Why do Thieves Stealing Jewelry tie up the Victim? For the same reason Governments enact Lockdowns.
Why do we have such rampant inflation? Why are we all poorer? Lockdowns. The establishment printed trillions in our name to fund their ludicrous policies. The result? All of our money is worthless. The main reason is QE & lockdowns. Not Putin. This is simple and basic high school economics.
A new round of lockdowns are coming soon. Why do I say that?
Everything is breaking while looking eerily similar to 2008's Great Financial Collapse. But this time is much different than the 2008 version.
Firstly, this round will be more financially devastating because the system has more leverage. But the purpose of this article is to discuss the second reason. In 2008 the political class had yet to figure out the power of lockdowns. So it was before the discovery of lockdowns.
Lockdowns are the new way to transfer mega wealth from 99% up to the ruling class. It's especially effective during war, which is the original playbook for stealing wealth.
Precursor for rolling out the next round of lockdowns.
1/ Japan Bond Market. Emergency Yield Curve Control
The Japan money printer goes into overdrive.
BOJ bought the equivalent of $128 billion bonds in December.
A NEW RECORD.
2/ The FED. Overnight reverse repo jumped $300 billion in one day to over $2.5 trillion dollars.
Banks and money market funds are covered under numerous regulations. One of the regulations is that deposits have to be protected by a certain percent of top-tier assets. The most common or in some cases, only top tier asset is short-term treasuries. So in effect, banks and money market funds have to buy short-term treasuries.
In case you haven't noticed, interest rates have gone up dramatically. This is because short-term interest rates are much faster than long-term rates. Therefore the government is issuing long-term treasuries instead of short-term. This causes problems for banks that need short-term treasuries to offset their deposit.
So here we have the Federal Reserve. The Fed has bought up $5.5 trillion in treasuries. Mostly 1-3 year treasuries that banks and money markets can't use to offset deposits because the term is too long. So The Fed came up with the idea of renting their treasuries to the banks and money market funds overnight so regulation wise five-year treasury becomes a one-day treasury. So now banks and money markets can cover their deposits with a tier-one asset. The Fed started jacking interest rates like crazy, so now their reverse repos are paying 4.3%.
Now the government can issue longer-term treasuries and use the Fed to convert those to short-term overnight treasuries to pass regulations.
But The Fed is attempting to sell these treasuries off their books, so this causes a problem if Fed-owned treasuries is less than reverse repo demand. It is just another corner the Fed and the government have painted themselves into with all this endless debt.
3/ The Petrodollar is over. Once Saudi’s joined BRICS that was it. We have constantly been writing since our war with Russia started, and the Biden regime sanctioned Russia, that BRICS had a way around sanctions.
So what was this way around sanctions?
Gold.
Here’s where lockdowns enter the equation.
Global bond markets are collapsing. US Stock market and FED are collapsing. Foreign governments are abandoning the US dollar with record buying gold (the anti-dollar)
Knockout, 1,2,3 combination punches. US is desperate. They are losing control of having world supremacy. Their game of privatizing gains and socializing losses is weakening but they do have the most powerful tool in their toolbox. Lockdowns
What happened last time we had lockdowns?
Workers around the world: lost $3.7 trillion in the pandemic Billionaires around the world: gained $3.9 trillion in the pandemic It's the biggest one-year wealth transfer in history, yet somehow barely anyone is talking about it.
Lockdowns will return and it will be either by these two excuses. A or B. A. Another Virus
When this story below broke I said to myself, this story will get buried and everyone will forget it just like we have all forgotten that US blew up the Nordstream pipeline. The story was that a lab in Boston created a deadly Omicron strain with 80% kill rate.
Then fast forward from a few months later to just two days ago.
B. Climate Emergency. Climate Lockdowns and cars equipped with Kill Switches.
And hidden deep inside Biden’s Inflation Reduction act or infrastructure bill are kill switches equipped in cars. Remember that 2700-page, $1 trillion dollar infrastructure bill that the US government passed back in August? This "infrastructure" bill includes mandating vehicle kill-switches in every car by 2026. Cars sold in the US will be required to automatically and silently record various metrics of driver performance, and then make a decision, absent any human oversight, whether the owner will be allowed to use their own vehicle. The measure goes on to require that the system be "open" to remote access by "authorized" third parties at any time. The passage in the bill was unearthed by former Georgia Representative Bob Barr, writing over at the Daily Caller.
Barr notes correctly that this is a privacy disaster in the making. Not only does it make every vehicle a potential tattletale (possibly reporting minor traffic infractions, like slight speeding or forgetting your seat-belt, to authorities or insurance companies), but tracking that data also makes it possible for bad actors to retrieve it.
Conclusion
Everything is breaking. The US won’t be able to deal with this just like a bully keeps going until he has finally been defeated (A new bully emerges) Instead of The US fixing what is broken which is this sick form of kleptocracy it will double down with lockdowns. Lockdowns transfer wealth to ruling class and could also be used to roll out the Central Bank Digital Currency. What better way to hand out “stimulate payments.”
Download the Federal Reserve App to receive YOUR EMERGENCY PAYMENT
more on kleptocracy-
The structure of the fiat financial system has destroyed the middle class. The oligarchy has siphoned wealth through inflation and taxation. Manipulated interest rates and money printing have grown the wealth gap. And it's bound to get worse. At this point, I'd like to point out that the term mentioned above, "oligarchy," is only partially true. We're suffering through a lethal mix of oligarchy and plutocracy, but we mostly have a kleptocracy.
Kleptocracy differs from plutocracy (ruled by the richest) and oligarchy (headed by a small elite). In a kleptocracy, corrupt politicians enrich themselves secretly outside the rule of law through kickbacks, bribes, and special favors, or they simply direct state funds to themselves and their associates. We reported this natural siphon of taxpayer funds in our substack article on FTX, Ukraine, and the kickbacks to the political class
Addendum, a reader had a great question I wanted to share with everyone.
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