The global reset scam
This article takes a tilt at increasing speculation about statist global resets, and why plans such as those promoted by the World Economic Forum will fail. Central bank digital currencies will simply run out of time.
Instead, the collapse of unbacked fiat currencies will end all supra-national government solutions to their policy failures. Already, there is mounting evidence of money beginning to flee bank accounts into stocks, commodities and even bitcoin. This is an early warning of a rapidly developing monetary collapse.
Moreover, nothing can now stop the collapse of fiat currencies, and with it schemes to control humanity for the convenience and ambitions of government planners. There can only be one statist solution and that is to mobilise gold reserves to back and save their currencies, which in order to succeed will have to be fully convertible into circulating gold coinage. It will also require the role of governments to be reset into a non-welfare, non-interventionist minimalist role, which can only be achieved after a complete collapse of the current fiat-financed system.
Anything less will fail.
The Deep State and The Blob fuel conspiracy theories
Increasingly, people are beginning to realise that their world is undergoing a period of rapid change, with the future of fiat money now uncertain. For most, it is too difficult to even contemplate. But growing uncertainties are driving wild speculation about what those in authority now have in store for the human race in the form of a global reset. It is a time for conspiracy theorists, aided and abetted by our politicians and central bankers who are being increasingly evasive, because events are spiralling out of their control.
At the time of writing, we do not know the outcome of the current presidential election, but enough doubt has been thrown on the validity of the voting process to implicate unknown parties in managing the outcome. It can never be proved, but for increasing numbers of sceptics it looks like a Deep State operation. It is therefore hardly surprising that conspiracies abound.
The World Economic Forum
The most prominent of these conspiracies has hit the headlines in recent weeks. Its ambition is to take the lead in resetting the world by dismantling the capitalist system in favour of a greater technocratic rule — a fourth industrial revolution no less, even planting microchips in humans to read their brains and control them. The leader is one Klaus Schwab, whose World Economic Forum runs the annual Davos bunfight.
As leader of the Davos forum, Schwab probably sees himself as the coordinator of world government. If so, at 82 years old he is probably getting impatient about the progress towards his personal vision of ultimate power. The covid chaos and the success of his climate change agenda must be encouraging him to think he is very close to a breakthrough. Alternatively, we might consider Schwab as a latter-day Charles Fourier (1772—1837), the utopian socialist philosopher, whose forgotten ideals were only marginally more narcissistic and bizarre than Schwab’s.
While the great and the not so good love the annual Davos party as a networking venue for the politics industry, when it comes to transferring real power to Schwab, it’s a no-no. The only time a politician transfers power is when he is deposed by his or her electorate, colleagues, or the military. And history is littered with utopians, like Schwab, grasping for power over their fellow men. In addition to Charles Fourier, we can include Georg Hegel (1770—1831) and Auguste Comte (1798—1857), as well, of course, as Karl Marx. As thinkers or philosophers, they were all influential in their day and some of their ideas persist in the naïve.
So, while increasing numbers of well-informed people are beginning to sense the end of the current world order, to assume that this will hasten the WEF’s grab for world domination by influencing events is a mistake. All our deep states, blobs and their branches, particularly central banks, will want to hold onto and enhance their executive power with the political class increasingly cast as cover. The planners at national level are not going to submit to Mr Schwab’s plans for world domination. Instead, international relations involve mutual cooperation to secure purely domestic objectives, something President Trump was in the process of destroying. From the Deep State’s point of view, perhaps that’s why he had to be deposed in favour of Biden, who is a long-serving compliant figure.
Central bank digital currencies (CBDCs)
There can be little doubt that central banks wish to increase their control over money and how it is used, cutting out the obstacle of commercial banks who produce most of the money in circulation through the expansion of bank credit. From a statist point of view, commercial banking is a dinosaur, an outdated remnant of free markets, perpetuating needless systemic risk and superseded by technology. Branch networks will disappear with cash, changing relationships between banks and the general public for ever.
A future government statement might be issued on the following lines:
This would be a planners’ heaven. Furthermore, CBDC money can be withheld or frozen for anyone suspected of crimes and tax evasion, starving them into confessions of guilt. The justification is always that it is in the national interest to ensure that financial and tax crimes are eliminated — something commercial banks have singularly failed to do. Overseas payments can be routed through other CBDCs, giving the central banking network control over world trade. Just imagine foreign trade being conducted through a grander version of the Eurozone’s TARGET2 settlement system!
Worried yet? In the advanced economies Covid-19 has nearly eliminated cash, which doubtless is intended to be replaced entirely by CBDCs. The end of cash and bank deposits will allow the central bank to cap the amount of cash anyone can hold, and also ensure that everyone is paid a “living wage”. Already flagged, another intention is to eliminate the burden of interest rates and by controlling where money supply is expanded, manage the economy.
It is commonly assumed that those in charge of us know what they are doing — they don’t. They have become trapped at a socialist endpoint and are doubling down in their efforts towards greater socialism. But their dreams of future control are mere escapism. Individuals will lose yet more personal freedom, but ultimately the state cannot conquer human nature and the will of individuals to do what they want. The Soviets attempted it and failed, despite killing and starving many millions.
Central to the collapse of any state-directed reset will be the loss of faith in fiat currencies, and particularly that of the world’s reserve currency, the US dollar. This remains the case irrespective of whether circulating currency is in cash, bank deposits, or CBDCs. Indeed, the collapse could be hastened by CBDCs, because the intention is to increase the pace of injection of new money into the economy if it is required (it always is), and to impose deeper negative interest rates, which cannot be easily achieved under the current monetary system.
If these statist intentions are allowed to prevail, along with other agendas such as the elimination of cheap and effective fossil-based energy, the outlook for humanity is exceedingly grim. Like communism, the global reset into which the western world is drifting will destroy society. Those who believe in liberal values in the original sense of the term — not the modern socialist connotation — will find themselves welcoming the destruction of the current system before it is evolved any further.
The course of a currency collapse
The end of fiat currencies is likely to come sooner than later, from the consequences of today’s massive money-printing, particularly of dollars. Already, US government spending is financed substantially more by currency debasement than taxes, a condition that will almost certainly continue to deteriorate rapidly in the coming months. Furthermore, the global banking system, which is extremely thinly capitalised, faces a tsunami of bad debts which can only lead to a systemic failure — most likely in the Eurozone initially, but threatening all other jurisdictions through counterparty risks. It is coming to a head and is likely to happen soon, possibly triggered by the second covid wave.
The up-arrow at the bottom-right of the chart shows that the downward momentum for the bond yield has reversed, forming a golden cross; that is to say the yield is above its two commonly followed moving averages which in turn are forming a cross with the 55-day moving average rising above the 200-day moving average, a strong indicator of a major turning point and of higher bond yields to come. The upward turn of bond yields is to be viewed in the context of the dollar’s trade weighted index, which is shown in Figure 2.
Currently standing at 92.40, if the dollar’s TWI breaks below 91.75 (the low on 1 September) it is likely to head significantly lower. With foreign holdings of dollars and dollar denominated financial securities totalling almost $27 trillion, the chances are that dumping of the dollar on the foreign exchanges will increase rapidly. That being the case, the Fed will not only be funding the unprecedentedly high (for peacetime) budget deficit but will have to absorb foreign sales of US Treasuries and dollars in order to keep the cost of government funding suppressed.
Evidence is mounting that it cannot be done. And with the end of the suppression of interest rates comes the collapse of accumulated malinvestments, of government finances, and of the currency itself.
First the ashes, then, hopefully the phoenix
Elected in 1929, Hoover was the first US President who thought he could improve on the capitalist system of markets reforming themselves, and the results were a disaster. He was thrown out of office and replaced with another interventionist, Roosevelt, and the supremacy of the US Government over markets reforming themselves became established. The situation today is the logical destination of the fallacy that governments can run the economy.
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