This article is the second in our new campaign, "The Decisive Battle in the War for the Republic, Put the Fed Into Bankruptcy; Create the Third National Bank."
Joe Biden gave a horrendous, painful, two-hour rambling press conference on January 19th, fully demonstrating that he is mentally incapable of holding the presidency. That is why Americans are fleeing the Democratic Party in droves and will not come back to this presidency no matter how many small—polled as popular—pieces of legislation, are offered up before the midterms.
The strategic question to be asked here is the one no one is asking: Was installing a senile man president, to be run by a collective of technocrats dedicated to the globalist green agenda, accompanied by a full-scale domestic surveillance and police state, constantly conditioning the population into affirmation or impotent populist rage, the imperial global elites’ answer to the threat posed by Donald Trump?
Trump, after all, had re-asserted American sovereignty against the globalist financial order, promoted breakthroughs at the frontiers of science such as Project Artemis—to return the United States to the Moon and then explore Mars—sought to end the role of the American military as gendarmes for the world’s financial elites, and was designing to reindustrialize the U.S. economy on a modern infrastructure platform.
At the Fed’s Jackson Hole, Wyoming meeting of financiers in August of 2019, the central bankers were very explicit about what they needed to do and what they intended to do. Led by then Bank of England Governor Mark Carney and Black Rock’s retinue of former Central Banker advisors, they called for a regime change in the world’s financial governance with central bankers taking control of national spending from national governments. This would let the central banks, together with the biggest London, Frankfurt, Tokyo, and Wall Street private banks direct both spending and credit and create new investment schemes as they see fit.
Mark Carney was very explicit about what type of bubble they wanted to create as the mechanism to do this. It would be a green financial bubble, rolling over the $275 trillion bubble created in the wake of the 2008 crash before it crashed yet again, while looting the actual standards of living of the population who, it was posited, would willingly sacrifice in order to “save the planet” from imminent catastrophe.
BlackRock, the other big player at the Fed’s 2019 séance, made its place in the world when the Fed delegated it to run large swaths of the 2008-2009 bailout which decimated the U.S. population while bailing out bankrupt banks all over the world. The Fed has repeatedly used BlackRock for its operations since then, making the firm the biggest financial manager in the world and a central player in the globalist financial cartel. It now has key operatives throughout the Biden Administration keeping Biden and the Democratic Party firmly pinned to policies which feed the emergent green financial bubble.
Nothing if not consistent, BlackRock warns in its economic outlook for 2022, that inflation is necessary in order to make the necessary transition to the zero-carbon economy envisioned by Build Back Better. Significant rate hikes by the Fed, they say, will be economically destructive. In remarks at the Davos World Economic Forum, which concluded on January 21st, the Managing Director of the IMF, Kristalina Georgieva said that Fed rate hikes to control inflation would throw cold water on the world’s recovery from COVID, and China’s Xi Jinping said the same thing, calling for a continuation of the Fed’s stimulus policies.
Lending to the economy by the big four New York Banks, JP Morgan Chase, Citigroup, Bank of America, and Wells Fargo has not grown since 2008, remaining at $3.6 trillion. But the deposits have doubled to $6.3 trillion thanks to reserves created by the Fed’s quantitative easing program. According to their recent statements, this deposit overhang is to be used to privately finance the Green New Deal while shutting off funding through central bank, government, and private finance coordination, to anything but the most primitive sources of energy—wind, solar power, etc.—the energy source for what will be essentially a feudal economy for 90% of the populations in the present advanced sector. Inflation and the devaluation of the dollar benefit this scheme. It is a requirement.
This scheme was already fully underway before COVID provided a further crisis and the opportunity for rebranding the scheme as “Build Back Better.” This rebranding, originating with the World Economic Forum of Davos, became Joe Biden’s campaign slogan and program, signaling this Administration’s complete subservience to the globalist scheme. Rebuilding after COVID provided a much more viable pretext than the myth of imminent catastrophic climate change which was badly flopping.
In the course of Biden’s scripted rant, in which he portrayed himself as a victim of Republican racists, he said he was relying on the Federal Reserve, his new appointments to that body, and his now dead Build Back Better trillion-dollar-social-spending boondoggle to solve the rampaging inflation which is now devouring the incomes of the lower 90 percent of the U.S. population. But Build Back Better, particularly its war on fossil fuels, is a driver of the inflation now feeding the central bankers. Fertilizer, for example, is dependent on natural gas in its production process. Want to discuss inflated food prices? Fertilizer prices are skyrocketing. Think about Biden’s war on natural gas production, which has driven prices through the roof, the foreign sources of other chemical inputs into fertilizer production, and you begin to get the picture.
COVID itself, and the Fed’s stimulus, created the most massive wealth transfer in the nation’s history. While small and medium-sized businesses were wiped out based on being deemed non-essential by government edict, Silicon Valley’s tech firms increased their balance sheets by $3.4 trillion and big box retailers flourished. The Fed’s support of Wall Street has allowed BlackRock and other billionaire ventures to buy huge swaths of land and enter the housing market nationwide, converting single family homes to rental properties and inflating the market generally. They are also busy buying up and speculating on essential commodities and raw materials. The nation’s billionaires increased their numbers from 610 to 745 while increasing their balance sheets by $2.1 trillion—or 70%.
The Biden program claims it will right this inequality by increasing the number of IRS agents and making “billionaires” pay their fair share. The fact that they are demanding to monitor everyone’s bank account for transactions over $600 demonstrates that their actual target is the middle class.
There can be only one response to this: Recognize that the Fed and the financial vultures of Wall Street, Brussels, and London are bankrupt. The Fed is not some “independent” entity. It is, and has been run by its New York branch, which Wall Street banks actually run and own. As Lyndon LaRouche said back in 2008-2009, put the Fed in the basement of what will be the Third National Bank of the United States or similar credit producing entity and put barbed wire around it as we sort out its legitimate debt from the debt of what is a criminal enterprise. The debts of criminal enterprises are void as a matter of public policy.
Take but one recent example: The Fed’s repo loans to six financial institutions in the last quarter of 2019 which remained hidden, until recently, by the Fed. As detailed by Russ and Pam Martens, “62 percent of a cumulative $19.87 trillion in rolled-over repo loans went to just six trading houses: Nomura Securities International ($3.7 trillion); J.P. Morgan Securities ($2.59 trillion); Goldman Sachs ($1.67 trillion); Barclays Capital ($1.48 trillion); Citigroup Global Markets ($1.43 trillion); and Deutsche Bank Securities ($1.39 trillion).”
“Notice,” the Martens’ assert, “that three of the firms listed above are affiliates of foreign banks (Nomura, Japan; Barclays, UK; Deutsche Bank, Germany.) Now imagine the embarrassment to the Fed if it was forced to admit that it had to secretly bail out the affiliates of foreign banks for the second time in 11 years because the derivatives of U.S. banks were still not adequately regulated, after derivatives had played a central role in the worst financial crash in 2008 since the Great Depression.”
These repo loans were issued apparently because Nomura Securities, a Japanese trading house made a bad derivatives bet to which the other Fed customers were counterparties. In making these repo loans, the Fed violated Dodd-Frank, the sinister and weak ploy sold as a substitute for Glass-Steagall. Dodd-Frank stipulates that the Fed can only make such loans in the midst of a systemic liquidity crisis and there was none in this case.
It is this worthless debt, the consolidation of major private trusts—like those in agriculture—setting prices and eliminating competition across the economy while buying up essential commodities, Biden’s sudden and precipitous ban on fossil fuels on behalf of the Globalist-green-Build-Back-Better scam, and the fact that we are totally dependent on just-in-time-supply chains from foreign countries for our goods—since we no longer produce them here—which is now driving hyperinflation and destroying the incomes of the working and middle classes. The financial sector will profit from this inflation and even the modest interest rate rises which the Fed will undertake to “control it.”
Now, shift focus to the demands of the physical economy rather than the fictional speculative bubble which is decimating us. Where are we going to get the 80,000 truckers we are short to move essential goods? Where are we going to get the 124,000 physicians the American Hospital Association says we will be short by in 2033, or the 200,000 nurses per year we need to replace our present nursing cadre? How are we going to replace the young people dead from Fentanyl, which is disproportionately killing them, and how are we going to eradicate the cartels, south of the border, which are presently mass-poisoning our citizens? How do we start making essential goods for this economy here, rather than relying on cheap labor from China and other developing nations—nations which can hold us hostage by simply refusing to continue to produce? What are we going to do with the masses of drug-addicted and mentally ill homeless now living on the streets of our major cities, sometimes, as in recent days, randomly murdering the innocent?
How do we start graduating the number of scientists and engineers needed to generate the physical economic breakthroughs on the frontiers of science, which can create a leap in economic productivity, like the Renaissance? How do we adequately fund and recreate actual scientific research institutions—like the former Bell Labs—not green religious institutions which get their funding by toeing the current party line? How do we create a culture which honors our actual culture and history in which creativity, new discoveries, and advanced technology are the drivers rather than Wall Street’s gambling bets?
For this, Washington’s current uniparty has absolutely no answers. Republicans in Washington preoccupy themselves with scandalizing these problems and avoiding clear solutions. Recently, they, along with their Fox News loyalists, are completely fixated on creating a war with Russia over Ukraine, proving their fidelity to the corrupt Deep State in which America is supposed to be the gendarme for the globalist world financiers in a context in which sleep-walking, in delusion, into nuclear war, is a real possibility.
These are not new problems. They are the fruits of policies which were put into place starting with the destruction of the Bretton Woods system in 1971 and the elites’ implementation of the so-called post-industrial society. Solving any of them requires actual investment into the real economy, creating a modern infrastructure and economic platform with a central focus, always on increasing the productive powers of our labor force at a standard of living which allows for family formation and family-based child development. And, as you begin to think this through, you will realize that there is no way this investment will be done by the Fed or Wall Street. They are simply a different species or type: predators, not creators or producers. Continuing to allow the existence of their bubble, continuing to allow the continuing existence of the central banking system feeding off of and looting the real economy, will destroy all of us.
This post is part of campaign which will literally determine whether the Republic survives or not, something which will become clear to you as we progress. Central banking and the broad economic and technological progress worthy of human beings are antithetical concepts. As we discuss how we rebuild and revolutionize our economy we invite your thinking and participation. We’re looking for the thinkers among scientists, engineers, farmers, entrepreneurs, machinists, doctors, nurses, cops, firemen, educators, state legislators and development officers, companies engaged in infrastructure and manufacturing, young people, --all of those who think of themselves or aspire to be producers in our society-- to help us fill out this perspective.