by Maribel Tuff

Excerpt

Bringing together the US emergency bank lending crisis and the now massive Covid response, I’ve concluded that one of the main reasons it is happening, apart from the corporate looting, is because of a historic event, the USA’s economic collapse and the dollar’s demise, which started just weeks before this Covid operation kicked off, and has been put on hold by a world wide manufactured economic ‘freeze’.

THE END OF ‘EXTEND AND PRETEND’

A few months before Covid appeared, the Fed were busy pouring literally trillions of dollars into the US banks, to prevent inter-lending bank-runs which were starting to develop. These were the same tectonic fissures that developed prior to the 2008 crisis, where the banks became so distrustful of each other’s solvency, that they massively increased interest rates to each other to factor in the risk. If unsuppressed the lending rates would continue to rise, laying a path to bank failures and a contagion which would eventually derail the economy and undermine the dollar itself.

In September 2019 the Fed intervened in the repo. markets for four consecutive days, pumping $75 billion per day into the banks, as the inter-banking interest rate – the repo rate – peaked at a terrifying 10% [1]. If this level were allowed to contaminate regular highstreet lending, it would cause widespread debt defaults & insolvencies.

The dangers are far greater today because, unlike in 2008, Quantitive Easing (QE) has pushed the Fed to the limits of its credibility, and are forcing them into causing some serious currency debasement. If they continue with the forms of QE they are shackled to, then dollar debasement becomes a certainty in a US economy that is far more fragile & indebted generally and less able to cope.

The Fed must have known for a few years that QE was not returning the economy to economic normality, and that they were still trapped in the solvency crisis of 2008. Knowing this, the Fed were prepared for the latest crisis. They had made it possible to inject hundreds of billions of dollars into the banking system discreetly, unlike in 2008, without any additional Congressional fanfare, via the Financial Stability Oversight Council, formed in 2010.

They had given themselves almost unlimited funds and the resources of the entire government if necessary, to reassure the banks that collapse was impossible. This ‘rescue operation’ was being played out, relatively unreported except in the financial press, only weeks prior to the Covid flu appearing on the world stage. Issuing…

….. cumulative repo loans totalling more than $9 trillion to the trading houses on Wall Street that the Fed had been making from September 17 of 2019 – months before the onset of COVID-19 anywhere in the world…[2]

Unlike in 2008, this second use or continued use of mass Fed stimulus is not a new untested idea and, by using it again or continuing to use it more intensely to stabilise the banks, it would eventually lead the markets to conclude that we are locked in a never ending cycle of stimulus, which will inevitably end in hyperinflation and dollar collapse.

That is an uncontroversial economic fact, and will be the conclusion of the Fed’s current policy. In that context, an external ‘event’ could be critical in taking the spotlight off US finance and its woes.

The Fed will not want to exit repo operations until they are absolutely certain the market can stand on its own two feet. [3], [4]

United States Overnight Repo Rate was at 0.11 on Friday January 15

But, as they well know given their experience over the past 10 years, the markets will never be able to stand on their own feet in the current economic model. Now not only companies are being kept afloat by low interests rates, the US itself is dependent and kept solvent by low interest rates.

The fed has injected or made available over 9 trillion dollars to the banks in only 6 months leading up to March 2020, that is over 40% of the USA’s GDP, prior to Covid and represents nearly a 40% increase in the USA’s national debt!

(Along with the ‘flight to (dollar) safety’, Covid has offered the opportunity to freeze the USA’s banking collapse with massive injections of cash. $9 trillions was available to US banks up until March 2020, but in addition to this the Fed produced $5 trillion in economic stimulus to the wider economy and a further 5 trillions recently.)

So it is becoming very obvious that we are at the end of this particular monetary road, the ‘extend and pretend’ policy is finished and there is nothing in the economic tool box that can stall the inevitable. Only an external ‘divine’ intervention could, even temporarily delay the dollar’s collapse. As an aside, I should add, although they may be affected later, this is not happening in European or Asian banks, only in US banks.

THE DIVERSION

In my opinion, the US security agencies picked a scenario off the shelf, something they have been justifiably rehearsing for years, the response to a deadly virus, which would produce the required financial shutdown, suppress bank activity, and create a world crisis big enough to eclipse the US economic crisis and produce a ‘flight to safety’ into the dollar, facilitating an economic induced coma, allowing time, a breathing space and justifying massive emergency QE injections into the US and world economy.

It could be sold as a period during which a restructuring of the world banking system could take place and perhaps reschedule debt as well as redefine the mechanisms of a new reserve currency.

This is what I think ‘The Great Reset’ really is about. It is being painted as something intricate and nefarious on every level, but it’s possibly more utilitarian than that, a necessary dialog, where the subject of that dialog is sealed from the public, justified by protecting our worried and panicky ears, and which concerns almost all western world leaders.

I’m sure a major false flag terror attack would have been discussed as an alternative to Covid, but the US is in no fit position economically to respond militarily, and without a military response to a terror attack the US would fear looking weak. Although Wars have been thought to resolve many an economic crisis, it is just as likely, in this instance, that a proxy war with Russia or a direct war with Iran would precipitate a dollar collapse, rather than create growth and a flight to ‘safety’. China would no doubt gleefully humiliate the US during such a conflict. So I speculate that major wars, as an economic solution, are off the table, at least until this crisis is resolved.

Creating a virus out of thin air is a cruel and vicious deceit, but the Fed will no doubt have claimed to its allies that it is far less painful than the total economic implosion we will face in the brewing economic collapse, where financial contagion from the US would cause most western financial institutions to become insolvent, debt would remain unpaid, trade would cease, asset values would crumble, bank machines stop, riots start, martial law be declared, and in many ill-prepared, import-dependent countries like the UK, rationing and eventually hunger would begin.

This is the threat the fed would have made to their allies, as we know for a fact they did in 2008, when asking for a united world central bank stimulus, making it appear vital to world economic survival.

They would have claimed that this time around the economic dangers are of such a magnitude that they even persuaded their foes, Russia and China, to partake in the hoax, because they are also reliant on continued banking & economic stability, and would not be willing to risk political instability at home caused by a second world economic depression.

By creating this suspension of an economic collapse, the US has cleverly turned the dominance of the dollar into a matter of international survival, effectively holding the world to ransom and blocking the baton of world reserve currency being dually transferred over to the next economic ascendant, China, and where the US has effectively engineered themselves a seat amongst the judges at their own bankruptcy hearing.

Believing this to be the case, I am less confused as to why most of the USA’s allies were so helpful and so consistent in making this Covid operation happen, and I have concluded it is their belief in the integrated nature of the financial & currency markets and the threat of economic collapse posited, as in 2008 by the Fed, that is causing their complicity. [. . .]