“Speculation raged in the wake of this abundant cheap capital, much as a global casino would be abuzz if everyone gambled using someone else’s money.”
~ Noami Prins, Collusion: How Central Bankers Rigged The World
Rather unintentionally, I’ve recently experienced a convergence of books having to do with the Federal Reserve, the banking cartel, and the recent economic collapses. I wasn’t looking for these books or researching the topic(s), it just so happens that during my usual reading—both books and online—I came across them here and there, and ordered them either from Amazon or the library, along with many others, as is my habit: buying or borrowing more books than I could possibly read…
But coincidentally, these four happened to arrive at approximately the same time, and as a result, they lured me down a rabbit hole. The books are:
- Collusion: How Central Bankers Rigged The World by Nomi Prins
- FAKE: Fake Money, Fake Teachers, Fake Assets: How Lies Are Making the Poor and Middle Class Poorer by Robert Kiyosaki
- GRUNCH* of Giants by R. Buckminster Fuller (*GRoss UNiverse Cash Heist)
- The Creature From Jekyll Island: A Second Look at the Federal Reserve, by G. Edward GriffiN
Now, I’ve written before of the coming economic crash, but it’s usually been from the standpoint of the government meddling in the economy and creating massive bubbles, and the Federal Reserve printing trillions in bogus money, and the multi-trillion-dollar (and growing) annual federal budget, all of which are unsustainable.
But now, for the first time, I’m looking at the problem from the standpoint of the banking cartel. And I’m even more shocked than I was when I learned the truth about the Federal Reserve many years ago. For example,
For instance, read the following excerpt from the introduction to Collusion: by Naomi Prins:
“[The Glass-Steagall Act, or Banking Act of 1933] was repealed in 1999 under President Clinton. As a result, banks went on a buying spree. The larger ones gobbled up the smaller ones. Along the way, their size and loose regulations gave them the confidence in impetus to engage in riskier practices. Ultimately, they became so big and complex that they could create toxic assets and provide financing to their customers to buy them, all at once.
That’s how the subprime mortgage problem became a decade long financial crisis that required multiple central banks to contain it. Big banks could buy up mortgages, turn them into more complex securities, and either sell them to global customers, including pension funds, localities, and insurance companies, or lend substantive money to investment banks and hedge funds and engaged in trading these securities. the Fed allowed all this to happen.
Massive leveraging (or betting with huge sums of borrowed money) within the securities those big banks created and sold exacerbated the risk to which they exposed the world. Eight years after the crisis began, the big six US banks— J.P. Morgan Chase, Citigroup, Wells Fargo, Bank of America, Goldman Sachs, and Morgan Stanley — collectively held 43% more deposits, 84% more assets, and triple the amount of cash they held before. The Fed has allowed the biggest banks on Wall Street to essentially double the risk that devastated the system in 2008.
But in the banks’ moment of peril, the Fed unleashed a global policy of injecting fabricated money into the worldwide financial system. This flood of cheap money resulted in the subsequent issuance of trillions of dollars of debt, pushing the global level of debt to $325 trillion, more than three times global GDP. By mid 2017, the total assets held by the G3 Central banks— the US Fed, the European Central Bank (ECB), and the Bank of Japan (BOJ)— through conjured money QE programs had hit more than $13.5 trillion. The figure was equivalent to 17% of currency-adjusted global GDP.
To garner support for their multi-trillion-dollar QE strategies, the G3 central bank leaders peddled the notion that they were helping the general economy. That couldn’t have been further from the truth. There was no direct channel, no law, no requirement today for the feds cheap money into helping real people. This was because borrowing and subsequent investing in the real economy required funds from private banks, and not from central banks directly. That’s how the monetary system was set up. In private banks for under no obligation to do anything with this cheap money they didn’t want to do. There was no direct channel, no law, no requirement today for the feds cheap money into helping real people. This was because borrowing and subsequent investing in the real economy required funds from private banks, and not from central banks directly. That’s how the monetary system was set up. And private banks for under no obligation to do anything with this cheap money they didn’t want to do.
Central bank money crafters realized early on that simply adjusting benchmark interest rates in their countries was no longer effective without quantitative easing. They had to wax conventional with monetary policy. And then they had to collude to spread their programs globally. They concocted and plowed cash into their respective banking systems.
Specifically, the largest private banks, including J.P. Morgan Chase, Deutsche Bank, and HSBC, that inhaled this cheap money were not required to increase their lending to the Main Street economy as a condition of the availability of that money. Instead, the banks hoarded the cash. US banks colluded with the Fed to get that cash by stashing their bonds as “excess reserves” (more reserves for emergencies than regulations required) on the Fed’s books. And, because of the Emergency Economic Stabilization Act of 2008, they received 0.25% interest per year from the Fed on those reserves, too. Wall Street used its easy access to cheap money to increase speculation in derivatives and other complex securities. They used it to buy back their own shares, thus effectively manipulating their own stock—in broad daylight and with explicit approval from the Fed. In turn these banks dialed back their lending to small and midsize businesses, which hampered their growth potential.
The danger with having a system rely on so much conjured capital is that when central bankers stop manifesting it, it could go into shock; markets could plunge, credit seize, and a new crisis emerge. That’s why central banks are walking the tightrope between altering their policies and doing nothing to alter them, thereby continuing them by default, with no exit plan.”
Now, Collusion was published in 2018, meaning the writing & research was done somewhat earlier, probably a few years prior to publication; but what about now? Where are we today? Well, in his recent book FAKE, written in 2018 & 2019 and just published in April of this year (2019), Robert Kiyosaki reveals some more current numbers, beginning with this graph showing the history of the Dow Jones Industrial Average, from 1895 to 2015:
He then elaborates:
“On the DOW chart, the giant crash of 1929 is highlighted for reason. If you step back and look at the 1929 crash, and then compare that crashe to the “dotcom crash” of 2000, and the “subprime crash” 2008, you get a better perspective on why Fuller wrote GRUNCH* of Giants, why I wrote Rich Dad Poor Dad, and why Steven Brill wrote “How My Generation Broke America” [or, Tailspin: The People and Forces Behind America’s Fifty-Year Fall—and Those Fighting to Reverse It].
I’m repeating Brill’s statements, yet again, because it is important:
“The elites created exotic, and risky, financial instruments, including derivatives and credit default swaps, that produced sugar highs of immediate profits but separated those taking the risks from those who would bear the consequences.”
The financial booms and busts the the world has been experiencing have been caused by trillions of dollars in fake money being pumped into the system by the elites.
Did the elites fix the problem? Of course not. Why fix the problem when the problem makes them rich? Why change? Why do anything differently? Life is good — for the elites.
Into thousand eight, there were almost $700 trillion dollars in derivatives.Into thousand eight, there were almost $700 trillion in derivatives.
In 2018, the high-end estimate on derivatives was $1.2 quadrillion.
That’s right. The elites made the problem bigger, almost twice as big. As I write in 2019, a quadrillion-dollar disaster is waiting to happen.”
Kiyosaki goes on to itemize, step-by-step, what caused the crash of 2008:
- Subprime borrowers borrowed money to buy a house they couldn’t afford
- Banks were happy to issue the subprime loans
- Banks then sold the mortgages to investment banks
- The investment banks then packaged thousands of these subprime loans, called them mortgage-backed securities, or MBS, a financial derivative, and sold them to governments, investment funds, pension plans, and other gullible people
- To give all parties a sense of security, these elites bought insurance policies, known as credit default swaps or CDS
- Everyone was getting rich, collecting massive fees on all this trading
- When the subprime borrowers stopped paying their mortgages, the derivatives went off, which is exactly why Warren Buffett famously called derivatives in 2002: “financial weapons of mass destruction.”
“Nobody went to jail. Everyone who made money—from real estate brokers to morgtage brokers, bankers, investment bankers, and Wall Street—kept the money, [while] millions lost their jobs, their homes, their savings, and their future.”
So there you have it, folks. The banks are gambling with your deposits—bank deposits, retirement funds, insurance funds, you name it—and pocketing the winnings as they inflate the mother of all derivatives bubbles—which, when it bursts, will cause a global economic collapse the likes of which we’ve never before witnessed. It will make the dot.com crash of 2000 and the subprime crash of 2007 – 2008 look like a walk in the park—and guess who’ll pay the price?
Yep, you got it…not them, but all of us.
And if all this weren’t bad enough, the central banks have not only surpassed the power and control of the world’s governments, but now they’re planning to take control of the world’s corporations, too—with Bank of England head and Chair of the Bank of International Settlement’s Financial Stability Board Mark Carney recently announcing their “Central Banker’s Climate Compact” at the UN Climate Summit in NY, and stating that firms that cooperate and do their bidding “will be rewarded handsomely,” while “those that don’t will cease to exist”.
Wow…now that’s one helluva threat…
In summary, I thought I’d include a Facebook post I wrote on the subject prior to finishing this article, as a sort of condensed version of the above information:
I’m working on a more substantial article with references, sources, data, etc.—but I think it’s important to get this info out there as quickly as possible, so meantime, here’s the gist:
In 1999, under Clinton, the Glass-Steagall Act (aka Banking Act) of 1933, was repealed. The depression-era legislation made it illegal for banks and financial institutions to effectively “gamble” with their depositor’s money.
So then, they were off to the races, betting the people’s money in a gigantic casino, and creating fake assets such as mortgage-backed securities and derivatives and selling them on the global market (and worse, also loaning people the money to buy them!)
In 2007/2008, the $700 trillion (yes, with a T) derivatives bubble burst—and nearly took the entire global financial system down. Central banks around the world had to pump trillions of printed money into the system (cartel) to salvage it. Fake money, of course, even further devaluing the people’s currencies.
But another thing also happened: many governments, and central banks, made moves away from the US, the Fed, and the dollar, tired of their reckless policies and strong-arming governments and central banks around the world to cooperate, to do their bidding or risk sanctions or blocked access to the global financial system led by the Federal Reserve.
Even Japan. Though they remain aligned with the US, they began back-door deals with both China and Russia, creating an out if/when the time comes. And the BRICS nations, and many other developing economies, have fled to China for safe haven from the US’s reckless policies and authoritarian abuse of their financial hegemony.
And don’t forget: China has been buying huge amounts of gold, much of it under the table, and it’s rumored they plan to back their renminbi.
But nothing changed as far as legislation or regulation of the world’s biggest banks, and as of 2018 the derivatives bubble had been re-inflated to $1.2 quadrillion—nearly twice the $700 trillion of the 2007/2008 crash—and growing.
Thus far, I’ve been unable to find a current estimate for the global derivatives bubble, but it’s sure to be much bigger now, at least twice what it was before the last crash.
And, economic indicators have now all surpassed those proceeding both the dotcom crash and the 07/08 crash. (It’s my personal speculation that a false sense of confidence in the economy prompted by Trump might be why it hasn’t yet crashed).
I’ve much more research to do, but here’s my initial speculation: when the current $1.2+ quadrillion derivatives bubble bursts, not only is it likely that the entire global financial system will collapse, but the world will then move away from the US dollar, and the dollar will lose its much-abused world reserve currency status, thus prompting nations to dump their trillions in dollar holdings, prompting even further hyperinflation, and the dollar will collapse.
That’s just speculation, of course. As I said, I’ve much research in process. But it only makes sense, based on what I’ve learned thus far.
My only advice is to get out of FRNs, out of the stock market (also a financial bubble), and into tangible assets, precious metals, and perhaps even crypto.
In closing, I’d like to add that I’m currently reading GRUNCH* of Giants by R. Buckminster Fuller, which details how all this was originally set up and secured by the corporate giants long ago (synopsis: “Buckminster Fuller takes on the gigantic corporate megaliths that exert increasing control over every aspect of daily life. In the form of a modern allegory, he traces the evolution of these multinational giants from the post-World War II military-industrial complex to the current army of abstract legal entities known as the corporate world.”), and upon finishing it, plan to follow up with The Creature From Jekyll Island: A Second Look at the Federal Reserve, by G. Edward Griffin, to better understand how the transition took place, from the original government/industrial complex to today’s government/banking complex; and when the time comes, I plan to write a more extensive article about this subject. So stay tuned…there’s more to come!
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