An Alchemist Explains to Joe Sixpack: ‘COVID-19 Alters America’s Hidden ‘War’ Forever’ –
“The President has taken full control of the (nuclear) button that controls the global supply of money, in dollars. He has control of the Treasury which has completed its take-over and merger with the Fed. How things work is that Congress authorizes $450 billion in a CARES bailout. The Treasury gives it to the Fed as its stake – and then instructs the Fed to multiply that stake, by a factor of ten (through printing fresh money). The $450 billion becomes $450 trillion and is handed over to a friendly Hedge Fund – Blackrock – to distribute. And the details of the distribution are all tied up in confidentiality clauses and opacity. Trump becomes a secular Croesus: he can ‘print’ as much as he wishes. Nothing to stop him. Will be able to contain himself?
“So, the question then, Joe, is – is it really feasible for the market to soar when maybe half the economy is semi-furloughed, and inherent value is plunging?
“As I mentioned earlier, money ‘printing’ does not always make dollars available. Liquidity is being provided to the U.S. banks: yes, but the problem is not so much liquidity; but one of potential default – especially on the $13 trillion owed overseas. So there is a massive scramble by those overseas debtors for dollars, with which to pay interest, and capital repayments, as they become due – and that means the dollar will soar (for now). It is the dollar strength that brings to world to its nadir (just like the 1930s). It is the dollar system that is the really big problem. This virus will either prick the dollar bubble and collapse it in an inflationary spiral downwards – or, the CBs will be forced to find some other solution (though God knows what!)
Joe sighs again.
“I’m afraid Joe, that I may not have been much help to you – sorry”.
Welcome to 1984, where lies are truth.