Last November, in an article titled ‘The Economic Crash So Far: A Look At The Real Numbers’, I outlined the reality of statistical fraud by governments and central banks to hide the ongoing economic downturn. The Everything Bubble, perhaps the biggest debt fueled bubble in history, has been propping up the global economy for several years, but began to waver dramatically at the end of 2018, as the Federal Reserve tightened liquidity conditions into economic weakness (just as they did in 1929 and in the early 1930’s as the Great Depression took hold).
In that article, I warned:
“If the global economy is not on the verge of collapse, then why did central banks keep propping it up for the past ten years? And if central banks have been propping up the system, how much longer do you think they can do this? How much longer do you think they want to do it? What if one day they decide to let the entire house of cards tumble? What if such an event actually benefits them?”
An important factor to this discussion is the idea that the central banks are “ignorant” to the damage they do. This claim is everywhere in the alternative media these days, and it is simply wrong. The banking elites are well aware of the damage they do, and often it benefits their bigger agenda of one world centralization. In fact, Jerome Powell openly admitted in the minutes of the October 2012 Fed meeting exactly what would happen if the Fed took actions to tighten cash flows while markets were addicted to stimulus. Then, as soon as he became the head of the central bank, he implemented that exact policy.
Almost nothing in finance and economics happens without being “managed”, or at least deliberately triggered by central banks. Economic crisis events are a form of massive leverage against the public. They are designed to siphon tangible wealth for pennies on the dollar from the middle class while also setting up social crisis conditions which allow the elites to manipulate the population into accepting less freedom and more globalism.
In the past, I have noted that the central banks have clearly been waiting for something or stalling the crash in preparation for a specific window of time. They needed an event that could be used as cover for the crash that they had been engineering. This event could come in many forms: The trade war was a perfect start, along with war tensions with Iran, but there was really no way of telling what the trigger would be. Well, now we know.
The COVID-19 pandemic is a perfect cover event. It is a virus with a strangely long incubation period coupled with being highly transmissible and just deadly enough (3% to 5% death rate) to cause fear within the population. This novel virus is not going to go away for a while; it will most likely stick to the global populace like glue for the rest of the year, and like the Spanish Flu which was active for around two years, the longer it circulates the more deaths accumulate.
But the virus is not the cause of the economic collapse; it is only a prime scapegoat, along with the very slow response times of many governments and the World Health Organization to encourage a shutdown in international travel from hot zones, which allowed the virus to spread unhindered. The collapse was taking place before the pandemic ever became a factor.
We are seeing this clearly now in the Fed repo market situation, which has continued to escalate as corporate beggars demand more and more liquidity that the Fed is either not able or not willing to supply. And by liquidity, I’m talking about tens-of-trillions; I’m talking about TARP level or greater fiat injections. I’m talking about direct purchases of stocks and other assets beyond bonds. The investment world wants the Fed to make it rain cash, and while it seems like that is what the Fed is doing…they are not even close yet.
Of course, the next question is, Will it even matter if the Fed initiated full blown helicopter Weimar-style inflation? The answer is no. If the Fed wanted to stall the crash, they would have introduced such measures over the course of the last year. Instead, they did the bare minimum to make it look like they cared about saving markets, which they do not….