Fedcoin: The coming financial enslavement of the planet

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This is the second in a two-part series on cryptocurrencies and blockchain technology. In the first instalment written in 2018, we looked at the optimistic case for cryptos to enable a new era of peace and prosperity. In this second part, we look at the darker reality of economic tyranny now coming into view.

How would you spend six trillion dollars?

For me, I’d maybe buy a toilet paper factory, hire some Oompa Loompas and ensure the nation can always poo again in peace. Then I’d hire a pro team of pest exterminators to kill every bat on the planet.

There’s only one institution in the world that can get its hands on that much money, pretty much instantly. And in the last few months that organisation, the privately-owned United States Federal Reserve, has spent that amount and more essentially bailing out and buying up large segments of the world economy.

They call it ‘bailouts’. That’s spin. In reality, the US Fed has become the global lender and buyer of last resort. Having created trillions of dollar debt units over the decades and pumped them out at extraordinarily low rates to every nook and cranny of the planet, the Fed is now pointing a firehose of US dollars down from the sky to prop up their debtors.

That’s not an exaggeration. What’s going on in international finance behind the smokescreen of this pandemic is utterly revolutionary. It’s creating a new financial architecture for the world’s economic system. A new world. A new world order.

That’s what they’re calling it, not me. This is from Forbes (emphasis added):

“There is no such thing as a free market anymore,” Deutsche Bank’s global head of foreign exchange research, George Saravelos, wrote in a special report titled: The end of the free market: impact on currencies and beyond.

“In a matter of weeks, policymakers have become a backstop for private-sector credit markets. At the extreme, central banks could become permanent command economy agents administering equity and credit prices, aggressively subduing financial shocks. It would be a bi-polar world of financial repression with high real economy volatility but very low financial volatility. A ‘zombie’ market.”

The Fed’s rapid interest rate cut to zero and its gigantic raft of credit and lending programs easily eclipse the emergency action taken during the 2008 financial crisis.

The Fed moved quicker and hit harder—and investors are scrambling to adjust to the new world order.

Alternative media analysts have been ridiculed for years for saying this was coming. Now it’s here, and there is no getting back to Kansas anymore, Dorothy. You can’t even leave the house.

Many people will still scoff at this argument. I know. “They’re just bailouts! Nothing to see here. Everything will go back to normal once Bill Gates implants me with his identity chip and the Oompa Loompas start cranking out the tp again.”

Not so fast. This is a really big deal. COVID-19 hasn’t caused a global debt implosion and imminent Greater Depression. It has catalysed one. It was the trigger, not the reason.

As I’ve written repeatedly over the years, the debt collapse was inevitable. Anyone who took an afternoon to study how money is created by private banks on behalf of the central bank cartel knew that.

Once Nixon closed the gold window in 1971, all the world’s currencies became supported by the US dollar. This was a break with previous systems which often, but not always, relied upon a commodity such as gold or silver to give them their value.

Well kind of. I’d like to take a brief moment here to take on some of the myths which are spreading like AIDS pneumonia during this economic shock. Here’s a quickfire list of problems with the beliefs put out by goldbuggers such as Peter Schiff, Mike Maloney, Robert Kiyosaki, Doug Casey, Rick Rule etc. Here goes.

If you’ve never bought into the analysis of any Austrian School goldbuggers you can skip the next paragraph.

Gold and silver are not ‘real’ money. There have been plenty of types of currency which were not commodity-backed which worked fine. Shells, spades, knives and even immovable stones have been used as currency throughout history, and even gold and silver coins have carried a higher value than their metal content due to the sovereign who minted them. Confidence in a currency is ultimately an expression of confidence in the authority issuing it, not the magical properties of precious metals. The Quantity of Money Theory of Inflation is also wrong. If printing more currency created inflation, we wouldn’t be experiencing deflation now. Inflation and deflation also have to do with confidence, and hyperinflation events always follow government violation of property rights. They happen when people lose faith in their government. Germany’s famous hyperinflation in the early 1920’s was caused by the nearly-successful 1919 communist revolution, not money printing. The Cantillon Effect is also wrong. Getting money first does not give you a comparative advantage. It’s just not true.

OK, now we’ve got the annoying goldbuggery out of the way, let’s look at the coming financial New World Order.

The Federal Reserve is buying up the world because it’s got what the world needs most right now: US dollars. The world is awash with US dollar-denominated debt, and now that the planet is experiencing a simultaneous margin call and institutions and investors everywhere are liquidating assets to raise cash, the US dollar is massively increasing in value. It’s what everybody everywhere needs right now.

The Fed is even pumping out dollars to bail out other central banks around the world.

As with all crises, decision-makers in the US government are using the fog of war right now to push through changes they could never do usually. One of those changes is that the US Treasury is now using the Federal Reserve in a way that blurs the distinction between the two.

Some analysis are wondering if we’re not seeing the beginning of the Fed and the US Treasury merging. From Bloomberg:

To put it bluntly, the Fed isn’t allowed to do any of this. The central bank is only allowed to purchase or lend against securities that have government guarantee. This includes Treasury securities, agency mortgage-backed securities and the debt issued by Fannie Mae and Freddie Mac. An argument can be made that can also include municipal securities, but nothing in the laundry list above.

So how can they do this? The Fed will finance a special purpose vehicle (SPV) for each acronym to conduct these operations. The Treasury, using the Exchange Stabilization Fund, will make an equity investment in each SPV and be in a “first loss” position. What does this mean? In essence, the Treasury, not the Fed, is buying all these securities and backstopping of loans; the Fed is acting as banker and providing financing. The Fed hired BlackRock Inc. to purchase these securities and handle the administration of the SPVs on behalf of the owner, the Treasury.

In other words, the federal government is nationalizing large swaths of the financial markets. The Fed is providing the money to do it. BlackRock will be doing the trades.

This is epic. Not only is the Federal Reserve buying the world, but it may well be merging with the US government. Should that occur, who rules who, the lender or the borrower? Because the US federal government is about $24 trillion in debt. Is this a repossession?

Did the NYC banking cartel of Goldman Sachs, JPMorgan Chase and others which controls the Federal Reserve just take possession of the largest military machine and most powerful empire in world history?

Maybe we’re getting ahead of ourselves. Maybe.

Where this all comes together around blockchain technology and cryptos, however, is the issue of central bank-controlled digital currencies. When the enormous ‘bailout’ legislation was being debated in the US Congress, the Democrats put forward a proposal to bring in exactly that.

This isn’t coming from Ilhan and her coterie of crazies, however. The Federal Reserve was talking publicly about this since at least 2019.

Calling central bank cryptos ‘digital currencies’ is misleading. This is something entirely different from the digital money we’re used to using every day now. This wouldn’t be a currency at all. It would be a blockchain-based token that recorded every single transaction: who it was between, what it was for, where it occurred and whether it was for a politically approved item.

They wouldn’t be earned in the way money has been for waged workers since the Bronze Age. Instead, it would be deposited directly by the Fed or by the US government into the Fedcoin app you installed on your phone. So long as you’re a good citizen with a respectable social credit score.

Don’t think people would let the government get away with it? Try going for a surf or a road trip right now. It’s easy to control the people if you control their emotions. On the other side of this period of economic pain we’re about to go through, the debt-broken and suddenly unemployed will gladly surrender their liberty in order to get consumerism back.

A Fedcoin would give the Federal Reserve, or perhaps the US government, the ability to control human life in ways that are boggling to the mind. Perhaps it would become a global currency, or perhaps central banks would retain issuing rights under the authority of the Fed. I’m inclined to think we’re going to see a single world cryptocurrency controlled by the US government though, given the likelihood of a global currency crisis in the next few years caused by a strong dollar and what the Rothschild-owned Economist signaled back in 1988.

Whoever they are, the issuing authority of Fedcoins would have powers to control society which Stalin, Mao and Pol Pot could only have dreamed of. George Gammon has given an excellent analysis of the threat this poses. It’s definitely worth a watch.

Fedcoin would create the possibility for an economic reset based upon a centrally-controlled form of money that creates a bastardised form of capitalism based upon political correctness and cronyism rather than merit and honest commerce. It would not only destroy our liberties, it would ensure that anyone who still held onto such antiquated notions becomes destitute in the new Hunger Games economy.

Big Sister would rule with an iron fist in a velvet glove, doling out goodies to her slaves while crushing any opposition. Whether the people behind this agenda released COVID-19 on purpose or just got lucky, they are taking advantage of this crisis to railroad this agenda through while we proles are afraid, disorientated and alienated from each other.

When they roll this out, they’ll pretend they just came up with it. They didn’t. This has been in the works for a very long time. We just didn’t pay attention. We happily kept borrowing, as the TV and the politicians reassured us that the system was there to serve us and debt was risk-free.

We should have known, but we were too comfortable to question. And most of us thought there’s just no way the people in charge could be such supervillains.

Originally published at End Times Herald.