Pseudopandemic: A Book Review: Part Seven
PART SEVEN: IT’S ALL ABOUT THE MONEY AND FIXING THE BROKEN FINANCIAL SYSTEM
- Chapter 25: Money for Nothing; Chapter 26: Private Wealth Transfer;
Summary: An analysis of the global financial system and its current state of ill-health is always important in exploring underlying motives in any possible exploitation of the pandemic. It is important to know who the main players are who control the strategies and narrative of the global financial order and in this case how it is connected to Covid-19.
Chapter 25 is titled Money for Nothing. At this point in the book, after having dived deeply into the motivations, planning and implementation of the pseudopandemic, Davis now arrives at the gold seam in the mine of conspiracy reality!! “It’s about the money, stupid!!” Many people have been saying now for the last 12 years that the system is broken. The foundations of the global financial system, backed by fiat currencies, the dollar’s position as the global reserve currency and being the oil dollar, backed by the most powerful military in the world, is most likely coming to an end. Not today or tomorrow but it is happening. So, what happens now? Davis makes the play that the game is about the control and moneytization of all the world’s natural resources, including us. And he goes further, in implying that for the world’s elite, most of us are now becoming expedient to the future of the world. The plan, therefore, is to get rid of a lot us, as we simply clutter the planet, devour its resources and leave a bloody mess behind us. Best be done with it and tidy the ship by allowing millions to die. This is rather an extreme analysis, to be sure, and Davis has previously explored the apparent logic behind this in other chapters. Is it really true though?
Davis describes these powerful elites who control most of what happens in the global banking system as the parasite class. Today, more than ever, the global financial system is incredibly connected. The word “web” doesn’t do it justice but through this web of interconnectedness, nearly every country and its political classes are controlled through debt financing, the role of their Central Banks and through international organizations such as the International Monetary Fund (IMF), World Bank, UN organizations and then also the huge investment companies like BlackRock and Vanguard, whose wealth and all their investments is greater than the GDP or nearly all countries on the planet. The control is pervasive. Davis then gives an overview of the current global financial system, the relationship between central banks, the Bank of International Settlement in Basle, Switzerland, (BIS) which is the Central Bank for the Central banks, and then the commercial banks in every country and their relationship to the people. He describes the rigged system that always puts all debt firmly back in the hands of the people, while all the profit and the manufacture of money itself is in the hands of those who own the banks. As has always been the case, the average person is a form of debt slave. We think we borrow actual money. But that money didn’t exist till we borrowed it. We are borrowing “fairy dust” and the only reality it has is what we give to it. Davis describes how the whole construct of the modern banking system is based on a rigged system, designed to benefit the banking system and their shareholders and now being planned to be “reset” in order to create a new centralized banking system. The simple fact is, according to many, many financial advisors, the current system is broken. The global financial crisis in 2008 was a precursor to what may happen soon. Davis and others could still be wrong and maybe it won’t be so dramatic but the clouds are gathering.
Chapter 26, Private Wealth Transfer, explores further how the elites in banking and industry plan to ensure that they will benefit from any serious financial restructuring. He begins by describing how in the UK the recent pay rise of 1% for nurses was actually lower than the current base rate of 1.5% which relates to a .5% pay cut as the value of their wage will be able to purchase 1.5% less. He describes the difference between “nominal wage” and “real wage”, and that our real wages in the last years have declined. In other words, your average British worker is earning less money every year. At the same time, the profits of the largest companies have only got greater, and much more so since Covid-19 hit our shores.
Davis explains the process of debt monetization in the USA by the Federal Reserve, through buying a type of security called Exchange Traded Funds (ETFSs), almost half of which were in the portfolio of BlackRock. Blackrock is one of the largest investment companies in the world, and as Davis describes, the US Fed Reserve outsourced its debt buying programmes to them. Therefore, in a nutshell, US taxpayers are funding BlackRocks’s profits. Until The Fed Reserve bought these debt programmes, the money didn’t exist. Now it does and it’s in the coffers of BlackRock that will get their return on the debt. The US taxpayer will ultimately hold the actual debt. It gets complicated and messy and for most of us it’s a bit hard to comprehend the complexity of a financial system that has nothing to do with how we balance our household accounts and ensure we can at least keep ourselves in the black and if we have debt, like a mortgage or even rent, that we have enough ready capital to keep the payments going. In the ponzi scheme of international finance, those concerns are readily forgotten. For the Federal Reserve, the Bank of England or the European Central Bank, all it has to do is press a button if their governments come begging for yet more money. For the governments, it is better to do that and keep the ship afloat and think about the debt accumulation further down the road.
He describes the impact of inflation for ordinary people and how inflation is in fact a form of stealth taxation. He quotes John Maynard Keynes in his criticism of the Treaty of Versailles in 1919. Keynes said: "By a continuing process of inflation, Governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some . . . There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose."
While officially, the rate of inflation in most Western countries is about 2%, it is higher than this as it gets hidden by dodgy accounting. (As of November 2021, much of the world is heading to the cliff of super inflation, where the cost of living is anything from 10-100% more than it was before). The thing to measure is simply how much we can buy with a fixed amount of money and how hard we have to work to get our wages. In this measure, many, many people are worse off and poorer than they have been for many years. In terms of the process of debt monetization, the profits go to the big banks, central banks and big investors. The governments don’t ultimately benefit financially but they pass on the debt to the people and the government is at least off the hook for a while. The key thing to understand is that the Central Banks are private companies. The Bank of England (BoE) is in theory a public company, but as Davis describes, the shareholders do not hold a controlling influence over the bank’s policies. The Court of Directors do that. Shareholders profit but the policies are established by the Directors, who are deeply connected to many other banking, investment and other core influencers. Davis makes it clear that the idea of the BoE being owned by the government is not true. They serve themselves first. The BoE was formally nationalized in 1946, ostensibly to put the bank in public hands. However, what happened is that it was taxpayers’s money that was used to buy bonds (gilt edged securities) to pay off private shareholders. From that time on, the shareholders actually had no control over the bank. All decisions are made by the Court of Directors. The original shareholders made a nice profit, curtesy of the British tax payers. The British tax payer, now shareholder, has no say. Davis further quotes the CEO of Goldman Sachs in Germany in 2010 as saying; "Banks do not have an obligation to promote the public good." The Bank of England stated in 2019: "The Court of Directors manages the affairs of the Bank as a corporation, while specific policy responsibilities are reserved to the policy committees." Is this clear?
Those who are involved in the BoE’s policies and the loans made to the UK government are obviously interested in the outcomes of what that money is going to be used for. In that way, they can influence the very policies and causes that the government needs the money for. The connections and interests of private financial organizations are deeply embedded in what the Court of Directors decides what is good for themselves and the British economy. Politicians and the people don’t get much say.
It is similar in the USA. As Davis describes, with the Federal Reserve. The following quotes reflect the somewhat ambiguous description of the role of the Federal Reserve, but as Davis makes clear, it is fundamentally a private organization and not a public one. The following extract shows clearly the significance of this clarification and the impact it has had on the global economic order.
“In reference to the US Federal Reserve bank (the Fed) K&W state:
“…the legal status of the Fed is unusual: It is not exactly part of the U.S. government, but it is not really a private institution either.”
This is certainly unusual. Terms like "not exactly" and "not really" seem incongruous in a supposedly definitive text book. K&W clarify that the Fed’s board of directors are, “from the local banking and business community.” They later qualify this statement by saying:
“…the effect of this complex structure is to create an institution that is ultimately accountable to the voting public, because the Board of Governors is chosen by the president and confirmed by the Senate.”
This is highly misleading and it is not a complex situation. Two thirds of the Fed’s board of directors are selected by privately owned commercial banks and the other third, represented by the Board of Governors, are chosen by the Senate. Among the six governors, three are former investment bankers, one a former commercial banker, one a global financial asset management consultant and another a serving member of the Council on Foreign Relations.
The truth is the Fed, like the BoE and nearly all other central banks, is run as a private corporation [23https://archive.is/rwjiD">as follows [24https://web.archive.org/web/20210607172234/https:/www.cnbc.com/2021/05/25/feds-daly-says-the-economy-is-strong-but-its-way-too-early-to-tighten-policy.html">nothing to worry about [29https://web.archive.org/web/20210608021752/https:/www.cnbc.com/2021/06/07/deutsche-bank-warns-of-global-time-bomb-coming-due-to-rising-inflation.html">a "time bomb." :
"It may take a year longer until 2023 but inflation will re-emerge.. While it is admirable that.. the Fed’s priorities are shifting towards social goals, neglecting inflation leaves global economies sitting on a time bomb.. The effects could be devastating, particularly for the most vulnerable in society.”
It is perhaps a good time to prepare for the worst!