Hegemony requires a currency that's increasing its value
relative to other currencies, not plummeting to near-zero.
If the Fed chooses to further enrich the billionaires and top .01%, then the skyrocketing wealth-income
inequality will unravel the domestic social and political orders. There is no way that will be
a "win" for the Fed, as the resulting backlash against the Fed's stripmining the nation to enrich
the top .01% will have consequences for the Fed as well as the nation.
So the Fed will fail. If it spews endless trillions to further enrich the billionaires it
will destroy the exorbitant privilege of the reserve currency and the global hegemony
that privilege enables. If it preserves global dollar hegemony by not spewing endless trillions,
global stock and debt markets will experience the equivalent of a financial tsunami, earthquake
and hurricane hitting all at the same time....
....
https://www.globalresearch.ca/biden-inaugural-address-exercise-mass-deception/5735027
Biden’s Inaugural Address: An Exercise in Mass Deception
Four years ago on January 20, Trump vowed to transfer power from Washington “and give it back to you, the people (sic).”
Saying while privileged Americans prospered, ordinary ones struggled to get by.
“That all changes starting right here and right now because this moment is your moment. It belongs to you (sic),” he said, adding:
“The forgotten men and women of our country will be forgotten no longer (sic).”
“The American carnage stops right here and stops right now…The oath of office I take today is an oath of allegiance to all Americans (sic).”
We know how Trump’s mass deception turned out.
Time and again, political candidates promise one thing, then deliver something entirely different if elected, notably in the US.
Government of, by, and for all Americans equitably is pure fantasy.
Like most of his predecessors, Trump served privileged interests exclusively at the expense of ordinary people he was indifferent toward.
Will that all change right here, right now under Biden/Harris?
Will the sun henceforth rise in the West and set in the East?
Dissembling is what politicians do. It goes with the territory, especially in the West, the US most of all.
It’s why they can never be trusted. Rare exceptions prove the rule.
Biden built a near-half century political career on a foundation of Big Lies and mass deception.
They’ll surely continue as long as he remains in office.
Believing otherwise is naive and wishful thinking.
What almost never happens in the US surely isn’t what’s coming ahead. Expect the opposite.
Prepare to be betrayed because it’s baked in the cake.
Once a servant of privileged interests and his own exclusively over the general welfare, always one.
Biden is a longstanding “deep state” tool — controlled by higher powers.
That’s what he’s always been all about. The same goes for Harris over a shorter duration.
Otherwise they wouldn’t have been chosen to replace Trump.
They’re reliable, controllable, and vitually certain to make an already bad situation worse on their watch for ordinary people at home and abroad.
That’s the only change I expect ahead — a dark chapter in US history growing darker, dystopia on their watch to deepen.
Harris is president in waiting, a hardline former prosecutor to take over when cognitively impaired Biden can no longer fake it even in sound bites....
....Roots of tyranny already exist in the mythical land of the free and home of the brave.Follow their further sprouting ahead as dark forces controlling Biden/Harris likely snuff out what remains of a free and open society to solidify unchallenged deep state control.
Biden’s tenure began by mandating harmful-to-health face masks that don’t protect in federal buildings and on its lands by executive order.
It “call(s) on governors, public health officials, mayors, business leaders and others to implement masking, physical distancing, and other measures to control Covid-19,” according to the new regime’s seasonal flu (renamed covid) czar Jeff Zients.
Will the above be mandated ahead nationwide — followed perhaps by mandated vaxxing with what risks great harm or worse when taken as directed?
Will the above and mandated vaccine passports for access to public places become part of the new abnormal?
Will dissent against unacceptable Biden/Harris regime policies be criminalized as domestic terrorism?
Will we be cowed into submission to US dark forces for our own good?
Will war on humanity at home and abroad harden under selected, not elected, Biden/Harris — an illegitimate duo now empowered?
What Will Happen to US-Russia Relations?
After attending their inauguration with the capital under unprecedented lockdown and militarization, Russia’s envoy to Washington Anatoly Antonov said the following:
“I would like to believe that a new chapter in the development of the (US) begins today and, of course, that a new chapter in the development of Russian-American relations begins as well,”
Adding, After monitoring Wednesday’s events and public remarks on US television, “I can’t say that we found a lot of positive in the speeches” made by elements of the new Biden administration.
Antonov, other Russian officials, and their counterparts in other nations free from US control know that chances for improved relations between their countries and Washington is virtually nil.
The new adminstration’s geopolitical agenda is sure to be uncompromisingly hardline against all nations unwilling to sacrifice their sovereign rights to a higher power in Washington.
On Tuesday, Russia’s lower house State Duma Speaker Vyacheslav Volodin acknowledged reality in police state America, saying the following:
“Those who participated in unauthorized political actions everywhere were anointed by Washington as fighters for freedom and democracy.”
“When the same thing happen(s) in the (US), (they’re) labelled…domestic terrorists who face 15-20 years in prison.”
“(They’ll) be real political prisoners. Let’s call a spade a spade.”
That’s part of how the US operates at home and abroad — a take no prisoners approach to governing.
Biden/Harris replaced Trump by coup d’etat, likely to enhance swamp rule that’s festered and hardened for decades — the American way’s ugly face.
No government of, by, and for everyone ever existed from inception, no democracy other than a fantasy version wrapped in the American flag to foster the illusion of what doesn’t exist and never did.
The US is run by deep state militarists, corporatists, and other tyrannical elements for their own self-interest at the expense of ordinary people everywhere — to be exploited, not served.
Biden/Harris were chosen to front for the dirty system at a time of imperial USA’s deepening decline en route to history’s dustbin where it belongs.
They’re beholden to dark forces controlling them.
Will martial law be declared ahead on the phony pretext of foreign threats and domestic terrorism to counter?
Will what remains of a free and open society be replaced by full-blown totalitarian rule, enforced by police state harshness?
Make no mistake. Biden/Harris and members of their regime are enemies of ordinary people, hostile to their interests, wanting them exploited, not served.
Along with likely escalated foreign aggression against one or more invented enemies, homeland despotism will likely harden on their watch for our own good we’ll likely be told.
With history in mind in my lifetime since Franklin Roosevelt goaded imperial Japan to attack the US, knew Pearl Harbor was coming but failed to warn its commander to give him the war he wanted, America has been on a downward trajectory toward full-blown despotism.
JFK, RFK and MLK were eliminated for standing in the way of what US dark forces have been pursuing for generations.
Trump was an aberration so had to be denied a second term, brazen fraud the vehicle to elevate Biden/Harris to power.
Big Media-proliferated mind manipulation promotes the official narrative by suppressing hard truths.
Public mind control convinces most people to go along with what harms their health, welfare, safety, and a nation unfit to live in.
A permanent war on humanity rages at home and abroad, Biden/Harris appointed the latest maestros of misery over ordinary Americans.
Their diabolical mission is hidden behind smiling faces, a facade that’s part of mass deception.
They’ll preside over affairs of state extrajudicially like most of their predecessors.
Wreckage they inherited may be shattered beyond repair before passing the baton to what’s likely to be full-blown tyranny under whoever succeeds them — based on what’s been happening post-9/11, greatly escalated last year.
Russian State Duma Speaker Volodin got it right saying:
A nation “which lectures the whole world about the standards of democracy” denies it to its own people and tolerates it nowhere else.
That’s the agenda Biden/Harris inherited, charged with serving the interests of dark forces controlling them.
Forewarned is forearmed. The only solution is popular revolution.
The alternative is ruler/serf USA ahead.
It’s baked in the cake without all-out resistance to reject what no one should accept.
No comments:
Post a Comment