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Just before the meeting I told my Patrons I thought at some point the Fed would have to come in and defend the U.S. dollar. Biden’s consistent trashing the dollar for
Davos simply couldn’t stand forever.
I’ve written in the past about what Davos’ Great Reset plans are for the commercial banks, to scapegoat them for the next crisis and throw them to the angry Millennials they’ve taught to hate all things not-Marxist and be pilloried on the altar of egalitarian envy. And honestly, it’s not like these fucking people deserve anything less for what they’ve done to the world.
But at the same time, they still have allies and cards to play. And that means the Fed may align with
Davos on some issues but not all of them. And I think it’s clear to everyone now that this is the plan and that plan is not workable.
The Fed is now ready, I think, to go to war with Davos over the future of money and they aren’t ready to hand over the keys to the candy store to a bunch of European commies, at least while also cutting Wall St. out completely of the New World Order.
Part III of the podcast series goes over the Fed’s moves and how it ties into what comes next.
The plan is pretty obvious at this point: hand over the keys to capital formation to the central banks and destroy all risk assessment. Commercial banks aren’t needed. Only socially acceptable projects going forward will get funded. This is what Christine Lagarde wants with her new
all-European Green Stock Exchange she introduced at Ankara last week.
But what’s clear to me now is that
Davos went for the boob too fast on Prom Night at the Eschaton. It’s too much, too soon and the acceleration is exposing its flanks. Why would China and the U.S. go to war over COVID-19 and trade issues when they are being manipulated into it by a bunch of feckless Eurocrats with delusions of adequacy.
Why not turn on them first, at a minimum, wipe them out with a wave of your hand, i.e. 5 basis point rise in RRP, and remind everyone where the real power in the markets lies.
It’s hard to ignore what’s happened during the week of June 16th both geopolitically and monetarily. There are no coincidences here. If Powell hadn’t blown up the markets that week then I would be writing a different take on the Putin/Biden summit today.
But he did so I am.
So many people mischaracterize the Fed’s policies. They miss the global significance of what they do by hyper-focusing on bad and misleading U.S. economic data. But the dollar is the global reserve currency, a point Martin Armstrong makes every single day, and that means Fed policy is made in the context of global capital shifts and politics.
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The bottom line is this: I maintain that Powell isn’t the same kind of globalist other Fed chairs have been, like Yellen and Bernanke. His private equity background marks him with a different mindset and set of priorities than his predecessors.
That means he may be more willing to buck Davos when the time is right.
That understanding along with
Davos’ needle-scratch mistakes has a lot of powerful people questioning the plan. It can easily explain why the cracks are beginning to widen as to who should actually be in charge after this is all done.
The real war now isn’t between the Empire and Zone B. Or the Commies vs. the Conservatives.
It’s Davos against itself and we are now, unfortunately, caught in the middle between these factions.
All hierarchies built on force are meta-stable. Up until recently Davos maintained its control because it competently managed all of the players, moving pieces where they needed them. Now, they’ve made fatal errors — COVID, Trump, Brexit, NS2, Russia’s intransigence, the JCPOA, Syria, Ukraine, — and from where I sit it looks like the various factions are going all
Knives Out on each other, quickly.
And as Daniel Craig said so eloquently in that movie, “I do suspect… foul play.”
