About a year ago in a Private Blog post on Ask-Socrates.com Martin Armstrong let it slip that the real plan of The Davos Crowd with the Great Reset was to replace the traditional banking system with the central banks.
I’ve talked about this obliquely in previous posts noting that Modern Monetary Theory (MMT) doesn’t require the money center banks to be the buyers-of-last-resort of whatever debt the U.S. Treasury Dept. auctions up. That’s the most important role they serve in keeping the system afloat.
They provide the fiction that there’s never a failed U.S. Treasury auction even if they immediately turn around and flip those securities right back to the Fed and get dollars. Since the 2008 Great Recession these same banks have sterilized most of that money, further building the Ponzi pyramid, by holding these dollars as ‘excess reserves’ with the Fed who then pays the IOER rate – Interest On Excess Reserves.
Now that this has become a chronic problem, the Fed no longer reports this directly.
For all of the Bernanke and Yellen years that rate was 0.25%. Today it’s just another tool Jerome Powell uses to confuse money markets about the health of the banking system.
Who’s Afraid of MMT?
But, back to Armstrong’s revelation. It sounds a little bit loony tunes, that the banksters would want to get ride of themselves, because so many of us in the ‘alt-finance’ space see them as two heads of the same hydra. And in many ways they are. The banks and the central banks work together to defraud investors and debase their currencies to buy favors and advantages in the market they could never earn in an honest market.
This, not capitalism, is the source of the ever-expanding wealth inequality leftists bang on about all day.
The dollar, euro, yen, pound, etc. are all, in effect backed up not by the full faith and credit of the U.S. government’s ability to pay. That’s the bedtime story they tell us to go to sleep. But really they are backed by the U.S. military’s ability to project power around the world and at home.
The dollar is ultimately a Proof-of-Guns (PoG) currency. The central banks digital currencies (CBDC) that are on the drawing board are the ultimate version of PoG. The problem for them now is that the U.S. military is looking less and less formidable in an increasingly multi-polar world and an arms race it can’t win thanks to debt servicing eating up the productive capital the country generates.
One of the biggest problems in analyzing what’s happening is the tendency to fall back into 2-dimensional thinking, us v. them, black v. white, government v. people. And I fully understand that two-dimensional thinking is a very human trait, especially in a world of folks and a society that is what Ian McGilchrist would call “Left Brain Possessed.”
But the world isn’t two dimensional. We don’t live in screens nor do we assess data across only one dimension. Data is multi-facted as are cabals of people in power. I could go on a rant about the limitations (and misapplication) of the Scientific Method’s variable isolation and it’s deleterious effects on our thinking, but I already did that.
In short, there are also factions within both the Banking Cartel and the Davos Crowd and they compete for control over the policies. There are at least six factions that vie for their piece of the pie. And Klaus Schwab at the World Economic Forum has bribed all of them to sign up for the Great Reset.
They may be in cahoots at times, like to get rid of Donald Trump or today to fight Bitcoin and cryptocurrencies, but they all have different agendas. Those agendas are reassessed in real time by them, just like everyone else does. And as such, two-dimensional thinking fails to capture the nuance of what’s happening.
Now, the banks are going along with the Great Reset trying to remake the world because the world turned against them in 2008-09. This was their bribe so they can survive.
They do this to rebrand themselves within the new MMT regime run by the central banks. But, are they really needed when CBDCs can deposit money directly into people’s accounts with the Fed? Why do we need traditional bank accounts when the old dollars will no longer exist?…