Nuclear Debt Theft, Nuclear Monetary Supply, and Nicki Minaj, Part 2
The Monetary Wars Part IX
"I can rap in a London accent, make weird faces, wear spandex, wigs, and black lipstick. I can be more creative than the average male rapper." -Nicki Minaj
Wait until she finds out the cost of the Federal Reserve Bank's just putting on its face every morning.
Apologies to anyone at home sitting there for all these weeks wondering, "Will there ever be a Part 2"?
Source: Nicki Minaj's Twitter
Nicki, you're spandexedly weird. But I'm going to explain how those suits at the Fed get weirder. Freaky weird. Don't let it get you down like negative interest rates.
I'm very glad to see that Part 1 didn't scare you off the ride, yet. We climbed a big hill, drank some scotch, and now the loop-de-loop approaches. Be bold. Pour another drink. The big ice cube stays in the glass—watch!
You said this is getting weirder? Like tripping balls on ayahuasca with Joe Rogan and Nicki Minaj weird, right?
I wouldn't know. Free money is already one helluva hallucinogen. Just let me get this story started. We're somewhere in the rising tension/conflict part of the story.
Attribution: UfofVincent, CC BY-SA 4.0 <https://creativecommons.org/licenses/by-sa/4.0>, via Wikimedia Commons
Act II: The Good, The Bad, and the Weirder
In 2012, James Rickards wrote a book that would hit the top of the Amazon bestseller list in Politics & Government. Currency Wars: The Making of the Next Global Crisis walked its audience through a series of Pentagon-conducted financial war games that took place on the heels of the mortgage bond crisis. The game players notably predicted Russia's dumping of U.S. Treasury bonds for gold, which took place a few years later in 2018.
"What does that mean?"
Glad you asked. It means that Russia has recently been preparing for de-dollarization (the collapse of the dollar) by putting itself in what it feels is the most solid position to be in as the world transitions to a new monetary era (whether that's based on traditional gold, on Bitcoin, or something else). It's not like the world will stop needing to do business. There will be a need for immediate exchanges of value or gold standard trust between financial institutions in order that substantial transactions take place. But maybe oligarch-engineered interdependence was simply too complete, worldwide for such actions to make a real difference?
It's a small world after all.
"The global economy is getting nuked?! Will there be a mushroom cloud?"
We'll get to that.
The fourteen or so years following the mortgage bond market collapse played out in many ways similar to European currency crises that bootstrapped two World Wars together. During the 1920s, the Weimar Republic (which consisted mostly of modern-day Germany) leveraged massive industrial power of a worker ant factory population [that really wanted a new Fruedio-Hitlerian daddy] tasked with paying down the debt incurred from fighting and losing WW1. Though debt saddled the nation, German factories were relatively unscathed by war.
Barely keeping up with debt payments through vast exportation, and internally pressured by unsettled ideological factions, President Friedrich Ebert took the German nation off the gold standard. This allowed for currency inflations, which in turn allowed for more competitive exportation of goods. The inflation also served to deflate any debt denominated in the national currency. The result was several years of hyperinflation.
It wasn't just that Weimar Germany inflated its currency, but that other European nations were bound to follow suit. A contagion of currency devaluations around Europe forced the need for further currency devaluation in Germany in order to keep up. Eventually, the British holders of the world reserve currency (sterling) also devalued, and yet another round of currency devaluation hit Europe. Has there ever been a more textbook race to the bottom? It's no wonder the dollar ascended so dominantly after WW2. We might say the dollar was already the de facto reserve currency prior—just waiting for its moment.
Yet, here we are, with the U.S. having printed approximately $10 trillion in a bit over two years since the October, 2019 repo market fiasco. Even the world's most "trusted" banks were too afraid of counterparty risk to lend cash for "as good as cash (risk-free?)" U.S. treasury bond collateral with Nicki Minaj's cousin's friend's swollen-balls-sized interest rates to skim. The dollar banking network is very, very sick despite so many liquidity injections (sound familiar?). Short-term, the only move left to fix it was to further centralize the bridge between the privately held Federal Reserve and the Treasury Department.
Source: Mother Jones
"At least they solved the problem, right?"
Hardly. Something about blank checks encourages the behaviors that brought about the problem to begin with. Apparently people respond to incentives. As a result, the trust network that is the banking system is now being held up Weekend at Bernie's style, with the amount of money devoted to the process tripling in less than two years.
"So, what you're saying is that the West is screwed and China is going to take over?"
No, certainly not. The Evergrande panic was real, and a sign of things to come. They chose to pay off domestic investors, but not foreign investors...while still using the dollar to buoy their banks. That's not a good sign. The China/CCP powerhouse story is the world's largest facade (in all of history), but we'll have to talk more about that another time.
"I'm lost. Is there a happy ending?"
We're all a little lost right now. Hang in there. While there is a lot of bad and a lot of weird, there could very well be a great deal of good (for those who survive the pandemic and police state).
If you aren't yet familiar with the story of Satoshi Nakamoto, this might be the time to start catching up.
What does any of this have to do with Nicki Minaj?
It's all a mystery. I just hope you're enjoying the ride. No, really—find your inner peace and calm because you're going to need to summon your greatest levels of sovereign control as all this (whatever this is) unfolds.
Activating the Economic Immune System
The truckers are the most obvious sign, but the shaky supply chain was doing a fair job of screaming for attention. Some of that pain is real—the Russia-Europe energy negotiation folds the price curve, most definitely. European leadership is guilty of poor planning which includes a botched path of reallocating energy production with too little capital allocated to investments in new sources. And there were always structural weaknesses in the world economy that were going to break to various degrees during any/the next global economic downturn. These are products of overly centralized financial systems, but you're a fringe cult if you say it out loud.
But in addition to those problems, there seems to be some over-the-top nudging going on.
(If there were ever a Stalone flick that needed round-the-clock advertising help…)
This nudging includes the lumber shortage that peaked several months ago, but might have been fully engineered. The "engineered shortage hypothesis" is bolstered by the slapping of tariffs on Canadian lumber—a process that spanned two presidential administrations. Who intentionally stifles entrepreneurs from stepping in to solve supply problems during a scarcity and price spike? Hmmm…
The difference with the truckers is that we're witnessing clear organized resistance. And the stakes could not be higher.
The people at MSNBC in charge of optics don't seem particularly concerned about lowering tensions, or negotiating solutions. Or documenting what's actually going on with something like video.
The attempt by the city of Ottawa to seize the $9 million and climbing in the truckers' GoFundMe account looks pretty adversarial, too.
Are the media and government officials being coaxed into false confidence by their own bosses who are just going to retreat to tropical islands when serious chaos begins? Because truckers are still sort of a prerequisite for local supply chains.
Am I making that clear? People—even work-from-home aspirational elites need things like food, identity-signaling fashion wear, and replacement keyboards. And the people whose jobs are to ferry those goods to the Matrix they live in are being vilified by the narwriters.
If there isn't an orchestrated endgame to this, will it be the pampered Mandarins who wind up most hurt? Or do they have some special battle position from which to subdue the angry masses who no longer want to put up with their narcissistic bullshit?
If firm evidence ever emerges of orchestrated bifurcation of vaccine lots in a way that favors the Mandarin class, shit will really hit the engine fan.
Autoimmunity? Like Economic…AIDS?
Were all this just about the truckers in Canada (and in a fair number of other nations, now), my brain and heart could be happy together. Because I love the will of the big-hearted rig drivers. However, I also worry about whether they could be manipulated. Because that's happened before.
And it doesn't take long at all to look around the world and see direct economic consequences for absurd policies that should have been entirely predictable from inside the board room.
So, much as we might love the truckers (give them hugs, cheers, meals, gas, and other forms of love), we need to also keep an eye on the economic ball game, because there is a thinly disguised game of N-dimensional chess being simultaneously played out. And I want to reiterate that I'm not claiming that I see where this is going. But there are too many signs of controlled shenanigans—like plainly unfunny comedy routines that seem laced with looping laugh tracks that do little to temper the appearance that somebody wants to incite conflict.
It’s an interesting question as to how much I’d require to be paid to deliver that.
Aziz Ansari Doesn't Understand Big Balls
This ride isn't ending, even if it's going off the rails. That puts me in the awkward position of forcing an artificial segue into a data-drive conclusion. That is an obligatory reminder that Nicki was almost certainly not wrong, whether or not the case of swollen testicals she referred to was ever brought to the attention of local medical authorities.
Don't worry. We'll talk again soon.
Mathew, your substack was the first substack that I ever read, (heard about it on Darkhorse) many months ago, and I've been hooked since. I read many substacks, and your production of content is one of the slowest, but your content is the best. I find myself reading and rereading your articles. Plus your humor is top-notch.
Thanks for all your hard work.
"If there isn't an orchestrated endgame to this, will it be the pampered Mandarins who wind up most hurt?"
Well, starting something is easy. Starting something and nudging it in a general direction is doable. Starting something and directly controlling and micromanaging it to a specific well-defined goal is possible but resource intensive and difficult.
And doing all the above with close to 100% control is impossible - it would be like trying to control where every bullet, dronestrike or missile hits during war.
So the mandarins as you call them are (knowingly or unknowingly) playing reverse musical chairs: the first one to get up and run for the exit might make before the rest, but they also run the greatest risk of being apprehended and brought low on the way, while those who wait too long to run while be set upon by eachother and those they've been leeching off.
All animals who flock, pack, herd, or school act that way: all of them waiting for the rest to move first, and when that suddenly happens the whole shebang moves together as one. Investors, realtors, HR-managers, lawyers, and all the other white collar semi-parasitical work-from-home- Karen's of all genders knows it. And the academical parasitoids are even worse.
As to a financial system: ask king Ethelred how money stands up to power.