Winter and beyond – Part II: The Pivot to Financial Armageddon
By Rusere Shoniwa
You can find more of Rusere’s work at https://plagueonbothhouses.com
This two-part piece stitches together commentary on different facets of the totalitarian Great Reset agenda to illustrate how a worst-case scenario might unfold this winter and beyond. Although in some respects this piece is UK specific, most of the cabal’s strategies apply globally, and any differences can be put down to cultural specificity and local politics. Part I dealt with the implications of the puppet switch taking place in the UK; whether covid as a tool of oppression is now a spent force, and; how virus mania and the pandemic industry might evolve.
In part II, I’ll look at the economics underpinning everything. Economics is not the only reason for the current diabolical situation, but it’s the main one, and it will be the predominant tool of oppression, as indeed it always has been. I’ll then synthesise part I and the economics of part II to shine a light into the darkened recesses of the minds of those who have perpetrated the atrocities so far. We know the endgame: it’s total control. Unless we know how they plan to get there and how bumpy the ride will be, we might not be able to resist when events unfold.
The 2008 Global Financial Crisis (GFC) heralded the destruction of the global financial system. The entire decade that followed was about keeping it on life support while the world’s real policy makers at the Bank of International Settlements formulated a plan to reset it. They’ve had at least 10 years to formulate a reset that not only ensures financial institutions and global corporates retain and consolidate power, but also that the serfs are more tightly controlled than ever, giving global oligarchs even more freedom to do pretty much anything they want with impunity.
It’s no coincidence that here in the UK, the fabulously minted ex-banker and hedge fund partner Rishi Sunak is in the final pick for the leader of the Conservative Party and the premiership. Who better to market a financial snake-oil cure than a financial snake-oil salesman? He’s probably the WEF’s first pick but Truss, currently the front-runner, will do just as well with a bit of extra coaching. The loser will more than likely have a cabinet post anyway so they’ll be working together to keep the Good Ship Reset firmly afloat.
The new leader’s job will be to get his or her prefects in cabinet and Westminster to line up behind the narrative of how ‘the pandemic’ and evil Dr StrangePutin have put us in dire straits. The good school pupils (aka the British public) will be required to continue footing the bill for the controlled demolition of the economy that began with covid lockdowns, and, crucially, we will be presented with a ‘solution’ that entails surrendering our autonomy as self-governing human beings.
The debt balloon is about to get popped
Since the 2008 GFC, the US Fed, Bank of Japan, ECB and Bank of England have injected a combined $25 trillion into the banking system via “quantitative easing” purchase of bonds, as well as buying back the worthless assets that were created by the banksters in the lead-up to the GFC. Sowing this empty money is now reaping a whirlwind of inflation.
A significant chunk of this money put into the banking system was then lent to major corporates, which used the money not to finance the real economy – there isn’t one, because the West offshored its real economy a long time ago – but to inflate the value of their company stock. How does this happen and why is it done? When shares are bought back from shareholders, the total number of shares in the market is reduced. This raises the relative ownership stake of each investor, which in turn increases the market value of the shares that remain in their portfolio.
It effectively consolidates the ownership stake of each shareholder into a smaller bundle of shares that, barring other market factors, retains the total value that was held before the buyback. It’s a win-win – they effectively get a cash ‘dividend’ pay-out from the buyback while retaining the total value of their stock in the remaining shares still held. It gets even more win-win because distributing cash to shareholders in this way is often more tax effective than through a straightforward dividend.
GFC II actually ignited in September 2019 when the credit markets began seizing up again with junk debt. Between September 2019 and March 2020, the Fed injected more than $9 trillion into the banking system, equivalent to more than 40% of US GDP. Essentially this was another bailout, only much bigger than the first one but silent and virtually unreported.
All told, we’re now sitting on a $303 trillion balloon of post-2008 debt, according to William Engdahl of Global Research, or $305 trillion according to the Institute of International Finance. Global debt is approximately 3.5 times greater than global GDP. There’s only so much air you can blow into a balloon before it bursts, and the question now is not if but when it will burst. Engdahl’s theory of how this balloon might soon pop is worth sharing because it explains the interplay between the bond market, inflation and central bank rate hikes. Crucially, he maintains that central bank policies are deliberately intended to cause a disorderly debt implosion.
This makes sense if you believe, as I do, that the additional debt expansion generated by covid lockdowns was a primary monetary objective of the lockdowns and not a second order action taken reluctantly by governments out of concern for people’s welfare. If they had been truly concerned about people’s welfare, they would have simply protected the small minority of people at risk instead of ripping apart the entire economic and social fabric with brutal lockdowns. Had they kept calm and carried on, it’s obvious that covid wouldn’t have registered on most people’s radar. So yes, one objective of lockdowns was to pile more debt on top of the funny money they were forced to print in the lead-up to lockdowns to prevent a seize-up of markets that they were not yet prepared for in 2019.
The central bank rate hikes currently underway purport to target inflation but will not have any effect on inflation given the root cause of it – the debt bubble caused by central bank money-printing, euphemistically called ‘quantitative easing’. The intended effect of rate hikes is to seriously deflate the bond market, which is the heart of the financial system.
The global value of the government, corporate and agency bond market is, according to Engdahl, in the region of $250 trillion. The value of a bond instrument is determined quite differently to, say, stock market shares. Because they have a fixed face value and interest payments, their market price at any given point is determined by discounting the expected future cash flows from the bond back to a present value. This discounted value is hugely influenced by inflation and current interest rates. Counterintuitively, the bond market loses value as inflation and interest rates rise. That’s because inflation combined with a fixed bond interest rate that is declining relative to the market rate of interest results in a lower discounted valuation of the bond.
Here’s the clincher – to the extent that banks hold bonds, as bond prices fall, the value of bank capital falls and the nearer we get to another banking collapse. When that happens, the old go-to formula of zero interest rates and continual money printing will be over. The new solution put forward will be a Central Bank Digital Currency (CBDC) system in which all money is centrally issued and controlled. And of course, the CBDC will control you. A banking collapse is a false pretext for introducing CBDCs, but this could be a collapse like no other, and it’s possible that there will be no limit to what the public will agree to as a ‘solution’ when confronted with such a complex and far-reaching financial disaster. Most people have no idea that mouse-click money printing has continued unabated since 2009, and that it is the primary reason for the impending implosion. Quantitative easing, aka money printing, will not even be mentioned in the mainstream press as the house of cards collapses.
To be sure, the bond market isn’t the only potential source of collapse. Central bank monetary tightening is putting pressure on the stock and housing markets too. It’s likely to be some combination of all three, but there’s no certainty as to which domino will fall first. There are two key things to remember about the coming recession: first, it is driven by a debt crisis and, second, the tool being used to address it – rate hikes – is debt unfriendly. This combination of events means the debt reckoning is probably around the corner. The policies will expose worthless debt that was not issued to generate productivity and, let’s face it, that is a key characteristic of Western debt exemplified by corporates borrowing from banks in order to pay out dividends in the form of share buy-backs. The central banks themselves can’t predict precisely how the massive deleveraging will pan out, but they know it’s going to be ugly; and they need that ugliness to move the reset agenda forward.
A tale of two inflations
There is another source of inflation, and that of course is energy, fuel and food. This is not caused by a fundamental supply source problem. Its cause is a supply chain disruption and a manufactured one at that. A spanner has been thrown into the supply chain. The inflation is real in the sense that the prices of these commodities are going through the roof. But it is manufactured in the sense that its trumpeted cause – the Ukraine crisis – was unnecessarily driven by NATO allies who had absolutely no business using Ukrainians as cannon fodder in a proxy war with Russia aimed at, among other things, bringing about regime change in Russia.
In the same way that Russia was obliged to back down from using Cuba as a nuclear missile staging post in 1962, NATO and the US had no business expanding NATO right up to Russia’s border by pushing for Ukraine to become a member of NATO. When Russia responded in similar bellicose fashion as the US did when the shoe was on the other foot in 1962, the EU churlishly cut off its nose to spite its face by boycotting Russian gas, on which it relies heavily. Rather than facilitate the peaceful negotiation that all sides knew would have rendered the current conflict a hypothetical debate in a history lesson, Germany’s politicians chose instead to invite their citizens to burn wood this winter, possibly including furniture, to stay warm.
The Ukrainian supply chain inflation must be seen for what it is – decoy inflation. It’s a smokescreen to hide the elephantine inflation in the room caused by the biggest money-printing spree in modern history. It gives Western governments cover for the pain that ordinary people will be made to feel and the rationing that will likely follow. When the debt ponzi scheme collapses, the public will be sold a host of fairy tales, none of which will make any mention of the small matter of $303 trillion of central bank funny money, 3.5 times greater than global GDP. Putin, Ukraine and whatever other bogeyman can be mustered on the day will be the spoonful of sugar to make the CBDCs go down.
The job of the UK’s incoming premier in September will be to steer the coming financial Armageddon towards digital and financial enslavement. The well-meaning but naïve Martin Lewis, the money saving expert, breathlessly issued his warning that “we are sitting on a financial timebomb that’s due to explode in September”. Energy bills are expected to rise 65% in October on the back of a 54% rise that has already happened in April. Energy bills alone will consume a third of the income of those on the new state pension and more than a third of the income from the old state pension. The Government support programmes offered in May to offset the previous increases will do nothing to ease this impending assault in September. These rises are unaffordable for all but the most affluent.
I say Lewis is ‘naïve’ for two reasons. Firstly, because he believes that the incoming Prime Minister will be trying to ameliorate the impact of this explosion on poor people when in fact they will be operating in accordance with a key sociopathic principle governing the Great Reset – never let a good crisis go to waste. Under this maxim, the pain of ordinary people is not just a by-product of the policies; it is one of the most important ingredients in the Great Reset formula.
Secondly, Lewis makes no mention of the $303 trillion post-2008 ponzi scheme debt that is, as the nice people in the banking industry would say, about to be “deleveraged”. Inflation, interest rate hikes and therefore the whole cost of living crisis, are not simply unfortunate by-products of central bank policies – they are just some of the wrecking balls being used to demolish the old system.. People are simply the eggs to be broken in the making of their new omelette.
Another important direct consequence of rate hikes is making home loans and mortgages unaffordable, which in turn may see a collapse of the housing market and repossessions. In 2021, banks were already making plans to become huge landlords: all part of the plan for us to own nothing and be happy. It’s diabolically ingenious. First make money from creating junk debt to fuel the housing market and then, when it all comes crashing down, seize the houses and rent them back. Credit card debt and consumer loans will take a similar beating as consumers default.
The big picture
The looming financial crisis combined with the impact so far from lockdowns, virus mania and the broken economy could dovetail into this worst-case scenario for totalitarian enslavement, which includes some lucid points made recently by Mike Yeadon:
- A controlled demolition of the broken financial system is underway. It began with covid lockdowns whose objectives were to: expand debt even further to accelerate the collapse; accelerate reliance on digital technology and introduce more control and surveillance applications like health passes; decimate independent small and medium-sized businesses to increase the reliance of individuals on the state for a Universal Basic Income and to transfer business from independents to corporates; transfer taxpayer wealth to Big Tech, Big Pharma and other large corporate sectors that benefitted from lockdowns, and; condition the populace to accept maximum control by the state through the state-of-emergency governance paradigm.
- Supply chain disruptions that began with lockdowns have been accelerated with the manufactured Ukraine/Russia crisis. The resultant crippling food and gas price increases will be used as strawmen to deflect attention from the deflation of the debt balloon created by bankers and central banks.
- The supply chain disruptions are creating food and energy shortages that may spark huge unrest. This unrest will be met with further authoritarian control measures like martial law, or some variant of it, and rationing using QR code digital ID systems. This is already happening in Sri Lanka. The digital ID system is effectively already in place with the various health passes that have been issued around the world and, for rationing purposes, will be extended to those who have so far resisted coerced vaccination and the accompanying digital ID.
- As people rise in anger, they may succeed in deposing paid puppets of their invisible paymasters who determine global policy. But if they are not ready to reject the control systems that will be put forward as ‘solutions’, the global cabal will welcome these uprisings as vehicles to advance their authoritarian agenda. Conflict is in fact the dialectic through which the changes they seek are accelerated. Nearly all revolutions are followed by counterrevolutions.
- Once digital ID applications are widespread, they can be used as levers by the biomedical security state to make access to food and fuel conditional on taking up all the latest ‘vaccinations’. The obsession with compulsory ‘vaccination’ is emblematic of the 21st century totalitarianism. There must be no room for manoeuvre, and control over you is not total until resistance to bodily autonomy has been broken down, until the human body can be ‘hacked’ without your permission and without you understanding what is really going on once they’re under your skin.
- As the debt bubble is rapidly deflated, there is likely to be some sort of banking crisis to signal another monetary system collapse. Recall the predicted bond market turmoil and its potential effect on banks’ capital. This time, the rescue mechanism served up will be CBDCs – a false pretext since the real problem is debt with no underlying assets with value to support it.
- The endgame is mandatory digital ID combined with CBDCs. The two interact with each other like a socket and plug. The mandatory digital ID creates an individual record of everything you do and who you are. The CBDC platform will then punish or reward you based on the digital ID information fed to the CBDC platform about what you do and who you are.
- Because your digital footprint will be linked to your finances, permission to transact on your CBDC account will be conditional on ‘good’ behaviour in all spheres of your digital ID.
- Access to your funds will be limited if: you’ve been downloading ‘misinformation’ like this article; you’ve finished your quota of 90 grams of meat per month (why aren’t you enjoying the exotic tarantulas Sainsbury’s has imported from Brazil?); you’re not up to date with your covid, monkeypox, smallpox, HIV, and flatulence boosters. The possibilities for behavioural management are endless. You won’t need to be ‘nudged’ anymore. You simply won’t eat if you don’t get vaccinated or if you dare to entertain theories about climate change that contradict the orthodoxy issued by Big Brother.
- That CBDC platform will be administered on a supranational centralised platform run by a tech giant like Amazon cloud services. In time it will come to serve as a complete and centralised record of your entire financial and digital footprint. You will be a node in the matrix. A data point in a data set. A thing in the internet of things. You will exist at the mercy of a ruthless machine governed by AI designed to recognise and crush dissent.
- CBDC controls can also be geographically determined. Trying to have a good time 10 miles out of your carbon permitted radius? Sorry but combatting global warming will require the serfs to be on a tight leash.
- The concept of an enforced carbon rationing and personal carbon trading system linked to your bank account has been around since at least 2006. Under a personal carbon trading system, it is now proposed that less well-off people who need money to, say, to pay their rent to the landlord bank that repossessed their home could sell carbon credits to wealthier people to use for travel abroad on holiday. That’s the global cabal’s idea of an ‘equitable’ world – poor people scraping up enough money for subsistence by selling ‘carbon emission rights’ to wealthy people, guaranteeing that the latter can jet off every two months for their Bali break without stressing about having to share aircraft cabin space with the hoi polloi.
- Extra mileage will be gained from energy cost inflation by using it as an incentive to guilt people into eating bugs, wearing an extra jumper in winter instead of turning up the heating and gifting their cars to scrap metal dealers, all to appease the carbon emission gods.
It doesn’t have to be this way
This is a worst-case scenario, and things never pan out exactly the way we or our adversaries think they will. But this is what the global oligarchy wants. There have been more than enough statements from WEF mouthpieces and their army of dead-eyed puppets in government to confirm it. You wouldn’t have read this far if you didn’t think there was half a chance this scenario could be plausible. This means that, unlike many, you now have a choice ahead of you.
It’s vital to understand that they are determined to follow through on their planned agenda. This is because serious crimes have been committed, and to halt the agenda now would invite prosecution. It is unquestionably criminal for governments to shut down societies and destroy livelihoods, education and access to health without any scientific basis or evidence and with no cost-benefit analysis to demonstrate that a net benefit to society would accrue. Even before taking into account the trail of death and injury covid ‘vaccines’ have left in their wake, it is criminal in and of itself to coerce people into taking unwanted medical treatments. And yet it was done. Repeatedly. Across the entire planet. The only reason people are refusing to acknowledge these and other crimes is because their scale is so huge that it beggars belief.
For those who have planned these crimes or willingly complied with absurdly degenerate policies, there is no going back. For their own survival, they are operating in coup d’état mode: the only way to avoid prosecution for their crimes is to successfully normalise them and institute a sick society in which people come to accept their loss of autonomy and freedom as a normal state of affairs driven by pandemic hysteria, climate change hysteria, Russia/Ukraine hysteria, Cold War II hysteria or whatever nightmares are conjured to justify despotism under ceaseless states of emergency. While a coup d’état is in progress, it is illegal. If the coup plotters succeed, they become the de facto rulers and are recognised as the new government. So, they will not blink until they are defeated, and it is not politicians or billionaires like Musk who are going to defeat them either. It is ordinary people who need to say no.
If you take pride in being a self-respecting, autonomous and sovereign human being, then just say No to CBDCs and digital IDs that force you to sacrifice your freedom of thought and action. Freedom may well come with responsibility, but that responsibility does not include a circular and self-defeating right or responsibility to curtail the freedom of others. Say No to high-tech feudalism being planned by technocratic governments taking orders from the corporate oligarchy of billionaires. Say No with the confidence that any alternative we choose for ourselves will be infinitely better than that chosen for us by billionaires and their cronies like Sunak. Say No in the confidence that those who caused the unfolding economic chaos cannot possibly be trusted to offer a good faith solution to the mess they have created. Say No in the confidence that doing so will result in the bill for this mess being picked up by those who caused it – the banking, tech, pharma, energy and media oligarchy.
They will tell you that if we don’t do as we’re told, the whole ship will sink. Don’t fall for it. We were successfully held to ransom in 2008 and they’ll try it on again. When they’ve paid the price for their arrogance and stupidity, they will have lost their power to rule over the world with fear, propaganda, lies and psychological manipulation. This is our time not to blink.